Newsquawk Daily European Equity Opening News - 14th July 2025

ASIA

APAC stocks were mostly positive but with some cautiousness seen following US President Trump's latest tariff letters in which he announced to impose 30% tariffs on the EU and Mexico from August 1st, while the region also reflected on somewhat mixed Chinese trade data. ASX 200 was rangebound as gains in mining, resources and materials offset the weakness in the consumer, industrial, financial and tech sectors, while data showed imports missed estimates for Australia's largest trading partner. Nikkei 225 initially retreated amid tariff uncertainty although the losses were gradually pared as sentiment overnight somewhat improved and Machinery Orders topped forecasts. Hang Seng and Shanghai Comp kept afloat amid the latest trade data in which exports topped forecasts and imports missed but returned to growth, while there were some encouraging comments from the meeting between US Secretary of State Rubio and Chinese Foreign Minister Wang last Friday which was described as constructive and with the odds said to be high for a future meeting between US President Trump and Chinese President Xi.

China Trade Data - China’s exports rose 5.8% Y/Y in June (exp. 5.0%, prev. 4.8%), driven by strong shipments to non-US markets, while imports grew 1.1% Y/Y (exp. 1.3%, prev. -3.4%), the first increase this year. Exports to the US fell 16.1% for the third month, but the decline eased due to a tariff truce. Shipments to Southeast Asia and the EU surged 16.8% and 7.6%, respectively. China’s steel exports hit a record 30.7mln tons in Q2 (+11% Y/Y), defying trade barriers across Asia and Europe; it surpasses the previous peak from a decade ago, with H1 volumes rising 9%, reflecting resilience from the world’s largest steel producer despite protectionist measures, Bloomberg said.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -0.98% at 5,385, Dax 40 -0.89% at 24,240, FTSE 100 -0.42% at 8,938, CAC 40 -0.92% at 7,829, FTSE MIB -1.11% at 40,078, IBEX 35 -1.02% at 13,997, PSI -0.27% at 7,727, SMI -1.62% at 11,929, AEX -0.63% at 921

SECTORS: Energy 0.70%, Utilities 0.04%, Telecoms -0.41%, Industrials -0.54%, Consumer Stpl -0.96%, Materials -0.99%, Financials -1.23%, IT -1.31%, Consumer Disc -1.52%, Healthcare -2.42%

FTSE 100

BT (BT/ LN) - Co. has called on the UK Government to remove "unnecessary roadblocks" from the planning system or potentially risk missing out on more than GBP 200bln in growth over the next decade. BT’s chief security and networks officer added that the UK seems to have "to have made it the hardest of anywhere" to build mobile infrastructure. (The Times)

OTHER UK COMPANIES

BROKER MOVES

DAX

BASF (BAS GY) - Prelim Q2 (EUR): EBITDA before special items at 1.77bln (exp. 1.77bln); Sales 15.77bln (exp. 15.77bln). FCF 0.53bln (prev. 0.47bln Y/Y). Net income at 0.08bln below expectations. Outlook 2025: EBITDA before special items expected to be 7.3-7.7bln (prev. guided 8.0-8.4bln); FCF reaffirmed at 0.4-0.8bln. (Newswires) Shares -2.6% in pre-market trade

Brenntag (BNR GY) - Q2 (EUR): Gross Profit 974.3mln (prev. 1.02bln Y/Y), EBITA 246.4mln (exp. 266mln, prev. 297.1mln Y/Y). Lowers 2025 EBITA guidance to 0.95-1.05bln (prev. guided 1.1-1.3bln, exp. 1.06bln). (Newswires)

OTHER GERMAN COMPANIES

Thyssenkrupp (TKA GY) - Co. and IG Metall agree on steel restructuring, with forced layoffs ruled out until 2030. Pending approval from union. (Newswires)

BROKER MOVES

CAC

Vinci (DG FP) - Thierry Mirville appointed CFO, effective Oct 1. (Newswires)

OTHER FRENCH COMPANIES

Eutelsat (ETL FP) - Japan and the EU are seeking to develop a joint satellite network, according to Nikkei. (Nikkei)

Eurazeo (RF FP) - Enters into exclusive discussions with Ferrara regarding its stake sale in CPK Group; transaction expected to bring approx. 240mln to balance sheet and expected to finalise in Q4'25. (Newswires)

French Telecoms - French telecoms operators Orange (ORA FP), Bouygues (EN FP) and Iliad (ILD FP) explore potential carve-up of Patrick Drahi's rival telco SFR, according to FT. (FT)

BROKER MOVES

Hermes (RMS FP) downgraded to Hold from Buy at Jefferies

PAN EUROPE

EU/US Trade - US President Trump sent trade letters to the EU and Mexico announcing 30% tariffs from August 1st (separate from sectoral tariffs). The EU is planning to "step up engagement" with other nations impacted by US President Trump's tariffs, according to Bloomberg sources. (Newswires / Bloomberg)

Apparel Names / Walmart (WMT) - Suppliers to Walmart have delayed or put on hold some garment orders from Bangladesh due to the threat of a 35% US tariff starting August 1st, Reuters reports. Factory owners expect a decline in US orders as they cannot absorb the tariff. Bangladesh, a major apparel exporter, is negotiating with the US to reduce the tariff amid business uncertainty. (Newswires)

Credit Agricole (ACA FP) / Banco BPM (BAMI IM) - Credit Agricole will ask ECB authorisation to cross 20% in the share capital of Banco BPM. (Newswires)

Defence Names - US President Trump is to announce an "aggressive" Ukraine weapons plan and will announce a new plan to arm Ukraine on Monday which is expected to include offensive weapons, according to Axios. Elsewhere, French President Macron pledged to raise France’s annual defence budget to EUR 64bln by 2027, two years earlier than planned, citing heightened threats to European security, Bloomberg reports. The increase includes an additional EUR 3.5bln in 2026 and EUR 3.2bln in 2027, aiming to double spending from 2017 levels amid fears of future conflict. (Axios / Bloomberg)

Mediobanca (MB IM) - Co. says price of BMPS's (BMPS IM) bid is inadequate, deal is damaging for shareholders. (Newswires)

UniCredit (UCG IM), Banco BPM (BAMI IM) - The Italian Administrative Court partially ruled in UniCredit’s favour by annulling two government-imposed conditions on its bid for Banco BPM but upheld the requirement for UniCredit to exit its Russia business. CEO Andrea Orcel faces uncertainty over whether the deal will proceed amid these constraints. (Newswires)

BROKER MOVES

Endesa (ELE SM) downgraded to Sector Perform from Outperform at RBC

Ferrovial (FER SM) downgraded to Neutral from Outperform at Santander

SMI

Novartis (NOVN SW) - Judge denies Novartis bid to block copy of Entresto as Co. did not prove infringement. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Kesko (KESKOB FH) - Jun (EUR): Revenue 1.09bln, +3.7% Y/Y. (Newswires)

Okrla (ORK NO) - Q2 (NOK): Adj. EPS 1.56 (exp.1 .49), Revenue 17.7bln (exp. 17.4bln). (Newswires)

SAAB AB (SAABB SS) - Positive mention in Bloomberg, which reports that Saab is advancing sales of its Gripen fighter jets as European countries reconsider their defence strategies amid rising tensions, Bloomberg reports. The Gripen’s agility and performance position it well for new contracts as Europe seeks to bolster its military capabilities.

BROKER MOVES

US

CLOSES: SPX -0.33% at 6,260, NDX -0.21% at 22,781, DJI -0.63% at 44,372, RUT -1.26% at 2,235

SECTORS: Financials -1.00%, Health -0.88%, Materials -0.75%, Consumer Staples -0.38%, Industrials -0.31%, Technology -0.22%, Communication Services -0.20%, Utilities -0.12%, Real Estate -0.07%, Consumer Discretionary +0.33%, Energy +0.48%

Amazon (AMZN) - Amazon said Prime Day 2025 was its biggest ever. The four-day event saw record sales and more items sold than any previous Prime Day or comparable period. Adobe data showed online spending surged to USD 24.1bln in the US from July 8 to 11, driven by steep discounts during events including Amazon Prime Day, marking 30.3% growth versus Adobe’s initial forecast of 28.4%; mobile sales led with 53.2% of transactions, while apparel and electronics saw discounts of 24% and 23%, respectively.

Alphabet (GOOG), OpenAI - Google will pay about USD 2.4bln to license AI coding startup Windsurf’s technology and hire its CEO and some staff, the WSJ reports. Google will focus Windsurf talent on agentic coding within its DeepMind division and is not taking a stake in Windsurf. The deal follows stalled OpenAI acquisition talks, where OpenAI ended acquisition talks with Windsurf due to Microsoft (MSFT) IP concerns, according to The Information.

Apple (AAPL), Disney (DIS) - Apple is set to secure exclusive US streaming rights for Formula 1 from 2026, outbidding ESPN with an offer exceeding USD 150mln annually, Business Insider reports. Disney's ESPN, currently paying around 85mln USD, will not match the bid. This would be Apple’s third major sports deal after MLB and MLS, but NFL rights remain untouched, the report adds.

Boeing (BA) - India’s AAIB report on the June Air India crash showed both engine fuel cutoff switches were flipped shortly after takeoff, starving the Boeing 787 of power. Cockpit audio revealed pilot confusion, with one asking why the fuel was cut. The cause of the switch movement remains unclear. The victims' legal counsel has called the findings 'deeply concerning'. The investigation continues, with a final report expected in 2026.

Kraft Heinz (KHC) - Kraft Heinz plans to spin off a large part of its grocery business, including many Kraft products, into a new entity potentially valued at USD 20bln, WSJ reports. The remaining company will focus on products like Heinz ketchup and Grey Poupon mustard, following weakening demand for some core items, the report adds.

Meta Platforms (META) - Meta has hired two more OpenAI researchers, Allan Jabri and Lu Liu, for its new Meta Superintelligence Labs unit, bringing its total hires from OpenAI to at least twelve, The Information reports.

14 Jul 2025 - 06:49- Geopolitical- Source: Newsquawk