Newsquawk Daily European Equity Opening News - 2nd May 2025

ASIA

APAC stocks traded mostly higher as many regional participants returned from the Labor Day holiday and with some hopes for US-China trade talks. ASX 200 gained with the advances led by outperformance in the energy sector following the upside in oil prices and with a continuation of the status quo seen as the outcome in tomorrow's federal election with Australian PM Albanese highly favoured to win a second term. Nikkei 225 rallied at the open but is off intraday highs after stalling near the 37,000 level and following a surprise increase in Japan's unemployment rate. Hang Seng outperformed on return from the holiday closure and despite the continued absence of mainland participants, while there were reports that China is currently evaluating possible US trade talks and noted that the US has repeatedly expressed its willingness to negotiate with China on the tariff issue, although it urged the US to demonstrate sincerity for trade talks and correct its unilateral tariff measures.

Chinese Trade - China MOFCOM says tariff and trade war were unilaterally initiated by the US and the US should show its sincerity in talks, adds Chinese side has noted that the US has repeatedly expressed its willingness to negotiate with China on the tariff issue. China is said to be conducting an assessment on US trade negotiations and urged the US to demonstrate sincerity for trade talks, while it urged the US to correct mistakes regarding tariffs and noted it is currently evaluating possible US trade talks. (Newswires)

EUROPEAN CLOSES

CLOSES: FTSE 100: +0.02 % at 8,497 reminder: most of Europe was closed

FTSE 100

Standard Chartered (STAN LN) - Q1 (USD) Adj. Pretax Profit 2.28bln (exp. 2.15bln), Revenue 5.39bln (exp. 5.32bln), CET1 Ratio 13.8% (exp. 13.7%) (Newswires)

OTHER UK COMPANIES

SSP (SSPG LN) - FT reports that Irenic Capital Management has built a 2% stake in the Co. and is urging it to boost its profitability. (FT)

BROKER MOVES

Curry's (CURY LN) upgraded to Buy from Hold at Deutsche Bank

Watches of Switzerland (WOSG LN) downgraded to Sector Perform from Outperform at RBC

DAX

BASF (BAS GY) - Q1 (EUR): EPS 1.57 (exp. 1.38), Adj. EBIT 1.66bln (exp. 1.65bln), Revenue 17.4bln (exp. 17.6bln). Warns uncertainty from trade duties is high. Sees FY Adj. EBITDA 8-8.4bln (exp. 7.98bln). (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

CAC

Airbus (AIR FP) - Q1 2025 (EUR): EPS 1.01 (prev. 0.75 Y/Y), Revenue 13.5bln (exp. 12.37bln); maintains guidance Adj. EBIT 624mln (exp. 719mln). CEO says it is up to airlines importing aircraft to pay tariffs; Airbus will not pay tariffs on planes for US customers; calls for return to 1979 WTO agreement on duty-free trading in aircraft and parts. Co. says US assembly lines are exposed to 10% tariffs on large sub-assemblies from Europe Analysing reported Chinese decision to remove tariffs on imported US aircraft parts. Buffer stocks are in a good situation after recent decisions to reshape production ramp-up plan. Current situation can be broadly contained but situation is changing by the day. Not taking specific measures to deal with EUR/USD movements, existing hedge book provides stability. Engine shortage will get worse before it gets better, expects return to normal in the summer. Overstaffing related to deliveries fell from 10,000 posts in 2023 to 7-8,000 in 2024 and will fall again but not disappear in 2025. Nor directly or indirectly impacted by recent fire at fastener factory at SPS Technologies in Pennsylvania. Believes it will make its A350 production target for 2028 despite problems with fuselage parts production at Spirit Aerosystems (SPR) plant that Airbus is acquiring. (Newswires) Reported after-hours on Wednesday

LVMH (MC FP) - FT writes that Moët Hennessy is to cut 10% of its workforce amid the recent slowdown in the luxury sector. Execs say that 1.2k jobs will be cut, warning that sales will not bounce back soon. (FT)

OTHER FRENCH COMPANIES

BROKER MOVES

LVMH (MC FP) downgraded to Equal Weight from Overweight at Morgan Stanley

PAN EUROPE

EU Trade - EU negotiator says Europe ready to make US President Trump a EUR 50bln offer, FT reports. Brussels wants to increase purchases of US goods by EUR 50bln to address the “problem” in the trade relationship, the EU’s top negotiator has said, adding that the bloc is making “certain progress” towards striking a deal. Asked whether he would accept a 10% levy as a floor in trade talks, Sefcovic said the EU regarded that as a “very high level”, suggesting that the bloc would not settle for a deal that kept tariffs at that level. Sefcovic cautioned it would be “very difficult” to reach a deal that was “clearly good and acceptable for our member states and our European parliament”. “If what we are looking at as a problem in the deficit is EUR 50bln, I believe that we can really... solve this problem very quickly through LNG purchases, through some agricultural products like soybeans, or other areas,” Sefcovic said. (FT)

Trade - De minimis exception for products from China and Hong Kong imported to the US is now voided as scheduled. (Newswires)

ING (INGA NA) - Q1 (EUR): NII 3.62bln (exp. 3.71bln), Loan-Loss Provisions 313mln (exp. 350.9mln). Net Income 1.46bln (exp. 1.54bln, prev. 1.58bln Y/Y), Revenue 5.63bln (exp. 5.6bln, prev. 5.58bln Y/Y). Announces a EUR 2bln share buyback. Affirms guidance. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Co. to close Windsor assembly plant for a week starting Monday, via the Globe and Mail. (Globe and Mail)

Tech - Apple's (AAPL) shares fell 3.8% in extended trading, with its Q2 results showing continued China weakness, while investor concerns rose over vague tariff commentary. Amazon (AMZN) shares fell 3.2% in extended trading as investors reacted to cautious outlook and possible pricing impacts from trade policy tensions. See US section below for full details

BROKER MOVES

ASM International (ASM NA) upgraded to Buy from Hold at HSBC

SMI

Swiss Banks / UBS (UBSG SW) - Basel boss says he does not think Swiss Capital rules are putting the country's bank at a disadvantage vs peers.

OTHER SWISS COMPANIES

BROKER MOVES

Sandoz (SDZ SW) upgraded to Outperform from Sector Perform at RBC

SCANDINAVIA

Equinor (EQNR NO) - Sells Peregrino field for USD 3.5bln. (Newswires)

Danske Bank (DANSKE DC) - Q1 (DKK): Net Income 5.76bln (exp. 5.41bln), Pretax Profit 7.59bln (exp. 7.21bln). Outlook: Sees FY Net Income 21-23bln (exp. 21.32bln), Sees Impairments around 1bln (exp. 1bln), Sees Total Costs up to 26bln. (Newswires)

BROKER MOVES

US

Apple (AAPL) - Apple's shares fell 3.8% in extended trading, with its Q2 results showing continued China weakness, while investor concerns rose over vague tariff commentary; CEO flagged USD 900mln in potential June-quarter tariff costs but gave no visibility beyond, and the lack of forward guidance and economic uncertainty contributed to the post-earnings stock decline. It reported Q2 EPS of 1.65 (exp. 1.62), Q2 revenue USD 95.36bln (exp. 94.53bln). Authorises a USD 100bln share buyback, and declared dividend of USD 0.26/shr (prev. 0.25/shr). By product, it reported Q2 iPhone net sales of USD 46.84bln (exp. 46.17bln), Q2 Services net sales of USD 26.65bln (exp. 26.69bln), Q2 Wearables net sales of USD 7.52bln (exp. 7.85bln), Q2 iPad net sales of USD 6.4bln (exp. 6.07bln), Mac net sales of USD 7.95bln (exp. 7.92bln). By region, Americas revenue was USD 40.32bln (exp. 39.65bln), Greater China revenue was USD 16bln (exp. 16.97bln), and Europe revenue was USD 24.45bln (exp. 25.03bln). Apple expects to source 19bln chips from 12 US states, including tens of millions from Arizona. It said June-quarter tariffs may add USD 900mln to costs, though impact remains uncertain. Notes that most of its US iPhones are to originate from India; most iPads, Macs, Watches, and AirPods from Vietnam. CFO guides low-mid single-digit Y/Y June revenue growth. (Newswires)

Amazon (AMZN) - Amazon's Q1 earnings beat expectations with strong retail and ad performance, though AWS growth slowed; Q2 guidance was light, citing tariff uncertainty and potential demand risks. Shares fell 3.2% in extended trading as investors reacted to cautious outlook and possible pricing impacts from trade policy tensions. It reported Q1 EPS of 1.59 (exp. 1.38), Q1 revenue USD 155.7bln (exp. 154.88bln); Q1 AWS sales +17% Y/Y at USD 29.3bln (exp. 29.41bln); AWS operating income USD 11.5bln (prev. 9.4bln); Q1 AWS backlog +20% Y/Y to USD 289bln. Exec said that demand remains solid with some early stockpiling ahead of potential tariffs; retail prices and seller pricing largely stable for now. Its "Everyday Essentials" category grew over two-times quicker than the rest of the business, making up one-third of US units sold. Sees Q2 revenue between USD 159–164bln (exp. 161.62bln), operating income between USD 13–17.5bln (exp. 17.82bln). (Newswires)

Airbnb (ABNB) - Q1 EPS 0.24 (exp. 0.23), Q1 revenue USD 2.3bln (exp. 2.26bln); Q1 gross bookings value USD 24.5bln (exp. 24.55bln). Sees Q2 revenue between USD 2.99-3.05bln (exp. 3.04bln); said Q2 growth of nights and experiences booked to moderate Y/Y relative to Q1, and Q2 ADR is set to be about flat Y/Y. (Newswires)

Strategy (MSTR) - Strategy missed on Q1 earnings, posting a USD 16.49/shr loss (exp. -0.11), with revenue down 3.6% to USD 111.1mln (exp. 115.4mln). Despite USD 5.91bln in unrealised losses, it reported USD 4.1bln bitcoin gains, and raised its 2025 bitcoin gain target to USD 15bln, and launched a USD 21bln equity offering. (Newswires)

02 May 2025 - 06:47- EnergyResearch Sheet- Source: Newsquawk