DAILY EUROPEAN EQUITY OPENING NEWS

**EUROPEAN EQUITY COVERAGE WILL ONLY COVER COMPANIES IN THE STOXX 600 OR COMPANIES OF SYSTEMIC IMPORTANCE TO PARTICULAR SECTORS**

8th November 2018

The Daily European Equity Opening News is uploaded at 0700BST/0100CDT recapping all of the overnight equity news

From 0700BST/0100CDT all equity news will be covered in real time over the audio and headline feed and the full audio rundown will be at 0715BST/0115CDT.

There will be an additional audio rundown at 0750BST/0150CDT recapping any company news which has hit the wires since 0715BST/0115CDT ahead of the European equity open

ASIA

Asian stocks were mostly higher as they took impetus from the post-election rally seen on Wall St where all majors gained at least 2% and the DJIA notched more than a 500-point gain as investors ploughed back into stocks after the US mid-terms results conformed to the broad consensus. ASX 200 (+0.5%) and Nikkei 225 (+1.9%) were both firmer from the get-go with tech the outperformer in Australia after a similar strong showing of the sector in US, while the Japanese benchmark ignored the largest drop on record for Machine Orders and was boosted by a weaker currency. Shanghai Comp. (-0.1%) and Hang Seng (+0.9%) initially benefitted from the heightened global risk appetite with the latter underpinned by a decline in money market rates after the PBoC’s bill sale in Hong Kong the prior day, while participants also digested the latest trade data from China in which Trade Balance slightly missed but Exports and Imports both topped estimates.

FTSE

EX-DIVS: BP (BP/LN) and Whitbread (WTB LN) will trade without entitlement to their latest dividend pay-out on Thursday, trimming 6.2 points off the FTSE 100. (Newswires)

Ryanair (RYA LN) – The Co and Chief Executive Michael O’Leary have been sued in New York by a shareholder who said the airline defrauded investors and inflated its share prices by overstating its ability to manage labour relations and keep costs down. (Newswires)

BHP (BLT LN) – The Co will meet its iron ore commitments following a supply disruption where they had to derail a runaway train in Western Australia. (Newswires)

Persimmon (PSN LN) – Chief Executive Jeff Fairburn has rejected the opportunity to save his job by handing back a larger proportion of his GBP 75mln bonus. (The Telegraph)

UK Property Firms – the UK property market is at its weakest for six years, with prices falling or flat across half of the country according to RICS; along with reports that sales are in ‘limbo’ until a Brexit deal appears. (The Guardian)

OTHER UK COMPANIES

TalkTalk (TALK LN) – The GBP 1.5bln deal with Infracapital has reportedly stalled. (Sky)

Redrow (RDW LN) – Steve Morgan, the Co’s founder, plans to leave at the end of March and will be succeeded as executive chairman by John Tutte the Chief Executive. (The Times)

BROKER MOVES

G4S (GFS LN) DOWNGRADED TO SECTOR PERFORM FROM TOP PICK AT RBC

DAX

Siemens (SIE GY) – Q4 net profit EUR 681mln vs. Exp. EUR 595mln. Revenue EUR 22.61bln vs. Exp. EUR 22.58bln. Orders EUR 23.70bln vs. Exp. EUR 22.91bln. Co. to launch EUR 3bln share buyback and proposes a dividend raise to EUR 3.80 vs. Prev. EUR 3.70. Co. continue to expect favourable market conditions. (Newswires)

Deutsche Telekom (DTE GY) – Q3 revenue EUR 19.104bln vs. Exp. EUR 18.846bln. Adj EBITDA EUR 6.207bln vs. Exp. EUR 6.002bln. Adj. net income EUR 1.321bln vs. Exp. EUR 1.349bln. Co. raised 2018 Adj. EBITDA guidance to EUR 23.6bln vs. Prev. EUR 23.4bln. Co. also raised 2018 free cash flow guidance to EUR 6.3bln vs. Prev. EUR 6.2bln. (Newswires)

Daimler (DAI GY), BMW (BMW GY) – EU regulators conditionally approved the two Co’s to combine their car sharing units. Co (Newswires)

OTHER GERMAN COMPANIES

Commerzbank (CBK GY) – Q3 revenue EUR 2.19bln vs. Exp. EUR 2.17bln. Operating profit EUR 331mln vs. Exp. EUR 314mln. Net income EUR 218mln vs. Exp. EUR 211.9mln. CET1 ratio 13.2% vs. Prev. 13.0%. Co. reaffirms 2018 outlook. Co. reportedly signed an agreement with SocGen (GLE FP) to sell Co.’s EMC unit. (Newswires)

Heidelberg Cement (HEI GY) – Q3 sales EUR 4.9bln vs. Exp. EUR 4.8bln. RCOBD EUR 1.04bln vs. Exp. EUR 1.06bln. Co. is considering a share buyback in 2019. Co. confirms outlook. (Newswires)

Hannover Re (HNR1 GY) – Q3 EBIT EUR 249.8mln vs. Exp. EUR 147.8mln. Net EUR 170.0mln vs. Exp. EUR 77.5mln. Co. confirms profit target for FY 2018. (Newswires)

Rheinmetall (RHM GY) – 9M +32% EUR 273mln. Order backlog EUR 9.315bln vs. Prev. EUR 7.234bln. Co. cut FY organic revenue guidance. Co expects further improvement in FY18. (Newswires)

Prosieben SAT (PSM GY) – Q3 revenue EUR 892mln vs. Exp. EUR 895mln, adj. EBITDA EUR 175mln vs. Exp. EUR 176mln, net EUR 75mln vs. Exp. EUR 78mln. (Newswires)

BROKER MOVES

EVONIK (EVK GY) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

CAC

Societe Generale (GLE FP) – Q3 revenue of EUR 6.53bln vs. Exp. EUR 6.02bln, up 9.6%. Revenue +19% to EUR 593mln. Net profit of EUR 1.23bln vs. Exp. 0.962bln. Co says EUR 136mln provisions for legal disputes now cover all associated financial costs, mainly for the sanction’s violation case. (Newswires)

BROKER MOVES

PAN EUROPE

BPost (BPOST BB) – Q3 revenue EUR 873.7mln vs. Exp. EUR 860mln, EBITDA EUR 78.9mln vs. Exp. EUR 110mln and net EUR 32.6mln vs. Prev. EUR 60mln. (Newswires)

UniCredit (UCG IM) – Q3 net profit EUR 29mln vs. Exp. EUR 907mln (includes writedown for Turkey which wasn’t factored into estimates). Q3 net commission EUR 1.6bln vs. Exp. EUR 1.63bln.  Co. downgraded 2018, 2019 and CET1 forecasts. Co. expects to seal agreement with US authorities over Iranian sanctions by Q1 2019. (Newswires)

Poste Italiane (PST IM) – 9M revenue EUR 7.951bln vs. Exp. EUR 7.92bln. Net profit EUR 1.056bln vs. Exp. EUR 1.008bln. EBIT EUR 1.500bln vs. Exp. EUR 1.447bln. Q3 EBIT 465mln vs. Exp. 408.3mln. Q3 revenue EUR 2.52bln vs. Exp. EUR 2.50bln. Co. says its on track to deliver 2018 targets. (Newswires)

Tods (TOD IM) – 9m revenue EUR 706mln vs. Exp. EUR 708mln. (Newswires)

Generali (G IM) – 9M net EUR 1.855bln vs. Exp. EUR 1.829bln. operating profit EUR 3.600bln vs. Exp. EUR 3.631bln. (Newswires)

Solvay (SOLB BB) – Q3 revenue EUR 2.59bln vs. Exp. EUR 2.51bln. Q3 net sales EUR 2.59bln vs. Exp. EUR 2.54bln. Q3 underlying EBITDA EUR 574mln vs. Exp. EUR 574mln. Co confirmed 2018 guidance. (Newswires)

SMI

Zurich Insurance (ZURN SW) – 9M P&C gross written premiums USD 25.9bln vs. Prev. USD 25.3bln.  Co. is on track to achieve 2017-2019 targets. Co. is to divest Zurich Seguro in Venezuela, terms not disclosed. (Newswires)

UBS (UBSG SW) – The Co say it expects to be sued by the US Department of Justice as soon as Thursday on civil charges regarding the sale of mortgage-backed securities in the lead up to the 2008 financial crisis. (Newswires)

Kuehne + Nagel International (KNIN SW) – The Co said it has won a multi-year contract for the warehousing and fulfilment of engine parts for Pratt & Whitney in Atlanta. (Newswires)

OTHER SWISS COMPANIES

Sunrise Communications (SRCG SW) – Q3 total revenue CHF 469mln vs. Prev. CHF 460mln. Q3 net adjusted income CHF 32mln vs. Prev. CHF 22mln. Co have confirmed full year 2018 revenue and EBITDA guidance. (Newswires)

BROKER MOVES

SCANDINAVIA

Aker (AKER NO) – Q3 net asset value NOK 63.3bln vs. Q2. NOK 57.1bln. (Newswires)

Ericsson (ERICB SS) – CO. have raised FY 2020 revenue guidance to SEK 210-220bln vs. Prev. view of SEK 190-200bln. (Newswires

BROKER MOVES

US

* SPX +2.12% at 2814, NDX +3.07% at 7203, DJI +2.13% at 26181. SECTORS: Energy +1.66%, Materials +1.88%, Industrials +1.68%, Cons Discretionary +3.12%, Cons Staples +0.55%, Healthcare +2.93%, Financials +1.34%, Tech +2.87%, Telecoms +1.93%, Utilities +1.05%.

(RANsquawk)