>>> What to look at today - 19th of February 2021

Stocks were mixed and U.S. equity futures edged lower Friday after a decline on Wall Street as investors mulled the impact of the recent climb in Treasury yields on the market outlook. Oil added to recent losses.
A gauge of global shares headed for its first weekly fall since January, with Australia lagging in Asia while South Korea outperformed. S&P 500 futures dipped after the index declined Thursday. European contracts pointed higher.
A report showing U.S. initial jobless claims rose more than expected underlined the challenges for the recovery from the pandemic. Ten-year Treasury yieldsheld an advance. The dollar fluctuated.
Japan’s 10-year sovereign bond yield rose to the highest in more than two years amid the global debt selloff. The pound stabilized after a rally driven by optimism over the U.K. vaccine rollout. Bitcoin fell back below $52,000. Copper extended a rise to a nine-year high.
US After Hours AMN +8.2%, AMAT +4.4%, GLOB +4.2% higher on earnings; RXT -10.1%, DBX -3.3% lower on earnings

Nikkei -0.72% Hang Seng -0.295 CSI +0.15% Shanghai +0.51% Shenzen +0.67%

Eur$ 1.2094 CNH 6.4598 CNY 6.4664 JPY 105.64 GBP 1.3975 CHF 0.8964 RUB 73.9124 TRY 6.9870 WTI$ 59.68 -1.39% GOLD $ 1,771.91 -0.21% BTC 51,161 -225pts

S&P -0.05% Nasdaq -0.05% EuroStoxx +0.41% FTSE +0.02% Dax +0.47% SMI

Macro :
- Gloal Equities See Longest Inflow Streak Since 2017: Jefferies
- France’s Veran Says Too Risky to Ease Restrictions Now
- Bitcoin Nears $1 Trillion Value as Crypto Jump Tops Other Assets
- Goldman Sees Limited Global Oil Price Impact From U.S. Freeze
- U.K. Creates $1.1 Billion Agency to Fund ‘High-Risk’ Science

Keep an eye on :
- AF FP : Air France-KLM Wants Fair Deal With EU on Rescue Plan, CFO Says
- AKH NO : Aker Horizons Plans to List Clean Hydrogen Company in Oslo
- ALV GY : Allianz Sees 2021 Operating Profit EU11B to EU13B, Est. EU12.26B
- AUSS NO : Austevoll Seafood 4Q Ebit Beats Estimates
- BAYN GY : Bayer Fails to Win Approval for PCB Settlement Once Again
- BEFB BB : Befimmo 2021 Adjusted EPS Forecast Misses Estimates
- BESI NA : BE Semiconductor 4Q Gross Margin Misses Estimates
- BMW GY : Livent Reaches Multi-Year Deal With BMW on Lithium Supplies
- BW NO : BW Offshore 4Q Operating Revenue Beats Estimates
- CABK SM : CaixaBank Proposes New Management Committee, Led by CEO Gortazar
- CMBN SW : Cembra Money Bank FY Net Income Misses Estimates
- BN FP : Danone CEO Under Pressure After First Sales Decline in 30 Years
- GFC FP : Gecina FY Recurrent Net Per Share Beats Estimates
- GTT FP : GTT FY Ebitda EU242.7M
- ENI IM : Eni 4Q Adjusted Net Beats Estimates
- FII FP : LISI FY Ebitda Beats Estimates
- FUR NA : Fugro FY Adjusted Ebitda Beats Estimates
- RMS FP : *HERMES 4Q SALES RISE 15.6% AT CONSTANT FOREX, EST. +8.7%
- LSG NO : Leroy 4Q Adjusted Ebit Beats Estimates
- LHA GY : Italy’s New Alitalia Plan Said to Involve Lufthansa: Repubblica
- MONC IM : Moncler FY Revenue Beats Estimates
- NEOEN FP : Neoen FY Revenue Misses Estimates
- NDA SS : Finnish FSA Applies Sweden’s Risk Weight Floor for Home Loans
- REC NO : REC Silicon 4Q Ebitda $1.9M Vs. $17.9M Q/q
- REMEDY FH : Remedy Entertainment Offers Up to 1m Shares, Remedy Entertainment Offering Prices at EU41.50/Share
- RNO FP : Renault 2H FCF Seen Improving, Outlook in Focus: Preview
- RNO FP : Renault Warns of Difficult Year After Posting Record Loss
- SEM PL : Sodim Bids EU11.4/Share For Remaining Stake in Semapa
- SIG LN : Carlyle Confirms It Does Not Plan Offer for Signature Aviation
- SIKA SW : Sika FY Ebit Beats Estimates
- SREN SW : Swiss Re FY Net Loss $878M, Est. Loss $456.4M
- TKTT FP : Tarkett FY Adj. Ebitda Beats Est., to Repay State-Backed Loan
- TIT IM : *TELECOM ITALIA STILL WORKING ON SLATE OF CANDIDATES FOR BOARD
- FR FP : Valeo Sees 2021 Ebitda of EU2.25B-EU2.45B
- VOW3 GY : VW Mulling Porsche Listing Signals Auto Upheaval Just Starting

FT : Too early to call a commodities supercycle

Too early to call a commodities supercycle
Most of the factors driving the recent bull market are temporary in nature

The sharp rise in commodity prices from the depths of the Covid-19 lockdown is fuelling talk of a commodities supercycle with the greening of the global economy replacing fast-paced Chinese industrialisation as the structural driver of demand.

But we think caution is warranted.

The long history of commodity markets shows that supercycles take from 20 to 70 years from peak to peak. The last one followed the transformation of China in the mid-1990s and is still not fully spent in our opinion. These long swings are caused by insufficient investment in capacity and therefore the booms are spaced out.

Supercycles are not easy to distinguish and should only be called after careful analysis. The recent commodity bull market has been fed by several forces and we believe that most of these are temporary in nature and are insufficient to drive a supercycle.

The first and most obvious driver is the robust recovery in China. This was largely down to a Rmb 6tn fiscal stimulus package — equivalent to 6 per cent of GDP — that was disproportionately poured into the commodity guzzling construction sector. We do not expect stimulus on that scale to be repeated by China in coming years.

Moreover, China’s new dual circulation strategy, focused on cutting its dependence on overseas markets, aims to transition its economy to one driven by consumption. That will lead commodity demand growth to slow. 

The second factor driving the rally in commodity prices and equity markets more broadly is vaccine driven optimism. A belief that 2021 will be a year of recovery for the world outside of China. Panglossian views cannot drive a supercycle.

Third, investors fearful of higher inflation are shifting assets into gold and copper as a hedge. Markets expect large-scale pandemic stimulus to give rise to inflationary pressure. Particularly in the US, where if president Joe Biden’s latest package passes Congress, total pandemic stimulus would reach $5tn, or 25 per cent of GDP.

These are big numbers but as Janet Yellen has said, the Fed has tools to deal with inflation. We believe they will use them. Our view is that inflation fears are premature, and not enough to drive a supercycle. Although those who grew up in the 1970s, seeing inflation and commodity price rise together might disagree. 

Finally, metals prices are being buoyed by expectations that climate ambition will turn into action in the run-up to the UN climate meeting, COP 26, in November.

Decisive climate policy has the potential to supercharge the demand for key metals, such as copper, nickel, lithium and cobalt. Those materials are necessary to build low carbon infrastructure, such as solar panels, wind turbines, electric vehicles and charging stations. But only when concrete policies are announced on the energy transition can we be more confident of large scale demand growth. 

Commodity prices are driven by supply as well as demand. It is true that on current projections, there will be sizeable supply gaps in some mining commodities by 2030. In copper and battery grade nickel, we estimate the deficits are around 20 per cent.

Finance remains a challenge for the mining industry, where environmental, social and governance monitoring has intensified. However, large mining companies could potentially sidestep these barriers if consumers continue to buy their products, particularly if these products are needed to support a greener lifestyle.

If the consequence of environmental pressure, populism and supply chain security concerns is for governments to take a greater interest of mines and plants, this does not bode well for the ability to remove excess supply or lossmaking capacity. 

Climate action is the only factor that has the potential to drive a multiyear commodity price rally. But a lot must be said and done before that materialises. It is too early to call a supercycle. Commodity producers, investors, and financiers would do well to take heed.

>>> Europe : Brokers Upgrades & Downgrades - 19th of February 2021

>>> Up
* 1&1 Drillisch Raised to Buy at Stifel
* Aixtron PT Raised to 22 euros from 14 euros at Deutsche Bank
* Commerzbank Raised to Outperform at KBW; PT 7 euros
* Datagroup Raised to Buy at Berenberg; PT 75 euros
* ERG Raised to Buy at Citi; PT 28.30 euros
* L'Oreal Raised to Hold at LBBW; PT 305 euros
* Moncler Raised to Buy at SocGen; PT 59 euros
* Repsol Raised to Equal-Weight at Morgan Stanley; PT 10 euros

>>> Down
* B&M European Cut to Equal-Weight at Barclays; PT 550 pence
* BioMerieux Cut to Sell at Berenberg; PT 110 euros
* IAG Cut to Add at AlphaValue
* Neste Cut to Hold at Berenberg; PT 58 euros
* SGS Cut to Neutral at JPMorgan; PT 2,900 Swiss francs
* Stratec Cut to Hold at Berenberg; PT 130 euros

>>> Initiation
* TP ICAP Re-Initiated Buy at Peel Hunt; PT 270 pence
* VW Rated New Buy at Stifel; PT 95 euros

>>> Call
* ERG’s Renewable Transition Not Priced In, Citi Upgrades to Buy
* Nel at More Attractive Entry Point After Sector Selloff: Citi
* RWE Hit From Texas Weather Comes at Inopportune Time, RBC Says

FT : Millennium emerges as top hedge fund investor in Spacs

Millennium emerges as top hedge fund investor in Spacs
Izzy Englander’s group had more than $4.4bn in blank-cheque companies at end of 2020

Izzy Englander’s Millennium Management increased its investments in blank-cheque companies almost six-fold last year as hedge funds poured tens of billions of dollars into Wall Street’s hottest investment product. 

The New York-based group, which has $47bn under management, had $4.4bn invested in special purpose acquisition companies as of December, up from $750m at the end of 2019, making it the top hedge fund buyer of such vehicles, according to data compiled by Spac Research.

Hedge funds have embraced Spacs because they see the investments as having limited risk — and huge potential upside. Backers can park cash in the vehicles for up to two years, accumulating interest, while receiving warrants that can be converted into relatively low-priced shares once a blank-cheque company merges with another business.

Institutional funds had $82.4bn in Spacs at the end of the fourth quarter, compared with $22.7bn a year earlier, according to Spac Research. The number of funds with at least $100m invested in Spacs rose to 160 at the end of 2020 from 58 in 2019, according to a Financial Times analysis of the data.

Spac Research compiles the data based on quarterly 13F filings with the Securities and Exchange Commission from companies with at least $100m in equity holdings. 

Michael Klausner, a professor at Stanford Law School who has studied Spacs, called them “an enormous gold mine” for hedge funds. “It offers an investment with no downside whatsoever and a free warrant in a company to be designated later.”

Blank-cheque company listings are on track to surpass a record year of fundraising in 2020. Spacs have raised $42.7bn in the first six weeks of 2021, more than half the $79bn they raised last year, according to Refinitiv. By comparison, such vehicles raised $14bn in 2019.

The flurry of launches has raised concerns about a Spac bubble, with David Solomon, the chief executive of Goldman Sachs, saying the pace of listings is unsustainable. There are mounting concerns that the abundance of listings will make it difficult for Spacs to find targets within their two-year timeline as competition for good companies increases.

The robust trading in Spacs themselves was on display this week when investors pushed up prices for Star Peak Energy, one of two blank-cheque companies started by Magnetar Capital, an Illinois-based hedge fund.

Shares in Star Peak, worth as little as $36.46 last week, rose to almost $50 this week as winter storms in the central US drew attention to its announced merger target, the energy storage company Stem.

Magnetar, which has more than $12bn in assets, was also the second-biggest hedge fund investor in Spacs, increasing its holdings to $2.9bn at the end of last year from $751m in 2019.

FT : Alpine skiing industry faces uphill battle after reopening U-turn

Alpine skiing industry faces uphill battle after reopening U-turn
Economies reliant on winter sports continue to suffer lockdown misery as most resorts stay shut

As a fresh covering of snow brought ideal skiing conditions to the Alpine resort of Piani di Bobbio last weekend, facilities manager Massimo Fossati eagerly anticipated the arrival of the first visitors in nearly a year. 

Italy’s government had given the go-ahead for the skiing industry to reopen on February 15, raising hopes of a return to normality after 11 months scarred by the coronavirus pandemic. Those hopes were dashed by a last-minute U-turn from Mario Draghi’s new administration, which postponed the reopening over fears of emerging virus variants and a spike in infections.

“We’d bought a machine to sanitise the ski lifts after each ride, software to manage queues and tens of thousands of litres of diesel,” said Fossati. “We were devastated and angry when we were told on Sunday evening that we couldn’t reopen on Monday morning. We’d already sold 9,000 ski passes for the week and spent more than €100,000.”

Alpine ski resorts became a symbol of the virus’s arrival in Europe this time last year, as the pathogen was unknowingly passed from person to person in busy apres ski bars and restaurants by revellers who would later spread it across the continent.

Reopening resorts would have shown Europe was finally able to move on from the worst of the crisis. That most remain firmly closed is a stark illustration of the difficulties that lie ahead as countries seek to quash the virus and reopen their battered economies.

In Italy, the winter sports industry generates about €7bn annually and employs 120,000 seasonal workers, said Valeria Ghezzi, president of Anef, an association for ski facilities operators.

Yet Fossati said Piani di Bobbio’s lift operators, restaurateurs, bar owners and hoteliers — already mourning the loss of most of the €8m they make annually — would be reluctant to plan for a possible reopening next month. “I dare anyone to invest more money in this uncertainty,” he added.

Elsewhere in the Alps, the Swiss and Austrian governments have taken a different approach to safeguarding a vital economic sector, while France has adopted a stance more akin to Italy and extended closures until at least the end of the month.

The hopes of the French skiing industry have been repeatedly dashed since its resorts were closed midseason in March last year, and hopes of a restart before the end of the current season are ebbing fast.

The crisis is such that the National Association of Mayors of Mountain Resorts has warned of the “definitive and irreversible destruction” of the economic model that underpins 70 years of development in the mountains. 

The only consolation has been a resurgence of interest in activities that do not require ski lifts. At the resort of Saint-Martin-de-Belleville, rental shops quickly ran out of Nordic skis and snowshoes while a 2km beginners’ slope has been opened at Courchevel that can be accessed by car. 

President Emmanuel Macron has offered little comfort and rejected pleas to lift restrictions. Ski resorts were virus cauldrons where “people find themselves in large groups in the places they’ve rented, and we know that’s how people get infected,” he said late last year.

Indeed, Macron was so frustrated by the Swiss decision to keep their resorts open that he threatened “restrictive and dissuasive” measures to prevent French people crossing the border to take advantage.

In contrast to France and Italy, most of Switzerland’s ski infrastructure is open as normal. Lifts and runs are operating with only minor restrictions and the Swiss government has insisted that skiing poses minimal risk of spreading the virus.

A study last month by the Swiss Federal Laboratories for Materials Science and Technology concluded that transmission in enclosed cable cars was less likely than in other forms of public transport and far less likely than in office environments.

A countrywide lockdown on hospitality brought into force in January has, however, closed restaurants, bars and coffee shops, limiting the appeal of a day on the slopes to many, even if hotels remain open and the cableways are still running.

“Most people are not going to drive two or three hours to ski if you can’t get a cup of coffee or a decent meal,” said Laurent Vanat, a consultant specialising in the ski tourism economy.

Data from Swiss ski lift operators indicates that visitor numbers were down about a quarter month on month, Vanat said, though the economic impact on Alpine communities was likely to be proportionally far greater since much of the spending of winter tourists has been curbed. 

In Austria, where winter sports are estimated to support one in every 14 jobs, the political and economic pressures to keep resorts open have been huge. Yet, like others in the EU, its skiing industry has suffered significantly. Resorts used to accommodating as many as 1m guests in a season are currently reporting weekly hotel visitors in the low hundreds. 

The Ischgl resort in the Tyrol region became notorious as an epicentre for the virus when it arrived in Europe. A year on, fears that new variants were spreading in the region led Chancellor Sebastian Kurz to last week impose a travel ban that prohibits journeys out of the state without a negative Covid-19 test.

Walter Ricciardi, an adviser to Italy’s health ministry, has meanwhile blamed ski tourists travelling to Switzerland for spreading the new variants.

Such comments will do little to lift the gloom in Piani di Bobbio. Lodge owner Alessandro Mignone spent €30,000 preparing for last weekend’s reopening, hiring staff and buying gazebos and outdoor grills to feed his customers and avoid them gathering indoors.

“It feels like a prank. It snowed so much I can’t even return my orders,” he said.

Rome has pledged to support the winter sports industry, raising the prospect of government financial support. “I have filled my backpack with promises,” Fossati said. “I hope they won’t let us down again.”

>>> US After Hours Summary: AMN +8.2%, AMAT +4.4%, GLOB +4.2% higher on earnings

After Hours Summary: AMN +8.2%, AMAT +4.4%, GLOB +4.2% higher on earnings; RXT -10.1%, DBX -3.3% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CASA +24.4%, AMN +8.2%, ANET +6.5%, AXTI +6%, CMBM +5%, OPRT +4.5%, AMAT +4.4%, GLOB +4.2%, EBS +3%, ADC +3%, GLPI +1.5%, HBM +1.5%, TDS +1.3% (also increases dividend), AEE +0.8%, KNSL +0.8%, MMI +0.7%, VICI +0.5%, AJRD +0.3%, ROKU +0.2%, ROG +0.2% (also CFO to retire), GLPG +0.2%, CXP +0.1%, KEYS +0.1%

Companies trading higher in after hours in reaction to news: NVAX +7.4% (announces MOU with Gavi for 1.1 bln doses of COVID-19 vaccine), NGD +4.6% (provides operational outlook for New Afton Mine), MPW +2.1% (increases dividend), NOVA +1.2% (secures capacity position in ISO-New England Forward Capacity Auction), TRST +0.7% (approves 2 mln share repurchase program), VIAV +0.5% (new CFO), DK +0.3% (Icahn's CVR Energy (CVI) sent a letter demanding the right to inspect certain books and records), XEC +0.2% (increases dividend), AWK +0.1% (new COO), NGVT +0.1% (to add caprolactone polyol production at LA facility), CXP +0.1% (files mixed securities shelf offering)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ASPN -11.5%, CNDT -10.7%, RXT -10.1%, CENX -6.1%, QDEL -5.8%, EHTH -5.6%, APPN -5.4%, DBX -3.3%, RBA -3.3%, LTHM -3.1% (also announces supply agreement with BMW), CPRT -2.5%, PLNT -2.5%, TRIP -2.2%, BOOM -1.6%, TTD -1%, USM -0.9%, OEC -0.4%, ATR -0.3%, HST -0.3%, CVA -0.2%, COLD -0.1%, ED -0.1%, EVBG -0.1%

Companies trading lower in after hours in reaction to news: CLPT -4.1% (stock offering; also announces deal with Philips to commercialize the ClearPoint ‘Maestro' Brain Model), BNTC -2.7% (files $75 mln mixed securities shelf offering), TSLX -2.5% (stock offering), TWLO -2.4% (commences public offering of $1.0 bln of Class A common stock), MAR -0.3% (files mixed securities shelf offering), ESS -0.1% (increases dividend), CE -0.1% (declares force majeure due to extreme winter weather), FBK -0.1% (authorizes $100 mln stock repurchase program), MMP -0.1% (files mixed securities shelf offering)

>>> US Close Dow -0.38% S&P -0.44% Nasdaq -0.72% Russell -1.67%

Closing Stock Market Summary

The S&P 500 declined 0.4% on Thursday, although it was down as much as 1.2% in the morning. The Nasdaq Composite (-0.7%) and Dow Jones Industrial Average (-0.4%) also closed well off session lows, while the Russell 2000 (-1.7%) struggled throughout the session. 

The weak start was attributed primarily to profit-taking interest despite a downtick in long-term interest rates and the latest weekly jobless claims data supporting the case for additional fiscal stimulus. The 10-yr yield decreased one basis point to 1.29%; weekly initial claims increased by 13,000 to 861,000 (Briefing.com consensus 775,000).

Losses were relatively widespread with nine of the 11 S&P 500 sectors closing lower, but investors did appear to buy the dip in many areas of the market. The information technology sector, for example, declined 0.5% after being down 1.7% intraday, and the consumer discretionary (+0.1%) overcame a 1.1% intraday decline. 

Exceptions to the buy-the-dip activity were the S&P 500 energy sector (-2.3%), which closed near session lows, and Walmart (WMT 137.66, -9.54, -6.5%), which dropped 6.5% following its mixed earnings report and tepid FY22 EPS guidance.

The utilities sector (+0.6%), to its credit, traded higher for most of the session amid earnings-driven gains in Southern (SO 59.85, +0.58, +1.0%) and FirstEnergy (FE 34.25, +2.30, +7.2%). 

Twilio (TWLO 443.49, +31.84, +7.7%) was another earnings standout with an 8% gain that propped the stock to a fresh all-time high.  

In other corporate news, GameStop (GME 40.69, -5.25, -11.4%) fell another 11% amid the GME hearing on Capitol Hill, Coca-Cola (KO 50.77, +0.64, +1.3%) increased its quarterly dividend by one cent to $0.42/share, and Wells Fargo (WFC 36.96, +0.37, +1.0%) was upgraded to Neutral from Underweight at JP Morgan amid news that the Fed is getting closer to easing the company's asset restrictions. 

The 2-yr yield was unchanged at 0.10%. The U.S. Dollar Index decreased 0.4% to 90.56. WTI crude futures decreased 1.2%, or $0.70, to $60.42/bbl. 

Reviewing Thursday's economic data:

  • Initial jobless claims for the week ending February 13 increased by 13,000 to 861,000 ( consensus 775,000). Continuing claims for the week ending February 6 decreased by 64,000 to 4.494 million.
    • The key takeaway is that the upward thrust in initial jobless claims, which remain at extremely high levels, will continue to fuel calls to go big on the next stimulus package.
  • Housing starts declined 6.0% m/m in January to a seasonally adjusted annual rate of 1.580 million units (consensus 1.670 million). Building permits increased 10.4% m/m to 1.881 million (consensus 1.670 million).
    • The key takeaway is that there was a notable decline in single-unit starts (-12.2%) that will fail to provide relief for a tightly-supplied housing market, thereby keeping upward pressure on median home prices.
  • The Philadelphia Fed Index decreased to 23.1 in February (consensus 15.0) from an unrevised 26.5 in January.
  • Import prices increased 1.4% in January while import prices excluding oil increased 0.8%. Export prices increased 2.5% in January while export prices excluding agriculture increased 2.2%.

Looking ahead, investors will receive Existing Home Sales for January and the flash IHS Markit Manufacturing and Services PMIs for February on Friday.

  • Russell 2000 +12.3% YTD
  • Nasdaq Composite +7.6% YTD
  • S&P 500 +4.2% YTD
  • Dow Jones Industrial Average +2.9% YTD

FT : Nestlé: the water margin

Nestlé: the water margin
Turnround for Swiss group is underpinned by its disciplined M&A strategy

Nestlé knows how to run a pantry. The food multinational has decanted mass-market bottled water and canned congee, restocking the shelves with altogether more nutritious items such as vitamins and biopharmaceuticals.

The reshuffled portfolio — the result of 75 deals since 2017, turning over almost a fifth of its portfolio — tilts the Swiss group towards higher-margin products.

Water, one part of which has been sold to private equity for $4.3bn, garnered underlying trading operating margins of just 10 per cent last year. That is less than half those creamed off nutritional and health science. Petcare, with margins of 24 per cent and robust organic sales growth of 10 per cent last year, makes up a bigger share. 

All this marks a turnround for the Swiss group, which fell into the doldrums in 2017. And contrasts with French rival Danone where activists seek a revival. It is testament to Nestle’s disciplined M&A strategy.

Nestlé spurns the big, splashy transactions that proved such a millstone around the P&L of Reckitt Benckiser (see Mead Johnson), preferring smaller, easily digestible deals that leave more scope for growth. 

Bernstein estimates Nestlé’s deals alone will boost top line growth by 80 basis points in 2023, up from 35bp in 2019. The company itself is guiding for mid single-digit organic sales growth in the medium term, from 3.6 per cent last year, implying a lift of 140bp. 

The Swiss group has proved adept at building up flavours and formats and taking them global. This is the company that has launched hundreds of different flavours of KitKats in Japan.

It isn’t all sweet for the chocolatier. The strong Swiss franc plus disposals erased organic gains and more. On a reported basis, last year’s sales fell 8.9 per cent to SFr84.3bn ($94.1bn). Like Unilever, out-of-home sales fell as locked-down consumers stayed away from restaurants and kiosks.

The flipside of that — more Americans chowing down on packaged mac-and-cheese and Oscar Mayer frankfurters — can be seen in Kraft Heinz’s 6.5 per cent rise in organic sales. Still, Nestlé looks to have the more sustainable path to growth.

>>> US Gapping down

Gapping down
In reaction to earnings/guidance:

  • QTWO -9.3%, STMP -8.7%, AM -8.7%, NICE -8.5%, IQ -8.2%, SPWR -7.4%, SM -6.8%, GEL -6.3%, MD -6%, FSLY -5.7%, WMT -4.7%, UCTT -4.5%, ORAN -3.5%, VC -3.3%, SAM -3.1%, BCS -3%, ALB -2.8%, SNN -2.8%, RBBN -2.7%, AEL -2.6%, TROX -2.1% (also increases dividend by 14%), VTR -2%, CDE -1.7%, H -1.7%, ET -1.6%, HL -1.5%, TXG -1.4%, SNPS -1.3%, CS -1.2%, BIDU -1.1%, STNG -1%

Other news:

  • DPW -11.5% (announces that as of January 29, 2021, the Company had purchased an aggregate of 295,000 shares of common stock or 9.96% equity interest in NTN Buzztime)
  • SITM -8.4% (prices offering of 3,000,000 shares of its common stock at $127.00 per share)
  • MTEM -7% (prices public offering of 6.0 mln common shares at $12.65/share)
  • VERU -6.2% (prices offering of 6,451,613 shares of its common stock at $15.50 per share)
  • SI -4.5% (underwriters agreed to release up to 15% of common stock held by directors and executive officers)
  • BNTX -2.5% (BNTX and PFE publish results for BNT162b2 )
  • KAR -1.9% (to combine TradeRev and BacklotCars into single marketplace)
  • ZG -1.8% (files mixed securities shelf offering and enters into equity distribution agreement to sell up to $1 bln of Class C capital stock)
  • UGI -1.6% (to bring significant RNG supplies into its system)
  • BRP -1.4% (to acquire Medicare Help Now)
  • PDAC -1.3% (TechMet funded Li-Cycle entered into a definitive business combination agreement with Peridot Acquisition Corp)
  • MNSO -1.2% (to transform into a new retail platform, incubate more sub-brands)
  • YMAB -1.1% (prices offering of 2,439,025 shares of its common stock at $41.00 per share)
  • BGNE -1% (BGNE and Boston Immune enter into an option and license agreement)

Analyst comments:

  • FTI -4.6% (downgraded to Neutral from Buy at UBS)
  • KTOS -2.2% (downgraded to Neutral from Outperform at Robert W. Baird)