Santander Shares Drop Nearly 4% on $12.2 Billion Bid for U.S. Lender Webster

Deep News
Feb 04

On Wednesday, influenced by a series of corporate earnings reports from the European region, stock markets in Europe opened with slight fluctuations trending upwards. The pan-European Stoxx 600 index traded marginally above the flatline shortly after the opening bell. During early trading, the UK's FTSE 100 index advanced nearly 0.5%, Germany's DAX index gained 0.3%, France's CAC 40 index rose 0.7%, and Italy's FTSE MIB index increased by 0.7%. This upward movement followed a period of stabilization in European regional markets after brief sell-offs in cryptocurrencies and precious metals. Shares of Banco Santander SA declined by 3.5%. The bank announced a plan to acquire U.S. regional lender Webster Bank for $12.2 billion. Santander also released its fourth-quarter earnings a day early, reporting a net profit of €3.76 billion (approximately $4.45 billion), surpassing the market consensus estimate of €3.41 billion; the Spanish bank simultaneously announced the initiation of a new €5 billion share buyback program. Novo Nordisk's stock plummeted 18% in early trading. The company had pre-released its results on Tuesday, warning investors of a slowdown in revenue and profit growth for the current year. This followed a dual setback from price cuts impacting its U.S. market and the expiration of patent protection for its blockbuster weight-loss drug Wegovy and diabetes medication Ozempic in China, Brazil, and Canada. Earnings reports again became a central market focus, with Novartis, GSK, Infineon Technologies, Equinor, Crédit Agricole, Svenska Handelsbanken, Carlsberg, and OMV all publishing their financial results on Wednesday morning. UBS shares fell 1.8%. Switzerland's largest bank reported a fourth-quarter net profit of $1.2 billion, a 56% increase year-over-year, beating analyst expectations of $919 million, and announced plans for a $3 billion share repurchase program. Most Asia-Pacific markets declined overnight, tracking losses on Wall Street. The previous trading session's sell-off in U.S. tech stocks had dampened sentiment, while gold prices extended their gains for a second consecutive session. Futures linked to the S&P 500 index traded largely flat overnight.

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