Remy Cointreau Backs FY 2023 View Despite Likely Slower 2H
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Remy Cointreau SA said it remains confident of its outlook for the fiscal year, but said growth is set to slow after a strong first six months. In the six months to Sept. 30, the French distiller made current operating profit of 319.3 million euros ($331.9 million,) 27% higher on year organically, with an operating margin that climbed 1.7 points to 36.8%. Adjusted net profit meanwhile rose 29% to EUR226.8 million. Half-year revenue, which Remy Cointreau published last month, was confirmed at EUR867.1 million, rising 21% on year on the back of a strong price effect. The maker of Remy Martin cognac said it still expects strong organic growth for the full fiscal year, though trends should normalize in the second half after two outstanding years of rebound following the global pandemic. In the cognac division, marketing costs have been postponed to the second half in China as a result of continued pandemic restrictions in the country, Remy Cointreau said.
The Switzerland stock market ended on a firm note on Thursday, in line with the trend seen across Europe, amid rising hopes the Federal Reserve will slow down the pace of its interest rate hikes from as early as next month. According to the FOMC meeting minutes, a majority of policymakers found that a slower pace of interest rate hikes would 'likely soon be appropriate. A slower pace in these circumstances would better allow the committee to assess progress toward its goals of maximum employment and price stability. The start was a bit sluggish, but the market recovered soon and stayed firm right till the end of the session thanks to sustained buying at several frontline counters. The benchmark SMI ended with a gain of 63.10 points or 0.57% at 11,157.56. The index scaled a low of 11,085.38 and a high of 11,175.27 in the session. Lonza Group, Logitech and Givaudan gained 2.26%, 2.05% and 1.98%, respectively. Partners Group and Sonova both gained about 1.6%. Alcon, Holcim, Swiss Re ended higher by 1 to 1.4%, while UBS Group, Swisscom and ABB gained 0.8 to 0.95%. Credit Suisse ended nearly 2% down. Novartis and Nestle ended flat. In the Mid Price Index, Zur Rose rallied 5.3% and Temenos Group gained 4.2%. AMS, Straumann Holding, Tecan Group, Clariant, Schindler Ps and PSP Swiss Property advanced 1.8 to 2.5%.
European stocks closed higher on Thursday with several key indices from the region rising to multi-month highs, thanks to positive reaction to the Federal Reserve's minutes which have raised hopes the central bank will likely slow its pace of interest rate hikes from next month. According to the FOMC meeting minutes, a majority of policymakers found that a slower pace of interest rate hikes would 'likely soon be appropriate.' Minutes from the ECB's last meeting showed policymakers remained committed to raising rates, even in case of a recession. However, the minutes showed no reference to another 75-basis point rate hike in December. The minutes showed that the future path should be based on the 'evolving outlook for inflation and the economy, following a meeting-by-meeting approach. The pan European Stoxx 600 gained 0.46%. Germany's DAX climbed 0.78% and France's CAC 40 gained 0.42%, while the U.K.'s FTSE 100 edged up 0.02%. Switzerland's SMI advanced 0.57%. Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Norway and Poland ended notably higher. Iceland, Ireland, Netherlands, Portugal edged up marginally. Sweden closed weak, while Russia, Spain and Turkiye ended flat. In the UK market, Intertek Group surged more than 4.5%. United Utilities, Rolls-Royce Holdings, Airtel Africa, Segro, ICP, Hargreaves Lansdown, Natwest Group, Schrodders, IAG, Associated British Foods and RightMove gained 1.5 to 3.2%. Imperial Brands drifted down nearly 4%. British Land, Vodafone Group, RS Group and National Grid also ended notably lower. Shares of Dr Martens plunged sharply after warning on margins. Kingfisher ended lower after cutting its annual profit guidance. In the German market, Vonovia climbed 5.5% and HelloFresh gained about 4.75%. Covestro, Deutsche Wohnen, Zalando, Merck, Siemens Healthineers, Puma, Bayer and Adidas gained 2 to 3.5%. In Paris, Unibail Rodamco gained 3.7%. Renault rallied 3% after the automaker announced an acceleration of the decarbonization plan for its industrial sites with three strategic partnerships. WorldLine, Eurofins Scientifica, Societe Generale, Teleperformance, Stellantis, Alstom and BNP Paribas gained 1 to 3%. In economic releases, the German Ifo business-climate index rose to 86.3 points in November from a revised reading of 84.5 points in October. Economists had expected a score of 85.0. The confidence among French manufacturers weakened more-than-expected in November, survey results from the statistical office Insee showed.
U.S. stock exchanges were closed yesterday for Thanksgiving Day and will reopen today only for an abbreviated session.
The East Asian and Australian stock exchanges trended inconsistently on Friday. After the recent upward movement, some caution returns, which is not unusual before the weekend. While there is no guidance from Wall Street due to the Thanksgiving holiday on Thursday, US futures are trending slightly higher. In Japan (Nikkei index -0.4% to 28,283 points), the market is posting small losses, weighed down also by the recent strength of the yen, which is weighing on export-oriented Japanese companies. Due to the positive US futures, the losses should be limited until the end of trading, participants assume.
US bond markets were closed on Thursday for the Thanksgiving holiday and will close earlier on Friday. At around 7.20am, the 10-year US Treasury yield was down about 4 basis points at 3.662%. The 2-year Treasury was down 8 basis points to 4.430%.
Goldman Sachs raises BMW target to EUR 88 (80) – Buy
Deutsche Bank raises Renault target to EUR 40 (35) – Hold
Morgan Stanley lowers Vonovia to EUR 30 (37) – Equalweight
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