Newsquawk Daily European Equity Opening News - 11th June 2025

ASIA

APAC stocks were mostly higher amid the recent trade-related optimism stemming from the US-China trade talks in London which have now concluded and where officials reached a framework to implement the Geneva consensus and outcome from the recent Trump-Xi call. ASX 200 advanced to print a fresh record high in early trade before paring some of the gains amid little fresh catalysts. Nikkei 225 marginally benefitted from recent currency weakness and softer-than-expected PPI data. Hang Seng and Shanghai Comp gained following the progress in US-China trade talks, albeit with the upside in the mainland capped given the lack of solid details.

TRADE

US Commerce Secretary Lutnick said they have reached a framework to implement the Geneva consensus; will return to the US to see if Trump approves.

Chinese Vice Commerce Minister Li Chenggang said the two sides reached a consensus regarding the Geneva meeting; will report on the framework to leaders.

US and Mexico are near a deal to cut steel duties and cap imports, while President Trump would need to sign off on a US-Mexico agreement, according to Bloomberg.

China, Mexico, EU, and Japan urged the Trump administration not to impose new national security tariffs on imported planes and parts, while Boeing (BA) urged the Trump administration to ensure tariff-free treatment for aeroplanes and parts as a condition of any new trade deal.

A US federal appeals court ruled that President Trump's global tariffs can remain in effect for now, extending a temporary reprieve while the administration challenges a lower court ruling that blocked the tariffs. The Justice Department argued ongoing trade negotiations outweigh the economic harm to small businesses.

EUROPEAN CLOSES

BOURSES: DAX: -0.58 % at 24,034, FTSE 100: +0.24 % at 8,853, CAC 40: +0.17 % at 7,804, Euro Stoxx 50: -0.15 % at 5,414, AEX: +0.70 % at 939, IBEX 35: +0.06 % at 14,259, FTSE MIB: -0.63 % at 40,208, SMI: -0.12 % at 12,352, PSI: +0.94 % at 7,495.

SECTORS: Energy 2.81%, Healthcare 1.24%, Consumer Disc 0.83%, Materials 0.64%, Utilities 0.57%, IT 0.31%, Consumer Stpl -0.04%, Industrials -0.51%, Telecoms -0.68%, Financials -1.50%.

FTSE 100

Aviva (AV/ LN) -- The Capital Group reports a 5.04% stake in the Co. as of June 6th. (Newswires)

BT (BT/A LN) - Co. is reportedly exploring a takeover of TalkTalk (TALK LN), via Telegraph citing sources; amid concerns that BT's business could be impacted by the pressures on TalkTalk's finances and implications for the broadband market. (Telegraph)

Construction/Housing Names - UK construction firms have reportedly ramped up production and investment following the Labour Party’s pledge to build 1.5mln new homes, according to the Guardian. (Guardian)

Shell (SHEL LN) - Canadian units decision on Phase Two of LNG Canada is dependent on other portfolio opportunities; first cargoes expected to ship in the middle of 2025. (Newswires)

WPP (WPP LN) - Publicis (PUB FP) has secured the Mars advertising account from WPP, worth USD 1.7bln. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

DHL (DHL GY) - Co. is to invest over EUR 500mln in the Middle East, focus on Saudi Arabia and the UAE. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Bayer (BAYN GY) upgraded to Buy from Hold at HSBC

Deutsche Boerse (DB1 GY) downgraded to Neutral from Buy at UBS -1.2% in pre-market trade

CAC

EssilorLuxottica (EL FP) - Snap (SNAP) intends to begin the sale of its first set of augmented reality glasses in 2026. (Verge) Of note for EssilorLuxottica given their tie-up with Meta's (META) Ray-Ban smart glasses.

OTHER FRENCH COMPANIES

Fnac Darty (FNAC FP) - Strategic plan, 2030: targets 4mln subscribers, operating margin over 3%, cumulative FCF over EUR 1.2bln, raises dividend to a minimum of EUR 1/shr, open 150 new stores. (Newswires)

SES (SESG FP) - European Commission has unconditionally approved the Co's takeover of Intelsat. (Newswires)

BROKER MOVES

Safran (SAF FP) downgraded to Neutral from Buy at Citi

PAN EUROPE

Auto Names - Scania is reportedly in talks to construct a consortium to acquire the R&D lab of Northvolt, via FT. (FT) Of note for BMW (BMW GY) and Volkswagen (VOW3 GY) given their stakes in Northvolt. Elsewhere, US President Trump will on Thursday sign three resolutions blocking California's EV and diesel engine mandates, including revoking EPA waivers allowing 80% EV sales by 2035, Reuters reports. Auto industry groups back the move, citing unachievable targets. Governor Newsom plans legal action. (Newswires)

Inditex (ITX SM) - Q1 (EUR): Sales 8.3bln (exp. 8.35bln), EBITDA 2.4bln (exp. 2.42bln), EBIT 1.64bln (exp. 1.65bln), gross margin 60.6%. Proposes a dividend of 1.68/shr. 2025 Guidance: stable gross margin, -3% FX impact on sales & ordinary capital expenditure around 1.8bln. (Newswires)

Telefonica (TEF SM) - Co. is reportedly preparing to invest in data centres and cyber security, as part of a move to convince regulators to approve deals in the sector. (FT)

UCB (UCB BB) - Bimzelx three-year data shows lasting efficacy in psoriatic arthritis and axial spondyloarthritis. (Newswires)

BROKER MOVES

SMI

Swiss Banks - The US and Switzerland ended a long impasse over access to investment client data, allowing the SEC direct information access and lifting a moratorium on approving new Swiss investment advisers, FT reports. The move follows increased scrutiny of Swiss firms and reflects rising US demand for offshore asset management amid regulatory uncertainty. (FT)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Orkla (ORK NO) - Evaluating strategic options for Orkla India. (Newswires)

Outokumpu (OUT1V FH) - New strategy: to invest EUR 200mln on a new line in Finland, to close two lines in Germany. Will record a EUR 35mln adjustment in Q2. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.55% at 6,039, NDX +0.66% at 21,942, DJI +0.25% at 42,867, RUT +0.56% at 2,156

SECTORS: Energy +1.77%, Consumer Discretionary +1.19%, Health +1.09%, Communication Services +1.08%, Real Estate +0.83%, Materials +0.56%, Technology +0.46%, Utilities +0.19%, Consumer Staples +0.16%, Financials +0.06%, Industrials -0.44%

GameStop Corp (GME) - Q1 revenue -17% Y/Y to USD 732.4mln (exp. 754.24mln), with Q1 hardware and accessories sales -32% Y/Y; Q1 adj. EPS 0.17 (exp. 0.04), Q1 net profit USD 44.8mln (vs -32.3mln Y/Y), aided by cost cuts. Reported a USD 10.8mln operating loss, including USD 35.5mln in impairment charges. It purchased 4,710 Bitcoin (BTC) between May 3rd and June 10th for cash.

Salesforce (CRM) - Salesforce-owned Slack blocked other software firms from searching or storing Slack messages via its API, citing updated terms to safeguard customer data, The Information reports. The change prevents apps like Glean from indexing Slack data for enterprise AI, and comes amid increased scrutiny of AI firms’ handling of personal and customer data.

Tesla (TSLA) - Elon Musk announced a tentative June 22nd launch for Tesla’s robotaxi service in Austin, with full self-driving cars from June 28th. The initial rollout includes 10-20 driverless Model Ys within geo-fenced areas. Musk predicts 1,000 robotaxis within months and over 1mln by end-2026.

11 Jun 2025 - 06:45- Data- Source: Newsquawk