The AEX (+1.4%) managed to take another step upwards. A significant increase in the price of Chinese tech giant Tencent (+10.5%) means that Prosus (+7.1%), which has a big interest in Tencent, is also going green. Tencent, like many other Chinese internet stocks, is up sharply thanks to the positive meeting between Xi and Biden. In the midcap, it is Alfen (+4%) that is growing fastest. Yesterday Berenberg provided the stock with a buy recommendation.
Favorable producer prices
US producer prices rose in October, but less than expected. Producer prices rose 0.2% month over month, following a 0.2% increase in September. A stroke of luck, because the experts assumed a 0.4% increase.
That’s not the only better-than-expected macro news today. The ZEW index appeared in our eastern neighbours. Although the index is still below zero, it rose sharply in November. Last month the index was still at -59.2 and was expected to rise to -50. In reality the index rose much faster, to -36.7.
Warren Buffett joins TSMC
TSMC extension (+7.9%) opened sharply higher today as none other than investment legend Warren Buffett came on board. Buffett, 92, bought his Berkshire Hathaway business for $60 million in shares in the Taiwan wood chipper.
“We are not surprised Buffett sees value in the chipmaker at its current level, especially as Apple (42% of Buffett’s portfolio) makes clear progress at TSMC for a second US plant, risk profile is improving,” he writes. analyst Paul Weeteling. to be analyze TSMC van.
Buffett buys TSMC and Apple flirts with it https://t.co/thCGLdRfb3 $TSM #Invest #shares
— Paul Weeteling (@PaulWeeteling) November 15, 2022
Air France-KLM
The third quarter first Air France-KLM (+0.4%) actually it wasn’t that bad. “The corona pandemic has passed its peak, thus Air France-KLM has achieved utopian growth figures,” wrote analyst Niels Koerts. “For example, revenue in the third quarter increased by 78% year-on-year to €8.1 billion. Although Air France-KLM was hampered by problems at Schiphol and spiraling fuel costs, the airline managed to make a profit of 460 million euros from the presses”. Everything seems to be fine, but remember that the holiday season mostly falls in the third quarter and this quarter is always by far the best for the airline.
Furthermore, Koerts mentions another major risk for Air France-KLM: a new pandemic. This doesn’t even have to be about the crown. Researcher William Pan says the chance of new diseases will triple in the coming decades. Scientists estimate the chance of a pandemic comparable to the corona pandemic to occur at 2% per year. It is known that Koerts is not the biggest fan of Air France-KLM as an investment, so his advice is clear. But for its price target and all the arguments, you’ll be real after all in-depth analysis of Air France-KLM I have to read.
The new pandemic remains a major risk for Air France-KLM https://t.co/WvguykemLr #IEX
— IEX.nl (@IEXnl) November 15, 2022
Annuities
Stocks are on the rise today, so falling interest rates shouldn’t come as a surprise. The Dutch 10-year interest rate falls by six basis points to 2.37%.
Large market
- The AEX (+1.4%) outperformed the German DAX (+0.7%) and the French CAC 40 (+0.5%).
- The CBOE VIX index (volatility) drops to 23.6 points.
- Wall Street is listed as follows: S&P 500 (+1.5%), Dow 30 (+0.7%) and Nasdaq (+2.5%).
- The euro rose 0.5% to 1.038 against the US dollar.
- Gold remains down (+0.0%) while silver falls (-2%).
- Oil: up WTI (+1.2%) and Brent (+1%).
- Bitcoin (+2.9%) is positive.
The Damrak
- Chip machine builder ASML (+2.5%) is evaluating the possibility of making acquisitions to meet the strong global demand for semiconductors. CEO Peter Wennink said on Tuesday in an interview with the Bloomberg news agency.
- IMCD extension (-0.9%), a specialist in the distribution of chemicals and specialty ingredients, has managed to maintain a high growth rate for the time being. A great achievement in a world where supply chain-interruptions are still the order of the day. Nonetheless, IEX analyst Martin Crum sees some subtle cracks appearing in the growth model, as can be read in his IMCD analysis.
- TKH extension (-0.4%) is currently held back by a shortage of components, which mainly affects the tire construction machinery department, which is important for the group. Things have been so good there in the first half of the year. CEO Alexander van der Lof believes things will continue to be tough for a few more quarters. At the same time, the CEO says that TKH is on track with the implementation of the ambitious “Accelerate 2025” growth program. Read everything this analysis of TKH.
- Ebusco (-3.7%) won another Swedish order. This time it’s thirteen 3.0 buses. Given the price, investors don’t seem too impressed.
- For farmers (+2.6%) has appointed Theo Spierings as new CEO. The idea is that he will lead ForFarmers for one year starting January 1, 2023.
Advice (source: Guruwatch.nl)
- NN Group: to $50 from $47 and hold – JPMorgan Research
- Azerion: Buy recommendation with a price target of €8.60 – Berenberg
- Vopak: at 34€ from 23€ and increased to buy – ABN Amro Oddo
- ING: at €16.25 from €15 and buy – Goldman Sachs
- Heineken: at 95€ from 96€ and hold – Morgan Stanley
- ASML: to $823 from $600 and increased to buy – Susquehanna Financial
- ASML: At $634 from $527 & Buy – Wells Fargo
- ASML: to $650 from $550 and purchase – Deutsche Bank.
- Fagron: €18.50 from €19.50 and purchase – KBC Securities
Agenda Wednesday 16 November
00:00 Tencent – Q3 Figures (Who)
08:00 Consumer & Producer Prices – October (UK)
08:45 Inflation – October (Fra)
1:00pm Kohl’s – US Third Quarter Results
1:00pm Macy’s – US Third Quarter Results
13:00 Target – US third quarter data
1:00pm Mortgage Applications – Weekly (US)
2:30pm Retail Sales – October (US)
14:30 Import prices – October (US)
15:15 Industrial Production – October (USA)
4:00pm Corporate Actions – September (US)
4:00pm Home Builder Trust – November (US)
4:30pm Oil Stocks – Weekly (US)
22:00 Nvidia – Third quarter data (US)
Coen Grutters is editor of IEX. The information in this column is not intended to be professional investment advice or a recommendation for making any particular investment. Click here for an overview of IEX publisher investments.
