Newsquawk Daily European Equity Opening News - 4th March 2025

ASIA

APAC stocks were pressured following the sell-off on Wall St where the S&P suffered its worst day of the year so far amid tech selling, weak ISM data and tariff confirmation. ASX 200 declined with nearly all sectors in the red and underperformance in energy after the recent drop in oil prices, while mixed data releases provided little to spur risk appetite. Nikkei 225 briefly retreated to beneath the 37,000 level amid the early broad risk-off mood and recent currency strength with Seven & I Holdings the worst hit after reports it is to reject Couche-Tard’s buyout proposal. Hang Seng and Shanghai Comp were initially pressured after US President Trump signed an order to raise tariffs on China to 20% from 10% and threatened to penalise countries weakening currencies with China also mentioned when talking about weak currencies, while China's MOFCOM later responded that China will take countermeasures to firmly safeguard its rights and interests in response to US tariffs. Nonetheless, the downside in the mainland was limited as China’s annual “Two sessions” gathering began in Beijing with participants anticipating China to outline stimulus plans, while confirmation of the tariffs and China's immediate retaliation did little to derail the resilience in the mainland.

EUROPEAN CLOSES

CLOSES: DAX: +2.61% at 23,139, FTSE 100: +0.70% at 8,871, CAC 40: +1.09% at 8,200, Euro Stoxx 50: +1.34% at 5,540, AEX: +0.92% at 930, IBEX 35: +0.19% at 13,373, FTSE MIB: +1.07% at 39,069, SMI: +1.39% at 13,185, PSI: +0.17% at 6,812

SECTORS: Industrials 2.17%, IT 1.81%, Financials 1.40%, Materials 1.08%, Telecoms 1.03%, Consumer Stpl 0.83%, Healthcare 0.69%, Energy 0.32%, Consumer Disc 0.26%, Utilities -0.90%

FTSE 100

OTHER UK COMPANIES

Canal+ (CAN LN) – New agreement with French Cinema; commits to EUR 480mln investment over three years. (Newswires)

BROKER MOVES

HSBC (HSBA LN) upgraded to Overweight from Equal Weight at Barclays

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

Lloyds (LLOY LN) upgraded to Overweight from Equal Weight at Morgan Stanley

DAX

Continental (CON GY) – FY (EUR): Adj. EBIT 2.7bln (exp. 2.51bln, prev. 2.5bln Y/Y). Sales 39.7bln (exp. 40.09bln, prev. 41.4bln Y/Y). Proposes dividend at EUR 2.50/shr (exp. EUR 2.25/shr, prev. 2.20/shr Y/Y). Outlook 2025: Sales at around 38-41bln (exp. 41.06bln), Adj. EBIT margin 6.5-7.5%. Notes that co. has set up group sectors with “clear structures” that are “ready for independence” ahead of the spin-off of its automotive division. (Newswires) Shares -3.8% in pre-market trade

Fresenius (FRE GY) – Co. announced its intention to reduce its stake in Fresenius Medical Care (FME GY) from 32.2% to no less than 25% plus one share; to remain the largest shareholder of the co. Intends to sell approx. 10.5mln shares. Will use proceeds in line with the co’s strategy. (Newswires)

TAG Immobilien (TEG GY) - Plans to issue EUR 325mln in unsecured, unsubordinated convertible bonds due 2031. (Newswires)

Mercedes (MBG GY) - Agrees cost cutting programme including job cuts with the board, via WiWo. (WiWo)

OTHER GERMAN COMPANIES

Evotec (EVT GY) - Received USD 20mln payment to further progress research with Bristol Myers Squibb (BMY). (Newswires)

BROKER MOVES

CAC

Airbus (AIR FP) - Airbus has warned that Australia’s dependence on China for aviation fuel is risky, urging the government to invest in domestic production of sustainable aviation fuel. Airbus suggests Australia utilise its agricultural feedstocks to reduce reliance on foreign fuel amid rising tensions with Beijing.

Thales (HO FP) – FY (EUR): Sales 20.58bln (co. consensus 20.13bln), EBIT 2.42bln (co. consensus 2.35bln). To propose a dividend of EUR 3.70/shr (prev. EUR 3.40/shr). 2025: Adj. EBIT margin of between 12.2-12.4%, +40-60bps Y/Y (exp. 12.5%). (Newswires)

Vinci (DG FP) - Won contract to upgrade a water supply network in Uganda, for EUR 92.4mln. (Newswires)

OTHER FRENCH COMPANIES

BROKER MOVES

PAN EUROPE

Agricultural Names - US President Trump says to the great farmers of the US: Get ready to start making a lot of agricultural product to be sold inside of the United States. Tariffs will go on external product on April 2nd. In response, China will impose a 10% tariff on US soybean shipments starting March 10th, as part of broader countermeasures against the US. Its actions target a range of US agricultural products, including corn, beef, and chicken. (Truth/Newswires)

Bilfinger (GBF BB) – FY (EUR): Orders 5.3bln +2% Y/Y, Revenue 5bln, +2% Y/Y. Outlook 2025: Revenue 5.1-5.7bln. (Newswires)

Banco BPM (BAMI IM) – CEO said “we estimate that we will launch an offer for Anima (ANIM IM) from the second half of March”. (Sole 24 Ore)

Bawag (BAWG AV) – FY (EUR): Core Revenue 450mln (exp. 436mln), Net Income 240mln (exp. 193mln). (Newswires)

Energy Names - OPEC+ confirms decision to proceed with supply hikes; could pause or reverse decision based on market conditions. Sees health market fundamentals and positive outlook. (Newswires)

InPost (INPST NA) – Successfully refinances existing debt; refinance with PLN 2.7bln RCF. (Newswires)

Tariff/Trade-Sensitive Names - US President Trump said reciprocal tariffs start April 2nd; tariffs on Canada and Mexico to start Tuesday; no room left for deal on tariffs on Mexico and Canada. Reiterated the plan to double China tariff to 20% from 10% and added that they will penalise countries weakening currencies with tariffs. (Truth/Newswires)

Luxury – Prada (1913 HK) is considering a bid for Jimmy Choo, according to Corriere Della Sera. (Corriere Della Sera)

OMV (OMV AV), ADNOC - The UAE's Adnoc and Austria's OMV have agreed to merge their chemical units, Borealis and Borouge, to create a USD 60bln chemicals giant. The deal includes purchasing Nova Chemicals for USD 13.4bln, marking a significant step in their strategy to expand in the growing industry, particularly in the energy transition, Bloomberg reports. (Bloomberg)

Ukraine-sensitive/Defence Names - US President Trump to hold Ukraine meeting on next steps including possible aid freeze, according to Axios. Thereafter, US President Trump posted an AP article on Truth titled "Ukraine’s Zelensky says end of war with Russia is ‘very, very far away’"; adds "this is the worst statement that could have been made by Zelensky, and America will not put up with it for much longer". Later, Trump added he has not talked about suspending military aid to Ukraine. (Axios/Truth) Defence names are mixed in the pre-market; BAE Systems (BA/ LN) +3%; Leonardo (LDO IM) -0.9%

BROKER MOVES

SMI

ABB (ABBN SW) – Co. to invest USD 120mln to expand in US manufacturing. (Newswires)

Lindt (LISN SW) – FY (CHF): EBIT 884.2mln (exp. 879.1mln), FCF 635.3mln, +33.2% Y/Y. Proposed dividend to CHF 1500/shr per registered share, +7.1% Y/Y. Affirms guidance. (Newswires)

Logitech International (LOGN SW) - Logitech announced that COO Prakash Arunkundrum transitioned to President of Logitech for Business on March 3rd, while retaining his Group Management Team role. The company will not appoint a new COO for now.

Sika (SIKA SW) – Fully acquired HPS North America; no terms. (Newswires)

VAT (VACN SW) – FY (CHF): Net Revenue 942mln (exp. 948.2mln).Guides Q1 Revenue 275-295mln. (Newswires)

OTHER SWISS COMPANIES

Kuehne und Nagel International (KNIN SW) - FY (CHF): Revenue 24.80bln, EBIT 1.65bln. Proposed dividend of CHF 8.25/shr. Completed accretive acquisitions in North America and Asia. (Newswires)

BROKER MOVES

SCANDINAVIA

BROKER MOVES

Subsea7 (SUBC SS) upgraded to Overweight from Equal Weight at Barclays

US

CLOSES: SPX -1.76% at 5,850, NDX -2.20% at 20,426, DJI -1.48% at 43,191, RUT -2.81% at 2,102

SECTORS: Technology -3.52%, Energy -3.51%, Consumer Discretionary -2.31%, Materials -2.09%, Industrials -1.45%, Communication Services -1.35%, Financials -0.86%, Utilities +0.19%, Health +0.35%, Consumer Staples +0.61%, Real Estate +0.77%.

Citigroup (C) - Citigroup almost transferred USD 6bln to a customer's account due to a staffer mistakenly pasting the account number into the dollar amount field, Bloomberg reports. The error, which occurred in April, inflated the transfer by over a thousand times but was detected the following business day. The incident followed another blunder in the same month where USD 81tln was accidentally credited to a different client.

Big Bank Mergers - The FDIC proposed rescinding a 2024 policy that increased scrutiny of large bank mergers, WSJ reports. The prior rules will be reinstated temporarily while new guidelines are developed. The 2024 policy required stricter financial stability analysis and potential public hearings for mergers exceeding USD 50bln in assets. FDIC acting chair Travis Hill prioritised the rollback.

American Express (AXP) - American Express raised its quarterly dividend +17% to 0.82/shr.

Logitech International (LOGI) - Logitech announced that COO Prakash Arunkundrum transitioned to President of Logitech for Business on March 3rd, while retaining his Group Management Team role. The company will not appoint a new COO for now.

Illumina (ILMN) - China has banned the import of Illumina's gene-sequencing machines in retaliation for the US doubling tariffs on Chinese goods. The move is part of broader trade measures, including adding 10 more US companies to China's "unreliable entity list." The impact on existing machines in China remains unclear.

Walgreens Boots Alliance (WBA) - Walgreens Boots Alliance is nearing a USD 10bln deal with Sycamore Partners to go private, ending its public status since 1927, WSJ reports. The agreement could be finalised by Thursday, barring delays or complications.

04 Mar 2025 - 06:59- Research Sheet- Source: Newsquawk