Eni Backs Separate Listing of Retail, Renewables Business
Topic of the day
Eni SpA has opted to list its newly merged retail-and-renewables business next year, as it seeks to maximize the value of its lower carbon operations. The Italian oil-and-gas major said Thursday that it has approved the launch of a process for an initial public offering, which it expects to complete next year. "We have committed to being a leader in producing and selling completely decarbonized products and an IPO of Eni's Retail & Renewables business is an important step towards this goal," said Eni Chief Executive Claudio Descalzi. "Retail & Renewables is an exceptional business, which combines a growing pipeline of renewable capacity with an attractive and increasing customer base, and is uniquely positioned to meet the opportunities presented by the energy transition," he added. Eni will keep a majority stake in the listed company, which will have its own balance sheet and an investment-grade credit rating.
The Swiss stock exchange made strong gains on Thursday. A number of international developments in particular eased the situation. The SMI gained 1.7 per cent to 11,764 points. Among the 20 SMI stocks, there were 18 price gainers and two price losers. 38.24 (previously: 33.36) million shares were traded. In view of the renewed risk appetite, cyclicals were in demand. ABB rose by 2.5 per cent and Holcim by 2 per cent. Cyclically sensitive bank shares were also bought across Europe. Credit Suisse advanced by 3.8 per cent and UBS by 3.6 per cent. UBS was supported by additional statements from Jefferies. Their analysts believe that the share price is too low and does not reflect the true value of the company. Luxury goods stocks also rallied. The companies are heavily dependent on the China business. Richemont advanced 4.4 per cent and Swatch 2.6 per cent. Sika rose 3 per cent. The specialty chemicals company reaffirmed its annual targets at its capital market day.
European stock markets closed sharply higher on Thursday as investors welcomed a deal in the US Congress to avoid a default and reassuring statements from Russian President Vladimir Putin on gas supplies to Europe. The Stoxx Europe 600 index rebounded 1.6% to 458.6 points, erasing the previous day's losses. In Paris, the CAC 40 and the SBF 120 gained 1.7% and 1.6%, respectively. In Frankfurt, the DAX 40 gained 1.9% and the FTSE 100 in London rose 1.2%. Royal Dutch Shell PLC said Thursday that Hurricane Ida’s impact in the Gulf of Mexico hit its operations but it expects a cash boost from high global energy prices in the third quarter. The Anglo-Dutch energy giant said Hurricane Ida is expected to cause losses of around $400 million to its adjusted earnings and clash flow from operations in the third quarter. However, Shell said it expects its cash flow from Integrated Gas operations will be boosted by “large variation margin inflows on the back of the prevailing gas and electricity price environment”. The London-listed company said that integrated gas production for the third quarter is anticipated to be between 890,000 and 950,000 barrels of equivalent oil per day. Finland on Thursday joined Sweden, Denmark and Norway in recommending against use of Moderna Inc.’s Covid-19 vaccine in younger age groups, citing risks of rare cardiovascular side effects they said warranted the precautionary steps. Finland’s Institute for Health and Welfare said Thursday it would pause use of the Moderna vaccine among men under the age of 30, following a similar step Wednesday by Swedish regulators. Denmark on Wednesday said it wouldn’t offer the Moderna vaccine to under-18s as a precautionary measure. Norway on Wednesday advised that all under-18s shouldn’t be given the Moderna vaccine, even if they had already received one dose, and recommended that men under 30 consider getting the vaccine developed by Pfizer Inc. and BioNTech SE instead.
Major U.S. stock indexes rose Thursday after Senate Majority Leader Chuck Schumer said lawmakers had reached a deal on a short-term debt-limit extension, potentially putting off a government default standoff for a couple of months. The Dow Jones Industrial Average rallied 337.95 points, or 1%, to 34754.94. The S&P 500 added 36.21 points, or 0.8%, to 4399.76. The Nasdaq Composite rose even higher as technology stocks recouped recent losses, lifting the benchmark up 152.10 points, or 1%, to 14654.02. Thursday's gains put stocks on firm footing for the week. All three major benchmarks are up at least 0.6% over the past four trading days. That marks a full recovery from Monday losses, when a selloff in Facebook stock and shares of other big technology companies rippled through the market. Pfizer Inc. and BioNTech SE have asked U.S. health regulators to green light their Covid-19 vaccine for children 5 to 11 years old, setting up the shot to potentially be available to millions of youngsters in a matter of weeks. The companies said Thursday that they submitted the application for authorization with the U.S. Food and Drug Administration. The FDA may clear the shot for use in the youths before November, which would mean pediatrician offices, schools and other locations could get doses to give as early as Halloween. Comcast Corp. on Thursday said it has built a smart TV that will run on its own operating system, the company’s latest answer to the streaming wars.
The recovery on the stock markets in East Asia and Australia continues for the most part on Friday. In Shanghai, where trading is taking place for the first time this week after the "Golden Week", the trend is also upwards. Here, the Caixin Purchasing Managers' Index for the service sector rose above the expansion threshold of 50 points again in September. However, the Shanghai composite, currently up 0.3 per cent, is giving back some of its early gains.
U.S. government debt yields edged up Thursday, with the 10- and 30-year rates hitting their highest levels since June, as stocks advanced on a temporary debt-limit fix by Congress and a drop in weekly jobless benefit claims.
IR lowers the Tui target to 2,30 (2,80) EUR – Sell
JPM rises the Tesco target to 330 (300) p – Overweight
CS rises the Relx target to 2.500 (2.430) p – Outperform
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