EUROPEAN OPEN: ASML NA next-gen EUV tools ready for manufacturing; FLTR LN down after Q4 miss, soft guide; BAS GY sees profits in FY26 below expectations; BMPS IM plans to return EUR 16bln through 2030; Sandoz downgrades

STOCK SPECIFICS: In tech, ASML Holding (ASML NA) said its next-gen high-NA EUV tools are ready for high-volume manufacturing, having processed 500k wafers with about 80% uptime, targeting 90% by year-end. The machines are intended to support advanced chip production for customers including TSMC (TSM) and Intel (INTC). Full integration into manufacturing is expected within 2-3 years. In consumer sectors, Flutter Entertainment (FLTR LN) US shares fell nearly 7% in extended trading after it reported Q4 revenue and earnings that missed expectations, and issued softer-than-expected 2026 guidance, and said that prediction markets would impact sportsbook growth by low single-digit percentage points. In industrials, IAG (IAG LN) reported FY operating profit of EUR 5.02bln (exp. 4.97bln), supported by lower fuel costs and resilient demand on core transatlantic routes, particularly in its premium services. In energy, and of note for UK energy companies, the UK government is reportedly discussing a possible early end to the energy profits levy for North Sea operators ahead of the Spring Statement next week. In materials, BASF (BAS GY) Q4 revenue EUR 14.0bln (exp. 14.04bln), Q4 net profit EUR 560mln (exp. 285mln); Q4 EBITDA declined to EUR 1.03bln (from EUR 1.43bln Y/Y); FY25 revenue fell to EUR 59.7bln (from 61.4bln), while adj. EBITDA decreased to EUR 6.6bln (from 7.2bln); does not expect a meaningful market upswing or significant easing of geopolitical tensions in the near term; sees FY26 adj. EBITDA between EUR 6.2-7.0bln (exp. 7.22bln). In healthcare, Grifols (GRF SM) expects 2026 adj. EBITDA to rise more than 25% to EUR 1.950-1.980bln, and FCF of at least EUR 500mln, and expects to continue reducing debt. FY25 net profit was EUR 402mln (exp. 427mln), FY25 revenue +7% to EUR 7.52bln (exp. 7.52bln), and adj. EBITDA EUR 1.825bln (exp, 1.83bln). In financials, Monte Paschi (BMPS IM) plans to return about EUR 16bln to investors through 2030, as it seeks to realise benefits from the acquisition of Mediobanca. It will distribute 100% of net income through 2030, expects revenue to grow at a 4.6% CAGR, with adj. profit seen reaching about EUR 3.7bln by the end of the period. In notable broker updates, Euronext (ENX FP) upgraded at Kepler; WPP (WPP LN) upgraded at Barclays; Arkema (AKE FP) downgraded at Kepler; Iberdrola (IBE SM) downgraded at Goldman Sachs; Lindt (LISN SW) downgraded at Berenberg; Swisscom (SCMN SW) downgraded at UBS; HSBC (HSBA LN) downgraded at Shore Capital; Sandoz (SDZ SW) downgraded at Morgan Stanley and Deutsche Bank; Segro (SGRO LN) downgraded at Goldman Sachs.

TODAY’S AGENDA:

DAY AHEAD: In Europe, German inflation metrics for February are expected to show the annual rate falling to 2.0% from 2.1%; regions will report CPI metrics through the European morning. The ECB’s consumer expectations survey will also be released. Stateside, US PPI data for January is expected to rise +0.3% M/M (prev. 0.5%), while the ex-energy/food/trade measure is seen rising +0.1% M/M (prev. +0.4%). Elsewhere, construction spending for December, and the Chicago PMI for February are due. In energy, Baker Hughes will publish its weekly rig count data. On the speakers’ slate, BoE’s chief economist Pill will speak on a panel.