>>> Europe : Brokers Upgrades & Downgrades - 25th of August 2021 V2(+)

>>> Up
* Adidas Raised to Buy at Deutsche Bank; PT 360 euros
* ASA International Group Raised to Outperform at KBW
* *ASR NEDERLAND RAISED TO ACCUMULATE VS HOLD AT KBC SECURITIES (+)
* British Land Raised to Buy at Liberum; PT 585 pence
* EVS Broadcast Raised to Buy at ING; PT 25 euros (+)
* GEA Group Raised to Neutral at JPMorgan; PT 36 euros
* Lanxess PT Raised to 85 euros from 80 euros at M.M. Warburg (+)
* Puma Raised to Buy at Deutsche Bank; PT 120 euros
* SmartCraft Raised to Buy at Berenberg; PT 29 kroner

>>> Down
* Cembra Money Bank Cut to Hold at Deutsche Bank
* CompuGroup Cut to Hold at LBBW; PT 80.50 euros
* DKSH Cut to Hold at Stifel; PT 80 Swiss francs
* NIBE CUT TO HOLD VS BUY AT BERENBERG, PT SEK120
* ICADE Cut to Hold at Deutsche Bank; PT 74 euros
* Italgas Cut to Sector Perform at RBC
* Norway Royal Salmon Cut to Hold at Handelsbanken; PT 275 kroner
* PSI Cut to Hold at DZ Bank; PT 41 euros (+)
* Sainsbury Cut to Underperform at BofA; PT 300 pence (+)
* Sartorius Cut to Hold at LBBW; PT 581 euros
* Schindler Cut to Hold at Stifel; PT 315 Swiss francs
* Snam Cut to Underperform at RBC; PT 4.55 euros
* Terna Cut to Underperform at RBC; PT 5.75 euros

>>> Initiation
* AB Foods Reinstated Hold at Deutsche Bank; PT 2,200 pence
* Admiral Reinstated Underperform at Jefferies; PT 2,600 pence
* ALA/Napoli Rated New Buy at Intesa Sanpaolo; PT 14.50 euros (+)
* Asos Reinstated Buy at Deutsche Bank; PT 5,400 pence
* Boohoo Reinstated Buy at Deutsche Bank; PT 400 pence
* Direct Line Rated New Buy at Jefferies; PT 390 pence
* Equinor ADRs Rated New Buy at MKM; PT $34
* H&M Reinstated Sell at Deutsche Bank; PT 150 kronor
* Inditex Reinstated Sell at Deutsche Bank; PT 22 euros
* LendInvest Rated New Buy at Berenberg; PT 270 pence
* Marks & Spencer Reinstated Buy at Deutsche Bank; PT 195 pence
* Next Reinstated Buy at Deutsche Bank; PT 9,200 pence
* Novem Group Rated New Neutral at JPMorgan; PT 17.50 euros
* Sabre Insurance Rated New Hold at Jefferies; PT 240 pence

>>> Call
* Barclays Says Positions Show Increased Caution in Equity Markets (+)
* Cembra Gets 4th Downgrade Since Card Setback; a ‘Major Loss’: DB (+)
* Direct Line is Jefferies’s Pick in Challenging U.K. Motor Market
* Elekta’s High Costs Hit Margins and Aren’t Going Away: Bernstein (+)
* Icade Health IPO Is Priced In, Deutsche Bank Says; Cuts to Hold (+)
* Italian Regulated Utilities’ Risks Underappreciated, RBC Says
* LendInvest Gets New Buy Rating as Berenberg Predicts Growth (+)

FT : France’s online ‘fachosphere’ feeds rightwing electoral hopes

France’s online ‘fachosphere’ feeds rightwing electoral hopes
Social media ideologues use sex appeal and jokes to spread extreme views

Wearing a tight-fitting leopard print dress, 25 year-old Estelle “Redpill” says her sex appeal is helping to awaken citizens to the dangerous political reality facing France at next year’s presidential election, especially when it comes to immigration.

Self-named after a truth-revealing red pill in the 1999 film The Matrix, Estelle is one of a number of rightwing social media influencers who have exploded on to France’s so-called fachosphere, or fascist-sphere, over the past six years.

While having varied ideas, they share a nativist, anti-immigration worldview and seem to have a general desire for more authoritarian government. Analysts say they tacitly provide an important canvassing role for the established far-right Rassemblement National party by airing extremist views that party members then do not have to.

Marine Le Pen, leader of the RN, has sought to “detoxify” the party’s extremist image without alienating its traditional voters. Now, with the fachosphere, Le Pen “doesn’t need to get her hands dirty because these internet influencers do the dirty work for her,” David Doucet, a French journalist and author of a book on the fachosphere, said.

These influencers use sex appeal, shock jokes, cartoons and memes to entice viewers to their often extreme views (when TikTok barred Estelle for what it deemed discriminatory content, she opened a new account). Their main audience are unpoliticised young voters — an important battleground in next April’s election.

According to Ipsos and Ifop polls, the RN is now the most popular party among those aged between 25-34, while President Emmanuel Macron leads among the 18 to 24s. But many in these cohorts often do not vote. In the 2017 presidential election, 63 per cent of those under the age of 34 abstained in the first round.

One aim of the fachosphere is to bring these potential voters round to their views and make them more politically engaged. They have “mastered the codes of LOL culture”, Doucet said.

No one has leaned more heavily on jokes to mask often sinister content than the YouTube and Instagram influencer “Papacito”, whose real name is Ugo Gil Jimenez.

He sparked outrage in June when he released a video entitled “Is Leftism Bulletproof?”, in which he staged a mock execution of someone voting for the leftwing France Unbowed party led by socialist Jean-Luc Mélenchon. Jiminez defended himself, saying the video was “humoristic”.


Macron has made his own social media content to try to counter extremist influences. In May, he challenged two famous YouTubers to make a video about social distancing rules which, if it got more than 10m views, would be rewarded by a trip to the Elysée and a video with Macron where they would compete to guess if anecdotes about his life were true or false.

Their video with Macron received an impressive 15m views, plus a good dose of derision. Leftwing influencers also deploy satire and popular culture to spread their message among the young.

But France’s extreme right has always shown more internet agility and savvy. The RN, formerly the Front National, was the first party to build a website in the 1990s. In the late noughties, far right theorists created successful online propaganda sites to espouse anti-immigration theories. 

Then, as the social media wave swelled, new voices deployed fresh forms across YouTube, Twitter, Instagram, TikTok and Telegram. Their central message boils down to migration and what they claim is foreigners’ failure to integrate into society.

“We are Europeans and we wish to remain a majority on our ancestors’ continent and in the cities that they built. Is that so hard to understand?” said Daniel Conversano, an ideological participant in France’s alt-right social media orbit. 

His followers tend to be young people, he said over WhatsApp to the Financial Times, who “feel desperate about their future, whether it’s about unemployment, lack of safety in public places, or the disastrous relationship between men and women in the western world”.

Le Pen’s detoxification strategy, which aims to make the RN more electable, has not played well with a lot of these influencers. Instead, many are tying their colours to more radical, fringe politicians such as Eric Zemmour, a TV polemicist who has been convicted for provoking racial hatred.

Estelle said she has a problem with what she sees as Le Pen’s “hypocrisy”, becoming “softer to please immigrants . . . so that she has a better chance of winning”. Zemmour, by contrast, is more “genuine”, and will get her vote.

If Zemmour runs next year, as he has indicated, these internet influencers could split the extreme right vote, thereby weakening Le Pen. Polls suggest she is the most likely politician to face Macron in a second round run-off.

Some analysts believe the influence of the far-right online counter culture is exaggerated. Despite their efforts, many of the people making and consuming their content will probably not vote.

Still, the influencers’ nativist stance provides an “ideological bridge” between the RN and fringe online groups, according to Caterina Froio, assistant professor of political science at Sciences Po. 

Le Pen may want to distance herself from them, but also relies on them to plug the RN’s “serious shortfall in personnel”, Froio said.

“There are plenty of young people who have never read a foreign political book and who come to political ideas by watching these kinds of videos,” added Doucet. “To campaign nowadays is to click, to post messages, so the RN needs these people.”

FT : Inside Business: Asimov’s vision of space-based solar power is more than sc

Inside Business: Asimov’s vision of space-based solar power is more than science fiction
Countries should commit to collaboration on technology and revise rules on extraterrestrial engagement

In his short story “Reason”, published in 1941, science fiction writer Isaac Asimov described a universe in which humans harvest solar power in space to sustain life on earth. 

Eighty years later, and at the crux of a global climate emergency, the idea of capturing the sun’s energy with vast solar panels in space and transmitting it back to earth via microwaves could become reality. 

China, the US, Europe and Japan are all developing projects. Beijing even plans to have a working system by the 2030s, according to reports from China-based media. 

In September, the UK government will signal it too wants to explore the technology’s potential. It will publish findings of a new study examining how space solar might help Britain achieve a net zero economy by 2050. 

The report, prepared by consultants Frazer-Nash with input from European companies such as Airbus and Thales Alenia Space, concludes that space-based solar power is not only technologically possible, it argues that the lifetime cost per megawatt hour could be half that of nuclear power. 

With a single power station in Britain (Hinkley Point C) set to rack up costs of £23bn, the report’s estimate of £16bn to develop the technology and launch an operational 2GW solar satellite seems a bargain. Subsequent satellites at £3.6bn make the proposition even more attractive.

Then again, if the private sector is to help foot the bill, nation states will also have to revise the legal regime that governs the use of space. 

The outer space treaty of 1967 is woefully inadequate for the commercial opportunities that are fast emerging. Individual nations are now starting to fill the vacuum with their own rules on commercial rights and responsibilities. That could be a recipe for chaos, warns Rachael O’Grady, space partner at law firm Mayer Brown.

Of course, such an endeavour would be difficult for most countries to undertake alone. Given that the technology could be game changing for the global climate crisis, this project offers a strong case for development within an international partnership. 

Obviously, it is cheaper to build solar farms on earth. But space-based solar power, unlike its intermittent terrestrial counterpart, can be delivered round the clock to any point on the planet. It can provide a baseload of generation capacity where reliable green options are limited.

Until recently, it has been far too expensive to put such infrastructure in space. But Elon Musk’s partly reusable Falcon rocket and smaller satellites have changed the equation. A 2018 Nasa study estimated that the typical cost of launch has fallen by a factor of 20 over the previous decade. 

Other enabling technologies have also advanced. A New Zealand firm is already trialling the wireless transfer of electricity over several kilometres. Orbits above earth are much further away, admits Martin Soltau, head of space at Frazer-Nash. But the underlying physics is well understood.

The size of the satellite presents the biggest challenge, which in Frazer-Nash’s scenario stretches to an unprecedented 1.7km wide. Such scale ensures efficient transmission of power to earth.

This may seem impossible. But John Mankins, a former Nasa physicist, has devised the SPS-Alpha concept using the system of systems approach. One satellite could comprise thousands of small solar power units, assembled in space by robots, for which technology is also rapidly evolving. 

No doubt questions will arise over the system’s vulnerability, its maintenance, and its contribution to the growing crisis of space debris. These and other issues will require further study. 

Also no guarantee exists that space-based solar power will be economically viable. However, even should costs spiral, any innovations in areas such as power beaming and robotics could pay off, even if solar satellites do not.

In November, the UK hosts the global climate summit, COP26, in Glasgow. The topic of collaboration deserves discussion. The energy and space industries will also have to participate. Companies such as BP, Shell and EDF apparently have expressed interest.

Space based solar power need not remain science fiction any more than commercial space travel once was. Yes, the risk exists that promising technologies such as space-based solar power might not work. And failure to reach international agreement on an effective legal framework could render space hostile not just to human life, but to human prosperity.

But with the right encouragement and planning this source of renewable energy can work in our lifetime.

FT : Bain sells South Korea’s top Botox maker for $1.5bn

Bain sells South Korea’s top Botox maker for $1.5bn
Deal with consortium led by Singapore’s CBC comes as Covid-19 lockdowns fuel cosmetic surgery boom

Private equity group Bain Capital has sold its controlling stake in South Korea’s leading Botox maker to a consortium of investors for $1.5bn as the Covid-19 pandemic fuels a surge in demand for cosmetic surgery in the country.

Seoul-based Hugel, founded in 2001, is South Korea’s biggest producer of botulinum toxin. It also makes dermal facial fillers, which are used to reduce wrinkles. The company has tapped into booming local demand and rising popularity globally for beauty-focused medical products.

The consortium that bought Bain’s 46.9 per cent equity interest was led by Singapore’s CBC Group and also included Abu Dhabi sovereign wealth fund Mubadala, Korean family-controlled conglomerate GS Holdings and local private equity fund IMM Investment.

Shares in Hugel fell 7.6 per cent in Seoul on Wednesday following the deal’s announcement, but were still up more than 10 per cent this year.

“Bain’s exit has fuelled concerns about Hugel’s expansion abroad, including the US market,” said Albert Yong, managing director at Petra Capital Management, a Seoul-based hedge fund that is invested in Hugel. “The price tag seems expensive, considering such concerns.”

For Bain, the sale marked a robust return on its 2017 investment of $816m.

The deal came as Seoul has cemented its reputation as an Asian hub for plastic surgery. One in three South Korean women in their 20s say they have had cosmetic surgery.

The coronavirus pandemic has further boosted the popularity of plastic surgery in the country, as homeworking and fewer social interactions made people less self-conscious about post-surgery bandages, industry watchers said.

Hugel reported record earnings last year, with its operating profit increasing 15 per cent to Won78.2bn ($670m) on sales of Won211bn. Botox and facial fillers accounted for more than 90 per cent of the company’s sales, with the group enjoying a beefy 37 per cent operating profit margin.

Hugel sells its Botox products in 28 countries in south-east Asia and Latin America.

Last October, it became the first South Korean company to receive Chinese approval to sell Botox products in the world’s second-biggest economy. It is one of four foreign companies selling Botox in China.

Hugel set up a Chinese subsidiary in Shanghai in March to boost its expansion in the country, where analysts estimated the Botox market was worth about $857m. Hugel is aiming to grab 30 per cent of the fast-growing Chinese market.

It is also seeking approval from health authorities in Europe and the US to enter both markets, which combined account for about 70 per cent of global Botox sales. 

Seo Mi-hwa, analyst at brokerage Yuanta Securities, expected Botox sales in China and other markets to increase in the second half of the year as lockdowns eased. She forecast that Hugel would earn EU approval for its Botox products this year and get the green light from the US in 2022.

>>> Stoxx 600 Pre-Market Indications

  • MorphoSys (MOR TH) +2.3%
  • Puma (PUM TH) +1.6%
    • Puma Raised to Buy at Deutsche Bank; PT 120 euros
  • Adidas (ADS TH) +1%
    • Adidas Raised to Buy at Deutsche Bank; PT 360 euros
  • Novo Nordisk (NOVC TH) -0.7%
  • Inditex (IXD1 TH) -1.3%
    • Inditex Reinstated Sell at Deutsche Bank; PT 22 euros
  • TUI (TUI1 TH) -2%

>>> TradeGate Pre-Market Indications

DAX:
  • Adidas (ADS TH) +1.2%
    • Adidas Raised to Buy at Deutsche Bank; PT 360 euros
MDAX:
  • MorphoSys (MOR TH) +2.5%
  • Shop Apotheke (SAE TH) +1.5%
  • Lanxess (LXS TH) +1%
  • Telefonica Deutschland (O2D TH) -0.6%
SDAX:
  • Borussia Dortmund (BVB TH) +0.7%
  • flatexDEGIRO (FTK TH) -0.8%

>>> Europe : Brokers Upgrades & Downgrades - 25th of August 2021

>>> Up
* Adidas Raised to Buy at Deutsche Bank; PT 360 euros
* ASA International Group Raised to Outperform at KBW
* British Land Raised to Buy at Liberum; PT 585 pence
* GEA Group Raised to Neutral at JPMorgan; PT 36 euros
* Puma Raised to Buy at Deutsche Bank; PT 120 euros
* SmartCraft Raised to Buy at Berenberg; PT 29 kroner

>>> Down
* Cembra Money Bank Cut to Hold at Deutsche Bank
* CompuGroup Cut to Hold at LBBW; PT 80.50 euros
* DKSH Cut to Hold at Stifel; PT 80 Swiss francs
* NIBE CUT TO HOLD VS BUY AT BERENBERG, PT SEK120
* ICADE Cut to Hold at Deutsche Bank; PT 74 euros
* Italgas Cut to Sector Perform at RBC
* Norway Royal Salmon Cut to Hold at Handelsbanken; PT 275 kroner
* Sartorius Cut to Hold at LBBW; PT 581 euros
* Schindler Cut to Hold at Stifel; PT 315 Swiss francs
* Snam Cut to Underperform at RBC; PT 4.55 euros
* Terna Cut to Underperform at RBC; PT 5.75 euros

>>> Initiation
* AB Foods Reinstated Hold at Deutsche Bank; PT 2,200 pence
* Admiral Reinstated Underperform at Jefferies; PT 2,600 pence
* Asos Reinstated Buy at Deutsche Bank; PT 5,400 pence
* Boohoo Reinstated Buy at Deutsche Bank; PT 400 pence
* Direct Line Rated New Buy at Jefferies; PT 390 pence
* Equinor ADRs Rated New Buy at MKM; PT $34
* H&M Reinstated Sell at Deutsche Bank; PT 150 kronor
* Inditex Reinstated Sell at Deutsche Bank; PT 22 euros
* LendInvest Rated New Buy at Berenberg; PT 270 pence
* Marks & Spencer Reinstated Buy at Deutsche Bank; PT 195 pence
* Next Reinstated Buy at Deutsche Bank; PT 9,200 pence
* Novem Group Rated New Neutral at JPMorgan; PT 17.50 euros
* Sabre Insurance Rated New Hold at Jefferies; PT 240 pence

>>> Call
* Direct Line is Jefferies’s Pick in Challenging U.K. Motor Market
* Italian Regulated Utilities’ Risks Underappreciated, RBC Says

>>> What to look at today - 25th of August 2021

Asian stocks wavered Wednesday as a rebound in Chinese technology stocks stalled and traders weighed the resilience of the economic recovery to the fast-spreading delta virus strain. The dollar edged higher. 
A Hong Kong gauge of Chinese tech names turned lower amid lingering concerns about Beijing’s crackdown on private industries, while MSCI Inc.’s wider Asia-Pacific index was little changed. U.S. and European futures fluctuated in the wake of all-time highs for the S&P 500 and the Nasdaq 100.
The U.S. 10-year Treasury yield held a climb. The House adopted a $3.5 trillion budget resolution overnight, moving forward President Joe Biden’s plans for substantial spending. China’s 10-year bond yield slipped amid a short-term cash injection by the central bank.
In commodities, oil retreated after the biggest two-day gain since November with Covid-19 still shadowing assessments of the demand outlook.
US After Hours SCSC +4.6%, INTU +2% higher on earnings; JWN -7.9%, URBN -3.4% lower on earnings; several index changes announced, TECH +0.1% to join S&P 500; HUGE -13.4% falls on plan to terminate Phase 2 trial

Nikkei +0.00% Hang Seng -0.01% CSI -0.02% Shanghai +0.44% Shenzen +0.04%

Eur$ 1.1744 CNH 6.4754 CNY 6.4768 JPY 109.70 GBP 1.3723 CHF 0.9141 RUB 73.8074 TRY 8.4190 WTI$ 67.37 -0.25% Gold 1,796.15 -0.40% BTC 48,555 +207 ETH 3,215 -2

S&P -0.02% Nasdaq +0.04% EuroStoxx -0.02% FTSE +0.03% Dax -0.06% SMI -0.18%

Macro :
- TPG Is Said to Work With JPMorgan, Goldman Sachs on IPO Plan
- German Savings Banks to Beef Up Guarantee Funds by EU4.6B: SZ
- SEC to Demand All Chinese Firms Reveal More About Investor Risks

Keep an eye on :
- ALLN SW : Allreal 1H Net Income CHF79.1M Vs. CHF63M Y/y
- ALV GY : Henri Losses May Reach $4 Billion as Heavy Rains Trigger Floods
- AMGO LN : Amigo Holdings FY Loss After Tax GBP289.1M
- ARGX BB : EU Drug Regulator Validates Argenx’ MAA for Efgartigimod
- AT1 GY : Aroundtown 1H Adjusted Ebitda EU451.9M Vs. EU500M Y/y
- ASRNL NA : ASR Nederland 1H Operating Profit Beats Estimates
- AML LN : Regulators reject suspicions of insider trading in Aston Martin and Daimler shares
- AUG LN : Augean Agrees to Bid by Ancala, Fiera, Topping Morgan Stanley
- B2H NO : B2Holding 2Q Net Income Beats Estimates
- BEWI NO : Bewi Issues EU160m 5Y Sr Unsecured Sustainability-Linked Bond
- ALCAR FP : Carmat: Second U.S. Center Implanting Total Artificial Heart
- CCL LN : Carnival Cruise Line Passenger Dies Due to Covid-19
- CTM SS : Catena Media 2Q Adjusted Ebitda EU14.9M Vs. EU14.8M Y/y
- DAI GY : Mercedes-Benz CTO Sajjad Khan to Set Up Venture-Capital Fund
- DAI GY : Regulators reject suspicions of insider trading in Aston Martin and Daimler shares
- EKTAB SS : Elekta 1Q Operating Profit SEK201M vs SEK335M Y/y
- IBAB BB : Ion Beam 1H Adjusted Ebit EU0.67M Vs. Loss EU9.94M Y/y
- LUS GY : Lang & Schwarz Sinks; Meeting Postponed After Interim Tax Report (-41%)
- MSONA SS : Midsona Offers Up to SEK500m Shares via Danske Bank, 7.5m Shares Prices at SEK66.7/Share
- MOWI NO : Mowi Boosts FY Harvest Forecast
- MRW LN : CD&R Has No Plan to Make Changes to Morrison Pension Benefits
- RI FP : Pernod Sees $163M Drawback Claims Positive Impact On FY Profit
- SCST SS : Scandi Standard 2Q Net Sales Beat Estimates
- SDR LN : Schroders Boosts Diversification as Returns Seen Challenged
- SSG NO : Self Storage Offering of 10.4m Shares Prices at NOK29/Share
- SENS SW : Sensirion Sees FY Revenue CHF260M to CHF280M
- SHL GY : Siemens Healthineers ELF Test Gets FDA Marketing Authorization
- SOLB BB : Solvay, Shinkong Synthetic Fibers Create Taiwan Joint Venture
- SRAIL SW : Stadler Rail 1H Net Revenue CHF1.42B Vs. CHF934.7M Y/y
- TRE SM : Tecnicas Picked to Participate in Expansion of Qatar LNG Output
- VEFAB SS : Vef Offering of 207.3m Shares Prices at SEK4.27/Share
- DG FP : Vinci Airports July Passenger Traffic Down 63.3% V. July ‘19