EUROPEAN EQUITY OPEN: RHM GY made approach for TKA GY unit; AAL LN seeks shareholder approval for platinum unit demerger; NOKIA FH to secure EU approval for INFN buy; defence names in focus amid Ukraine peace talks; US markets shut today

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  EUROPEAN OPEN: European equities are starting the week around flat/higher, following a mixed APAC session overnight, where there was a lack of major macro drivers, aside from stronger-than-expected Japanese GDP. There is some optimism for global geopolitical improvement on Monday, following reports that US President Trump said his meeting with Russia President Putin could happen very soon, while Secretary of State Rubio, National Security Adviser Waltz, and Special Envoy Witkoff are to travel to Saudi Arabia to begin Ukraine-Russia peace talks. Additionally, European leaders set to hold an emergency summit on the war in Ukraine, prompted by concerns that the US may move ahead with peace talks with Russia without involving Europe. French President Macron will reportedly argue that Europe should view Trump's approach to NATO and the Russia/Ukraine conflict as an opportunity, and will suggest Europe embrace the US "peace" initiative while committing to rearmament. The summit's goals are to progress negotiations on funding increased European defence spending and to reassure Kyiv of continued European support, regardless of potential peace terms from the US and Russia. US markets are shut today for Presidents Day (the desk will be running a normal schedule). There are also Fed speakers scheduled, by way of Harker and Bowman.


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  STOCK SPECIFICS: In M&A and deals, Rheinmetall (RHM GY) made a non-binding offer for Thyssenkrupp's (TKA GY) TKMS, though the sale process halted; Rheinmetall will continue growing even if a Ukraine ceasefire occurs, CEO said. Anglo American (AAL LN) plans to seek shareholder approval for the demerger of Anglo American Platinum at its AGM in April; the demerger is set for June, and Anglo will retain a 19.9% stake in the company, but will not have board representation post-demerger. Poste Italiane (PST IM) acquired a 9.81% stake in Telecom Italia (TIT IM), and sold a 3.78% stake in Nexi (NEXI IM). Tikehau Capital has built up a 4% stake in Schroders (SDR LN), worth around GBP 230mln, The Times reports. In tech, Nokia (NOKIA FH) is set to secure unconditional EU approval for its USD 2.3bln acquisition of Infinera (INFN); the deal is expected to close by Q1 2025, and would make Nokia the second-largest player in the optical networking market, helping it serve major tech firms investing in AI-driven data centres. Aramco's venture arm has invested in Telefonica's (TEF SM) AI startup; no terms disclosed. In materials, Australia's largest iron ore port Port Hedland reopened after Tropical Cyclone Zelia caused high floodwaters but no significant damage; Rio Tinto's (RIO LN) mines resumed operations following the cyclone's dissipation. In notable broker updates, Saab (SAABB SS) was upgraded at Citi.

TODAY'S AGENDA:

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  DAY AHEAD: The European data slate is thin, with only trade data for December due. Still, there will be attention on geopolitics, with European leaders set to hold an emergency summit on the war in Ukraine, prompted by concerns that the US may move ahead with peace talks with Russia without involving Europe. French President Macron will reportedly argue that Europe should view Trump's approach to NATO and the Russia/Ukraine conflict as an opportunity, and will suggest Europe embrace the US "peace" initiative while committing to rearmament. The summit's goals are to progress negotiations on funding increased European defence spending and to reassure Kyiv of continued European support, regardless of potential peace terms from the US and Russia. US markets are shut today for Presidents Day (the desk will be running a normal schedule). Despite it being a Federal holiday in the US, remarks are due from the Fed's Harker (2026 voter), who will speak at the Global Interdependence Centre Central Banking Conference, and Fed's Bowman (voter), who will deliver remarks on the economy and regulatory outlook.


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  WEEK AHEAD: This week's major will include policy announcements from the RBA and RBNZ, FOMC meeting minutes; PMI data, as well as inflation metrics from Canada, the UK and Japan. Major corporate earnings reports are due from MDT, CDNS, ANET on Tuesday; ADI, CVNA on Wednesday; BABA, WMT, BKNG on Thursday.


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17 Feb 2025 - 08:10- EquitiesGeopolitical- Source: Newsquawk