Newsquawk Daily European Equity Opening News - 10th March 2025

ASIA

APAC stocks began the week mixed amid tariff-related concerns and as participants digested the softer-than-expected Chinese inflation data from over the weekend. ASX 200 eked mild gains with outperformance seen in energy, resources and materials but with the upside capped by weakness in defensives and the economic concerns related to Australia's largest trading partner. Nikkei 225 gradually shrugged off the initial indecisiveness and clawed back early losses to reclaim the 37,000 status as participants digested data releases including the slower-than-forecast growth in Labour Cash Earnings. Hang Seng and Shanghai Comp retreated amid deflationary headwinds after CPI data slipped into negative territory for the first time in over a year, while tariff concerns lingered as China's retaliatory tariffs against the US's March 4th additional tariffs took effect today.

Seven & I (3382 JT) - Co. issued a public letter to shareholders on engagement with Couche-Tard regarding antitrust issues stating it will not enter a transaction with no clear path to closing that could leave it in a value destructive limbo for multiple years. Proposed actionable paths that Alimentation Couche-Tard could take to mitigate that risk. Proposed that Alimentation Couche-Tard and 7&I immediately map out the viability of a divestiture process and identify potential buyers. (Newswires)

Toyota (7203 JT) - Co. to halt production at four lines across three plants in Japan during the second shift on March 10 and the first shift on March 11 due to an accident at supplier Chuo Spring. Affected lines include one of two lines at the Takaoka factory, two lines at Toyota Industries' Nagakusa plant, and one production line for Toyota vehicles at Daihatsu's Kyoto plant. Toyota to decide around noon on March 11 about further operations, with no prediction on the impact on production volumes at this stage. (Newswires)

TSMC (2330 TT) - Rev. (TWD) rose 43.1% Y/Y to 260bln. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -1.79% at 23,001, FTSE 100: -0.03% at 8,680, CAC 40: -0.94% at 8,121, Euro Stoxx 50: -0.76% at 5,465, AEX: +0.07% at 911, IBEX 35: +0.17% at 13,257, FTSE MIB: -0.48% at 38,593, SMI: +0.49% at 13,093, PSI: +1.95% at 6,821.

SECTORS: Telecoms 2.64%, Utilities 1.38%, Consumer Stpl 1.06%, Energy 0.78%, Healthcare -0.11%, Financials -0.44%, Materials -0.82%, IT -1.45%, Industrials -1.53%, Consumer Disc -1.87%

FTSE 100

BT (BT/ LN) – CEO has shelved its plans to ditch the BT brand, amid concerns that dropping the brand will alienate older customers, according to The Telegraph. (The Telegraph)

Hikma (HIK LN) – Co. is in talks with partners as it prepares to sell a generic version of Ozempic and Wegovy, according to the FT. The article highlights that patents on the Novo Nordisk (NOVOB DC) drug are set to expire in several countries in 2026. (FT)

Rio Tinto (RIO LN) Co. is to reportedly scrap plans for up to USD 5bln share sale after investor pushback, according to Bloomberg. Elsewhere, Palliser Capital sent the Rio Tinto board an independent appraisal report; urges Rio Tinto to press ahead with independent and transparent review of unification of its dual listed structure. (Bloomberg / Newswires)

WPP (WPP LN) – Bain Capital and WPP are looking to break up Kantar, and could be sold this year, according to FT citing sources. (FT)

UK Housing – The UK has set out plans to scale back on lengthy reviews which could delay housing developments, to help achieve its 1.5mln housing goal. (Reuters)

OTHER UK COMPANIES

WHSmith (SMWH LN) - The Guardian reports that only two buyers are left in the race to purchase the Co's high street division. (Guardian)

BROKER MOVES

BAE Systems (BA/ LN) downgraded to Hold from Buy at Berenberg

BT (BT/ LN) downgraded to Underweight from Equal Weight at Barclays

Pennon (PNN LN) downgraded to Buy from Neutral at Citi

Babcock (BAB LN) upgraded to Buy from Hold at Berenberg

DAX

Allianz (ALV GY) - Co. is reportedly in talks to acquire Viridium in a USD 3bln plus deal, via WSJ. (WSJ) Reported just before the Friday 7th close

Porsche Automobil (PAH3 GY) - Co. says impairment of Volkswagen investment at EUR -19.9bln, impairment of Porsche AG (P911 GY) investment at EUR -3.4bln. German commercial law impairment of Porsche AG investment at EUR -2.9bln. For FY24, results expected annual loss of c. EUR -1.5bln. Impairment losses at level of Porsche SE or Porsche SE group are non-cash effective. (Newswires)

OTHER GERMAN COMPANIES

Hypoport (HYQ GY) – FY (EUR): EBITDA 54.5mln (exp. 50.5mln), EPS 1.85 (exp. 1.61). FY Outlook: Revenue 640mln (exp. 510mln). (Newswires) Shares +3.7% in pre-market trade

Leg Immobilien (LEG GY) – FY (EUR): EBITDA 346.9mln (exp. 596mln). Expects housing industry to stabilise further in 2025. (Newswires)

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

Alstom (ALO FP) downgraded to Neutral from Buy at Citi

Elis (ELIS FP) upgraded to Outperform from Market Perform at Bernstein

PAN EUROPE

BBVA (BBVA SM) / Crypto – BBVA will offer Bitcoin and Ethereum trading and custody services in Spain. (Newswires)

Defence Names - Poland reportedly seeking access to nuclear weapons, via Politico. "Poland will look at gaining access to nuclear weapons and also ensure that every man undergoes military training as part of an effort to build a 500,000-strong army to face off the threat from Russia, Prime Minister Donald Tusk told the parliament on Friday. Poland's dramatic military expansion comes as fears grow across Europe that U.S. President Donald Trump is aligning with the Kremlin and turning his back on America's traditional western alliances — a geopolitical shift that Warsaw regards as a potentially existential threat. Tusk said that Poland "is talking seriously" with France about being protected by the French nuclear umbrella. President Emmanuel Macron has opened the possibility of other countries discussing how France’s nuclear deterrent can protect Europe." (Newswires)

Heathrow / Ferrovial (FER SM) – Heathrow is looking at a shorter runway as it attempts to cut expansion costs, according to the FT. (FT)

Oil Names - US President Trump's team weighs ending oil price cap if Russia talks progress, according to Bloomberg. US Treasury examining options for easing energy sanctions on Russia; only if Russia and Ukraine reach peace deal, according to Reuters citing sources. (Newswires)

Steel Names - US steelmakers urge Trump to resist metal tariff exemptions. (Newswires)

Travel – Virgin Group is looking to raise GBP 700mln in an attempt to fund a Eurostar rival, according to the FT. (FT)

BROKER MOVES

Adyen (ADYEN NA) initiated with Overweight at Cantor

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Galderma (GALD SW) downgraded to Sector Perform from Outperform at RBC

Holcim (HOLN SW) downgraded to Neutral from Buy at Citi

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.55% at 5,770, NDX +0.74% at 20,201, DJI +0.52% at 42,802, RUT +0.43% at 2,075

SECTORS: Consumer Staples -0.61%, Financials -0.58%, Consumer Discretionary -0.31%, Health +0.03%, Materials +0.25%, Communication Services +0.49%, Real Estate +0.60%, Industrials +1.20%, Technology +1.44%, Energy +1.64%, Utilities +1.84%.

10 Mar 2025 - 06:52- Geopolitical- Source: Newsquawk