
Newsquawk Daily European Equity Opening News - 21st February 2025
ASIA
APAC stocks traded mostly higher albeit with mixed price action seen following the subdued handover from Wall St where stocks declined amid geopolitical uncertainty, disappointing data and weak Walmart guidance, while participants in the region digested earnings releases and central bank commentary. ASX 200 marginally declined amid a deluge of earnings releases and after Australia's flash manufacturing PMI improved but remained in contraction territory, while RBA Governor Bullock reiterated a cautious approach to further rate cuts. Nikkei 225 swung between gains and losses with initial pressure owing to recent currency strength and after mostly firmer-than-expected CPI data, although the index then rebounded and the yen weakened amid comments from BoJ Governor Ueda who said if markets make abnormal moves, they stand ready to respond nimbly, such as through market operations. Hang Seng and Shanghai Comp are positive with notable outperformance in the Hong Kong benchmark which was led by a tech surge as Alibaba shares climbed by a double-digit percentage post-earnings, while the PBoC and Chinese Premier Li recently pledged efforts to smooth financing and stimulate consumption, respectively.
EUROPEAN CLOSES
CLOSES: DAX: -0.41% at 22,341, FTSE 100: -0.57% at 8,663, CAC 40: +0.15% at 8,123, Euro Stoxx 50: -0.06% at 5,459, AEX: -0.39% at 939, IBEX 35: +0.35% at 12,975, FTSE MIB: -0.26% at 38,249, SMI: +0.07% at 12,802, PSI: +0.16% at 6,685
SECTORS: Utilities 0.20%, Consumer Disc 0.07%, Materials 0.01%, Healthcare -0.18%, Consumer Stpl -0.21%, Financials -0.27%, Industrials -0.28%, Energy -0.35%, IT -0.37%, Telecoms -0.42%
FTSE 100
abrdn PLC (ABDN LN) - Abrdn is in advanced talks with Citic Bank to launch a China-based asset management JV, aiming for a majority stake, Reuters reports. The move aligns with improved UK-China relations and contrasts with Western firms reducing China operations. Regulatory approval is expected this year. (Reuters)
Standard Chartered (2888 HK) - FY (USD) NII 10.4bln (exp. 9.56bln), Pretax Profit 6bln (exp. 6.50bn), NIM 1.9% (exp. 1.71%). Co. announces USD 1.5bln buyback. Chair prepares to step down after this year's AGM. 2025: Growth exp. to be below 5-7% range at CCY excl. notable items. Continues to operate dynamically within full 13-14% CET1 ratio target range. The announced buyback is exp. to reduce CET1 ratio by approx. 61bps. (Newswires)
UK Consumers - UK GfK Consumer Confidence (Feb) -20.0 vs. Exp. -22.0 (Prev. -22.0); "it's no surprise that consumer views on the general economic situation are still lower than 12 months ago, suggesting that people don't expect the economy to show any dramatic signs of improvement soon", says a director at NIQ GfK. (Newswires)
OTHER UK COMPANIES
Ferrexpo (FXPO LN) - Notes of a media announcement in Ukraine re. a potential claim to high anti-corruption court. Has not received any formal notification of such a claim. (Newswires)
BROKER MOVES
DAX
OTHER GERMAN COMPANIES
BROKER MOVES
CAC
Air Liquide (AI FP) - Q4 (EUR): Revenue 6.92bln (exp. 6.84bln). FY: Net Profit 3.31bln (co. consensus 3.34bln). Proposed dividend of EUR 3.30/shr, +13.7% Y/Y. Co. says performance positions it very favourably to achieve its objectives by the end of 2025. Outlook: Sees margin excl. energy impact at +460bps from 2022-26 (prev. +320bps to end-2025). Says is confident to further increase its op. margin and deliver recurring net profit growth at constant exchange rates. (Newswires)
Renault (RNO FP) - Japan is reportedly to court Tesla (TSLA) on Nissan (7201 JT) investment in exchange for US factories, according to FT. (FT)
TotalEnergies (TTE FP) - Guyana energy minister close to signing production-sharing agreement with TotalEnergies (TTE FP), Qatar Energy and Petronas for exploring offshore block; Block won by Exxon Mobil-led group (XOM) in bidding round still in terms negotiation. (Newswires)
OTHER FRENCH COMPANIES
BROKER MOVES
Airbus (AIR FP) downgraded to Hold from Buy at Jefferies
PAN EUROPE
Defence Names - Ukraine President Zelensky says he had a productive meeting with US Envoy Kellogg and discussed security guarantees; says Ukraine is ready for security agreement with US President Trump. Ukraine is ready for strong and useful agreement with US on investments and security. Ukraine offered the fastest and constructive way for this. Ukraine is ready for 24/7 work on this. Ukrainian President Zelensky says meeting with US envoy Kellogg restores hope, adds a strong deal with the US is needed and he ordered work to be done on it fast and thoughtfully. (Newswires)
Ferrari (RACE IM) - Co. plans to boost dividend by 22% to EUR 2.986/shr. (Newswires)
PostNL (PNL NA) - Co. requests Dutch Government to provide temporary financial contribution towards postal service. Requests financial contribution to offset USO costs of EUR 30mln in 2025 and EUR 38mln in 2026. The Dutch Government has turned down the co's request for temporary financial aid, according to ANP News. (Newswires / ANP News)
Stellantis (STLAM IM / STLAP FP) - Stellantis has reportedly paused development of the next-generation Jeep Compass and halted operations at its Brampton, Ontario, plant, Bloomberg reports. The automaker is reassessing its North American product strategy, but maintains prior investment commitments for the factory. The move has drawn criticism from unions citing industry instability. (Bloomberg)
Leonardo (LDO IM) - CEO says co. still feels urgency in finding solutions for aerostructures unit, is to be discussed at the plan update on 11th March. (Newswires)
UniCredit (UCG IM) - Co. brings forward vote on Banco BPM bid to March 27th (prev. April 10). Co. increases the max amount of shares to be issued to finance Banco BPM buyout offer to 287mln (prev. 266mln Y/Y). (Newswires)
BROKER MOVES
Repsol (REP SM) upgraded to Equal Weight from Underweight at Morgan Stanley
SMI
Sika (SIKA SW) - FY (CHF): Op. Profit 1.7bln (prev. 1.54bln Y/Y), Proposed dividend/shr 3.60 (prev. 3.30 Y/Y). Outlook for 2025: Proportional increase in EBITDA and rise in EBITDA margin to 19.5-19.8%. Expected sales increase in local currencies of 3-6%. (Newswires)
UBS (UBSG SW) - Lawmakers in Switzerland are planning a permanent liquidity backstop; essentially asking lenders to hold more capital to make them safer, according to Reuters citing sources. (Reuters)
OTHER SWISS COMPANIES
BROKER MOVES
SCANDINAVIA
BROKER MOVES
US
CLOSES: SPX -0.43% at 6,118, NDX -0.48% at 22,068, DJIA -1.01% at 44,177, RUT -0.91% at 2,262
SECTORS: Financials -1.55%, Consumer Discretionary -1.10%, Consumer Staples -0.96%, Industrials -0.68%, Communication Services -0.68%, Materials -0.26%, Technology -0.06%, Utilities +0.02%, Health +0.55%, Real Estate +0.69%, Energy +0.97%.
Akamai Technologies (AKAM) - Shares fell by over 7% in extended trading on soft guidance. Q4 adj. EPS 1.66 (exp. 1.51), Q4 revenue USD 1.02bln (exp. 1.02bln), Q4 operating margin 29% (exp. 27.3%); Q4 security revenue USD 534.6mln (exp. 534.5mln), Q4 delivery revenue USD 317.8mln (exp. 313.4mln), Q4 compute revenue USD 167.5mln (exp. 167.2mln). Sees Q1 adj. EPS between 1.54-1.59 (exp. 1.61), and sees Q1 revenue between USD 1.00-1.02bln (exp. 1.04bln). For the FY, sees adj. EPS between 6.00-6.40 (exp. 6.82), and revenue between USD 4.00-4.20bln (exp. 4.25bln).
Booking Holdings (BKNG) - Shares rose 4% in extended trading after top- and bottom-line beats, where quarterly bookings topped expectations. Q4 adj. EPS 41.55 (exp. 36.03), Q4 revenue USD 5.47bln (exp. 5.18bln), Q4 adj. EBITDA margin 33.8% (exp. 31.8%). Q4 gross bookings USD 37.2bln (exp. 34.47bln). Q4 airline tickets sold 14mln (exp. 12.66mln); Q4 advertising & other revenue USD 271mln (exp. 268.7mln). Dividend is to be raised +10%, and it announced a USD 20bln share repurchase authorisation. Exec sees healthy demand for leisure travel globally in FY25, remains confident in long-term outlook for the travel industry. Sees Q1 revenue growth of +2-4% (exp. USD 4.69bln), sees Q1 adj. EBITDA between USD 800-850mln, sees Q1 room night growth of +5-7%, with gross bookings +5-7%. Sees FY25 EPS growth of low double digits (mid-teens in constant FX), and sees FY25 revenue growth of mid single digits, with FY25 gross bookings up mid single digits, and FY25 adj. EBITDA margin growth of just under 100bps.
Newmont Corporation (NEM) - Newmont exceeded Q4 profit estimates, driven by higher gold prices and a +9.2% rise in production to 1.9mln ounces. Gold prices averaged USD 2,643/oz (+31.9% Y/Y); costs fell 1.5%. It reported Q4 EPS 1.40 (exp. 1.08). Sees attributable production for 2025 at around 5.9mln gold ounces; Gold AISC for total portfolio expected to be USD 1,630/oz, including production from non-core assets for Q1 2025. It also will continue asset sales to reduce its USD 5.31bln debt.
Live Nation (LYV) - Q4 adj. operating income USD 157.3mln (exp. 141mln), Q4 revenue USD 5.68bln (exp. 5.63bln). Q4 concerts revenue USD 4.58bln (exp. 4.56bln), Q4 ticketing revenue USD 841.1mln (exp. 823.7mln), Q4 sponsorship and advertising revenue USD 281.2mln (exp. 287.8mln). It noted USD 23bln in FY24 revenue, with concert attendance +4% to 151mn, sponsorship AOI +13%; Ticketmaster's Q4 revenue grew +14%. It expects further growth in FY25, citing a strong concert pipeline and increased artist investment. Sees FY25 revenue around USD 19bln (exp. 23.11bln).
Meta Platforms (META) - Meta reduced employee stock awards by around 10%, prioritising AI investment, with 2025 capex projected at between USD 60-65bln, FT reports. The company also raised executive bonus targets to 200% of base salary. Meanwhile, Reuters notes that Meta’s Q1 sales outlook remains uncertain despite strong Q4 results and ongoing cost-cutting measures, including staff reductions.
21 Feb 2025 - 06:58- Geopolitical- Source: Newsquawk
Subscribe Now to Newsquawk
Click here for a 1 week free trial
Newsquawk provides audio news and commentary for over 15,000professional traders and brokers worldwide. Services include:
- Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
- Teams of analysts covering equities, fixed income, FX, energy, and metals markets
- Real-time scrolling news service with instant analysis
- Daily and weekly pre-market research and calendars
- Video updates covering near-term key risk events & primary trading themes
- One-to-one chat with our expert analysts