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StreetAccount Summary - Europe Pre-Open: FTSE (1.4%), DAX (2.2%) CAC (2.1%)

Feb 03 ,2025

  • Synopsis

    • European equity markets set to open sharply lower as a new month of trading gets underway. Asia equities substantially lower Monday although many trading off their troughs. Export names lead broad-based Asia selloff on tariff reverberations. On Saturday, Trump carried out his threat to impose 25% tariffs on Mexico and Canada, and 10% tariffs on China. All three vowed to respond with Canada announcing retaliatory tariffs. Situation remains fluid with Trump also repeating promise to hit EU and impose tariffs on products such as chips, industrial metals and energy. EU has warned it would retaliate.

    • Recall that Europe's leading equity markets posted fresh all-time highs last week. STOXX600 posted its fifth consecutive weekly rise, up ~1.8%, and posted ~8% gain in January. Similar performance for the regional indexes, with Germany's DAX and Britain's FTSE both rising to records last week, with the latter also posting the best month in over two years in a week when the Nasdaq 100 suffered a daily drop of 3% due to the emergence of low-cost AI platform DeepSeek.

    • In France, Prime Minister Francois Bayrou will today attempt to force through his government's budget without a vote using a controversial parliamentary mechanism, which might lead to a no-confidence motion from the left, notes AFP.

    • European macro data releases out today include Italy, Norway, Spain, Sweden, Switzerland Jan manufacturing PMI and final reads for Eurozone, France, Germany, UK, Italy Jan preliminary CPI, Spain Jan unemployment change, Netherlands Jan preliminary CPI, Austria Jan preliminary CPI, unemployment rate, Eurozone Jan preliminary CPI

    • In central banks, ECB's Donnery panellist at 18:30CET at event at the Embassy of Ireland in London. Elsewhere, UK PM Starmer to attend a session of the informal meeting of the EU leaders in Brussels; EU's von der Leyen participates in the informal EU leaders' retreat. NATO's Rutte also invited. Informal EU ministerial meeting for competition (through Tue) and informal meeting of trade ministers of the EU states (through Tue). Norway's Minister of Justice and Public Security Mehl opens (at 9:00CET) DNB conf on financial security. France, Italy, Spain Jan new car registrations.

  • Politics/Macro/World News

    • Bank of England expected to cut interest rates again as UK economy stagnates -- FT

    • Trump says EU tariffs coming 'soon' but 'out of line' UK might be spared -- Telegraph

    • EU Warns US It Will Retaliate If Trump Imposes Tariffs on Goods -- Bloomberg

    • France's PM prepares to force budget through parliament -- France24

    • EU leaders to huddle on defence against Russia and handling Trump -- Reuters

    • France Jan new passenger car registration (6.2%) y/y to 114,673 vehicles -- PFA

    • Netherlands Jan Preliminary CPI +3.3% y/y vs consensus +3.5% and prior +4.1%

    • Finland Jan preliminary HICP +1.6% y/y vs consensus +1.3% and prior +1.6%

  • Top company news

    • Earnings/updates

      • IBE.SM (Iberdrola) -- reports provisional Q4 total electricity production 31,545 GWh, (26.8%) y/y

      • BAER.SW (Julius Baer Group) -- reports FY adj net income CHF1.05B vs consensus CHF922.5M; keeps divi unchanged and updates on cost programme

      • KBCA.BB (KBC Ancora) -- reports H1 EPS €0.96 vs year-ago €0.95

    • M&A

      • IDR.SM (Indra Sistemas) -- Indra Group to acquire 89.68% of the share capital of Hispasat, a satellite operator and service provider, for €725M from Redeia Corporación

      • OLTH.GA (Thessaloniki Port Authority) -- releases reasoned opinion of company's board concerning the voluntary tender offer from Leonidsport B.V.

      • OLTH.GA (Thessaloniki Port Authority) -- releases financial advisor's report to company's board concerning offer from Leonidsport B.V.

      • SBX.NO (Seabird Exploration) -- signs LoI to acquire Energy Drilling Pte Ltd in an all share transaction

      • SHEL.LN (Shell Plc) -- Ampyr Energy Global buys Shell out of NSW BESS; terms unreported - Australian Financial Review

      • INFN (Infinera) -- notes major items outstanding to proceed to closing Nokia transaction include regulatory approvals from EU and Taiwan - 8-K

      • SAN.SM (Banco Santander) -- Santander chair: "The UK is not for sale" - Sunday Times

      • UCG.IM (UniCredit) -- remains focused on takeover bid for Banco BPM and stake in Commerzbank, and not Generali - Reuters, citing spokesperson

        • G.IM (Assicurazioni Generali) -- UniCredit buying into Generali - Il Sole 24 Ore

      • SIKA.SW (Sika Group) -- Sika acquires Singapore's Elmich Pte Ltd; price not disclosed

      • GET.FP (Getlink) -- acquires Associated Shipping Agencies for an undisclosed sum

      • OMV.AV (OMV) -- and ADNOC contemplate an inclusion of Nova Chemicals as part of their potential polyolefins cooperation

      • INPST.NA (InPost) -- among parties looking at Yodel - Sunday Times, citing City sources

      • NORVA.SS (Norva24 Group AB) -- Norwegian Competition Appeals Tribunal upholds Competition Authority's decision to prohibit Norva24 Group's acquisition of Vitek Miljø

      • ALMA.FH (Alma Media) -- acquires Edilex Lakitieto for an undisclosed sum

      • ASA.NO (Atlantic Sapphire) -- announces agreement to rent out Danish facility with purchase option

      • PKTM.SW (PIERER Mobility) -- PIERER Mobility announces sale of majority stake in MV Agusta

      • TIP.IM (Tamburi Investment Partners) -- considering M&A, IPO for Altipour - la Repubblica

      • SAN.FP (Sanofi) -- acquires 2.3% of its shares from L'Oréal; this transaction is part of Sanofi's share buyback program announced on 30-Jan-25.

      • North Queensland Airports sale process kicks off - Australian Financial Review

    • Healthcare

      • ROG.SW (Roche Holding) -- announces FDA approval for first companion diagnostic to identify patients with HER2-ultralow metastatic breast cancer eligible for ENHERTU

      • BAVA.DC (Bavarian Nordic A/S) -- completes its DKK 150M share buy-back program

    • Other

      • ABBN.SW (ABB Limited) -- ABB completes 2024 share buyback program launched in April 2024

      • BT.A.LN (BT Group) -- BT Group's largest shareholder Sunil Bharti Mittal to meet executive committee to discuss company strategy - FT

      • P911.GR (Porsche) -- authorizes chairman to enter talks with CFO Lutz Meschke for early termination of his appointment as member of company's executive board

      • Estimated weekend box office revenues in US, Canada $84.0M, +39.3% y/y - Box Office Mojo

      • Unilever weighing a listing of its ice cream unit on US exchange - Bloomberg

  • Key rating changes

    • Upgrades

      • ANOD.B.SS (Addnode Group) -- to buy from hold at Pareto

      • ANOD.B.SS (Addnode Group) -- short-term recommendation upgraded to hold from sell at Handelsbanken

      • KBX.GR (Knorr-Bremse) -- to buy from hold at Jefferies

      • SSAB.A.SS (SSAB) -- to buy from hold at Jefferies

    • Downgrades

      • HSBA.LN (HSBC Holdings) -- to hold from buy at Deutsche Numis

      • SDZ.SW (Sandoz Group) -- to neutral from buy at UBS

      • VITR.SS (Vitrolife) -- Vitrolife long-term recommendation downgraded to underperform from market perform at Handelsbanken

      • ANOD.B.SS (Addnode Group) -- to hold from buy at Kepler Cheuvreux

      • SWED.A.SS (Swedbank) -- to underweight from equal weight at Barclays

  • Data

    • Nikkei (2.66%) to 38520.09

    • Hang Seng (0.57%) to 20109.09

    • Shanghai Composite +0.00% to 3250.60

    • S&P futures (115.8) vs prior close of 6067.3

    • €-$ (0.0009) or (0.09%) to 1.0243

    • $-¥ +0.34 or +0.22% to 155.38

    • €-¥ +0.20 or +0.13% to 159.15

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