DAILY EUROPEAN EQUITY OPENING NEWS

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

16th April 2019

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 equity markets were mostly higher after the region eventually shrugged off the lacklustre lead from the US where mixed earnings from the large banks dampened risk appetite. ASX 200 (+0.4%) and Nikkei 225 (+0.2%) were initially cautious although sentiment gradually improved with Australia supported amid dovish views on the RBA and with Rio Tinto shares unfazed by weaker production numbers, while the Japanese benchmark just about remained afloat as several telecom names outperformed following reports NTT DoCoMo is to reduce mobile phone rates by as much as 40%. Hang Seng (+0.7%) and Shanghai Comp. (+1.1%) opened lower amid the early cautious tone across the region and tentativeness ahead of key Chinese data including GDP, Industrial Production and Retail Sales which are all due out tomorrow, although Chinese markets steadily improved to outperform their peers in the aftermath of the PBoC’s first liquidity injection in almost a month.

FTSE

Rio Tinto (RIO LN) - Q1 Pilbara iron ore shipments 69.1mln tons vs. Prev. 80.3mln tons Y/Y, Pilbara iron ore production 76.0mln tons vs. Prev. 83.1mln tons Y/Y, copper output 143.9k tons vs. Prev. 139.3k tons Y/Y. (Newswires)

Royal Mail (RMG LN) – Over a fifth of Post Offices could close in the next year according to a survey, as lower wages and falling customer demand make it difficult for postmasters to earn enough. (BBC)

Legal & General (LGEN LN) – Co. voted against over 100 chairmen in 2018 at multiple firms for failing to increase the number of women in the workplace. Co. also states that businesses need to address ‘climate catastrophe’ or face shareholders who refuse to back them. (Guardian/BBC)

OTHER UK COMPANIES

BROKER MOVES

BP (BP/ LN) DOWNGRADED TO OUTPERFORM FROM TOP PICK AT RBC

INTERCONTINENTAL HOTELS (IHG LN) INITIATED OUTPERFORM AT MAINFIRST

DAX

Lufthansa (LHA GY) – Q1 adj. EBIT -EUR 336mln vs. Prev. +EUR52mln; due to higher fuel costs and overcapacity in Europe. Co. affirms FY19 adj. EBIT margin 6.5-8%, sees Q2 unit revenue as increasing. (Newswires)

Deutsche Bank (DBK GY) – US Congressional investigators have subpoenaed the Co. along with multiple other financial institutions as Democrats are stepping up their investigations into President Trump and his associates. (FT)

BMW (BMW GY) – CFO says Q1 sales growth exceeded 10% for brand in China and expects China growth between 5-10% and US market growth 1-5%. Co. has no plans to develop a compact car platform together with another German carmaker. (Newswires) This comes amid rumours that BMW and Daimler (DAI GY) have deepened their alliance.

Daimler (DAI GY) – Co. notes that Mercedes Q1 sales in China were positive. Co. also announced plans to launch an electric compact SUV in 2021. (Newswires)

OTHER GERMAN COMPANIES

Zalando (ZAL GY) – Co. expects Q1 adj. EBIT to be above market consensus and expects gross merchandise volume and revenue growth to be roughly in-line with expectations. (Newswires)

BROKER MOVES

CAC

Vinci (DG FP) – Co. has dismissed rumours regarding ongoing talks with the state on compensation payments for termination of airports concession agreement. Co. also denied that it has requested an amount of compensation and added that it had not received any notice of termination of concession agreement. (Newswires)

Vivendi (VIV FP) – Co.’s Executive Chairman remains confident of achieving “success” in Italy. (Newswires)

OTHER FRENCH COMPANIES

ADP (ADP FP) – March passengers +5.7% Y/Y to 8.7mln, international traffic (ex-Europe) +5.9% and European traffic (ex-France) +4.7%. (Newswires)

BROKER MOVES

ATOS (ATO FP) REITERATED OVERWEIGHT AT JP MORGAN

ACCOR (AC FP) INITIATED UNERPERFORM AT MAINFIRST

PAN EUROPE

UniCredit (UCG IM) – Co. have agreed to pay USD 1.3bln regarding allegations that it violated multiple US sanctions programmes. Co. state the settlement is fully covered by their provisions and would credit a EUR 300mln after-tax addition to Q1 due to the remaining provisions being released. (FT)

Gemalto (GTO NA) – 97% of Co. shares have been tendered to Thales (HO FP) offer. Thales will initiate the statutory buy-out proceedings to obtain 100% of Gemalto shares as soon as possible. Cos will ask Euronext to delist Gemalto shares shortly after Gemalto’s AGM on May 28th 2019. (Newswires) 

Parmalat (PLT IM) – Italian Supreme Court ordered Co. to pay Citigroup USD 431mln after rejecting its appeal in the Citigroup damage case. (Newswires)

BROKER MOVES

TOMTOM (TOM2 NA) UPGRADED TO BUY FROM HOLD AT KEPLER CHEUVREUX

SMI

Novartis (NOVN SW) – Co. announced that US regulators accepted its filing for Brolucizumab and expects to launch the drug by year-end if it is approved. (Newswires)

OTHER SWISS COMPANIES

BROKER MOVES

SWISS RE (SREN SW) REITERATED OVERWEIGHT AT JP MORGAN

SCANDINAVIA

Telia (TELIA SS) – Co. has decided to implement a new share buyback program of SEK 5bln. (Newswires)

BROKER MOVES

US

* SPX -0.1% at 2906, NDX +0.0% at 7629, DJI -0.1% at 26384. SECTORS: Communications +0.4%, Cons Discretionary +0.2%, Cons Staples +0.7%, Energy -0.6%, Financials -0.6%, Healthcare +0.4%, Industrials -0.5%, Materials -0.5%, Tech +0.0%, Telecoms +0.2%, Utilities +0.0%.

16 Apr 2019 - 06:49- Research Sheet- Source: RANsquawk

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