Newsquawk Daily European Equity Opening News - 31st January 2025

ASIA

APAC stocks were mostly higher but with gains capped at month-end and as participants digested earnings and tariff threats. ASX 200 printed a fresh all-time high with the index led by strength in gold miners and tech although the defensive sectors lagged. Nikkei 225 remained afloat albeit with momentum restricted by a choppy currency and a slew of earnings. KOSPI underperformed on return from the holiday closure with tech names pressured as SK Hynix got its first opportunity to react to the DeepSeek debacle and Samsung Electronics was also negative despite better-than-expected earnings for Q4 as it provided a pessimistic view for the current quarter.

Samsung Electronics (005930 KS) - Q4 (KRW) net 7.8tln (exp. 5.8tln), oper. profit 6.5tln (prelim. 6.5tln), rev. 75.8tln (prelim. 75tln), sees limited memory chip shipment growth in 2025. Says: Q4 mobile business operating profit KRW 2.1tln. Q4 chip business operating profit KRW 2.9tln. Q4 display business operating profit KRW 0.9tln. Sees limited memory chip shipment growth in 2025. System LSI, foundry business earnings declined in Q4. Lacklustre earnings in system LSI, foundry to continue in Q1. Q4 smartphone sales declined. Aims for double-digit profit margin in mobile business in Q1. Q1 earnings improvement may be limited due to semiconductor weakness but aims to pursue growth. 2024 capex KRW 53.6tln. 2024 chip capex KRW 46.3tln. Expects memory market demand to recover from Q2 2025. Display business had declining profits in Q4 due to sluggish smartphone demand and rising competition. Q1 earnings outlook for the mobile display business is conservative. Sees 2025 memory capex in line with 2024. To pay year-end dividend of KRW 363/shr. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: +0.43% at 21,731, FTSE 100: +1.04% at 8,647, CAC 40: +0.88% at 7,942, Euro Stoxx 50: +1.07% at 5,287, AEX: +1.55% at 919, IBEX 35: +1.09% at 12,421, FTSE MIB: +0.16% at 36,430, SMI: +0.54% at 12,597, PSI: +0.07% at 6,535.

SECTORS: Energy 1.59%, IT 1.34%, Utilities 1.09%, Consumer Stpl 0.96%, Industrials 0.89%, Consumer Disc 0.84%, Materials 0.77%, Healthcare 0.69%, Telecoms 0.58%, Financials 0.41%

FTSE 100

UK Business - UK Lloyds Business Barometer (Jan) 37 (Prev. 39). Reuters highlights that the figure "remains above its long-run average of 29%, but has been dragged down for four of the last five months by businesses' ebbing optimism about the economy". (Reuters)

Wise (WISE LN) - Co. has launched in Mexico, allowing international money transfer within the country. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Admiral (ADM LN) downgraded to Reduce from Hold at Peel Hunt

Sainsbury's (SBRY LN) downgraded to Hold from Buy at HSBC

Tullow Oil (TLW LN) downgraded to Hold from Buy at Panmure

DAX

SAP (SAP GY) - Atlassian (TEAM) shares surged by 20% in extended trading after beating Q2 forecasts, and issued stronger-than-expected guidance (see details in the US section). Potentially of note for peers such as SAP

OTHER GERMAN COMPANIES

Atoss Software (AOF GY) - FY24 (EUR): EBIT 63.4mln (prev. 51.8mln Y/Y), Revenue 170.6mln (prev. 151mln Y/Y). (Newswires) Shares +6.9% in pre-market trade

BROKER MOVES

CAC

Kering (KER FP) - Reportedly sells mall luxury outlets  to US REIT Simon Property Group (SPG) for net proceeds of EUR 350mln, via Bloomberg. (Bloomberg)

Sanofi (SAN FP) - Sarclisa is the first anti-CD38 treatment approved in China for patients with newly diagnosed multiple myeloma ineligible for transplant. Approval based on positive results from the IMROZ phase 3 study that demonstrated Sarclisa in combination with bortezomib, lenalidomide, and dexamethasone (VRd) significantly improved progression-free survival, compared to VRd alone in transplant-ineligible newly diagnosed multiple myeloma. (Sanofi)

OTHER FRENCH COMPANIES

Elis (ELIS FP) - FY (EUR): Revenue 4.57bln (exp. 4.57bln), +5.2% Y/Y. (Newswires)

Sopra Steria Group (SOP FP) - Proposed an acquisition of Aurexia; exp. to be completed by Q2'25. (Newswires)

BROKER MOVES

PAN EUROPE

Puig (PUIG SM) - Q4 (EUR): Net Sales 1.36bln (exp. 1.30bln), FY Net Sales 4.79bln (exp. 4.74bln). (Newswires)

Sacyr (SCYR SM) - To propose Pedro Hernandez as CEO. (Newswires)

Weightloss Drugs - US HHS nominee RFK Jr. calls GLP-1 drugs miracle drugs; supports prescription of GLP drugs for adults with morbid obesity and diabetes but alongside exercise. (Newswires)

UCB (UCB BB) - RYSTIGGO can now be self-administered, or administered by a caregiver, with an infusion pump or manual push with a syringe, after receiving training from a healthcare professional. Self-administered subcutaneous treatment may offer many advantages, including high patient satisfaction, sense of control, and increased independence as patients do not need to attend regular clinic visits. (UCB)

BROKER MOVES

SMI

Novartis (NOVN SW) - Q4 (USD): Net Sales 13.15bln (exp. 12.79bln), Core EPS 1.98 (exp. 1.83), Net Income 2.8bln (prev. 8.5bln). 2024 dividend of 3.50/shr, +6.1%. Reached key innovation milestones. Board proposes that shareholders allow them to repurchase up to CHF 10bln of shares, in addition to the outstanding CHF 3.5bln authorization, between the 2025 and 2028 AGMs. 2025 Guidance: Net Sales growth of mid-to-high-single digit.Operating Income growth of high-single to low-double-digit. (Newswires)

UBS (UBSG SW) - CEO said imposing higher capital requirements on UBS will bring in higher costs for companies and households. (Newswires)

OTHER SWISS COMPANIES

Galderma (GALN SW) - Galderma will present new data on Relfydess (RelabotulinumtoxinA) – the first and only ready-to-use liquid neuromodulator created using PEARL™ Technology, which has now launched in multiple countries in Europe – including results from the phase IIIb RELAX trial, reinforcing its long-term efficacy and high patient satisfaction, as seen in the READY clinical trial program. (businesswire)

BROKER MOVES

SCANDINAVIA

AB SKF (SKFB SS) - Q4 (SEK): Adj. Op. 2.7bln (prev. 2.9bln Y/Y), Revenue 24.7bln (exp. 25.07bln, prev. 24.4bln Y/Y). Q1'25: Expect organic sales to weaken somewhat Y/Y. (Newswires)

Elisa (ELISA FH) - Q4 (EUR): EBIT 119mln (exp. 128.7mln), EBITDA 191mln (exp. 198.7mln), Revenue 580mln (exp. 570.8mln). 2025 Outlook: FY rev. is estimated to be at same level or slightly higher than in 2024. (Newswires)

Holmen (HOLMB SS) - Q4 (SEK): Sales 5.51bln (exp. 5.71bln). (Newswires)

BROKER MOVES

Nokia (NOKIA FH) downgraded to Hold from Buy at Carnegie

US

CLOSES: SPX +0.53% at 6,071, NDX +0.45% at 21,508, DJIA +0.38% at 44,882, RUT +1.07% at 2,307

SECTORS: Technology -0.56%, Energy +0.53%, Consumer Discretionary +0.61%, Financials +0.94%, Materials +1.00%, Consumer Staples +1.07%, Communication Services +1.14%, Industrials +1.15%, Health +1.16%, Real Estate +1.36%, Utilities +2.14%.

Atlassian Corp (TEAM) - Atlassian shares surged by 20% in extended trading after beating Q2 forecasts, and issued stronger-than-expected guidance. Q2 adj. EPS 0.96 (exp. 0.76), Q2 revenue USD 1.29bln (exp. 1.24bln). Q2 subscription revenue USD 1.21bln (exp. 1.18bln); cloud revenue USD 847.0mln (exp. 820.1mln); data centre revenue USD 362.3mln (exp. 350.8mln). Q2 R&D expenses USD 680.2mln (exp. 635.4mln); Q2 capex USD 9.34mln (exp. 10.3mln). Sees Q3 revenue at USD 1.35bln (exp. 1.32bln), and sees FY revenue growth of +18.5-19% (prev. saw +16.5-17. (Newswires)

Apple (AAPL) - Shares rose 3% afterhours following results, where Q1 revenue rose 4%, but iPhone sales missed expectations, and China sales fell; Mac and iPad sales improved, while wearables declined. The strong growth in its services segment supported its rise afterhours. Ahead, Apple expects modest revenue growth next quarter. It reported Q1 EPS of 2.40 (exp. 2.35), and Q1 revenue of USD 124.3bln (exp. 124.12bln). Sales in Greater China fell by -11% Y/Y to USD 18.51bln (exp. 21.57bln); CEO that over half of the China revenue decline was due to changes in inventory. By segment, Products revenue rose +1.6% Y/Y to USD 97.96bln (exp. 98.02bln), and services revenue rose +14% Y/Y to USD 26.34bln (exp. 26.1bln). By product, iPhone revenue fell by -0.8% Y/Y to USD 69.14bln (exp. 71.04bln); Wearables, home, and accessories sales fell by -1.7% Y/Y to USD 11.75bln (exp. 11.95bln); iPad revenue rose +15% Y/Y to USD 8.09bln (exp. 7.35bln), while Mac sales rose +16% Y/Y to USD 8.99bln (exp. 7.94bln). CFO said total revenue was expected to grow low to mid-single digits, and gross profit margin in the March quarter to between 46.5-47.5%. CFO sees services revenue growing by low double digits. Sees FX headwinds, which are expected to negatively impact revenue by 2.5ppts. (Newswires)

DeepSeek - The US Congress has banned staff from using Chinese AI chatbot DeepSeek, citing security concerns, Axios reports. A notice from the House's Chief Administrative Officer warned of threats and the risk of malicious software. It follows prior restrictions on AI tools like ChatGPT and Microsoft Copilot. (Newswires)

Visa (V) - Shares rose over 1% in extended trading after it reported a Q1 profit beat, driven by double-digit growth in cross-border volumes and processed transactions. It reported Q1 adj. EPS of 2.75 (exp. 2.66), Q1 revenue of USD 9.50bln (exp. 9.34bln); Q1 Total Visa processed transactions USD 63.8bln (exp. 63.43bln), and Q1 payments volume increased +11%. Ahead, it sees Q2 EPS growth of high-single-digits, and sees Q2 net revenue growth of low double-digits. (Newswires)

Intel (INTC) - Shares rose 3.7% in extended trade after it reported better-than-expected Q4 earnings, though it issued weak guidance, citing seasonality and competition. Q4 adj. EPS 0.13 (exp. 0.12), Q4 revenue USD 14.26bln (exp. 13.81bln). Q4 adj. gross margin: 42.1% (exp. 39.5%), Q4 R&D expenses USD 3.88bln (exp. 4.04bln). By segment, Products revenue USD 13.03bln (exp. 12.66bln), client Computing revenue USD 8.02bln (exp. 7.88bln), DataCenter & AI revenue USD 3.39bln (exp. 3.37bln), Network & Edge revenue USD 1.62bln (exp. 1.52bln), Foundry revenue USD 4.50bln (exp. 4.5bln). Exec said it was on track to ship over 100mln AI pcs by 2025-end. Sees Q1 adj. EPS at 0.00 (exp. 0.09), and sees Q1 revenue between USD 11.7-12.7bln (exp. 12.87bln). (Newswires)

Microsoft (MSFT) - OpenAI in talks for investment round valuing it up to USD 340bln, WSJ reports; in talks to raise up USD 40bln in new round. (Newswires)

US Steel (X) - US Steel reported a Q4 loss, with adj. earnings missing expectations, and revenue decreased. It reported Q4 EPS -0.13 (exp. -0.13), Q4 revenue USD 3.51bln (exp. 3.51bln). Q4 steel shipments fell -13% Y/Y to 3.30mln tons (exp. 3.22mln); Q4 flat-rolled steel average realised price per ton fell -2.2% Y/Y to USD 956 (exp. 935.96); Europe average realised price per ton fell -2.5% Y/Y to USD 751 (exp. 778.63); mini mill average realised price per ton fell -2.2% Y/Y to USD 789 (exp. 771.87). Separately, Bloomberg reports that Bluefin Capital reduced its stake in US Steel after briefly becoming its second-largest shareholder; the firm initially held over 23mln shares but has since trimmed its position; BlackRock (BLK) remains the largest investor. (Newswires)

US Trump Tariffs - US President Trump to announce 25% tariffs on Canada and Mexico because of fentanyl, according to Bloomberg. (Bloomberg)

31 Jan 2025 - 06:42- Research Sheet- Source: Newswires