Newsquawk Daily European Equity Opening News - 6th February 2025

ASIA

APAC stocks followed suit to the gains on Wall St where sentiment was underpinned amid a softer yield environment and the lack of trade war escalation. ASX 200 outperformed with the index led higher by strength in financials, consumer discretionary and gold-related stocks. Nikkei 225 advanced at the open and reclaimed the 39,000 level but then briefly pared the majority of the gains owing to yen strength and comments from hawkish BoJ board member Tamura. Hang Seng and Shanghai Comp conformed to the constructive mood in the region amid a lack of major escalation on the trade front with the US Postal Services flip-flopping on suspending parcels from Hong Kong and China, while China initiated a WTO dispute complaint regarding US tariffs although this was as previously announced.

Nissan (7201 JT)/Honda (7267 JT) - Nissan CEO Uchida told Honda CEO Mibe that Nissan wants to terminate merger talks, according to Asahi newspaper. Co. is searching for a new partner with the Honda deal set to collapse, according to Bloomberg. (Newswires)

SK Innovation (096770 KS) - Expects about KRW 6tln in capex this year, adds a delay in EV market demand growth recovery is expected in the short term due to the Trump administration and automakers recalibrating their electrification business

EUROPEAN CLOSES

CLOSES: DAX: +0.22% at 21,552, FTSE 100: +0.61% at 8,623, CAC 40: -0.19% at 7,892, Euro Stoxx 50: +0.12% at 5,271, AEX: 0.00% at 919, IBEX 35: +1.23% at 12,525, FTSE MIB: -0.38% at 36,581, SMI: +0.95% at 12,581, PSI: +0.22% at 6,531

SECTORS: Healthcare 2.26%, Telecoms 1.10%, Utilities 0.56%, Financials 0.35%, IT 0.27%, Energy 0.10%, Industrials -0.09%, Materials -0.12%, Consumer Stpl -0.15%, Consumer Disc -0.35%

FTSE 100

OTHER UK COMPANIES

BROKER MOVES

Halma (HLMA LN) downgraded to Reduce from Hold at HSBC

DAX

Hannover Re (HNR1 GY) – FY (EUR): GWP 26.4bln (exp. 26.83bln), Op. Profit 3.3bln (exp. 3.09bln, prev. 1.97bln Y/Y), Net Income 2.3bln (exp. 2.42bln, prev. 1.8bln Y/Y). Confirms its FY25 guidance. (Newswires)

HelloFresh (HFG GY) – Announced the launch of Factor, a direct-to-consumer ready to eat meal service in Germany. (Newswires)

Qiagen (QIA GY) - Q4 adj. EPS 0.61 (exp. 0.62), Q4 revenue USD 521mln (exp. 518.5mln). Expects the solid growth pace in H2 to continue in 2025. Sees FY25 adj. EPS of at least 2.28 (exp. 2.35). Reconfirms 2028 targets.

Siemens Healthineers (SHL GY) – Q1 (EUR): Adj. EPS 0.51 (exp. 0.47), Revenue 5.48bln (exp 5.36bln). Affirms FY25 guidance. Continues to expect a decline in rev. in China for H1, followed by stable rev. development. (Newswires) Shares +4.5% in pre-market trade

OTHER GERMAN COMPANIES

Aurubis (NDA GY) - H1 (EUR): EBT 130mln (prev. 111mln Y/Y), Revenue 4.22bln (prev. 3.90bln Y/Y). Guides initial FY24 EBT 300-400mln. Significant rise in the metal result due to higher metal prices; robust earnings from copper. (Newswires)

Metro AG (B4B GY) - Q1 2025 (EUR): Sales 8.57bln (prev. 8.12bln Y/Y), Adj. EBITDA 412mln (prev. 407mln Y/Y); FY24/25 guidance confirmed. Q1 sales affected by negative currency effects particularly in Russia and Turkey. Co. and EPGC agree on the delisting of Metro shares of EUR 5.33/shr vs last close EUR 3.90/shr. (Newswires) Shares +33.8% in pre-market trade

BROKER MOVES

CAC

Pernod Ricard (RI FP) - H1 (EUR): Sales 6.17bln (exp. 6.19bln). Cuts FY Organic Net Sales guidance on Spirits, due to ongoing challenges in the US and China. FY26 expected to be a transition year with improving trends. Q2 Organic Revenue -3% (exp. -2.9%). Asia-Rest of World -5% Y/Y; Europe -2% Y/Y; Americas -4% Y/Y. Notes that there is a worsening context in China and travel retail Asia. (Newswires)

SocGen (GLE FP) - Q4 (EUR) Net 1.04bln (exp. 860.8mln), Revenue 6.62bln (exp. 6.41bln). FY dividend/shr 1.09 (exp. 1.15), announced a EUR 872mln share buyback. (Newswires)

TotalEnergies (TTE FP) - CEO says will continue to grow its US LNG portfolio for the next decade and US should invest in gas pipeline infrastructure to avoid price hikes and bottlenecks. (Newswires)

OTHER FRENCH COMPANIES

Soitec (SOI FP) – Q3 (EUR): Revenue 226mln, -10% Y/Y. Revises FY25 guidance: Revenue exp. to decrease by high single digit Y/Y at constant exchange rate and perimeter (prev. guided flat); EBITDA margin 32-34% (prev. guided 35%). (Newswires)

BROKER MOVES

Nexans (NEX FP) initiated with Buy at UBS

PAN EUROPE

ArcelorMittal (MT NA) – Q3 (USD): Adj. EPS 0.52 (prev. 1.18 Y/Y), Revenue 4.7bln (exp. 4.9bln), Believes that demand will increase during 2025, optimistic that restocking activity will supplement real demand improvement. 2025 Outlook: Capex 4.5-5.5bln. Expects higher apparent demand in FY25 vs FY24. Positive FCF outlook for next year and beyond. Expects world ex-China apparent steel consumption to grow by 2.5-3.5% in 2025 vs 2024. (Newswires)

BMPS (BMPS IM) - Q4 (EUR): Net Profit 1.95bn (exp. 1.82bln), NII 2.36bln (exp. 2.33bln). FY: NII 2.36bln (exp. 2.33bln), Net Profit 1.95bln (exp. 1.82bln). (Newswires)

Finecobank (FBK IM) – Q4 (EUR): Revenue 332.5mln (exp. 325.9mln). Proposes final dividend of EUR 0.74/shr. 2025: Investing rev. expected to increase low double digit vs FY24. (Newswires)

ING (INGA NA) – Q4 (EUR): Net Income 1.15bln (exp. 1.29bln), NII 3.68bln (exp. 3.61bln), Adj. Pretax 1.77bln (exp. 1.8bln). Proposes final cash dividend of EUR 0.71/shr. 2025: Total income to stay same in 2025 as in 2024. CET1 Ratio to expected to converge towards the target of about 12.5% by end-2025, RoE to exceed 12%. (Newswires)

Lotus Bakeries (LOTB BB) - FY (EUR): Revenue 1.23bln, EBITDA 243.1mln. (Newswires)

BROKER MOVES

SMI

OTHER SWISS COMPANIES

Swiss Prime Site (SPSN SW) – FY24 (CHF): Rental Income 463.5mln (prev. 438.5mln Y/Y). Expects a continuation of the increased investor interest observed since late 2024. (Newswires)

Temenos (TEMN SW) – Signed an agreement to sell Multifonds to Mantagu Private Equity for USD 400mln including an earnout. (Newswires)

BROKER MOVES

SCANDINAVIA

Boliden (BOL SS) - Q4 (SEK): Revenue 25.7bln (exp. 22.54bln), EBIT 4.09bln (exp. 3.80bln). Sees 2025 Capex to be SEK 14bln (prev. guided 13.5bln). Planned maintenance shutdowns in Smelters during 2025 are estimated to have impact on op. profit of around SEK -500mln. Says will continue to face challenges in 2025. (Newswires)

GN Store Nord (GN DC) – Q4 (DKK): Revenue 5bln (exp. 4.2bln), EBITA 688mln (exp 533mln). In 2025: Expects Organic Revenue growth will be negatively affected by wind-down by 3-4%. (Newswires)

Telenor (TEL NO) – Q4 (NOK): Net Income 1.74bln (exp. 1.91bln), Revenue 20.5bln (exp. 20.7bln). Notes of a solid 2024 and on track for 2025 (Newswires)

Maersk (MAERSKB DC) - To initiate a buyback programme of up to DKK 14.4bln (USD 2bln) to be executed over a 12 month period. (Newswires)

Orsted (ORSTED DC) – Adjusts its business and reduces investment programme by 25% to 2030. Aims to reinstate dividends from 2026. (Newswires)

Volvo Car (VOLCARB SS) – Q4 (SEK): Operating Income 6.3bln (prev. 6.7bln Y/Y), Revenue 112.1bln (exp. 108.2bln). FY: Adj. EBIT 27bln (exp. 25.1bln), Revenue 400bln (exp. 386.4bln). Expects market to remain weak in 2025 due to a multitude of competitive and geopolitical challenges, but notes is coming into 2025 with a strong position. Sees 2025 FCF position as Positive vs earlier view of Neutral. Maintains outlook of outgrowing the market between 2023-2026 on a CAGR basis. Notes that raw material prices and supply chain problems have stabilised. (Newswires)

BROKER MOVES

US

CLOSES: SPX +0.39% at 6,061, NDX +0.42% at 21,658, DJIA +0.71% at 44,873, RUT +1.14% at 2,316

SECTORS: Communication Services -2.79%, Consumer Discretionary -1.59%, Materials -0.03%, Industrials +0.09%, Energy +0.11%, Consumer Staples +0.89%, Health +1.02%, Utilities +1.04%, Financials +1.07%, Technology +1.57%, Real Estate +1.59%

Arm Holdings (ARM) - Arm's stock fell over 5% after-hours despite beating earnings expectations, as its fiscal Q4 guidance aligned with forecasts rather than exceeding them; reports said investors likely anticipated stronger projections, given the company's AI-driven growth narrative and recent semiconductor sector momentum. It reported Q3 adj. EPS of 0.39 (exp. 0.34), Q3 revenue of USD 983mln (exp. 946.8mln). Sees Q4 revenue between USD 1.18-1.28bln (exp. 1.23bln), and Q4 adj. EPS between 0.48-0.56 (exp. 0.53). Sees FY adj. EPS between 1.56-1.64 (exp. 1.56), and sees FY revenue between USD 3.94-4.04bln (exp. 3.96bln).

Bank Stress Tests - The Fed outlined hypothetical scenarios for its annual stress tests, assessing 22 banks' ability to withstand a global recession; the tests will focus on stress in commercial and residential real estate, as well as corporate debt markets.

Cognizant Technology (CTSH) - Cognizant shares fell in extended trading as its 2025 revenue forecast missed estimates. Economic uncertainty, high capital costs, and shifting priorities towards AI investments led businesses to cut IT spending. Q4 adj. EPS 1.21 (exp. 1.12), Q4 revenue USD 5.08bln (exp. 5.07bln). Raised quarterly dividend +3% to 0.31/shr. Sees FY25 sales between USD 20.3–20.8bln (exp. 20.89bln), and sees FY25 adj. EPS between 4.90-5.06 (exp. 4.96).

Ford Motor (F) - Ford reported stronger-than-expected Q4 results but issued a cautious forecast for 2025, citing market headwinds and potential pricing pressure, seeing its stock decline by 5% in after-hours trading. The company also acknowledged challenges in vehicle production and quality costs. Q4 Adj. EPS 0.39 (exp. 0.33), Q4 Revenue USD 48.2bln (exp. 43.02bln). It reported Ford Blue revenue of USD 27.3bln (exp. 25.85bln), Ford Model e revenue of USD 1.4bln (exp. 1.8bln), Ford Pro revenue of USD 16.2bln (exp. 15.57bln). Will pay a supplemental dividend of USD 0.15/shr. Sees FY adj. EBIT between USD 7bln-8.5bln (exp. 8.57bln); sees Q1 adj. EBIT to be roughly breakeven, due to lower wholesales and unfavourable mix, including launch activity at major US assembly plants.

Qualcomm Inc (QCOM) - Qualcomm topped expectations in Q1, but shares fell 4% afterhours with traders citing concerns over slowing smartphone demand; analysts have questioned industry growth, while its Huawei’s licensing renegotiation remains unresolved. Q1 adj. EPS 3.41 (exp. 2.96), Q1 revenue USD 11.67bln (exp. 10.93bln); Q1 QCT revenue USD 10.08bln (exp. 9.34bln), Q1 QTL revenue USD 1.54bln (exp. 1.55bln). Sees Q2 adj. EPS between 2.70-2.90 (exp. 2.69), Q2 revenue between USD 10.3-11.2bln (exp. 10.35bln), on Q2 QCT revenue of between USD 8.9-9.5bln (exp. 8.92bln), and Q2 QTL revenue between USD 1.25-1.45bln (exp. 1.4bln).

Skyworks Solutions (SWKS) - Skyworks shares fell over 20% after forecasting a revenue decline in its mobile segment, and lower-than-expected operating income, as slower EV adoption has led to excess chip inventory, affecting analog chipmakers' results. It reported Q1 adj. EPS of 1.60 (exp. 1.57), Q1 revenue of USD 1.07bln (exp. 1.07bln); Q1 adj. gross margin 46.5% (exp. 46.5%), Q1 adj. operating income 284.8mln (exp. 283.6mln); Q1 R&D expenses USD 176.4mln (exp. 168.7mln). Authorised repurchase of up to USD 2bln of common stock. Philips Brace was appointed President and CEO of Skyworks, effective February 17th. Sees Q2 adj. EPS midpoint at 1.20 (exp. 1.19), and Q2 revenue between USD 935-965mln (exp. 941mln).

06 Feb 2025 - 06:59- Geopolitical- Source: Newsquawk