
Newsquawk Daily European Equity Opening News - 5th February 2025
ASIA
APAC stocks traded mixed with the region only partially sustaining the positive momentum from the US, as Chinese markets reopened from the Spring Festival and participants digested disappointing China Caixin Services PMI data. ASX 200 edged higher with the gains led by outperformance in the resources, tech and mining sectors, while Australian Services and Composite PMI figures were revised higher from the preliminary release. Nikkei 225 swung between gains and losses with the index pressured intraday as the Japanese currency strengthened after data showed the fastest pace of wage growth in Japan since 1997. Hang Seng and Shanghai Comp declined on the mainland's return from the Spring Festival holiday as participants digested the recent US-China tit-for-tat tariffs, while disappointing Chinese Caixin Services PMI data added to the downbeat mood.
EUROPEAN CLOSES
CLOSES: DAX: +0.39% at 21,511, FTSE 100: -0.15% at 8,571, CAC 40: +0.66% at 7,906, Euro Stoxx 50: +0.88% at 5,264, AEX: +0.35% at 919, IBEX 35: +1.49% at 12,387, FTSE MIB: +1.38% at 36,719, SMI: -0.52% at 12,471, PSI: +0.78% at 6,517.
SECTORS: IT 1.48%, Energy 1.05%, Consumer Disc 0.67%, Financials 0.53%, Utilities 0.28%, Materials 0.24%, Industrials 0.10%, Consumer Stpl -0.57%, Telecoms -0.58%, Healthcare -0.87%
FTSE 100
Shell (SHEL LN) - Petroleum development co. of Nigeria (SPDC) confirms oil spill at the Ogale near port Harcourt in Nigeria during flushing operations. Elsewhere, Shell starts up a new facility in the UK North Sea restoring production from Penguins Field. (Newswires)
OTHER UK COMPANIES
De La Rue (DLAR LN) - Co. has been approached by other co's, whilst Edi Truell revises its buyout proposal. (Newswires)
BROKER MOVES
Raspberry Pi (RPI IM) downgraded to Hold from Buy at Jefferies
Marks & Spencer (MKS LN) downgraded to Hold from Buy at Jefferies
Schroders (SDR LN) upgraded to Outperform from Sector Perform at RBC
DAX
Allianz (ALV GY) - Co. and Insurance Australia Group (IAG AT) said to mull bids for a top Western Australia insurer, according to Bloomberg. (Bloomberg)
OTHER GERMAN COMPANIES
BROKER MOVES
CAC
Credit Agricole (ACA FP) - Q4 (EUR): Revenue 7.092bln (exp. 6.51bln), +17.4% Y/Y, Net Income 1.68bln (exp. 1.41bln), FICC Trading Revenue +17% Y/Y, Proposed Dividend for 2025 EUR 1.10/shr, +5% Y/Y. CET1 Ratio 11.7% (exp. 11.7%). Loan Loss Provisions 594mln (exp. 507.5mln). Controlling Entity Rue La Boetie plans to purchase Credit Ag shares on the market for up to EUR 500mln. CEO said group's sole motivation in building a stake in Banco BPM (BAMI IM) is to defend the bank's interest. (Newswires)
Renault (RNO FP) - Honda (7267 JT) and Nissan (7201 JT) may cut off merger talks, according to Bloomberg; boards to each meet soon to discuss merger. (Newswires) RNO FP holds a 17% stake in Nissan
Saint Gobain (SGO FP) - Co. to launch its first low carbon stone wool production line in Spain; to invest EUR 40mln. (Newswires)
OTHER FRENCH COMPANIES
JCDecaux (DEC FP) - Co. to double the number of roadside screens in London. (Newswires)
BROKER MOVES
STMicroelectronics (STM FP) downgraded to Market Perform from Outperform at SocGen
PAN EUROPE
China-exposed stocks - Chinese Caixin Composite PMI (Jan) 51.1 (Prev. 51.4); Caixin Services PMI (Jan) 51.0 vs. Exp. 52.3 (Prev. 52.2)
EU Tariffs - EU prepares to target US big tech if US President Trump pursues tariffs against the EU, according to FT. (FT)
Intesa Sanpaolo (ISP IM) - CEO said the bank has no interest in buying a stake in Generali (G IM). (Newswires)
Santander (SAN SM) - Q4 (EUR) Pretax Profit 4.6bln (exp. 4.67bln), NII 12.0bln (exp. 11.25bln, prev. 11.1bln Y/Y); expects to buy back EUR 10bln through 2025-2026; sees in 2025 lower costs in euros; cost of risk of around 1.15%; ROTE of >17%. CET1 Ratio 12.8% (exp. 12.30%). (Newswires)
BROKER MOVES
Generali (G IM) downgraded to Neutral from Buy at Goldman Sachs
SMI
OTHER SWISS COMPANIES
BROKER MOVES
SCANDINAVIA
DNB (DNB NO) - Q4 (NOK): NII 16.71bln (exp. 16.17bln), Directors to propose dividend of NOK 16.75bln/shr. (Newswires)
Equinor (EQNR NO) - Q4 (USD): Adj. Net EPS 0.63 (exp. 0.73), Net Operating Income 8.73bln (exp. 8.75bln), Revenue 27.7bln (exp. 28.2bln). Announces a share buyback of up to USD 5bln. Sees 2025: Organic Capex at USD 13bln. Oil & Production to grow +4% Y/Y (Newswires)
Lundbeck (LUN DC) - FY (DKK): Adj. EPS 1.36 (prev. 0.58 Y/Y), Adj. EBITDA 1.15bln (prev. 793mln Y/Y), Revenue 5.54bln (exp. 5.69bln). (Newswires)
Handelsbanken (SHBA SS) - Q4 (SEK): Net Income 6.85bln (prev. 7.24bln Y/Y), Revenue 16bln (prev. 15.5bln Y/Y). Proposed special dividend of SEK 7.50/shr. (Newswires)
Novo Nordisk (NOVOB DC) - Q4 (DKK): Revenue 85.7bln (exp. 80.3bln), EBIT 36.74bln (exp. 33.6bln), Wegovy Sales 19.886bln (exp. 20.18bln). Proposed a final 2024 dividend of 7.93/shr. Not initiating a new buyback. Commentary: Expect to see continued periodic supply constraints related to drug shortage notifications across a number of products and geographies. Sees intensifying competition and continued pricing pressures within diabetes and obesity care. Cagrisema: intends to initiate a new Phase 3 trial in 2025, to file first regulatory approval in 2026. 2024 Results: Global diabetes value market share 33.7%, unchanged Y/Y; driven by gains in North America but offset by a decline in International Operations. Diabetes care sales +20%, driven by growth of GLP-1-based products and insulins. Ozempic 120.3bln, +26%; driven by both North America Operations and International Operations. Rybelsus 23.3bln, +26%; driven by EMEA and Rest of World. Victoza 5.48bln, -36%; decline was driven by the GLP-1 diabetes market moving towards once-weekly treatments in both North America Operations and International Operations. 2025 Guidance: Sales growth 16-24% at CER Operating Profit growth 19-27% at CER FCF 75-85bln CapEx 65bln. (Novo Nordisk)
Pandora (PNDRA DC) - Q4 (DKK) Net Income 2.87bln (exp. 2.89bln), Revenue 12bln (exp. 11.9bln); announces a new DKK 4bln share buyback; says performance in China continues to be challenged ending at -10% LFL in Q4. More Q4 Metrics: EBIT Margin 34.7% (exp. 34.4%), EBIT 4.14bln (exp. 4.05bln). Guides initial FY25 organic rev. +7-8% (exp. 0.9%, Adj. EBIT margin 24.5% (exp. 24.7%). Notes that Q1 trading helped by strong end of season sale. (Newswires)
Kesko (KESKOB FH) - Q4 (EUR): EPS 0.31 (prev. 0.31 Y/Y), Revenue 3.04bln (prev. 2.90bln Y/Y). Guides initial FY25 Adj. EBIT 640-740mln. (Newswires)
Vestas Wind Systems (VWS DC) - FY (EUR): Reveneu 17.3bln (exp. 17bln), Adj. EBIT 741mln (exp. 619mln); announces a EUR 100mln share buyback. Guides initial FY25 rev. 18-20bln (exp. 19.4bln), Adj. EBIT Margin 4-7% (exp. 6.7%). (Newswires)
BROKER MOVES
US
CLOSES: SPX +0.72% at 6,038, NDX +1.26% at. 21,567, DJIA +0.30% at 44,556, RUT +1.41% at 2,290
SECTORS: Energy +2.18%, Communication Services +1.48%, Technology +1.47%, Consumer Discretionary +1.43%, Materials +0.28%, Industrials +0.07%, Real Estate +0.01%, Health -0.27%, Financials -0.28%, Consumer Staples -0.51%, Utilities -0.88%.
Advanced Micro Devices (AMD) - Shares tumbled by almost 9% in extended trading despite beating on Q4 earnings expectations, and noting strong AI-driven growth, as it missed data centre sales estimates. It reported Q4 adj. EPS 1.09 (exp. 1.08), Q4 revenue USD 7.66bln (exp. 7.53bln); Q4 data centerer revenue +69% Y/Y at USD 3.86bln (exp. 4.09bln); Gaming revenue USD 563mln (exp. 487.9mln). Q4 capex +50% Y/Y at USD 208mln (exp. 148.8mln); Q4 adj. operating margin 26% (exp. 26.8%); Q4 free cash flow USD 1.09bln(exp. 1.35bln); Q4 R&D expenses USD 1.71bln (exp. 1.65bln). Sees Q1 revenue 6.8-7.4bln (exp. 7.04bln), and projects 2025 double-digit revenue and EPS growth. Sees Q1 data centerer revenue down Q/Q; thinks AI data centre demand environment will strengthen in FY25. Says cheaper AI models will spur the pace of AI adoption, and is bullish about overall AI cycle.
Amgen Inc (AMGN) - Q4 adj. EPS 5.31 (exp. 5.08), Q4 revenue USD 9.09bln (exp. 8.88bln). Phase 3 trials for obesity drug MariTide will start before mid-year, but the FDA paused a Phase 1 study of AMG 513; said that discussions are underway on a path forward to reopen study of AMG 513 in people with obesity which was placed on clinical hold by the FDA. Sees FY adj. EPS between 20.00-21.20 (exp. 20.81), and sees FY revenue between USD 34.3bln-35.7bln (exp. 34.62bln).
Alphabet (GOOG) - Alphabet's shares fell over 7% in extended trading after Q4 revenue missed expectations, as cloud growth slowed, while it also foresees capex in 2025 above expectations, driving investor concerns that AI spending may not drive sufficient returns amid rising competition. Q4 EPS 2.15 (exp. 2.13), Q4 revenue USD 96.469bln (exp. 96.56bln). It reported a Q4 operating margin of 32% (exp. 31.9%), and capex of USD 14.28bln (exp. 13.21bln). By segment, Q4 Google advertising revenue USD 72.46bln (exp 71.73bln); YouTube ads revenue 10.47bln (exp. 10.22bln); Search & Other Revenue USD 54.03bln (exp. 53.29bln); Network Revenue USD 7.95bln (exp. 8.14bln); Subscriptions, Platforms and Devices Revenue USD 11.63bln (exp. 12.03bln); Services revenue USD 84.09bln (exp. 83.73bln); Cloud revenue USD 11.96bln (exp. 12.19bln). Sees FY25 Capex at about 75bln (exp. 57.9bln); with Q1 capex seen around USD 16-18bln. Elsewhere, it said Waymo will expand its network and operations partnerships to open new markets, including Austin and Atlanta this year and Miami next year. And on its AI model, said it is making the Gemini 2.0 flash AI model available from Wednesday. It also notes that in Q4, it saw strong uptake of its sixth-generation TPU Trillium, which delivers four times better training performance, and three times greater inference throughput compared to the previous generation; it also continues its strong relationship with NVIDIA (NVDA), noting that it recently delivered their H200-based platforms to customers, and last week announced a customer running on the highly-anticipated Blackwell platform.
Chipotle Mexican Grill (CMG) - Shares fell 5% in extended trading; despite revenue and profits more-or-less in line with expectations, it warned on tariffs, and issued a cautious outlook. Q4 adj. EPS 0.25 (exp. 0.24), Q4 revenue USD 2.85bln (exp. 2.85bln); Q4 comp sales +5.4%. CMG downplayed potential US tariffs on Mexican imports, stating only 50% of its avocados come from Mexico; if tariffs proceed, costs could rise 0.6ppts. Sees FY25 comp sales growth in he low to mid-single digits; Q1 comps are expected to be flat (said that Easter falling back into Q2 will negatively affect comps by about 100bps with no benefit in Q1).
Electronic Arts Inc (EA) - Q3 2024 (USD): EPS 1.11 (exp. 3.08), Revenue 1.88bln (exp. 2.32bln). Note, in late January in reported prelim Q3 figures of Total net revenue about 1.88bln and EPS about 1.11.
FMC Corporation (FMC) - Shares tumbled 18% in extended trading on soft guidance. It reported Q4 adj. EPS of 1.79 (exp. 1.60), Q4 revenue of USD 1.22bln (exp. 1.31bln). Exec said that while it saw a good increase in volume, the growth was below expectations as it learned during the quarter that customers in many countries sought to hold significantly less inventory than they have historically; added that this dynamic, along with more pronounced FX impacts, acted as a headwind to further growth. Sees Q1 adj. EPS between 0.05-0.15 (exp. 0.83), and sees Q1 revenue between 750-800mln (exp. 963.7mln). For the FY, sees adj. EPS between 3.26-3.70 (exp. 4.36), and sees revenue between USD 4.15-4.35bln (exp. 4.4bln).
Snap Inc (SNAP) - Snap's shares ended the extended trading session +5.6% after it reported strong Q4 results, with revenue up 14%; gains were pared on a soft outlook for Q1. Q4 adj. EPS 0.16 (exp. 0.14), Q4 revenue USD 1.56bln (exp. 1.55bln). Q4 DAUs 453mln (exp. 451.2mln); Snapchat+ subscribers hit 14mln in Q4; Q4 ARPU USD 3.44 (exp. 3.43); Q4 FCF USD 182.4mln (exp. 181.9mln). Sees Q1 revenue between USD 1.33-1.36bln (exp. 1.33bln), and Q1 DAUs at 459mln (exp. 458.2mln). Exec also hinted at price hikes ahead.
Mondelez International (MDLZ) - Shares fell 4.7% in extended trading after MDLZ said it sees FY profits dropping due to soaring cocoa prices, while Q4 revenue and EPS missed estimates. It reported Q4 adj. EPS of 0.65 (exp. 0.66), Q4 revenue of USD 9.60bln (exp. 9.64bln). Sees FY adj. EPS declining approximately 10% (exp. -6.7%) due to unprecedented cocoa cost inflation.
Prudential Financial (PRU) - Shares slipped in extended trading on a profit miss in Q4. It reported Q4 adj. EPS of 2.96 (exp. 3.25). Raised its quarterly dividend +3.8% to USD 1.35/shr. Assets under management increased to USD 1.51tln (prev. 1.45tln). However, its business income from the US fell 11%.
Walmart (WMT) - Walmart is cutting roles and closing its North Carolina office as part of a relocation strategy, moving employees to hubs in Arkansas and California, according to Reuters. Some staff must relocate or face job losses. The company is expanding office spaces in several locations, including NY and Washington. It did not disclose the number of affected employees.
US-China - US President Trump's administration weighs adding Shein and Temu to its forced labour list, according to Semafor. (Semafor)
05 Feb 2025 - 06:59- Data- Source: Newsquawk
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