DAILY EUROPEAN EQUITY OPENING NEWS: Bayer (BAYN GY) - EU antitrust regulators are set to warn the Co. that its planned purchase of Monsanto (MON) may hurt competition, a move that would force Bayer to offer concessions

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11th December 2017

ASIA

Asia equity markets began the week mostly positive after last Friday’s gains on Wall St and better than expected US NFP jobs data, although the upside in Asia-Pac bourses were contained ahead of this week’s central bank-heavy roster. ASX 200 (+0.1%) and Nikkei 225 (+0.4%) were higher with strength in commodity-related stocks in Australia just about keeping the index afloat, while focus was on AWE shares which rallied over 15% after Co. was subject to a take-over offer. Hang Seng (+0.6%) and Shanghai Comp. (+0.5%) were also in the green after the PBoC resumed liquidity operations, although a miss on inflation data over the weekend somewhat capped the advances.

FTSE

BAE Systems (BA/ LN) – Qatar confirmed that it would go ahead with the purchase of Typhoon fighter jets worth around GBP 5bln. (The Times)

Unilever (ULVR LN) - Apollo Global Management, Archer Daniels Midland (ADM) and former chief executive of Germany's Grohe, David Haines, are preparing to submit a new bid in a USD 7bln auction for Co.’s spreads business. (FT)

LSE (LSE LN) – Co. has begun interviewing candidates for chief executive, a sign of the board's growing confidence it will fend off an activist investor's attempt to oust the chairman. (FT)

UK Energy Suppliers – Government officials have admitted the plan to put a cap on standard energy prices could scupper growing competition in the energy market, unless the regulator keeps bills high enough to make it worthwhile for consumers to switch. (Telegraph)

OTHER UK COMPANIES

Ocado (OCDO LN) – Co. is poised to announce more deals to sell its technology abroad as talk of a potential takeover bid continues to linger. (City Am)

BROKER RECOMMENDATIONS

INMARSAT (ISAT LN) DOWNGRADED TO NEUTRAL FROM BUY AT GOLDMAN SACHS

 

 

DAX

Deutsche Bank (DBK GY) -  The CFO tells Sueddeutsche the bank remains well capitalised, adding that they are able to cope with the stricter capital rules on banks that were agreed last week. (Newswires)

Fresenius Medical (FMS GY) – The co. plans to buy back up to a maximum of 660k shares. (Newswires)

Bayer (BAYN GY) - EU antitrust regulators are set to warn the Co. that its planned purchase of Monsanto (MON) may hurt competition, a person familiar with the matter said, a move that would force Bayer to offer concessions to address the concerns. (Newswires)

Wirecard (WDI GY) – Co. has entered into an exclusive agreement with Credit Agricole Payment Services. (Newswires)

RWE (RWE GY) – An executive from the Co. says that they wish to play a role in sector consolidation. (Newswires)

 

OTHER GERMAN COMPANIES


Steinhoff (SNH GY) – Co. said it had appointed a new board subcommittee to strengthen independent governance and that trading in its businesses was continuing in the pre-Christmas period. (Newswires)

 

BROKER RECOMMENDATIONS

 

UNIPER (UN01 GY) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT MACQUARIE

 

ALLIANZ (ALV GY) UPGRADED TO EQUAL WEIGHT FROM UNDERWEIGHT AT BARCLAYS

 

SIEMENS (SIE GY) UPGRADED TO OVERWEIGHT FROM EQUAL WEIGHT AT MORGAN STANLEY

 

HANNOVER RE (HNR1 GY) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS


 

 

CAC

Engie (ENFI FP) – CEO says that the Co. is well placed to meet their cost savings targets. (Newswires)

PSA Group (UG FP) – Opel could report a loss for 2017 in the high 3 digit million level. (Newswires)

 

OTHER FRENCH COMPANIES

Aeroports de Paris (ADP FP) - France is said to have hired Bank of America to study the privatisation of the co. (Newswires)

BROKER RECCOMENDATIONS

LOREAL (OR FP) UPGRADED TO BUY FROM NEUTRAL AT GOLDMAN SACHS

 

 

PAN-EUROPE

BROKER RECOMMENDATIONS

 

SMI

Roche (ROG SW) – Co. said an experimental drug added to standard therapy led to a far higher rate of remission and helped patients with an advanced, aggressive blood cancer live significantly longer than the standard treatment alone. (Newswires)

Novartis (NOVN SW) - Patients with an advanced form of an aggressive blood cancer who had initially responded to Novartis' new type of gene-modifying immunotherapy continued to respond at least six months after treatment. (Newswires)

BROKER RECCOMENDATIONS

ZURICH INSURANCE (ZURN VX) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

SWISSCOM (SCMN VX) DOWNGRADED TO NEUTRAL FROM BUY AT CITI

 

 

SCANDINAVIA

BROKER RECOMMENDATIONS

 

 

 

US

 

 

Best-Performing Sectors:

Worst-Performing Sectors:

 

 

11 Dec 2017 - 06:52- Research Sheet- Source: RANsquawk

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