EUROPEAN OPEN: RNO FP revenue rises despite adverse weather impact; STMPA FP reports higher sales on strong AI demand; OR FP sales rise on US/EM growth; ROP SW sales fall on copycat competition and FX; NESN SW sales beat, guidance maintained

STOCK SPECIFICS: In tech, TSMC (TSM) said it will not use ASML’s (ASML NA) high-NA EUV machines for production through 2029 because of cost, noting prices above EUR 350mln each; TSM introduced A13 for 2029 and N2U using existing ASML EUV tools, and outlined packaging technology to combine 10 large chips and 20 memory stacks by 2028 for AI systems. SK Hynix (HXSCL) reported record profit and revenue supported by strong AI infrastructure-driven memory demand, continued confidence in favourable pricing, upbeat shipment guidance and plans to ramp HBM4 volumes, despite some softness in PC and smartphone demand. IBM (IBM) shares fell 7% in extended trading as better-than-expected results were overshadowed by unchanged FY guidance. STMicroelectronics (STMPA FP) reported Q1 revenue of USD 3.10bln (exp. 3.06bln); gross profit rose to USD 1.05bln (from 841mln), with gross margin at 33.8%; exec said demand was driven by personal electronics, computers, peripherals and AI infrastructure; sees Q2 Revenue at USD 3.45bln (exp. 3.18bln), gross margin of 34.8%, including 100bps of unused capacity charges. Nokia (NOKIA FH) backed FY guidance after reporting higher network infrastructure sales, with Q1 sales in that division +12% Y/Y. It said demand from AI and data centre customers supported the increase, and it booked EUR 1bln of orders from AI and cloud customers in Q1. In autos, Tesla (TSLA) shares fell 2.1% in extended US trading; despite an earnings beat and stronger auto margins, revenue missed expectations, and it said spending would be higher than previously guided. Renault (RNO FP) Q1 sales of EUR 12.53bln topped the company-compiled consensus, driven mainly by partner demand from Nissan (NSANY) and Geely (GELHY), while core automotive revenue rose 6.5% to EUR 10.8bln; it confirmed 2026 guidance. In consumer sectors, Nestle (NESN SW) Q1 organic sales growth 3.5% (exp. 2.4%), sales -5.8% Y/Y to CHF 21.3bln (exp. 21.1bln); maintained FY guidance for +3-4% organic growth, and a higher underlying trading operating profit margin, with coffee, pet food, food and snacks driving performance. Underlying Trade Operating Margin to improve Y/Y, strengthening in H2. Carrefour (CA FP) Q1 revenue EUR 21.1bln (exp. 21.9bln); said the Iran war should have a smaller inflationary effect than Russia’s invasion of Ukraine; Q1 LFL sales rose +1.4% in France, -0.8% in Brazil, Spain +3.1%; said consumer behaviour in France was unchanged, and Middle East stores remained open. Sainsbury’s (SBRY LN) warned the Iran war is clouding its outlook, and guided 2026-27 total underlying operating profit to GBP 975mln-1.075bln; retail underlying profit for the year fell 1.1% Y/Y at GBP 1.025bln; said grocery volume growth was ahead of the market, while Argos reflected subdued general merchandise demand. EssilorLuxottica (EL FP) reported Q1 revenue +10.8% Y/Y, in line with consensus; North America sales +12.5%, while Ray-Ban and Oakley were boosted by AI glasses developed with Meta (META); it confirmed its February outlook. L’Oreal (OR FP) Q1 2026 revenue of EUR 12.2bln (exp. 11.87bln); China grew at a mid-to-high single-digits, North America rose 7.6% LFL; H2 2025 recovery in the US and China continued; Middle East consumption was affected by the conflict, notably in the UAE. Heineken (HEIA NA) Q1 revenue EUR 6.70bln (exp. 6.70bln); organic net revenue +2.8%, volumes +1.2%, both above expectations; highlighted rising energy costs as a key risk, noting that higher prices to protect profits could weigh on demand; CEO search continues. In communications, Orange (ORA FP) raised its 2026 EBITDAaL growth guidance to more than 3%; Q1 revenue +3.5% to EUR 10.1bln, EBITDAaL +6.6% to EUR 2.60bln; growth was led by Africa and the Middle East, while France and other European markets also added broadband, mobile and fibre customers. In industrials, Dassault Systemes (DSY FP) Q1 revenue of EUR 1.51bln (exp. 1.52bln); demand for 3DExperience and Cloud supported results, and the company confirmed FY guidance. In healthcare, Sanofi (SAN FP) Q1 sales of EUR 10.51bln (exp. 10.7bln) and business operating income of EUR 2.97bln. Dupixent sales with Regeneron (REGN) rose +30.8% to EUR 4.17bln; reaffirmed FY guidance. Roche (ROP SW) reported Q1 sales of CHF 14.72bln (-5% Y/Y, but +6% Y/Y at constant FX); sales were driven by pharmaceuticals, with Ocrevus sales +6%, and Hemlibra +13%; Said demand for core lab and pathology solutions more than offset the impact of healthcare pricing reforms in China; confirmed FY targets.

DAY AHEAD:

• DATA: In Europe, flash PMIs are the main focus (Eurozone manufacturing exp. 52 vs prev. 51.6; services exp. 50.7 vs prev. 50.2), Germany PMI (manufacturing exp. 52.5 vs prev. 52.2; services exp. 50.5 vs prev. 50.9), France PMI (manufacturing exp. 50.5, prev. 50.0; services exp. 48, prev. 48.8), UK PMI (manufacturing exp. 51 vs prev. 51.0; services exp. 51.4 vs prev. 50.5). The ECB’s wage tracker is also due (prev. 2.7%). In North America, US initial jobless claims (exp. 212K, prev. 207K), continuing claims (exp. 1.82mln, prev. 1.818mln), and S&P Global flash PMIs (manufacturing exp. 52.5 vs prev. 52.3; services exp. 50 vs prev. 49.8); Canada PPI is seen at 1.8% M/M (prev. 0.4%).
• EVENTS: Israel and Lebanon talks in the US are slated for today at 16:00EDT/21:00BST.
• SPEAKERS: Riksbank’s Seim is due to speak today.
• SUPPLY: US Treasury will announce sizes for next week’s 2s, 5s, 7s supply; the US sells USD 26bln of 5-year TIPS.
• ENERGY: Weekly EIA natural gas stocks are due.
• EARNINGS: Notable corporates reporting today include: Intel (INTC), American Express (AXP), Thermo Fisher (TMO), NextEra (NEE), Gilead (GILD), Blackstone (BX), Union Pacific (UNP), Honeywell (HON), Lockheed Martin (LMT), Newmont (NEM), Comcast (CMCSA), Digital Realty (DLR), Baker Hughes (BKR), Nasdaq (NDAQ), Edwards (EW), CBRE (CBRE), Ameriprise (AMP), Hartford (HIG), Roper (ROP), PG&E (PCG), Keurig Dr Pepper (KDP), Dover (DOV), Huntington Bancshares (HBAN), Freeport-McMoRan (FCX), PulteGroup (PHM), VeriSign (VRSN), Dow (DOW), CenterPoint Energy (CNP), Hasbro (HAS), American Airlines Group (AAL), Mobileye Global (MBLY).