Newsquawk Daily European Equity Opening News - 9th January 2025

ASIA

APAC stocks were mostly negative following the cautious mood in global counterparts amid the recent UK bond market turmoil and Trump tariff reports.ASX 200 was dragged lower amid pressure in industrials, tech and the consumer sectors, while the data was mixed with a larger-than-expected Trade Surplus and an improvement in both monthly Exports and Imports, although Retail Sales disappointed. Nikkei 225 underperformed following firmer-than-expected labour cash earnings which supports the case for the BoJ to resume rate hikes, while participants also awaited after-market earnings releases including from index heavyweight Fast Retailing. Hang Seng and Shanghai Comp were ultimately subdued but with price action indecisive amid ongoing trade-related concerns, while participants digested the latest Chinese inflation data in which Consumer Prices matched forecasts but printed at a 9-month low and factory gate prices remained in deflation territory albeit at a slightly slower-than-expected pace of decline.

China EVs - China's electric vehicle market is seeing intensified competition in early 2025, with manufacturers lowering prices and the government providing subsidies to stimulate demand, DigiTimes reports, adding that it is leading to a new price war in the industry. (Newswires)

Fast Retailing (9983 JT) - Q1 (JPY): Operating Profit 157.56bln (exp. 157.81bln, prev. 146.69bln), Net 131.9bln (prev. 107.8bln Y/Y), Revenue 895.19bln (prev. 810.83bln); Co. affirms FY25 net, Operating Profit and Revenue guidance. (Newswires)

Seven & I (3283 JT) - 9-month (JPY): Net 63.6bln, -65.1%; Operating Profit 315bln, -23%; Recurring Profit 281bln, -27.5%. 2024/25 Guidance. Net: 163bln, -27%. Operating 403bln, -24%. Recurring 356bln, -29%. (Newswires)

SK Hynix (HXSCL) - SK Hynix is set to increase its HBM and DRAM production by 70%, despite constraints in manufacturing space, DigiTimes reports. The expansion comes amid intensifying competition in the memory market, with other global players like Samsung (SSNLF) and CXMT also ramping up DRAM production. (DigiTimes)

EUROPEAN CLOSES

CLOSES: DAX: -0.12% at 20,317, FTSE 100: +0.07% at 8,251, CAC 40: -0.49% at 7,452, Euro Stoxx 50: -0.33% at 4,995, AEX: -0.55% at 889, IBEX 35: -0.12% at 11,798, FTSE MIB: +0.49% at 35,109, SMI: +0.25% at 11,861, PSI: -0.46% at 6,371.

SECTORS: Healthcare 0.80%, Financials 0.15%, Industrials -0.02%, Consumer Stpl -0.08%, Materials -0.18%, Telecoms -0.46%, Consumer Disc -0.78%, Energy -0.92%, Utilities -1.01%, IT -1.04%

FTSE 100

BP (BP/ LN) - India's ONGC (ONGC IS) says BP expects a 44% increase in crude oil production and an 89% increase in nat gas production for Mumbai high. (Newswires)

Chile Iron Ore - Chilean officials unanimously rejected the USD 3bln Dominga iron ore and copper project, after over a decade of deliberation. The decision reflects tensions between environmental protection and economic growth, highlighting political influences in Chile’s permitting process. (Newswires)

Ex-Dividends - Experian (EXPN LN), Sage (SGE LN), Ashtead (AHT LN), Games Workshop (GAW LN) will trade without entitlement to their latest dividend payout. (dividenddata)

Shell (SHEL LN) - Co. to write down around USD 400mln in its upstream division in Q4 relating mainly to Namibia well. (Newswires)

UK Stocks - UK Chancellor said meeting the government's fiscal rules is non-negotiable, and the government will have an iron grip on public finances, according to Sky News. (Sky News) UK Chancellor Reeves reportedly eyes more spending cuts if the UK bond rout eats up headroom, according to Bloomberg citing sources. (Bloomberg)

UK BRC - UK BRC Shop Price Index YY (Dec) -1.0% vs Exp. -0.4% (Prev. -0.6%); prices dropped in December, but likely to rise in 2025, BRC said. A BRC analyst said, "With food inflation bottoming out at 1.8%, and many price pressures on the horizon, shop price deflation is likely to become a thing of the past".

OTHER UK COMPANIES

BROKER MOVES

Hays (HAS LN) downgraded to Underweight from Equal Weight at Morgan Stanley

SSE (SSE LN) upgraded to Buy from Neutral at UBS

Wise (WISE LN) downgraded to Hold from Buy at HSBC

DAX

OTHER GERMAN COMPANIES

Nordex (NDX1 GY) - Denkerwulf placed orders for 148 MW with Nordex. Additionally, received orders for 50 MW in Germany from WPD. (Newswires)

BROKER MOVES

Delivery Hero (DHER GY) reinstated with Overweight at Barclays Shares +6% in pre-market trade

CAC

Sanofi (SAN FP) - New Sarclisa subcutaneous formulation met co-primary endpoints in the IRAKLIA phase 3 study in multiple myeloma. Sarclisa SC formulation added to Pd for the treatment of R/R MM met the co-primary endpoints in the IRAKLIA phase 3 study, demonstrating non-inferiority compared to Sarclisa IV. IRAKLIA is the first global phase 3 study to evaluate the SC administration of a cancer treatment via an OBDS. Key secondary endpoints, including very good partial response (VGPR), incidence rate of infusion reactions and C trough at cycle 2 were also achieved. The study is ongoing, and the full results will be presented at a forthcoming medical meeting. Regulatory submissions in US and EU planned for H1'25. (Sanofi)

TotalEnergies (TTE FP) - Texas refinery returns to normal operation after Tuesday coker upset. (TotalEnergies)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

China-exposed Stocks - Chinese CPI MM (Dec) 0.0% vs. Exp. 0.0% (Prev. -0.6%). Chinese PPI YY (Dec) -2.3% vs. Exp. -2.4% (Prev. -2.5%). Chinese CPI YY (Dec) 0.1% vs. Exp. 0.1% (Prev. 0.2%). (Newswires)

UCB (UCB BB) - UCB partners with Ailux Biologics, a Division of XtalPi, on Biologics AI Platform. (UCB)

BROKER MOVES

Amadeus (AMA SM) upgraded to Buy from Hold at HSBC

SMI

Roche (ROG SW) - Roche's momentum in digital pathology continues with FDA clearance on its high-volume slide scanner. The VENTANA DP 600 slide scanner, part of Roche's Digital Pathology Dx system, is now cleared by the FDA to aid in clinical diagnosis, enabling pathologists to diagnose patients using digital images. Primary diagnosis in digital pathology helps enhance diagnostic accuracy, consistency, and speed by providing high-resolution images and advanced analysis tools. (Roche)

Sika (SIKA SW) - FY (CHF): Sales 11.76bln, +4.7% Y/Y. Confirms FY outlook. Overall-proportional increase in EBITDA expected in 2024. (Newswires)

VAT (VAT SW) - Q4 (CHF): Orders 286mln, +13% Y/Y, EBITDA margin above 31%. FY Sales 942mln (exp. 947mln). (Newswires)

OTHER SWISS COMPANIES

Tecan (TECN SW) - Meets revised sales outlook for FY24. FY24 Sales CHF 934.4mln, -13% Y/Y. Reaffirmed mid-term outlook. (Newswires)

BROKER MOVES

Partners (PGHN SW) upgraded to Overweight from Equal Weight at Barclays

VAT (VACN SW) downgraded to Hold from Buy at Jefferies

SCANDINAVIA

Volvo (VOLVB SS) - CEO expects high volume production from planned Swedish battery plant a couple of years later than originally planned in 2029/2030, via Reuters. (Reuters)

BROKER MOVES

Volvo (VOLVB SS) upgraded to Overweight from Equal Weight at Morgan Stanley

US

CLOSES: SPX +0.16% at 5,918, NDX +0.04% at 21,181, DJIA +0.25% at 42,635, RUT -0.48% at 2,239

SECTORS: Communication Services -0.74%, Energy -0.1%, Utilities -0.01%, Technology +0.09%, Consumer Discretionary +0.24%, Financials +0.3%, Industrials +0.41%, Real Estate +0.44%, Consumer Staples +0.46%, Materials +0.49%, Health +0.53%.

Arm Holding (ARM), SoftBank (SFTBY/ 9984 JT) - SoftBank and Arm Holdings are reportedly considering acquiring Ampere Computing, a semiconductor firm backed by Oracle (ORCL), Bloomberg reports. Ampere, known for energy-efficient chips used by Oracle and Google (GOOG), has been exploring strategic options. Talks remain preliminary. (Newswires)

Disney (DIS) - Disney’s streaming platforms averaged 157mln global and 112mln domestic monthly active users over six months, using a transparent ad-supported audience estimation methodology, Deadline reports. The figures highlight Disney’s leadership in global streaming at scale. For context, Netflix (NFLX) said last November it had reached 70mln MAUs and Fox Corp.’s Tubi earlier this week reported 97mln. (Newswires)

Jefferies (JEF) - Jefferies Q4 profit tripled, driven by a 73% surge in investment banking revenue and 34% growth in capital markets revenue. FY24 revenue rose to USD 1.96bln, supported by strong M&A and IPO activity amid improved corporate sentiment. It reported Q4 EPS of 0.93 (exp. 0.91), and Q4 revenue of USD 1.96bln (exp. 1.77bln). Q4 investment banking revenue +73% Y/Y at USD 986.8mln; FY24 global investment banking revenue USD 86.8bln (+26% Y/Y), led by North America (which recorded a +33% increase). Q4 capital markets revenue +34% Y/Y at USD 651.7mln. Exec said it earned higher fees from deal advisory and underwriting activity remained strong. FY24 saw the company achieve improved margins and market share gains across core businesses; FY investment banking revenues rose 52% to USD 3.44bln, Equities revenues grew +40%, and Asset Management revenues +27%, driven by strategic investments and robust client demand. Declared a quarterly dividend of USD 0.40/shr. (Newswires)

Nvidia (NVDA)/ AMD (AMD) - US President Biden's administration plans additional curbs on exports of AI chips from Nvidia (NVDA) and AMD (AMD) in the final days of the administration, while it was also reported that the White House is rushing to finish cyber order after China hacks, according to Bloomberg. (Newswires)

US Dockworkers - The US dockworkers union and employers have reached a tentative agreement on a new six-year contract, potentially preventing a strike that would affect East and Gulf coast ports starting January 15th, Bloomberg reports. The deal, pending ratification, addresses concerns, notably regarding automation. (Bloomberg)

US-China - After the Biden administration launched a Section 301 investigation into China's mature process technologies, hinting at the possibility of further sanctions, Chinese foundries are cutting prices to compete for orders, while UMC and VIS pursue redirected orders amid geopolitical tensions, DigiTimes reports. (DigiTimes)

09 Jan 2025 - 06:56- EquitiesGeopolitical- Source: Newsquawk