**EUROPEAN EQUITY COVERAGE WILL ONLY COVER COMPANIES IN THE STOXX 600 OR COMPANIES OF SYSTEMIC IMPORTANCE TO PARTICULAR SECTORS**
7th 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
Democrats are projected to take control of the House after having gained an estimated 26 seats, while the Republicans are projected to have picked up a net 4 seats at the Senate. (Newswires) Note, the outcome of Democrats taking control of the house and Republicans of the Senate was the market consensus. See below for market moves and implications.
Healthcare names – As US Democrats are poised to win majority in the House of Representatives, the party pledged to lower drug prices in a response to American citizens’ concerns about healthcare.
Asian equity markets traded cautious as all focus centred on the US mid-term election results in which the Democrats took control of the House and Republicans retained the Senate which was the consensus heading into the election. A strong start for the Democrats weighed on US equity futures in early trade, although stock futures then recovered after further results and projections trickled in which suggested the unlikelihood of a Blue Tsunami (Democrat-controlled House and Senate) as the Republicans won in key Senate battlegrounds such as Indiana and tightly-contested Texas. As such, there was a non-committal tone in most Asia bourses with ASX 200 (+0.4%) and Shanghai Comp. (-0.4%) rangebound, while Nikkei 225 (+0.4%) was bolstered by recent favourable currency moves and the Hang Seng (-0.1%) briefly outperformed amid a tech-led surge, before slipping into the red.
British Travel Companies – Spain’s tourism minister, Reyes Maroto, is holding talks this week with some of Britain’s biggest travel companies including Thomas Cook (TCG LN); to create proposals in case the UK leaves the EU with no withdrawal agreement. (The Independent)
OTHER UK COMPANIES
WEIR (WEIR LN) MAINTAINED WITH AN OVERWEIGHT RATING AT JP MORGAN CHASE REITERED BUY AT UBS
ASSOCIATED BRITISH FOODS (ABF LN) REITERATED BUY AT UBS
DIRECT LINE (DLG LN) REITERATED BUY AT UBS
BMW (BMW GY) – Q3 EBIT EUR 1.75bln vs. Exp. EUR 1.91bln. Revenue EUR 24.7bln vs. Exp. EUR 23.6bln. Net EUR 1.41bln vs. Prev. EUR 1.79bln. Co. reaffirmed FY 18 auto margin, while adding that conditions were challenging in FY 2018. (Newswires)
Volkswagen (VOW3 GY) – Co will stop building Passat branded cars at its Emden, Germany plant by 2022; according to Hanover News. (Newswires)
Adidas (ADS GY) – Q3 Revenue EUR 5.87bln vs. Exp. EUR 5.91bln. Net EUR 656mln vs. Prev. EUR 549mln. Operating profit EUR 901mln vs. Prev. EUR 795mln. Co. raised 2018 outlook. (Newswires)
Thyssenkrupp (TKA GY) – Cevian aims to name Martin Merz, former Bosch manager, to fill one of two vacant supervisory board posts at the Co; adding that a new external chairman to be announced on November 20th. (Newswires)
Munich Re (MUV2 GY) – 9M profit of EUR 2.038bln, therefore on track to achieve profit target of EUR 2.1- EUR 2.5bln. Q3 profit of EUR 438mln vs. Prev. loss EUR 1.44bln. The Co affirms profit guidance despite natural catastrophes causing high losses in Q3. Co. is on track to achieve FY net target(Newswires)
OTHER GERMAN COMPANIES
Fraport (FRA GY) – Co. says revenue, EBITDA and net profit are expected to reach the upper level of margins forecasted in 2017. Co. noted a 14.3% increase in group revenue to EUR 2.55bln. Co.’s board upgraded traffic outlook. (Newswires)
Brenntag (BNR GY) – Q3 operating EBITDA +7.8% to EUR 233mln. Net profit +20% to EUR 121mln. Q3 profit after tax EUR 110.5mln. Co. confirms 2018 guidance. (Newswires)
Osram Licht (OSR GY) – Q4 net loss EUR 5mln vs. Prev. profit EUR 40mln. Adj. EBITDA EUR 147mln vs. Prev. EUR 160mln. Revenue EUR 1.06bln vs. Prev. EUR 1.036bln. Co. extended its share buyback programmed by up to EUR 400mln while announcing it will keep dividend stable. (Newswires)
Symrise (SY1 GY) – 9-month EBITDA of EUR 475.7mln vs. prev. EUR 485.2mln; margin remined at 20%. 9-month organic sales increase of 8.8%. The Co raise their sales objective for the second time this year, aim at achieving organic sales growth of over 8% for 2018 fiscal year; well positioned to compensate for market shortages. (Newswires)
SIEMENS (SIE GY) MAINTAINED WITH AN UNDERWEIGHT RATING AT JP MORGAN CHASE
Credit Agricole (ACA FP) – Q3 net profit EUR 1.10bln vs. Exp. EUR 1.03bln. Revenue EUR 4.80bln vs. Exp. EUR 4.86bln. (Newswires)
Veolia (VIE FP) – 9-month revenue EUR 18.76bln, up 4.3%. 9-month EBITDA of EUR 2.42bln, up 5.1%. The Co confirms outlook for 2018 EBITDA growth greater than 2017, 2019 EBITDA between EUR 3.3bln and EUR 3.5bln. (Newswires)
OTHER FRENCH COMPANIES
Eiffage (FOUG FP) – Co. reports its 9-month sales up 10.7% at EUR 11.9bln and maintains its full year guidance. (Newswires)
EDF (EDF FP) – Co. announces interim cash dividend of EUR 0.15/shr for 2018. (Newswires)
Enel (ENEL IM) – Co. reports 9-month ordinary EBITDA of EUR 12.006bln vs. Exp. EUR 11.769bln, confirmed its 2018 EBITDA and profit guidance as well as approving its 2018 interim dividend of EUR 0.14/shr. Sees full-year dividend of EUR 0.28/shr or 70% of ordinary profits, whichever is highest. The Co have downplayed talk that it was interested in buying Colombian distributor Electrivaribe though it cited acquisitions as one of the reasons for raising 2018 debt guidance. (Newswires)
Telecom Italia (TIT IM) – Co.’s board are to make a decision on fixed line network impairments tomorrow, according to sources. (Newswires)
Brunello Cucinelli (BC IM) – The CEO sees investments worth between 7-8% of revenues in two years; adding that CEO says 2018 will be a record year, revenue will grow by double digits, EBITDA and profit will grow further. Also, sees considering entering e-commerce in China, which could start by mid-2019; CEO has no evidence of economic slowdown in China. (Newswires)
Repsol (REP SM) – Co. are looking at a potential EUR 1bln+ capital reduction, according to reports. (Newswires)
ABN AMRO (ABN NA) – Q3 Net profit EUR 725mln vs. Prev. EUR 673mln. Operating result EUR 1.09bln vs. Prev. EUR 0.914bln. Operating income EUR 2.32bln vs. Prev. EUR 2.12bln. CET1 ratio 18.6% vs. Prev. 17.6%. (Newswires)
Spanish Banking Names – The Spanish Supreme Court said they have now reversed the mortgage tax decision ruling, where now customers, not banks, must pay for mortgage stamp duty. (Newswires)
Swiss Life (SLHN SW) – 9M premiums CHF 14.7bln.Net gained assets of CHF 5.2bln in its third party assets managements. Assets under management increased to CHF 66.3bln. Co. is confident it will achieve or exceed all 2018 goals. (Newswires)
OTHER SWISS COMPANIES
* SPX +0.62% at 2755, NDX +0.75% at 6989, DJI +0.69% at 25637. SECTORS: Energy +0.34%, Materials +1.53%, Industrials +1.11%, Cons Discretionary +0.54%, Cons Staples +0.56%, Healthcare +0.51%, Financials +0.52%, Tech +0.61%, Telecoms +0.60%, Utilities +0.76%.