DAILY EUROPEAN EQUITY OPENING NEWS: Siemens (SIE GY) and Alstom (ALO FP) are said to have finalised rail unit merger details with Siemens owning slightly more than 50%

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26th September 2017

ASIA

Asia equity markets lacked any solid direction after the weak momentum from US where all 3 major indices closed negative due to geopolitical concerns, while the Nasdaq took the brunt of the worst day for the tech sector in over a month. This pressured ASX 200 (-0.1%) and Nikkei 225 (-0.4%), although strength in energy names following a 3% rally in crude later helped stem downside in Australia. Hang Seng (Unch.) and Shanghai Comp. (+0.1%) also conformed to the lacklustre, indecisive tone amid a lack of drivers and a weaker PBoC liquidity operation.

European Opening Calls: FTSE 7302 +0.01%, DAX 12562 -0.26%, CAC 5261 -0.11%, MIB 22362 -0.12%, IBEX 10207 -0.09%

FTSE

IAG (IAG) – The company confirms bid for Air Berlin (AB1 GY). (Newswires)

OTHER UK COMPANIES

 

BROKER RECOMMENDATIONS

ASTRAZENECA (AZN LN) UPGRADED TO OUTPERFORM FROM NEUTRAL AT EXANE

TULLOW OIL (TLW LN) UPGRADED TO OUTPERFORM FROM SECTOR PERFORM

WPP (WPP LN) DOWNGRADED TO EQUAL WEIGHT FORM OVERWEIGHT AT MORGAN STANLEY

 

 

DAX

Thyssenkrupp (TKA GY) – Co. raised EUR 1.4bln through share sale to bolster its balance sheet ahead of a planned merger with Tata Steel. (Newswires) 

Siemens (SIE GY)/Alstom (ALO FP) - The companies are said to have finalised rail unit merger details with Siemens owning slightly more than 50%. French authorities are not worried about anti-trust issues regarding the Siemens/Alstom rail deal, according to sources. The sources added some technical adjustments could be possible although analysis shows nothing would block the deal. (Newswires)  

Volkswagen (VOW3 GY) – The company’s truck unit is to collaborate with Navistar (NAV) on electric medium duty truck for North-America. (Newswires)

OTHER GERMAN COMPANIES

 

BROKER RECOMMENDATIONS

EVONIK (EVK GY) UPGRADED TO OUTPERFORM FROM NEUTRAL AT CREDIT SUISSE

MERCK (MRK GY) INITIATED WITH A BUY RATING AT UBS

 

 

CAC

Engie (ENGI FP) – China resources has made an offer for the Co.’s Loy Yang B coal-fired power station; could reach a potential valuation of EUR 1bln. (Newswires)

OTHER FRENCH COMPANIES

BROKER RECCOMENDATIONS

TOTAL (FP FP) DOWNGRADED TO SECTOR PERFORM FROM OUTPERFORM AT RBC

 

PAN-EUROPE

Mapfre (MAP SM) – The company are to re-evaluate its expectations of ROE and average combined ratio for 2016-2018. (Newswires)  

Fincantieri (FCT IM) – Co. are to retain control of 51% of STX-France. (Newswires)

BROKER RECCOMENDATIONS

TODS (TODS IM) DOWNGRADED TO SELL FROM NEUTRAL AT ODDO SECURITIES

FERRAGAMO (SFER IM) UPGRADED TO BUY FROM NEUTRAL AT ODDO SECURITIES

 

 

 

 

SMI

Nestle (NESN VX) – Co. intends to accelerate buybacks by spreading them evenly over three years, while they also affirm guidance (Newswires)

BROKER RECCOMENDATIONS

ROCHE (ROG VX) DOWNGRADED TO UNDERPERFORM FROM NEUTRAL AT EXANE

SWATCH (UHR VX) UPGRADED TO BUY FROM NEUTRAL AT ODDO SECURITIES

RICHEMONT (CFR VX) UPGRADED TO BUY FROM NEUTRAL AT ODDO SECURITIES

 

 

SCANDINAVIA

BROKER RECOMMENDATIONS

STOREBRAND (STB NO) UPGRADED TO SECTOR PERFORM FROM UNDERPERFORM AT RBC

NOVO NORDISK (NOVOB DC) DOWNGRADED TO NEUTRAL FROM OUTPERFORM AT EXANE

 

 

 

 

US

US stocks started lower, and they took a fresh hit on North Korea’s Monday rhetoric and never really looked like recovering. The S&P 500 closed down 0.22% at 2,496.64, the NASDAQ 100 closed down 1.10% at 5,867.35, and the Dow closed down 0.24% at 22,296.31.

Best Performing Sectors in the S&P 500: IT (-1.42%) Health Care (-0.33%) Consumer Discretionary (-0.20%)

Worst Performing Sectors in the S&P 500: Energy (+1.47%) Telecoms (+0.86%) Utilities (+0.84%)

 

 

 

26 Sep 2017 - 06:52- EnergyResearch Sheet- Source: RANsquawk

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