Before the bell: Correction is Healthy

Threats of trade tariffs weigh on markets. Tech stocks and Nvidia face a reality check.

Nvidia’s earnings exceeded expectations, yet the stock plunged 8.5%. And this wasn’t an impulsive reaction—investors had an entire night to process the results, as they were released after market hours on Wednesday. The AI chipmaker wasn’t alone—the Nasdaq tumbled 2.8%, extending the ongoing correction in the Magnificent Seven. What’s more concerning than a healthy market pullback are Trump’s persistent tariff threats. If this trend continues, investors will soon ask whether big tech is headed for a bear market (-20%). No one has the answer, but one thing is clear: Markets thrive on a balance of fear and optimism. An endless surge in stock prices with no pullbacks is far more dangerous than occasional corrections. Even European stocks took a breather, though their losses remained moderate. The Stoxx 600 declined 0.5%. Syensqo (-10%) was punished for its weak guidance, while UCB (-1.7%), despite beating expectations, faced a sell-off after its strong rally. Meanwhile, Ageas (+0.6%) managed to stay in positive territory after posting solid results.

Asian indices are down as much as 3% this morning, following Trump’s renewed commitment to imposing tariffs on March 3. Today will be another big earnings day in Brussels, with reports from Ackermans & van Haaren, bpost (which is expected to post losses and weak guidance), Inclusio, Shurgard, Texaf, and What’s Cooking. Beyond Belgium, we’ll see earnings from BASF, Allianz, and AIG, while in the U.S., all eyes will be on the Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation gauge.

Proximus Customers Stay Put

Despite new telecom competitor Digi entering the Belgian market, Proximus managed to grow its domestic revenue by 3.2% in Q4. Even with aggressive price cuts to counter Digi, the company kept EBITDA stable. Including a 34% increase in international revenues, mainly from India’s Route Mobile, total group revenue climbed 10%. For the full year, Belgian EBITDA rose 3.4%, while digital and tech-driven international EBITDA expanded 6.2%. In 2025, Proximus expects stable domestic earnings and a 25% increase in EBITDA from its international division. CEO Guillaume Boutin confirmed that the company plans to maintain its dividend at €0.60 per share, with €0.50 already paid out. Boutin will step down in May to join Vodafone UK.

Protecting Margins While Selling Factories

As expected, Bekaert’s revenue declined 8.6% in 2024, but the steel wire group managed to protect its margins. While no improvement is expected this year, Bekaert forecasts stable revenue and margins. The company sold several factories in Latin America, likely as a precaution against potential U.S. tariffs. Thanks to its strong balance sheet, Bekaert plans to increase its dividend by 6% to €1.90 per share and launch a €200 million share buyback program.

Did You Know …

that several top managers at Digi Belgium have already been let go, despite the company just launching its telecom services in the country? The first earnings report for the new player is expected today.

This article was translated from Dutch and was originally published on Spaarvarkens.be.