DAILY EUROPEAN EQUITY OPENING NEWS

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

25th January 2019

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

ASIA

A jubilant tone was observed across the Asia-Pac majors heading into the weekend, which followed the mostly positive performance of their global peers amid firmer US PMI data and a dovish tone from the ECB. ASX 200 (+0.7%) and Nikkei 225 (+1.1%) were buoyed by broad gains across the sectors and with Japanese exporters supported by favourable currency flows, although not all was rosy as healthcare lagged in Australia and steep losses in AMP Capital. Elsewhere, Hang Seng (+1.5%) and Shanghai Comp. (+0.9%) advanced as the 2nd phase of the PBoC’s RRR cut took effect and with outperformance seen in tech names including Tencent after regulators approved 2 of the Co.’s mobile phone games. However, gains in the mainland were initially capped after the PBoC‘s continued inaction resulted to a net weekly drain of CNY 770bln, in which it cited high liquidity levels due to the RRR cut.

FTSE

RBS (RBS LN)/Santander (SAN SM) – Santander has dropped out of the race for a share of RBS’ GBP 775mln business banking cash, citing political uncertainty in the UK. (The Telegraph)

OTHER UK COMPANIES

BROKER MOVES

RIO TINTO (RIO LN) REITERATED UNDERPERFORM AT RBC

DAX

Telecom Names – Submission deadline ends for Co’s willing to partake in Germany’s 5G mobile spectrum auction. (Newswires)

Utility Names – Germany’s coal commission are expected to set a date for the country’s exit from coal. (Newswires)

BROKER MOVES

CAC

Air Liquide (AI FP) – Co. have acquired a 18.6% stake in Hydrogenics Corporation; also entered into an agreement to jointly develop proton exchange membrane electrolysis technologies. (Newswires)

Renault (RNO FP) – Japan Trade Minister Seko says the Co’s alliance with Nissan must maintain stable; additional hopes that productive talks are held regarding the alliances future. (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) – Co. are seeking a 1% fee increase in 2019. (Newswires)

Air France (AF FP) – Pilot unions have reached an agreement in wage talks. (Le Figaro)

BROKER MOVES

KLEPIERRE (LI FP) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS

PAN EUROPE

Tech names – US-listed Intel (INTC) shares fell over 7% after-market following mixed earnings and a cut to Q1 guidance. Q4 Adj. EPS USD 1.28 vs. Exp. USD 1.22, revenue USD 18.7bln vs. Exp. USD 19.01bln; boosts dividend by 5%. (Newswires)

BROKER MOVES

TODS (TOD IM) REITERATED UNDERPERFORM AT RBC

SMI

Givaudan (GIVN SW) – FY18 revenue CHF 5.53bln vs. Exp. CHF 5.50bln. FY18 net CHF 663mln vs. Prev. CHF 720mln, EBITDA CHF 1.15bln vs. Exp. CHF 1.18bln. Co. states they intend to maintain its current dividend practice as part of their mid-term strategy. (Newswires)

Swatch (UHR SW) – Co. to propose repurchased shares are used to reduce capital. Co. have ended their current buyback programme; CHF 959mln worth of shares repurchased. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SGS (SGSN SW) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE

SWATCH (UHR SW) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT CREDIT SUISSE

SCANDINAVIA

Telia (TELIA SS) – Q4 revenue SEK 22.2bln vs. Exp. SEK 22.4bln, adjusted net SEK 1.83bln vs. Exp. SEK 1.15bln. Q4 adjusted EBITDA of SEK 6.735bln vs. Exp. SEK 7.05bln, +3.3%. Q4 net sales, excluding acquisitions and disposals declined 2.9%. Co. targets a 3% reduction in Swedish operating expenses. (Newswires)

Ericsson (ERICB SS) – Q4 net SEK -6.5bln vs. Prev. SEK -18.5bln. Adjusted operating income SEK 2.6bln vs. Exp. SEK -3.0bln. Q4 revenue SEK 63.8bln vs. Exp. SEK 61.0bln. Q4 adjusted EBIT SEK 2.6bln. Co. affirms their FY20 revenue target of SEK 210-220bln. Co. sees restructuring costs of SEK 2-5bln in 2019 vs. SEK 8bln in 2018. (Newswires)

Maersk (MAERSK DC) – CEO expects a pickup in Q4 container shipments to be followed by a slowdown after peaking at the Chinese New Year. (Newswires)

BROKER MOVES

KONE (KNEBV FH) REITERATED UNDERWEIGHT AT JP MORGAN CHASE

US

SPX +0.12% at 2641, NASDAQ +0.66% at 6702, DJI +0.09% at 24554. SECTORS: Energy +0.55%, Materials -0.54%, Industrials +0.59%, Cons Discretionary -1.44%, Cons Staples +0.32%, Healthcare -0.97%, Financials +0.27%, Tech +0.58%, Telecoms -1.37%, Utilities +0.10%.

(RANsquawk)