Newsquawk Daily European Equity Opening News - 7th March 2025

ASIA

APAC stocks were mostly lower as the region followed suit to the losses stateside amid growth concerns, tech weakness and tariff uncertainty, while participants digested Chinese trade data and braced for US jobs data. ASX 200 retreated below the 8,000 level with the declines led by tech following the rout in US counterparts and with the top-weighted financial sector also suffering firm losses. Nikkei 225 underperformed and dipped to sub-37,000 territory in early trade with weakness in tech stocks dragging the index lower, while long-term Japanese yields continued to rise. Hang Seng and Shanghai Comp initially bucked the trend despite the weaker-than-expected Exports and Imports data from China, while there were recent support pledges by the nation's central bank, finance and securities heads including PBoC Governor Pan who said they will study and establish new structural policy tools, as well as cut interest rates and banks’ RRR at the appropriate time. However, the benchmarks ultimately succumbed to the broader risk tone.

Chinese Data - Chinese Trade Balance USD (Feb) 170.51B vs. Exp. 142.35B (Prev. 104.84B)

EUROPEAN CLOSES

CLOSES: DAX: +1.59% at 23,448, FTSE 100: -0.83% at 8,683, CAC 40: +0.29% at 8,198, Euro Stoxx 50: +0.18% at 5,507, AEX: +0.13% at 911, IBEX 35: +0.26% at 13,248, FTSE MIB: +0.68% at 38,780, SMI: -0.78% at 13,010, PSI: -0.64% at 6,690

SECTORS: Industrials 1.12%, Materials 0.70%, Energy 0.26%, Financials 0.19%, Consumer Stpl -0.04%, IT -0.30%, Utilities -0.35%, Consumer Disc -0.59%, Healthcare -0.89%, Telecoms -1.17%

FTSE 100

Lloyds (LLOY LN) - Co. is hiring hundreds of IT engineers in India, and plans to cut similar jobs in the UK, according to the FT; plans are to cut 4k employees, which would halve the number of engineers by 2026. (FT)

OTHER UK COMPANIES

BROKER MOVES

Fresnillo (FRES LN) upgraded to Buy from Hold at Berenberg

Vodafone (VOD LN) upgraded to Buy from Hold at DZ Bank

Whitbread (WTB LN) downgraded to Neutral from Overweight at JP Morgan

DAX

BMW (BMW GY) - Co. says vehicles made in Mexico and US do not comply with USMCA rules, meaning they will be subject to 25% tariff. (Newswires)

Zalando (ZAL GY) - Has secured more than 90% of About You's share capital without treasury shares and announces firm intention to implement a squeeze out of minority shareholders of About You. Closing of takeover expected in summer 2025. (Newswires)

OTHER GERMAN COMPANIES

BROKER MOVES

Kion (KGX GY) upgraded to Buy from Neutral at Citi

MTU Aero (MTX GY) downgraded to Hold from Buy at Kepler

CAC

BNP (BNP FP) - Co. reaffirms it commitment to supporting financing of defence companies. (Newswires)

Vivendi (VIV FP) - FY 2024 (EUR): Adj. Net Income 111mln (exp. 63mln), NAV 4.829bln, to propose a dividend of 0.04/shr. CEO says will exit Telecom Italia (TIT IM) when it can get good terms. (Newswires)

OTHER FRENCH COMPANIES

Atos (ATO FP) - Launches 10k to 1 reverse stock split, effective Apr. 24th. (Newswires)

BioMerieux (BIM FP) - FY (EUR): Net Income 432mln (exp. 489mln), Revenue 3.98bln (exp. 3.95bn). Guides initial FY25 more than 7%. (Newswires)

Spie (SPIE FP) - Provides 2025-28 targets, rev. +7% annually, with organic 3-4%. (Newswires)

BROKER MOVES

Eutelsat (ETL FP) upgraded to Neutral from Sell at Goldman Sachs

PAN EUROPE

Trade - US President Trump signs amendment to Mexico and Canada tariffs to make USMCA-compliant products exempt from levies until 2nd April. One-month exemptions to 25% tariffs on Mexico and Canada are going to cover all USMCA-covered goods.. US President Trump says there is no USMCA exemption for auto tariffs next month, according to Reuters. US President Trump says steel and aluminium tariffs will not be modified. Canada will not react to US President Trump's latest move on tariffs until officials have studied the executive order, via Reuters citing a Canadian government source. Canada's Finance Minister says Canada will delay second wave of tariffs on CAD 125bln of US products until April 2nd. (Newswires)

Crypto - White House Crypto Czar says US President Trump signed an executive order to establish a strategic Bitcoin reserve, adds US will not sell any Bitcoin deposited into the reserve. The government will not acquire additional assets for the stockpile beyond those obtained through forfeiture proceedings. (Newswires)

ECB Sources - ECB officials see April showdown on whether to cut rates again, according to Bloomberg sources. Chance of an interest rate cut in April is growing and rates are still likely to fall further, and 2.5% is unlikely to be the bottom of the cycle, according to Reuters sources. ECB policymakers see a growing chance of a pause in their easing cycle at their next meeting before rates come down again, once they have greater clarity about trade and fiscal policy, four sources told Reuters. (Reuters)

Ferragamo (SFER IM) - FY24 (EUR): Revenue 1.04bln (exp. 1.03bln), Net loss 68.1mln, EBITDA 215.2mln (exp. 210.2mln), EBIT 35mln (exp. 16.6mln). Exec says revenues in January and February showed quite a stable performance, and were slightly positive. (Newswires)

Ukraine/Russia/Defence Names - US presses Ukraine for quick ceasefire to go with minerals deal, according to Bloomberg sources; President Trump demands tangible path to truce. (Newswires)

Universal Music Group (UMG NA) - FY (EUR): Operating profit 1.775bln, Adj. EBITDA 2.661bln (exp. 2.532bln), Revenue 11.83bln (exp. 11.68bln). (Newswires)

BROKER MOVES

AkzoNobel (AKZA NA) upgraded to Buy from Sell at Goldman Sachs; expects a trough in H1, before re-rating amid German fiscal reform. GS raised its Adj. EBITDA estimates for FY25,FY26 & FY27. (Newswires)

Stellantis (STLAM IM/STLAP FP) initiated with Hold at TD Cowen; sees positive catalysts in H2. (Newswires)

SMI

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

H&M (HMB SS) downgraded to Neutral from Buy at UBS

US

CLOSES: SPX -1.78% at 5,738, NDX -2.79% at 20,052, DJI -0.99% at 42,578, RUT -1.64% at 2,066

SECTORS: Energy +0.50%, Consumer Staples -0.11%, Health -0.28%, Materials -0.53%, Industrials -0.92%, Financials -1.67%, Utilities -2.05%, Communication Services -2.17%, Technology -2.65%, Real Estate -2.78%, Consumer Discretionary -2.93%

Broadcom (AVGO) - Broadcom shares surged up to 18% in after-hours trading after reporting strong AI-related demand in Q1, where profits and sales topped expectations, while it guided Q2 sales above estimates. It reported Q1 EPS 1.60 (exp. 1.51), Q1 revenue USD 14.9bln (exp. 14.61bln). Q1 Semiconductor Solutions revenue USD 8.21bln (exp. 8.15bln), Q1 Infrastructure Software revenue USD 6.70bln (exp. 6.48bln). Exec said the recovery in non-AI semiconductors continued to be slow, and the wireless segment is expected to be flat in Q2. Expects USD 4.4bln in AI semiconductor sales in Q2, benefiting from hyperscaler investments. Sees Q2 revenue at 14.9bln (exp. 14.5bln); sees Q2 adj. EBITDA of approximately 66% of projected revenue. (Newswires)

Gap (GAP) - Gap's shares surged almost 20% in extended trading after it reported Q4 sales and profits that exceeded estimates, driven by strong holiday demand and its turnaround efforts. It reported Q4 EPS of 0.54 (exp. 0.36), Q4 revenue of USD 4.1bln (exp. 4.07bln), Q4 gross margin at 38.9% (exp. 38.1%); Q4 comp. sales +3% (exp. +1.9%). Sees Q1 sales flat- to up slightly (exp. +1.55%); sees FY net sales growth of +1-2% (exp. +1.7%), but warns of macroeconomic challenges, including inflation, tariffs, and supply chain disruptions. (Newswires)

Hewlett Packard Enterprise (HPE) - Hewlett Packard Enterprise shares fell 19% in extended trading after weak earnings guidance. Despite Q1 revenue exceeding expectations, it cited pricing pressures and AI server inventory issues. HPE will also cut 2,500 jobs (around 5% of staff) over the next 18 months, targeting USD 350mln in cost savings. It reported Q1 adj. EPS of 0.49 (exp. 0.49), Q1 revenue USD of 7.85bln (exp. 7.82bln). Sees Q2 adj. EPS between 0.28-0.3 (exp. 0.48), and sees Q2 revenue between USD 7.2bln-7.6bln (exp. 7.94bln). For the FY, sees adj. EPS between 1.70-1.90 (exp. 2.12). (Newswires)

Meta Platforms (META) - Meta is advancing voice-powered AI with Llama 4, enabling natural two-way conversations, FT reports. It plans premium subscriptions and ads for Meta AI while enhancing Ray-Ban (ESLOY) smart glasses. Future Llama 4 updates will focus on reasoning and speech, reflecting Meta’s shift from text-based to voice-centric AI. (Newswires)

NVIDIA (NVDA), Oracle (ORCL), OpenAI - OpenAI and Oracle plan to install tens of thousands of NVIDIA's GB200 chips at a new Texas data centre for their USD 100bln Stargate venture, Bloomberg reports. By 2026, the site will house some 64k chips, with 16k set to be deployed by summer 2025.

TikTok - President Trump has indicated he may extend the April 5th deadline for the potential sale of TikTok if no deal is reached by then, according to Bloomberg. Trump mentioned there is significant interest in the app, but suggested the extension may be needed, depending on progress in negotiations.

Trump-Fed - Treasury Secretary Bessent dismissed concerns that President Trump's tariff hikes would trigger sustained inflation. He suggested the Federal Reserve should view them as a one-time price adjustments, aligning with his view that tariffs' inflationary impact is temporary, not a long-term economic concern.

Walgreens (WBA) Seals USD 10bln take-private deal with Sycamore, while total value of deal including debt and potential future payouts would be almost USD 24bln, according to WSJ. (WSJ)

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