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
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE