Newsquawk Daily European Equity Opening News - 2nd April 2025

ASIA

APAC stocks were mostly positive but with the major indices stuck within narrow parameters as participants awaited US President Trump's 'Liberation Day' tariff announcement scheduled later today. ASX 200 eked modest gains as strength in the real estate, tech and consumer discretionary sectors just about atoned for the losses in mining, resources and materials, while Building Approvals data from Australia printed better-than-feared. Nikkei 225 traded indecisively and wiped out most of its early gains as Japanese exporters braced for incoming US tariffs. Hang Seng and Shanghai Comp were mixed amid tariff uncertainty with China among the countries anticipated to announce an immediate retaliation to Trump's incoming tariffs, while China also awaits details regarding the US review of the 'Phase One' deal.

EUROPEAN CLOSES

CLOSES: DAX: +1.67% at 22,534, FTSE 100: +0.61% at 8,635, CAC 40: +1.10% at 7,876, Euro Stoxx 50: +1.30% at 5,316, AEX: +0.72% at 905, IBEX 35: +1.40% at 13,320, FTSE MIB: +1.33% at 38,557, SMI: +0.73% at 12,690, PSI: +1.24% at 6,951

SECTORS: IT 2.11%, Industrials 1.53%, Financials 1.29%, Materials 1.16%, Consumer Disc 0.98%, Healthcare 0.73%, Utilities 0.73%, Consumer Stpl 0.67%, Telecoms 0.63%, Energy -0.23%

FTSE 100

National Grid (NG/ LN) - Co. notes of a delay in Massachusetts offshore wind power agreement; says counterparties have not yet completed negotiations and targets completion before June 30. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Coca Cola HBC (CCH LN) initiated with Buy at Berenberg

Diageo (DGE LN) initiated with Buy at Berenberg

DAX

Covestro (1COV GY) - EU regulators may decide on ADNOC's Covestro deal by May 12, via Reuters. (Reuters)

Continental (CON GY) - Co. says current tariff situation and new product launches create high uncertainty and impact strategic planning in automotive division Light vehicle production in China expected to increase by mid-to-high single digit percentage in Q1, better than anticipated at the start of the year. Expects light vehicle production in North America - around 7% in Q1, partly due to economic uncertainty. Expects better FCF performance in Q1 25 vs Q1 24 despite seasonally weak start to the year. Expects Contitech Q1 sales to be down significantly Y/Y. Automotive Q1 adj. EBIT margin expected around break even, tires Q1 margin likely at lower end of full year range. (Newswires)

German Economy - Germany's banks association says Germany's economy is expected to grow by 0.2% this year and 1.4% next year. (Newswires)

Mercedes-Benz (MBG GY) - Denies Bloomberg report that carmaker is mulling withdrawing cheaper cars from US market as tariff contingency; "this is without any merit, Co. continues to seek sales growth for its highly desirable vehicles". (Newswires / Bloomberg) In reference to: Mercedes (MBG GY) considers pulling US entry-level cars over Trump tariffs, according to Bloomberg.

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Co. awarded 750MW in orders. (Newswires)

BROKER MOVES

CAC

Capgemini (CAP FP) - WNS Holdings (WNS) is exploring a sale after a recent takeover approach, with the likes of Capgemini potentially interested. (Reuters)

TotalEnergies (TTE FP) - Co. exports gas from Vaca Muerta shale play in Argentina to Matrix Energia in Brazil through Bolivia for the first time, according to Reuters citing sources. TotalEnergies exported about 500,000 cubic meters on Tuesday via the Bolivian pipeline. (Reuters)

OTHER FRENCH COMPANIES

Alstom (ALO FP) - Won EUR 2.4mln public funding for intelligent trains. (Newswires)

BROKER MOVES

Axa (CS FP) upgraded to Buy from Neutral at Goldman Sachs

BNP Paribas (BNP FP) downgraded to Reduce from Hold at Kepler

Engie (ENGI FP) upgraded to Buy from Hold at Jefferies

Forvia (FRVIA FP) downgraded to Sell from Buy at Citi

Remy Cointreau (RCO FP) initiated with Hold at Berenberg

Pernod Ricard (RI FP) initiated with Buy at Berenberg

PAN EUROPE

Trade - US Treasury Secretary Bessent told lawmakers that Wednesday's tariffs are a 'cap', according to a CNBC reporter on X cited by Reuters. USTR reportedly prepares a new tariff option for US President Trump which is "an across-the-board tariff on a subset of nations that likely would not be as high as the 20% universal tariff option", according to WSJ. White House Press Secretary Leavitt says US President Trump is with trade and tariff team now; car tariffs go into effect on April 3rd; Trump has made up his mind on tariffs. Trump and his tariff team are perfecting decisions now. Car tariffs go into effect April 3rd. Reciprocal tariffs will take effect immediately after the announcement. White House said US President Trump to deliver remarks in Rose Garden at 21:00BST/16:00EDT on Wednesday. (Reuters / WSJ / Newswires)

Banco Santander SA (SAN SM) - Santander has received a Canadian banking license, expanding its operations in the Americas, authorising Santander Consumer Bank to begin operations, marking a significant milestone in the bank's regional growth strategy.

Generali (G IM) - Italy's Insurance watchdog Ivass is looking closely at some aspects of Generali's Asset Management deal over Natixis (KN FP), according to Reuters citing sources. (Reuters)

Grifols (GRF SM) - Brookfield is said to have resumed talks with Grifols; sources suggest it could launch a new takeover bid for EUR 7bln after the Board rejected a previous offer which valued the Co. at EUR 6.7bln, via El Confidencial. (El Confidencial)

Saipem (SPM IM) - Awarded a USD 720mln contract in the Middle East and Guyana. (Newswires)

Stellantis (STLAM / STLAP FP) - Stellantis reported a 12% Y/Y decline in total US sales for Q1. However, retail sales remained stable. Chrysler saw a 1% increase in sales, while FIAT sales surged by 239%, driven by the electric 500e. Ram's retail sales rose by 16%, and Jeep retail sales increased by 2%. (Newswires)

UniCredit (UCG IM) - Italy's watchdog Consob approves offer document for takeover bid in Banco BPM (BAMI IM); adhesion period running from April 28 - June 23, 2025. (Newswires)

BROKER MOVES

AB InBev (ABI BB) initiated with Buy at Berenberg

EDP Renovaveis (EDPR PL) downgraded to Hold from Buy at Jefferies

Heineken (HEIA NA) initiated with Buy at Berenberg

SMI

ABB (ABBN SW) - Completes sale of key urban development plot in Zurich; co. to receive approx. CHF 90mln. (Newswires)

UBS (UBSG SW) - Co. informs unions in Italy it plans to cut 180 jobs out of 602 in the country; cuts to take place in wealth management and group functions, as well as security custody business, according to Reuters citing documents. The job cuts do not affect investment banking business. (Newswires)

OTHER SWISS COMPANIES

Kuehne Und Nagel (KNIN SW) - Signed MoU with Changan Automobile. (Newswires)

Schindler (SCHP SW) - Co. awarded Surrey Langley Skytrain contract in Canada. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

CLOSES: SPX +0.38% at 5,633, NDX +0.82% at 19,436, DJI -0.03% at 41,990, RUT +0.02% at 2,012

SECTORS: Health -1.75%, Financials -0.16%, Real Estate +0.09%, Consumer Staples +0.28%, Utilities +0.30%, Materials +0.32%, Energy +0.58%, Industrials +0.60%, Technology +0.95%, Communication Services +1.02%, Consumer Discretionary +1.14%.

Apple (AAPL) - The NLRB paused two cases against Apple following the nomination of Crystal Carey, a lawyer for Apple, as the NLRB's general counsel, FT reports. The cases, involving claims from former employees about Apple interfering with labour organising efforts, are now under review. Critics, including the complainants, fear that the cases may not receive fair treatment under the current administration. (FT)

ByteDance - President Trump will review a final TikTok proposal on Wednesday, with potential investors including Blackstone (BX) and Oracle (ORCL), CBS reports citing sources. Key officials will meet in the Oval Office, but it's unclear if Trump will approve the deal. ByteDance faces an April 5th deadline to sell TikTok’s US stake or risk a ban. (CBS)

Meta Platforms (META) - A US Senate subcommittee has opened a review into Meta's efforts to enter the Chinese market, requesting documents from the company by April 21st, Reuters reports. Lawmakers allege Meta developed censorship tools for Beijing, claims which the company denies. The investigation follows reports of a 2014 initiative, "Project Aldrin," to expand in China. (Reuters)

Tesla (TSLA) - NYC Comptroller Brad Lander is advocating for a shareholder lawsuit against Tesla, accusing the company of misrepresenting CEO Elon Musk’s involvement in the business. Lander claims Tesla misled investors about Musk’s time commitment, given his role heading the Department of Government Efficiency under President Trump. (Newswires)

Visa (V), Mastercard (MA), American Express (AXP), Apple (AAPL) - Visa has offered Apple approximately USD 100m to take over its credit card from Mastercard, as Goldman Sachs (GS) exits consumer lending, WSJ reports. It has triggered competition among issuers and payment networks, with Visa and American Express seeking to replace Mastercard as Apple’s network provider. (WSJ)

02 Apr 2025 - 06:52- Research Sheet- Source: Newsquawk