MORNING BRIEFING – Germany/Europe

The morning market overview, compiled by Dow Jones Newswires.

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+++++ DAILY THEME +++++

Airbus increased sales and profits significantly in the third quarter, but missed market expectations. “Demand for our commercial aircraft is very strong and the widebody market recovery continues,” said CEO Guillaume Faury. “We assume that the supply chain will remain a challenge as production ramps up. Against this background, we are sticking to our forecast for the full year.” In the first ten months of the year, Airbus delivered 559 aircraft and is aiming for 720 aircraft for the full year.

Below are the third quarter figures and consensus estimates (figures in millions of euros, with the exception of earnings per share in euros):

REPORTS PROG PROG

3RD QUARTER 3Q23 y/y 3Q23 y/y 3Q22

Sales 14,897 +12% 15,098 +13% 13,309

EBIT adjusted 1,013 +21% 1,142 +37% 836

EBIT 825 -15% 1,118 +15% 973

Earnings after taxes/third parties 806 +21% 837 +25% 667

Earnings per share 1.02 +20% 1.08 +27% 0.85

Free cash flow* -537 — -415 — 944

* before M&A and customer financing

+++++ OUTLOOK FOR THE COMPANY +++++

HANOVER RÜCK (07:30)

Below are the consensus estimates for the third quarter (in million euros, earnings per share in euros, combined ratio in percent, according to IFRS):

PROG PROG PROG

3RD QUARTER 3Q23 yoy figure 3Q22

Reinsurance turnover (gross) 6,920 +6% 2 6,515

Investment result 351 -5% 2,368

EBIT 648 +19% 5,544

Earnings after taxes/third parties 437 +45% 5,301

Earnings per share 3.61 +44% 4 2.50

Combined ratio* 92.0 — 2 95.0

* Damage reinsurance

RHEINMETALL (07:30)

Below are the consensus estimates for the third quarter (in million euros, earnings per share in euros, margin in percent, according to IFRS):

PROG PROG PROG

3RD QUARTER 3Q23 yoy figure 3Q22

Sales 1,757 +24% 12 1,415

Operating result 165 +41% 12 117

Operating profit margin 9.4 — — 8.3

Earnings after taxes/third parties 90 +17% 10 77

Earnings per share 2.07 +18% 10 1.76

CANCOM (08:00)

Below are the consensus estimates for the third quarter (in million euros, according to IFRS):

PROG PROG PROG

3RD QUARTER 3Q23 yoy figure 3Q22

Sales 422 +28% 3,330

EBITDA 31 +7% 3 29

JENOPTIK (07:35)

Below are the consensus estimates for the third quarter (in million euros, margin in percent, according to IFRS):

PROG PROG PROG

3RD QUARTER 3Q23 yoy figure 3Q22

Order intake 268 -3% 10 276

Sales 272 +8% 12,251

EBITDA 55 +14% 12 48

EBITDA margin 20.2 — — 19.2

EBIT 37 +17% 10 32

Further dates:

07:00 DE/SMA Solar Technology AG, results for 9 months (1:30 p.m. analyst conference)

07:00 JP/Sony Corp, 2Q earnings

07:00 LU/Arcelormittal SA, 3Q result

07:00 AT/Wienerberger AG, results 9 months

07:00 DE/Aareal Bank AG, 3Q results (09:30 PK)

07:00 DE/Grenke AG, result 9 months

07:00 DE/Hamborner Reit AG, 3Q results

07:00 DE/Wacker Neuson SE, result 3Q

07:30 DE/Fielmann AG, 3Q result

07:30 DE/Hensoldt AG, results for 9 months (1:00 p.m. analyst conference)

07:30 DE/Deutz AG, 3Q results (09:00 PK; 10:30 analyst conference)

07:30 DE/GFT Technologies SE, 3Q results

07:30 DE/Hapag-Lloyd AG, result 9 months

07:30 DE/Instone Real Estate Group SE, 3Q results

07:30 DE/Mister Spex SE, result 3Q

07:30 DE/Mutares SE & Co KGaA, 3Q result

07:30 LU/SAF-Holland SE, 3Q result

07:35 DE/MLP SE, result 3Q (10:00 PK)

07:40 DE/Zeal Network SE, 3Q results

07:50 DE/Süss Microtec SE, 3Q results

08:00 DE/Verbio Vereinigte BioEnergie AG, 1Q results

08:00 GB/Astrazeneca plc, results for 9 months (15:00 analyst conference)

08:00 GB/National Grid plc, result 1H

08:00 IR/Flutter Entertainment plc, 3Q trading update

08:00 DE/New Work SE, 3Q results

08:00 DE/OHB SE, result 9 months

08:00 DE/Secunet Security Networks AG, results 9 months

08:00 JP/Honda Motor Co Ltd, 2Q results

08:00 DE/Truck toll mileage index August

08:30 DE/Baywa AG, 3Q results (08:30 analyst conference)

09:00 DE/Westwing Group SE, 3Q results

09:25 JP/Nissan Motor Co Ltd, result 1H

10:00 DE/BayernLB, result 9 months

2:00 p.m. FR/Schneider Electric SE, Capital Markets Day

17:50 IT/Pirelli & C. SpA, 3Q results

22:00 US/News Corp Ltd, 1Q results

DIVIDEND DISCOUNT

BP: 0.0727 GBP

HSBC: £0.10

+++++ ECONOMIC OUTLOOK +++++

– US

2:30 p.m. Initial claims for unemployment assistance (week)

FORECAST: 220,000

previously: 217,000

+++++ OVERVIEW FUTURES / INDICES +++++

Current:

INDEX level +/-

DAX future 15,280.00 -0.0%

E-Mini Future S&P-500 4,397.50 -0.0%

E-Mini Future Nsdq-100 15,378.25 -0.1%

Nikkei-225 32,646.46 +1.5%

Shanghai Composite 3,049.52 -0.1%

Hang Seng Index 17,504.65 -0.4%

+/- ticks

Bund future 130.85 +6

Wednesday:

INDEX closing +/-

DAX 15,229.60 +0.5%

DAX future 15,282.00 +0.4%

XDAX 15,218.31 +0.4%

MDAX 25,391.12 +1.1%

TecDAX 2,993.52 +0.7%

EuroStoxx50 4,178.49 +0.6%

Stoxx50 3,884.10 +0.3%

Dow Jones 34,112.27 -0.1%

S&P 500 Index 4,382.78 +0.1%

Nasdaq Comp. 13,650.41 +0.1%

EUREX last +/- ticks

Bund future 130.79 +42

+++++ FINANCIAL MARKETS +++++

EUROPE

Outlook: Market participants expect prices on the European stock markets to remain stable on Thursday. “The environment actually speaks for further advances on the upside,” said one participant, with a view to the continued decline in yields, the recent significant decline in oil prices and the favorable templates of some Asian markets. However, new price data from China point more to the risk of deflation than to an economic recovery. “But the first thing we’re looking at is the reporting season,” he says. On Thursday, numerous companies will put their figures on the table.

Review: Friendly – After a long period of directionless trading, things still went up. The tailwind came from falling yields. The reporting season provided the impetus for sometimes strong price fluctuations for individual stocks. In the banking sector, ABN Amro fell by a good 9 percent. The Dutch bank had disappointed with its net interest income. Marks & Spencer jumped 8.4 percent. The clothing and food retailer reported higher sales and profits for the first half of the year. Ahold Delhaize collapsed after a profit decline of over 7 percent. Vestas gained almost 10 percent. The wind power company’s net profit was well above forecasts. Vestas increased both its sales outlook and its operating profit outlook.

DAX/MDAX/SDAX/TECDAX

Slightly firmer – the strongest DAX stock was Continental (+4.1%). Because the mood for the stock before the publication of the quarterly figures was negative and expectations were low, the largely intact margins for the third quarter and the year were received very positively, it was said. According to the quarterly figures, DHL gained 2.9 percent. The lowered profit forecasts were expected, it said here. At Fresenius, the sale of the Eugin Group for up to 500 million euros including milestone payments was acknowledged with an increase of 2.2 percent. Commerzbank rose by 0.7 percent according to what were described as solid figures. The business figures from Siemens Healthineers (+1.3%) were also well received. Eon lost 0.8 percent. The energy supplier confirmed the forecast when presenting the figures, but expects negative price effects in the fourth quarter. Deutsche Pfandbriefbank (-10.7%) was sold after the pre-tax profit target was collected. Süss Microtec rose by 20 percent; In addition to figures, the company had reported the successful sale of a loss-maker.

XETRA AFTER-EXCHANGE

Airbus was seen 1.5 percent lower after quarterly figures were presented (see above). For Freenet it went up 1.0 percent. After increasing sales and earnings in the first nine months, the company has become more confident about the full year 2023.

USA – STOCKS

(MORE TO FOLLOW) Dow Jones Newswires

November 09, 2023 01:42 ET (06:42 GMT)

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