Newsquawk Daily European Equity Opening News - 4th February 2025

ASIA

APAC stocks traded higher as the region reacted to US President Trump's delay of tariffs against Canada and Mexico for a month, while the additional 10% tariffs on China took effect and prompted an immediate retaliation by China. ASX 200 was initially led higher by strength in tech and miners but ultimately settled flat owing to the US-China tariff frictions. Nikkei 225 briefly climbed back above the 39,000 level with the biggest gainers and losers dictated by earnings releases. Hang Seng surged amid hopes that China would also reach a tariff deal with the US after President Trump stated that he would probably speak with China within 24 hours, but then briefly wobbled after China announced tit-for-tat tariffs against the US.

Nintendo (7974 JT) - 9M (JPY) Operating Profit 247.60bln (-46.7% Y/Y), Net Profit 237.19bln (-41.9% Y/Y); Sees FY Operating Income 280bln (prev. saw 360bln). (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -1.50% at 21,405, FTSE 100: -1.04% at 8,584, CAC 40: -1.20% at 7,855, Euro Stoxx 50: -1.26% at 5,220, AEX: -0.62% at 916, IBEX 35: -1.30% at 12,208, FTSE MIB: -0.69% at 36,219, SMI: -0.40% at 12,554, PSI: -0.89% at 6,467.

SECTORS: Telecoms 0.52%, Utilities 0.05%, Consumer Stpl 0.02%, Healthcare -0.12%, Energy -0.75%, Materials -1.08%, Consumer Disc -1.08%, Financials -1.19%, Industrials -1.27%, IT -1.66%

FTSE 100

Anglo American (AAL LN) - CEO Wanblad has cautioned that US President Trump's tariffs will increase the cost of mining for years. (FT)

Rio Tinto (RIO LN) - Co. said it is moving iron ore ships out of Western Australia ports due to cyclones. (Newswires)

Santander (SAN SM) - In 2024, the Co. rejected a "low ball" offer for its UK retail business from Barclays (BARC LN), via FT citing sources; additionally, Barclays has also previously considered pursuing an asset swap with the Co. (FT)

Smiths Group (SMIN LN) - Elliott Management has built a stake of almost 5% in the Co. over the past year, via FT citing sources; Elliott is reportedly supportive of the Co's plan to sell/demerge two of its four core units and return proceeds to investors. (FT)

OTHER UK COMPANIES

BROKER MOVES

Reckitt (RKT LN) downgraded to Equal Weight from Overweight at Barclays

DAX

Infineon (IFX GY) - Q1 (EUR): Revenue 3.4bln (exp. 3.21bln), adj. EPS 0.33 (exp. 0.27), Segment Result 0.57bln (exp. 0.455bln), Segment Margin 16.7%. Q2 Outlook: Revenue around 3.6bln (exp. 3.42bln) FY Outlook: Revenue seen flat to slightly up (prev. guided to decline slightly) adj. Gross Margin around 40% Investments at around 2.5bln (prev. guided 2.5bln) CEO: "Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers." (Newswires) Shares +3.5% in pre-market trade after headline beats and lifting guidance

OTHER GERMAN COMPANIES

Siltronic (WAF GY) – Q4 (EUR): EBITDA 93mln (exp. 80.5mln), Revenue 361mln (exp. 356mln). Achieved 2024 targets; noted of persistently high inventory levels delay demand recovery. 2025: Demand recovery delayed due to continued high inventories at chip manufacturers and their customers. H1’25 exp. to be significantly below H2’24. EBITDA margin between 22-27%. Co. suspends dividend policy for 2024 financial year due to ongoing weak demand and primarily serves to support organic growth. (Newswires)

BROKER MOVES

CAC

Amundi (AMUN FP) – Q4 (EUR): Adj. Net Income 377mln (prev. 313mln Y/Y), Pretax 469mln (prev. 806mln Y/Y), Adj. Revenue 924mln (prev. 806mln Y/Y). AuM 2.24tln, +10% Q/Q. (Newswires)

Airbus (AIR FP) - Co. is said to hire Goldman (GS) to help on European space tie-up. (Newswires)

BNP Paribas (BNP FP) – Q4 (EUR): Net Income 2.32bln (exp. 2.29bln), Revenue 12.1bln (prev. 11.6bln Y/Y). Announces a EUR 1.08bln share buyback to be launched in Q2’25. Approves a semi-annual interim dividend starting in 2025, which is to be 50% of net earnings per share. Equity and Prime Services Revenue EUR 856mln (+30% Y/Y). Loan Loss Provision 877mln (exp. 881.6mln). (Newswires)

Dassault Systemes (DSY FP) – Q4 (EUR): Non IFRS EPS 0.40 (exp. 0.40), Revenue 1.75bln (exp. 1.82bln). Guides Q1: EPS 0.30-0.32 (exp. 0.33); FY25 Total Revenue 6.55-6.65bln (exp. 7.30bln). (Newswires)

Engie (ENGI FP) - Co. still see strong appetite in US for development of renewable energy projects and expect US will still be integral part of Cos. portfolio. Elsewhere, co. signed a 4.3 GW of new power purchase agreements in 2024. (Newswires)

Vinci (DG FP) – Co. won a contract of EUR 183mln to build in Le Havre. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Chemical Names - US President Trump says should use fewer chemicals in agriculture. (Newswires)

China-exposed Stocks, Industrial Stocks - US tariff retaliation: China imposes export controls on tungsten, tellurium, ruthenium, molybdenum, and ruthenium-related items, according to the commerce ministry and Chinese customs. China's Finance Ministry says tariffs imposed to counter 10% Trump tariff and will take effect on February 10th. Export Controls: China imposes export controls on tungsten, tellurium, ruthenium, molybdenum, and ruthenium-related items, according to the commerce ministry and Chinese customs. Note, no specific countries were named under the export control. (Newswires) Trump's Monday Comments: US President Trump says US will probably speak to China over the next 24 hours; China will not be involved with Panama canal for long. China tariffs were an opening salvo. China tariffs will go up if they cannot make a deal. If can’t make deal with China, tariffs will be substantial. (Newswires)

EU Tariffs - US President Trump reportedly considering plans to impose a 10% tariff on the EU, according to The Telegraph. "A source close to Mr Trump’s administration said there is not broad agreement “but some want to put a 10 per cent tariff on the EU”. “They’re talking about doing it on all imports from the EU.” "A second source told The Telegraph: “Trump is testing the water with Canada and Mexico and what he can get away with.” (Telegraph)

OMV (OMV AV) – Q4 (EUR): Clean CCS Net Income 555mlm (exp. 490mln), Revenue 5.5bln (prev. 10.1bln Y/Y), FY Dividend per share 4.75 (exp. 4.68). (Newswires)

Salvatore Ferragamo (SFER IM) - CEO Gobbetti agrees on consensual termination; co. starts process for new CEO. (Newswires)

TomTom (TOM2 NA) – Q4 (EUR): Revenue 142.2mln (prev. 143.4mln Y/Y), EBIT -6.1mln (exp. -3mln). Outlook 2025: FCF break-even. Location tech rev. 505-565mln. (Newswires)

BROKER MOVES

SMI

UBS (UBSG SW) - Q4 (USD) Net Income 770mln (exp. 483mln), Revenue 11.6bln (prev. guided 11.5bln, exp. 11.64bln), Co. is to buy back USD 3bln in shares this year and raise its dividend to USD 0.90/shr, +29%. CET1 Capital Ratio 14.3% (exp. 14%). Integration to complete by end-2026 and deliver USD 13bln in cost gross saving. 2025: In Q1, expects around 10% sequential decline in NII in personal and corporate banking. Expects underlying ROCET1 of 10% in FY25, citing increased profitability expectation in core franchises. (Newswires)

OTHER SWISS COMPANIES

Clariant (CLN SW) – Lugman withdraws from purchase of “Industrial Park Fechenheim”; remains committed to divest it as the co. has no operational activities in the industrial park. (Newswires)

SoftwareOne (SWON SW) – Co. to apply for secondary listing on Euronext Oslo Bors, advancing its combination with Crayon; offer period exp. to commend in mid-March 2025. (Newswires)

BROKER MOVES

Novartis (NOVN SW) upgraded to Buy from Hold at Deutsche Bank

SCANDINAVIA

Bavarian Nordic (BAVAB DC) – FY (DKK): Revenue 5.71bln (exp. 5.50bln), EBITDA 1.60bln (exp. 1.48bln). FY25 Outlook: 5.70-6.70bln (exp. 6.41bln). (Newswires)

BROKER MOVES

US

CLOSES: SPX -0.76% at 5,995, NDX -0.84% at 21,298, DJIA -0.28% at 44,422, RUT -1.28% at 2,258

SECTORS: Technology -1.80%, Consumer Discretionary -1.35%, Industrials -1.03%, Financials -0.43%, Real Estate -0.21%, Communication Services -0.06%, Materials +0.05%, Health +0.40%, Energy +0.42%, Utilities +0.46%, Consumer Staples +0.68%.

ByteDance - US President Trump signed an executive order to create a US sovereign wealth fund, which could potentially buy TikTok. The fund requires congressional approval. Treasury Secretary Bessent and Commerce Secretary nominee Lutnick will lead its creation. Trump delayed TikTok’s ban and plans a decision on its sale in February.

Fabrinet (FN) - Q2 EPS 2.61 (exp. 2.49), Q2 revenue USD 833.6mln (exp. 813.6mln). Q2 Datacom revenue USD 299.1mln (vs 288.1mln Y/Y), Q2 Telecom revenue USD 348mln (vs 279.8mln Y/Y), Q2 Automotive revenue USD 104.2mln (vs 79.2mln Y/Y). Board approved an expansion of its share repurchase programme, authorising the repurchase of up to an additional USD 100mln shares; takes the aggregate authorisation to USD 534mln. Sees Q3 EPS between 2.55-2.63 (exp. 2.55), sees Q3 revenue between USD 850-870mln (exp. 825.1mln). Exec said Q3 datacom revenue will be down slightly sequentially in anticipation of the ramp in the coming quarters from next generation products. Expects telecom revenue to see strong sequential growth again in Q3; sees automotive revenue continuing to grow sequentially.

PVH Corp (PVH), Illumina (ILMN) - China Commerce Ministry says PVH Corp (PVH) and Illumina (ILMN) put on unreliable entity list. (Newswires)

NXP Semiconductors (NXPI) - NXP Semiconductors topped Q4 metrics, but offered soft guidance for Q1. Operating and free cash flow margins declined, while inventory days increased. Q4 adj. EPS 3.18 (exp. 3.14), Q4 revenue USD 3.11bln (exp. 3.1bln). Sees Q1 adj. EPS between 2.39-2.79 (exp. 2.69), and sees Q1 revenue between USD 2.73bln-2.93bln (exp. 2.92bln).

Palantir Technologies (PLTR) - Palantir’s earnings exceeded expectations on AI growth, seeing its stock rise over 20% in extended trading. It reported Q4 adj. EPS of 0.14 (exp. 0.11), and Q4 revenue of USD 827.5mln (exp. 780mln). Exec said it is still in the earliest stages of a revolution that will play out over years and decades, adding that the momentum it is seeing is unlike anything that has come before. Sees Q1 revenue between USD 858-862mln (exp. 802.9mln), and sees Q1 adj. operating profit between USD 354-358mln (exp. 300.4mln). Sees FY25 revenue between USD 3.74-3.76bln (exp. 3.54bln), and sees FY adj. operating profit between USD 1.55-1.57bln (exp. 1.37bln).

Salesforce (CRM) - Salesforce is cutting over 1,000 jobs while hiring for AI-related roles, Bloomberg reports. The company recently secured over 1,000 AI platform deals and will report earnings on February 26th.

04 Feb 2025 - 06:57- Research Sheet- Source: Newsquawk