9to5 ; BMW CFO downplays Apple Car threat, saying ‘I sleep very peacefully’

- Mar. 8th 2021 6:44 am PT




Add Your Comment
BMW’s CFO is the latest automaker executive to downplay the threat of a potential Apple Car. As reported by Bloomberg, Nicolas Peter said in an interview that he sleeps “very peacefully” despite the growing rumors of Apple’s plans to build an autonomous electric vehicle.

Peter touted that competition is a “wonderful thing” and that BMW is well-positioned to handle increased competition the car industry.
“I sleep very peacefully,” Peter said when asked about Apple. “Competition is a wonderful thing – it helps motivate the others. We’re in a very strong position and we want to remain in a leading position of the industry.”
BMW is only the latest automaker to rebuff the threat of Apple entering the industry. Last month, Volkswagen’s CEO explained that the company is not worried about Apple entering the car business, saying that it’s “not a typical tech-sector that you could take over at a single stroke.”
Apple’s plans to create an Apple Car that’s all-electric and fully autonomous have been detailed in a variety of reports recently. For several weeks, it looked like Apple was nearing a deal for Apple Car production with Hyundai subsidiary Kia Motors, but those talks ultimately broke down.
The current state of Apple’s Car project remains unclear, but Reuters has reported that Apple could begin production in 2024 using “breakthrough battery technology.” Ming-Chi Kuo tampered expectations slightly, saying that the release could come in 2028 or later.
What do you think about Apple’s rumored interest in the car industry? Do you think legacy automakers such as BMW should be worried? Let us know down in the comments!

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • SITC -1.8%

Select ETFs showing weakness:

  • QQQ -1.5%, SPY -0.7%, IWM -0.4%, DIA -0.2%, .

Select airline names showing early weakness:

  • SAVE -2.1%, AAL -1.2%, DAL -1%, UAL -1%, LUV -0.5%, .

Other news:

  • KOPN -7.7% (files for mixed securities shelf offering, no amount given)
  • NIO -4% (in sympathy with XPEV)
  • IIVI -3.1% (Coherent determines IIVI's proposal to be superior to Lumentum (LITE) merger agreement)
  • CSIQ -2.2% (completes 61 mwp solar portfolio sale in Japan and deepens partnership with Canadian Solar Infrastructure Fund)
  • MSFT -1.2% (30,000+ organizations have been hacked by an unusually aggressive Chinese cyber espionage unit, exploiting Microsoft email software, according to KrebsOnSecurity)
  • AVB -0.9% (provides Q1 operating update)

Analyst comments:

  • SEAS -0.9% (downgraded to Neutral from Buy at Citigroup)
  • AIN -0.8% (downgraded to Neutral from Buy at BofA Securities)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • RDNT +5.7%, XPEV +2.4%

Other news:

  • OPGN +21.4% (announces publication of of a new peer-reviewed publication on the Unyvero Hospitalized Pneumonia panel in hospitalized patients with COVID-19 pneumonia)
  • ATH +17.4% (Athene Holding and Apollo (APO) to merge in an all-stock transaction that implies a total equity value of approximately $11 billion for Athene)
  • ADPT +11.2% (receives FDA Emergency Use Authorization for T-Detect COVID to confirm recent or prior COVID-19 infection)
  • MCFE +10.9% (to sell its Enterprise business to a consortium led by Symphony Technology Group (STG) in an all-cash transaction for $4.0 billion, expects to issue a $4.50 special dividend )
  • ARDS +9.4% (has augmented its inhaled AR-711 monoclonal antibody to COVID-19 with a second mAb that is designed to neutralize newly emerging COVID-19 mutated variants including those from South Africa, Brazil and Japan)
  • AGLE +9% (Baker Bros Advisors disclose 9.9% stake)
  • NHIC +6.9% (Evolv Technology to become publicly traded through merger with NewHold Investment Corp)
  • CARA +5.3% (Vifor Pharma and Cara Therapeutics announce FDA acceptance and Priority Review of NDA for KORSUVA injection in hemodialysis patients with moderate-to-severe pruritus)
  • SRNE +4.2% (Lee's Pharmaceutical Announces its Anti-PD-L1 Antibody Socazolimab, Licensed From Sorrento Therapeutics, Receives Clearance to Start Phase 3 Trial as a First-line Treatment of Extensive-stage Small-Cell Lung Cancer )
  • LGHL +3.9% (signed engagement letters with Maxim Group LLC and Loeb & Loeb LLP to form a second SPAC company, Aquarius I Acquisition Corp)
  • VXX +3.3% (trading higher with early weakness in stock indices)
  • PASG +2.9% (receives Fast Track Designation to three passage bio gene therapy candidates targeting rare CNS disorders)
  • NBA +2.4% (Airspan Networks to go public through merger with New Beginnings Acquisition Corp)
  • COHR +2% (Coherent determines IIVI's proposal to be superior to Lumentum (LITE) merger agreement)
  • OCGN +1.9% (new presentation slides)

Analyst comments:

  • AMRX +5.1% (upgraded to Buy from Sell at Goldman)
  • WTRH +4.7% (upgraded to Buy from Hold at Deutsche Bank)
  • DSP +4.7% (initiated with a Buy at Needham)
  • IOVA +3.2% (upgraded to Buy from Neutral at H.C. Wainwright)
  • ZTS +2.6% (upgraded to Buy from Neutral at BofA Securities)
  • KO +0.8% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
  • TGT +0.8% (upgraded to Buy from Neutral at Guggenheim)

FT : Agnelli family buys 24 per cent stake in Christian Louboutin

Agnelli family buys 24 per cent stake in Christian Louboutin
Deal values French brand famous for its towering stilettos at €2.3bn

Italy’s billionaire Agnelli family has continued its expansion into the luxury sector with the acquisition of a stake in French luxury shoe maker Christian Louboutin. 

Exor, the industrial dynasty’s holding company, said on Monday it will invest €541m in the French brand, whose signature design is a towering stiletto with red-lacquered soles, to acquire a 24 per cent stake.

The deal values the 30-year-old Paris-based brand, named after its eponymous designer and co-founder, at a total of €2.3bn. Exor will also appoint two of the seven board members.

The investment follows Exor’s acquisition last December of a majority stake in Chinese luxury lifestyle label Shang Xia, which is co-owned by France’s Hermès. It signals the Agnelli family’s further push into the luxury sector, which it has flagged for expansion alongside tech, and where the Arnault, Pinault and Rupert families dominate brand ownership through their LVMH, Kering and Richemont holding companies. 

Louboutin, whose shoes are regularly worn by royalty and Hollywood stars, has declined many offers to buy the company over the years, including from LVMH, the world’s largest luxury group by revenues. When asked in a 2018 Financial Times interview if Christian Louboutin would remain independent, he said: “You can never say forever, but it’s been 27 years and for me it’s an important thing to be free.” 

In a statement on Monday, Louboutin said Exor’s “steady long-term focus and a strong entrepreneurial culture” makes it the right partner to “write a new page in the history of our Maison.” 

“The partner with whom we would associate should respect our values, be open minded and should have an ambitious, young dynamism,” he added. Louboutin will retain the company’s majority stake with his business partner, Bruno Chambelland.

The deal comes after sales in the wider luxury sector contracted last year, as restrictions on international travel and widespread lockdowns to combat the march of the coronavirus pandemic curbed spending on high-end goods.

Sales were set to contract 22 per cent in 2020 to reach €217bn globally, representing a return to 2014 levels, and they will take up to three years to recover, according to a November study by consultancy Bain and Altagamma, the Italian luxury association.

Christian Louboutin said the brand fared well during the pandemic thanks to its existing ecommerce platform, which it plans to expand further. Exor had previously indicated the tech and luxury sectors as its new areas of focus.

John Elkann, the Agnelli family scion and Exor’s chief executive, said: “Christian Louboutin’s extraordinary creativity, energy and unique vision are precisely the qualities needed to build a great company.”

Elkann and Louboutin have known each other for many years and both insist their partnership is based on “mutual trust”. Exor will be a long-term investor which will help support the company’s further growth, the company said. 

The Christian Louboutin stake marks Exor’s third investment alongside French partners after the blockbuster Fiat Chrysler and PSA merger was finalised last month to create Stellantis, the world’s sixth automobile manufacturer. 

Exor’s firepower to do further acquisitions was boosted by the €1bn in dividends it reaped following the deal.

>>> Europe : Brokers Upgrades & Downgrades - 8th of March 2021 V2(+)

>>> Up
* Aggreko Raised to Neutral at Credit Suisse; PT 880 pence
* Coloplast Raised to Equal-Weight at Barclays; PT 890 kroner
* Derwent London Raised to Buy at HSBC; PT 3,770 pence
* DNO Raised to Buy at Renaissance Capital; PT 10.50 kroner (+)
* Flutter PT Raised to 18,700 pence from 17,500 pence at Jefferies
* Galp Raised to Buy at Goldman; PT 13 euros
* GEA Group Raised to Hold at Hauck & Aufhaeuser; PT 30 euros (+)
* Great Portland Raised to Buy at HSBC; PT 815 pence
* Inchcape PT Raised to 890 pence from 810 pence at Jefferies
* Kingspan Raised to Outperform at On Field; PT 79 euros (+)
* Nokia Raised to Accumulate at OP Corporate Bank (+)
* Schouw Raised to Buy at SEB Equities; PT 710 kroner
* Solaria Energia Raised to Buy at Goldman; PT 25.50 euros
* TITC BB Raised to Outperform at Piraeus Securities S.A.
* Vestas Raised to Hold at HSBC; PT 1,070 kroner

>>> Down
* CGG Cut to Hold at SocGen; PT 1.17 euros
* Corestate Cut to Hold at Jefferies; PT 14 euros
* Covestro Cut to Sell at Citi; PT 57 euros
* Elior Group Cut to Hold at Stifel; PT 7 euros
* Erste Cut to Neutral at JPMorgan; PT 28 euros
* Inventiva SACA Cut to Sell at SocGen; PT 9.30 euros
* Quadient SA Cut to Add at AlphaValue
* Repsol Cut to Neutral at Goldman; PT 13 euros
* Richter Cut to Hold at HSBC; PT 9,000 forint
* Snam Cut to Neutral at Goldman; PT 5.10 euros

>>> Initiation
* BMO Commercial Property Trust Ltd Rated New Add at Peel Hunt
* Capita Reinstated Neutral at Goldman; PT 60 pence
* LVMH Resumed Buy at Citi; PT 620 euros
* Meyer Burger Rated New Buy at Mirabaud Securities (+)
* Picton Property Rated New Add at Peel Hunt; PT 100 pence
* Technip Energies Rated New Buy at SocGen; PT 15.70 euros (+)
* UK Commercial Property Rated New Add at Peel Hunt; PT 80 pence

>>> Call
* Belimo FY Results ‘Solid’ Though Outlook Subdued, ZKB Says (+)
* Citi Now Bearish on Diversified Chemicals, Covestro Cut to Sell
* Flutter Gets Street-High PT at Jefferies on U.S. Growth Scope
* LSE’s Disclosure is ‘Poor,’ Citi Says After Record Stock Plunge (+)
* Nokia Upgraded to Accumulate at OP as ‘Gloom’ Priced In (+)
* Renault PT Raised at Deutsche Bank, ‘Right Steps’ for Turnaround (+)
* Roche U.S. Bladder Cancer Withdrawal ‘Not Important:’ Vontobel (+)

FT : Deliveroo reveals narrowing losses ahead of IPO

Deliveroo reveals narrowing losses ahead of IPO
Food delivery company posts £224m in losses despite 54% revenue growth during pandemic year

Deliveroo has unveiled plans for its London stock market debut as it revealed 54 per cent growth in sales but losses of £224m in 2020. 

The Amazon-backed online food ordering company announced its intention to float on Monday, suggesting that its shares are likely to begin trading by early April. 

The filing includes details of a dual-class share structure that would give Will Shu, Deliveroo’s co-founder and chief executive, 20 votes a share, while every other shareholder will have a single vote for each share. The structure will expire three years after the listing. 

London-based Deliveroo has privately targeted a valuation of as much as $10bn (£7.2bn), people briefed on internal discussions told the Financial Times last week. 

Monday’s filing revealed that more than 6m people order from over 115,000 restaurants and stores through Deliveroo every month. Its gross transaction value — primarily made up of customers’ spending — rose 64 per cent to £4.1bn in 2020. 

A Deliveroo spokesperson said that net revenues — mostly consisting of fees charged to restaurants and consumers — were £1.2bn in 2020, up 54 per cent on the previous year.

That included net revenue growth of 65 per cent to £599m in the UK and Ireland last year, suggesting that Deliveroo outpaced its more established rival Just Eat to gain share in its home market. 

The company said growth was driven by increased customers and more frequent usage, as the coronavirus pandemic drove many people to try online deliveries for the first time. Even when lockdown rules were lifted and people could visit restaurants, Deliveroo said it “continued to see very strong user engagement and order frequency”. 

Deliveroo narrowed its underlying losses over the previous year by 29 per cent to £223.7m in 2020. However, it warned prospective investors that it would continue to prioritise expansion over profitability, saying it “remains focused on investing in driving growth in a nascent online food market”. 

“Our ambitions have increased as we start to truly understand and execute on the opportunity in front of us in online food,” said Shu. 

Deliveroo was profitable for two quarters of 2020 after adjusting for finance costs, tax, depreciation, amortisation, stock options costs and other one-off items. 

However, the fact that the eight-year-old company did not come closer to overall profitability during a boom year for food delivery may raise questions from prospective investors about its longer-term business model. 

Deliveroo intends to use the proceeds from its initial public offering to support expansion of its “Editions” kitchens, which cater only to delivery customers and do not allow in-house diners, as well as initiatives including on-demand groceries, through partnerships with supermarkets such as Waitrose, Aldi and Co-op. 

Deliveroo plans to pay out £16m to its couriers in bonus payments after the IPO. It is also reserving £50m worth of shares for private investors who are also customers of its services. 

Goldman Sachs and JPMorgan Cazenove are Deliveroo’s joint global co-ordinators.

>>> Stoxx 600 Pre-Market Indications

  • Carnival Plc (POH1 TH) +6.8%
  • Ryanair (RY4C TH) +5.5%
  • Nibe (NJBC TH) +4.7%
  • Rio Tinto (RIO1 TH) +4.6%
  • TUI (TUI1 TH) +4.2%
  • Rolls-Royce (RRU TH) +3.9%
  • BP (BPE5 TH) +3.4%
    • Watch European Energy Shares After Key Saudi Site Was Attacked
  • Imperial Brands (ITB TH) +3.3%
  • Nel (D7G TH) +3.2%
  • Lufthansa (LHA TH) +3.1%
  • Prosus (1TY TH) -0.7%
    • Deliveroo Kicks Off London IPO, Bolstering a Busy U.K. Market
  • Fortum (FOT TH) -0.8%
  • Mowi (PND TH) -0.9%
  • Equinor (DNQ TH) -1.1%
  • Covestro (1COV TH) -1.2%
    • Citi Now Bearish on Diversified Chemicals, Covestro Cut to Sell
  • Qiagen (QIA TH) -2.2%

>>> TradeGate Pre-Market Indications

DAX:
  • Infineon (IFX TH) +2.1%
  • VW (VOW3 TH) +1.8%
    • VW Considers Turning Spanish Factory Into Electric-Car Hub
  • Deutsche Bank (DBK TH) +1.4%
  • E.On (EOAN TH) +1.4%
  • Vonovia (VNA TH) +1.3%
  • Covestro (1COV TH) -1.2%
    • Citi Now Bearish on Diversified Chemicals, Covestro Cut to Sell
MDAX:
  • Hochtief (HOT TH) +2.8%
  • Hugo Boss (BOSS TH) +2.8%
    • Long-Term Growth Outlook Key for European Fashion Retail: RBC
  • Aixtron (AIXA TH) +2.6%
  • Lufthansa (LHA TH) +2.2%
  • Zalando (ZAL TH) +2.1%
  • Qiagen (QIA TH) -1.4%
SDAX:
  • LPKF (LPK TH) +5.1%
  • Hornbach Baumarkt (HBM TH) +4.1%
    • CORRECT: Siemens Energy to Replace Beiersdorf in DAX Index
  • CropEnergies (CE2 TH) +3.8%
  • Global Fashion Group (GFG TH) +3.4%
  • Nordex (NDX1 TH) +2.8%
  • Sixt (SIX2 TH) -1.3%
    • European Firms Eyeing Sales Surge Shake Off State Loan Shackles
  • Corestate (CCAP TH) -1.8%
  • SNP Schneider-Neureither (SHF TH) -2.3%