NOK

US Dollar Decline and Euro Strength: The US dollar has experienced its worst start to the year since 1973, largely due to the Federal Reserve's pivot towards rate cuts amid slowing economic activity. In contrast, the euro has appreciated over 13% against the dollar, impacting European companies' profit margins and leading to warnings from firms like SAP and ASML about currency headwinds.

Impact on European Corporations: The strong euro poses significant challenges for European multinationals, particularly those with substantial revenue from North America, as it erodes earnings when converting back to euros. This situation is compounded by tariffs and diverging monetary policies between the ECB and the Federal Reserve, creating a difficult environment for European corporations to maintain competitiveness.

Nokia's Stock Performance: Nokia shares have experienced a decline, losing 1.6% on Friday and totaling a 9.4% drop this year, while the S&P 500 has risen nearly 8%. The stock is down 23% over the past month.

Company Outlook and Analyst Ratings: Despite issuing a profit warning and missing second quarter estimates, Nokia's CEO anticipates stronger performance in the latter half of 2025. Analysts maintain a "Hold" rating with positive outlooks on profitability and valuation, citing strong cash flows and low debt as strengths.

Partnership Announcement: PT Solusi Sinergi Digital Tbk (Surge) has partnered with Nokia to establish a new subsea optical network between Jakarta and Singapore, enhancing regional data center connectivity and broadband access in Indonesia.

Project Goals and Technology: The initiative aims to extend fiber-based internet to 40 million households, utilizing Nokia's 1830 Photonic Service Switch for high-capacity and scalable services, initially offering 20.8 terabits of capacity.