Newsquawk Daily European Equity Opening News - 23rd May 2025

ASIA

APAC stocks were mostly in the green albeit with gains in the region capped following the indecisive performance stateside where participants digested PMI data and the House approved US President Trump's tax bill to send it to the Senate. ASX 200 eked mild gains as the strength in real estate, energy, tech, telecoms and financials was partially offset by losses in defensives and miners. Nikkei 225 returned to above the 37,000 level with the index unfazed by the firmer-than-expected Core CPI data, while Japanese Economy Minister Akazawa is visiting the US for a third round of talks and is reportedly planning to visit again late next week for a fourth round of discussions. Furthermore, Japanese PM Ishiba had a call with US President Trump and discussed US tariffs, diplomacy and security although no major developments were announced. Hang Seng and Shanghai Comp gained but with advances in the mainland limited in the absence of any fresh significant macro drivers, although there were some talks between the US and China at a deputy ministerial level, in which the US Deputy Secretary of State spoke with his Chinese counterpart on Thursday and discussed a wide range of issues of mutual interest. The two agreed on the importance of keeping open lines of communication.

US-China - US President Trump and Chinese President Xi have not spoken since the Geneva agreement, according to CNN. (CNN)

EUROPEAN CLOSES

CLOSES: DAX: -0.47 % at 24,008, FTSE 100: -0.54 % at 8,739, CAC 40: -0.58 % at 7,864, Euro Stoxx 50: -0.60 % at 5,422, AEX: -0.69 % at 927, IBEX 35: -0.30 % at 14,265, FTSE MIB: -0.73 % at 40,257, SMI: -0.79 % at 12,278, PSI: +0.25 % at 7,376.

SECTORS: Telecoms 0.14%, Utilities -0.08%, Financials -0.33%, Consumer Stpl -0.46%, IT -0.64%, Materials -0.67%, Industrials -0.74%, Healthcare -0.95%, Energy -1.34%, Consumer Disc -1.34%

FTSE 100

GSK (GSK LN) - GSK's Nucala (mepolizumab) was approved by FDA as add-on maintenance for adults with inadequately controlled COPD and eosinophilic phenotype, based on positive phase III trial data showing significant reduction in moderate/severe exacerbations. (Newswires) Potentially of note for Sanofi (SAN FP), which has developed a similar treatment

Rio Tinto (RIO LN) -  Chile's Enami selected Rio Tinto for the Altoandinos lithium project with expected total investment at USD 3bln, while Rio Tinto is expected to contribute USD 425mln to the project. (Newswires)

Shell (SHEL LN) - Co. has agreed to transfer ownership of Indonesia unit to JV between Citadel and Sefas. Transfer covers gas station business but not lubricants. (Newswires)

UK Consumer Confidence - UK GfK Consumer Confidence (May) -20.0 vs. Exp. -22.0 (Prev. -23.0). (Newswires)

OTHER UK COMPANIES

BROKER MOVES

DAX

Porsche (PAH3 GY) - Co. is taking bids for EUR 750mln Schuldschein debt sale, via Bloomberg. (Bloomberg)

Qiagen (QGEN GY) - Qiagen expands oncology research portfolio via partnership with ID Solutions to supply digital PCR assays for non-clinical use on QIAGEN’s QIAcuity platforms.

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

US-EU Trade - US President Trump pushes the EU to cut tariffs or face extra duties with US negotiators to tell Brussels they expect unilateral concessions, according to FT. (FT)

Azimut (AZM IM) - Co. signs a binding agreement with FSI for the creation of TNB. Transaction with potential total value of about EUR 1.2bln to be realised over time. Updates 2025 Net Income target to EUR 1bln. TNB is expected to generate Azimut a minimum of EUR 2.4bln in fees over next 12 years. (Newswires)

Banco BPM (BAMI IM) / UniCredit (UCG IM) - CEO said "we will appeal to administrative court against the Consob decision to suspend the UniCredit bid; current situation prevents us from taking part in M&A", via Sole 24 Ore. Elsewhere, Repubblica reports that UniCredit has appealed to administrative court against Italy's golden power conditions on its bid for Banco BPM. (Sole 24 Ore / Repubblica)

Enel (ENEL IM) - Renews buyback program of up to 500mln shares or up to EUR 3.5bln. (Newswires)

Fincantieri (FCT IM) - Italian Foreign Minister says investments in Mexico could be through Fincantieri. (Newswires)

BROKER MOVES

SMI

Roche (ROG SW) - New two-year follow-up of Roche’s Columvi extends overall survival in relapsed or refractory diffuse large B-cell lymphoma patients. 89% of patients whose cancer had fully responded at end of treatment with Columvi in combination with chemotherapy were still alive, and 82% showed no signs of cancer one year post-treatment. Elsewhere, FDA approves Roche’s Susvimo for diabetic retinopathy. Susvimo available to US retina specialists. US FDA has approved Susvimo 100 mg/ml for treatment of diabetic retinopathy. (Newswires)

OTHER SWISS COMPANIES

Kuehne Und Nagel (KNIN SW) - Co. acquires TDN; immediately earnings accretive and is expected to be completed in the coming weeks. (Newswires)

BROKER MOVES

SCANDINAVIA

Novo Nordisk (NOVOB DC) / Hims & Hers Health (HIMS) - Hims & Hers Health introduces 6-month Wegovy new customer offer; new customers can access Wegovy for USD 549/mnth for 6 months. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.04% at 5,842, NDX +0.15% at 21,112, DJI unch at 41,859, RUT -0.05% at 2,046

SECTORS: Utilities -1.41%, Health -0.76%, Energy -0.44%, Consumer Staples -0.41%, Real Estate -0.41%, Financials -0.11%, Materials -0.07%, Industrials unch, Technology +0.12%, Communication Services +0.32%, Consumer Discretionary +0.56%.

Autodesk (ADSK) - Autodesk raised its FY revenue view, driven by strong demand for cloud-based design software and AI investments. CEO highlighted focus on cloud and AI innovations after a 9% workforce cut to improve margins. It reported Q1 adj. EPS of 2.29 (exp. 2.15), Q1 revenue USD 1.63bln (exp. 1.61bln). Sees Q2 adj. EPS between 2.44-2.48 (exp. 2.34), and sees Q2 revenue between USD 1.72-1.73bln (exp. 1.7bln). For the FY26, adj. EPS is seen between 9.50-9.73 (exp. 9.51), and FY26 revenue between USD 6.93-7.31bln (exp. 6.93bln). Company cites strong Q1 amid macro uncertainty, and will allocate more capital to share repurchases as its FCF grows.

Apple (AAPL) - Apple is expanding its manufacturing in India, despite President Trump’s push to reshore production to the US. Apple is set to expand India's supply chain via a USD 1.5bln Foxconn (2317 TT) component plant near Chennai, and a USD 450mln chip assembly unit in Uttar Pradesh, FT reports. India’s government is boosting incentives for electronics manufacturing, aiming to grow as a supply chain hub beyond China.

Goodyear Tire (GT) - Goodyear will sell most of its chemical business to Gemspring Capital for about USD 650mln. The deal includes chemical facilities in Texas and a research office in Ohio, with a long-term supply agreement. Proceeds will be used to reduce debt and fund new initiatives. The transaction is expected to close late this year.

Intuit (INTU) - Shares rose around 4% afterhours following strong tax season results and upbeat outlook. Q3 adj. EPS 11.65 (exp. 10.91), Q3 revenue USD 7.75bln (exp. 7.57bln). Sees Q4 adj. EPS 2.63-2.68 (exp. 2.59), and sees Q4 revenue between USD 3.723-3.760bln (exp. 3.51bln). For the FY, sees FY adj. EPS between 20.07-20.12 (exp. 19.34), and revenue between USD 18.723-18.760bln (exp. 18.35bln).

Microsoft (MSFT) - The FTC dropped its case to block Microsoft’s USD 69bln acquisition of Activision Blizzard, citing public interest. The deal, closed in 2023, was the largest in the gaming market.

Ross Stores (ROST) - Q1 EPS 1.47 (exp. 1.43), revenue USD 4.98bln (exp. 4.96bln), Q1 comp store sales flat Y/Y. Sees Q2 EPS 1.40-1.55 (exp. 1.64), Q2 comp store sales flat to +3%. Q2 earnings guidance includes around 0.11-0.16/shr cost impact from announced tariffs. More than half of goods they sell originate from China. Expects pressure on profitability if tariffs remains at elevated levels. For 13 weeks ending August 2nd, 2025, comp sales now projected to be flat to up 3% on top of 4% gain in Q2 of last year. Withdraws FY25 guidance citing macroeconomic and tariff-related uncertainties impacting profitability.

Workday Inc (WDAY) - Shares fell over 7% afterhours following disappointing guidance. Q1 adj. EPS 2.23 (exp. 2.01), Q1 revenue USD 2.24bln (exp. 2.22bln). Q1 subscription revenue USD +13.4% Y/Y at USD 2.059bln. Announced a USD 1bln share buyback. Sees Q2 subscription revenue at USD 2.16bln. Reaffirms FY26 subscription revenue view of USD 8.8bln, raises FY26 adj. op. margin guidance to around 28.5%.

23 May 2025 - 06:54- Research Sheet- Source: Newsquawk