Newsquawk Daily European Equity Opening News - 17th July 2025

ASIA

APAC stocks were somewhat mixed following the two-way price action stateside where the major indices ultimately gained, although price action was choppy amid Fed independence concerns due to reports regarding a potential firing of Fed Chair Powell, which President Trump refuted. ASX 200 advanced with gains seen in nearly all sectors while stocks were unfazed by disappointing Australian jobs data. Nikkei 225 declined at the open amid currency- and data-related headwinds but gradually clawed back its losses as the JPY resumed its weakening trend. Hang Seng and Shanghai Comp lacked conviction in the absence of any pertinent fresh macro catalysts.

TSMC (2330 TT/TSM) - Q2 (TWD) Net Profit 398.3bln (exp. 376.42bln). (Newswires)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 -1.22% at 5,289, Dax 40 +0.07% at 24,077, FTSE 100 -0.13% at 8,927, CAC 40 -0.57% at 7,722, FTSE MIB -0.40% at 39,763, IBEX 35 +0.08% at 13,886, PSI -0.17% at 7,694, SMI +0.03% at 11,905, AEX -2.29% at 902.

SECTORS: Telecoms 0.23%, Financials 0.04%, Consumer Stpl 0.01%, Utilities 0.00%, Healthcare -0.06%, Energy -0.52%, Consumer Disc -0.54%, Industrials -0.72%, Materials -0.75%, IT -4.30%

FTSE 100

UK/US Trade - UK is said to be pushing the US to drop a key sticking point in the steel deal, according to FT. (FT)

OTHER UK COMPANIES

BROKER MOVES

Wizz Air (WIZZ LN) upgraded to Equal Weight from Underweight at Barclays

DAX

OTHER GERMAN COMPANIES

Gerresheimer (GXI GY) - Expects organic revenue growth of 6-9%. Ends discussion with private equity investors re. takeover offer. (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) / Spirit AeroSystems (SPR) - Spirit disclosed that on July 11th, its unit entered a third amended agreement with Airbus, under which Airbus is providing an additional USD 94mln in support, according to a filing. (Newswires)

Publicis (PUB FP) - H1 (EUR): Revenue 8.48bln (exp. 7.12bln), Net Income 824mln (exp. 817mln), EBITDA 1.5bln (exp. 1.55bln). Upgrades FY25 organic growth guidance to close to 5% (prev. guided 4-5%), confirms operating margin guide. (Newswires)

Sanofi (SAN FP) - Announced extension of Blueprint (BPMC) tender offer; extends tender offer for Blueprint Medicines at USD 129/shr. (Newswires)

Legrand (LR FP) - H1 (EUR): Revenue 4.8bln (prev. 4.21bln Y/Y). (Newswires)

OTHER FRENCH COMPANIES

Eurazeo (RF FP) - Announced first closing of its Eurazeo growth fund at IV at EUR 650mln; fund targets EUR 1bln. (Newswires)

SES (SESG FP) - Completed acquisition of Intelsat; expects EUR 2.4bln synergies with EUR 370mln annual run-rate. Intends to raise annual base dividend once targeted net leverage achieved within 12-18 months after closing. (Newswires)

Ubisoft (UBI FP) - Co. names co-CEOs of Tencent (TCE HY), WSJ reports. Christophe Derennes and Charlie Guillemot would take the helm of the new business that is set to include the teams behind the Assassin’s Creed, Far Cry and Tom Clancy’s Rainbow Six franchises. The unit will also house any new games under development or to be developed. (WSJ)

BROKER MOVES

PAN EUROPE

Crypto - House conservatives ended their two-day blockade of crypto bills, allowing votes on measures supported by President Trump, who is championing the agenda. The hardliners relented after pressure from the President, signalling a push forward for industry-backed digital asset legislation. (Newswires)

Puig (PUI SM) - Q2 (EUR): Sales 1.09bln (exp. 1.09bln), +3.9% Y/Y. LFL Sales +7.7% Y/Y. Maintains 2025 outlook. (Newswires)

BROKER MOVES

SMI

ABB (ABB SW) - Q2 (USD): Revenue 8.9bln (exp. 8.77bln), +8% Y/Y. Income from Operations 1.57bln, Orders 9.7bln. CEO: Trading environment largely unchanged, with uncertainty surrounding tariffs. Q3 Outlook: Anticipate comparable rev. growth to be at least in mid-single digit range and EBIT to remain broadly stable Y/Y. FY: Expect positive book to bill. (Newswires)

Novartis (NOVN SW) - Q2 (USD) Core EPS 2.42 (exp. 2.37), Revenue 14.05bln (exp. 14.18bln) Raises its full year 2025 guidance for core operating income; sees core op. income to grow low teens (prev. saw low double digit). Appoints Mukul Mehta as CFO, effective March 16, 2026. Initiating up to USD 10bln share buyback to be completed by year-end 2027. (Newswires)

OTHER SWISS COMPANIES

DKSH (DKSH SW) - H1 (CHF): Core EBIT 169.3mln, +5.1% Y/Y. Net Sales 5.5bln, +2.1% Y/Y. (Newswires)

Swatch (UHR SW) - H1 (CHF): Net Sales 3.05bln, -7.1% Y/Y. Op. Profit 68mln (prev. 204mln Y/Y). Op. Margin 2.2% (prev. 5.9% Y/Y). Strongly negative op. result due to the deliberately maintaining of production capacities and jobs in Switzerland. On China: There are first positive signs of improvement, particularly in E-Commerce and the reduction of inventories in retailers. Therefore, expects improved market in the Greater China region in H2'25. Outlook: Expects improved production capacity utilisation, driven by numerous new product launches across all price segments. Expects further inventory reductions across Chinese retailers and thus a recovery in orders.

BROKER MOVES

SCANDINAVIA

Evolution (EVOG SS) - Q2 (EUR): Revenue 524mln (exp. 519mln, prev. 508mln Y/Y), EBITDA 345mln (exp. 339mln, prev. 345mln Y/Y), EBITDA Margin 65.9% (prev. 68% Y/Y). Europe saw another quarter of negative growth both Y/Y & Q/Q, N. America maintains very good momentum. View that H2 will be stronger remains. Maintain FY EBITDA margin guide of 66-68%. (Newswires)

Essity (ESSITYB SS) - Q2 (SEK): Net Sales 34.18bln, -6.6% Y/Y. (Newswires)

EQT (EQT SS) - H1 (EUR): EBITDA 806mln (prev. 608mln Y/Y), Net Income 682mln (prev. 500mln Y/Y). "Following a difficult start to the year, global markets have regained strength - yet the outlook remains uncertain." (Newswires)

Nordea (NDA FH) - Q2 (EUR): NII 1.79bln, CET1 Ratio 15.6%. Launches share buyback of EUR 250mln. (Newswires)

Swedbank (SWEDA SS) - Q2 (SEK): NII 10.91bln (exp. 10.89bln), Net Profit 7.88bln (exp. 7.17bln). (Newswires)

Volvo Car AB (VOLCARB SS) - Q2 (SEK): Revenue 93.5bln (exp. 89.06bln), Adj. EBIT 2.9bln (exp. 3.07bln); demand remains under pressure from macro environment and tariff-related uncertainties; says the SEK 18bln turnaround plan is on track. Pre-earnings commentary: 2024 revenue amounted to all time high of SEK 400.2bln; while global sales reached a record 763,389 cars in 2024. Bringing production of XC60 to its US plant, with production scheduled for late 2026. (Newswires)

Volvo AB (VOLVB SS) - Q2 (SEK) Adj. Op. Profit 13.48bln (exp. 13.12bln), Revenue 122.9bln (exp. 122.1bln); Net Trucks Order Intake 47,761 trucks (prev. 47,760 Y/Y). A quarter which saw stabilisation in Europe and more uncertainty/wait-and-see in North America. Demand for buses has remained good in many markets, particularly for coaches. Sees 2025 Chinese construction equipment market at 5-15%. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.32% at 6,264, NDX +0.10% at 22,908, DJI +0.53% at 44,255, RUT +0.99% at 2.227

SECTORS: Energy -0.84%, Communication Services -0.15%, Consumer Discretionary -0.02%, Utilities +0.06%, Consumer Staples +0.18%, Technology +0.27%, Materials +0.30%, Industrials +0.35%, Financials +0.66%, Real Estate +1.07%, Health +1.22%

Alcoa Corp (AA) - Q2 adj. EPS 0.39 (exp. 0.35), Q2 revenue USD 3.02bln (exp. 2.92bln). Expects 2025 total aluminium segment production to remain unchanged from its prior projection. For Q3, aluminium segment expected to show sequential unfavourable impacts; guides Q3 operational tax expense to USD 50–60mln, sees USD 90mln tariff headwind, and 100mln alumina cost tailwind in aluminium. Backs FY25 alumina output; lowers FY25 aluminium shipments due to San Ciprian delays. Alcoa reaffirmed its FY25 outlook for the Alumina segment, expecting production of 9.5–9.7mln metric tons and shipments of 13.1–13.3mln metric tons.

Automakers - The US will waive fuel economy penalties for automakers for model years 2022–2024 under a new law signed by US President Trump, benefiting firms like GM (GM) and Stellantis (STLA), Reuters reports. The move rolls back fines under the 1975 CAFE rules, and is expected to save automakers around USD 200mln, drawing criticism from environmental groups.

Bristol-Myers Squibb (BMY) - Morgan Stanley views Bristol Myers’ upcoming Phase 3 data for Cobenfy in Alzheimer's disease psychosis, expected late Q3 or early Q4, as a potential share catalyst. It said that despite keeping an Underweight rating with a USD 34 price target, it expects modest stock gains if the data shows significant improvement, noting recent moderation in schizophrenia prescriptions.

Kinder Morgan (KMI) - Kinder Morgan reported higher profit and revenue driven by increased demand for natural gas, with strong contributions from its pipelines and terminals segments. Q2 EPS 0.28 (exp. 0.27), Q2 revenue USD 4.04bln (exp. 3.75bln). Management highlights strong LNG export trends, favourable regulatory conditions, and long-term take-or-pay contracts as drivers of future growth. CEO said its backlog was up +6% Q/Q at USD 9.3bln, reflecting rising demand driven by LNG exports and power generation. Natural gas projects make up 93% of the backlog, with 50% linked to power. The company is targeting over 5 Bcf/d of new opportunities and expects 20% demand growth by 2030. CEO also noted favourable tax benefits from the recent budget reconciliation bill.

Sarepta Therapeutics (SRPT) - Sarepta will add a black box warning for acute liver injury and failure to the Elevidys label, following FDA guidance for AAV gene therapies. Shipments to non-ambulant patients are paused. Experts recommend enhanced immunosuppression with sirolimus; Sarepta will submit this protocol to the FDA and gather data from new and real-world cohorts. Sarepta also announced a restructuring plan to prioritise high-value programmes and meet 2027 financial obligations, cutting about 500 jobs (around 36% of its workforce). The plan aims for USD 400mln in annual cost savings from 2026, lowering adj. R&D and SG&A expenses to USD 800-900mln annually, with over USD 100mln savings expected in 2025 after one-time charges.

United Airlines (UAL) - Q2 adj. EPS 3.87 EPS (exp. 3.78), Q2 revenue USD 15.2bln (exp. 15.37bln). Q2 capacity +5.9% Y/Y, TRASM -4%, CASM-ex +2.2%. United saw a positive shift in demand beginning in early July, and anticipates another inflection in industry supply in mid-August. In early July, United saw a sequential 6 point acceleration in demand, and a double-digit acceleration in business demand vs Q2 on less geopolitical and macroeconomic uncertainty. However, Newark constraints remain a drag, and the Newark disruption cut Q2 margins by around 1.2pts. Domestic yields declined, pricing is still weak. United expects cost cuts and reduced unprofitable routes to support H2 fares. Sees Q3 adj. EPS between 2.25-2.75 (exp. 2.55); Expects to accrue between 175mln and 225mln in Q3 2025. Sees FY adj. total CAPEX less than USD 6.5bln; sees FY adj. EPS between 9.00-11.00 (exp. 9.89).

17 Jul 2025 - 06:54- Geopolitical- Source: Newsquawk