Feb 26 ,2025
Synopsis:
European equity markets broadly higher, with Germany +1.7%, Spain +1.6%, Belgium +1.8, Austria +2.9% among the leading gainers. European markets keying off number of earnings/updates from big firms, including the likes of DTE.GR, EOAN.GR, ABI.BB, BN.FP, ASM.NA, STLAM.IM, MUV2.GR, ADEN.SW and AML.LN.
Most European sectors ended higher, led by Banks and Insurance (both closing up 2.4%). Lot of bullish commentary on European banks, with the sector the best performer ytd so far (up ~23%) following robust Q4 results which offered a promising outlook for 2025. BofA latest fund survey also showed sector now most overweight in Europe (FT). Meanwhile, Goldman Sachs highlighted European banks have outperformed Mag 7 stocks in the US over the past three years, a trend that has gone largely unnoticed due to market concentration. Argued while current sector rally is promising, caution is warranted as potential challenges, such as peaking earnings and further rate cuts, could impact future performance.
In energy sector, BP (BP.LN) today announced its much awaited strategy reset, which was broadly as expected (cuts renewable investment and boosts oil and gas). BP sees $20B divestments by 2027, including potential proceeds from Lightsource bp and strategic review of Castrol.
US earnings calendar another bright spot with positive takeaways from some of the higher-profile reporters, including INTU, WDAY, LOW and AXON. In addition, NVDA expected to deliver another beat and raise Q after the close and put a positive spin on the DeepSeek breakthrough. Also another headline supportive for AI capex theme with META reportedly considering $200B AI data center project
Markets continue to grapple with trade-related uncertainty following latest tariff developments. On Tuesday President Trump signed executive order directing Commerce Department to probe national security implications of copper imports, potentially paving way for tariffs and export restrictions. Ukraine also in the headlines amid reports it has agreed terms with US for minerals deal. Russia and US delegations to hold technical talks in Turkey on Thursday.
Focus remains on spending implications for European defense boost. Ahead of meeting with Trump, UK PM Starmer announced boost to spending from 2027 onwards. UK Chancellor Reeves supported plan and to discuss wider financing issues with European finance ministers later this week. Analysts warned UK PM Starmer's decision to increase defense spending will mean tough choices on taxation. Starmer unexpectedly announced a rise from 2.3% to 2.5% of GDP by 2027 funded by a cut in the foreign aid budget from 0.5% to 0.3% if GDP (CityAM). However, the government's ambition to increase spending to 3% of GDP from the next parliament will require a rethink on fiscal plans. Meanwhile, German SPD indicated openness to debt-financed spending boost by either loosening rules restricting government borrowing or creating another special fund. However, CSU leader Söder ruled out a change to debt brake using outgoing parliament.
Elsewhere, EU Commission proposed cutting sustainability reporting rules for companies.
Looking ahead to tomorrow's session, another busy day for earnings with the likes of LSEG.LN, WPP.LN, SREN.SW, RR.LN, BEI.GR, AV.LN and TEF.SM among those scheduled to report.
Digest:
Sectors - STOXX Europe 600:
Outperformers:
Insurance +2.38%, Banks +2.37%, Travel & Leisure +2.07%, Construct & Mtls +2.00%, Basic Resources +1.88%, Ind Goods & Svcs +1.60%, Consumer Products and Services +1.42%, Retail +1.29%, Technology +1.21%, Chemicals +1.04%
Underperformers:
Media (2.30%), Health Care (0.54%), Telecom (0.53%), Real Estate (0.11%), Personal Care Drug and Grocery Stores +0.30%, Food, Beverage and Tobacco +0.51%, Autos & Parts +0.52%, Utilities +0.71%, Energy+0.91%
Macro:
EU
Commission proposes to cut red tape and simplify business environment - link
Germany
Germany's Social Democrats riled by Merz ahead of critical talks on coalition - Reuters
Markets
European stocks vulnerable to pullback before reaching new heights: Reuters poll
Defense
Company news:
Notable Gainers
+195.4% ATORX.SS (Alligator Bioscience SEK0.09, +0.08) -- continued positive results from Phase 2 OPTIMIZE-1 study; proposes reverse share split
+27.2% IDIA.SW (Idorsia CHF1.17, +0.25) -- Idorsia, Viatris (VTRS) alter terms of collaboration for selatogrel, cenerimod
+19.1% AG1.AV (Auto1 Group €21.36, +3.61) -- reports FY adj EBITDA €153.2M vs year-ago €109.2M; guides FY25
+13.7% UBXN.SW (u-blox Holding CHF78.50, +9.50) -- reports FY Adjusted net income (CHF43.7M) vs FactSet (CHF55.9M) [5 est, (CHF70.6)-(35.1M)]
+12.3% ADEN.SW (Adecco Group CHF25.52, +2.80) -- reports Q4 EPS €0.63 ex-items vs consensus €0.56; announces immediate priority is for the group to delever, new dividend policy
+11.3% WIE.AV (Wienerberger €33.76, +3.40) -- reports FY Operating EBITDA €760.0M vs consensus €759M
+9.3% EOLU.B.SS (Eolus Vind SEK59.50, +5.10) -- completes previously announced sale of Pome battery energy storage project; receives ~$25M milestone payment
+8.6% ABI.BB (Anheuser-Busch InBev €56.94, +4.48) -- reports Q4 EPS $0.88 ex-items vs FactSet $0.69 [11 est, $0.43-0.79]
+7.7% PETS.LN (Pets At Home Group £2.43, +0.18) -- Betaville noted takeover rumours
+6.5% FRE.GR (Fresenius €39.28, +2.37) -- reports Q4 EPS €0.69 ex-items vs consensus €0.65
+6.4% DEME.BB (DEME Group €137.00, +8.20) -- earnings
+6.2% NEL.NO (NEL ASA NOK2.39, +0.14) -- reports Q4 net income from cont ops (NOK64M) vs FactSet (NOK87.0M) [9 est, (NOK152)-(20.4M)]
+6.0% TCM.DC (TCM Group DKK74.00, +4.20) -- earnings
+5.8% SESG.FP (SES €3.85, +0.21) -- announces the proposed acquisition of Intelsat is expected to complete in H2 2025
+5.8% SESG.FP (SES €3.85, +0.21) -- reports FY net income €126M vs consensus €91M; guides FY25
+5.7% NSIS.B.DC (Novonesis DKK425.30, +23.00) -- reports FY adjusted net income €594.7M vs consensus €609.7M
+5.5% WATR.LN (Water Intelligence £3.90, +0.20) -- FY Trading Update: revenue $83.3M vs FactSet $83.6M [2 est, $81.6-85.5M]
+4.9% CTEC.LN (ConvaTec Group £2.69, +0.12) -- reports FY adjusted EPS $0.15 vs FactSet $0.15 [18 est, $0.15-0.15]
+4.8% MUV2.GR (Munich Re €554.60, +25.40) -- reports Q4 net income €979M vs consensus €920.4M; guides FY25
+4.7% ITP.FP (Interparfums €44.60, +2.00) -- reports FY net income €129.9M vs FactSet €128.6M [10 est, €121.6-139.5M]
+4.3% IPF.LN (International Personal Finance £1.32, +0.05) -- reports FY EPS 25.9p vs FactSet 20.6p [3 est, 20.0-21.4p]
+4.3% MTRO.LN (Metro Bank Holdings £0.94, +0.04) -- Metro Bank confirms sale of £584M unsecured personal loan book; transaction results in an estimated c£11M gain on sale upon completion
+4.2% PRS.SM (Promotora de Informaciones €0.34, +0.01) -- reports FY net income (€11.6M) vs FactSet (€5.7M) [4 est, (€18)-5.6M]
+3.7% GOGL.NO (Golden Ocean Group NOK107.60, +3.85) -- reports Q4 EPS $0.20 vs FactSet $0.16 [9 est, $0.11-0.24]
+3.3% CLNX.SM (Cellnex Telecom €34.02, +1.08) -- reports FY adjusted EBITDA €3.25B vs guidance €3.15-3.25B and FactSet €3.20B [18 est, €3.13-3.23B]; updates guidance for disposal of Ireland and Austria
+3.1% CHG.LN (Chemring Group £3.88, +0.12) -- FY25 outlook in line with expectations - AGM Update
+3.0% EOAN.GR (E.ON SE €12.51, +0.36) -- reports FY adj net income €2.90B vs guidance €2.80B-€3.00B and consensus €2.92B; hikes divi by 4% and guides FY25
+2.8% GF.SW (Georg Fischer CHF72.65, +2.00) -- reports FY net income CHF214M vs consensus CHF230M
+2.4% JDEP.NA (JDE Peet's €18.80, +0.43) -- reports FY underlying EPS €1.50 vs FactSet €1.55 [12 est, €1.46-1.60]; to launch multi-year share buyback of up to €1B; names Yang Xu CFO
+2.1% AIR.FP (Airbus SE €167.98, +3.42) -- Poland looking to acquire stake in Airbus -- Le Monde
+2.1% BPSO.IM (Banca Popolare di Sondrio €10.78, +0.22) -- appoints BofA and Morgan Stanley as financial advisors in connection with offer announced by BPER Banca
+2.1% JYSK.DC (Jyske Bank DKK585.00, +12.00) -- reports FY EPS DKK80.00 vs FactSet DKK80.17 [8 est, DKK77.80-82.30]
+2.0% TEG.GR (TAG Immobilien €14.05, +0.27) -- reports preliminary adjusted net income from sales in Poland €66.2M vs guidance €46-52M
+1.6% CBK.GR (Commerzbank €0.00, +0.32) -- ECB poised to approve UniCredit's investment in Commerzbank - Reuters, citing source
+1.5% GXI.GR (Gerresheimer €79.05, +1.20) -- reports Q4 EPS €1.60 ex-items vs consensus €1.58
+1.4% NYKD.NO (Nykode Therapeutics NOK2.70, +0.04) -- reports Q4 net income ($6.8M) vs year-ago ($5.3M)
+1.2% AIA.GA (Athens International Airport €8.91, +0.10) -- releases 2024 earnings and strategy update presentation
+1.2% PUBLI.NO (PUBLIC PROPERTY INVEST NOK18.78, +0.23) -- acquires 1% of shares in Terningen Invest for NOK1.6M and now hold 16.48 % of the outstanding shares; intends to offer to acquire the remaining outstanding shares in Terningen for NOK 16,000/share
+1.1% RED.SM (Redeia Corporacion €17.29, +0.18) -- reports FY net income attributable €368.4M vs FactSet €367.5M [9 est, €350-378.7M]
+1.0% BRCK.LN (Brickability Group £0.63, +0.01) -- trading update
+0.9% ASM.NA (ASM International €552.40, +5.20) -- reports Q4 adj net income €231.5M vs consensus €181.9M; too early to provide a more specific forecast due to market uncertainty and as visibility for H2 of the year is still limited
Notable Decliners
-79.4% BGBIO.NO (BerGenBio NOK2.07, -7.39) -- announces discontinuation of 1L STK11M NSCLC study and exploration of strategic alternatives
-79.4% BGBIO.NO (BerGenBio NOK2.07, -7.39) -- reports Q4 EPS (NOK0.73) vs FactSet (NOK1.09) [1 est]; initiates exploration of strategic alternatives
-23.1% GL9.ID (Glanbia €11.96, -3.38) -- reports FY adj EPS $1.40 vs FactSet $1.40 [9 est, $1.34-1.51]; expects FY 2025 adj EPS to be in range of $1.24 to $1.30; FactSet $1.44; to exit the Benelux Direct-to-Consumer e-commerce business, Body & Fit, and the weight management brand, SlimFast.
-19.7% SEE.LN (Seeing Machines £0.03, -0.01) -- H1 Trading Update: revenue $25.3M vs year-ago $25.7M
-18.4% MEDX.SW (medmix CHF11.48, -2.48) -- reports FY adjusted net income CHF33.4M vs FactSet CHF12.8M [2 est, CHF8.7-16.8M]
-17.0% WLN.FP (Worldline €6.23, -1.26) -- announces appointment of Pierre-Antoine Vacheron as CEO
-17.0% WLN.FP (Worldline €6.23, -1.26) -- reports FY Normalized EPS €1.53 vs consensus €1.68
-12.0% AML.LN (Aston Martin Lagonda Global Holdings £1.00, -0.13) -- reports FY EPS (34.8p) vs FactSet (31.1p) [11 est, (39.3)-(26.1p)]
-10.9% WKL.NA (Wolters Kluwer €155.75, -18.70) -- CEO Nancy McKinstry announces retirement in February 2026
-10.9% WKL.NA (Wolters Kluwer €155.75, -18.70) -- reports FY EPS €4.97 ex-items vs FactSet €4.94 [11 est, €4.88-5.20]
-8.6% KAMBI.SS (Kambi Group SEK109.70, -10.30) -- reports Q4 EPS €0.17 vs FactSet €0.14 [3 est, €0.11-0.19]
-8.3% SAX.GR (Stroeer SE & Co. KGaA €0.00, -4.80) -- sale of its multi-billion-euro outdoor advertising business suffers setback - Reuters
-7.6% EWIND.NO (Edda Wind NOK16.50, -1.35) -- earnings
-6.3% LUMEN.SS (LumenRadio SEK93.00, -6.20) -- earnings
-6.3% ODHN.SW (Orascom Development Holding CHF5.32, -0.34) -- LPSO Holding announces provisional notice of final result of the public tender offer for all shares of Orascom Development Holding AG
-6.2% HIK.LN (Hikma Pharmaceuticals £21.44, -1.42) -- reports FY core EPS $224c vs consensus $220.7c; hikes divi by 11% and guides FY25
-5.9% HMSO.LN (Hammerson £2.74, -0.17) -- reports FY adj EPS 19.9p vs FactSet 19.4p [10 est, 18.5-20.2p]
-5.6% DECB.BB (Deceuninck €2.27, -0.14) -- earnings
-5.1% TRCS.LN (Tracsis £3.80, -0.20) -- H1 Trading Update: expects revenue £36.3M vs year-ago £35.5M; revenue and EBITDA margin expected to increase in H2
-4.3% BTS.B.SS (BTS Group SEK291.00, -13.00) -- earnings
-4.0% STLAM.IM (Stellantis €12.98, -0.55) -- broadly weak H2 print and downbeat guidance for FY25; process to appoint the new permanent CEO is well underway and will be concluded within the first half of 2025.
-4.0% TXT.IM (TXT e-Solutions €40.70, -1.65) -- earnings
-3.7% NOVN.SW (Novartis CHF97.73, -3.69) -- holder Emasan offering 26.5M Novartis shares at CHF98.25/share - Reuters, citing terms of offering
-3.3% DTE.GR (Deutsche Telekom €34.23, -1.14) -- reports Q4 adj EPS €0.48 vs consensus €0.45; guides 2025 adj EPS of around €2.00 vs FactSet €2.07 [16 est, €1.89-2.28]
-3.0% IMPN.SW (Implenia CHF36.70, -1.15) -- earnings
-2.9% OMDA.NO (Omda AS NOK36.00, -1.00) -- reports Q4 net income (NOK32.3M) vs year-ago NOK5.6M
-2.9% SPM.IM (Saipem €2.31, -0.07) -- earnings
-2.6% ADOC.FP (Adocia €4.60, -0.13) -- reports Q4 revenue €9.3M vs year-ago €0.2M
-2.5% HOME.SM (Neinor Homes €15.70, -0.40) -- reports FY adj. net income €68.8M vs FactSet €65.4M [7 est, €62-68.6M]
-1.8% RAT.LN (Rathbones Group £16.92, -0.30) -- reports FY EPS 161.6p ex-items vs FactSet 156.7p [7 est, 150.0-159.7p]
-1.7% PION.B.SS (PION Group SEK5.80, -0.10) -- earnings; revises financial goals
-1.5% BWE.NO (BW Energy NOK26.95, -0.40) -- releases annual report; FY24 numbers in line with preliminary as of 31-Jan
-1.4% BP.LN (BP £0.00, -0.06) -- strategic reset
-1.0% MGNS.LN (Morgan Sindall Group £34.85, -0.35) -- reports FY adj EPS 278.8p vs FactSet 271.3p [6 est, 267.8-275.2p]; hikes divi by 15%
-0.8% EMMN.SW (Emmi CHF831.00, -7.00) -- reports FY net income CHF220.3M vs FactSet CHF218.4M [5 est, CHF214.4-225.4M]
-0.6% NORSE.NO (Norse Atlantic NOK3.60, -0.02) -- earnings; lease agreement
-0.6% RKT.LN (Reckitt Benckiser £53.02, -0.34) -- shortlists bidders for homecare assets - Bloomberg (25-Feb, 9:55 ET/14:55 GMT)
-0.5% AENA.SM (Aena S.M.E. €216.00, -1.00) -- provides passenger volume growth estimate in the Spanish airport network for 2025
-0.5% AENA.SM (Aena S.M.E. €216.00, -1.00) -- reports Q4 net income €484.4M vs FactSet €474.3M [8 est, €449-513M]
-0.5% BN.FP (Danone €70.20, -0.36) -- reports FY recurring EPS €3.63 vs consensus €3.56; 2025 guidance in line with mid-term ambition
-0.4% EVT.GR (Evotec €8.18, -0.04) -- CFO Laetitia Rouxel steps down from her role to pursue other opportunities, effective 28-Feb-25
-0.3% SAAB.B.SS (Saab SEK308.45, -0.85) -- Saab's executive denies reports of U.S. veto to block the sale of the Gripen E to Colombian Aerospace Force
-0.1% 1COV.GR (Covestro €58.76, -0.04) -- reports FY net income (€266M) vs FactSet (€130.7M) [7 est, (€239)-5M]
EU companies reporting tomorrow:
Earnings:
Benelux: ageas (AGS.BB), UCB (UCB.BB), Syensqo (SYENS.BB), CMB.TECH (CMBT.BB), Van de Velde (VAN.BB), Cie d'Entreprises CFE (CFEB.BB), Aalberts (AALB.NA), CTP (CTPNV.NA), Van Lanschot Kempen (VLK.NA), Corbion (CRBN.NA), ForFarmers (FFARM.NA)
Denmark: Brodrene A&O Johansen (AJO.B.DC)
France: AXA (CS.FP), Compagnie de Saint-Gobain (SGO.FP), ENGIE (ENGI.FP), Veolia Environnement (VIE.FP), Arkema (AKE.FP), Teleperformance (TEP.FP), SEB (SK.FP), Technip Energies (TE.FP), Vallourec (VK.FP), Sopra Steria Group (SOP.FP), Valeo (FR.FP), Planisware (PLNW.FP), Nexity (NXI.FP), Viridien (VIRI.FP), SMCP (SMCP.FP)
Germany: Beiersdorf (BEI.GR), KION GROUP (KGX.GR), HELLA GmbH & Co. (HLE.GR), Scout24 (G24.GR), HENSOLDT (HAG.GR), Nordex (NDX1.GR), AIXTRON (AIXA.GR), Adtran Networks (ADV.GR), Befesa (BFSA.GR), Deutsche Pfandbriefbank (PBB.GR), PATRIZIA (PAT.GR), Baader Bank (BWB.GR)
Greece: Eurobank Ergasias Services & Holdings (EUROB.GA), HELLENiQ ENERGY Holdings (ELPE.GA)
Italy: Eni (ENI.IM), Prysmian (PRY.IM), Nexi (NEXI.IM), Juventus Football Club (JUVE.IM)
Norway: Subsea 7 (SUBC.NO), Magnora (MGN.NO)
Portugal: EDP-Energias de Portugal (EDP.PL), Mota-Engil (EGL.PL)
Spain: Iberdrola (IBE.SM), Telefonica (TEF.SM), Endesa (ELE.SM), Ferrovial (FER.SM), Puig Brands (PUIG.SM), ACS, Actividades de Construccion y Servicios (ACS.SM), Corporacion Acciona Energias Renovables (ANE.SM), Grupo Catalana Occidente (GCO.SM), Fluidra (FDR.SM), Inmobiliaria Colonial SOCIMI (COL.SM), CIE Automotive (CIE.SM), Viscofan (VIS.SM), Melia Hotels International (MEL.SM), Gestamp Automocion (GEST.SM), Grenergy Renovables (GRE.SM), ATRESMEDIA Corporacion de Medios de Comunicacion (A3M.SM), Solaria Energia y Medio Ambiente (SLR.SM), Prosegur Cash (CASH.SM), ENCE Energia y Celulosa (ENC.SM)
Sweden: Millicom International Cellular (TIGO.SS), Vicore Pharma Holding (VICO.SS), BioInvent International (BINV.SS)
Switzerland: Swiss Re (SREN.SW), Sulzer (SUN.SW), Bachem Holding (BANB.SW), Bossard Holding (BOSN.SW), Bystronic (BYS.SW), Meier Tobler Group (MTG.SW), Elma Electronic (ELMN.SW), Feintool International Holding (FTON.SW), Idorsia (IDIA.SW)
UK/Ireland: Aviva (AV.LN), London Stock Exchange Group (LSEG.LN), Rolls-Royce Holdings (RR.LN), WPP (WPP.LN), Taylor Wimpey (TW.LN), Haleon (HLN.LN), Ocado Group (OCDO.LN), Man Group (EMG.LN), Shaftesbury Capital (SHC.LN), St. James's Place (STJ.LN), Howden Joinery Group (HWDN.LN), Drax Group (DRX.LN), Derwent London (DLN.LN), RHI Magnesita (RHIM.LN), Serco Group (SRP.LN), Genus (GNS.LN), Metro Bank Holdings (MTRO.LN), PPHE Hotel Group (PPH.LN), Jupiter Fund Management (JUP.LN), Brooks MacDonald Group (BRK.LN), Faron Pharmaceuticals (FARN.LN), Macfarlane Group (MACF.LN), Cairn Homes (C5H.ID)
Trading Update: 2G Energy AG (2GB.GR)
CMD/events: Eni (ENI.IM), Aktia Bank (AKTIA.FH)
Data:
Economics:
Germany Mar GfK Consumer Confidence (24.7) vs consensus (21.4) and prior revised (22.6) from (22.4)
France Feb Consumer Confidence 93 vs consensus 93 and prior 92
Spain Jan PPI +2.6% y/y vs consensus +2.7% and prior +2.3%
Finland Jan PPI +0.4% y/y vs consensus (0.2%) and prior (0.8%)
Sweden Jan PPI +3.5% y/y vs consensus +2.1% and prior +2.0%
Markets:
WTI Crude (Apr 25): ($0.06) or (0.09%) to $68.87
€-$ (0.0003) or (0.03%) to 1.0512
£-$ +0.0030 or +0.24% to 1.2695
€-£ (0.0022) to 0.8279
S&P 500 +0.73%
Performance year-to-date
FTSE 100: +6.83%
DAX: +14.49%
CAC: +10.34%
MIB: +14.74%
Stoxx 600: +10.25%
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