Newsquawk Daily European Equity Opening News - 5th March 2025

ASIA

APAC stocks traded mixed following the whipsawing stateside on Trump's tariffs, subsequent retaliation and Commerce Secretary Lutnick's suggestion of a potential rollback, while the region also digested a slew of commentary from China’s Official Work Report and President Trump’s Address to the Joint Session of Congress. ASX 200 was dragged lower by underperformance in the consumer and energy sectors, while better-than-expected Australian GDP data failed to inspire a recovery. Nikkei 225 price action was initially choppy but gradually edged higher amid a weaker currency. Hang Seng and Shanghai Comp were positive after better-than-expected Chinese Caixin Services PMI data and with the attention on the NPC and the Official Work Report in which China maintained its annual growth target of around 5% and pledged measures including a boost in spending, while there was notable outperformance in Hong Kong where CK Hutchison surged by more than 20% after agreeing to sell its Panama Canal Ports stake to BlackRock.

Chinese Data - Chinese Caixin Services PMI (Feb) 51.4 vs. Exp. 50.8 (Prev. 51.0); Caixin Composite PMI (Feb) 51.5 (Prev. 51.1)

China - China NDRC says will use monetary policy instruments to adjust both the monetary aggregate and structure, adds will lower banks' reserve requirement ratios, interest rates at the right timing. China's NDRC says will boost domestic demand and will promote integrated advancements in technological and industrial innovation. China targets 2025 GDP growth of around 5% and CPI target at around 2%, according to Official Work Report. (Newswires)

EUROPEAN CLOSES

CLOSES: DAX: -3.53% at 22,329, FTSE 100: -1.27% at 8,759, CAC 40: -1.85% at 8,048, Euro Stoxx 50: -2.58% at 5,397, AEX: -1.76% at 914, IBEX 35: -2.60% at 13,026, FTSE MIB: -3.41% at 37,736, SMI: -1.24% at 13,021, PSI: -1.64% at 6,700.

SECTORS: Consumer Stpl 1.27%, Utilities 0.11%, Healthcare -0.33%, Telecoms -1.48%, Materials -2.19%, Consumer Disc -2.85%, Industrials -2.97%, Financials -3.09%, Energy -3.83%, IT -4.48%

FTSE 100

Flutter (FLTR LN) - Q4 (USD): EPS 2.94 (exp. 1.56), Revenue 3.79bln (exp. 3.75bln). 2025: US guidance: See US Sales 7.72bln (exp. 7.7bn), EBITDA 1.4bln (exp. 1.3bln). Ex-US: 8.25bln (exp. 8.25bln), EBITDA 1.85bln (exp. 2.2bln). Sees FY25 revenue growth of +13% at between USD 15.48-16.38bln. Targets 2025 share repurchases up to USD 1bln. US: Q4 Total Online Gross Gaming Revenue Share 36% (prev. 35% Q/Q). Notes that in the US 2025 has started well, with underlying trends in-line with expectations. Australia: Performance reflected exp. market declines, however, player trends remain encouraging. CEO says historically, business has been strong in face of challenges re. consumer economics. Notes that the Co. will be putting a bid for Italian National Lottery concession. (Newswires)

OTHER UK COMPANIES

BROKER MOVES

Just Eat Takeaway (JET LN) downgraded to Neutral from Buy at Citi

St James's Place (STJ LN) downgraded to Neutral from Buy at UBS

DAX

Adidas (ADS GY) - Q4 (EUR): Op. Income 57mln (prelim. 57mln), Revenue 5.97bln (prelim 5.97bln). 2025: Sees Op. Profit EUR 1.7-1.8bln (exp. 2.04bln). Currency-neutral sales to increase at a high-single digit rate; and to grow strongly across all markets. (Newswires) Shares -3% in pre-market trade

Bayer (BAYN GY) - Q4 (EUR): Core EPS 1.05 (exp. 0.26), Adj. EBITDA 2.35bln (exp. 2.25bln), Revenue 11.7bln (exp. 11.3bln). Notes 2025 will be the most difficult in terms of financial performance. Targets EUR 800mln in savings for pharma unit in FY25. 2025: Guides Core EPS 4.5-5, Revenue 45-47bln (exp. 46.5bln). Targets return to sales growth by 2027; targets EBITDA margin mid-20% by 2029. Expects improved performance from 2026 onwards. (Newswires)

Deutsche Bank (DBK GY) - Accepts EUR 23mln fine for derivative violations. (Newswires)

Germany - Germany's CDU leader Merz says Germany plans reform of debt brake; Economy must be brought back on growth path, with credit financed special fund worth EUR 500bln. (Newswires) Defence names are firmer in the pre-market

OTHER GERMAN COMPANIES

Evonik (EVK GY) - FY (EUR): Adj. Net Income 777mln (prev. 370mln Y/Y), Revenue 15.2bln (prev. 15.3bln Y/Y). Guides Q1 Adj. EBITDA "higher than prior year". Guides initial FY25 Adj. EBITDA 2.0-2.4bln. By end-2026 will reduce annual costs by around EUR 400mln. Reorganisation and planned job cuts are going according to plan. (Newswires)

freenet (FNTN GY) - FY (EUR): Revenue 2.57bln (prev. 2.38bln Y/Y). 2025: Sees FY EBITDA increase to EUR 521.5mln. (Newswires)

BROKER MOVES

CAC

Scor (SCR FP) - Q4 (EUR): Adj. Net Income 235mln (prev. 179mln Y/Y), GWP 5.05bln (prev. 4.93bln Y/Y). Notes EUR 140mln California wildfire impact. Insurance rev. 3.98bln (exp. 3.99bln). (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - FY (EUR): Revenue 9.58bln (prev. 10.7bln Y/Y). (Newswires)

BROKER MOVES

PAN EUROPE

Trade - US President Trump posts on Truth "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!". Thereafter, US Commerce Secretary Lutnick says he thinks US President Trump will meet Mexico, Canada in the middle on tariffs, via Fox business interview; they're going to probably be announcing that tomorrow (Wednesday). Trump to move with Canada and Mexico but not all the way. Trump may roll back Canada and Mexico tariffs tomorrow (Wednesday). US and Canadian officials in talks to possibly roll back Trump’s tariffs, according to WSJ. (Newswires/WSJ)

Ukraine/Russia/Defence - US and Ukraine plan to sign minerals deal, according to Reuters citing sources. US President Trump says he received an important letter from Ukrainian President Zelensky who said he is ready to come back to the table and Ukraine is ready to sign a minerals deal. (Newswires)

ASML (ASML NA) - In 2024, some customers slowed capital spending due to export controls. Has become more difficult to obtain US licenses for foreign workers. Growing list of Chinese entities subject to restrictions has impacted and may further impact business. Countries impacted by export restrictions may impose countermeasures leading to contradicting rules. Increasing risk raw materials may become unavailable or restricted due to geopolitics. (Newswires)

Arcadis (ARCAD NA) - CFO to step down effective May 31; Willem Baaers named interim CFO. (Newswires)

Campari (CPRI IM) - FY24 (EUR): Sales 3.07bln (exp. 3.02bln), Adj. EBIT 605mln (exp. 601.9mln), Adj. net income 376mln, Adj. EBITDA 733mln. (Newswires)

IMCD (IMCD NA) - FY (EUR): EBITA 531mln (exp. 531.4mln). Dividend EUR 2.15/shr. (Newswires)

Luxury - Barclays downgraded Luxury sector to Market Weight. (Newswires)

Stellantis (STLAM IM/STLAP FP) - Jeep warns that tariffs favour Asian and European rivals, via the WSJ. (WSJ)

Telecoms - Barclays upgraded Telecoms to Overweight. (Newswires)

UniCredit (UCG IM) - Co. is set to raise its stake in Generali (G IM) to close to 10%, according to Il Sole 24 Ore Daily. (Il Sole 24 Ore Daily)

BROKER MOVES

Deutsche Telekom (DTE GY) downgraded to Hold from Buy at HSBC

SMI

Helvetia (HELN SW) - Helvetia Swiss Commercial FY (CHF): Net Income 24.4mln. Outlook 2025: Efficient und and portfolio management to further reduce costs. (Newswires)

Roche (ROG SW) - FDA accepts supplemental biologics license application for Genentech’s Gazyva for the treatment of lupus nephritis. Filing application is based on data from Phase III Regency study, where Gazyva showed superiority over standard therapy alone in people with active lupus nephritis. FDA is expected to make a decision on approval by October 2025.

OTHER SWISS COMPANIES

Sandoz (SDZ SW) - Q4 (USD): Revenue 2.72bln (exp. 2.74bln). Raises dividend CHF 0.60/shr (prev. CHF 0.45/shr). 2025: Guides FY rev. "mid-single digit growth". Reaffirms mid-term targets.(Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

H&M (HMB SS) downgraded to Hold from Buy at HSBC

US

CLOSES: SPX -1.22% at 5,778, NDX -0.36% at 20,353, DJI -1.55% at 42,521, RUT -1.08% at 2,080

SECTORS: Financials -3.54%, Industrials -1.96%, Consumer Staples -1.78%, Utilities -1.71%, Consumer Discretionary -1.67%, Materials -1.38%, Real Estate -1.21%, Health -0.93%, Energy -0.86%, Communication Services -0.4%, Technology +0.01%.

BioNTech (BNTX) - The FDA placed a clinical hold on its Phase I/IIa trial of BNT165e, an investigational RNA-based malaria vaccine. BioNTech had already paused the study and is addressing the FDA’s requests while working with the agency to determine next steps.

Citi (C) - CFO says good Q1 momentum in FICC and rates businesses; Q1 revenue up mid-single digits Y/Y in markets; Q1 investment-banking fees looking flat Y/Y. Buybacks speak to confidence in Citi earnings power. M&A pipeline 'looks pretty good. (Newswires)

CrowdStrike (CRWD) - CrowdStrike shares fell almost 10% in extended trading after it issued soft Q1 guidance due to weak cybersecurity spending. Q4 adj. EPS 1.03 (exp. 0.86), Q4 revenue USD 1.06bln (exp. 1.03bln). Q4 ARR +23% Y/Y to USD 4.24bln at the end of January, of which USD 224.3mln was net new ARR added in Q4. Sees Q1 adj. EPS between 0.64-0.66 (exp. 0.96), and sees Q1 revenue between 1.10-1.11bln (exp. 1.11bln). For the FY26, sees adj. EPS between 3.33-3.45 (exp. 4.43), and revenue between USD 4.74-4.81bln (exp. 4.77bln).

Disney (DIS) - Disney is cutting nearly 6% of staff at ABC News and Disney Entertainment Networks, affecting around 200 employees, WSJ reports. The layoffs could be announced as early as Wednesday, and are part of broader cost-cutting measures. Elsewhere, Disney entered into a USD 5.25bln 363-day credit agreement. Separately, Co-Chairman of Disney Entertainment said that Hulu on Disney+ was improving the company's churn dynamic.

Goldman Sachs (GS) - To cut about 3-5% of workforce and is to target VP's in next round of cuts, according to WSJ. (WSJ)

US Chip Subsidies - President Trump called for the termination of the USD 52bln semiconductor subsidy programme, known as the 'Chips Act', during his address to Congress. He criticised the programme, which has attracted over USD 400bln in investments from companies like TSMC (TSM) and Intel (INTC), and suggested using remaining funds to reduce national debt.

05 Mar 2025 - 07:00- Data- Source: Newsquawk