EUROPEAN OPEN: VOW3 GY plans cost cuts; HLAG GY in talks for Zim Integrated Shipping; Sinochem mulls convertible to temporarily reduce PIRC IM stake; ROG SW positive Phase III results for Gazyva/Gazyvaro; Soros slashes FLTR LN stake

• EUROPEAN OPEN: European equities are starting the week with gains. Overnight, APAC stocks began the week in the green, but gains were limited following a lack of major fresh catalysts and amid thinned trading conditions owing to holiday closures in the region (China Lunar New Year) and US (President’s Day). Data showed Japan’s real GDP missing expectations but still marking a narrow return to growth, which analysts said offers the BoJ scope to continue raising rates, though some say the tepid rebound may support PM Takaichi’s case for more aggressive fiscal spending. Gold fell below USD 5,000/oz as traders took profits after a sharp rise on Friday, driven by mild US inflation data, which eased concerns over sharper inflation and supported expectations of Fed rate cuts. Industrial metals were steady; copper was little changed, trading below USD 13k/ton, aluminium stabilised after Friday’s fall following a report that the US may narrow the scope of import tariffs. Oil was also little changed as markets weighed geopolitical risks before expected US-Iran talks on Tuesday, as well as the prospect of OPEC+ resuming supply increases in April (members are set to meet on 1st March to discuss supply); Brent was near USD 68/bbl after its first back-to-back weekly decline this year, while WTI was around USD 63/bbl. US natgas fell to a four-month low as forecasts for warmer weather reduced expectations for heating demand; higher-than-normal temperatures are forecast across much of the US over the next two weeks, according to the National Oceanic and Atmospheric Administration. In data, Rightmove’s data showed UK house prices were flat in February at 0.0% Y/Y (prev. 0.5%), with sellers holding asking prices steady as a surge in property listings boosted buyers’ bargaining power; the average newly listed home remained around GBP 368k following January’s 2.8% jump, which was driven by post-budget optimism and pent-up demand; Rightmove noted that late-2025 uncertainty around rumoured property tax changes in November’s Budget had weighed on pricing and activity as sellers sought to attract cautious buyers.
• STOCK SPECIFICS: In industrials, Hapag-Lloyd (HLAG GY) confirmed that is in advanced talks to acquire Israeli rival Zim Integrated Shipping Services; talks with FIMI Opportunity Funds regarding the assumption of obligations under special rights held by the state of Israel are also advanced; no binding agreements have yet been signed. In energy, Eni (ENI IM) announced a significant oil discovery in an exploration well offshore Angola; prelim estimates indicate around 500mln bbls of oil. In consumer sectors, Volkswagen (VOW3 GY) has been ordered to stand criminal trial in France over the diesel-emissions scandal, according to AFP, facing charges of deceit “concerning goods that endanger human and animal health.” Separately, the company plans to cut costs by 20% by the end of 2028, with potential plant closures under consideration. Pirelli’s (PIRC IM) largest shareholder Sinochem (holds a 34% stake), is considering selling a convertible bond to temporarily reduce its stake by 10-15%, Corriere della Sera reported. The move would aim to ease US government scrutiny of the Italian tiremaker, and would allow the Chinese state-backed group to regain the shares upon bond repayment at maturity. Of note for Nestle (NESN SW) and Danone (BN FP), the Paris public prosecutor has opened five investigations into baby milk brands distributed by multiple companies, including Nestle and Danone, after contamination with toxin cereulide, Bloomberg reports. In healthcare, Roche (ROG SW) announced positive Phase III results for Gazyva/Gazyvaro in primary membranous nephropathy, marking a significant milestone in autoimmune disease. Sanofi (SAN FP) said a study in The Lancet Infectious Diseases found its RSV immunisation Beyfortus reduced RSV hospitalisations 85.9% in first season and 55.3% in second season, with fewer care visits. In notable broker updates, Kone (KNEBV FH) was upgraded at Deutsche Bank; Schroders (SDR LN) was downgraded at RBC; Norsk Hydro (NHY NO) was downgraded at Pareto; Barratt Redrow (BTRW LN) was downgraded at Peel Hunt; HelloFresh (HFG GY) was downgraded at Kepler. In fund holdings, Soros Fund Management cuts its stake in Flutter Entertainment (FLTR LN) by 81.%, to around 93K shares, according to a filing.

TODAY’S AGENDA:

SERVICE NOTICE: It is President’s Day in the US; Newsquawk EU coverage will run as usual today; thereafter, the desk will shut at 18:00GMT/13:00ET and then re-open for APAC coverage at 22:00GMT/17:00ET.

• DAY AHEAD: Today’s docket is thin, on account of President’s Day. In Europe, the ECB will release parts of its economic bulletin, with today’s update on ‘structural barriers to the green transition’. Eurozone industrial production data for December is due. The Eurogroup will hold a meeting to discuss the draft Council recommendation on the economic policy of the Euro area for 2026, with a view to its approval by the Economic and Financial Affairs Council on Tuesday. In the afternoon, Fed’s Bowman (voter, dovish) will speak at a bankers conference.
• WEEK AHEAD: Highlights include US PCE and GDP; FOMC minutes, RBNZ policy announcement; flash PMIs; UK, Canadian and Japanese inflation metrics. US-Iran talks are taking place on Tuesday. Notable corporate earnings announcements due this week include: Walmart (WMT), Alibaba (BABA), Deere (DE), Analog Devices (ADI), Booking Holdings (BKNG), Newmont (NEM), Medtronic (MDT), Palo Alto Networks (PANW), Southern Company (SO), CRH (CRH), Cadence Design (CDNS), Quanta (PWR), Carvana (CVNA), Republic Services (RSG), DoorDash (DASH), Moody’s (MCO).
• Click here for Newsquawk’s week ahead preview.
• Click here for this week’s US earnings estimates.