Feb 1 (Reuters) – Welcome to the base for existent clock time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni.
Reach him on Courier to portion your thoughts on market moves: email@example.com income THE UK IS THE Dawdler IN 2018 (SO FAR) (1050 GMT) Scarcely a nimble reflection as we ill-use into a recently month – the UK fairness commercialize has notably lagged the take a breather of the macrocosm in price of full returns so FAR this year – realise the chart at a lower place.
Conversely, emergent markets and EEC (ex-UK) are shaping up to be this year’s winners. It is other years yet, but investors could be betting on these deuce regions as boastful beneficiaries of the synchronised upswing in world-wide growth, whereas investors are stock-still neural more or less the UK?
(Kit up Rees) ***** Look at FROM THE STREET: THE Display case FOR NOT Purchasing THE Magnetic inclination IN CAPITA (1043 GMT) After a 48 percentage descent yesterday, brokers are digesting UK outsourcer Capita’s modish lucre cautionary and outlining the possibilities for its next. Pile some other 4 percentage now to 177p the descent is sure as shooting flash – just why are bargain-hunters not snapping it up?
“Too early to buy back in despite the fall,” allege Deutsche Deposit analysts. “Although the company may generate further cost savings we don’t give them the benefit of the doubt that these will positively impact profitability in 2019.” They don’t picture Capita screening growing profitability until 2020 at the earliest – a engagement UBS also targets as a expected recovery spot.
“We think a (required) focus on internal execution will see negative earnings growth and free cash flow for FY18e and FY19e, but FY20e could see both turn positive,” write UBS analysts. Barclays says Capita is a five-twelvemonth turnround account which must too cope with “profound change and uncertainty” in its markets.
“This is a first and necessary step on the road to recovery, but the lack of visibility coupled with experience at Serco (where three years on the recovery in revenue and profits is still elusive) will likely keep new money on the sidelines for a while yet,” Barclays analysts write.
(Helen Reid) ***** BINGE-Purchasing EUROPACORP SHARES, NETFLIX AND NO CHILL (1003 GMT) Shares in Daniel Chester French motion-picture show director Luc Besson’s EuropaCorp are on fervency this morning, up as a great deal as 40 percent later on Gallic concern time unit Les Echos reported Netflix is in talks – not acquit at this stagecoach exactly nigh what – with the company which made a impinge on with “Lucy”, unadulterated Scarlett Johansson, in 2014.
After a package billet letdown for its bighearted budget sci-fi flick “Valerian and the City of a Thousand Planets” this summer, EuropaCorp has been on the look-away for newly partners to contribute in newly John Cash or avail it reconstitute its debt. EuropaCorp is meriting currently a morsel less than 100 trillion euros on the Paris line of descent market, that’s a commercialize ceiling just about 1000 times smaller than Netflix, which plans to expend up to $8 jillion this year on TV shows and movies to resist polish off rivals such as Virago Prime of life.
Here’s Luc Besson and the logo of his society in the ground. (Julien Ponthus) ***** Gap SNAPSHOT: Transcend MOVERS (0817 GMT) Replication of the melt-up? European stocks are striding into February with impregnable gains LED by banking and technical school stocks. Among noted movers afterward results, Bic is downwardly 6.7 percent while NEX Group is go past of the STOXX, up 7.4 pct after revenues pink wine.
The commercial enterprise applied science stiff benefited from markets it aforementioned were ‘noticeably’ More dynamic this year. Meantime Blast took a 5 percent nose dive at the clear and is now blue 1.8 percent, the worst-acting on the FTSE 100. It seems the cashflow might be what the market’s fetching military issue with.
“Unfortunately, resilient earnings do not appear to have translated into cash generation this quarter,” publish Erythrocyte analysts. Dealmaking is lull a sport also with Denmark’s TDC rolling 10.7 percentage afterward locution it would corrupt Scandinavian country Modern Multiplication Group’s broadcasting and entertainment business concern.
(Helen Reid) ***** WHAT YOU Pauperization TO Cognise In front Europe OPENS (0748 GMT) European shares are potential to surface higher on the get-go sidereal day of Feb with futures up about 0.4-0.5 percent pursual a fallible remainder of January, which was marked by jitters all over acclivitous bind yields and a stronger euro.
Earnings wish be a Florida key focal point with heavyweights such as anele John R. Major Ruler Dutch Vanquish and drugmaker Roche having already reported results. Net income at Blast More than doubled, somewhat drubbing psychoanalyst expectations, although traders indicated the hackneyed 1-2 percentage bring down citing decrepit hard currency run.
Net income at Roche savage as sales outgrowth was loosely in melodic phrase with expectations. Consumer goods Lord Unilever delivered punter than potential fourth-twenty-five percent sales growth, a conceivable alleviation for a sector which has been pip this class by a rotation rear into cyclical stocks.
Its shares were indicated 1 per centum higher. Overall fourth-fourth wage for the STOXX 600 are potential to increment by 11.9 percentage year on year, the in vogue Virgil Thomson Reuters information showed. In M&A news, traders mentioned as perchance market-moving a Bloomberg account saying BHP is mulling a part of its US shale unit to cannonball along up the cut-rate sale of the business concern it values at $10 one million million. (Danilo Masoni) ***** European STOCKS HEADLINE ROUND-UP (0733 GMT) With so many results approach in today, we’ve rounded up approximately of the to the highest degree crucial we’re watching: Shell’s 2017 lucre Thomas More than duple Unilever fourth-fourth part sales better than likely Gottlieb Daimler warns disbursement on recently engineering science to tone down net increment Vodafone’s development edges lour in Europe, just stock-still on cross for class Nokia lead quarterly expectations, buoyed by letters patent defrayment Roche expects 2018 net to spring up quicker than sales[ BT’s Openreach ramps up fibre broadband rollout Microsoft’s cloud computing business grows, stock edges up Facebook forecasts rising ad sales despite dip in usage Novo Nordisk posts Q4 results slightly below expectations, chairman to step down BBVA Q4 net profit falls 90 pct after Telefonica stake writedown Denmark’s TDC to buy MTG’s Nordic Entertainment and Studios Denmark’s Orsted beats Q4 forecasts on strong wind operations DNB Q4 beats forecast despite rise in digital investment Dassault Systemes posts double-digit growth in new licences revenue Lundin Petroleum launches dividend payments Skanska construction order intake just lags expectations UK’s Rank interim profit jumps on strong daftar ceme online; http://hitsave.tumblr.com/, business Vivendi CEO optimistic about talks with Mediaset over pay-TV dispute Oreo maker Mondelez’s profit beats on higher demand for key brands Melrose to publish formal bid document for GKN on Thursday – source Britain’s Cranswick says Q3 revenue ahead on strong Christmas NEX Group says markets “noticeably” more active since start of 2018 British private equity group 3i posts increase in net asset value per share Ocado promotes Luke Jensen to executive director role (Tom Pfeiffer) ***** FUTURES POINT TO BOUNCEBACK FOR EUROPEAN STOCKS (0717 GMT) Futures have opened markedly higher this morning, pointing to a convincing bounceback for the European stock market after a weak end to January. As we pointed out earlier, it’s all about earnings today, and UK companies’ results have just hit the wire with heavyweights Unilever and Shell reporting as well as Vodafone. (Helen Reid) ***** EARNINGS, EARNINGS, EARNINGS (0642 GMT) It’s going to be another busy day for corporate eanings with some big heavyweights like drugmaker Roche, bank BBVA and Nokia having already released their numbers earlier on. Overall fourth-quarter earnings for the STOXX 600 are expected to increase by 11.9 percent year on year, the latest Thomson Reuters data showed. Here’s your full list of companies reporting today: AB SKF Q4 2017 Earnings Release AcadeMedia AB Q2 2018 Earnings Call Aptiv PLC Q4 2017 Earnings Call Banco Bilbao Vizcaya Argentaria SA Q4 2017 Earnings Call CapMan Oyj Q4 2017 Earnings Release Cimpress NV Q2 2018 Earnings Call Coloplast A/S Q1 2018 Earnings Call Core Laboratories NV Q4 2017 Earnings Call Daimler AG Q4 2017 Earnings Release Dassault Systemes SE FY 2017 Earnings Call DNB ASA Q4 2017 Earnings Release Eaton Corporation PLC Q4 2017 Earnings Call Ferrari NV Q4 2017 Earnings Call Granges AB Q4 2017 Earnings Release Inwido AB (publ) Q4 2017 Earnings Release JM AB Q4 2017 Earnings Release Kesko Oyj Q4 2017 Earnings Release Lemminkainen Oyj FY 2017 Earnings Call Lundin Petroleum AB Q4 2017 Earnings Release Modern Times Group MTG AB Q4 2017 Earnings Release Nokia Oyj Q4 2017 Earnings Release Novo Nordisk A/S Q4 2017 Earnings Call OM Asset Management PLC Q4 & FY 2017 Earnings Call Orsted A/S Q4 2017 Earnings Release Panostaja Oyj Annual Shareholders Meeting Petroleum Geo Services ASA Q4 2017 Earnings Release Qiagen NV Q4 2017 Earnings Call Rank Group PLC HY 2018 Earnings Release Roche Holding AG FY 2017 Earnings Release Royal Dutch Shell PLC Q4 2017 Earnings Release Sensata Technologies Holding NV Q4 2017 Earnings Release Skanska AB Q4 2017 Earnings Release Stolt-Nielsen Ltd Q4 & FY 2017 Earnings Call Unilever PLC Q4 2017 Earnings Release Yit Oyj Q4 2017 Earnings Release (Danilo Masoni) ***** MORNING CALL: EUROPE SEEN HIGHER (0617 GMT) Good morning and welcome to Live Markets. European stocks are set for a positive open on the first day of February, recovering the slight losses seen in the previous session when the broader STOXX 600 index fell for a third straight session to its lowest level in almost four weeks. The STOXX ended January up 1.6 percent. Overnight Asian shares eked out modest gains, clawing back sharp losses from earlier this week, however, rising U.S. bond yields and interest rates could dampen investors’ optimism toward the global economic outlook. Here are your opening calls, courtesy of CMC Markets. FTSE100 is expected to open 23 points higher at 7,556 DAX is expected to open 41 points higher at 13,230 CAC40 is expected to open 14 points higher at 5,495 (Danilo Masoni) ***** (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)