EUROPEAN OPEN: SIE GY orders top expectations, raises outlook; MBG GY misses estimates, lowers dividend; ML FP tops estimates, announces buyback; ULVR LN beats, announces buyback; Nuveen to buy SDR LN for GBP 9.9bln

• STOCK SPECIFICS: In consumer sectors, AB InBev (ABI BB) reported a 1.5% decline in overall volumes in Q4 (exp. -2.7%), less than analysts expected, as weaker volumes in Europe and North America were offset by growth in other regions and stronger sales of premium and non-alcoholic products; the brewer said it gained or maintained share in around two-thirds of its markets despite ongoing weak category demand; it backed its regular annual outlook for 2026. Essilor Luxottica (EL FP) said sales of Meta (META) AI glasses more than tripled in 2025, exceeding 7mln units (vs 2mln in 2023 and 2024 combined); Meta and Essilor are discussing doubling production to at least 20mln units by year-end to meet demand. Hermes (RMS FP) reported Q4 revenue growth of 9.8% (exp. 8.4%), driven by 12.1% growth in the Americas and 14.6% organic growth in its leather division; FY operating profit was EUR 6.57bln, with a 41% margin (exp. 40%); proposed a EUR 18/shr dividend, and guided price increases of +5-6% in 2026 (vs 6-7% in 2025). Unilever (ULVR LN) reported Q4 underlying sales growth of 4.2% (exp. 3.9%), driven by demand for Dove and Vaseline; the results mark its first since spinning off its ice cream business in December. Unilever warned that slowing markets could weigh on growth this year. British American Tobacco (BATS LN) reported a 2.3% rise in annual profit to GBP 11.28bln, as Velo nicotine pouches gained US market share from Altria’s (MO) On! and Philip Morris’ (PM) Zyn; revenue from newer products rose 7% Y/Y, lifting total sales +2.1% to GBP 25.61bln. In autos, Mercedes (MBG GY) warned margins will remain under pressure amid tariffs and competition in China, and sees returns of 3-5% (vs 5% last year); plans to cut costs and reduce capacity by 10% to 2.2mln. China deliveries fell one-fifth, as rivals BYD and Xiaomi gained share; it proposed a dividend of EUR 3.50 per share, down from EUR 4.30. Revenue and EBIT missed expectations, reflecting weaker demand in China, tariff headwinds and adverse currency effects. Michelin (ML FP) plans to buy back up to EUR 2bln of shares through 2028, as it seeks to support investors while its tire business faces pressure; said it will remain flexible if funding is required for larger transactions. In industrials, Siemens (SIE GY) raised its outlook after stronger demand for factory automation products boosted returns and orders, including for data centres; performance reflected solid demand across its digital industries, smart infrastructure and mobility businesses, with AI-related applications and data centre exposure supporting momentum; Raised its outlook, sees FY26 basic EPS between 10.70-11.10 (exp. 10.74; prev. saw 10.40-11.00). In financials, Nuveen is acquiring Schroders (SDR LN) for GBP 9.9bln, ending more than two centuries of independence for the UK’s largest standalone asset manager; shareholders will receive 612p/shr (comprising of 590p in cash, and a 22p dividend). Deutsche Boerse (DB1 GY) prelim FY25 revenue was EUR 5.2bln (exp. 6.29bln), while net profit was down 3.6% Y/Y; it said it will acquire General Atlantic’s remaining 20% stake in ISS STOXX for a total consideration of EUR 1.1bln. In materials, Thyssenkrupp (TKA GY) reaffirmed its FY outlook, expecting adj. EBIT of at least EUR 500mln and a cash outflow of no more than EUR 600mln, despite restructuring at Steel Europe. Q1 net loss was EUR 353mln (exp. 32mln profit), including EUR 401mln in charges; talks continue with Jindal Steel International on a potential disposal, with a possible additional low- to mid-three-digit million EUR loss linked to the HKM exit. In healthcare, Novo Nordisk (NOVOB DC) plans to begin selling its weight-loss drug Wegovy in vials, following rival Eli Lilly (LLY), which introduced vials nearly two years ago to offer a lower-priced option and ease shortages; pricing for the vials has not been disclosed. Sanofi (SAN FP) said Belen Garijo will succeed Paul Hudson as CEO after the board decided not to renew Hudson’s mandate;  Garijo, currently CEO of Merck KGaA (MRK GY), will assume the role at the end of the annual general meeting on 29th April, and Hudson will step down on 17th February at close of business.

TODAY'S AGENDA:

• DAY AHEAD: EU leaders will meet today in Belgium for an informal retreat focused on the bloc’s future amid geopolitical tensions; the talks are designed to encourage discussions outside Brussels without formal conclusions. Talks will focus on strengthening the single market, reducing economic dependencies and boosting competitiveness. US initial jobless claims (week of 7th February) are expected to fall to 222k from 231k, while continuing claims (for the week of 31st January) are seen at 1.85mln from 1.844mln. The rate of US existing home sales is seen easing to 4.15mln in January from 4.35mln in December. In energy, the IEA will publish its monthly oil market report, and the EIA will release its weekly natgas inventory data. Today's speakers' slate includes the ubiquitous ECB's Cipollone, ECB chief economist Lane, ECB's Nagel; BoC's Rogers to participate in a fireside chat. Norges Bank Governor Bache will deliver her annual speech. In supply, the US will sell USD 25bln in 30yr bonds; Italy will sell EUR 5.00-6.25bln of 2029, 2033, and 2032 debt. Notable US corporates reporting today include: Applied Materials (AMAT), Arista Networks (ANET), Vertex Pharmaceuticals (VRTX), Howmet Aerospace (HWM), Airbnb (ABNB), American Electric Power (AEP), Zoetis (ZTS).