Newsquawk Daily European Equity Opening News - 11th March 2025

ASIA

APAC stocks took their cues from the tech-led sell-off stateside after the Nasdaq suffered its worst day since 2022 amid recession fears and tariff-related concerns. ASX 200 was dragged lower by underperformance in tech and with most sectors in the red aside from energy and some defensives, while improved consumer confidence and mixed business surveys did little to inspire a rebound. Nikkei 225 retreated following disappointing Household Spending and revised Q4 GDP data from Japan. Hang Seng and Shanghai Comp conformed to the negativity amid light catalysts and as the NPC concludes today.

Indian Stocks - India is considering offering incentives to exporters amid global uncertainty, with a decision expected within a month, while Indian exports in February were impacted by US tariff threats, according to a government source cited by Reuters. (Newswires)

Auto Stocks - Chinese February vehicle sales +34.4% Y/Y (prev. +10.5% M/M); Jan-Feb vehicle sales +13.1% (prev. 11.1% Y/Y)

EUROPEAN CLOSES

CLOSES: DAX: -1.71% at 22,608, FTSE 100: -0.89% at 8,603, CAC 40: -0.90% at 8,048, Euro Stoxx 50: -1.59% at 5,381, AEX: -0.97% at 903, IBEX 35: -1.33% at 13,078, FTSE MIB: -0.93% at 38,235, SMI: -0.49% at 13,029, PSI: -1.19% at 6,740

SECTORS: Utilities 1.26%, Consumer Stpl 0.77%, Energy 0.67%, Telecoms 0.52%, Consumer Disc -0.65%, Materials -1.07%, Financials -1.85%, Healthcare -1.97%, Industrials -2.14%, IT -3.62%

FTSE 100

Standard Chartered (STAN LN) – Launched an exclusive investment club for ultra-wealthy clients. (Newswires)

UK Retail - UK BRC Retail Sales YY (Feb) 0.9% (Prev. 2.5%). Total Sales YY (Feb) 1.1% (Prev. 2.6%); Chief Executive said “weaker growth reflected low demand for spring fashions as February's weather remained wintry and repeated complaints about higher employer social security and packaging taxes that take effect next month”. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Burberry (BRBY LN) upgraded to Outperform from Neutral at BNP Paribas

Glencore (GLEN LN) initiated with Buy at Berenberg

LSEG (LSEG LN) upgraded to Outperform from Neutral at Oddo

Lloyds (LLOY LN) downgraded to Market Perform from Outperform at Keefe

Metro (MTRO LN) upgraded to Buy from Hold at Peel Hunt

DAX

Henkel (HEN GY) – FY (EUR): Revenue 21.6ln (exp. 21.52bln, prev. 21.5bln Y/Y). Guides initial FY25 adj. EPS increase low to high single digit % Y/Y. To launch a EUR 1bln share buyback program; purchasing up to EUR 800mln preferred shares and EUR 200mln in ordinary shares. (Newswires)

Hellofresh (HFG GY) – Expects: FY24 (EUR): Revenue 7.66bln (prev. 7.6bln Y/Y), Adj. EBITDA 399mln (prev. 447.6mln Y/Y). In 2025: Expects EBIT 450-500mln. Estimates a decrease in constant currency rev. of Hellofresh between 3-8%. Expects its North American segment rev. overall to decline more meaningfully than rev. Notices somewhat weakening consumer confidence in North America. (Newswires)

Volkswagen (VOW3 GY) - FY (EUR): Revenue 324.7bln (exp. 321.7bln), Op. Profit 19.06bln (exp. 17.92bln). 2025 Guidance: Op. RoS 5.5-6.5% (exp. 6.2%); proposes dividend of EUR 6.30/shr. Expects challenges from an environment characterised by political uncertainty, increasing trade restrictions, geopolitical tensions and increasing competition in 2025. Expects sales rev. to exceed the prior year's figure by 5% in 2025. Automotive net clean net cash flow 2-5bln (exp. 5.2bln). (Newswires)

SAP (SAP GY) - Oracle (ORCL) shares fell 3.3% post-earnings after reporting underwhelming numbers.

OTHER GERMAN COMPANIES

Gea (G1A GY) – FY (EUR): Revenue 5.42bln (exp. 5.38bln), Adj. EBITDA 837.3mln (prev. 774mln Y/Y). 2025: Guides Organic Revenue +1-4%. (Newswires)

BROKER MOVES

BASF (BAS GY) downgraded to Reduce from Buy at Baader

CAC

L'Oreal (OR FP) - Co. is recalling all lots of its Effaclar Duo acne treatment in the US due to contamination with benzene, a known carcinogen; the FDA has yet to comment on whether other acne treatments will be recalled. (Bloomberg)

Renault (RNO FP) - Chairman Senard says if Nissan (7201 JT) sets up partnerships suitable for Renault, they have no problem with that. Honda's (HMC) offer on Nissan did not suit Renault. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Technip Energies (TE FP) downgraded to Neutral from Buy at Citi

PAN EUROPE

Airliners - Delta Air Lines (DAL) cut Q1 EPS guidance to USD 0.30-0.50 (exp. 0.83, prev. 0.70-1.00). (Newswires)

Beverage Stocks - European Commission carries out unannounced antitrust inspections in non-alcoholic drinks sector and asks for information in personal care sector; is investigating possible restrictions on the trade of goods in the single market and market segmentation. (Newswires)

Defence Stocks - German Green party co-leader says they are hopeful of a defence deal occurring this week. (Newswires) Follows on from reporting overnight via Bloomberg that the Greens had made their own proposal to loosen defence spending.

German Grid - Dutch state-owned grid operator Tennet Holding has begun seeking investors for its German high-voltage grid, valued at EUR 27bln including debt, Bloomberg reports. The privatisation process is moving forward, with investors having until March 25th to express interest. (Bloomberg)

Iberdrola (IBE SM) – Co. is looking for a partner willing to purchase a minority stake in its 1 GW renewables portfolio, via Reuters citing sources. (Reuters)

Nexi (NEXI IM) – Co. signed a EUR 2.9bln financing deal. (Newswires)

US-China - US and China discuss a Trump-Xi summit for June, WSJ reported. Washington and Beijing have begun discussions about a potential "birthday summit" in June in the US between President Trump and Chinese leader Xi Jinping, according to people familiar with the matter. (WSJ)

UniCredit (UCG IM) / Commerzbank (CBK GY) – Commerzbank said Bank of America (BAC) held a 10.16% stake in the bank. Elsewhere, a spokesperson for the German Government has expressed its anger and rejection of “unfriendly and uncoordinated” behaviour from UniCredit. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW), Novo Nordisk (NOVOB DC) - Roche has hired Novo Nordisk senior executive Morten Lammert as it prepares to enter the competitive obesity drug market, Bloomberg reports. Lammert will join Roche as the global therapeutic area head for cardiovascular, renal, and metabolism on June 1st. The newly created role focuses on the commercial side of the market. (Bloomberg)

Novartis (NOVN SW) - CEO sees radioactive cancer drugs becoming a USD 10bln business, via Nikkei. (Nikkei)

OTHER SWISS COMPANIES

Galencia (GALE SW) – FY (CHF): Adj. EBIT 211mln (exp. 209.4mln). 2025: Guides Revenue Growth +3-5%. Plans a dividend for 2025 at least at the prior year's level. (Newswires)

Partners (PGHN SW) – FY24 (CHF): Net Income 1.13bln (prev. 1bln Y/Y), Revenue 2.14bln (exp. 2.09bln). Affirms guidance. (Newswires)

BROKER MOVES

Lindt (LISN SW) downgraded to Hold from Buy at Stifel

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX -2.7% at 5,615, NDX -3.81% at 19,431, DJI -2.08% at 41,912, RUT -2.72% at 2,019.

SECTORS: Technology -4.34%, Consumer Discretionary -3.90%, Communication Services -3.54%, Financials -2.29%, Materials -2.12%, Industrials -1.60%, Health -1.10%, Real Estate -1.02%, Consumer Staples -0.69%, Energy +0.95%, Utilities +1.04%

Apple (AAPL) - Reportedly readies major software over haul for iPhone, iPad and Mac, according to Bloomberg. (Newswires)

AT&T (T) - Expects to report strong free cash flow in Q1 and expects receipt of more than USD 2bln in cash proceeds and payments from previously announced transactions while it remains on track to achieve its 2025 consolidated financial guidance. Continues to expect full-year adjusted EPS of USD 1.97-2.07. Expects first-quarter adjusted EPS of approximately USD 0.48 or higher. (Newswires)

Big Tech - Apple (AAPL) and Meta (META) likely to face modest fines, not massive fines, for allegedly breaching EU's Digital Markets Act, according to Reuters citing sources. (Newswires)

Delta Air Lines (DAL) - Delta cut its Q1 EPS guidance to USD 0.30-0.50 (exp. 0.83; prev. saw 0.70-1.00), and lowered revenue growth expectations to +3-4% (from +7–9%). The revision reflects weakened domestic demand due to macroeconomic uncertainty, though premium, international, and loyalty revenue remain stable, it said. Shares fell over 11% in extended trading.

Illumina (ILMN) - Illumina is lowering its 2025 earnings outlook to USD 4.50/shr (exp. 4.51), the low end of its prior forecast, and is cutting USD 100mln in spending after China banned its gene-sequencing machine sales. Illumina said it "respects MOFCOM's decision and will continue to comply with all applicable laws and regulations wherever the company operates," and will continue expanding its multiomics portfolio "with new roadmap technologies spanning genomics, spatial, single cell, and methylation, as well as a new multimodal data analysis platform."

Oracle (ORCL) - Shares fell 3.2% in extended trading after it missed Q3 earnings and revenue estimates, and Q4 guidance fell short of expectations, citing investment losses. It reported Q3 adj. EPS 1.47 (exp. 1.49), Q3 revenue USD 14.13bln (exp. 14.39bln), Q3 adj. operating margin 44% (exp. 43.6%). Q3 Cloud revenue (IaaS plus SaaS) USD 6.2bln (exp. 6.3bln), and +25% in constant currency (exp. +26.5%); Q3 Cloud Infrastructure revenue (IaaS) USD 2.7bln (exp. 2.71bln) (+51% FXN vs exp. +54.2%); Cloud Infrastructure revenue (IaaS) in constant currency: +51% (exp. +54.2%); Q3 Cloud services and license support revenue USD 11.01bln (exp. 11.18bln). Oracle raised its dividend +25% to USD 0.50/shr. Sees Q4 EPS between 1.62-1.66 (exp. 1.78), and sees Q4 revenue growth of +9-11%; sees Q4 cloud revenue growth of +24-28%. Sees FY26 revenue growth of +15% (exp. +14.1%); sees FY capex at USD 16bln.

11 Mar 2025 - 06:52- Exclusive- Source: Newsquawk