Newsquawk Daily European Equity Opening News - 25th February 2025

ASIA

APAC stocks traded lower following the weak handover from the US where the tech sector led the declines and risk appetite was sapped amid ongoing uncertainty surrounding tariffs and geopolitics. ASX 200 retreated with underperformance seen in the tech, consumer discretionary and financial sectors, while defensives showed resilience and energy was also lifted following a jump in Woodside Energy's profit. Nikkei 225 slumped at the open on return from the long weekend but was off worse levels as shares of Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo rallied following reports late last week that Berkshire Hathaway plans to gradually raise its investments in Japanese trading houses. Hang Seng and Shanghai Comp conformed to the negative mood amid headwinds from trade frictions with the US seeking to tighten chip controls on China and after the PBoC's MLF operation resulted in a net drain of CNY 200bln. Nonetheless, Chinese markets were well off today's worst levels as the heavy slump at the open spurred some dip buying.

Chinese Stocks - Mexico studies tariffs on China in bid to strike deal with US President Trump; President Sheinbaum says she sees agreements with US by Friday and that Mexican officials are in Washington studying possible China levies, via Bloomberg. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.60% at 22,421, FTSE 100: 0.00% at 8,659, CAC 40: -0.78% at 8,091, Euro Stoxx 50: -0.51% at 5,448, AEX: -0.34% at 934, IBEX 35: +0.47% at 13,013, FTSE MIB: +0.13% at 38,473, SMI: -0.08% at 12,939, PSI: +1.62% at 6,819.

SECTORS: Utilities 2.05%, Consumer Stpl 1.62%, Telecoms 0.89%, Healthcare 0.25%, IT -0.11%, Financials -0.15%, Energy -0.30%, Industrials -0.89%, Materials -0.92%, Consumer Disc -1.15%

FTSE 100

BP (BP/ LN) - Co. is reportedly to abandon its pledge to reduce gas and oil output, via FT citing sources; additionally, Co. is set to announce at least one major divestment on Wednesday’s investor day. Elliot, who has a c. 5% stake, is reportedly urging the Co. to make significant divestments. (FT)

OTHER UK COMPANIES

Aston Martin (AML LN) – CEO is planning to cut costs by slowing model development and cut delivery targets, according to Bloomberg. (Bloomberg)

BROKER MOVES

DAX

Fresenius Medical Care (FME GY) – Q4 (EUR): Revenue 5.09bln (exp. 5.15bln), EPS 0.91 (prev. 0.52 Y/Y), Op. Income 489mln (prev. 428mln Y/Y). Guides initial FY25 Revenue “grow low-single digit % Y/Y”. (Newswires) Shares +2.5% in pre-market trade

Heidelberg Materials (HEI GY) – FY24 (EUR): Revenue 21.2bln (exp. 21.1bln). Second tranche of share buyback programme to start in Q2’25. Outlook 2025: Expects group results from current operations to rise to EUR 3.25-3.55bln (vs 2024: 3.2bln Y/Y). (Newswires)

OTHER GERMAN COMPANIES

ThyssenKrupp (TKA GY) - Announces EGM ahead of its warship division spin-off. (Newswires) Shares +2.8% in pre-market trade

BROKER MOVES

CAC

Bureau Veritas (BVI FP) - FY24 (EUR): Adj. EPS 1.38 (exp. 1.36), Adj. Op. 996.2mln (prev. 930.2mln Y/Y), Revenue 6.24bln (prev. 5.87bln Y/Y). Guides initial FY25 Organic Revenue "mid to high single digit growth". (Newswires)

Dassault Systems (DSY FP) – Announces Centric Software’s acquisition of AI-Powered PXM Solution and Contentserv for EV of EUR 220mln; due to close in the coming weeks. (Newswires)

Sanofi (SAN FP) - Sarclisa approved in Japan for patients with newly diagnosed multiple myeloma. Approval offers access to new treatment options for newly diagnosed MM patients. (Sanofi)

Trump-Macron Meeting - US President Trump said he spoke with French President Macron about trade deals at the White House. French President Macron, after speaking with US President Trump, said we have made substantive steps forward during discussions. Europe has invested USD 138bln in aid to Ukraine. Minerals deal will help guarantee Ukraine sovereignty. Peace must allow for Ukraine sovereignty. Went into details with Ukraine will provide solid security guarantee. Europeans are committed, ready and aware they need to do more. On economy, wants fair competition between US and EU. Pointed out that the US has a surplus in services with Europe. US is a big exporter of tech services to Europe. They are at the US's side to work for more security in the Middle East. After talks with President Trump, he is convinced there is a path. (Newswires)

OTHER FRENCH COMPANIES

Alstom (ALO FP) – Signed a contract to overhaul NJ transit trucks, valued over USD 25mln. (Newswires)

BROKER MOVES

Societe Generale (GLE FP) upgraded to Overweight from Neutral at JP Morgan

PAN EUROPE

ASML (ASML NA)/Chip Stocks - US President Trump's team is seeking to tighten chip controls on China with the US said to be pressing Japan and Netherlands to align on China restrictions and weighs tighter controls on Nvidia (NVDA) chip exports to China, according to Bloomberg. US is considering more restrictions on SMIC (981 HK) and CXMT. US officials reportedly met with Japanese and Dutch counterparts to restrict Tokyo Electron (8035 JT) and ASML engineers from maintaining semiconductor equipment in China. (Bloomberg)

Akzo Nobel (AKZA NA) – Co. proposes to separate powder coatings business from its Indian subsidiary. Will seek shareholder approval in the coming weeks. (Newswires)

Energy Names - Iberdrola (IBE SM) CEO says the EU must "urgently" take action to remove taxes and levies on electricity, adding they should be made level with the US where such charges amount to 10% of customer bills vs 40% in the EU. Elsewhere, the next UK Ofgem energy price cap is expected to increase by around 5%, new cap is implemented on April 1st. (FT/BBC)

Defence Stocks - Germany discussing EUR 200B in emergency defense spending, according to Bloomberg. Germany’s chancellor-in-waiting Merz has opened talks with the Social Democrats to quickly approve as much as EUR 200bln (USD 210bln) in special defense spending, according to sources. Sources add that officials from the CDU and SPD are discussing ways to get around Germany’s tight restrictions on government borrowing in order to free up resources to beef up the country’s dilapidated military. They are considering pushing a vote on the new package, which would be double the amount of one approved three years ago, through the lame duck parliament. "With less than two thirds of the seats, the mainstream parties don’t have the votes to ease the constitutional limits on government borrowing. But they could get around that by pushing through a vote before the new legislature sits for the first time on March 24." "One idea under discussion in Germany would be to approve a special fund for the new military spending and Ukraine aid, the people said. Other options would be to expand the existing EUR 100 billion fund or to adapt the so-called debt brake so it allows more spending on defense. Any of those options would require a super majority of two thirds of lawmakers and that will be far more difficult to secure once the next legislature sits.". "Merz has been promising to ramp up investment in the German military to counter Russian aggression but his plans have run into trouble after fringe parties secured a blocking minority in the next parliament." (Newswires) Separately, EU and UK to discuss Europe-wide defence fund amid fear of US pullback, via FT. Polish Finance Minister Domanski said it could be a fund or a bank, they are considering the concept of the Rearmament Bank. Discussions had been taking place with UK for months. (FT)

Galp (GALP PL) - Mopane-3x well confirming new exploration discovery. Preliminary data confirm light oil and gas-condensate significant columns across AVO-10. (Newswires)

Metal Stocks - EU expands tariff list in US President Trump’s looming metals trade dispute. (Newswires) Separately, Russia President Putin says Russia and US could consider working together on aluminium production. They could think of a joint project with the US in Russia. (Newswires)

Telefonica (TEF SM) - Co. has agreed to sell its unit in Argentina for around EUR 1bln, according to El Pais. (El Pais)

US Tariffs - US President Trump says we are on time with tariffs, tariffs are going forward, they are on schedule and moving along rapidly; all we want is reciprocity US will be liquid and rich again. (Newswires)

BROKER MOVES

Moncler (MONC IM) downgraded to Market Perform from Outperform at Bernstein

Phillips (PHIA NA) upgraded to Outperform from Neutral at BNP Paribas

SMI

OTHER SWISS COMPANIES

SIG (SIGN SW) – FY24 (EUR): Adj. Net Income 308.1mln (prev. 312.2mln Y/Y), Adj. EBITDA 819.5mln (prev. 803mln Y/Y), Revenue 3.33bln (exp. 3.32bln, prev. 3.23bln Y/Y). Guides initial FY25 Revenue +3-5% Y/Y. (Newswires)

Swiss Prime Site (SPSN SW) – Co. successfully raised CHF 300mln in gross proceeds through ABB. (Newswires)

PSP Swiss Property (PSPN SW) – FY (CHF): LFL Rental Income 10mln, +3.6% Y/Y, Net Profit 374.9mln (prev. 207.6mln Y/Y). (Newswires)

BROKER MOVES

SCANDINAVIA

Bavarian Nordic (BAVAB DC) – Co. partners with Biological E Limited to expand global access to Chikungunya vaccine. (Newswires)

Telia (TELIA SS) – Co. enters into an agreement to divest TV & Media to Schibsted Media. (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.50% at 5,983, NDX -1.21% at 21,352, DJI +0.08% at 43,461, RUT -0.78% at 2,178

SECTORS: Technology -1.43%, Consumer Discretionary -0.87%, Communication Services -0.63%, Utilities -0.51%, Industrials -0.44%, Materials -0.18%, Consumer Staples +0.10%, Energy +0.11%, Real Estate +0.35%, Financials +0.45%, Health +0.75%.

Cleveland-Cliffs (CLF) - Q4 adj. EPS -0.68 (exp. -0.61), Q4 revenue USD 4.33bln (exp. 4.37bln). Exec said that imported cars outsold domestically produced ones for the first time, impacting Cliffs due to reduced US automotive production and low steel prices from excess imports. However, by late February, it sees a strong FY25 rebound, citing early signs in automotive demand, index pricing, and orders.

Hims & Hers (HIMS) - Hims & Hers shares fell 18% despite beating Q4 estimates, as gross margin missed expectations. Q4 EPS 0.11 (exp. 0.22), Q4 revenue USD 481.1mln (exp. 470.5mln). Exec noted that it now has over 2.2mln subscribers (exp. 2.18mln). Sees Q1 revenue between USD 520-540mln (exp. 494.6mln). Sees FY25 revenue between USD 2.3-2.4bln (exp. 2.09bln), and sees FY adj. EBITDA between USD 270-320mln (vs 176.9mln Y/Y). The FDA’s resolution of semaglutide shortages threatens its compounded weight loss drug sales; it expects at least USD 725mln in 2025 weight loss revenue, shifting to oral medications and liraglutide.

Trip.com (TCOM) - Q4 revenue RMB 12.77bln (exp. 12.32bln), Q4 EPS RMB 4.35 (exp. 4.20), Q4 EBITDA RMB 2.98bln (exp. 2.64bln), Q4 net income RMB 2.19bln (vs 1.34bln Y/Y). Exec said the travel market has shown resilience in 2024, driven by travelers' growing desire for exploration and cultural experiences. Remains committed to investing in AI, and promoting inbound travel. Anticipates another year of growth.

Nvidia (NVDA) - Chinese firms, including Alibaba (BABA), ByteDance, and Tencent (TCEHY), are increasing orders for Nvidia’s H20 AI chip due to DeepSeek’s rising demand, Reuters reports. Smaller firms in healthcare and education are also adopting H20-equipped servers. Nvidia shipped around 1mln H20 units in 2024, generating around USD 12bln, Reuters notes. The news comes as the Trump administration is considering new export controls on the chip.

25 Feb 2025 - 06:49- MetalsResearch Sheet- Source: Newsquawk