Before the bell: calm waters

More and more investors give up alcohol. WDP acquires Renault site in Vilvoorde, and tech companies back Donald Trump.

European markets typically sail in calm waters when their bigger brother in New York remains closed, and yesterday was no exception. While the average European stock gained 0.4%, Brussels’ Bel20 barely moved, closing just 0.1% higher. Melexis was the biggest gainer, rising 4.4% after Jefferies added it to their buy list. The automotive chipmaker ended the session at 59.15 euros per share and received a price target of 70 euros. UCB also climbed 1.2%, thanks to its use of artificial intelligence, as discussed in yesterday’s “Before the bell”. Meanwhile, Elia’s shareholders had another tense day, with the high-voltage grid operator shedding 4.1%, marking its second consecutive day of losses.

This morning in Asia, the Hang Seng Index dropped 0.9%, while Japan’s Topix declined by 0.7%. With US markets reopening today, all eyes will be on December’s job data and the University of Michigan’s consumer confidence survey results.

The glass of alcohol remains half empty

Renowned British investor Terry Smith announced in his newsletter yesterday that he has sold his position in Diageo. The producer of alcoholic beverages, known for brands like Guinness, Baileys, Johnnie Walker, and Tanqueray, had been a part of his portfolio for nearly 15 years. But now, Smith has lost confidence in it. Best known for his ‘Fundsmith Equity’ fund, Smith manages over 22 billion pounds. His fund returned 8.9% in 2024, underperforming the MSCI World Index, which delivered 20.8%. As a result, some positions had to be cut. Diageo, like most alcohol producers, has struggled recently, losing 7.7% of its market value over the past year. Other positions Smith has sold include McCormick and Apple.

Sold

The “sold” sign now hangs over Renault’s Vilvoorde site. Warehouses De Pauw (WDP) has acquired the property for 100 million euros. The logistics real estate specialist believes the 19-hectare site offers unique redevelopment potential. Located on the outskirts of Brussels, it features a mix of industrial buildings and warehouses. The structures, spanning more than 1.5 kilometers, are ideal for housing multiple professional tenants. WDP expects to achieve an initial net yield of approximately 7%. However, the real estate company has lost over 33% of its market value in the past year and is trading at its lowest level in more than five years.

Did you know…

Tech giants like Microsoft, Alphabet, Adobe, Amazon, and Meta are collectively donating millions for Donald Trump’s inauguration? In the US, it’s not unusual for companies to do this; they also contributed during the inaugurations in 2017 and 2021 for the then-elected president.

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