Firefly Neuroscience stock rises on Heidelberg University collaboration

Investing.com -- Zalando (ETR:ZALG) shares fell over 4% on Monday after Morgan Stanley lowered its price target to €25.50 from €28.50, warning of growing disruption from TikTok Shop’s expansion into Europe. 

The brokerage reaffirmed its "underweight" rating and trimmed earnings forecasts, citing rising competitive pressures as social commerce gains traction.

TikTok Shop officially launched in Germany and France in March 2025 and has quickly gained momentum with younger consumers. 

Its short-form video format and influencer-driven content are changing how consumers discover and purchase apparel. 

Morgan Stanley flagged TikTok’s ability to drive “inspiration-led” purchases, posing a medium-term risk to Zalando’s growth and relevance.

In the U.K., where TikTok Shop has operated since 2021, it reached more than €4.5 billion in gross merchandise value (GMV) in 2024, accounting for 3.2% of the total e-commerce market and 5.3% in online apparel and footwear. 

This made it the fourth-largest online fashion retailer in the country, behind Next, Amazon (NASDAQ:AMZN), and ASOS (LON:ASOS), but ahead of M&S.

Zalando became a preferred logistics partner for TikTok Shop in Germany, France, and Italy earlier this year. 

While this adds a new revenue stream through its ZEOS logistics arm, the report warned that it could also support a competing platform, potentially cannibalising traffic and orders on Zalando’s core marketplace. 

ZEOS operates on a lower EBIT margin than Zalando’s direct-to-consumer business and could weigh on overall profitability if it becomes a larger part of operations.

Morgan Stanley maintained its 2025 GMV estimate of €16.36 billion but cut its projections for 2026 and 2027 by 2% and 5%, respectively.

Revenue forecasts were similarly lowered by 2% for 2026 and 6% for 2027.

Adjusted EBIT estimates for 2025-2027 were reduced by 3% per year, now standing at €561 million in 2025, €648 million in 2026, and €745 million in 2027. EPS projections were cut to €1.42, €1.66, and €1.90 over the same period, respectively.

The bank’s valuation is based on a blend of discounted cash flow (DCF) and P/E multiple methods. The DCF model assumes a 10.8% weighted average cost of capital and a 2.5% terminal growth rate. 

Revenue growth assumptions were revised downward, with the 10-year CAGR trimmed from 3.8% to 3.2%, reflecting lower medium-term growth expectations as TikTok expands its presence.

Morgan Stanley noted that Zalando’s current customer base skews older, but future growth likely depends on engaging Gen Z and Alpha demographics, where TikTok’s influence is strongest. 

The report emphasized that even a small shift, such as one in 20 orders moving to TikTok, could flatten Zalando’s year-over-year GMV growth.

Investing.com - European stocks mostly fell Monday after U.S. President Donald Trump’s decision to impose hefty tariffs on imports from the European Union, raising the potential of a trade war between the two major trading partners. 

At 03:55 ET (07:55 GMT), the DAX index in Germany dropped 0.7% and the CAC 40 in France slipped 0.5%, while the FTSE 100 in the U.K. rose 0.2%, with the U.K. government having already agreed a trade deal with the Trump administration.

Trump announces EU tariffs

Trump announced over the weekend he would be introducing 30% tariffs on imports from the European Union and Mexico, effective from Aug. 1, dealing a blow to the bloc after several months of negotiations to try to reach a trade deal. 

This followed news over the past week of similar tariffs on Japan, South Korea, Canada and Brazil, and raised the possibility of a damaging global trade war. 

“Imposing 30 percent tariffs on EU exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” European Commission President Ursula von der Leyen said in a statement.

She said the EU remains “ready to continue working towards an agreement by August 1.”

“At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Together, the EU and U.S. make up almost 30% of all global trade in goods and services and 43% of global GDP. In 2024, trade between the two totaled some 1.7 trillion euros — that’s the equivalent of 4.6 billion euros per day.

German autos slip lower 

In the corporate sector, shares of German carmakers fell after the U.S. threat of a 30% tariff on EU imports, with no mention of special treatment for autos.

Shares in Volkswagen (ETR:VOWG_p), BMW (ETR:BMWG), Mercedes-Benz (OTC:MBGAF) and Porsche (ETR:PSHG_p) all fell more than 1%.

Elsewhere, AstraZeneca (NASDAQ:AZN) stock rose after the drugmaker said its drug Baxdrostat met all the main and secondary goals of a late-stage study in patients with uncontrolled or treatment-resistant hypertension.

Crude higher; Russian sanctions ahead?

Oil prices edged higher Monday as traders await news of potential additional U.S. sanctions on Russia that may affect global output. 

At 03:55 ET, Brent futures climbed 1.1% to $71.14 a barrel, and U.S. West Texas Intermediate crude futures rose 1.2% to $69.25 a barrel.

Trump is due to make a "major statement" on Russia on Monday, having expressed frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine.

A bipartisan U.S. bill that would hit Russia with sanctions gained momentum last week in Congress, but it still awaits support from Trump.

European Union envoys are also seen to be close to agreeing another package of sanctions against Russia that would include a lower price cap on the country’s oil exports.

Investing.com - European stocks fell Friday after U.S. President Donald Trump announced fresh tariffs on Canada, raising concerns that the European Union may be the next to incur his displeasure. 

The DAX index in Germany dropped 0.9%, the CAC 40 in France also slipped 0.9% and the FTSE 100 in the U.K. fell 0.4%. 

Trump widens trade war

Trump late Thursday announced a 35% tariff rate on all imports from Canada from August 1 and planned to impose blanket tariffs of 15% or 20% on most other trading partners.

This raised concerns that the European Union could receive a letter on tariff rates shortly, throwing into question the progress of trade talks between Washington and the bloc.

EU trade chief Maros Sefcovic said recently good progress had been made on a framework trade agreement, but a deal has yet to be signed and Trump’s patience could be tested.

British economy contracted in May

On the economic data front, consumer price inflation in France rose to 0.9% in June, revised up from a preliminary reading of 0.8% and slightly above analysts’ expectations.

This followed German inflation easing to 2.0% in June, suggesting the European Central Bank has plenty of room to cut monetary policy further, probably in September, to boost the region’s economy.

In June, the ECB slashed borrowing costs for the eighth time in a year, bringing its key deposit rate down by 25 basis points to 2.0%.

The Bank of England may also soon have to cut rates as well, after Britain’s economy contracted unexpectedly for a second month running in May.

Data released earlier Friday by the Office for National Statistics showed that U.K. gross domestic product fell by 0.1% in May on a monthly basis, following a contraction of 0.3% in April, which was the biggest decline since October 2023. 

BP’s upstream output to impress 

In the corporate sector, BP (NYSE:BP) stock rose after the energy giant said its second-quarter results are expected to be impacted by lower prices received for gas and oil, but its upstream output is set to be higher than previously forecast.

Swedish hotel property owner Pandox (ST:PANDXb) posted a 2% year-on-year increase in group revenues in the second quarter, supported by recent acquisitions.

UniCredit (BIT:CRDI) has no plans to heed the advice of the German government to drop its ambitions to take over Commerzbank (ETR:CBKG), the Italian bank’s CEO Andrea Orcel was quoted as saying on Friday.

"On Commerzbank we’ll press ahead despite the German government’s stance. We were invited in September to buy a 4.5% stake, it’s not clear why we should go away now," Orcel is reported as telling a board meeting the da before.

UniCredit this week doubled its equity and voting stake in Commerzbank by turning derivatives into shares.

Oil prices gain

Oil prices rose Friday on growing expectations of additional sanctions on Russia, although gains have been capped by tariff worries and increased OPEC+ production. 

At 11:42 ET, Brent futures climbed 2.6% to $70.41 a barrel, and U.S. West Texas Intermediate crude futures rose 2.8% to $68.43 a barrel.

Both contracts lost more than 2% on Thursday as investors worried about the impact of Trump’s evolving tariff policy on global economic growth and oil demand.

However, sentiment has received a boost after Trump expressed frustration with Russian President Vladimir Putin due to the lack of progress on peace with Ukraine, raising the potential for further sanctions on the major oil producer.

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