Early premarket gappers
- Gapping up:
- EYPT +42.8%, MESO +14.8%, DLTR +7%, LXRX +5.9%, JSPR +5.2%, ETON +4.6%, ATLC +4.6%, IOVA +4.4%, OTLK +4.4%, ULCC +4.3%, CLOV +3.1%, BA +2.6%, PNM +1.9%, NFGC +1.8%, NXTC +1.6%, RDS.A +1.6%, M +1.6%, CPNG +1.5%, TWKS +1.5%, JOBY +1.3%, REGN +0.8%, FSR +0.7%
- Gapping down:
- PRLD -5.9%, LIVN -3.8%, TAL -3.4%, TSLA -2.2%, NEXT -1.3%, EDU -0.9%, AADI -0.9%, ARRY -0.7%, OPEN -0.5%
Billionaires backing Rolls-Royce reactors bet on atomic resurgence
Decision to invest in nuclear power is part of a broader strategy from France’s Perrodo family
A billionaire French oil family’s decision to back Rolls-Royce’s plans for a fleet of mini nuclear power plants is part of a set of investments predicated on a renaissance for atomic power, according to their investment adviser.
Sean Benson, director of BNF Capital, the London-based investment office owned by members of the Perrodo family, said that recent investments have focused on uranium as “we feel the energy transition is not possible without a heavy reliance on nuclear power, hence also the Rolls-Royce investment”.
“We think nuclear is required as part of the net zero carbon targets that everyone wants to meet,” added Benson, who has been advising the family on its multibillion-dollar office portfolio for several years.
The Perrodo family, whose estimated £3.9bn fortune was built on investments in oil and gas, emerged last week as one of two private backers of the UK aero-engine group’s plans to build small modular reactors. The funding helped to unlock backing from the British government for the initiative, part of a new push into nuclear power designed to help the country meet its net zero carbon targets.
The family’s main asset, oil and gas group Perenco, was founded by the late Hubert Perrodo, an entrepreneur descended from Breton fishermen who also amassed several wine estates in Bordeaux. Perenco’s operations today span projects in West Africa, Latin America and Asia. The group, which is also a significant producer in the UK’s North Sea, is run separately by the family.
Benson said the decision to back the Rolls-Royce initiative was not driven by a move to diversify from fossil fuels. BNF Capital two years ago first approached the UK group, whose reactors power the Royal Navy’s nuclear submarine fleet. Benson said they considered investing in other SMR technologies but Rolls-Royce’s design was particularly attractive as it uses existing technology in the form of pressurised water reactors seen in large power stations. A separate vehicle, BNF Resources, controls the investment in RR SMR.
“It is putting [existing technology] together differently and more efficiently . . . We are looking at it as an investment that stands up in its own right. It has the ESG angle,” said Benson.
Other investments include lithium and nickel, commodities required in the manufacture of electric vehicles. Benson said not enough capital was being put into the “mining of these enabling commodities to keep up with demand” and that the expectation was that prices would continue to rise in order to incentivise production.
BNF Capital has seeded two fund vehicles active in what Benson calls “energy transition commodities”, the Tees River Uranium Fund and Tees River Critical Resources Fund, both managed by Benson. The uranium fund has about $280m assets under management and is up around 200 per cent for the year to date.
Separately, Benson said he was looking at possible investments in carbon capture and technology which he said could “help in the medium term before nuclear can seriously get going”.
- Airbus (AIR TH) +2.8%
- Emirates Weighs Fleet ‘Reset’; Demand Is Back: Airshow Update
- Rio Tinto (RIO1 TH) +2.6%
- Watch European Miners as Iron Ore Declines, Aluminum Sinks
- Vodafone (VODI TH) +2.6%
- Imperial Brands (ITB TH) +2.1%
- Swedish Match (SWMC TH) +2.1%
- Umicore (NVJP TH) +1.6%
- BAT (BMT TH) +1.5%
- Rolls-Royce (RRU TH) +1.3%
- Wide-Body Jet Sales Activity Picking Up, Rolls-Royce Says
- Epiroc (3AD1 TH) +1.3%
- Burberry (BB2 TH) +1.3%
- SAP (SAP TH) -0.8%
- Fluidra (4F1 TH) -0.9%
- Rheinmetall (RHM TH) -0.9%
- CD Projekt (7CD TH) -1.1%
- Eni (ENI TH) -1.1%
- Italy’s Eni Says Oil Could Reach $100 a Barrel: Adipec Update
- Evotec SE (EVT TH) -1.1%
- CTS Eventim (EVD TH) -1.4%
- Ferrari (2FE TH) -1.4%
- Philips (PHI1 TH) -2.2%
- Royal Philips Working With U.S. FDA After Mass Ventilator Recall
- Compass (XGR2 TH) -2.7%
- Stock down 3% over past two trading days
DAX:
- Airbus (AIR TH) +3%
- Emirates Weighs Fleet ‘Reset’; Demand Is Back: Airshow Update
MDAX:
- Talanx (TLX TH) +2.1%
- Talanx Sees FY Net Income High End Of EU900M to EU950M
- Vantage Towers (VTWR TH) +2.1%
- Vantage Towers Sees FY Revenue Ex Pass Through EU995M to EU1.01B
- Lufthansa (LHA TH) +0.9%
- Evotec SE (EVT TH) -0.9%
- CTS Eventim (EVD TH) -1.4%
SDAX:
- Global Fashion Group (GFG TH) +3.2%
- PVA TePla (TPE TH) +2.1%
- Encavis (ECV TH) +1.6%
- Encavis 9M Revenue EU259.1M Vs. EU234.3M Y/y
- SGL (SGL TH) +1.5%
- MorphoSys (MOR TH) +1.4%
- Eckert & Ziegler (EUZ TH) -1.1%
- Secunet Security Networks (YSN TH) -16%
- Secunet Sees Earnings Declining in 2022
Stocks were mixed Monday amid data showing steadying economic growth in China as well as ongoing challenges in the nation’s troubled property sector. Treasuries were steady and the dollar slipped.
Shares fluctuated in Hong Kong and dipped in China as traders weighed stronger-than-expected retail sales and industrial output, central bank liquidity support and a drop in home prices that hurt real-estate shares. Japanese equities gained, with stimulus plans softening the blow of an economic contraction. European, S&P 500 and Nasdaq 100 futures moved in tight ranges.
Beijing’s crackdown on real-estate leverage is among the headwinds for the world’s second-largest economy. There are now expectations that officials may try to help ailing developers. Chinese junk dollar bonds extended a rebound.
Sovereign bond markets were comparatively calm following a period of pronounced swings due to uncertainty about whether high inflation will be sticky and the likely speed of interest-rate hikes. Bond-market expectations for inflation over the coming decade are near the highest since 2006.
Fed Bank of Minneapolis President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation even as it causes pain, because it is likely to prove temporary. Treasury Secretary Janet Yellen said controlling the Covid-19 virus in the U.S. is the key to easing price pressures.
Elsewhere, President Joe Biden will meet virtually with Chinese President Xi Jinping on Monday. Tensions between the two countries have been building over issues including Taiwan and restrictions on sales of U.S. technology to China.
In commodities, oil fell as traders wait to see what Biden might do to alleviate gasoline prices amid growing criticism about the impact of rising costs. Aluminum and base metals retreated in part on China’s property slowdown.
Meanwhile, Elon Musk raised the idea of selling more of his Tesla Inc. shares in online sparring with U.S. Senator Bernie Sanders. Musk offloaded almost $7 billion worth of Tesla stock over the past week, weighing on the shares of the electric-vehicle manufacturer.
Nikkei +0,52% Hang Seng -0,02% CSI -0,07% Shanghai -0,13% Shenzen -0,12%
Eur$ 1,1458 CNH 6,3579 CNY 6,3809 JPY 113,85 GBP 1,3432 CHF 0,9197 RUB 72,6020 TRY 10,02 WTI$ 80,42 Gold 1,857,50 BTC 65,739 +1400 ETH 4701 +125
S&P +0,05% Nasdaq +0,23% EuroStoxx -0,08% FTSE -0,08% Dax -0,06% SMI -0,15%
Macro :
- Morgan Stanley Stays Cautious on China, EM Equities, Likes Japan
- RBC Capital Caves to S&P 500’s Rally, Then Has to Do It Again
- Michael Burry Again Calls Foul on Musk, This Time Over Rivian
- Japan Says Agreed With U.S. to Start Talks on Metals Tariffs
Keep an eye on :
- ADEN SW : Adecco Shares Rally into Close After Betaville ‘Uncooked Alert’
- AIR FP : DHL Orders Nine More 767-300 Boeing Converted Freighters
- AIR FP : Got 225 jet order from Low cost Investor Franke - FT
- ATL IM : EU Clears Sale of Atlantia’s ASPI to Group Led by Italy’s CDP
- ATO FP : Atos Shares Pare Earlier Declines on Betaville Mention
- BBVA SM : BBVA to Launch Takeover Bid for Remaining 50.2% of Garanti Shrs
- BNTX US : Pfizer Shot Gave Most Antibodies in Comparative Study (Correct)
- BOKA NA : Boskalis, Keppel to Sell KST, Maju to Rimorchiatori Mediterranei
- BT/ A LN : Altice Founder Drahi Seeks Bigger Stake in BT Group: Rtrs
- CFR SW : Richemont Farfetch Deal, Consumers Fear Inflation: Consumer Wrap
- COTN SW : Comet Sees FY Sales CHF480M to CHF500M
- CBK GY : Commerzbank Concludes Talks With Works Council on Strategy 2024
- DOKA SW : Dormakaba Sees FY Sales +3% to +5%
- ECV GY : Encavis 9M Revenue EU259.1M Vs. EU234.3M Y/y
- EFGN SW : EFG Reports 9M Net New Assets of CHF6.2B, Higher Profitability
- ENI IM : Italy’s Eni Says Oil Prices Could Reach $100, But Not for Long
- FER SM : Aena, Ferrovial Eye Brazil’s Next Airport Auction, Minister says
- FILA IM : Fila 9M Revenue EU496.5M Vs. EU471.3M Y/y
- GYC GY : Grand City Properties 9M Revenue EU389.5M Vs. EU401.2M Y/y
- HEIA NA : Heineken Offers to buy Distell at ZAR180/Share in Cash
- LEON SW : Leonteq Raises FY 2021 Profit Outlook to CHF140m-CHF160m
- LHA GY : Lufthansa to Charge Customers to Flaunt Their Green Credentials
- NOLAB SS : Nolato Says Effects of Data Breach Have Been Limited
- RBI AV : KBC to Buy Raiffeisen Bank’s Bulgarian Business for ~EU1.015B
- REC BB : Greiner Sees ‘Likely’ Phase II EU Investigation of Recticel Bid
- SFQ GY : SAF-Holland SE 9M Adjusted Ebit EU71.3M Vs. EU38.5M Y/y
- SPM IM : Saipem Awarded Two New Offshore T&I Contracts for Over $600M
- SAP GY : A Strong End to a Week of Two Halves; SAP Slips: EMEA Tech Wrap
- SGRE SM : GE Wind Fight With Siemens Gamesa Gets Further ITC Scrutiny
- SOON SW : Sonova 1H Sales Beat Estimates
- TLX GY : Talanx Sees FY Net Income High End Of EU900M to EU950M
- TSLA US : Tesla’s Musk Sells 1.2 Million More Shares for $1.24 Billion
- TSLA US : Musk’s SpaceX Shouldn’t Get U.S. Broadband Subsidy, Viasat Says
- VTWR GY : Vantage Towers Boosts FY Recurring Free Cash Flow Forecast
- VBX GY : Voltabox Sells Car Unit, Holder Exits Most of Stake
- VOLVB SS : Volvo Cars to Launch Three New EVs by 2025, Plans Third EU Plant
>>> Up
* Admiral Raised to Buy at Berenberg; PT 3,245 pence
* CMC Markets Raised to Buy at Jefferies; PT 330 pence
* Computacenter PT Raised to 3,600 pence at Berenberg
* Digia Raised to Buy at Carnegie; PT 8.10 euros
* EDP Raised to Buy at HSBC; PT 5.40 euros
* Enel Raised to Hold at Jefferies; PT 7 euros
* Engie PT Raised to 18 euros from 17 euros at Morgan Stanley
* Fortum Raised to Hold at Kepler Cheuvreux; PT 25 euros
* Hufvudstaden Raised to Buy at SEB Equities; PT 165 kronor
* Remy Cointreau Raised to Overweight at Barclays; PT 234 euros
>>> Down
* Alfen Cut to Hold at Berenberg; PT 85 euros
* Auto Trader Cut to Add at Peel Hunt; PT 800 pence
* B&M European Cut to Underperform at RBC; PT 575 pence
* B&M European Cut to Sell at Goldman; PT 580 pence
* Direct Line Cut to Hold at Berenberg; PT 295 pence
* EasyJet Cut to Reduce at Kepler Cheuvreux; PT 460 pence
* Hensoldt Cut to Neutral at JPMorgan; PT 16.50 euros
* Telecom Italia Cut to Hold at Deutsche Bank; PT 43 euro cents
>>> Initiation
* Agilyx Rated New Buy at Nordea; PT 70 kroner
* Bytes Technology Rated New Buy at Berenberg; PT 650 pence
* TUI Reinstated Hold at HSBC; PT 2.70 euros
>>> Call
* Alfen Loses Only Buy as Berenberg Sees Lack of Near-Term Upside
* Direct Line Cut, Admiral Raised as Berenberg Switches Preference
* Morgan Stanley Stays Cautious on China, EM Equities, Likes Japan
* Wood Strategic Review Can Unlock Huge Value, Up to Buy at Citi