Newsquawk Daily European Equity Opening News - 23rd July 2025

ASIA

APAC stocks were mostly higher as focus centred on the latest trade developments after US President Trump announced three trade deals in one day with the Philippines, Indonesia and Japan, with the latter involving a USD 550bln investment in the US and 15% tariffs for Japanese goods. ASX 200 gained with the advances led by strength in materials, miners, energy and resources, while defensives are at the other end of the spectrum. Nikkei 225 surged above 41,000 following the announcement of a US-Japan trade deal involving a 15% tariff on Japanese goods including autos and auto parts which is less than the previous threat of 25% tariffs and in turn, boosted automakers which dominated the list of biggest gainers with several up by double-digit percentages, while there were also tailwinds as the JPY slightly softened in the aftermath of a report that PM Ishiba is to announce his resignation by the end of August. Hang Seng and Shanghai Comp conformed to the mostly positive risk tone with US President Trump noting that there will probably be a meeting with Chinese President Xi in the not-too-distant future, while US Treasury Secretary Bessent said they will likely work out an extension regarding the August 12th deadline with China and he will attend talks next Monday and Tuesday with China in Stockholm.

US Trade Deals - US-Japan trade deal was announced involving 15% tariffs on Japanese goods, including Japanese autos and auto parts, which is less than the previous threat of 25% tariffs, although Japan and the US agreed to keep the current 50% tariff on steel and aluminium. US President Trump announced a trade deal with the Philippines and Indonesia; both will pay a 19% tariff. (Newswires)

Alibaba (9988 HK) - Co. launched open-sourced AI coding model Qwen3-Coder, which is designed for high-performance software development and is touted as Alibaba's most advanced AI coding model to date. (Newswires)

EUROPEAN CLOSES

EUROPEAN CLOSES: Euro Stoxx 50 -1.01% at 5,289, Dax 40 -1.15% at 24,027, FTSE 100 +0.12% at 9,024, CAC 40 -0.69% at 7,744, FTSE MIB +0.00% at 40,165, IBEX 35 -0.07% at 14,022, PSI +0.97% at 7,746, SMI -0.50% at 11,877, AEX -0.80% at 901.

SECTORS: Utilities 1.29%, Telecoms 0.79%, Healthcare 0.58%, Consumer Stpl 0.34%, Energy 0.10%, Consumer Disc -0.09%, Materials -0.17%, Financials -0.60%, Industrials -1.43%, IT -2.14%

FTSE 100

Glencore (GLEN LN) - Glencore will close its final two copper mines in Mt Isa, Queensland, next week, ending its upstream copper operations in Australia, Bloomberg reports. The move follows a 2023 review citing declining ore grades, and a decision on the associated smelter’s future is still pending.

NatWest (NWG LN) - Co. has hired Accenture (ACN) and Amazon's (AMZN) Web Services to overhaul its customer data systems. (FT)

Prudential (PRU LN) - Co. has launched its search to replace Chair Shriti Vadera. (FT)

OTHER UK COMPANIES

BROKER MOVES

Compass (CPG LN) upgraded to Buy from Hold at Kepler Cheuvreux

DAX

SAP (SAP GY) Q2 2025 (EUR): Adj. EPS 1.50 (exp. 1.39), Revenue 9bln (exp. 8.85bln), Cloud revenue 5.13bln (exp. 5.17bln), Adj. EBIT 2.58bln (exp. 2.42bln); outlook 2025 unchanged. SAP's US listing fell 3% after cloud revenue slightly missed expectations. Q2 cloud and software revenue +11% Y/Y at EUR 7.97bln (exp. 7.99bln), as tariff-related uncertainty weighed. Adj. EBIT 2.58bln (exp. 2.42bln); its Q2 cloud backlog was +22% Y/Y at EUR 18.1bln. Exec said performance was supported by continued customer demand and disciplined cost control. As it enters H2, it remains cautiously optimistic and is keeping a close eye on geopolitical developments and public sector trends. Added that the outlook was "dynamic" with "elevated levels of uncertainty and reduced visibility," but backed its FY25 outlook: sees cloud revenue between EUR 21.6–21.9bln, operating profit between EUR 10.3–10.6bln, and FCF around EUR 8.0bln. (Newswires) Note: Citi and Baader Helvea analysts saw scope for SAP to up its Op. Profit view. ; SAP holds the largest weighting in the DAX 40 (16.17%), Euro Stoxx 50 (7.26%) and STOXX 600 (2.36%). Shares -1.5% in pre-market trade

OTHER GERMAN COMPANIES

BROKER MOVES

Prosiebensat 1 Media (PSM GY) downgraded to Reduce from Hold at Kepler Cheuvreux

CAC

Eurofins Scientific (ERF FP) - H1 (EUR): Revenue 3.61bln (exp. 3.62bln, prev. 3.42bln Y/Y). Confirms its objectives for FY25 and for the mid-term to FY27. (Newswires)

Renault (RNO FP) - Vehicle Sales 1.17mln, +1.3% Y/Y; order book in Europe represents around 2 months of forecast sales at end-June 2025; expects Renault to maintain double digit sales growth outside Europe in H2. (Newswires)

Thales (HO FP) - Q2 (EUR): Revenue 5.31bln (exp. 5.41bln). Raises FY25 Revenue 21.8bln-22bln (prev. guided 21.7-21.9bln), Organic Revenue +6-7% (prev. guided +6-5%). (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Q1 (EUR): Orders 4.07bln (exp. 4.10bln), Sales 4.51bln (exp. 4.44bln). Confirms outlook. (Newswires)

Dassault Aviation (AM FP) - H1 (EUR): Order intake 8.075bln (prev. 5.13bln Y/Y), Adj. Net Sales 2.84bln (prev. 2.53bln Y/Y). CEO says are deciding if FCAS/SCAF continues or not. Denies reports that the Co. is asking for 80% share of SCAF programme. (Newswires)

Soitec (SOI FP) - Q1 (EUR): Revenue 92mln (exp. 93mln). Expects Q2'26 rev. to grow 50% vs Q1'26. (Newswires)

Ubisoft (UBI FP) - Q1 2025 (EUR): Net bookings 281.6mln (below Co. expectations); Q2 net bookings view 450mln; 2025-26 targets confirmed and outlines new operating model built around autonomous business units. (Newswires)

BROKER MOVES

PAN EUROPE

ASM International (ASM NA) - Q2 2025 (EUR): Net income 202.4mln (exp. 192mln), Operating results 258.5mln, Orders 702.5mln (exp. 843mln), revenue 835.6mln (exp. 823mln). Expect H2 revenue to be at a similar level to H1 at constant currencies. Continues to expect to outperform WFE market, which is forecasted to grow slightly this year. (Newswires)

Airbus (AIR FP)/BAE Systems (BA/ LN) - German government has cleared the way for delivery of 40 Eurofighter jets to Turkey, according to Spiegel. (Spiegel)

Airbus (AIR FP) / Kuehne und Nagel International (KNIN SW) - Kuehne und Nagel International extends its collaboration with Airbus for production and aftermarket logistics in Spain. (Newswires)

Bawag (BG AV) - Q2 (EUR): Pretax Profit 283.9mln (exp. 288mln). (Newswires)

Iberdrola (IBE SM) - H1 (EUR): EBITDA 8.29bln (exp. 8.21bln), Revenue 22.74bln. Co. starts EUR 5bln share capital increase to cover financing needs for co's upcoming investment plan. (Newswires)

Randstad (RAND NA) - Q2 (EUR): Net Income 84mln (prev. 118mln Y/Y). Notes that activity trends in early July remain in line with Q2'25 with volumes sequentially stable from June; to reappoint CEO Noordende at AGM. (Newswires)

Semiconductor names - Texas Instruments (TXN) shares fell almost 12% in extended trading after its Q3 forecast, while above most estimates, was more cautious than expected, fuelling concerns that recent tariff-driven demand may not last. Details in the US section below

UniCredit (UCG IM) - Q2 (EUR): Revenue 6.13bln (exp. 6.17bln), Net Profit 3.34bln (co. consensus 2.54bln), Net Interest Income 3.46bln (co. consensus 3.43bln), Net Fee & Commission Income 2.12bln (exp. 2.15bln); raises FY25 guidance: Net Profit exp. at 10.5bln (prev. guided 9.3bln); sees Net Rev. 23.5bln. Sees NII down mid-single digit. Sees stronger EPS, DPS Growth and distributions above or equal to EUR 9.5bln. (Newswires)

UniCredit (UCG IM), Banco BPM (BAMI IM) - UniCredit dropped its bid to acquire Banco BPM due to inability to secure government approval. Despite progress in talks, the bank’s board decided to withdraw the offer as a final resolution would have extended beyond the offer period. The move ends the plan to create Italy’s largest lender. UniCredit raised FY profit guidance to about EUR 10.5bln (from 9.3bln+), and expects to reach at least EUR 11bln by 2027. The bank plans to return at least EUR 9.5bln to shareholders in 2025, following the withdrawal of its Banco BPM bid.

BROKER MOVES

SMI

Lonza (LONN SW) - H1 (CHF): Profit 426mln (prev. 330mln Y/Y). For FY anticipates headwind of approx. -2.5 to -3.5% on sales mainly from weaker Dollar. Confirms outlook. (Newswires)

Roche (ROG SW) - European Commission approves Roche’s Itovebi for people with ER-positive, HER2-negative, advanced breast cancer with a PIK3CA mutation. (Newswires)

OTHER SWISS COMPANIES

AMS Osram (AMS SW) - Q2 (EUR): Revenue 775mln (exp. 780mln). Places EUR 500ln 2029 senior notes to pre-finance OSRAM minority put option exercises and buy back EUR 150mln 2027 convertible bonds. Q3: Sees Revenue 790-800mln. Affirms FY guidance. (Newswires)

Temenos (TEMN SW) - Q2 EBIT +28% with four points of margin expansion, H125 EBIT +19% in constant currency; Q2 FCF +8% to USD 65mln, H1 25 FCF +10%. FY28 targets reconfirmed. FY25 guidance raised. Subscription and SAAS growth of at least 6% (prev. 5-7%). (Newswires)

VAT (VACN SW) - Q2 (CHF): Sales 282.9mln (exp. 281mln). Q3: Sees Revenue 255-285mln. Confirms outlook. Notes that advanced industrials exp. to pick up in H2 due to demand for scientific instruments and industrial applications. (Newswires)

BROKER MOVES

SCANDINAVIA

Equinor (EQNR NO) - Q2 (USD): Revenue 25.1bln (exp. 25.2bln), Net Op. Income 1.74bln (exp. 1.8bln). Affirms guidance. Third tranche of share buyback of up to USD 1.265bln. Co. notes are on track to deliver production growth in 2025 in line with guidance. Net Op. Income hit by impairment of USD 955mln due to loss of synergies from future offshore wind products and tariff exposure. (Newswires)

Nokia (NOKIA FH) - Prelim Q2 (EUR): Revenue 4.55bln (exp. 4.776bln) and lowers 2025 operating profit guidance to 1.6-2.1bln (prev. 1.9-2.4bln) due to currency; current tariff landscape is expected to impact full year operating profit by 50-80mln. (Newswires)

SSAB (SSABB SS) - Q2 (EUR): Revenue 25.53bln (prev. 28.28bln Y/Y). On Tariffs, says, largest impact was seen on European steel which weakened. Notes that SSAB Europe is to adjust production levels and staffing levels during Q3. (Newswires)

Stora Enso (STERV1 FH) - Q2 (EUR): EBIT 126mln (exp. 122.7mln), Sales 2.42bln (Exp. 2.43bln). Direct impact of US tariffs at current rates are limited. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.03% at 6,308, NDX -0.50% at 23,064, DJI +0.46% at 44,525, RUT +0.81% at 2,249.

SECTORS: Health +1.89%, Real Estate +1.79%, Materials +1.28%, Utilities +1.27%, Consumer Discretionary +0.67%, Financials +0.54%, Energy +0.51%, Industrials +0.29%, Consumer Staples +0.25%, Communication Services -0.30%, Technology -1.08%.

AI - Microsoft (MSFT) hires nearly two dozen AI experts from Google DeepMind (GOOGL) to strengthen its AI team, according to CNBC. (CNBC) Elon Musk says 230k GPUs, including 30k GB200s, are operational for training Grok xAi in a single supercluster called Colossus 1. At Colossus 2, the first batch of 550k GB200s and GB300s start going online in a few weeks. The xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years. (Newswires)

ConocoPhillips (COP) - ConocoPhillips is nearing a USD 1.3bln sale of Oklahoma assets in the Anadarko Basin to Flywheel Energy, backed by Stone Ridge Energy, as it streamlines its portfolio, Bloomberg reports. A deal could be announced in the coming weeks, though talks may still fall through.

Baker Hughes (BKR) - Q2 adj. EPS 0.63 (exp. 0.55), Q2 revenue USD 6.91bln (exp. 6.65bln). Sees Q3 revenue between USD 6.45-7.15bln (exp. 6.77bln), and sees FY revenue between USD 26.5-27.7bln (exp. 26.88bln). Raised FY revenue and EBITDA guidance for the IET segment after USD 3.5bln in quarterly orders and a record backlog, supported by USD 550mln in data centre orders, despite no large LNG awards. Reaffirmed FY OFSE guidance, citing strategic portfolio optimisations and three recent transactions, aimed at boosting earnings durability and value creation. Exec highlighted confidence in sustainable growth and portfolio strength offsetting market softness.

EQT Corporation (EQT) - Q2 adj. EPS 0.45 (exp. 0.40), Q2 revenue USD 2.56bln (exp. 1.75bln). Production hit high-end of guidance, with strong well productivity and lower capital spending. FY25 per-unit operating cost guidance was lowered by 0.06/Mcfe, with annual production raised by 100 Bcfe, and no change to capital spending.

Texas Instruments (TXN) - Texas Instruments shares fell almost 12% in extended trading after its Q3 forecast, while above most estimates, was more cautious than expected, fuelling concerns that recent tariff-driven demand may not last; investor sentiment worsened during the earnings call as management adopted a more negative tone. It reported Q2 EPS of 1.41 (exp. 1.34), Q2 revenue USD 4.45bln (exp. 4.35bln). Revenue rose 9% sequentially and 16% Y/Y, led by industrial. The automotive recovery remains shallow; China revenue was about 19% of total sequentially in Q2. It noted that while tariffs are disrupting the global supply chain, industrial demand recovery continues. Sees Q3 EPS between 1.36-1.60 (exp. 1.51), and sees Q3 revenue between USD 4.45-4.80bln (exp. 4.62bln). It said that guidance does not include changes relating to the recent US tax legislation.

23 Jul 2025 - 06:59- Research Sheet- Source: Newsquawk