>>> Europe : Brokers Upgrades & Downgrades - 28th August 2020 - V2(+)

>>> Up
* Adevinta Raised to Buy at Danske Bank Markets; PT 190 kroner
* Clasquin Raised to Strong Buy at Portzamparc; PT 35 euros (+)
* Duerr Raised to Buy at Baader Helvea; PT 34 euros
* Global Fashion Group Raised to Overweight at Morgan Stanley
* Ice Group Raised to Overweight at Barclays; PT 20 kroner
* Prysmian Raised to Overweight at JPMorgan; PT 27.50 euros
* UBM Development PT Raised to 47 euros at M.M. Warburg (+)

>>> Down
* Adidas Cut to Sell at M.M. Warburg (+)
* Aeroports de Paris Cut to Hold at Deutsche Bank; PT 90 euros
* Alcon Cut to Sell at SocGen
* Cassiopea Cut to Hold at Research Partners; PT 60 Swiss francs
* Figeac Aero to Cut 320 Jobs at Main French Site
* Fraport Cut to Hold at Deutsche Bank; PT 35 euros
* Lundbergforetagen Cut to Sell at Handelsbanken; PT 364 kronor
* Stratec Cut to Sell at M.M. Warburg (+)
* Thyssenkrupp Cut to Underweight at Morgan Stanley
* Workspace PT Cut to 590 pence from 700 pence at Berenberg

>>> Initiation


>>> Call
* Adidas Recovery Faces Growing Risks, Warburg Says in Downgrade (+)
* Bayer Settlement Concerns Look Like ‘Sabre Rattling’: Berenberg (+)
* Berenberg Sees Positive Catalysts For London Office Developers
* Fraport, ADP Cut at Deutsche Bank on Weaker Post-Pandemic View (+)
* Siemens Gamesa’s Onshore Turnaround Remains Key, Analysts Say (+)
* Thyssenkrupp Execution Risk High, Downgraded at Morgan Stanley

FT : Norwegian Air warns bailout will not be enough

Norwegian Air warns bailout will not be enough
Imposition of Covid-19 related quarantines across Europe has dashed carrier’s recovery hopes

Norwegian Air Shuttle warned it needed another rescue package only months after the low-cost airline secured a massive debt-for-equity swap backed by Norway’s government.

Europe’s third-largest low-cost airline on Friday said that it had cut its pre-tax losses by half in the second quarter compared with the first three months of 2020.

But chief executive Jacob Schram cautioned that a NKr3bn ($340m) loan guarantee from Norway’s government, unlocked by a NKr15bn debt-for-equity swap involving aircraft leasing companies and the carrier’s bondholders, was unlikely to be sufficient.

“Given the current market conditions it is not enough to get through this prolonged crisis,” he said on Friday.

Airlines are facing their biggest-ever crisis after coronavirus prompted countries to close their borders in an effort to curb its spread. Norwegian’s passenger numbers collapsed by 99 per cent in the second quarter. Its hopes of demand recovering over the summer have been dashed by Norway’s government reimposing quarantine requirements on travellers from countries such as Germany, Spain, the UK, and France.

Governments worldwide are propping up airlines but Norway’s was initially reluctant to with Norwegian as it entered the crisis with one of the highest debt loads of any airline due to ill-fated expansion plans in recent years, particularly into low-cost, long-haul travel.

Norwegian warned on Friday that it needed additional working capital by the start of 2021 to remain solvent and suggested it could be achieved through a fresh capital increase, selling or refinancing assets, or fresh loans.

“Although the company believes there are reasonable prospects to resolve potential defaults and obtain necessary working capital, there is a significant risk that the company becomes insolvent and enters into bankruptcy if, inter alia, the company is not able to reach an agreement with its creditors, access to working capital and regain normalised operations,” it said in a statement.

Norwegian’s directors said that there was a “material uncertainty that casts significant doubt upon the company’s ability to continue as a going concern” but said that after making inquiries they had a “reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future”.

>>> Europe : Brokers Upgrades & Downgrades - 28th August 2020 - V2(+)

>>> Up
* Adevinta Raised to Buy at Danske Bank Markets; PT 190 kroner
* Clasquin Raised to Strong Buy at Portzamparc; PT 35 euros (+)
* Duerr Raised to Buy at Baader Helvea; PT 34 euros
* Global Fashion Group Raised to Overweight at Morgan Stanley
* Ice Group Raised to Overweight at Barclays; PT 20 kroner
* Prysmian Raised to Overweight at JPMorgan; PT 27.50 euros

>>> Down
* Aeroports de Paris Cut to Hold at Deutsche Bank; PT 90 euros
* Alcon Cut to Sell at SocGen
* Cassiopea Cut to Hold at Research Partners; PT 60 Swiss francs
* Figeac Aero to Cut 320 Jobs at Main French Site
* Fraport Cut to Hold at Deutsche Bank; PT 35 euros
* Lundbergforetagen Cut to Sell at Handelsbanken; PT 364 kronor
* Thyssenkrupp Cut to Underweight at Morgan Stanley
* Workspace PT Cut to 590 pence from 700 pence at Berenberg

>>> Initiation


>>> Call
* Berenberg Sees Positive Catalysts For London Office Developers
* Fraport, ADP Cut at Deutsche Bank on Weaker Post-Pandemic View (+)
* Siemens Gamesa’s Onshore Turnaround Remains Key, Analysts Say (+)
* Thyssenkrupp Execution Risk High, Downgraded at Morgan Stanley

>>> Stoxx 600 Pre-Market Indications

  • AstraZeneca (ZEG TH) +1.3%
    • Astra Covid-19 Vaccine May Not Be Ideal, But Much Easier to Ship
  • TUI (TUI1 TH) -1.4%
  • Thyssenkrupp (TKA TH) -1.6%
    • Thyssenkrupp Execution Risk High, Downgraded at Morgan Stanley
  • Prosus (1TY TH) -1.6%
  • Fraport (FRA TH) -1.7%
    • Fraport, ADP Cut at Deutsche Bank on Weaker Post-Pandemic View

>>> TradeGate Pre-Market Indications

DAX:
  • Infineon (IFX TH) +1.3%
  • Bayer (BAYN TH) -0.8%
    • Bayer’s $11 Billion Deal Risks Partial Collapse, Judge Says (2)
MDAX:
  • Evonik (EVK TH) +1.3%
  • Thyssenkrupp (TKA TH) -1.4%
    • Thyssenkrupp Execution Risk High, Downgraded at Morgan Stanley
  • Fraport (FRA TH) -2.1%
    • Fraport, ADP Cut at Deutsche Bank on Weaker Post-Pandemic View
SDAX:
  • Steinhoff (SNH TH) +5.6%
  • Suedzucker (SZU TH) -0.8%

>>> Europe : Brokers Upgrades & Downgrades - 28th August 2020

>>> Up
* Adevinta Raised to Buy at Danske Bank Markets; PT 190 kroner
* Duerr Raised to Buy at Baader Helvea; PT 34 euros
* Global Fashion Group Raised to Overweight at Morgan Stanley
* Ice Group Raised to Overweight at Barclays; PT 20 kroner
* Prysmian Raised to Overweight at JPMorgan; PT 27.50 euros

>>> Down
* Aeroports de Paris Cut to Hold at Deutsche Bank; PT 90 euros
* Alcon Cut to Sell at SocGen
* Cassiopea Cut to Hold at Research Partners; PT 60 Swiss francs
* Figeac Aero to Cut 320 Jobs at Main French Site
* Fraport Cut to Hold at Deutsche Bank; PT 35 euros
* Lundbergforetagen Cut to Sell at Handelsbanken; PT 364 kronor
* Thyssenkrupp Cut to Underweight at Morgan Stanley
* Workspace PT Cut to 590 pence from 700 pence at Berenberg

>>> Initiation


>>> Call
* Berenberg Sees Positive Catalysts For London Office Developers
* Thyssenkrupp Execution Risk High, Downgraded at Morgan Stanley

>>> What to look at today -28th of August 2020

Japanese stocks tumbled and the yen rose after a report that Prime Minister Shinzo Abe will resign due to health reasons. Treasury yieldsjumped after Jerome Powell said the Federal Reserve will remain accommodative and shift to a more relaxed approach on inflation.
Japan’s benchmark Topix Index fell as much as 1.6% before paring losses, while the yen climbed as much as 0.4% against the dollar, after broadcaster NHK said Abe would explain his reasons for a resignation at a news conference later Friday.
Meanwhile, yield curves steepened in Asia along with U.S. Treasuries after Powell said the Fed will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots. Australia’s 10-year bond yield breached 1% for the first time since June as other sovereign notes fell.
U.S. and European stock futures rose along with most Asian equities. The S&P 500 on Thursday reached a fresh all-time high. The Nasdaq Composite also set a record before closing in the red. The dollar retreated, erasing Thursday’s advance.
US After Hours ULTA +15.7%, WDAY +12%, HPQ +3.4 up on earnings; NTNX +16.4% up on Bain investment; OKTA -4.3%, GPS -2.8%, MRVL -1%, VMW -1% lower on earnings

Nikkei -1.40% Hang Seng +1.10% CSI +1.10% Shanghai +0.45% Shenzen +0.86%

Eur$1.1871 CNH 6.8718 CNY 6.8765 JPY 106.20 GBP 1.3264 CHF 0.9058 RUB 74.6564 WTI$ 43.02 -0.05%

S&P +0.54% Nasdaq +0.34% EuroStoxx +0.48% FTSE +0.38% Dax +0.51% SMI +0.05%

Macro :
- Merkel Calls on Germans to Avoid Virus-Hit Areas Including U.S.
- Fund Flows to Stocks Recover, Quicken Into Bonds, Citi Says
- European Equities Set For Pain if Euro’s Advance Nears $1.30
- Gold Advances as Investors Weigh Fed’s New Approach on Inflation
- German Sept. GfK Consumer Confidence -1.8; Est. +1 (Table)

Keep an eye on :
- ACKB BB : Ackermans First Half Net Income EU56.3 Mln
- AIR FP : Boeing Said to Pull Eight Dreamliners Due to Structural Problems
- BAYN GY : Bayer’s $11 Billion Deal Risks Partial Collapse, Judge Says (2)
- BMPS IM : ECB Tells Paschi to Boost Capital for Approval on Bad Loans Deal
- BC IM : Brunello Cucinelli 1H Ebitda Loss Narrower Than Est.
- CWR LN : Ceres Power a New Best Idea Long at Hedgeye; Sees 300% Upside
- DOF NO : Akastor Takes Control Over DOF Deepwater in Restructuring Deal
- EPG LN : EP Global Opportunities Trust Rated New Sell at Investec
- EUCAR FP : Hertz Seeking Up to $1.5 Billion In Bankruptcy Financing
- GLEN LN : Glencore in Talks to Sell Entire Mine Stake to Zambia: Reuters
- HAL NA : HAL First Half Revenue EU2.37 Bln
- MC FP : L Catterton Prepares IPO of Leslie’s Poolmart: Reuters
- NAS NO : Norwegian Air 1H Pretax Loss NOK4.8B vs Loss NOK1.9b Year Ago
- NAS NO : Norwegian Air Says Its Bailout Won’t Be Enough to Survive Crisis
- PTEC LN : Playtech Confirms in Talks on Sale of TradeTech Unit
- RNO FP : How a Powerful Nissan Insider Tore Apart Carlos Ghosn’s Legacy 
- ROG SW : Baxalta Suit Over Roche’s Hemlibra Revived by Appeals Court
- ROG SW : Roche Reports FDA Approval of Foundation Medicine’s Tumor Test
- SAN FP : Sanofi to Start Offer for Purchase of Principia Biopharma
- SGRE SM : Siemens Gamesa’s U.K. Unit to Benefit from Blade Expansion Plan
- SIFG NA : SIF First Half Ebitda EU11.5 Mln, -9.4% Y/y
- GLE FP : SocGen’s Oudea Expects Lower Cost of Risk in Second Half
- TIT IM : Italy, Telecom Italia to Create National Broadband Company
- VOW3 GY : German Auto Supplier Hella Said to Seek Buyer for Software Unit
- VOw3 GY : VW Targeting at Least EU1b Green Bond Sale in Sept.: DJ
- WDI GY : Administrator Finds Wirecard Has EU428m of Assets: Sueddeutsche
- ZUGN SW : Zug Estates First Half Ebit CHF12.9 Mln, -61% Y/y

>>> US After Hours Summary: ULTA +15.7%, WDAY +12%, HPQ +3.4 up on

After Hours Summary: ULTA +15.7%, WDAY +12%, HPQ +3.4 up on earnings; NTNX +16.4% up on Bain investment; OKTA -4.3%, GPS -2.8%, MRVL -1%, VMW -1% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: NTNX +16.4% (also announces Bain Capital will invest in $750 mln in convertible notes; also CEO to retire), ULTA +15.7%, WDAY +12%, VEEV +3.7%, HPQ +3.4%, PAGS +3.3%, MBUU +2.8%, DELL +1.6%, OLLI +0.5%

Companies trading higher in after hours in reaction to news: QEP +12.7% (receives expected AMT tax credit refund), SPNE +3.8% (commercial launch of Shoreline RT Cervical Interobdy Implant Symptom), BIG +3.7% (announces a $500 mln share repurchase authorization), GAN +3.4% (deal with CHDN to be platform for CHDN's Internet sports betting and Internet casino gaming business), BKI +1.1% (acquires DocVerify), COTY +0.4% (stock offering), LRCX +0.1% (increases dividend), NXRT +0.1% (says its properties in Houston area did not sustain material damage from Hurricane Laura), MPLX +0.1% (files mixed securities shelf offering), EGP +0.1% (increases dividend), AMZN +0.1% (launches first Amazon Fresh grocery store)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BILL -5.7%, OKTA -4.3%, GPS -2.8%, MRVL -1%, VMW -1%

Companies trading lower in after hours in reaction to news: NIO -5.8% (announces commencement of 75 mln ADS offering), PLT -4.8% (announces partial exit of investment by Siris Capital), PCG -0.7% (provides update on power restoration from CA wildfires), FCAU -0.3% (remains part of probe into union corruption, according to CNBC), F -0.2% (remains part of probe into union corruption, according to CNBC), KMI -0.1% (announces commercial in-service of final Movable Modular Liquefaction unit)