Newsquawk Daily European Equity Opening News - 14th February 2025

ASIA

APAC stocks were mostly higher following the positive handover from Wall St, where yields declined following the latest PPI data and stocks benefitted despite US President Trump's reciprocal tariff plan, as the delayed implementation provided optimism regarding negotiations. ASX 200 touched a record high with the index led by strength in gold miners, tech and some defensive sectors. Nikkei 225 bucked the trend and was pressured by recent currency strength although Sony, Nissan and Honda were among the biggest gainers in the index post-earnings. Hang Seng and Shanghai Comp were positive with continued strong momentum in Hong Kong amid a tech surge, although the gains in the mainland were only modest despite the PBoC's recent policy implementation pledges, while this week's open market operations resulted in a net weekly drain of around CNY 575bln.

EUROPEAN CLOSES

CLOSES: DAX: +2.09% at 22,611, FTSE 100: -0.49% at 8,765, CAC 40: +1.52% at 8,164, Euro Stoxx 50: +1.71% at 5,498, AEX: +0.42% at 947, IBEX 35: +0.18% at 12,935, FTSE MIB: +1.00% at 37,908, SMI: +2.02% at 12,954, PSI: +0.89% at 6,586

SECTORS: Consumer Disc 2.44%, Materials 2.39%, Industrials 2.24%, IT 1.45%, Healthcare 0.93%, Utilities 0.90%, Consumer Stpl 0.81%, Financials 0.55%, Telecoms -0.47%, Energy -1.18%

FTSE 100

Goldman Sachs on FTSE 100 - Raises FTSE 100 12-month forecast to 9000 (prev. 8600, current 8,764.72)

HSBC (HSBA LN) - Co. is looking to unveil a USD 1.5bln annual savings plan as new CEO Elhedery starts a wide-ranging shake-up of the bank, according to the FT. Bloomberg reports that the co. plans new job cuts, which will start in Asia, but will ultimately affect employees across the world. (FT/Bloomberg)

Rolls-Royce (RR/ LN) - UAW members at Rolls-Royce voted overwhelmingly to authorise a strike, with 86% of members participating. The current contract expires on February 26th. Members are demanding fair pay, healthcare, retirement security, and equal treatment amid Rolls-Royce's rising profits and executive compensation. (Newswires)

UK Housing - The Times writes that UK Ministers have backed plans to make it easier for banks to lend to first-time buyers; they have also called on regulators to ease restrictions on mortgage lending. (The Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Signs service agreements for 227 new projects totalling 8,500 MW. (Newswires)

BROKER MOVES

CAC

Safran (SAF FP) - FY (EUR): Adj. Net Income 3.07bln, +51% Y/Y. Adj. Revenue 27.3bln (exp. 27.26bln), Adj. Recurring Op. Margin 15.1% (exp. 15.2%). Guides initial FY25 adj. rev. +10% Y/Y; raises adj. recurring op. 4.8-4.9bln (prev. guided 4.7-4.8bln). Proposes dividend of EUR 2.90/shr. (Newswires)

Vinci (DG FP) - Appoints Sabine Granger as CEO of Vinci Autoroutes; Remi Maumon de Longevialle as CEO of Vinci Airports. (Newswires)

OTHER FRENCH COMPANIES

Euronext (ENX FP) - Q4 2024 (EUR): Revenue 415.8mln (exp. 408.8mln), Adj. EBITDA 252.6mln (exp. 246.5mln), Net Income 144.6mln (exp. 141.8mln). FY24: Adj. EPS 6.56 (exp. 6.65). Revenue 1.63bln (exp. 1.69bln). EBITDA 975.6mln (exp. 1.03bln). Cuts FY Capex EUR 500-600mln (prev. guided 700-800mln). (Newswires)

Eutelsat (ETL FP) - H1 (EUR): Revenue 606.2mln (co. consensus 601mln), Adj. EBITDA 334.9mln (co. consensus 329mln)

Gecina (GEC FP) - FY (EUR): EBITDA 565.7mln. Proposed dividend of EUR 5.45/shr. Outlook 2025: EPS between 6.60-6.70. (Newswires)

Ubisoft (UBI FP) - Q3 25 (EUR): Net bookings 302mln (exp. 302mln), Sales -48% Y/Y at 320mln; FY net bookings view about 1.9bln (prev. about 1.95bln)

BROKER MOVES

PAN EUROPE

Trump Tariffs - US President Trump signed a memorandum to introduce a reciprocal tariff plan and said the lack of reciprocity is one source of the large and persistent US trade deficit, while he added the annual trade deficit threatens US economic and national security. Trump said he decided to charge a reciprocal tariff and whatever countries charge the US, they will charge them, while they will consider countries that use the VAT tax system with VAT tax to be viewed as a tariff. Trump also stated that provisions will be made for non-monetary tariffs, such as tests on cars, and limitations on trade, while the reciprocal tariff system will bring fairness back and this will be over and above steel tariffs.

AI - EU is cutting back tech rules to boost AI investment, according to the bloc's digital chief cited by FT. (FT)

Bper Banca (BPE IM) - S&P affirms co's "BBB-A3" ratings; outlook positive. (Newswires)

Goldman Sachs on STOXX 600 - Goldman Sachs raises STOXX 600 forecast for 12 months to 580 (prev. 540, current 553.75). 

Gambling names - DraftKings shares rose over 5% in extended trading after its Q4 earnings exceeded expectations, while sales were in line, and its monthly player count was also broadly in line with expectations. Details in the US section below

KPN (KPN NA) - Announces start of new tower company "Altiho"; raises 2025 guidance to EBITDAAL of EUR 2.6bln. (Newswires)

Moncler (MONC IM) - FY24 (EUR): Group revenue 3.11bln (exp. 3.03bln), EBIT 916.3mln (exp. 878mln), Moncler brand revenue 2.71bln, Stone Island revenue 401.6mln, Net profit 639.6mln (exp. 603mln). Proposes dividend of EUR 1.30/shr. (Newswires)

Santander (SAN SM) - Explored sale of UK business with NatWest (NWG LN), according to FT; early stage talks took place last year, but interest remains from both parties; spokesperson says UK is not for sale. (FT/Newswires)

Ukraine/Russia - US President Trump says had a good conversation with Russian President Putin the other day, adds US is working with Ukrainian President Zelensky, while he adds Russian Putin wants to make a deal. US President Trump says officials from US and Russia are to meeting in Munich on Friday, Ukraine also invited. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Galderma (GALD SW) - Galderma’s Nemluvio (nemolizumab) approved in the European Union for moderate-to-severe atopic dermatitis and prurigo nodularis. (Galderma)

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - Jan (EUR): 935.5mln, +4.6% Y/Y. (Newswires)

Huhtamaki (HUH1V FH) - Q4 (EUR): Adj. EBIT 110mln (prev. 108mln Y/Y), Revenue 1.06bln (prev. 1.03bln Y/Y). (Newswires)

Norsky Hydro (NHY NO) - Q4 (NOK): Adj. Net Income 2.60bln (exp. 3.38bln), Revenue 55.1bln (exp. 51.9bln); underlying demand is expected to gradually improve into 2025 driven by lower interest rates. Notes that tariffs will likely raise premiums and costs, with Midwest premiums already surging to the highest levels since April 2023. (Newswires)

BROKER MOVES

US

CLOSES: SPX +1.04% at 6,115, NDX +1.43% at 22,031, DJIA +0.77% at 44,711, RUT +1.17% at 2,282

SECTORS: Industrials +0.09%, Utilities +0.14%, Health +0.40%, Financials +0.72%, Energy +0.77%, Real Estate +0.84%, Consumer Staples +0.97%, Communication Services +1.08%, Technology +1.52%, Consumer Discretionary +1.60%, Materials +1.71%.

Arm (ARM) secures Meta (META) as first customer for ambitious new chip project, FT reports

Apple (AAPL) - US President Trump says EU has 20% VAT, also have other measures that hurt US companies including Apple (AAPL); airlines asking him to help with EU fees. (Newswires)

Airbnb (ABNB) - Shares rose over 14% in extended trading after it reported Q4 revenue above estimates, but forecast slower Q1 growth due to FX headwinds and Easter timing. Q4 EPS 0.73 (exp. 0.58), Q4 revenue USD 2.50bln (exp. 2.42bln); Q4gross booking value 17.6bln (exp. 17.19bln); Q1 nights and experiences booked 111mln (exp. 108.31mln); Q1 gross booking value per nights and experiences booked 158.13 (exp. 158.33). Expects Y/Y growth of nights and experiences Booked in Q1 to be relatively stable vs Q1 2024. Sees Q1 revenue between 2.23-2.27bln (exp. 2.29bln).

Applied Materials (AMAT) - Shares fell 5% in extended trading after it issued lower than expected Q2 revenue due to tighter US export controls on chipmaking technology, while its largest market (China) saw reduced sales; it cut its 2025 revenue view accordingly. It reported Q1 adj. EPS of 2.38 (exp. 2.29), Q1 revenue of USD 7.17bln (exp. 7.14bln). Q1 semiconductor systems net sales USD 5.36bln (exp. 5.33bln), Q1 applied global services net sales USD 1.59bln (exp. 1.65bln). Sees Q2 EPS between 2.12-48 (exp. 2.29), and sees Q2 revenue between USD 6.7-7.5bln (exp. 7.2bln). Exec said that for Q2, it is encouraged by the trends, however.

Coinbase Global (COIN) - Coinbase’s Q4 revenue surged above analyst expectations, driven by a Trump-inspired crypto rally, with consumer transaction revenue up 179% sequentially. It reported Q4 net revenue USD 2.20bln (exp. 1.87bln), Q4 transaction revenue USD 1.6bln (exp. 1.24bln). Exec said that since mid-Q4, it has seen a significant increase in marketing opportunities in both new and existing paid marketing channels; nevertheless, daily spending on performance marketing varied significantly in Q1 as crypto market conditions continue to be volatile; accordingly, the range of potential outcomes it anticipates for Q1 is significantly wider than in prior periods. COIN expects Q1 subscription and services revenue between USD 685-765mln, driven primarily by i) stablecoin revenue, ii) continued growth in Coinbase One subscriber base, and iii) the higher average crypto asset prices so far in Q1.

DraftKings (DKNG) - DraftKings shares rose over 5% in extended trading after its Q4 earnings exceeded expectations, while sales were in line, and its monthly player count was also broadly in line with expectations. It raised its FY sales guidance, despite a challenging market for sportsbooks. Q4 adj. EPS 0.14 (exp. -0.15), Q4 revenue USD 1.39bln (exp. 1.43bln). Q4 monthly unique payers 4.8mln (exp. 4.77mln), and Q4 average revenue per monthly unique payer USD 97.00 (exp. 94.23). Sees FY25 revenue between 6.3-6.6bln (exp. 6.2-6.6bln).

Roku (ROKU) - Shares rose over 11% in extended trading after it forecast annual revenue above estimates, driven by strong ad sales and subscriber growth. It reported Q4 adj. EBITDA of USD 77.5mln (exp. 34.9mln), and Q4 revenue of USD 1.20bln (exp. 1.15bln). Q1 ARPU +3.9% Y/Y to 41.49 (exp. 40.85); Q1 platform revenue +25% Y/Y to 1.04bln (exp. 952.7mln); Q1 streaming hours +17% Y/Y to 34.1bln (exp. 34.44bln); Q1 streaming households +12% Y/Y to 89.8mln (exp. 88.99mln). Exec said tariffs on electronics are not expected to impact its platform business. Sees Q1 revenue at USD 1.01bln (exp. 1.01bln), and sees FY25 revenue at USD 4.61bln (exp. 4.62bln).

Meta (META) - Raises quarterly dividend by 5% to USD 0.525/shr payable March 26th. (Newswires)

14 Feb 2025 - 06:55- MetalsData- Source: Newsquawk