Newsquawk Daily European Equity Opening News - 11th September 2025

ASIA

APAC stocks followed suit to the mixed performance stateside, where the S&P 500 and Nasdaq printed fresh record highs after cooler-than-expected PPI data, but with some cautiousness seen as participants braced for the incoming US CPI report. ASX 200 was subdued in the absence of any notable data or drivers, and with the downside led by healthcare, consumer discretionary and financials. Nikkei 225 returned to above the 44,000 level and extended on record highs despite mixed data. Hang Seng and Shanghai Comp were mixed with the Hong Kong benchmark dragged lower by pharmaceutical stocks after reports that the US is considering severe restrictions on medicines from China, while the mainland was underpinned after recent policy pledges by China's state planner.

Hyundai (005380 KS)/LG Energy (373220 KS) - US President Trump reportedly halted the deportation of Korean workers to encourage them to train Americans, and Seoul officials said Trump gave those at the Hyundai/LG Energy battery plant an option to stay. (FT)

SK Hynix (HXSCL) - SK Hynix has started mass production and customer supply of its mobile NAND solution ZUFS 4.1, marking the world's first for this technology. The solution, adopted in the latest smartphones, enhances on-device AI performance. Qualification was completed in June, and mass production started in July.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.16% at 5,360, Dax 40 -0.39% at 23,627, FTSE 100 -0.19% at 9,225, CAC 40 +0.15% at 7,761, FTSE MIB +0.12% at 42,060, IBEX 35 +1.29% at 15,218, PSI +0.54% at 7,729, SMI -0.60% at 12,207, AEX -0.68% at 902.

SECTORS: Industrials 0.65%, Utilities 0.52%, Financials 0.34%, Consumer Disc 0.06%, Energy 0.02%, Healthcare -0.12%, Consumer Stpl -0.64%, Materials -0.65%, IT -1.21%, Telecoms -1.21%

FTSE 100

BAE Systems (BA/ LN) - BAE Systems aims to build one warship per year within two years, reducing current construction time by six months. The company has invested GBP 300mln in facility upgrades, including GBP 200mln for the Type 26 frigate in Glasgow, adding covered bays and parallel construction lines to meet the target.

Ex-Dividends - Intertek (ITRK LN) and M&G (MNG LN) will trade without entitlement to their latest dividend pay-outs. (Newswires)

Rolls Royce (RR/ LN) - Co. signs skills and technology agreements with Western and South Australian governments. (Newswires)

Lloyds (LLOY LN) - Curve Investors are reportedly in conflict with the Curve board, and plan to object to the proposed distribution of the funds in relation to Lloyd’s potential acquisition of Curve. (Sky News)

Standard Chartered (STAN LN) - Zambia's High Court has ruled that the Co. does not need to pay USD 500k compensation to a former client who was sold a now-defaulted Chinese property bond. (Newswires)

UK RICS - UK RICS Housing Survey (Aug) -19.0 vs. Exp. -10.0 (Prev. -13.0); "Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time", says a RICS analyst. (Newswires)

UK LISA - The Treasury Committee has warned that that Ministers have "gone too far" in reforming Lifetime ISAs. (BBC)

UK Growth / Merck (MRK) - Merck scraps GBP 1bln London drug research centre in a blow to UK growth and will lay off more than 100 scientific staff, according to FT. Later Merck confirmed plans to discontinue Discovery research operations in the UK (FT)

OTHER UK COMPANIES

BROKER MOVES

Anglo American (AAL LN) downgraded to Hold from Buy at DZ Bank

Ashtead (AHT LN) downgraded to Hold from Buy at Jefferies

Compass (CPG LN) upgraded to Buy from Hold at Deutsche Bank

Hays (HAS LN) downgraded to Hold from Buy at Jefferies

DAX

Covestro (1COV GY) - ADNOC is close to finalising remedies to address EU concerns on its subsidy probe, via Reuters citing sources. The solution may include conversion of EUR 1.2bln capital increase to shareholder loan at market rates. (Reuters)

Deutsche Bank (DBK GY) - APAC CEO says the Co. is "very profitable" in China. (Newswires)

Qiagen (QIA GY) - Qiagen secured CE-IVDR certification for its full QIAstat-Dx portfolio, including an expanded meningitis/encephalitis panel covering 16 CNS infection targets. The panel adds CMV and uniquely detects Streptococcus pyogenes. Launch of the enhanced panel is expected in September 2025. (Newswires)

Volkswagen (VOW3 GY) - Co. promises to defend Europe's top spot and push back against the growth seen in Chinese EVs. The brand chief said, "we are dominant in Europe and will defend it by all means". (FT)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - Reports August passengers 6.3mln, +4.1% Y/Y. (Newswires)

BROKER MOVES

CAC

Eiffage (FGR FP) - Co. and NGE win in consortium the civil engineering contract for two water-to-energy plants, in a deal valued at EUR 132mln. Eiffage will take 60% stake and NGE 40% in the deal. (Newswires)

Kering (KER FP) - Co. and Mayhoola amend the Valentino shareholders agreement; current ownership structure of House of Valentine will not change before 2028 at the earliest. Riccardo Bellini appointed as CEO of Valentino. Mayhoola's put options on Kering postponed to 2028 and 2029. Kering's call option to acquire Mayhoola's stake in 2028 is deferred to 2029. (Newswires)

Sanofi (SAN FP) - Sanofi’s SAR402663 earns fast track designation in the US for neovascular age-related macular degeneration. (Sanofi)

Technip Energies (TE FP) - Co. buys Ecovyst's Advanced Materials & Catalysts business for USD 556mln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Citi European Equity Strategy - Upgrades: Retail to Overweight from Neutral; Financial Services to Neutral from Underweight; Telecoms to Neutral from Underweight. Downgrades: Media to Neutral from Overweight. By Region: Upgrades: Netherlands to Overweight. Downgrades: France to Neutral from Overweight. (Newswires)

Iberdrola (IBE SM) - To acquire Previ's stake in Neoenergia for BRL 11.95bln. (Newswires)

Stellantis (STLAM IM / STLAP FP) - Co. sells engine making plant in Italy to group of industrial investors. (Newswires)

Trade - EU is reportedly very unlikely to impose crippling tariffs on India or China, the main buyers of Russian oil, as US President Trump urged the bloc to do so, according to Reuters citing EU sources. EU treats tariffs in a different way to sanctions and only imposes them after an investigation that usually lasts months to establish a legally sound justification, the sources added. So far there is no talks on possible tariffs on India or China, according to an EU diplomat. Another EU source said such tariffs were risky and could be too broad, noting it was easier to sanction specific entities and open the door to delist them if they ended their business with Russia.

Defence Names - Polish PM Tusk says he has received offers of support regarding air defence after speaking with European allies

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

Sika (SIKA SW) upgraded to Neutral from Underweight at JPMorgan

SCANDINAVIA

ISS (ISS DC) - Co. won 6yr contract from Australia DoD for DKK 300mln. (Newswires)

Noba IPO - Co. intends to list its shares on Nasdaq Stockholm in Q3'25. (Newswires)

BROKER MOVES

Adecco (ADEN SW) upgraded to Hold from Underperform at Jefferies

US

CLOSES: SPX +0.31% at 6,533, NDX +0.04% at 23,849, DJI -0.48% at 45,491, RUT -0.25% at 2,376.

SECTORS: Technology +1.76%, Energy +1.76%, Utilities +1.69%, Industrials +0.73%, Materials +0.23%, Real Estate -0.07%, Financials -0.33%, Communication Services -0.87%, Health -0.91%, Consumer Staples -1.06%, Consumer Discretionary -1.58%.

Amazon (AMZN) - Morgan Stanley (MS) named Amazon a Top Pick, citing its fresh grocery push as a driver of faster growth and EBIT upside through logistics leverage, higher margins, and USD 25+ baskets. The firm maintained an Overweight rating and a USD 300 price target.

Alibaba (BABA) - Alibaba will sell USD 3.2bln in zero-coupon convertible senior notes due 2032, with about 80% of proceeds allocated to cloud infrastructure upgrades and 20% to expanding international commerce operations.

Boeing (BA) - Co. reaches tentative labour deal with striking defense union, according to Bloomberg. (Bloomberg)

Oracle (ORCL) - Co. says in Q1 26 it approved and initiated plans to restructure operational activities; total estimated restructuring costs associated with the plan are up to USD 1.6bln. Oracle (ORCL) and Open AI reportedly sign USD 300bln computing deal and is to require 4.5 GW of power capacity; vast majority of future contract revenue is set to be from Open AI, according to WSJ. (WSJ)

Texas Instruments (TXN) - Exec says they see a semiconductor recovery and data centre is the fastest recovering market. (Newswires)

11 Sep 2025 - 06:52- Geopolitical- Source: Newsquawk