Core Viewpoint - U.S. markets experienced a significant decline due to renewed fears of a U.S.-China trade dispute, leading to broad-based selling across major indexes, particularly affecting tech and growth stocks [2][3][6]. Market Performance - The S&P 500 closed down 2.32% at $655.60 after hitting a day low of $654.12, with nearly 80% of its constituents finishing in the red [5]. - The NASDAQ Composite Index fell 2.91% to $592.95, reflecting heavy selling pressure in large growth and technology stocks [7][8]. - The Dow Jones Industrial Average decreased by 1.56% to $456.28, indicating broad weakness even among traditionally resilient blue-chip stocks [9][10]. Investor Sentiment - Investor sentiment turned risk-averse due to the potential for increased tariffs on Chinese imports, particularly critical materials, leading to a rotation from equities to safer assets [6]. - The VIX, or "fear index," spiked over 15% intraday, highlighting the market's sensitivity to geopolitical developments [4]. Sector Impact - Technology, industrials, and consumer discretionary sectors were the hardest hit, with the tech-heavy NASDAQ showing one of its worst single-day performances in recent memory [3][8]. - The overall market's vulnerability to geopolitical shocks was underscored by the significant declines across all major sectors [6].

Core Insights - GN Store Nord has adjusted its financial guidance for 2025, now expecting organic revenue growth of -3% to +3%, an EBITA margin of 11% to 13%, and free cash flow excluding M&A to remain around DKK 800 million [2][6]. Financial Guidance for 2025 - The company anticipates organic revenue growth excluding wind to be down from a prior estimate of 3% to 7% to a new range of -3% to +3% [2]. - EBITA margin guidance has been revised down from 12% to 14% to a new range of 11% to 13% [2]. - Free cash flow excluding M&A is confirmed to be approximately DKK 800 million, unchanged from previous guidance [2]. Revenue Assumptions by Division Hearing Division - GN expects the hearing aid market to grow at historical rates, projecting a market volume growth of 4-6% and a market value growth of 3-5% in 2025 [3]. - The division aims for organic revenue growth of 5% to 9%, supported by the launch of ReSound Vivia and ReSound Savi [3]. Enterprise Division - The current market environment has led to uncertainty, causing companies to postpone IT projects, which negatively impacts the addressable market [4]. - The division anticipates organic revenue growth of -8% to 0% due to these challenges and prioritization of product variants shipped to the U.S. [4]. Gaming Division - The gaming gear market is expected to be negatively impacted by a decline in consumer sentiment in the U.S. and global economic uncertainty [5]. - The division projects organic revenue growth of -6% to +2%, excluding the impact from the wind-down of certain product lines [5]. Q1 2025 Financial Performance - GN reported a group revenue of DKK 3,986 million for Q1 2025, reflecting a 7% decline compared to Q1 2024 [6]. - The Hearing division experienced a -1% organic revenue growth, while the Enterprise division faced a -9% decline [6]. - The Gaming division reported an 11% organic revenue growth, excluding the impact from the wind-down of certain product lines [6]. - Group EBITA was DKK 300 million, with an EBITA margin of 8%, indicating a significant decline from previous periods [6]. - Free cash flow excluding M&A was reported at DKK -395 million, influenced by seasonality and higher interest payments [6]. Management Commentary - The CEO expressed confidence in the underlying strength of the business despite short-term challenges and emphasized the successful launch of ReSound Vivia [6][8]. - The company is taking significant actions to mitigate the impact of tariffs, including diversifying its manufacturing footprint and implementing price increases in the U.S. [6][9].

Investment Rating - The report suggests a positive outlook for the economy, indicating that monetary policy actions may be necessary to support growth amid trade disputes [1][6]. Core Insights - New credit data for March exceeded expectations, with new RMB loans at RMB3,640 billion and total social financing (TSF) at RMB5,888 billion, suggesting a solid economic condition prior to the escalation of trade disputes in April [3][5]. - The report highlights a sequential improvement in credit growth, with outstanding RMB loans growing at 8.4% YoY and TSF growth at 7.4% YoY, marking the first improvement since early 2023 [3][4]. - The housing market showed signs of weakness in April, with primary sales in the top 30 cities down 15.4% YoY, indicating a need for policy intervention to stabilize the economy [5][17]. - The anticipated sequence of monetary policy actions includes liquidity support, a reserve requirement ratio (RRR) cut, and a rate cut, with expectations of 100 basis points of RRR cuts and 40 basis points of rate cuts for the year [1][6]. Summary by Sections Credit Growth - New household short-term loans reached RMB484 billion and long-term loans rose to RMB505 billion in March, indicating a recovery in household borrowing [7]. - Corporate short-term loans were strong at RMB1,440 billion compared to RMB980 billion in March of the previous year, while long-term loans remained stable [7][16]. Monetary Policy Outlook - The report anticipates that monetary policy actions could resume in the second quarter of 2025, with a focus on liquidity support for exporters and potential RRR and rate cuts [1][6]. - The report notes that uncertainties remain high, particularly regarding tariff exemptions and semiconductor policies [6]. Government Bond Issuance - Government bond issuance was robust, reaching RMB1,483 billion in March, contributing to the overall financing environment [7][12].