Newsquawk Daily European Equity Opening News - 9th June 2025

ASIA

APAC stocks traded mostly higher following last Friday's gains on Wall St, but with trade somewhat quietened amid the holiday closure in Australia and as participants digested mixed Chinese data. Nikkei 225 reclaimed the 38,000 level after last week's currency weakness and with upward revisions to Japanese GDP data. Hang Seng and Shanghai Comp gained amid some trade-related optimism with officials from the US and China set to meet in London today, although the gains in the mainland are capped as participants also digested key data releases which showed a continued deflation and mostly softer trade data.

Chinese Data - Trade Balance (CNY) (May) 750B (Prev. 690B); Imports YY (CNY) (May) -2.1% (Prev. 0.8%); Exports YY (May) 4.8% vs. Exp. 5.0% (Prev. 8.1%). Inflation: CPI YY (May) -0.1% vs. Exp. -0.2% (Prev. -0.1%); CPI MM (May) -0.2% vs. Exp. -0.2% (Prev. 0.1%); PPI YY (May) -3.3% vs. Exp. -3.2% (Prev. -2.7%)

EUROPEAN CLOSES

CLOSES: Euro Stoxx 50 +0.32% at 5,428, DAX -0.12% at 24,295, FTSE 100 +0.30% at 8,838, CAC 40 +0.19% at 7,805, AEX +0.48% at 930, IBEX 35 +0.31% at 14,248, FTSE MIB +0.55% at 40,602, SMI +0.39% at 12,366, PSI +0.44% at 7,454

SECTORS: Energy 1.00%, Healthcare 0.98%, IT 0.81%, Financials 0.78%, Utilities 0.11%, Consumer Disc -0.01%, Consumer Stpl -0.08%, Industrials -0.23%, Telecoms -0.43%, Materials -0.53%

FTSE 100

Anglo American (AAL LN) - Anglo American is set to begin the formal sale process for its 85% stake in De Beers despite a weak diamond market that could see the business valued at less than half its USD 4.9bln book value, FT reports. Two former De Beers CEOs are preparing bids but have yet to secure financing, FT said, adding that the sale could extend into 2026 depending on market conditions. (FT)

Rio Tinto (RIO LN) - Rio Tinto is seeking a multibillion-dollar government bailout for its Tomago aluminium smelter amid rising energy costs, AFR reports. Discussions focus on the smelter’s 2026-2029 electricity contract and federal production tax credits. (AFR)

UK Spending - UK Chancellor Reeves is to announce a transformative GBP 86bln in the Spending Review to turbo-charge the fastest growing sectors, from tech and life sciences to advanced manufacturing and defence, as part of the government’s plan to invest in Britain’s renewal through the Modern Industrial Strategy. (Newswires) 

OTHER UK COMPANIES

Frasers (FRAS LN) / Revolution Beauty (REVB LN) - Frasers is exploring a bid for Revolution Beauty, according to Sky News citing sources. (Sky News)

BROKER MOVES

Aviva (AV/ LN) downgraded to Market Perform from Outperform at Keefe Bruyette

DAX

DHL (DHL GY) - Unifor members at DHL Express Canada have been locked out after refusing to accept concessions. (Newswires)

Porsche (PAH3 GY) - Co. is considering implementing some final assembly in the US to ease the tariff hit, it is considering shifting certain steps from Germany, according to Bloomberg. Co. spokesperson says no plans for final assembly in US. (Newswires)

OTHER GERMAN COMPANIES

Tag Immobilien (TEG GY) - 31.3% of shareholders opt for a Scrip dividend, to be paid on 17 June 2025. (Newswires)

BROKER MOVES

Allianz (ALV GY) downgraded to market Perform from Outperform at Keefe Bruyette

CAC

BNP Paribas (BNP FP) - Co. to cut 200 branches by end of 2026 to kick off retail revamp, via Bloomberg. Headcount in BNP's Branch network expected to decline by 5% a year. (Bloomberg)

Renault (RNO FP) - Renault is in talks with the French defense ministry about producing drones in Ukraine, a company spokesperson said. Discussions have occurred, but no decision has been made yet, Bloomberg reports. (Bloomberg)

Regeneron (REGN), Sanofi (SAN FP) - Regeneron and Sanofi reported positive Phase 4 DISCOVER trial results for Dupixent in 120 patients with skin of colour and moderate-to-severe atopic dermatitis, with 76% achieving 75%+ disease severity improvement at 24 weeks and a 53% drop in post-inflammatory hyperpigmentation. (Newswires)

Total Energies (TTE FP) - Co. reportedly plans stake sales in US and Spain renewables, via Bloomberg. (Bloomberg)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Alcohol Names - Chinese Commerce Ministry says, on brandy, French companies and relevant associations have voluntarily submitted an application for a price undertaking to China. Chinese investigators have reached an agreement with the Chinese side on the core terms of the price pledge and plan to issue a final announcement by July 5. (Newswires)

Banco BPM (BAMI IM) - CEO said on Class CNBC that the Co. has no plans to pay an extraordinary dividend but could consider one if its CET1 ratio rises above 13%. (Class CNBC)

Ferrovial (FER SM) - Co. acquired a 5.06% stake in Canada's 407 ETR; to invest CAD 1.99bln. (Newswires)

Italian Banking - Novo Banco is reportedly said to have gotten a bid from BPCE and CaixaBank (CABK SM), via Bloomberg. Sources also suggest that the Bank is evaluating selling shares through an IPO - a prelim decision could be made as early as this week. (Bloomberg)

Mediobanca (MB IM) - ENPAM has increased its stake in the Co. to 1.98% (prev. 1%), according to Reuters citing several Italian newspapers. (Newswires)

Trade - US President Trump said they are very far advanced on a China deal ahead of high-level talks in London on Monday. (Newswires)

Telefonica (TEF SM) / Vodafone (VOD LN) - Telefonica and Masorange are reportedly to hold early talks on Vodafone Spain, according to Bloomberg. (Bloomberg)

BROKER MOVES

Generali (G IM) upgraded to Market Perform from Underperform at Keefe Bruyette

SMI

UBS (UBSG SW) - Co. strongly disagrees with the extreme increase in capital requirements that has been proposed UBS supports in principle most of the regulatory proposals the Swiss Federal Council published today. These changes would result in capital requirements that are neither proportionate nor internationally aligned. Proposals would require UBS to fully deduct investments in foreign subsidiaries from its CET1 capital. Incremental CET1 capital of around USD 24bln required at UBS would result in a CET1 capital ratio at the UBS Group of around 19%. Additional capital of USD 24bln would be in addition to the previously communicated incremental capital of ~USD 18bln UBS will have to hold as a result of the acquisition of Credit Suisse in order to meet existing regulations. As a result, UBS would be required to hold ~USD 42bln in additional CET1 capital in total. Reaffirms capital return intentions for 2025. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

Lindt (LISP SW) upgraded to Neutral from Underperform at BNP Paribas

SCANDINAVIA

Novo Nordisk (NOVOB DC) - Eli Lilly's (LLY) sales of its obesity and diabetes drug Mounjaro rose 60% in India in May versus April, Bloomberg reports. (Bloomberg)

BROKER MOVES

Huthamaki (HUH1V FH) downgraded to Hold from Buy at Jefferies

US

CLOSES: SPX +1.03% at 6,000, NDX +0.99% at 21,761, DJI +1.05% at 42,763, RUT +1.66% at 2,132

SECTORS: Energy +1.98%, Communication Services +1.92%, Consumer Discretionary +1.66%, Financials +1.25%, Health +0.92%, Industrials +0.89%, Technology +0.79%, Utilities +0.43%, Real Estate +0.34%, Materials +0.25%, Consumer Staples +0.19%

Broadcom (AVGO) - Cautious mention in the WSJ, which said that while the semiconductor company benefits from demand for custom AI chips, investors may be overestimating its growth potential despite strong sales linked to AI.

Boeing (BA) - Boeing is preparing to resume deliveries of its 737 MAX aircraft to Chinese customers after a halt in April caused by US-China tariff tensions, Reuters reports. A new 737 MAX for Xiamen Airlines recently departed Seattle on its way to China via Hawaii. The US and China agreed in May to roll back most tariffs for 90 days. China accounts for about 10% of Boeing’s commercial backlog, with around 50 jets planned for Chinese carriers this year. (Newswires)

Eli Lilly (LLY) - Eli Lilly's sales of its obesity and diabetes drug Mounjaro rose 60% in India in May versus April, Bloomberg reports. Patient numbers may have doubled in May, with demand expected to grow steadily. (Newswires)

Geely (GELYF) - Geely Chairman said the global auto industry faces "serious overcapacity," Reuters reports. The company will not build new plants or expand production at existing facilities, Chair said. (Reuters)

Meta Platforms (META) - Meta Platforms is in talks to invest over USD 10bln in AI startup 'Scale AI', Bloomberg reports. The deal, if completed, would rank among the largest private company funding rounds ever. (Newswires)

09 Jun 2025 - 06:49- Research Sheet- Source: Newsquawk