Newsquawk Daily European Equity Opening News - 3rd February 2025

ASIA

APAC stocks sold off as all focus was on US President Trump's latest tariff action over the weekend in which he signed a tariff order which confirms 25% tariffs on Mexico and Canada (with the exception of 10% on Canadian energy products) and 10% additional tariffs on top of existing levies for China. ASX 200 declined with all sectors suffering firm losses while mixed data did little to spur demand. Nikkei 225 slumped firmly beneath the 39,000 level with Japanese automakers notably spooked by tariff jitters. Hang Seng conformed to the negative mood on return from the Chinese New Year holiday with demand constrained after disappointing Chinese Caixin Manufacturing PMI and amid the continued absence of mainland participants.

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.09% at 5,287, DAX +0.02% at 21,732, CAC 40 +0.11% at 7,950, FTSE 100 +0.31% at 8,674, SMI +0.00% at 12,604, FTSE MIB +0.12% at 36,472, IBEX 35 -0.41% at 12,369, PSI -0.16% at 6,524,AEX +0.32% at 922

SECTORS: IT 1.33%, Energy 0.50%, Healthcare 0.46%, Industrials 0.41%, Utilities 0.39%, Consumer Disc -0.15%, Materials -0.18%, Financials -0.20%, Telecoms -0.21%, Consumer Stpl -0.60%

FTSE 100

Anglo American (AAL LN) – Government of Botswana and De Beers conclude negotiations on rough diamond sales agreement; extending Debswana’s mining licenses beyond 2029. (Newswires)

AstraZeneca (AZN LN) – Co. rejected close to GBP 80mln of UK state support when it cancelled plans for a GBP 450mln vaccine manufacturing sit near Liverpool, according to the FT citing people familiar with the matter. (FT)

Barclays (BARC LN) – BBC News reported that Barclays is working to update its account balances after tech disruptions on Friday, which has since been resolved. (BBC)

BT (BT/ LN) - Chair of Bharti Enterprises is to meet with BT’s executive committee and senior management this week to explore the company’s strategy, according to the FT. (FT)

NatWest (NWG LN) – Cos bonus pot reaches GBP 450mln for 2024, according to Sky News citing sources. (Sky News)

Unilever (ULVR LN) - Unilever is considering listing its ice cream business, which includes brands like Ben & Jerry’s and Breyers, in New York, Bloomberg reports. The potential move could face resistance in the Netherlands, the unit's home market. Other listing options, such as Amsterdam and London, are also being evaluated. The decision is part of Unilever's plans to separate the ice cream division by the end of 2025.

OTHER UK COMPANIES

BROKER MOVES

British Land (BLND LN) upgraded to Buy from Hold at HSBC

Big Yellow (BYG LN) upgraded to Buy from Hold at HSBC

HSBC (HSBA LN) downgraded to Hold from Buy at Deutsche Bank

Segro (SGRO LN) downgraded to Hold from Buy at HSBC

DAX

Daimler Truck (DTG GY) – UAW says members at Detroit Axle ratify contract. Agreement secures profit sharing and cost-of-living benefits. (Newswires)

Porsche (P911 GY) - Porsche AG is in discussions to remove CFO Lutz Meschke and Sales Head Detlev von Platen from its executive board, Bloomberg reports. The decision follows poor sales performance in China, although specific reasons for the changes have not been disclosed. (Bloomberg)

Volkswagen (VOW3 GY) – Co. sues India to cancel an “impossibly enormous” tax demand of USD 1.4bln, according to Reuters citing court papers. Volkswagen says that all taxes were paid in line with rules. (Reuters)

OTHER GERMAN COMPANIES

Metro (B4B GY) – Co. sold its Belgian property portfolio. (Newswires)

BROKER MOVES

CAC

LVMH (MC FP) - LVMH's watch and jewellery divisions are seeing a positive outlook for 2025, with sales recovering after a decline, NBC reports. Optimism is fuelled by strong demand in the US and Europe, despite a slow Chinese market. New product launches and luxury-focused strategies, such as Tiffany's upscale offerings and Bulgari's "Serpenti" collections, are driving growth. However, concerns over potential US tariffs on luxury goods persist. The shift toward women's purchasing power is reshaping client demographics.

Sanofi (SAN FP) – Announces buyback of shares from L’Oreal (OR FP). To acquire 2.3% of its shares from L’Oreal at EUR 101.5/shr; total consideration of transaction amounts to EUR 3bln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Trump Tariffs - On February 1st, President Trump imposed tariffs on Mexico, Canada, and China, citing fentanyl and immigration issues as the basis for the actions, with the new tariffs set to affect USD 1.3tln in goods. Canada and Mexico retaliated with tariffs on US goods, while China plans to challenge the move at the WTO. The EU faces future tariffs, and warned it would retaliate. Trump's tariffs include 25% duties on imports from Mexico and Canada, and 10% on China. Canadian oil faces a 10% tariff, while Mexican energy imports are taxed at 25%. The White House offered no clear criteria for ending the tariffs. Trump warned of short-term economic pain. These measures are expected to raise consumer prices, disrupt supply chains, and create economic instability. Critics argue that this will hurt US consumers, automakers, and industries reliant on imports. Following Trump's tariff announcement, the USD surged, while global equity markets and digital currencies dropped at the start of the week; futures for US and European stocks fell, and Asian shares saw their steepest drop in six months. Concerns about price pressures pushed Treasury yields higher.

Trump-tariff related pre-market movers - Shares in automakers BMW (BMW GY) / Daimler Truck (DTG GY) indicated lower by 3-4%; Energy names Siemens Energy (ENR GY) / Nordex (NDX1 GY) seen down -4%.

ASML (ASML NA) – CEO says the chance that the co. remains in the Netherlands is “extremely high”. (Newswires)

Adyen (ADYEN NA) – Selects Yapily to strengthen its open banking offering across key European markets. (Newswires)

BMPS (BMPS IM) – Fitch says that BMPS’s bid for Mediobanca (MB IM) poses execution risks and could damage Mediobanca’s franchise. (Newswires)

Fertiliser companies – EU Fertiliser companies are to push for steeper tariffs on Russian imports, according to the FT. (FT)

Generali SpA (G IM), UniCredit (UCG IM) - UniCredit has acquired a 4.1% stake in Italy’s leading insurer Generali, via market purchases over time, ANSA reports. The investment is purely financial, with minimal impact on UniCredit’s capital. The bank has no strategic interest in Generali and is focused on other priorities, such as its offer for Banco BPM (BAMI IM) and investment in Commerzbank (CBK GY), the report adds. (Newswires)

Iberdrola (IBE SM) – Co. installed capacity at end-Dec at 56,668 MW. (Newswires)

Nova Chemicals, Adnoc, OMV (OMV AV) - Abu Dhabi’s Adnoc and Austria’s OMV are in talks to acquire Canada’s Nova Chemicals and merge it into a USD 30bln chemical giant by combining their existing units, Borouge and Borealis, Bloomberg reports. Negotiations are ongoing and said to be "constructive and positive." (Bloomberg)

Stellantis (STLAM IM / STLAP FP) – Stellantis is undergoing a management shakeup, with Chief Software Officer Yves Bonnefont and Peugeot brand head Linda Jackson stepping down, BBG reports. It follows the removal of CEO Carlos Tavares, as part of the company's ongoing restructuring efforts. (Bloomberg)

Santander (SAN SM) – Christiana Riley to succeed Tim Wennes as the CEO of Santander US. (Newswires)

BROKER MOVES

Saipem (SPM IM) downgraded to Hold from Buy at Stifel

SMI

ABB (ABBN SW) – Co. completed 2024 share buyback program; board intends to cancel all repurchased shares. (Newswires)

Roche (ROGN SW) - Received FDA approval for the first companion diagnostic to identify patients with HER2-ultralow metastatic breast cancer eligible for Enhertu. (Newswires)

Nestle (NESN SW) – Nestle Canada announces voluntary recall and discontinuation of Gerber Soothe N Chew Teething sticks. (Newswires)

OTHER SWISS COMPANIES

Julius Baer (BAER SW) – FY (CHF): Net Income 1.02bln (exp. 940mln), Revenue 3.86bln, +19% Y/Y. CET 1 Ratio 17.8% (exp. 16.3%), Net Inflows 14.2bln (exp. 13.1bln); exec says 400 jobs may be affect by the cost-cutting program. (Newswires)

Sika (SIKA SW) – Acquired Elmich, in Singapore; no terms. (Newswires)

BROKER MOVES

Sandoz (SDZ SW) downgraded to Neutral from Buy at UBS

SCANDINAVIA

BROKER MOVES

Swedbank (SWEDA SS) downgraded to Underweight from Equal Weight at Barclays

US

CLOSES: SPX -0.51% at 6,040, NDX -0.14% at 21,478, DJIA -0.75% at 44,544, RUT -0.97% at 2,285

SECTORS: Energy -2.74%, Technology -0.79%, Materials -0.73%, Consumer Staples -0.72%, Industrials -0.72%, Financials -0.63%, Utilities -0.63%, Health -0.35%, Real Estate -0.22%, Consumer Discretionary +0.09%, Communication Services +0.74%.

Twitter - X (formerly Twitter) has expanded its lawsuit, accusing major companies like Nestle (NSRGY), Abbott Laboratories (ABT), Colgate-Palmolive (CL), Lego, Pinterest (PINS), Tyson Foods (TSN), and Shell (SHEL) of illegally participating in an ad boycott, WSJ reports. The lawsuit claims these companies, alongside the World Federation of Advertisers, violated antitrust laws by withholding billions in advertising from the platform.

03 Feb 2025 - 06:56- Research Sheet- Source: Newsquawk