Newsquawk Daily European Equity Opening News - 11th February 2025

ASIA

APAC stocks were ultimately mixed after the tech-led gains on Wall St and as participants digested US President Trump's 25% tariffs on steel and aluminium which take effect from March 12th, while Japanese markets were closed for a holiday. ASX 200 closed flat with gold stocks underpinned after the precious metal extended on its record highs, while the tech sector took impetus from the strength seen in its US counterpart. Hang Seng and Shanghai Comp were subdued following US President Trump's latest tariff actions, while he reiterated they will do reciprocal tariffs in the next two days and is also looking at tariffs on cars, pharmaceuticals and chips with meetings to take place over the next four weeks. Furthermore, Hong Kong criticised the US tariffs and will file a complaint on US tariffs to the WTO, as well as claimed that the US has completely ignored the city's status as a separate customs territory from China.

EUROPEAN CLOSES

CLOSES: DAX: +0.67% at 21,933, FTSE 100: +0.77% at 8,768, CAC 40: +0.42% at 8,006, Euro Stoxx 50: +0.65% at 5,360, AEX: +0.83% at 932, IBEX 35: +0.19% at 12,713, FTSE MIB: +0.50% at 37,242, SMI: +0.23% at 12,633, PSI: +0.83% at 6,564.

SECTORS: Energy 1.35%, IT 1.03%, Industrials 0.94%, Consumer Disc 0.93%, Telecoms 0.86%, Utilities 0.32%, Materials 0.26%, Financials 0.22%, Consumer Stpl 0.21%, Healthcare 0.10%

FTSE 100

UK Retail - Barclays UK January consumer spending rose 1.9% Y/Y which is the largest rise since March 2024 and Consumer Sentiment at +21% vs +26% in December which is the lowest since the series began in April 2024. UK BRC Total Sales YY (Jan) 2.6% (Prev. 3.2%); BRC Retail Sales YY (Jan) 2.5% (Prev. 3.1%); "While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month". On increased employer social security contributions, says; "Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores". (Newswires)

UK Steel - UK seeks clarity on Trump tariffs in a bid to avoid steel threat, according to Bloomberg. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

Fevertree (FEVR LN) resumed with Hold at Peel Hunt

DAX

Merck (MRK GY) - Co. confirms discussions with SpringWorks Therapeutics (SWTX) on potential acquisition. (Newswires)

OTHER GERMAN COMPANIES

Cecenomy (CEC GY) - Q1 (EUR): Net Income 148mln (exp. 147mln), Adj. EBIT 279mln (exp. 282mln), Revenue 7.57bln (exp. 7.24bln). Affirms guidance. Aims to remain attractive to shareholders/customers. (Newswires)

TUI (TUI GY) - Q1 (EUR): Underlying EBIT 50.9mln (exp. 29.9mln), Revenue 4.87bln (exp. 4.58bln). Affirms guidance. Notes of positive trading momentum for winter 24/25 and summer 2025. (Newswires)

BROKER MOVES

CAC

Kering (KER FP) - Q4 (EUR): Sales 4.39bln, -12% (exp. -12%); EBITDA 4.67bln (exp. 4.31bln), Gucci Sales -24% (exp. -19%), Recurring Net 1.31bln (exp. 1.33bln). CEO: Driven the Co. to the point of stabilisation, from which growth will gradually resume. CFO: Sequential improvement of mainland China sales of around 6ppts in Q4. Improvement in the US market, around 6ppts in Q4. Made progress on costs. Looking at further reducing debt via real estate deals. (Newswires)

Michelin (ML FP) - CEO Menegaux says the Co. could "reorganise its priorities" to increase capacity at its US facilities if US President Trump introduces import duties. (FT)

OTHER FRENCH COMPANIES

BROKER MOVES

EssilorLuxottica (EL FP) upgraded to Buy from Hold at Jefferies

PAN EUROPE

Trump Tariffs - US President Trump signs proclamation to reimpose 25% tariff on steel imports and says we are doing a 25% tariff on steel and aluminum, adds no exceptions or exemptions. Says also looking at tariffs on cars, pharmaceuticals and chips and will hold meetings over the next four weeks, will do reciprocal tariffs over the next two days. Says: Tariffs on metals could go higher. Does not mind if other countries retaliate.

ams Osram (AMS SW) - Q4 (EUR): Adj. EBIT 60mln (exp. 57.2mln), Revenue 882mln (exp. 861mln). Guides Q1 Revenue 750-800mln, adj. EBITDA margin 14.5-17.5%. First small signals from industrial and medical markets might indicate that the weakness has reached its bottom. (Newswires)

DSM-Firmenich (DSFIR NA) - Co. to divest its share in Feed Enzyme Alliance to Novonesis (NSISB DC) for EUR 1.5bln. (Newswires)

Poste Italiane (PST IM) - Co. to accept Banco BPM's (BAMI IM) public tender offer on Anima Holding (ANIM IM). Commitment subject to certain conditions, particularly that offer price is increased, aligned to current market prices. (Newswires)

Maersk (MAERSK DC) - Temporary suspension of operations at Hutchinson Port Delta II in Rotterdam, on 10th Feb, due to unplanned strike action. (Newswires)

MedioBanca (MDBI IM) - Q2 (EUR): Revenue 983.1mln (exp. 901mln), Net profit 329.7mln (exp. 305mln). Loan loss provisions 66.2mln (exp. 72mln). Fees 315.5mln (exp. 255mln). Net interest income 493.9mln (exp. 485mln). (Newswires)

UniCredit (UCG IM) - Q4 (EUR): Net Income 1.97bln (exp. 1.62bln), Revenue 6bln (exp. 5.89bln), NII 3.65bln (exp. 3.45bln). Sees FY25 shareholder distribution above FY24. Sets FY Net Revenue guidance to above EUR 23bln; guidance for Net Profit and ROTE in line with FY24. Sees NII in 2025 slightly down and fees up mid-single digit. Interim FY25 cash dividend is expected to be paid in Nov 2025, amounting to 45% of total expected FY25 cash dividend. Del Vecchio family Delfin is looking at selling its stake in the co., according to Corriere Della Sera citing sources. (Corriere Della Sera)

BROKER MOVES

Bper Banca (BPE IM) downgraded to Neutral from Buy at Citi

Citi European Equity Strategy - Downgrades: Basic Resources to Neutral; Luxury to Neutral; Food Beverage & Tobacco to Underweight. Upgrades: Healthcare to Overweight; Financial Services to Overweight; Chemicals to Neutral. (Newswires)

SMI

Novartis (NOVN SW) - Co. to buy Anthos Therapeutics for USD 925mln upfront. Expected to close H1'25. (Newswires)

UBS (UBSG SW) - CEO says very good momentum in terms of pipeline and making good progress in increasing market share. Expect more clarity on capital requirements in May. Need to narrow gap to competitors in terms of pre-tax profit measures. Still see China and Hong-Kong as growth opportunity. Asia is still an absolute engine of growth, albeit more volatile. (Newswires)

OTHER SWISS COMPANIES

SGS (SGSN SW) - FY24 (CHF): Adj. BITDA 1.48bln (exp. 1.47bln, Narrows FY25 organic revenue +5-7% (prev. "mid to high single digit growth"). (Newswires)

BROKER MOVES

Julius Baer (BAER SW) downgraded to Hold from Buy at Kepler

SCANDINAVIA

Kemira (KEMIRA FH) - Q4 (EUR): Revenue 723.7mln (prev. 808.8mln Y/Y). (Newswires)

Stora Enso (STERV FH) - Q4 (EUR): Adj. EPS -0.81 (exp. -0.80), Adj. EBIT 121mln (exp. 120mln), Revenue 2.32bln (exp. 2.21bln). (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.67% at 6,066, NDX +1.23% at 21,757, DJIA +0.38% at 44,470, RUT +0.36% at 2,288

SECTORS: Financials -0.79%, Health -0.06%, Real Estate +0.19%, Consumer Discretionary +0.50%, Materials +0.52%, Communication Services +0.58%, Consumer Staples +0.78%, Industrials +0.91%, Utilities +1.07%, Technology +1.45%, Energy +2.16%.

Axcelis Technologies (ACLS) - Q4 EPS 1.54 (exp. 1.25), Q4 revenue USD 252.4mln (exp. 245mln). Anticipate 2025 will see a near term cyclical digestion period, as customers absorb the investments they've made into mature node capacity over the past few years - particularly in China. Sees Q1 EPS of 0.38c (may not compare vs consensus 1.02), and sees Q1 revenue of USD 185mln (exp. 221.6mln).

Coty Inc (COTY) - Coty's shares slipped in extended trading after it cut its annual profit forecast and reported a fall in quarterly revenue due to weaker cosmetics demand, retail closures, and reduced beauty inventory. Execs said it is adjusting production and sourcing strategies amid inflation concerns and potential tariff impacts. It reported Q2 adj. EPS 0.11 (exp. 0.21), Q2 revenue USD 1.67bln (exp. 1.72bln), Q2 gross margin 66.7% (exp. 65.6%). By region: Q2 Americas net revenue -7.2% Y/Y at USD 638.6mln (exp. 678.5mln); EMEA revenue +1.7% Y/Y at USD 839.8mln (exp. 840mln), APAC revenue -11% Y/Y at USD 191.5mln (exp. 199.8mln). By segment: Q2 Prestige channel net revenue USD 1.12bln (exp. 1.12bln), consumer beauty net revenue USD 553.8mln (exp. 592.1mln). Sees FY adj. EBITDA 1.12-1.13bln (exp. 1.18bln), and FY adj. EPS 0.50-0.52 (exp. 0.51).

Lattice Semiconductor (LSCC) - Shares surged almost 14% afterhours following results, leadership change announcements. Q4 adj. EPS 0.15 (exp. 0.19), Q4 revenue USD 117.4mln (exp. 117.1mln). Announces new executive leadership team appointments; Lorenzo Flores joins as CFO; Nicole Singer as Chief People Officer; Erhaan Shaikh to promoted SVP of Worldwide Sales; Tonya Stevens becomes Chief Accounting Officer. Exec said it is starting to see signs of improvement in the broader market environment, as evidenced by its stronger backlog and improved book to bill, which bodes well for the business moving forward. Sees Q1 revenue between USD 115-125mln (exp. 118.8mln), and sees Q1 adj. EPS between 0.20-0.24 (exp. 0.21).

OpenAI - Elon Musk's investor group has offered USD 97.4bln to acquire OpenAI's controlling nonprofit, escalating his conflict with CEO Sam Altman, WSJ reports. Musk's lawyer confirmed the unsolicited bid was submitted to OpenAI’s board on Monday. OpenAI's board has indicated it will reject Elon Musk's takeover bid, according to The Information, calling it "embarrassing."

Qualcomm (QCOM) - Global Affairs President Alexande Rogers sold 19.3K shares on February 10th for a total USD 3.3mln.

Phillips 66 (PSX) - Elliott Investment Management has acquired a stake worth over USD 2.5bln in Phillips 66, and is pushing for operational changes, including the sale or spin-off of its midstream business. Elliott is also calling for further board changes and cost-cutting measures to boost the company's stock, Reuters reports.

Tesla (TSLA) - Tesla inaugurated a new energy storage gigafactory in Shanghai, expanding its global footprint. CEO Elon Musk was absent from the event. Separately, director Kimbal Musk sold 75k shares on February 6th, in two transactions priced between USD 367.868-368.43/shr. (Newswires)

Vertex Pharmaceuticals - Vertex raised its 2025 revenue forecast, citing strong cystic fibrosis drug sales and the launch of its non-opioid painkiller, Journavx. Q4 revenue exceeded estimates, while adj. profit missed expectations, seeing shares slip in afterhours trading. It reported Q4 adj. EPS 3.98 (exp. 4.03), Q4 revenue USD 2.91bln (exp. 2.78bln). COO Stuart Arbuckle is to retire and CFO Charlie Wagner is to assume additional role of COO. Sees FY25 revenue between USD 11.75bln-12.00bln (exp. 11.84bln).

11 Feb 2025 - 06:53- MetalsResearch Sheet- Source: Newsquawk