Newsquawk Daily European Equity Opening News - 21st January 2025

ASIA

APAC stocks were mixed as the initial broad-based risk-on sentiment after US President Trump refrained from imposing tariffs on the first day of his return to the White House, was ultimately soured after he later flagged potential 25% tariffs on Canada and Mexico which could be imposed from the start of February. ASX 200 was led higher as outperformance in the top-weighted financials sector and gold miners helped pick up the slack from the weakness in energy and defensive stocks. Nikkei 225 briefly wiped out its opening gains with price action largely influenced by tariff rhetoric and a firmer currency. Hang Seng and Shanghai Comp were mixed after the recent tariff-related fluctuations in asset classes, while President Trump also floated the idea of universal tariffs on anyone doing business with the US but added that they are not there yet.

Alibaba (9988 HK) - Alibaba Cloud announced the latest AI models, tools and infrastructure available to drive more efficient global AI community. (Newswires)

Country Garden Holdings (2007 HK) - Applied to the stock exchange to resume trading of shares today and stated that directors have been undertaking a number of plans and measures to mitigate liquidity pressure and improve the financial position. (Newswires)

Nissan (7201 JT) - Co. is considering cutting 6,700 jobs in manufacturing division which is part of the 9,000 global job cuts previously announced, according to Nikkei. (Nikkei)

TSMC (2330 TT) - Co. says post-earthquake structural inspections have been completed at all sites, confirming that the structures are safe and operations are gradually resuming. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.42% at 20,990.31, FTSE 100: +0.18% at 8,520.54, CAC 40: +0.31% at 7,733.50, Euro Stoxx 50: 0.32% at 5,164.65, AEX: +0.36% at 917.51, IBEX 35: +0.23% at 11,943.60, FTSE MIB: -0.34% at 36,143.83, SMI: +0.29% at 12,025.27, PSI: +0.31% at 6,583.91.

SECTORS: Materials 0.86%, Industrials 0.49%, IT 0.47%, Financials 0.34%, Consumer Disc 0.13%, Consumer Stpl 0.10%, Telecoms -0.09%, Energy -0.56%, Healthcare -0.77%, Utilities -1.15%

FTSE 100

Mining Stocks - BHP (BHP AT) reported quarterly iron ore WAIO production rose 1% Y/Y to 73.1mln tons, copper production rose 17% Y/Y to 510.7k tons, nickel production fell 59% Y/Y to 8k tons, Co. said it is on track to deliver production in the upper half of the FY25 guidance range at WAIO, BMA and NSWEC, as is Samarco, Co. sees costs to be elevated in HY FY25 For Nickel West and it intends to review decision to temporarily suspend Western Australia Nickel by February 2027. (Newswires)

UK Housing - UK Chancellor Reeves backs plans for looser limits on mortgage lending and favours proposals by the financial regulator for banks to take more risks to boost home ownership, according to FT. (FT)

UK Loan-Providers - UK Chancellor Reeves reportedly intervenes in a car finance mis-selling case to protect lenders in which she launched an effort to shield car loan providers from multibillion-pound payouts, of note for Close Brothers (CBG LN) and Lloyds (LLOY LN), according to FT. (FT)

OTHER UK COMPANIES

Monzo - Co. is holding preliminary talks with bankers as it works to be IPO ready by end-2025, via FT citing sources; CEO reportedly favours a US IPO while the board would prefer a UK listing. (FT)

BROKER MOVES

BT (BT/ LN) initiated with Underperform at Oddo

Rightmove (RMV LN) downgraded to Underperform from Hold at Jefferies

Next (NXT LN) upgraded to Overweight from Equal Weight at Morgan Stanley

Pearson (PSON LN) downgraded to Equal Weight from Overweight at Morgan Stanley

DAX

OTHER GERMAN COMPANIES

Kontron (KTN GY) – Prelim. FY 2024 (EUR): EBITDA likely to exceed target of 190mln; Rev. to exceed 1.7bln, +40% Y/Y. 2025: Expects Rev. 1.9-2bln. (Newswires)

BROKER MOVES

CAC

Eiffage (FGR FP) – Won a contract to renovate and extend a container terminal in Port of Matadi in a deal worth over EUR 100mln. (Newswires)

Sanofi (SAN FP) - Opella reaches study milestone for Cialis. has lifted a clinical hold on its planned actual use trial (AUT) to support the switch of Cialis (tadalafil) from a prescription to an over-the-counter medicine. The company is completing the clinical and regulatory activities necessary to initiate the pivotal AUT. (Sanofi)

OTHER FRENCH COMPANIES

Atos (ATO FP) – Estimated 2024 year-end liquidity position well above business plan. (Newswires)

Bureau Veritas (BVI FP) – To acquire a leading business and infrastructure business in Italy in line with Leap I 28. (Newswires)

BROKER MOVES

Legrand (LR FP) upgraded to Buy from Hold at Redburn

PAN EUROPE

Aedfica (AED BB) – To sell a portfolio of 22 care properties in Sweden for SEK 576mln; currently looking to offload rest of portfolio. (Newswires)

Auto Names – New car sales in Europe rose 0.9% in 2024; In December, Renault (RNO FP) market share in Europe surpassed Stellantis (STLAM IM/STLAP FP) for the first time since Jan 2021. Renault registered 130.1k vehicles in Europe during December vs Stellantis 126.1k. (Newswires)

Auto/Machinery/Oil Stocks - US President Trump says they are thinking in terms of 25% tariffs on Mexico and Canada and thinks will do it on February 1st. Analysts note that Stellantis (STLAM IM/STLAP FP) import around 40% of its vehicles they sell in the US. (Newswires)

Banco BPM (BAMI IM) – Government decided not to exercise “golden powers” in relation to its bid for Anima Holdings (ANIM IM). (Newswires)

European Stocks - EU finance ministers agreed to stay united in approach to new US administration and that more competitive EU economy is best answer to potential economic challenges from US, also agree it is in EU and US interests to develop strong economic relationship. (Newswires)

Flight/Travel Names - UK ministers are reportedly close to approving a major expansion at Gatwick, via FT; one source stated approval is an “absolute sure thing” given the economic benefits. (FT) Gatwick is owned by Vinci SA’s (DG FP) VINCI Airports and GIP

Generali (G IM) – Co. and BPCE's Natixis sign a non-binding deal for an asset management JV. Generali to provide EUR 15bln of seed money and opportunities for synergy and growth; expected to be completed by early 2026. (Newswires)

Raiffeisen Bank (RBI AV) - Raiffeisen Bank Russia will book a provision for Q4’24; Russia court orders Strabag to pay EUR 2.044bln to Rasperia. (Newswires)

Wind Farms - Sweden Government proposed raising property tax on wind farms to 0.5% (currently 0.2%). (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

Orsted (ORSTED DC) – Announced impairment regarding US interest rate increases, value of seabed leases and execution of Sunrise wind. EBITDA excluding new partnership agreements and cancellation fees of DKK 24.8bln, which is in line with guidance. Results in a DKK 12.1bln impairment in Q4’24. Sunrise wind project impairment of DKK 4.3bln due to delays and costs. (Newswires)

BROKER MOVES

US - CLOSED ON MONDAY

US markets were closed for Martin Luther King Jr. Day, although US equity futures were bid with outperformance in the Russell while ES, NQ and YM saw mild gains. T-Note futures were also underpinned with morning weakness pared after reports that President Trump is to avoid day-one tariff policies, which ultimately was confirmed and largely dictated trade for the session.

Barrick Gold (GOLD) - Barrick Gold is exploring the sale of its 50% stake in the Zaldivar copper mine in Chile, focusing on larger, more profitable projects. The company has appointed advisors and reached out to potential buyers. Barrick jointly owns the Zaldivar mine with Antofagasta (ANTO LN).

US Regulators - President Trump appointed Travis Hill, former FDIC vice chairman, as the acting head of the Federal Deposit Insurance Corp. Hill, a Republican, had previously criticised policies of the outgoing FDIC chair Martin Gruenberg. Trump also appointed Caroline Pham as acting chair of the CFTC, with her appointment confirmed by the commission's five members.

US Energy - President Donald Trump has initiated a major overhaul of US energy policy, focusing on increasing fossil fuel production and rolling back Biden-era climate policies; his directives cover a wide range of sectors, from oil fields to renewable energy and consumer products. It follows weekend reports that Trump plans moves to facilitate new oil and gas development on federal lands. It also comes amid reports that Asian buyers of fossil fuels, including those from South Korea, Taiwan, and Vietnam, were increasing imports of US oil and gas to address trade tensions and appease incoming President Trump, who has threatened tariffs on nations with trade surpluses. And elsewhere, Trump reiterated his demand that the EU increase imports of US oil and gas to avoid tariffs, stating that the US would impose tariffs unless the EU buys more American energy. Trump also said that the US will likely cease purchasing oil from Venezuela, citing the country’s ample domestic oil supply.

US Wind - President Trump’s energy policies will end leasing to massive wind farms that degrade our natural landscapes and fail to serve American energy consumers. (Newswires)

21 Jan 2025 - 06:54- EquitiesResearch Sheet- Source: Newsquawk