Newsquawk Daily European Equity Opening News - 20th March 2025

ASIA

APAC stocks traded mixed with most indices in the green as the region initially took its cue from the gains on Wall St in the aftermath of the FOMC meeting where the Fed kept rates unchanged and slowed its balance sheet run-off, while Chinese markets bucked the trend and Japanese participants were absent due to Vernal Equinox Day. ASX 200 outperformed with gains led by the tech and real estate sectors amid a lower yield environment, while disappointing jobs data did little to derail the momentum in the index. KOSPI advanced amid strength in tech including index heavyweight Samsung Electronics which recently held its AGM and announced the appointment of one of its CEOs. Hang Seng and Shanghai Comp were subdued as participants navigated through earnings releases and after the lack of surprises from the announcement that China's benchmark Loan Prime Rates were kept unchanged.

Chinese LPR - Chinese Loan Prime Rate 5Y (Mar) 3.60% vs. Exp. 3.60% (Prev. 3.60%); Loan Prime Rate 1Y (Mar) 3.10% vs. Exp. 3.10% (Prev. 3.10%). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -0.34% at 23,302, FTSE 100: +0.02% at 8,707, CAC 40: +0.70% at 8,171, Euro Stoxx 50: +0.44% at 5,509, AEX: +0.96% at 923, IBEX 35: +0.40% at 13,408, FTSE MIB: +0.45% at 39,713, SMI: -0.14% at 13,034, PSI: -0.33% at 6,903

SECTORS: Energy 1.61%, IT 0.69%, Industrials 0.43%, Consumer Disc 0.31%, Utilities 0.23%, Financials 0.03%, Materials -0.06%, Consumer Stpl -0.20%, Healthcare -0.27%, Telecoms -0.33%

FTSE 100

BP (BP/ LN) - Climate activist group 'Follow This' is urging BP investors to vote against Chairman Helge Lund's reappointment at the upcoming AGM on April 17th, Bloomberg reports. It follows BP's shift back to oil and gas, which the activist group criticises, citing a lack of shareholder approval for the change in strategy. (Bloomberg)

Ex-dividends - Hikma Pharmaceuticals (HIK LN), Pearson (PSON LN), Beazley (BEZ LN) are no longer entitled to their latest dividend payouts. (Newswires)

Prudential (PRU LN) - FY (USD): Adj. Op. PBT 3.12bln; second interim dividend of 16.29c/shr. (Newswires)

UK Spending - UK Chancellor Reeves will announce biggest spending cuts since austerity at next week’s spring statement after ruling out tax rises as a way to close her budget deficit, via The Guardian. (The Guardian)

Unilever (ULVR LN) - Co. intends to dismiss Ben & Jerry's lawsuit, noting that it supported its social advocacy work but has shifted unacceptably over time. (Newswires)

UK Pharma - Major pharmaceutical companies, including AstraZeneca (AZN LN), Gilead (GILD), and Johnson & Johnson (JNJ), have expressed concerns that the UK is becoming "uninvestable," Bloomberg reports. This sentiment threatens the Labour government's plans to boost the economy through a robust life sciences sector, warning of slower access to innovations and medicines for patients. (Bloomberg)

OTHER UK COMPANIES

BROKER MOVES

Bunzl (BNZL LN) upgraded to Buy from Hold at HSBC

DAX

Lanxess (LXS GY) - FY24 (EUR): Net Income -177mln (exp. 77mln, prev. 443mln Y/Y), Adj. EBITDA 538mln (exp. 591mln, prev. 328mln Y/Y), Revenue 6.37bln (exp. 6.42bln, prev. 6.17bln Y/Y). Guides Q1 EBITDA 25-35% Y/Y. (Newswires) Shares -2.8% in pre-market trade

RWE (RWE GY) - FY (EUR): Adj. Net Income 2.32bln (exp. 3.1bln, prev. 4.1bln Y/Y), Adj. EBITDA 5.68bln (exp. 5.53bln), External Revenue 24.2bln (prev. 28.5bln Y/Y); raises FY24 dividend to EUR 1.1/shr and intends to raise its dividend to EUR 1.20/shr in 2025. Guides initial FY25 Adj. Net Income 1.3-1.8bln (exp. 1.53bln), Adj. EBIT 2.35bln-2.95bln (exp. 2.72bln). Cuts 2030 investment programme by EUR 10.9bln citing uncertainty, geopolitical risks and supply constraints. (Newswires)

OTHER GERMAN COMPANIES

Deutz (DEZ GY) - FY (EUR): Revenue 1.81bln, -12.1% Y/Y, Adj. EBIT 76.7mln, -46.6% Y/Y. To propose dividend of EUR 0.17/shr. Outlook 2025: Revenue 2.1-2.3bln. (Newswires)

Hapag Llyod (HLAG GY) - FY (EUR): Net Income 2.58bln (exp. 2.30bln), EBITDA Margin 24%. FY Outlook: EBIT 0-1.5bln (exp. 924mln); EBITDA 2.5-4bln (exp. 3.25bln). Cuts FY dividend to EUR 8.20/shr (prev. 9.25/shr). (Newswires)

Nemetschek SE (NEM GY) - FY (EUR): Net Income 175.4mln (prev. 161.3mln Y/Y), EBITDA 301mln (prev. 258mln Y/Y). (Newswires)

BROKER MOVES

BMW (BMW GY) downgraded to Hold from Buy at HSBC

Puma (PUM GY) resumed with Hold at Kepler

CAC

BNP Paribas (BNP FP) - Les Echoes reports that the bank is considering closing approx. 500 bank branches in France between 2025-2030. (Les Echoes)

Eurofins Scientific (ERF FP) - To launch new share buyback programme for max amount representing 4.5% of its share capital. (Newswires)

Sanofi (SAN FP) - To acquire Dren Bio's bispecific meloid cell engager for deep B-cell depletion for USD 600mln upfront. (Newswires)

Safran (SAF FP) - Co. has offered the sale of its North American unit, as a remedy to address EU concerns regarding its USD 1.8bln bid for Collins Aerospace's flight controls business, according to Reuters citing sources. (Reuters)

TotalEnergies (TTE FP) - TotalEnergies is considering purchasing green hydrogen from a multi-billion dollar project being developed by Casa dos Ventos in northeastern Brazil. The French energy company, which holds a 34% stake in the project's wind and solar unit, may also take a direct share in the initiative to supply its European refineries, Bloomberg suggests.

OTHER FRENCH COMPANIES

Sodexo (SW FP) - H1 (EUR): Revenue 12.5bln (prev. 12.1bln Y/Y); cuts FY guidance citing slower than exp. organic growth in North America. Cuts FY25 Organic Revenue +3-4% (prev. guided 5.5-6.5%). (Newswires)

Valneva (VLA FP) - FY24 (EUR): Revenue 169.6mln (prev. 153.7mln Y/Y). (Newswires)

BROKER MOVES

PAN EUROPE

Geopolitics - Ukrainian President Zelensky says Ukraine-US officials may meet this Friday and Saturday or Sunday, adds his conversation with Trump on Wednesday was substantive and he felt no pressure from Trump. Ukraine President Zelensky says he had a 'frank and substantial' talk with US President Trump; Trump informed him about call with Putin. "One of the first steps toward fully ending the war could be ending strikes on energy and other civilian infrastructure. I supported this step, and Ukraine confirmed that we are ready to implement it.""The American side also proposed an unconditional ceasefire on the frontline, and Ukraine accepted this proposal as well. We will continue working to make this happen." (Newswires)

Trade - US President Trump says he believes "India is probably going to be lowering tariffs substantially but on April 2nd, we will be charging them the same tariffs they charge us." (Newswires)

Jeronimo Martin (JMT PL) - Q4 (EUR): Revenue 8.7bln (exp. 8.7bln), EBITDA 598mln (exp. 573.7mln). (Newswires)

Shipping Names - Strikes reportedly hit Houthis stronghold in Yemen's Sanaa, according to Reuters citing residents. (Reuters)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +1.08% at 5,675, NDX +1.30% at 19,737, DJI +0.92% at 41,965, RUT +1.57% at 2,082

SECTORS: Health +0.02%, Real Estate +0.07%, Consumer Staples +0.12%, Utilities +0.30%, Materials +0.34%, Financials +1.04%, Industrials +1.29%, Communication Services +1.29%, Technology +1.42%, Energy +1.59%, Consumer Discretionary +1.90%.

BYD Company (BYDDY) - The EU is investigating whether BYD's electric vehicle plant in Hungary received unfair Chinese subsidies, FT reports. The probe could lead to asset sales, fines, or repayment of subsidies if violations are found. The plant, part of BYD’s expansion in Europe, has raised concerns due to its use of Chinese labour and imported parts.

Chevron (CVX) - The Trump administration is considering extending Chevron’s license to operate in Venezuela, reversing an earlier decision to end it by April, WSJ reports. The US is also weighing tariffs on countries buying Venezuelan oil to limit China’s influence and pressure President Maduro into negotiations.

Geely Automobile (GELYY) - Geely's net profit for 2024 surged 213%, driven by strong sales and record exports. Revenue increased by 34%. Its performance solidifies its position as a key player in China's competitive electric vehicle sector, WSJ said.

SoftBank (SFTBY) - SoftBank will acquire Arm-based server chip designer Ampere Computing for USD 6.5bln. Carlyle Group (CG) and Oracle (ORCL) will sell their stakes, with Ampere remaining an independent subsidiary in California, CNBC reports. The deal is expected to close in H2 2025, and aligns with SoftBank’s AI expansion, including its partnership with OpenAI and involvement in Trump’s USD 500bln Stargate project.

Toyota Motor (TM) - Toyota subsidiary Hino Motors pleaded guilty in the US to a multi-year emissions fraud scheme and was fined USD 1.6bln. The penalties include a USD 521.8mln fine, a USD 1.1bln forfeiture, and USD 155mln emissions mitigation programme. Hino admitted to falsifying emissions data for over 105,000 vehicles from 2010-2022.

Nvidia (NVDA), Intel (INTC) - Nvidia CEO Jensen Huang stated the company has not been approached to buy a stake in Intel. He also noted strong AI chip demand, with Meta Platforms' (META) USD 65bln AI infrastructure spend boosting orders. Nvidia plans to shift production to the US in response to potential tariffs.

Samsung Electronics, (SSNLF), Nvidia (NVDA) - Samsung’s fifth-generation HBM3E memory received strong scores in Nvidia’s audit and is expected to pass certification by June, DigiTimes reports. It marks a key step for Samsung in securing Nvidia’s approval amid competitive pressure in the high-bandwidth memory market.

Zeekr (ZK) - Zeekr's Q4 2024 results showed a significant reduction in net losses to RMB 821mln, down 72.1% Y/Y, with a 39.2% rise in revenue to RMB 22.78bln. Vehicle sales drove the increase, rising 82.2% Y/Y. The company also achieved a record gross margin of 19.0%, reflecting cost reductions and improved vehicle margins.

20 Mar 2025 - 06:57- Research Sheet- Source: Newsquawk