RANsquawk Daily European Equity Opening News – 9th November 2018

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Earnings from Allianz, Richemont, Leonardo, Telecom Italia Broker Moves for Prosiebensat Stories for Novartis, BASF and UBS ASIA

Asia equity markets traded lower following a lacklustre lead from Wall St where the mid-term stock rally stalled as focus shifted to the FOMC, which maintained rates as expected and provided little to derail expectations for a 4th hike this year. ASX 200 (-0.1%) and Nikkei 225 (-1.0%) were lower with energy stocks pressured after a continued slump in oil prices and as soft earnings results also clouded over Tokyo sentiment. Hang Seng (-2.5%) and Shanghai Comp. (-1.1%) were the worst hit in the region as tech and energy stocks lagged, while continued PBoC liquidity inaction and inline inflation data proved to be inconclusive for sentiment.

FTSE

National Grid (NG/ LN) – Co. has been given approval to a USD 1.1bln plan to build the longest high-voltage power cable between UK and Denmark. (Telegraph)

OTHER UK COMPANIES

G4S (GFS LN) – Co. shares staged a recovery yesterday (+3.4%) amid calls by City analysts for the Co. to consider a ‘radical’ demerger to reignite its turnaround. (Telegraph)

BROKER MOVES

AA (AA/ LN) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT CREDIT SUISSE

DAX

Allianz (ALV GY) – Q3 revenue EUR 30.5bln vs. Exp. EUR 29.9bln. Q3 net EUR 1.92bln vs. Exp. EUR 1.90bln. Operating profit EUR 2.99bln vs. Exp. EUR 2.86bln. The Co affirms full year 2018 operating profit. (Newswires)

BASF (BAS GY)/ Uniper (UN01 GY) – US Energy Secretary Perry said US could still impose sanctions to the building of the Nord Stream 2 pipeline. (Newswires)

Innogy (IGY GY)/ SSE (SSE LN)/RWE (RWE GY) – SSE said it was in talks with Innogy in regard to potential changes to terms for the tie-up of SSE’s retail unit with Innogy’s Npower. This comes after UK regulators proposed a price cap on energy bills. (Newswires)

Thyssenkrupp (TKA GY) – Co. announced a profit warning as the Co. said provisions for an ongoing cartel probe and quality problems at its auto business will dent earnings. (Newswires)

Continental (CON GY) – Co. have appointed advisors for a potential IPO of its Powertrain unit which could be valued at EUR 5bln; according to sources. (Newswires)

RWE AG (RWE GY) – The Co’s Supply and Trading unit have signed a cooperation agreement with Tokyo Gas to strengthen their ties in LNG sourcing, trading and shipping activities. (Newswires)

OTHER GERMAN COMPANIES

Leg Immobilien (LEG GY) – 9M FFO EUR 242.2mln vs. Prev. EUR 226.3mln and affirms FY 2018/19 FFO. (Newswires)

BROKER MOVES

PROSIEBENSAT.1 MEDIA (PSM GY) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS AND DOWNGRADED TO HOLD FROM BUY AT HSBC

FRAPORT (FRA GY) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC

WIRECARD (WDI GY) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY

CAC

Air France (AF FP) – October load factor 87.5% vs. Prev. 87.0% Y/Y. Passengers +3.3% to 9.2mln. RPK +3.8%, ASK +3.8%. (Newswires)

OTHER FRENCH COMPANIES

Natixis (KN FP) – Q3 net EUR 422mln vs. Exp. EUR 393mln. Revenue EUR 2.38bln vs. Exp. EUR 2.31bln. (Newswires)

Rubis (RUI FP) – Q3 Revenue EUR 1.12bln vs. Prev. EUR 1.01bln. (Newswires)

Eurazeo (RF FP) – Q3 economic revenue +11.5% Y/Y to EUR 1.37bln, consolidated revenue EUR 1.07bln vs. Prev. EUR 1.01bln. (Newswires)

BROKER MOVES

PAN EUROPE

Fincantieri (FCT IM) – 9-month revenue EUR 3.88bln vs. Prev. EUR 3.58bln. 9-month EBITDA EUR 238mln vs. Prev. EUR 233mln (Newswires)

Leonardo (LDO IM) –. 9-month revenue EUR 8.24bln vs. Prev. EUR 7.984bln. 9-month net EBITA EUR 632mln. 9-month net profit EUR 236mln. The Co have confirmed their 2018 guidance. (Newswires)

Telecom Italia (TIT IM) – Q3 revenue EUR 4.67bln vs. Exp. EUR 4.7bln. Q3 EBITDA EUR 2.1bln vs. Exp EUR 2.1bln. 9-month revenues EUR 14.2bln. 9-month EBITDA EUR 6.2bln. 9-month net income EUR 1.2bln. Q3 EBITDA EUR 2.045bln. The Co say they will make good the discussed write-down of EUR 2bln, also confirm that exclusive talks for sale of Persidera unit are underway. (Newswires)

Salvatore Ferragamo (SFER IM) – 9-month revenues EUR 972mln vs. Exp. EUR 968mln. 9-month EBITDA EUR 149mln vs. Exp. EUR 143mln. 9-month net profit of EUR 65mln. (Newswires)

Banks exposed to Mexico – Mexican banks fell overnight amid a surprise proposal from the incoming President AMLO to scrap bank fees. BBVA (BBVA SM) made 28% of its revenue and 34% of its operating income in Mexico last year. (Newswires)

BROKER MOVES

SMI

Richemont (CFR SW) – H1 profit of EUR 2.53bln. H1 sales EUR 6.808bln vs. Exp. EUR 6.858bln. Q3 revenue EUR 6.81bln vs. Exp. EUR 6.9bln. The Co say that all regions with the exception of the Middle East and Africa had higher sales. (Newswires)

Novartis (NOVN SW) – Co. said its Sandoz division is recalling losartan tablets after finding traces of a substance capable of causing cancer in its blood pressure drug. Separately, the Co.is said to have acquired a 20.7% stake in Gamida Cell (GMDA) at the end of October. (Newswires)

UBS (UBSG SW) – US government has filed a civil fraud lawsuit accusing the Co. of defrauding investors in its sale of mortgage-backed securities leading up to the global financial crisis in 2008/09. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SCANDINAVIA

BROKER MOVES

US

* SPX -0.25% at 2807, NDX -0.62% at 7156, DJI +0.04% at 26191. SECTORS: Energy -2.18%, Materials -0.56%, Industrials -0.25%, Cons Discretionary +0.01%, Cons Staples +0.02%, Healthcare +0.01%, Financials +0.32%, Tech -0.20%, Telecoms -0.93%, Utilities -0.26%.

(RANsquawk)