DAILY EUROPEAN EQUITY OPENING NEWS: E.ON (EOAN GY) -The company has reached an agreement with Fortum Corporation on which the company has the right to tender its remaining Uniper (UN01 GY) stake

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27th September 2017

ASIA

Asia equity markets were mixed amid a lack of catalysts and after similar indecisiveness on Wall St. where the DJIA posted a 4th consecutive loss and the Nasdaq outperformed as tech rebounded from its worst performance in over a month. ASX 200 (-0.2%) was negative amid weakness seen in commodity stocks and gold miners after the precious metal slipped below USD 1300/oz, while Nikkei 225 (-0.4%) failed to benefit from a weaker currency and was pressured on mass ex-dividends with over 120 stocks in Nikkei 225 and over 1000 in the TOPIX trading ex-dividend today. Chinese markets outperformed their peers with Hang Seng (+0.5%) and Shanghai Comp. (Unch.) kept afloat after firmer Chinese Industrial Profit growth, although upside was limited amid the absence of open market operations by the PBoC.

European Opening Calls: FTSE 7288 +0.03%, DAX 12611 +0.05%, CAC 5273 +0.08%, MIB 22448 +0.08%, IBEX 10187 -0.02%

FTSE

OTHER UK COMPANIES

BROKER RECOMMENDATIONS

RBS (RBS LN) UPGRADED TO BUY FROM HOLD AT JEFFERIES

PEARSON (PSON LN) UPGRADED TO OUTPERFORM FROM UNDERPERFORM AT EXANE. DOWNGRADED TO SELL FROM HOLD AT DEUTSCHE BANK

TAYLOR WIMPEY (TW/ LN) UPGRADED TO ADD FROM HOLD AT PEEL HUNT

CREST NICHOLSON (CRST LN) UPGRADED TO BUY FROM ADD AT PEEL HUNT

BOVIS HOMES (BVS LN) UPGRADED TO ADD FROM HOLD AT PEEL HUNT

BARRATT DEVELOPMENTS (BDEV LN) UPGRADED TO ADD FROM HOLD AT PEEL HUNT

DAX

E.ON (EOAN GY) -The company has reached an agreement with Fortum Corporation on which the company has the right to tender its remaining Uniper (UN01 GY) stake in the course of a public takeover by Fortum Corporation. The company says Fortum is announcing its intention to launch a voluntary public take over which compromises a cash offer of EUR 22 to Uniper shareholders. (Newswires)

Siemens (SIE GY) - The co and Alstom (ALO FP) sign an MOU to merge rail units. Siemens see the deal at EPS accretive after two years. (Newswires)

Munich Re (MUV2 GY) – Co.’s Ergo unit is considering options for its insurance businesses. (Newswires)

OTHER GERMAN COMPANIES

Hella Hueck (HLE GY) – Q1 adj. EBIT EUR 125mln vs. Prev. Y/Y EUR 118mln and revenue EUR 1.63bln vs. Prev. EUR 1.63bln. (Newswires)

BROKER RECOMMENDATIONS

BMW (BMW GY) UPGRADED TO OUTPERFORM FROM MARKET PERFORM BY MAINFIRST

HEIDELBERGCEMENT (HEI GY) RESUMED WITH A BUY RATING AT JEFFERIES

HANNOVER RE (HNR1 GY) UPGRADED TO NEUTRAL FROM UNDERWEIGHT AT JP MORGAN CHASE

CAC

Air Liquide (AI FP) – The company announces a healthcare acquisition of Sogo Sangyo Kabushkiki Kaisha (SSKK) in Japan. (Newswires)

L’Oreal (OR FP) – Francois Bettencourt Meyers has raised stake in the company, they now hold 5.9%. (Newswires)

OTHER FRENCH COMPANIES

Orpea (ORP FR) – H117 EIBTDA EUR 407mln, Revenue EUR 1.53bln, Net profit EUR 188mln. (Newswires)

BROKER RECCOMENDATIONS

PAN-EUROPE

MediaSet (MS IM) – H1 Net profit at EUR 74.8mln, H1 Net Revenue EUR 1.845bln. The company confirms it will post positive operating income, and will be in net profit for the whole year. (Newswires)

BROKER RECCOMENDATIONS

TELEFONICA (TEF SM) UPGRADED TO BUY FROM HOLD AT BERENBERG

FERRAGAMO (SFER IM) UPGRADED TO BUY FROM HOLD AT DEUTSCHE BANK

MONCLER (MONC IM) DOWNGRADED TO HOLD FROM BUY AT DEUTSCHE BANK

AENA (AENA SM) UPGRADED TO OVERWEIGHT FROM EQUAL WIEGHT AT BARCLAYS. DOWNGRADED TO REDUCE FROM HOLD AT HSBC

SMI

Syngenta (SYNN VX) – Co. has agreed to settle US farmer lawsuits from its decision to commercialise a GMO strain of corn before receiving the relevant approval; the payment could approach USD 1.5bln, according to sources. (Newswires)

BROKER RECCOMENDATIONS

SCANDINAVIA

BROKER RECOMMENDATIONS

CRH (CRH DC) RESUMED WITH A BUY RATING AT JEFFERIES

US

Nike Inc (NKE) - Q2 EPS USD 0.57 vs. Exp. USD 0.48, revenue USD 9.07bln vs. Exp. USD 9.09bln

US stocks were rangebound, and finished mixed, with telecoms posting the biggest lost on a sectoral basis, with IT outperforming. The S&P 500 closed up 0.01% at 2,496.85, the NASDAQ 100 closed up  0.24% at 5,881.34, and the Dow closed down 0.05% at 22,284.66.

Best Performing Sectors in the S&P 500: IT (+0.40%) Consumer Staples (+0.09%) Industrials (-0.01%)

Worst Performing Sectors in the S&P 500: Telecoms (-0.85%) Materials (-0.40%) Energy (-0.19%)

27 Sep 2017 - 06:52- EquitiesEU Research- Source: Newswires