DAILY EUROPEAN EQUITY OPENING NEWS: BT Group's (BT A/LN) EE is planning to threaten the telecoms regulator Ofcom with a High Court challenge on Monday, over its planned auction of mobile spectrum

**EUROPEAN EQUITY COVERAGE WILL ONLY COVER COMPANIES WITH A MARKET CAP GREATER THAN GBP 2BLN OR EUR 2BLN**

 

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

21st August 2017

ASIA

Asian equity markets traded mostly lower with the Nikkei 225 down by 0.4% amid geopolitical tensions on the Korean peninsula. Tensions ratcheted up again as the US and South Korea were set to begin military drills. North Korea responded, threatening a “merciless strike” on the US. Nevertheless, the Kospi was relatively resilient, trading lower by just 0.1%. The ASX 200 has been driven by some major earnings with Fortescue Metals rising over 6% after doubling their dividend. Chinese markets were higher, lifted by the telecoms sector after China Unicom confirmed a share placement to tech titans Alibaba, Tencent and Baidu.

 

FTSE

BT Group (BT A/LN) – Co.’s EE is planning to threaten the telecoms regulator Ofcom with a High Court challenge on Monday, over its planned auction of mobile spectrum. (Newswires)

Hikma Pharmaceuticals (HIK LN) - U.S. subsidiary has raised the price of a common diarrhea drug by more than 400 percent and is charging more for five other medicines as well. (FT)

BHP Billiton (BLT LN) – Co. will deliver a six-fold increase in profit and a three-fold increase in its final dividend when it announces its full-year earnings on Tuesday, but it is questions over the future of its controversial shale division. (AFR)

OTHER UK COMPANIES

Rathbone Brothers (RAT LN) – Co. is in talks with rival Smith & Williamson about a potential GBP 2bln merger. (FT)

UK Betting Names – Industry’s GBP 1.4bln spending spree provokes call for curbs as children are exposed to a huge rise in gambling adverts. (The Times)

BROKER RECOMMENDATIONS

BRITISH LAND (BLND LN) DOWNGRADED TO HOLD FROM BUY AT HSBC

RSA (RSA LN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC

JUPITER FUND MANAGEMENT (JUP LN) RAISED TO NEUTRAL FROM UNDERPERFORM AT MACQUARIE

IMPERIAL BRANDS (IMB LN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM AT RBC

 

DAX


Merck (MRK GY) – CEO Kuhnert said the company could make acquisitions up to EUR 500mln. (Newswires)

Bayer (BAYN GY) - A federal jury has cleared the Co. and Johnson & Johnson (JNJ) of liability in the third case to go to trial out of thousands of lawsuits claiming the drugmakers' blood thinner Xarelto led to severe internal bleeding. (Newswires)

OTHER GERMAN COMPANIES

 

BROKER RECOMMENDATIONS

 

CAC

Large caps - The French government is reportedly considering a temporary tax on some of the nation's largest companies with revenues over EUR 1bln. (Newswires) 

Air France (AF FP) – CFTC union has filed a strike notice from September 1st. (Newswires)

OTHER FRENCH COMPANIES

 

BROKER RECOMMENDATIONS

TOTAL (FP FP) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

 

PAN-EUROPE

Fiat Chrysler (FCA IM) China’s Great Wall is said to be interested in the company’s Jeep unit. (Newswires)

BROKER RECOMMENDATIONS

REPSOL (REP SM) DOWNGRADED TO EQUAL WEIGHT FROM OVERWEIGHT AT BARCLAYS

ENI (ENI IM) DOWNGRADED TO UNDERWEIGHT FROM EQUAL WEIGHT AT BARCLAYS

SMI

OTHER SWISS COMPANIES

Dufry (DUFN VX) – Chinese conglomerate HNA has completed the acquisition of a 16.2% stake in the Co. from Singaporean sovereign funds GIC and Temasek. (Newswires)

BROKER RECOMMENDATIONS

STATOIL (STL NO) DOWNGRADED UNDERWIGHT FROM EQUAL WEIGHT AT BARCLAYS

SCANDINAVIA

N/A

BROKER RECOMMENDATIONS

 

US

Stocks were soggy in early trade, and the S&P 500 was shaping up for a fourth day of losses. However, it looked as though the main indices managed to snap a three-day run of negative closes after Bannon was removed, although some selling into the close meant all three finished lower on the day and the week. S&P 500 -0.18% at 2,425.52, DJIA -0.35% at 21,674.38, NDX -0.09% at 5,790.91.

 

Friday’s best performing sectors: Utilities +0.64%, Energy +0.60%, Materials +0.11%

Friday’s worst performing sectors: Telecoms -0.54%, Consumer Discretionary -0.46%, Healthcare -0.42%

 

 

 

 

 

21 Aug 2017 - 06:46- Fixed IncomeResearch Sheet- Source: Newswires

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