Newsquawk Daily European Equity Opening News - 14th May 2025

ASIA

APAC stocks traded somewhat mixed but with the region predominantly in the green following the momentum from the constructive performance on Wall St, where most major indices closed higher in the aftermath of the softer-than-expected US CPI data, although demand was contained overnight amid a lack of fresh major catalysts and as participants digested earnings releases. ASX 200 lacked firm direction as strength in energy and tech was counterbalanced by weakness in utilities and consumer stocks, while financials were rangebound despite Australia's largest bank CBA reporting an increase in profits. Nikkei 225 wiped out opening gains and briefly reverted to a sub-38,000 level with the list of worst performers in the index dominated by companies that had just reported earnings results. Hang Seng and Shanghai Comp gained amid strength in Chinese healthcare stocks and tech names leading the upside in Hong Kong ahead of Tencent and Alibaba earnings results scheduled for today and tomorrow, respectively, while the upside in the mainland was limited amid a lack of major fresh catalysts.

Baidu (BIDU) - Baidu plans to trial its Apollo Go driverless ride-hailing service in Europe, beginning with Switzerland through discussions with PostAuto, WSJ reports. The company also intends to expand to Turkey. Apollo Go currently operates in multiple Chinese cities, with over 400 vehicles in Wuhan.

Huawei Restrictions - On the US Commerce Department's new guidance, FT citing sources report that the Bureau of Industry and Security has not issued a new rule, but is making it clear that firms with Huawei chips are likely to have violated measures around exporting US tech to Chinese firms. (FT)

Sony Group (SONY) - Sony reported a 4.6% rise in Q4 net profit to JPY 197.73bln (exp. 153.6bln), driven by strong performance in its music and movie divisions; FY24/25 net profit rose +17.6% Y/Y to 1.14tln. Will submit a resolution for the execution of the spin-off to the board in early September 2025, while it plans to distribute slightly more than 80% of Sony Financial Group shares to shareholders through dividends in kind at a one-to-one ratio for SFGI and Sony shares. Said it would buy back up to 1.66% of shares for JPY 250bln. However, it projected lower net profit for the current fiscal year, citing the impact of US tariffs as a contributing factor; sees FY26 operating profit JPY 1.28tln (exp. 1.5tln), hindered by a JPY 100bln impact from US tariffs.

Samsung Electronics (SSNLF) - Samsung has agreed to acquire FlaktGroup Holding for EUR 1.5bln, marking its largest overseas takeover in eight years. The deal, which involves purchasing all shares from Triton Investments Advisers, is expected to close in 2025.

EUROPEAN CLOSES

CLOSES: DAX: +0.23 % at 23,620, FTSE 100: -0.02 % at 8,603, CAC 40: +0.30 % at 7,874, Euro Stoxx 50: +0.43 % at 5,415, AEX: +0.58 % at 927, IBEX 35: +0.83 % at 13,769, FTSE MIB: +0.39 % at 40,077, SMI: -0.58 % at 12,149, PSI: +1.11 % at 7,190.

SECTORS: Consumer Disc 1.44%, IT 1.28%, Energy 0.95%, Industrials 0.81%, Materials 0.80%, Telecoms 0.05%, Financials -0.28%, Utilities -0.59%, Healthcare -1.07%, Consumer Stpl -1.50%

FTSE 100

Barclays (BARC LN) - Barclays has appointed Avinash Thakur as the new head of investment banking for Asia Pacific, succeeding Vanessa Koo, who is retiring, Bloomberg reports. (Bloomberg)

Standard Chartered (STAN LN) / Crypto - Crypto platform FalconX has partnered with Standard Chartered to provide institutional investors with crypto choices. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Associated British Foods (ABF LN) downgraded to Sector Perform from Outperform at RBC

Mondi (MNDI LN) upgraded to Overweight from Neutral at JP Morgan

DAX

Brenntag (BNR GY) - Q1 (EUR): Sales 4.07bln (exp. 4.14bln), Op. EBITA 264.3mln, +0.3% Y/Y. Outlook: EBITA for 2025 maintained and currently exp. to be in the lower range. (Newswires)

Daimler Truck (DTG GY) - Q1 (EUR): Adj. EBIT 1.16bln (exp. 1.03bln). Co. cuts FY Op. Profit forecast to -5 to +5% (prev. guided +5 to +15%). Cuts FY Sales 430-460k (prev. guided 460-480k). Cuts Trucks North America Volume 155-175k (prev. guided 180-200k). (Newswires)

E.On (EOAN GY) - Q1 (EUR): Net Income 1.27bln (exp. 1.39bln, prev. 1bln Y/Y), Revenue 25.2bln (prev. 22.6bln Y/Y). Affirms guidance. (Newswires)

Volkswagen (VOW3 GY) - Brand CEO at FT summit, says they need to get to margin parity for EV and combustion engine cars by the end of the decade. (FT)

OTHER GERMAN COMPANIES

Fraport (FRA GY) - April Frankfurt Airport Passengers +4.8% Y/Y to 4.8mln. (Newswires)

Hapag Lloyd (HLAG GY) - Q1 (USD): Net Income 469mln (exp. 496mln, prev. 323mln Y/Y), Revenue 5.32bln (exp. 4.93bln, prev. 4.26bln Y/Y), EBITDA Margin 21% (exp. 22.5%). Affirms guidance. (Newswires)

Renk (R3NK GY) - Q1 (EUR): Revenue 272mln (exp. 278mln), +14.3% Y/Y, Total Order Backlog 5.5bln (prev. 5bln Y/Y). 2025 and midterm targets confirmed. (Newswires)

Tui (TUI GY) - Q2 (EUR): EBIT -206.8mln (exp. -227mln, prev. -188.7mln Y/Y), Revenue 3.71bln (exp. 3.8bln). Lower EBIT is due mainly to Easter holiday shift into Q3. Exec says summer booking now in-line with prior year. (Newswires)

BROKER MOVES

CAC

L'Oreal (OR FP) - L'Oreal raised USD 1bln in its first US corporate bond market deal, offering a 10yr note with a yield 0.625 percentage points above comparable Treasuries.

OTHER FRENCH COMPANIES

Atos (ATO FP) - Atos sets ambitious and achievable financial targets for FY 2028, fuelled by cash generation and disciplined capital allocation. Strategy aims to deliver revenues of EUR 9–10bln with an operating margin of around 10% in 2028. Plans to invest EUR 500mln in R&D over the next four years and €100 million in start-ups and new ecosystem players. 2025 outlook: revenues around EUR 8.5bln, operating margin around 4%, net change in cash before debt repayment of about EUR -350mln. (Newswires)

Alstom (ALO FP) - FY (EUR): Revenue 18.5bn (exp. 18.36bln, prev. 17.6bln Y/Y), Adj. Net Income 498mln (exp. 658.9mln). FY25/26 Sales Organic Growth 3-5%. Proposes no dividend for FY. (Newswires)

Amundi (AMUN FP) - Co's CPRAM merges with BFT; exp. to finalise by end-2025. (Newswires)

Euronext (ENX FP) - Completed the acquisition of AdminControl. (Newswires)

Bouygues (EN FP) - Q1 (EUR): Sales 12.65bln (Co. consensus 12.59bln). Outlook 2025: Sees sight increase in Sales and COPA vs 2024. (Newswires)

BROKER MOVES

PAN EUROPE

Trade - White House economic adviser Hassett said the administration has more than 20-25 deals on the table with deals close to being finalised and when President Trump returns, he will announce the next deal, according to a Fox interview. US President Trump said his relationship with China is good and he could see himself dealing with Chinese President Xi on a deal, according to a Fox News interview.

ABN AMRO (ABN NA) - Q1 (EUR): Net Profit 619mln (Co. consensus 586mln), NII 1.56bln (Co. consensus 1.57bln), Op. Result 2.15bln (Co. consensus 2.17bln). Impairment charges of EUR 5mln. (Newswires)

GLP-1/Healthcare Names - UK Ministers are looking into ways to quickly increase the availability of GLP-1 drugs after breakthrough data was revealed at the European Congress of Obesity. Data showed protection against ageing, strokes and heart attacks. (Times)

InPost (INPST NA) - Q1 (PLN): Net Profit 183.7mln (Co. consensus 282mln). Parcel Volume 272mln (Co. consensus 273mln). (Newswires)

MFE (MFEB IM) / Prosiebensat 1 Media (PSM GY) - MediaForEurope remains committed to strengthening its role as leading shareholder in ProSiebenSat. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Europe Chief says Co. is to update its plan for Italy in June and plans to meet the Government soon. Plan will include Maserati and engines. (Newswires)

Telefonica (TEF SM) - Q1 (EUR): Revenue 9.2bln (exp. 9.1bln), Adj. EBITDA 3.01bln (exp. 3.10bln). Confirms shareholder remuneration. Co. is on track to meet 2025 guidance. (Newswires)

BROKER MOVES

SMI

Alcon (ALC SW) - Q1 (USD): Sales 2.5bln (exp. 2.6bln). Outlook 2025: Sees Net Sales 10.4-10.5bln. (Newswires)

OTHER SWISS COMPANIES

Julius Baer (BAER SW) - Co. ordered to pay USD 5mln over "serious violations" of regulations, according to the FT. (FT)

BROKER MOVES

SCANDINAVIA

FLSmidth (FLS DC) - Q1 (DKK): Revenue 4.7bln (exp. 4.58bln), Adj. EBITDA 656mln (exp. 528mln). 2025 Outlook: Adj. EBITA Margin 13-13.5% (prev. guided 12.5-13%). (Newswires)

Lundbeck (HLUNB DC) - Q1 (DKK): Adj. EBITDA 2.17bln (Co. consensus 1.79bln). Raises FY Revenue growth guidance to +8-11% (prev. guided +7-10%). (Newswires)

BROKER MOVES

Vestas Wind Systems (VWS DC) upgraded to Buy from Hold at Berenberg

US

CLOSES: SPX +0.72% at 5,887, NDX +1.58% at 21,198, DJI -0.64% at 42,140, RUT +0.49% at 2,102

SECTORS: Technology +2.25%, Consumer Discretionary +1.41%, Energy +1.32%, Communication Services +1.26%, Industrials +0.72%, Financials +0.38%, Utilities -0.08%, Materials -0.52%, Consumer Staples -1.24%, Real Estate -1.30%, Health -2.97%.

American Eagle Outfitters (AEO) - American Eagle sees Q1 revenue at USD 1.1bln (exp. 1.08bln), sees Q1 SSS down 3.0% (exp. -3.0%). Expects adj. operating loss of USD 68mln due to higher promotions, and a USD 75mln inventory charge; GAAP operating loss seen at USD 85mln. Withdraws FY25 guidance citing macro uncertainty.

Tesla (TSLA) - Tesla’s board has formed a special two-person committee to consider a new stock option package for Elon Musk, amid legal uncertainty over his voided 2018 award, FT reports. The new deal may be proposed ahead of a delayed shareholder meeting; no structure is final. Musk has threatened to leave without greater control.

14 May 2025 - 06:59- Research Sheet- Source: Newsquawk