Newsquawk Daily European Equity Opening News - 2nd June 2025

ASIA

APAC stocks were mostly in the red, albeit to varying degrees, at the start of a new trading month and ahead of this week's risk events, while trade uncertainty lingered after President Trump announced to double steel and aluminium tariffs to 50% from this Wednesday. ASX 200 was rangebound with the index constrained by weakness in miners and the commodity-related sectors amid trade uncertainty following US President Trump's latest tariff offensive but with the downside cushioned given the actual boost to underlying commodity prices. Nikkei 225 slumped at the open with headwinds from recent currency strength and after US and Japanese officials met on Friday for trade talks, while Economic Minister Akazawa said the latest round of discussions have them on track towards a deal as early as this month but stated that nothing is agreed until everything is agreed and there was no change in the US stance on tariffs, including those on auto parts, which was regrettable. Hang Seng underperformed amid the closure in the mainland and Stock Connect trade, while participants also reacted to mixed PMI data and recent criticisms between the US and China including from US President Trump who stated that China has violated the deal with the US.

Chinese data - Chinese NBS Manufacturing PMI (May) 49.5 vs. Exp. 49.5 (Prev. 49.0); NBS Non-Mfg PMI (May) 50.3 (Prev. 50.4)

EUROPEAN CLOSES

CLOSES: DAX: +0.31 % at 24,007, FTSE 100: +0.64 % at 8,772, CAC 40: -0.36 % at 7,752, Euro Stoxx 50: -0.11 % at 5,365, AEX: -0.14 % at 923, IBEX 35: +0.25 % at 14,152, FTSE MIB: +0.26 % at 40,087, SMI: +0.27 % at 12,220, PSI: +0.17 % at 7,388.

SECTORS: Healthcare 0.85%, Utilities 0.75%, Consumer Stpl 0.60%, Telecoms 0.44%, Energy 0.30%, Financials 0.21%, Consumer Disc -0.20%, Industrials -0.22%, Materials -0.36%, IT -0.68%

FTSE 100

AstraZeneca (AZN LN), Daiichi (DSNKY) - AstraZeneca and Daiichi report positive DESTINY-Gastric04 phase 3 results as ENHERTU significantly improves overall survival by 30% and progression-free survival by 26% versus ramucirumab plus paclitaxel in HER2-positive gastric and gastroesophageal junction adenocarcinoma. Elsewhere, AstraZeneca’s SERENA-6 Phase III trial showed camizestrant plus a CDK4/6 inhibitor reduced progression or death risk by 56%, improving median progression-free survival to 16 months versus 9.2 months with standard aromatase inhibitor plus CDK4/6 inhibitor in ESR1-mutated advanced breast cancer. Elsewhere, AstraZeneca’s MATTERHORN Phase III trial showed IMFINZI with FLOT chemotherapy significantly improved event-free survival by 29% versus chemotherapy alone in resectable gastric and gastroesophageal junction cancers, with overall survival trends favouring the IMFINZI regimen. (Newswires)

BP (BP/ LN) - Exxon (XOM) and Azerbaijan's Socar to sign MoU on Ganja-Yevlakh-Aghjabadi oil and has field soon, via Reuters citing sources. Elsewhere, the FT reports that bidders for BP's Castrol unit is weighing options below USD 8bln valuation. (Reuters)

Drax (DRX LN) - Campaigners are arguing that the Co. should have to disclose the full details of tree consumption at its wood-fired facilities, ahead of a government decision on renewable energy subsidies for the Co. (Guardian)

Flight Names - The reform of UK airspace will focus on Heathrow first and outline a path to a potential 3rd runway. (Standard)

HSBC (HSBA LN) - HSBC is exiting its US business banking unit to simplify operations and focus on Asia and the Middle East, Reuters reports. About 4,500 clients will be affected, with some retained in mid-market and global network banking. The bank has laid off 40 US business banking employees and continues to reduce its global footprint. (Newswires)

NatWest (NWG LN) - UK Government said it has sold its last remaining stock in the Co. (Newswires)

Rolls Royce (RR/ LN) / Boeing (BA) / GE Aerospace (GE) - Emirates Airline President said it has seen no shift in demand patterns as a result of tariffs, so far. Expects GE Aerospace to absorb a lot of tariffs in their own margins. Says there are still opportunities for Rolls Royce in the Gulf region if it delivers to the required performance level. Says it is seeing more positive tone from Boeing on 777x than in recent years. (Newswires)

UK Defence - UK is to build up to 12 new attack submarines, via the BBC. (BBC)

OTHER UK COMPANIES

BROKER MOVES

Abrdn (ABDN LN) upgraded to Buy from Neutral at Goldman Sachs

DAX

BASF (BAS GY) - BASF has launched the sale of its coatings business, with a potential valuation of about EUR 6bln, Bloomberg reports. The process is attracting interest from major buyout firms, including Carlyle Group (CG) considering a joint bid with Sherwin-Williams (SHW), as well as early interest from CVC Capital Partners and Lone Star Funds.

Deutsche Bank (DBK GY) - Co. pledges fresh cost savings measures after its retail unit missed targets, according to the FT. (FT)

OTHER GERMAN COMPANIES

KKR & Co. (KKR) - KKR raised its conditional offer for German IT services firm Datagroup to EUR 58.00/shr (from an initial EUR 54.00). The higher price applies if KKR secures at least 90% of shares; at 80%-90%, the offer is EUR 56.50/shr. Datagroup plans to delist after the deal, expected to close in Q3 2025.

BROKER MOVES

Hensoldt (HAG GY) upgraded to Overweight from Neutral at JPMorgan

CAC

Air France (AF FP) - CEO says is seeing traffic hold in Premium and a slight pullback in Economy in trans-Atlantic. (Newswires)

Airbus (AIR FP) - CEO of Saudi budget airline Flyadeal says Airbus delays are becoming inexcusable, and do not expect to get any narrow-body jets this year; suggests it could spread to wide-body A330neos. Airbus says it is not aware of any A330neo delays. Elsewhere, IndiGo doubled its Airbus A350 widebody order by 30 jets. (Newswires)

Eutelsat (ETL FP) - Co. is in talks to double France's stake in EUR 1.5bln raise, according to Bloomberg. (Bloomberg)

LVMH (MC FP) - Christian Dior appoints Jonathan Anderson as womenswear designer, overseeing womenswear, menswear, and haute couture collections, replacing Maria Grazia Chiuri after nine years, with his first collection set for Dior Men Summer 2026.

Sanofi (SAN FP) - Co. to acquire Blueprint Medicines (BPMC) at USD 129/shr for equity value of USD 9.1bln; BPMC shares last closed at USD 101.35/shr. Expects to complete acquisition in Q3'25. Sanofi says the acquisition will immediately be accretive to gross margin. (Newswires)

OTHER FRENCH COMPANIES

Ipsen (IPN FP) - Initiation of the share buyback programme. Co. to buy back up to 600k shares. (Newswires)

BROKER MOVES

JCDecaux (DEC FP) initiated with Buy at Berenberg

PAN EUROPE

Airlines - IATA Chair Walsh expects lower oil prices to counteract the uncertainty from US tariffs and ultimately result in lower ticket prices. (Times)

BPER Banca (BPE IM) - Received prelim authorisation from Bank of Italy for the bank's bid over Popolare Di Sondrio (BPSO IM). (Newswires)

Iberdrola (IBE SM) - Starts buyback programme of up to 0.066% share capital. (Newswires)

BROKER MOVES

SMI

Holcim (HOLN SW) - Co. plans Amrize spin-off for June 23. 100% spin-off to be completed by way of 1:1 distribution of Amrize shares to Holcim shareholders. (Newswires)

Roche (ROG SW) - Genentech’s Phase III INAVO120 study showed Itovebi plus palbociclib and fulvestrant reduced death risk by over 30% and improved median overall survival to 34 months versus 27 months, with progression-free survival of 17.2 months versus 7.3 months in PIK3CA-mutated advanced breast cancer.

Novartis (NOVN SW) - Pluvicto demonstrates statistically significant and clinically meaningful rPFS benefit in patients with PSMA-positive metastatic hormone-sensitive prostate cancer. Elsewhere, Novartis reported subgroup data from Phase III NATALEE showing Kisqali plus endocrine therapy reduced invasive disease recurrence risk by 33% in pre-menopausal early breast cancer patients at 1-year post-treatment, with better tolerability and fewer discontinuations versus post-menopausal patients. (Newswires)

Temenos (TEMN SW) - Completed sale of Multifonds for EV of around USD 400mln. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Swiss Life (SLHN SW) downgraded to Neutral from Outperform at BNP Paribas

Swiss Re (SREN SW) downgraded to Underperform from Neutral at BNP Paribas

SCANDINAVIA

Novo Nordisk (NOVOB DC) / Hims & Hers (HIMS) - Hims is to cut 4% of its workforce as it takes into account the US ban on manufacturing mass copies of Wegovy. (Newswires)

Zealand Pharma (ZEAL DC) - Submits Marketing Authorization Application to the European Medicines Agency for glepaglutide in short bowel syndrome. (Newswires)

BROKER MOVES

Danske Bank (DANSKE DC) upgraded to Overweight from Underweight at Barclays

DNB (DNB NO) downgraded to Equal Weight from Overweight at Barclays

SEB (SEBA SS) upgraded to Overweight from Underweight at Barclays

US

CLOSES: SPX -0.14% at 5,903, NDX -0.11% at 21,340, DJI +0.13% at 42,270, RUT -0.46% at 2,065.

SECTORS: Consumer Staples +1.16%, Utilities +1.08%, Communication Services +0.49%, Health +0.25%, Financials +0.20%, Real Estate +0.14%, Materials +0.12%, Industrials +0.11%, Technology -0.43%, Consumer Discretionary -0.58%.

China Autos - China’s automobile industry association warned against “vicious competition” following BYD’s (BYDDY) recent price cuts, which sparked fears of a discount war that could hurt electric carmakers’ profits, Bloomberg reports. Several automakers matched the cuts, triggering market concerns of intensified price pressure.

XPeng (XPEV) - XPeng delivered 33,525 smart EVs in May (+230% Y/Y), with 162,578 deliveries YTD, driven by the launch of the MONA M03 Max priced around 150,000 RMB and featuring the AI Tianji XOS 5.7.0 system.

Li Auto (LI) - Li Auto delivered 40,856 vehicles in May (+16.7% Y/Y), with cumulative deliveries reaching 1.3mln, driven by new model upgrades and strong demand for the Li MEGA Home and enhanced Li L series.

Nio (NIO) - Nio delivered 23,231 vehicles in May (+13.1% Y/Y), with 13,270 from the NIO brand, 6,281 from ONVO, and 3,680 from FIREFLY, bringing cumulative deliveries to 760,789 as of May 31, 2025.

Zeekr (ZK) - Zeekr delivered 46,538 vehicles in May 2025 (+15.2% Y/Y & +12.6% M/M) supported by nearly 1.95mln users. Zeekr brand deliveries reached 18,908, while Lynk & Co accounted for 27,630 vehicles.

Cenovus Energy (CVE) - Cenovus Energy reported no damage from Alberta wildfires at its Christina Lake oil sands, with all staff safe; production of about 238k BPD was shut in as a precaution and will resume when safe.

US-China - US auto execs sound the alarm on an impending shortage of rare-earth magnets from China that could force the closure of car factories in weeks, according to Reuters citing sources. A trade truce between the US and China is at risk of falling apart, as China's slow-walking on rare-earth exports fuels US recriminations that China is reneging on the deal, according to WSJ. US plans wider China tech sanctions with subsidiary crackdown, according to Bloomberg. (Bloomberg)

02 Jun 2025 - 07:00- Research Sheet- Source: Newsquawk