Newsquawk Daily European Equity Opening News - 14th October 2025

ASIA

APAC stocks were mixed following the rebound on Wall St and with underperformance in Japanese markets as they reopened from the extended weekend and reacted to the recent US-China tariff tensions, as well as the Japanese ruling coalition split. ASX 200 struggled for direction as weakness in the financial and consumer-related sectors offset the gains in materials and miners, with the latter helped by the recent upside in metal prices and with Rio Tinto gaining following its quarterly activity update. Nikkei 225 underperformed as participants returned from the holiday closure and reacted to the recent US-China trade frictions and political uncertainty in Japan, while there were late headwinds after reports of China trade-related actions against the US. Hang Seng and Shanghai Comp are lower amid the backdrop of the tumultuous trade/tariff related headlines in which the recent softening in tone by the US on China was followed by reports overnight that China's MOFCOM is taking countermeasures against five US-linked firms and that China's Transport Ministry opened an investigation into US 301 tariffs impact on China shipping industry.

China-US Tensions - China Commerce Ministry says it takes countermeasures against five US-linked firms. (Newswires) US Treasury Secretary Bessent accused China of trying to hurt the world's economy after Beijing imposed sweeping export controls on rare earths and critical minerals, while he expects to meet China's He Lifeng once more before Oct. 29th, according to FT. (FT) China's MOFCOM responds to US saying it has proposed talks with China after rare earth restrictions, stating the US cannot have talks while threatening to intimidate and introduce new restrictions, which is not the right way to get along with China. (Newswires)

Samsung Electronics (005930 KS) - Samsung Electronics sees Q3 operating profit +32% Y/Y at KRW 12.1tln (range KRW 12.0-12.2tln; analysts exp. 10.1tln; vs 9.18tln Y/Y and 4.68tln in Q2), marking its strongest quarterly profit since 2022; revenue is seen rising +8.7% Y/Y to KRW 86tln (range KRW 85-87tln; analysts exp. 84.4tln). Gains were driven by strong memory chip demand and tight supply, offsetting weaker AI chip sales. The company will report its full results on October 30th. Samsung said it was also selected by Vodafone (VOD) as a primary partner to deploy Open RAN in Germany and other European markets; the rollout, starting with Hannover and expanding to thousands of sites over five years, will use Samsung’s vRAN, O-RAN radios, and AI-powered network automation tools.

Softbank (9984 JT) - OpenAI is working with SoftBank's (9984 JT) Arm (ARM) on Broadcom (AVGO) AI chip efforts, according to The Information. (The Information)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.70% at 5,570, Dax 40 +0.55% at 24,375, FTSE 100 +0.16% at 9,443, CAC 40 +0.21% at 7,934, FTSE MIB +0.29% at 42,168, IBEX 35 +0.42% at 15,542, PSI +0.69% at 8,226, SMI +0.05% at 12,488, AEX +1.21% at 952.

SECTORS: IT 1.86%, Materials 1.71%, Industrials 0.47%, Financials 0.35%, Energy 0.23%, Utilities 0.17%, Healthcare 0.08%, Consumer Disc 0.07%, Consumer Stpl -0.22%, Telecoms -0.47%

FTSE 100

Rio Tinto (RIO LN) - Quarterly Pilbara iron ore output (100% basis) 84.1mln tons (prev. 84.1mln tons Y/Y), iron ore shipments (100% basis) 84.3mln tons (exp. 85mln tons, prev. 84.5mln tons Y/Y), copper output (consolidated basis) rose 10% to 204k tons. (Rio Tinto)

Vodafone (VOD LN) - Samsung Electronics (005930 KS) says it is to supply Open RAN for Vodafone in Germany and other European countries. Elsewhere, Co. working to resolve a network outage affecting its broadband, 4G and 5G services in Britain. (Newswires)

UK Retail - UK BRC Total Sales YY (Sep) 2.3% (Prev. 3.1%). UK BRC Retail Sales YY (Sep) 2.0% (Prev. 2.9%). (BRC)

OTHER UK COMPANIES

BROKER MOVES

Beazley (BEZ LN) assumed with Outperform at RBC

Hiscox (HSX LN) upgraded to Outperform from Sector Perform at RBC

IMI (IMI LN) downgraded to Sector Perform from Outperform at RBC

Fevertree (FEVR LN) upgraded to Buy from Hold at Jefferies

Smith & Nephew (SN/ LN) downgraded to Market Perform from Outperform at Bernstein

DAX

OTHER GERMAN COMPANIES

Fraport (FRA GY) - Sept Frankfurt Passengers 6mln, +6.1% Y/Y. (Newswires)

BROKER MOVES

BASF (BAS GY) downgraded to Sell from Hold at Berenberg

Hannover Rueck (HNR1 GY) downgraded to Sector Perform from Outperform at RBC

Siemens Healthineers (SHL GY) downgraded to Equal Weight from Overweight at Morgan Stanley

CAC

French Budget - French PM Lecornu's government to present budget aiming to cut costs by EUR 31bln, via La Tribune. Budget would cut EUR 17bln in spending and aims to cut deficit to 4.7% by end-2026. (La Tribune) Click for full Newsquawk preview.

Michelin (ML FP) - Co. adjusts 2025 outlook due to further deterioration of business environment; operating income EUR 2.6-3bln (prev. above EUR 3.4bln). (Michelin) Continental (CON GY) shares -1.9% in pre-market trade

Publicis (PUB FP) - Q3 (EUR): Net Revenue 3.53bln. Upgrades FY Organic Growth Guidance between +5-5.5% (prev. guided +5%). Confirms 2025 guidance for Op. Margin. Notes of no slowdown in client demand and saw an acceleration in demand for AI-led products and services. Co. is confident in outperforming again in 2026. Elsewhere, the FT reported that Publicis has ruled out a bid for Dentsu's international unit. (Publicis / FT)

Safran (SAF FP), Airbus (AIR FP) - Safran will invest EUR 200mln to build a new Airbus engine assembly line in Morocco, its first outside France, producing 350 LEAP-1A engines annually from 2028. It will also open a EUR 120mln maintenance plant by 2027, expanding its partnership with GE (GE) and boosting Morocco’s aerospace sector and exports. Safran exec noted a very good quarter of deliveries to Airbus in Q3; added that the reduction in number of Airbus jets waiting for engines reinforces confidence. Safran CEO reports a very good quarter of deliveries to Airbus in Q3; reduction in number of Airbus jets waiting for engines 'naturally reinforces our confidence'. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

Klepierre (LI FP) upgraded to Overweight from Underweight at JPMorgan; analysts upgrade the co. citing stronger capital growth assumptions; adds that any volatility due to French uncertainty is a buying opportunity.

Scor (SCR FP) assumed with Outperform at RBC

PAN EUROPE

Chemical Stocks - BofA adjusted price targets for chemicals names ahead of Q3 results: Axalta Coating (AXTA) lowered to USD 41 from 42, Celanese (CE) to USD 57 from 59, CF Industries (CF) raised to USD 83 from 82, Dow (DOW) lowered to USD 24 from 25, Eastman Chemical (EMN) lowered to USD 74 from 78, Element Solutions (ESI) raised to USD 31 from 29, Green Plains (GPRE) raised to USD 9 from 7, IFF (IFF) lowered to USD 80 from 84, LyondellBasell (LYB) lowered to USD 50 from 55, Mosaic (MOS) lowered to USD 43 from 49, Olin (OLN) raised to USD 30 from 25, PPG (PPG) lowered to USD 129 from 131, Sigma Lithium (SGML) lowered to USD 10 from 12, and Sherwin-Williams (SHW) lowered to USD 368 from 375. BofA noted a negative macro environment, recent slippage in commodity businesses, and highly inconsistent industrial end markets, with softer Q4 seasonality now expected.

Cellnex (CLNX SM) - To carry out share capital reduction by cancelling shares acquired under share buy-back program. (Cellnex)

Galp (GALP PL) - Q3: Oil product sales 2.0mln (prev. 1.88mln), working interest production 115k bpd (prev. 113.8k bpd), raw materials 22.7mln (prev. 21.2mln), natural gas sales 3.6TWH (prev. 3.91 TWH). (Galp)

Leonardo (LDO IM) - Subsidiary Leonardo DRS (DRS) and KNDS have entered a strategic agreement to offer the CAESAR self‑propelled howitzer to the US Army. Leonardo DRS will act as prime contractor, with KNDS providing mobile artillery and ammunition expertise, aiming to deliver enhanced range, mobility, accuracy, and rapid global deployment for US defence requirements. (Leonardo)

Pirelli (PIRC IM)/ Continental (CON GY) - French peer Michelin (ML FP) downgraded guidance due to "further deterioration of business environment".

Sabadell (SAB SM) / BBVA (BBVA SM) - Co. gives a notice of the level of acceptances of the takeover bid for shares held in Banco Sabadell. Shares held in Co. represent 30.8% of Sabadell’s capital. 97.2% of such shareholders have not accepted BBVA’s tender offer. (Newswires)

TomTom (TOM2 NA) - Q3 (EUR): Revenue 136.9mln (exp. 136mln), EBIT 8.4mln (exp. 2mln), Net Income 9.1mln (co. consensus -1mln). Expects FY Revenue and Location Tech at the upper end of guided range. (TomTom)

BROKER MOVES

SMI

Givaudan (GIVN SW) - 9M (CHF): Revenue 5.74bln (prev. 5.64bln Y/Y). Upgrades FY25 LFL Sales to “likely exceed +4-5% LFL growth target”. (Givaudan)

OTHER SWISS COMPANIES

Flughafen Zurich (FHZN SW) - Sept Passengers 3.05mln, +3.4% Y/Y. (Newswires)

BROKER MOVES

Holcim (HOLN SW) downgraded to Hold from Buy at Erste; analysts believe that the co’s sales guidance is “too optimistic”.

Swiss RE (SREN SW) downgraded to Underperform from Sector Perform at RBC

SCANDINAVIA

Aker (AKER NO) - Co. finalises investment in Nscale and joint venture in Narvik. New company, Aker Nscale, secures major AI compute partnerships with Microsoft and OpenAI. (Aker)

Ericsson (ERICB SS) - Q3 2025 (SEK): Sales 56.24bln (exp. 55.7bln), adj. EBIT 15.45bln (exp. 14.1bln). Networks Adj. Operating Margin 20.2% (exp. 18.6%). Guides Q4 Networks Adj. Gross Margin between 49-51% (exp. 49.1%). Sees scope for increased shareholder distribution. (Newswires)

Kesko (KESKOB FH) - Sept LFL Revenue +6.1% Y/Y. (Kesko)

Orion (ORNBV FH) - Q3 (USD): Adj EBITDA 55mln, revises FY25 Adj EBITDA to 220-235mln, to introduce additional cost measures to bolster earnings progression and cash flow generation in 2026, still expects positive free cash flow this year. (Orion)

BROKER MOVES

US

CLOSES: SPX +1.55% at 6,654, NDX +2.18% at 24,750, DJI +1.30% at 46,073, RUT +2.62% at 2,457.

SECTORS: Technology +2.45%, Consumer Discretionary +2.29%, Communication Services +1.77%, Materials +1.54%, Energy +1.42%, Industrials +1.04%, Financials +0.93%, Utilities +0.75%, Real Estate +0.49%, Health -0.10%, Consumer Staples -0.37%.

Goldman Sachs (GS) - Goldman Sachs agreed to acquire venture capital platform Industry Ventures for up to USD 965mln in cash and equity, comprising of USD 665mln at closing, and up to USD 300mln contingent on performance through 2030. All 45 Industry Ventures employees will join Goldman to expand its technology-focused investment capabilities. (Newswires)

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