>>> Europe : Brokers Upgrades & Downgrades - 29th of January 20200 V2(+)

>>> Up
* 3i Raised to Overweight at Morgan Stanley; PT 1,300 pence
* Autoliv GDRs Raised to Hold at ABG; PT 715 kronor
* Banco BPM Raised to Buy at HSBC; PT 2.30 euros
* FirstGroup Raised to Hold at HSBC; PT 130 pence
* Lufthansa Raised to Buy at Berenberg
* Probi Raised to Hold at SEB Equities; PT 220 kronor
* Raisio Rated New Buy at SEB Equities; PT 4.30 euros
* Repsol Raised to Outperform at RBC; PT 15.50 euros
* Ryanair Raised to Hold at Berenberg; PT 14 euros
* TUI Raised to Buy at HSBC; PT 1,040 pence
* Whitbread Raised to Buy at HSBC; PT 5,200 pence
* William Hill Raised to Buy at HSBC; PT 230 pence

>>> Down
* Barry Callebaut Cut to Equal-Weight at Barclays
* Equinor Cut to Hold at Norne Securities; PT 180 kroner (+)
* Flutter Cut to Reduce at HSBC; PT 8,100 pence
* Grainger Cut to Neutral at Citi; PT 314 pence
* Greggs Cut to Reduce at HSBC; PT 2,000 pence
* Grifols Cut to Reduce at HSBC; PT 27 euros
* ITM Power Cut to Hold at Panmure Gordon; PT 104 pence
* Lenzing PT Cut to 60 euros from 80 euros at Berenberg
* Marston's Cut to Reduce at HSBC; PT 90 pence
* Restaurant Group Cut to Hold at HSBC; PT 150 pence
* Spar Nord Cut to Sell at SEB Equities; PT 60 kroner
* Stagecoach Cut to Reduce at HSBC; PT 125 pence
* Zealand Pharma ADRs Cut to Neutral at Kempen & Co; PT $38

>>> Initiation
* Idorsia Rated New Neutral at Goldman; PT 30 Swiss francs
* Merus BV Rated New Buy at Kempen & Co; PT $21
* Ubisoft Rated New Buy at SocGen; PT 83 euros

>>> Call
* Brewin Dolphin Trading Looks Good Compared to Peers, RBC Says (+)
* 3i Group Upgraded, Has Scope to Re-Rate, Morgan Stanley Says
* Ferragamo 4Q Sales in Line, But There Are Some Positives: MS
* Kone Already Priced in Some Thyssenkrupp Elevator Benefits: MS
* Lufthansa Top Europe Airline Pick, Ryanair Upgraded: Berenberg
* LVMH May Open Lower Given Stock Positioning Before 4Q Update: MS
* Repsol Double-Upgraded at RBC on Better Risk-Reward Than Peers
* Telia Shares Set to Outperform After Earnings: Handelsbanken
* Telenor 4Q Results ‘Solid Overall,’ Morgan Stanley Says (+)

FT : An inside guide to healthy living in Paris

An inside guide to healthy living in Paris
Pass by the patisseries and discover some of the city’s best options for keeping in shape

To stay healthy in Paris you need merely yield to the right temptations — choosing to walk or cycle in a city famously easy on the eye — while resisting the wrong ones.

These bad temptations include gorging on “nuns” (religieuses — the pastry kind) and drinking red wine to excess while discussing existentialism and complaining about your fellow Parisians, specifically their tendency to complain.

Step by step to a better life
The strikes and protests that have crippled Paris transport in recent weeks have exposed to visitors one of the city’s best-kept secrets: the French capital is small — small enough to walk across.

Smug residents of the 20 arrondissements within Paris’s ring road, the Boulevard Périphérique, already knew this, and many of us are accustomed to walking briskly or cycling across Paris to work or appointments. We do so not just because it’s healthy but because it’s often quicker and more comfortable, even in times of industrial harmony.

The strikes on buses, Métro lines and trains over president Emmanuel Macron’s planned pension reforms have made a necessity of virtue. The streets have been crammed with pedestrians, inhabitual cyclists, scooter-riders and, unfortunately, cars.

Still, I was surprised by the manageable walk times shown on a map published by Le Parisien in the depths of the public sector strikes. Almost everywhere you would want to go for business or pleasure, except the Palace of Versailles and the business district of La Défense — both of them beyond the périph — are within an hour’s walk of Châtelet, a transit hub in the centre of the city. From the Gare du Nord to the centre is just 30 minutes, and it is only another 35 to the Gare Montparnasse in the south.

There’s a catch, though: your journey on foot will inevitably take you past mouthwatering displays of food and drink in shop windows, especially the chocolateries and patisseries, so look away and keep walking.

Vive la bouffe . . .
Now, about that food and drink. Anyone who frequented Paris in the 1980s or the 1990s will be shocked at how much habits have changed — for the better if you are worried about your liver or your waistline, for the worse if you are an Epicurean.

It’s rare nowadays for politicians or chief executives to indulge in the sort of long, languid lunches I recall having with civil servants and bankers when I was a Reuters trainee in the Mitterrand era.

Even when such repasts do happen in the 21st century, the helpings will be mercifully small in a very un-American way, with the focus on taste and quality rather than quantity.

The French are not averse to fast food. British sandwich chain Pret A Manger has opened a huge shop around the corner from the FT office in the 8th arrondissement and France has long been one of the biggest markets for McDonald’s.

Chefs and winemakers, however, are increasingly obsessed with organic farming, while restaurants like to source ingredients from a known terroir, preferably French and in the home region of the owner.

France has not escaped the global obesity epidemic, but the self-discipline of Parisians and the focus on quality produce mean visitors still remark on the phenomenon Mireille Guiliano addressed 16 years ago, when she wrote French Women Don’t Get Fat.

. . . et le vin!
The same rule of quality over quantity applies to wine. It is unusual for anyone to have more than one glass of wine at lunch, and often Parisian executives have none. French wine consumption has plunged from 120 litres a year per person in the 1960s to less than 50 today, but the quality of the product has greatly improved in every region.

A British friend and longtime Paris resident told me how his French-educated children had criticised his embarrassing cross-Channel habit of pouring vast glasses of wine and chugging it like beer.

Speaking of beer, beware of the high alcohol content of brews such as the Belgian Affligem, which sometimes approaches that of wine. It only takes a couple of demis to make that crosstown walk home a bit harder than you expected.

And now to sweat it out
One drawback of Paris’s high population density is the lack of green space. The green spaces that do exist are either not very green — French garden designers do love their white gravel — or ban people from walking or sitting on what little grass there is.

For joggers and cyclists, the solutions are either the voies sur berges, the routes on either side of the Seine (in the city centre, motor vehicles are permanently excluded from both river banks) or the expansive woodlands of the Bois de Boulogne in the west and the Bois de Vincennes in the east.

Don’t forget the city’s numerous public swimming pools either — or their strict rules on types of bathing costumes to be worn to preserve hygiene and deter sexual predators. For women that means no monokinis or microkinis; for men, no baggy Bermuda shorts — the preference is for tight-fitting trunks.

One good option is the Piscine Joséphine Baker on the left bank in the 13th, but there are 40 other public pools listed by the Paris municipal government to choose from. The famous Molitor pool, dating from 1929, is now part of a private hotel and spa run by Accor.

Lastly, the city has a healthy number of public tennis courts, bookable online, including in the middle of the Jardin du Luxembourg, and a plethora of private yoga studios.

For someone who has lived in smoky New Delhi and smoggy Hong Kong, perhaps the best thing about Paris for me is that the air you breathe, whether eating or exercising, is remarkably clean. As I write this, the air-quality index app on my phone shows a reading of 18, well into the “good” green zone and better than I ever saw in either of those Asian cities.

Tonight perhaps I will drink a toast — modest in quantity and high on quality — to the healthiness of the French capital.

FT : German car sector’s electric awakening to jump start economy

German car sector’s electric awakening to jump start economy
Huge investment needed for shift to battery vehicles should help kick-start EU growth

In early 2017 a Volkswagen executive boasted about the German carmaker’s strategy to “leapfrog” Tesla, the US electric vehicle maker. “Anything Tesla can do, we can surpass,” said Herbert Diess, then head of the VW brand.

Since this bold prediction, things have not exactly gone to plan for Mr Diess, VW or the German car industry. Economists say the sector faces a “perfect storm” with deep ramifications for the eurozone economy, albeit one that could ultimately provide the seeds of a revival.

In recent years VW has been caught up in a huge scandal over its installation of “defeat devices” in millions of diesel cars to cheat limits on harmful exhaust emissions.

The scandal has cost VW, which owns the Audi and Porsche brands, well over €30bn in fines, legal fees and customer compensation. Other carmakers including BMW and Daimler have also been fined, although they have denied wrongdoing. Meanwhile, prosecutors have brought charges against several top VW figures including Mr Diess, who became chief executive in 2018.

Compounding the industry’s problems, global car sales and production have gone into reverse in recent years and US President Donald Trump continues to threaten punitive tariffs on imports of cars and auto parts from Europe.

“It was a perfect storm for the auto industry last year, with Trump’s trade war, the diesel scandal and the emissions regulations,” said Dirk Schumacher, head of European macro research at Natixis.

Tesla, by contrast, keeps growing stronger. Last week its market capitalisation surged past $100bn, making it the second most valuable carmaker, above VW and behind Toyota. The Californian company even had the audacity to choose a site near Berlin for its first European “gigafactory” — a move labelled “a declaration of war” by the Frankfurter Allgemeiner Zeitung newspaper.

So far the big loser in this war seems to be the German carmakers. On top of spiralling legal expenses, the carmakers face the heavy cost of switching to electric vehicles and cutting existing models’ emissions to meet stringent EU rules.

This matters both for Germany and the wider eurozone economy. High-performance cars made by BMW, Porsche, Mercedes and Audi are as much a part of Germany’s national identity as having no speed limits on motorways.

Carmaking directly employs 830,000 people in Germany and supports a further 2m jobs in the wider economy, accounting for about 5 per cent of the country’s economic added value. Its problems have weighed on the German economy, which only narrowly avoided a recession last year. Economists expect this to have dragged overall eurozone growth to a six-year low of 1.2 per cent last year.

The wider fear is that the carmakers’ troubles will seep into the domestic-focused services sector, which has so far been resilient. This concern was accentuated by this month’s worst-case prediction in a government-sanctioned report that 400,000 jobs could be lost in Germany in the next decade because of the shift to electric vehicles.

However, not everyone is depressed about all this turmoil. Kristalina Georgieva, IMF managing director, told last week’s World Economic Forum in Davos that she believed the massive sums needed to tackle the transition to a low-carbon economy “may be the silver bullet” that brings the “investment momentum” to kick-start growth.

The EU’s targets for 2030 mean that between 7m and 10.5m battery-powered cars will have to be on Germany’s roads by the end of the decade — a huge jump given there were only 220,000 last August.

Germany’s car industry finally seems to be waking up to the vast challenges of shifting away from the internal combustion engine. VW has promised to invest €60bn over five years to meet its target of selling 26m purely electric vehicles by 2029. Its first mass-market battery-powered hatchback, the ID.3, is due to go on sale this summer.

The German government recently promised to spend €3.5bn on installing 1m charging points across the country while raising subsidies to encourage people to buy electric vehicles. More assistance from Berlin is expected soon.

The sector has the financial firepower to tackle its problems — as shown by the more than €11bn of post-tax profits that VW made in the year to September. The good news for Europe’s economy is that all this investment could help lift it out of its recent slump.

>>> Europe : Brokers Upgrades & Downgrades - 29th of January 202

>>> Up
* 3i Raised to Overweight at Morgan Stanley; PT 1,300 pence
* Autoliv GDRs Raised to Hold at ABG; PT 715 kronor
* Banco BPM Raised to Buy at HSBC; PT 2.30 euros
* FirstGroup Raised to Hold at HSBC; PT 130 pence
* Lufthansa Raised to Buy at Berenberg
* Probi Raised to Hold at SEB Equities; PT 220 kronor
* Raisio Rated New Buy at SEB Equities; PT 4.30 euros
* Repsol Raised to Outperform at RBC; PT 15.50 euros
* Ryanair Raised to Hold at Berenberg; PT 14 euros
* TUI Raised to Buy at HSBC; PT 1,040 pence
* Whitbread Raised to Buy at HSBC; PT 5,200 pence
* William Hill Raised to Buy at HSBC; PT 230 pence

>>> Down
* Barry Callebaut Cut to Equal-Weight at Barclays
* Flutter Cut to Reduce at HSBC; PT 8,100 pence
* Grainger Cut to Neutral at Citi; PT 314 pence
* Greggs Cut to Reduce at HSBC; PT 2,000 pence
* Grifols Cut to Reduce at HSBC; PT 27 euros
* ITM Power Cut to Hold at Panmure Gordon; PT 104 pence
* Lenzing PT Cut to 60 euros from 80 euros at Berenberg
* Marston's Cut to Reduce at HSBC; PT 90 pence
* Restaurant Group Cut to Hold at HSBC; PT 150 pence
* Spar Nord Cut to Sell at SEB Equities; PT 60 kroner
* Stagecoach Cut to Reduce at HSBC; PT 125 pence
* Zealand Pharma ADRs Cut to Neutral at Kempen & Co; PT $38

>>> Initiation
* Idorsia Rated New Neutral at Goldman; PT 30 Swiss francs
* Merus BV Rated New Buy at Kempen & Co; PT $21
* Ubisoft Rated New Buy at SocGen; PT 83 euros

>>> Call
* 3i Group Upgraded, Has Scope to Re-Rate, Morgan Stanley Says
* Ferragamo 4Q Sales in Line, But There Are Some Positives: MS
* Kone Already Priced in Some Thyssenkrupp Elevator Benefits: MS
* Lufthansa Top Europe Airline Pick, Ryanair Upgraded: Berenberg
* LVMH May Open Lower Given Stock Positioning Before 4Q Update: MS
* Repsol Double-Upgraded at RBC on Better Risk-Reward Than Peers
* Telia Shares Set to Outperform After Earnings: Handelsbanken

>>> What to look at today - 29th of January 2020

U.S. and European stock futures edged up, oil clawed back some of its recent losses, and China’s yuan was stable in offshore trading as investors continued to assess the risks from the coronavirus.
A senior official said the White House hasn’t asked for a suspension of U.S.-China flights, helping ease some concerns amid mounting evidence of a near-term economic hit from the disease. Most Asian benchmarks rose, while Hong Kong tumbled in a catch-up with the global sell-off since that market shut for holidays. China remains closed. Treasuries added to recent gains.
US After Hours MTSI +13.4%,MXIM +3.8%, MINI +3.5%, AAPL +1.2%, CMRE +0.9%, SKY +0.7%, OSIS +0.3%, SYK +0.1%,WRB +0.1%

Nikkei +0.71% Hang Seng -2.82% CSI Closed Shanghai Closed Shenzen Closed

Eur$ 1.1006 CNH 6.9658 CNY 6.9109 JPY 109.05 GBP 1.3010 CHF 0.9741 RUB 62.3670 TRY 5.9457 WIT$ 53.98 +0.93%

S&P +0.18% EuroStoxx +0.05% Dax +0.07% FTSE +0.14% SMI +0.21%

Macro :
- Trump Says Mideast Plan Offers a Path Toward Two-State Solution

Keep an eye on :
- AIR FP : Airbus Taking Provision of EU3.6B for Potential Penalties
- AI FP : Air Liquide Said to Invite PE Firms to Join Bidding for Schuelke
- AVST LN : Avast Tumbles Most Since IPO on ‘Sell’ Rating and Data Report
- BMED IM : Mediolanum Says Mediobanca Stake Not Strategic, Could Be Sold
- DLG IM : De' Longhi Fourth Quarter Revenue Misses Lowest Estimate
- ELISA FH : Elisa Oyj Full Year Dividend Per Share Beats Estimates
- SESG FP : Senators Offer Bill Limiting Intelsat Payout for C-Band
- FRES LN : Fresnillo Fourth Quarter Silver Production 13.8 Mln Oz
- BOSS GY : Hugo Boss: UBS Group Voting Rights Rise to 8.54% as of Jan. 22
- IAG LN : British Airways to Halt Flight Bookings to Beijing,Shanghai: Sky
- KPN NA : KPN Sees 2020 Adj. Ebitda AL Stable to Slightly Growing y/y (1)
- LDO IM : Leonardo Buys 100% of Swiss Helicopter Maker Kopter From Lynwood
- MC FP : LVMH 4Q Revenue Organic Growth 8%; Est. 8.7%
- MC FP : LVMH 4Q Update ‘Strong, But Broadly In Line,’ Bernstein Says
- MCS LN : McCarthy & Stone Holder Anchorage Capital Group to Offer Shares
- VAC FP : Pierre & Vacances Sees Tourism Ops Current Op Margin 5% in 2022
- PSG SM : Prosegur Buys Back 5.85m Shares From Institutional Investor
- QRT LN : Quarto Says Octavian Proposal Weren’t in Firm’s Best Interests
- QLT LN : Quilter Reports 4Q Gross Sales of GBP3.5B
- REE SM : Red Electrica Starts Process to Select New Chairman
- RNO FP : Renault Names Luca De Meo CEO in Push to Move Beyond Ghosn Era
- RNO FP : Nissan Scales Back U.S. Sales Operations to Regain Footing
- SFER IM : Salvatore Ferragamo Full Year Sales At Constant FX Miss Est.
- SAN FP : Sanofi Loss Over Lantus Patents Will Stand, Appeals Court Says
- SIE GY : NY Warn Notice Issued for Siemens Govt. Tech; 149 Affected
- SMCP FP : SMCP: Confirmation of FY 2019 Guidance on Adj. Ebitda Margin
- SOW GY : Software AG Fourth Quarter Adjusted Ebita 1.6% Below Estimates
- TEL NO : Telenor Fourth Quarter Ebitda 1.7% Above Estimates
- TKA GY : Kone Confirms Offer to Buy Thyssenkrupp Elevator Technology
- VOD LN : Saudi Telecom Offers $2.39b for Vodafone’s Egypt Unit Stake
- WIZZ LN : Wizz Air Raises FY Net Profit Guidance (1)

>>> Stoxx 600 Pre-Market Indications

  • Banco Santander (BSD2 TH) +3.1%
    • Santander Targets Stronger Capital as Latin America Lifts Profit
  • TUI (TUI1 TH) +1.6%
  • Lufthansa (LHA TH) +1.6%
    • Lufthansa Top Europe Airline Pick, Ryanair Upgraded: Berenberg
  • Galapagos (GXE TH) +1.5%
    • Galapagos’ GLPG1690 Gets Orphan Drug Designation Status
  • K+S (SDF TH) +1.1%
  • Ashmore (A1B TH) +1.1%
  • Amundi (ANI TH) +1%
  • HelloFresh (HFG TH) +0.9%
  • Dialog Semi (DLG TH) +0.9%
    • Apple Suppliers ​​​​​​​Rally on Sales Forecast; Watch Asia/EU Peers
  • Fresenius Medical (FME TH) -0.8%
  • Nemetschek (NEM TH) -1%
  • Kering (PPX TH) -1%
    • Watch Kering, Hermes, Remy After LVMH 4Q Fails to Beat Estimates
  • LVMH (MOH TH) -1.5%
    • LVMH May Open Lower Given Stock Positioning Before 4Q Update: MS
      • LVMH Fourth Quarter Organic Revenue Misses Estimates
  • KPN (KPN TH) -2.8%
    • KPN Sees 2020 Adj. Ebitda AL Stable to Slightly Growing y/y (1)
  • SES (SES TH) -3.6%
    • Senators Offer Bill Limiting Intelsat Payout for C-Band

>>> TradeGate PRe-MArket Indications

DAX:
  • Lufthansa (LHA TH) +2.1%
    • Lufthansa Top Europe Airline Pick, Ryanair Upgraded: Berenberg
    • Worn Down by a Stock Slump, Lufthansa Tries Reset With Disposals
  • Wirecard (WDI TH) +1.1%
  • Deutsche Bank (DBK TH) -0.3%
    • Deutsche Bank Postpones This Year’s Annual Raises Until April 1
  • Vonovia (VNA TH) -0.4%
MDAX:
  • Varta (VAR1 TH) +3%
    • Apple Suppliers Rally on Sales Forecast; Watch Asia/EU Peers
  • K+S (SDF TH) +2%
  • Dialog Semi (DLG TH) +1.3%
  • RTL (RRTL TH) +1%
  • ProSieben (PSM TH) +1%
  • Siltronic (WAF TH) -2.8%
    • Siltronic Full Year Ebitda 1.6% Above Estimates
  • Software AG (SOW TH) -8.6%
    • Software AG Fourth Quarter Adjusted Ebita 1.6% Below Estimates
SDAX:
  • Koenig & Bauer (SKB TH) +2.3%
  • Aixtron (AIXA TH) +1.2%
    • Watch Chip Stocks as AMD, Xilinx Miss But Apple Sales Beat
  • Encavis (CAP TH) +1.1%
  • Heidelberger Druck (HDD TH) +0.8%
  • Kloeckner (KCO TH) +0.7%