Newsquawk Daily European Equity Opening News - 13th March 2025

ASIA

APAC stocks were subdued as risk appetite soured despite the mostly positive handover from Wall St where sentiment was underpinned after softer-than-expected CPI data but with the upside capped as concerns lingered. ASX 200 was dragged lower by consumer stocks, energy and financials, with the consumer sector pressured as electricity bills are to jump as much as 9% in a cost-of-living blow following the energy regulator’s price ruling. Nikkei 225 initially outperformed and briefly reclaimed the 37,000 level before wiping out the gains. Hang Seng and Shanghai Comp gradually deteriorated following a tepid PBoC liquidity operation and with participants unfulfilled by the lack of policy action so far by the central bank post-NPC, while reports that Hong Kong is mulling reducing thresholds for purchasing the most expensive stocks did little to spur a bid.

Chinese stocks - Hong Kong mulls reducing thresholds for purchasing the most expensive stocks, according to Bloomberg

EUROPEAN CLOSES

CLOSES: DAX: +1.52% at 22,668, FTSE 100: +0.53% at 8,541, CAC 40: +0.59% at 7,989, Euro Stoxx 50: +0.97% at 5,361, AEX: +1.07% at 899, IBEX 35: -0.73% at 12,784, FTSE MIB: +1.61% at 38,307, SMI: +1.57% at 12,874, PSI: +0.36% at 6,763

SECTORS: Industrials 1.79%, Financials 1.60%, IT 1.58%, Energy 0.98%, Materials 0.80%, Healthcare 0.52%, Telecoms -0.04%, Utilities -0.10%, Consumer Stpl -0.21%, Consumer Disc -0.46%

FTSE 100

BAE Systems (BA/ LN) - BAE is in early talks with Japanese defence groups about developing drones to complement a new fighter jet being co-developed with Japan and Italy, FT reports. (FT)

Ex-dividends - Endeavour Mining (EDV LN), NatWest (NWG LN), Anglo American (AAL LN), Entain (ENT LN) will trade without entitlement to their latest dividend payout. (dividenddata)

HSBC Holdings (HSBA LN) - HSBC is placing some of its investment bankers on short-term retention agreements (between 3-6 months) as part of an overhaul under new CEO Georges Elhedery, according to Bloomberg. The move comes as the bank winds down certain investment-banking units, with bankers remaining to complete ongoing client mandates across Europe, Asia, and the Americas. (Bloomberg)

Rio Tinto (RIO LN) - JP Morgan (JPM) reports becoming a substantial shareholder in Rio Tinto with 5.36% of voting power. Elsewhere, Co. and Edify Energy signed a landmark solar and battery agreement for Rio Tinto’s Gladstone operation. It was separately reported that JPMorgan reportedly holds a 5.36% stake in Rio Tinto for clients and Rio Tinto priced USD 9.0bln of notes, while Guinea’s Mining Minister said the government launched an investigation into safety at the Simandou project and at least 13 workers have died in construction of the iron project since June 2023, according to source and accident reports. (Newswires)

UK Housing - UK RICS Housing Survey (Feb) 11.0 vs. Exp. 20.0 (Prev. 22.0, Rev. 21); House Price Balance (Feb) 11 vs Exp. 20 (Prev. 21); This represents a six-month low. RICS Chief Economist said the slowdown could be linked to inflation pressures/geopolitical uncertainty. Though added that "looking beyond the next few months, sales activity is seen as likely to resume an upward trend with prices also moving higher". (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

BMW (BMW GY) - Co. to price protect Mexican-built models from tariffs until May 1st, WSJ reports. BMW's 2 series coupe also built in Mexico and to get price protection. BMW to absorb tariff costs on 3 series Sedans built in Mexico. (Newswires)

DHL Group (DHLGY) - DHL plans to hire workers in locations like Malaysia if the US removes a tax exemption for lower-value shipments, according to its CEO, who said the company would adjust its operations to meet changing regulations. (Newswires)

HelloFresh (HFG GY) - Q4 (EUR): Revenue 1.8bln (exp. 1.81bln), AEBITDA 164mln (exp. 146mln). Outlook does not reflect impact of prolonged tariffs which could impact AEBITDA. (Newswires)

Hannover Re (HNR1 GY) - FY (EUR): Reinsurance Revenue 26.4bln (prev. 24.5bln Y/Y), EPS 19.31 (exp. 20.07), EBIT Margin 14.4%, RoE 21.2%. Proposed dividend of EUR 9/shr. Ordinary dividend is exp. to increase Y/Y over the 2024-26 strategy cycle. Guidance for 2025 confirmed: Group Net Income around 2.4bln. (Newswires)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - Feb Frankfurt Airport Passengers 8.4mln, +0.2% Y/Y. (Newswires)

Hella (HLA GY) - FY (EUR): Currency Adj. Sales 8.1bln, +1.3% Y/Y. Continuation of dividend policy at EUR 0.95/shr. (Newswires)

Hugo Boss (BOSS GY) - FY (EUR): Revenue 4.3bln (exp. 4.25bln), EBIT 361mln (exp. 361mln), Proposed dividend of EUR 1.40/shr. Notes that EBIT figure was impacted by retail impairments. Outlook 2025: Sales between 4.2-4.4bln (exp. 4.44bln), EBIT 380-440mln (exp. 417mln), broadly in line with prior year. Sees continued macroeconomic and geopolitical volatility in 2025. (Newswires)

K+S (SDF GY) - FY (EUR): EBITDA 558mln (exp. 542mln), Revenue 3.7bln (exp. 3.61bln); cuts dividend to EUR 0.15 (prev. 0.90). 2025: Guides FY25 EBITDA 500-620mln. (Newswires)

BROKER MOVES

Puma (PUM GY) downgraded to Neutral from Outperform at BNP Paribas

CAC

Airbus (AIR FP) - Omni and Airbus to support entry into service of H160 for Petrobras. Next generation of helicopter exp. to begin operations in May 2025. (Newswires)

LVMH (MC FP) - Co. announces Damien Bertrand is appointed Deputy CEO of Louis Vuitton as of June 10th, 2025. Frédéric Arnault appointed CEO of Loro Piana as of June 10th, 2025. Bertrand will become member of LVMH executive committee in January 2026. Pierre-Emmanuel Angeloglou is appointed deputy CEO of Christian Dior Couture. New CEO of Fendi will be announced shortly. Sephora CEO Guillaume Motte has taken direct control of the company’s operations in China following the resignation of Alia Gogi, the former president of Sephora Asia, Bloomberg reports. The leadership change highlights the importance of the Chinese market to LVMH’s second-largest brand amid challenges in appealing to local consumers. (Newswires / Bloomberg)

OTHER FRENCH COMPANIES

Euronext (ENX FP) - Scales up its SAAS offering by acquiring AdminControl, valued at EUR 398mln; exp. to be completed by Q2'25. (Newswires)

BROKER MOVES

Valeo (FR FP) downgraded to Neutral from Outperform at BNP Paribas

PAN EUROPE

AB InBev (ABI BB) - Budweiser is to cut thousands of jobs as it seeks to reduce costs by 15%, via Bloomberg; jobs cuts attributed to dwindling demand in China. (Bloomberg)

Copper Prices - Copper prices are expected to reach USD 10,000/ton within the next three months, according to Citigroup. Its forecast is underpinned by a tight global market, with recent price hikes following President Trump's probe into copper imports, which triggered a rush of shipments to the US ahead of potential tariffs, Bloomberg reports. (Bloomberg)

Defence - German Defence Minister says in Europe they want to procure more defence equipment and do it jointly; urgently need unified certification process for military equipment in Europe. (Newswires)

Generali (G IM) - FY24 (EUR): Adj. Net Income 3.77bln (exp. 3.76bln), Op. Income 7.3bln (exp. 7.2bln), GWP 95.2bln (exp. 94.2bln). Proposes dividend of EUR 1.43/shr. Reiterates its FY25-27 guidance. (Newswires)

Oil / Trade - Tariffs, trade, LNG exports among topics oil executives and US President Trump to discuss, according to Reuters citing industry source. (Reuters)

UniCredit (UCG IM) / Banco BPM (BAMI IM) - UniCredit launched an exchange offer for Banco BPM shares. Received Ivass authorisation to acquire indirect controlling stakes equal to 100% of share capital of Banco BPM Vita and Vera Vita. (Newswires)

BROKER MOVES

SMI

Swiss Re (SREN SW) - Proposed increased dividend of USD 7.25/shr, +8% Y/Y. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.49% at 5,599, NDX +1.13% at 19,596, DJI -0.20% at 41,351, RUT +0.14% at 2,026

SECTORS: Consumer Staples -2.02%, Health -1.02%, Materials -0.45%, Real Estate -0.38%, Utilities -0.37%, Industrials unch, Financials +0.20%, Energy +0.44%, Consumer Discretionary +1.02%, Communication Services +1.43%, Technology +1.56%.

Adobe (ADBE) - Shares fell 4% in extended trading after it forecast lower-than-expected revenue for the next quarter. Q1 adj. EPS 5.08 (exp. 4.97), Q1 revenue USD 5.71bln (exp. 5.65bln). Q1 R&D expenses USD 1.03bln (exp. 1.01bln). Q1 digital experience revenue USD 1.41bln (exp. 1.4bln), subscription revenue USD 5.48bln (exp. 5.42bln), product revenue USD 95mln (exp. 95.4mln). Exec said it continues focus on monetising generative AI tools. Sees Q2 adj. EPS between 4.95-5.00 (exp. 5.00), Q2 revenue between USD 5.77bln-5.82bln (exp. 5.8bln); Q2 digital media revenue seen between USD 4.27bln-4.30bln (exp. 4.28bln), digital experience revenue between USD 1.43bln-1.45bln (exp. 1.45bln), and digital experience subscription revenue between 1.32bln-1.33bln (exp. 1.33bln).

Intel (INTC) - Intel appointed Lip-Bu Tan as CEO, effective March 18th, to stabilise the struggling chipmaker. Shares surged 10% afterhours following the announcement. Tan, a former Intel board member and former Cadence Design chief, aims to restore Intel’s global leadership and strengthen its foundry business. Analysts view his appointment as a commitment to keeping the company intact, Reuters reports. (Reuters)

Microsoft (MSFT) - Trump's FTC moves ahead with broad Microsoft (MSFT) antitrust probe, according to Bloomberg. (Bloomberg)

13 Mar 2025 - 06:56- Geopolitical- Source: Newsquawk