Newsquawk Daily European Equity Opening News - 25th July 2025

ASIA

APAC stocks were lower after the mixed performance in the US and with light catalysts for markets outside of earnings. ASX 200 mildly retreated with the downside led by underperformance in key industries including mining, materials, resources and financials, while Whitehaven Coal failed to benefit despite posting higher quarterly output and sales. Nikkei 225 gave back some of this week's gains amid profit taking despite a weaker currency and mostly softer Tokyo CPI. Hang Seng and Shanghai Comp conformed to the downbeat mood but with the downside in the mainland cushioned after a firm PBoC liquidity effort which resulted in a net daily injection of around CNY 602bln via 7-day reverse repos, while participants await next week's US-China trade discussions in Sweden.

CK Hutchison (CKHUY), BlackRock (BLK) - CK Hutchison’s planned USD 22.8bln ports sale to a BlackRock and MSC-led group is unlikely to be finalised by Sunday’s deadline, with sources expecting an extension amid US-China tensions, Reuters reports. Talks have become politicised, and COSCO is reportedly seeking a role, raising risks of US opposition if China is involved.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.13% at 5,351, Dax 40 +0.27% at 24,307, FTSE 100 +0.85% at 9,138, CAC 40 -0.41% at 7,818, FTSE MIB -0.24% at 40,600, IBEX 35 +1.42% at 14,268, PSI +0.25% at 7,737, SMI -0.24% at 12,048, AEX +0.57% at 913

SECTORS: Telecoms 2.61%, Healthcare 1.05%, Financials 0.86%, Industrials 0.06%, Materials -0.31%, Utilities -0.35%, Consumer Stpl -0.49%, Consumer Disc -0.58%, IT -0.92%, Energy -1.00%

FTSE 100

UK GfK - UK GfK Consumer Confidence (Jul) -19.0 vs. Exp. -20.0 (Prev. -18.0); "With speculation growing over possible tax rises in the Autumn budget, and price pressure contributing not just to higher inflation already but also to the likelihood of worse inflation to come, the news is worrying", says a GfK Director.

GSK's (GSK LN) - Blenrep approved in the EU for multiple myeloma. (Newswires)

Nuclear - UK and Australia are to sign a GBP 20bln nuclear-powered submarine deal, according to The Times. (The Times)

OTHER UK COMPANIES

BROKER MOVES

Wizz (WIZZ LN) upgraded to Overweight from Equal Weight at Barclays

DAX

Volkswagen (VOW3 GY) - Q2 (EUR): Revenue 80.8bln (exp. 82.19bln), -3% Y/Y, Op. Profit 3.8bln (exp. 3.89bln), -29% Y/Y. Outlook: FY Revenue level with prior year (prev. saw +5%), Op. Margin 4-5% (prev. guided 5.5-6.5%). Q2 Op. Margin 4.7% (exp. 4.63%) FY Auto Net Cash Flow 1-3bln (exp. 2.28bln) Co. notes of ongoing product offensive and consistently good demand; expects the positive trend to continue in H2'25. (Newswires)

OTHER GERMAN COMPANIES

Deutsche Boerse (DB1 GY) - Q2 (EUR): Revenue 1.50bln (exp. 1.52bln). (Newswires)

Hella (HLE GY) - H1 (EUR): Sales 4bln, -0.4% Y/Y. Confirms FY25 outlook. (Newswires)

Puma (PUM GY) - Puma cut its FY outlook, and now expects a loss in adj. EBIT terms, citing weak demand and tariff concerns. Preliminary Q2 results disappointed, with its new CEO facing pressure to revive momentum in sports and athleisure categories. Q2 2025 (EUR): Sales 1.942bln (exp. 2.085bln), Net income -247mln; cuts 2025 outlook and forecasts low double-digit sales decline for 2025 and expects EBIT loss for FY25. US tariffs to impact Puma 2025 gross profit by EUR 80mln. Has revised its CapEx plans for the year and now expects to invest around EUR 250mln. (Newswires) Shares -19.4% in pre-market trade

Traton (8TRA GY) - H1 Unit Sales 154.1k, -4% Y/Y. Incoming Orders 139.6k, +11% Y/Y. Trimmed its FY guidance expecting unit sales and rev. to fall 10% (prev. saw -5% to +5%). (Newswires)

BROKER MOVES

Deutsche Bank (DBK GY) downgraded to Sell from Neutral at Citi Shares -2.6% in pre-market trade

CAC

Bureau Veritas (BVI FP) - H1 (EUR): Revenue 3.19bln, FCF 168mln, -11.5% Y/Y. Confirms 2025 outlook. Co. is to buy Dornier Hinneburg in Germany; and Ecoplus in South Korea. (Newswires)

Carrefour (CA FP) - H1 2025 (EUR): Net Sales 41.75bln (prev. 40.61bln Y/Y), Op. income 681mln (prev. 743mln Y/Y), Adj. net income 210mln; FY25 financial targets confirmed Announces sale of Carrefour Italy to Newprinces Group and estimated net impact on groups treasury is EUR 240mln; transaction could be finalised by end '25. CFO says sale of Italy business will help improve Cos. op. margin and growth trajectory.

LVMH (MC FP) - Q2 2025 (EUR): Revenue 19.50bln, -4% Y/Y (exp. -3% Y/Y). Q2 Fashion & leather organic sales -9% (exp. -7.82%). Wines & spirits organic sales -4% (exp. -6.94%). H1: Profit from recurring ops. 9.01bln. Net profit 5.70bln (exp. 5.67bln). Commentary: CEO and Chairman says head into H2 with great vigilance. CFO Comments: 15% tariff rate for US imports would be 'good outcome' and boost client mood. With exception of alcohol, its brands can still draw on pricing power amid other means to offset potential 15% tariff impact. Saw some incremental improvement in China last quarter. Current environment presents opportunity to optimise cost structure. Have no reason to think Loro Piana alleged worker abuse in Italy will affect sales. CEO says restructuring of alcohol division will take time and will not see significant impact before H2 2026. Price hikes are needed to come with improvement in product. CEO says has spent recent week meeting with Germany's Chancellor Merz and Italy's PM Meloni pressing them to agree to an EU trade with the US, WSJ reports. LVMH is also set to expand its production footprint in the U.S. Arnault said he now plans to open a second factory in Texas, likely north of Dallas, by early 2027. Arnault ruled out a sale of LVMH’s wines-and-spirits business. But he acknowledged the unit has been somewhat “scattered” in recent years, and said the group plans to simplify its structure, concentrating on its flagship brands. “The priority is to move upmarket and streamline,” he said. (Newswires)

Michelin (ML FP) - H1 2025 (EUR): Sales 13.03bln (exp. 13.08bln), Op. income 1.45bln (exp. 1.5bln), Net income 840mln (exp. 1.01bln). 2025 outlook confirmed in the absence of further deterioration of economic environment in H2. Commentary: CFO says impact of tariffs on H1 results around EUR 65mln. CFO says estimated impact of tariffs in 2025 around EUR 200mln. (Newswires)

STMicroelectronics (STMPA FP), NXP Semiconductors (NXPI) - STMicro will acquire part of NXP’s sensor business for up to USD 950mln in cash, including a USD 900mln upfront payment and USD 50mln tied to milestones. The unit generated USD 300mln in 2024 revenue. The deal, aimed at expanding ST’s MEMS portfolio, is expected to close in H1 2026. (Newswires)

Sanofi (SAN FP) - Sanofi’s Sarclisa approved in the EU for the treatment of transplant-eligible newly diagnosed multiple myeloma. (Newswires)

OTHER FRENCH COMPANIES

Remy Cointreau (RCO FP) - Q1 (EUR): Revenue 220.8mln (exp. 214mln), Organic Revenue +5.7% (exp. +2%), Cognac Sales 131.3mln, +1.3% Y/Y. Following reduced tariff impact estimations, has opted to reallocate part of its investment, particularly in China. Outlook: Cuts max expected total net impact of potential China and US tariffs to EUR 45mln (prev. guided 65mln). Raises FY25 organic COP decline mid to high single digits (prev. saw mid to high teens). Growth was primarily driven by steep rise in sales in the Americas, notably in the US. RC Ventures acquires a minority stake in JNPR. (Newswires)

Lagardere (MMB FP) - H1 (EUR): Revenue 4.35bln, +3.8% Y/Y, Recurring EBIT 225mln, +5.8% Y/Y; group to continue to gradually deleverage. (Newswires)

Sopra Steria (SOP FP) - H1 (EUR): Revenue 2.84bln (prev. 2.94bln Y/Y). Affirms guidance. Notes that the pace of negative growth slowed markedly in Q2. (Newswires)

Valeo (VLO FP) - H1 2025 (EUR): Sales 19.66bln (exp. 10.65bln). Operating margin 4.5% (vs exp. 4.2%), EBITDA 1.47bln (exp. 1.37bln), FCF 252mln (exp. 77mln), Order intake 11.8bln. Outlook: 2025 margin and FCF confirmed. Sales view updated to EUR 20.5bln to account for adverse currency effect of EUR 750mln.

Vallourec (VK FP) - Q2 (EUR): Revenue 863mln (exp. 902mln), EBITDA 187mln (exp. 188mln). In US imports exp. to decline from their Q2 levels due to tariffs supporting local players. (Newswires)

BROKER MOVES

Dassault Systemes (DSY FP) upgraded to Neutral from Underperform at BNP Paribas

Schneider Electric (SU FP) downgraded to Hold from Buy at Kepler Cheuvreux

PAN EUROPE

Almirall (ALM SM) - H1 (EUR): Sales 560.5mln, Net Income 26.5mln. Reiterated 2025 guidance. (Newswires)

Eni (ENI IM) - Q2 (EUR): Adj. Net Income 1.13bln (exp. 1bln), Adj. EBIT 2.68bln (exp. 2.67bln). Confirms cash returns to shareholders for FY25. Raises to around EUR 3bln from EUR 2bln the level of cash initiatives for FY25. Sees FY projection of GGP's proforma adj. EBIT to around EUR 1bln. (Newswires)

Signify (LIGHT NA) - Q2 (EUR): Adj. EBITA 110mln (prev. 118mln Y/Y), Revenue 1.42bln (ep. 1.41bln). Affirms guidance. (Newswires)

Proximus (PROX BB) - Q2 (EUR): Total Revenue 1.54bln (exp. 1.65bln), Organic FCF 31mln (exp. 3mln). Outlook: Global EBITDA exp. to be down by 5-10% Y/Y. FY 25 EBITDA guidance revised "up to +1%", domestic EBITDA to grow up to 2%. (Newswires)

UniCredit (UCG IM) - Announced EUR 3.57bln share buyback measures. (Newswires)

BROKER MOVES

Bankinter (BKT SM) downgraded to Underperform from Neutral at Oddo

SMI

OTHER SWISS COMPANIES

SGS (SGSN SW) - H1 (CHF): Adj. EBIT 508.5mln (exp. 503.2mln), Revenue 3.42bln (exp. 3.34bln Y/Y). Affirms guidance. (Newswires)

VAT (VACN SW) - H1 (CHF): Net Income 73.4mln (prev. 71.3mln Y/Y), Revenue 274.1mln (prev. 276.1mln Y/Y). (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.07% at 6,363, NDX +0.25% at 23,220, DJI -0.70% at 44,694, RUT -1.36% at 2,252.

SECTORS: Consumer Discretionary -1.23%, Materials -0.75%, Health -0.42%, Consumer Staples -0.32%, Industrials -0.16%, Utilities -0.14%, Real Estate -0.11%, Financials -0.04%, Communication Services +0.51%, Technology +0.67%, Energy +0.71%

Intel (INTC) - Intel shares fell over 4% in extended trading after CEO announced factory project cancellations, and criticised predecessor Pat Gelsinger’s spending as excessive, raising investor concerns about a shift toward cost-cutting over technological leadership, despite a PC market rebound driven by pre-tariff inventory build-ups. It reported Q2 EPS of -0.10 (exp. 0.00), Q2 revenue of USD 12.86bln (exp. 11.80bln); Q2 adj. gross margin 29.7% (exp. 36.50%). Exec said it intends to cut headcount by 15%, cancel planned projects in Germany and Poland, and consolidate Costa Rica operations into larger sites in Vietnam and Malaysia. It will slow Ohio construction to match market demand and expects lower CapEx in 2026. Sees Q3 revenue between 12.6-13.6bln (exp. 12.64bln), Q3 adj. EPS of 0.00 (exp. 0.04), and Q3 adj. gross margin of 36% (exp. 36.8%).

Pinnacle Financial (PNFP), Synovus Financial (SNV) - Synovus and Pinnacle will merge in an all-stock deal valued at USD 8.6bln, with Synovus shareholders receiving 0.5237 shares per Pinnacle share. Synovus will hold 48.5% of the combined firm. Deal is expected to close Q1 2026, with 21% EPS accretion to Pinnacle by 2027.

US Cellular (USM), T-Mobile (TMUS) - US Cellular expects to declare a special cash dividend of 22.50–23.75 per share (USD 1.95–2.075bln total) after closing the sale of its wireless operations and select spectrum to T-Mobile.

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