Newsquawk Daily European Equity Opening News - 10th February 2025

ASIA

APAC stocks saw mixed price action as participants reflected on last Friday's NFP print and President Trump's latest tariff remarks in which he stated they will be announcing on Monday 25% tariffs on all steel and aluminium coming into the US and will announce reciprocal tariffs on Tuesday or Wednesday, while China's retaliatory tariffs against the US took effect. ASX 200 declined with the index led lower by underperformance in tech and telecoms, while miners also suffered owing to the US tariff threat although Australia will urge the US to give Australia exemption over steel tariffs. Nikkei 225 retreated at the open but the clawed back its losses as a weaker currency provided a cushion and with some optimism from Japanese PM Ishiba that Japan could avoid higher US tariffs following his recent meeting with US President Trump. Hang Seng and Shanghai Comp were positive following the recent CPI data from China which showed an acceleration and with the outperformance in Hong Kong led by notable strength in tech and telecom stocks. Nonetheless, the gains in the mainland were limited by the tariff and trade frictions after China's retaliatory tariffs against the US took effect and with officials also said to be building a list of US tech firms for potential probes.

Chinese Inflation - Chinese CPI MM (Jan) 0.7% vs. Exp. 0.8%; CPI YY (Jan) 0.5% vs. Exp. 0.4% (Prev. 0.1%); PPI YY (Jan) -2.3% vs. Exp. -2.1% (Prev. -2.3%)

China Insurers, Gold - China has launched a pilot programme allowing insurers to invest up to 1% of their assets in gold, potentially freeing up about USD 27.4bln for the precious metal, Bloomberg reports. The programme has been effective since last Friday. (Newswires)

TSMC (2330 TT) - January (TWD) rev. rose 35.9% Y/Y to 293.3bln. Co. guides Q1 rev. forecast at closer to the lower end of USD 25bln-25.8bln due to the impact of January 21st earthquake but there is no change to FY25 guidance. Estimated losses related to January earthquake was TWD 5.3bln. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.64% at 21,763, FTSE 100: -0.31% at 8,701, CAC 40: -0.43% at 7,973, Euro Stoxx 50: -0.57% at 5,326, AEX: -0.11% at 924, IBEX 35: -0.44% at 12,675, FTSE MIB: -0.18% at 37,056, SMI: -0.22% at 12,589, PSI: -0.38% at 6,510

SECTORS: Energy 0.39%, Telecoms 0.23%, Financials -0.01%, Utilities -0.04%, Consumer Stpl -0.22%, Industrials -0.31%, Materials -0.52%, Healthcare -0.79%, IT -1.18%, Consumer Disc -1.23%

FTSE 100

BP Plc (BP/ LN) - Activist investor Elliott Investment Management has acquired a significant stake in BP, aiming to boost shareholder value through transformative measures, Bloomberg reports. Elliott views BP as undervalued and underperforming; its exact stake size remains undisclosed. (Bloomberg)

Canal+ (CAN LN) – JP Morgan (JPM) has built a short position in the co., approx. 0.51% as of end-January, according to The Times. (The Times).

Legal & General (LGEN LN) – Co. is getting ready for its search of its successor to current Chairman John Kingman, according to Sky News citing sources; the sources suggest that the Chairman will step down and retire at its annual meeting next year. (Sky News)

Rolls-Royce (RR/ LN) - Rolls-Royce was awarded a USD 167.4mln US Navy contract for 40 MT7 turboshaft engines and related components for the Ship to Shore Connector Programme. (Newswires)

Standard Chartered (STAN LN) – Leads a USD 95mln financing to enhance Iraq’s power infrastructure. (Newswires)

UK Housing Names – Deputy PM Rayner has said there are “no excuses” not to build 1.5mln new homes, as promised in Labour’s manifesto, via BBC. (BBC)

UK Economy – Chancellor Reeves has called in the CEO’s of UK banks, for fresh talks on the government growth agenda, according to Sky News. (Sky News)

OTHER UK COMPANIES

ITV Plc (ITV LN) - ITV investors support exploring deals for its production arm, ITV Studios, with interest from private equity and rival studios, notably RedBird IMI, FT reports. A merger could create a GBP 3bln powerhouse, but ITV’s undervaluation and regulatory complexities complicate the decision, despite ongoing shareholder frustration, the report adds.

Shein IPO - Shein asks China suppliers to add production lines in Vietnam, according to Bloomberg. (Bloomberg)

BROKER MOVES

IAG (IAG LN) downgraded to Neutral from Buy at Citi

Spectris (SXS LN) upgraded to Overweight from Neutral at JP Morgan

DAX

Bayer (BAYN GY) - Long-term efficacy and safety of Eylea™ 8 mg with extended dosing intervals in wet age-related macular degeneration confirmed at three years. (Bayer)

BMW (BMW GY) – Co. has pledged to continue investing in combustion engines and hybrid technology, as the co. warns of a US “rollercoaster” transition into EV, according to the FT. (FT)

German Election - Germany's election front-runner Merz said he was open to reforming Germany's borrowing rules amid pressure regarding defence spending financing, according to the FT. (FT)

OTHER GERMAN COMPANIES

BROKER MOVES

Porsche AG (P911 GY) downgraded to Hold from Buy at Berenberg

CAC

Airbus (AIR FP) – Co. has postponed the development of new hydrogen aircrafts, citing slower-than-expected developments in new tech, according to the FT. (FT)

Renault (RNO FP), Nissan Motor (7203 JT), Foxconn (2354 TW) - Renault has resumed talks with Foxconn over selling its Nissan stake after failed merger discussions with Honda (HMC), FT reports. Seeking new investors, Renault is approaching tech firms, including Apple (AAPL), the report says. Nissan has first refusal rights, complicating a sale. Nissan is also seeking a tech partner amid financial struggles and planned job cuts. (FT)

TotalEnergies (TTE FP) – CEO Poyanne has said he is “ready” to help the US sell more LNG to Europe, but urged the EU to seek a long-term deal to guarantee energy security, according to the FT. (FT)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Tariff Updates - US President Trump said they will be announcing on Monday 25% tariffs on all steel and aluminium coming into the US and he will announce reciprocal tariffs on Tuesday or Wednesday which will go into effect almost immediately. Thyssenkrupp (TKA GY) / Salzgitter (SZG GY) both lower by around 9% and 4.5% respectively, in pre-market trade.

Autos - EU reportedly set to offer lower tariffs on US cars as part of a deal to avoid a trade war with Trump, via FT citing sources. It is an olive branch aimed at shielding Europe’s ailing car industry from Donald Trump’s trade measures. Bernd Lange, who heads the trade committee in the European Parliament and is familiar with talks on how to de-escalate tensions with the White House, told the FT the bloc was willing to lower its 10% import tax closer to the 2.5% charged by the US. (FT)

AI - French President Macron said France will announce during the Paris AI summit opening on Monday EUR 109bln investments in AI over the coming years. (Newswires)

Poste Italiane (PST IM) / Telecom Italia (TIT IM) - Co. is evaluating taking a potential stake in Telecom Italia, via Reuters citing sources. (Reuters)

UCB (UCB BB) - UCB advances long-term innovation strategy with new research and development facility at Braine-l’Alleud campus. Project represents an investment of over EUR 100mln. (Newswires)

BROKER MOVES

OMV (OMV AV) downgraded to Hold from Buy at HSBC

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Julius Baer (BAER SW) downgraded to Neutral from Buy at Citi

SCANDINAVIA

Proximus (PROX BB) – CEO Boutin to leave the co. and join Vodafone as CEO of Vodafone Investment & Strategy. (Newswires)

Nokia (NOKIA FH), Intel (INTC) - Nokia has appointed Justin Hotard, formerly of Intel, as its new CEO, effective April 1st, replacing Pekka Lundmark, who will step down on March 31st. Lundmark will continue as an adviser to Hotard until the end of the year. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.95% at 6,026, NDX -1.30% at 21,491, DJIA -0.99% at 44,303, RUT -1.19% at 2,280

SECTORS: Consumer Discretionary -2.52%, Communication Services -1.22%, Materials -1.19%, Technology -1.02%, Financials -0.59%, Health -0.51%, Real Estate -0.42%, Consumer Staples -0.4%, Industrials -0.34%, Utilities -0.3%, Energy -0.03%.

Autos – A group representing automakers and charging companies have urged the Trump administration to quickly restart the USD 5bln Government EV charging funding program. The group includes; General Motors (GM), Toyota (7203 JT) and others. (Newswires)

Summit Therapeutics (SMMT), Merck (MRK) - WSJ notes that Summit Therapeutics’ drug outperformed Merck’s Keytruda in a lung-cancer trial, a significant development for the biotech industry. This came after Summit licensed the drug from the Chinese biotech firm Akeso, underscoring the growing role of Chinese firms in developing innovative treatments more rapidly and cost-effectively than US counterparts, the report adds. (WSJ)

T-Mobile US (TMUS) - T-Mobile has launched Starlink in public beta. The service has been developed with Starlink, and combines satellite and mobile technology to provide connectivity across over 500k square miles of the US. (Newswires)

US/China - Chinese officials may target Broadcom (AVGO) and Synopsys (SNPS) with probes and is building a list of US tech firms for potential probes, according to WSJ. (WSJ)

US Steel (X) - US President Trump says Nippon Steel (NPSCY) is looking at an investment in US Steel (X); Japan looking at an investment into US Steel, not a purchase. (Newswires)

US-China - President Trump Friday signed an executive order delaying the closure of the de minimis trade exemption, which allows small packages from China to enter the US duty-free. The exemption has helped companies like Temu and Shein grow rapidly, sparking concerns over unfair advantages and counterfeit goods. Bloomberg reports that Chinese retailer Shein is now encouraging some of its key apparel suppliers in China to expand production in Vietnam, offering incentives like up to 30% higher procurement prices, as it works to mitigate the impact of US tariffs. (Bloomberg)

Postal names - US President Trump signs order amending the duties on de minimis imports from China; Trump says de minimis suspension for packages from China has been delayed until Commerce Dept. puts in place adequate procedures and systems to expediently process them. (Newswires)

10 Feb 2025 - 06:56- Research Sheet- Source: Newsquawk