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By Swissquote Analysts
Published on 02.02.2021
Morning news

Ryanair Swings to 3Q Net Loss, Expects Adjusted Net Loss for the Year

Topic of the day

Ryanair Holdings PLC said that for the third quarter of fiscal 2021 it swung to a net loss due to the coronavirus pandemic, and that it was guiding for an adjusted loss after tax for the year in the range of 850 million euros to 950 million euros ($1.03 billion to $1.15 billion). The company said that this was because of the U.K. and European Union lockdown measures and travel restrictions stemming from the coronavirus pandemic, as well as "the timing of the rollout of vaccines across the EU and a very close-in booking curve," and that visibility in the fourth quarter remained limited. The budget airline said that for the three months ended Dec. 31 net loss was EUR320.8 million compared with a net profit of EUR87.8 million a year earlier, and a consensus of EUR190.8 million taken from FactSet and based on six analysts' estimates. Pretax loss for the period was EUR362.5 million compared with a pretax profit of EUR81.6 million.

Swiss stocks

After a sharp 2.4 percent slump Friday, the SMI Monday gained 1.4 percent to 10,740 points, buoyed by easing in the EU vaccine dispute. Pharmaceutical firms AstraZeneca and BioNTech will now supply more of their Covid-19 vaccine to the EU than recently announced. Good economic data also pointed to an ongoing recovery in China. Second-tier Julius Baer slid 2.1 percent despite announcing good financials, a share buyback and a higher 2020 dividend. Competitors Credit Suisse rose 0.3 percent and UBS 1.5 percent. After initial losses, Clariant gained 1.2 percent on news that Board of Directors Chairman Hariolf Kottmann will stand down. Heavyweights Roche, Nestle and Novartis also buoyed the SMI, rising by between 0.4 percent and 2.3 percent. Swatch rose 1.0 percent to CHF 259.60 on positive analyst comments after Thursday’s figures. One analyst group raised their target by CHF 20 to CHF 300, confirmed their "outperform" rating and raised their 2020 earnings per share estimate by 9 percent.

International markets


European stocks rise as markets take a fresh flurry of retail-investor buying activity in stride. The Stoxx Europe 600, CAC-40 and DAX are all more than 1% higher, while the FTSE 100 gains 0.9%. Growth of eurozone manufacturing remained resilient at the start of 2021, with the sector expanding for a seventh successive month and again at a marked pace, IHS Markit says. The eurozone manufacturing purchasing managers' index was 54.8 for January, down slightly on December's 55.2, but still one of the highest figures seen over the past two-and-a-half years, according to IHS Markit. Electricite de France SA will take on the 360,000 customers from Green Network Energy after the gas-and-electricity provider ceased operations last week, U.K. regulator Ofgem said on Saturday. The new clients, mostly domestic, will add to EDF's roughly 5 million residential customer base in the U.K. The utility operates in the country through EDF Energy. Eaton Corp. PLC said Monday it has agreed to buy Cobham Mission Systems for $2.83 billion, including $130 million in tax benefits, a deal that would boost the power-management company's fuel-systems and aerospace businesses. Cobham Mission Systems is a maker of air-to-air refueling systems, environmental systems and actuation. Eaton said the purchase price represents 14 times Cobham Mission Systems' 2020 earnings before interest, taxes, depreciation and amortization and 13 times the estimated 2021 Ebitda.

United States

U.S. stocks rebounded Monday, with major benchmarks recovering some ground following their worst week since October and the online day-trading crowd turning its sights to the silver market. The Dow Jones Industrial Average rose 229.29 points, or 0.8%, to 30211.91, the S&P 500 gained 59.62 points, or 1.6%, to 3773.86 and the Nasdaq Composite climbed 332.70 points, or 2.5%, to 13403.39. The day's gains put the S&P 500 back into positive territory for the year. Horizon Therapeutics Plc (HZNP) said Monday it has agreed to acquire Viela Bio Inc. (VIE) for $53 a share in cash, or an equity value of about $3.05 billion. The deal is expected to close by the end of the first quarter. "Adding Viela's research and clinical development capabilities along with its deep, mid-stage biologics pipeline to our seasoned R&D and commercial teams, advances our transformation to an innovation-driven biotech company where we will build on the success of TEPEZZA and KRYSTEXXA to bolster our long-term growth trajectory, Horizon Chief Executive Tim Walbert said in a statement. Private aviation company Wheels Up Partners Holdings LLC said Monday it is going public via a merger with special purpose acquisition corporation Aspirational Consumer Lifestyle Corp. (ASPL), in a deal with an enterprise value of $2.1 billion. The SPAC, or blank-check company, was formed by a group of consumer investors led by Chairman and Chief Executive Officer Ravi Thakran, private equity veteran and former Group Chairman of LVMH Asia.


The good mood on the stock markets in East Asia from the previous day continues on Tuesday. Market participants continue to report that the focus is on the quarterly results of the companies. After a subdued start, the Nikkei index in Tokyo is up 0.8 per cent at 28,313 points, with similar gains in Shanghai and Seoul. In Shanghai, traders are talking about an upward countermovement after the central bank recently injected liquidity into the money market again. The previous week, the central bank had acted in the opposite direction. In India, the Sensex in Mumbai rallied by another 2.5 per cent after the previous day's 5 per cent price fireworks. Here, the government's plans to lead the country's economy out of the pandemic crisis with increased spending are again providing support.


U.S. Treasury yields strengthened in Asia, as fresh bets on U.S. stimulus weighed on safe-haven assets. The yield on 10-year U.S. paper rose 0.6 basis point to 1.07 percent on Monday.


UBS rises Unicredit to Buy (Neutral) – Target 10,80 EUR
CS rises the SAP target to 131 (119) EUR – Outperform
HSBC rises the Diageo target to 3.550 (3.450) p – Buy

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