7th March 2018
The Daily European Equity Opening News is uploaded at 0700GMT/0100CST recapping all of the overnight equity news
From 0700GMT/0100CST all equity news will be covered in real time over the audio and headline feed and the full audio rundown will be at 0715GMT/0115CST.
There will be an additional audio rundown at 0750GMT/0150CST recapping any company news which has hit the wires since 0715GMT/0115CST ahead of the European equity open
Asian stocks were mostly lower as US political discord took the limelight once again after reports that National Economic Council Director Gary Cohn is to resign amid tariff disagreements. This latest high-profile and ‘market-friendly’ White House departure dampened the risk appetite and weighed on US equity futures in which Emini S&P gapped lower by about 1% and DJIA futures saw losses of nearly 400 points. ASX 200 (-1.0%) underperformed with sentiment also dragged by weaker than expected GDP figures, while Nikkei 225 (-0.9%) was choppy and briefly found reprieve, before a firmer JPY ultimately weighed. Elsewhere, Shanghai Comp. (-0.2%) and Hang Seng (-0.9%) initially outperformed despite reports US may consider broad curbs on Chinese imports and takeovers, as well as news that ‘China hawk’ Peter Navarro was among the top 2 candidates to replace Cohn as Trump’s top economic adviser. However, gains in Chinese money market rates eventually proved to be the deciding factor and tipped bourses into the red.
WPP (WPP LN) – Pressure could build up for ad giants WPP and Publicis (PUB FP) as Procter & Gamble (PG) look to invest more in internal analytic programmes. (Telegraph)
RBS (RBS LN) – Co. has reached a settlement of USD 500mln with the New York state in order to resolve charges that Co. mislead investors by selling risky mortgage securities that contributed to the 2008 financial crisis. (Newswires)
OTHER UK COMPANIES
Siemens (SIE GY) – Co. has attracted demand for all the shares on offer in the IPO of its medical and diagnostic business; according to bookrunners. (Newswires)
Deutsche Post (DPW GY) – Q4 EBIT EUR 1.2bln vs. Exp. EUR 1.229bln, 2017 EBIT EUR 3.74bln vs. Exp. EUR 3.789bln. Q4 sales EUR 16.1bln vs. Exp. EUR 16.21bln, 2017 sales EUR 60.4bln vs. Exp. EUR 60.545bln. Co. proposes dividend of EUR 1.15/shr. (Newswires)
PUMA (PUM GY) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS
Sanofi (SAN FP) – Torrent Pharma is reportedly mulling a EUR 2bln bid for Co.’s European unit. (Newswires)
Accor (AC FP) – Private equity firm Eurazeo (RF FP) is to sell its remaining 4.2% stake in Co. to institutional investors. (Newswires)
OTHER FRENCH COMPANIES
Elis (ELIS FP) – FY revenue EUR 2.21bln vs. Prev. EUR 1.51bln. FY EBITDA EUR 670mln vs Prev. EUR 467.9mln. Confirmation of 2018 outlook presented at investor day in January. (Newswires)
Telecom Italia (TIT IM) – Q4 revenue EUR 5.1bln vs. Prev. EUR 5.1bln Y/Y. Adj. net debt at end-2017 EUR 25.3bln vs. Exp. EUR 25.34bln. Board approves spin-off of landline network. (Newswires)
Yoox Net-A-Porter (YNAP IM) – FY 2017 adj. EBITDA EUR 169mln vs. Prev. EUR 156mln and net EUR 51.2mln vs. Prev. EUR 69mln. (Newswires)
OTHER SWISS COMPANIES
EQUITIES: SPX +0.26% at 2728, DJI +0.04% at 24,885, Nasdaq Comp +0.57% at 7,372
* SECTORS: CONS DISC (XLY): +0.72%, CONS STAP (XLP): +0.09%, ENERGY (XLE): +0.04%, FINANCIALS (XLF): +0.40%, HEALTH CARE (XLV): -0.13%, INDUSTRIALS (XLI): +0.49%, MATERIALS (XLB): +1.08%, TECH (XLK): +0.24%, TELECOMS (XTL): +0.44%, UTLITIES (XLU): -1.36%.
* US EQUITIES the better risk tone couldn’t spur US equities meaningfully higher; perhaps equity traders are cognizant of the risks related to possible steel/aluminium tariffs; while steel names are likely to gain on the news, companies that use steel in production will see costs rise. Equities did get a small boost on multiple occasions, as headlines crossed hinting that Trump would reconsider the implementation of tariffs. Nevertheless, after making its way through 2720 again, action in the EMINI S&P 500 was capped by 2730.