DAILY EUROPEAN EQUITY OPENING NEWS: K+S (SDF GY) – Q4 operating earnings EUR 153.6mln vs Exp. EUR 155.9mln, Co. proposes dividend of EUR 1.15/shr vs. Exp. EUR 1.10/shr,  2015 sales EUR 4.18bln vs. Exp. EUR 4.26bln and Co. says: prudent outlook for this ye

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10^th March 2016

ASIA

Asian equity markets traded mixed as the region digested mixed inflation data from China. Nikkei 225 (+1.26%) outperformed as exporter names benefitted from extended JPY weakness, while ASX 200 (-0.14%) failed to hold onto its early energy-led advances amid profit-taking in defensive stocks. Elsewhere, Chinese markets traded mixed following the latest inflation data where CPI rose to its highest in 19 months but PPI declined for the 48th consecutive month, with the Shanghai Comp (-0.62%) pressured after the PBoC kept its inter-bank liquidity injections reserved and reports that China is seeking to rein in on property prices. Although the index, managed to recover some losses in late trade, amid speculation of China state-fund bids.

Best Performing Sectors in the Nikkei 225: Consumer Discretionary (+1.87%) Consumer Staples (+1.71%) Industrials (+1.54%)
Worst Performing Sectors in the Nikkei 225: Telecommunications Services (-0.25%) Utilities (+0.06%) Financials (+0.39%)

FTSE

Aviva (AV/ LN) – Co. are to offload their Irish health insurance operations to Irish Life. (BBG)

OTHER UK COMPANIES

Companies going ex-dividend:

FTSE 100: Barclays PLC (GBP 0.039), BHP Billiton PLC (USD 0.18), CRH PLC (EUR 0.44), Land Securities Group PLC (GBP 0.082), Shire PLC (GBP 0.153)

FTSE 250: Crest Nicholson Holdings plc (GBP 0.133), Dechra Pharmaceuticals PLC (GBP 0.056), Direct Line Insurance Group PLC (GBP 0.088), Domino's Pizza Group PLC (GBP 0.118), F&C Commercial Property Trust Ltd (GBP 0.005), Hiscox Ltd (GBP 0.160), Jupiter Fund Management PLC (GBP 0.109), Oxford Instruments PLC (GBP 0.037), Perpetual Income and Growth Investment Trust PLC (GBP 0.032), Personal Assets Trust PLC/Fund (GBP 1.400), Temple Bar Investment Trust PLC/Fund (GBP 0.176)

BROKER RECOMMENDATIONS (BBG/RTRS)

RBS (RBS LN) DOWNGRADED TO MARKET PERFORM FROM OUTPERFORM AT BERNSTEIN

ROLLS-ROYCE (RR/ LN) DOWNGRADED TO NEUTRAL; OFF PAN-EUROPEAN BUY LIST: GOLDMAN

G4S (GFS LN) DOWNGRADED TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS

RESTAURANT GROUP (RTN LN) DOWNGRADED TO HOLD VS BUY AT BERENBERG AND CUT TO NEUTRAL VS BUY AT GOLDMAN

BHP BILLITON (BLT LN) RAISED TO ADD VS REDUCE AT ALPHAVALUE

INTU PROPERTIES (INTU LN) UPGRADED TO OUTPERFORM VS NEUTRAL AT MACQUARIE

WHITBREAD (WTB LN) UPGRADED TO HOLD FROM UNDERPERFORM AT JEFFERIES

AUTO TRADER (AUTO LN) GROUP RAISED TO BUY VS NEUTRAL AT GOLDMAN

DAX

Deutsche Boerse AG (DB1 GY) – Joachim Faber set to replace Donald Brydon as chairman of Deutsche within three years. (BBG) NASDAQ (NDAQ) has agreed to acquire ISE (International Securities Exchange) from Co. in a deal valued at USD 1.1bln. (BBG)

Volkswagen (VOW3 GY) – Co. announce the departure of American arm’s CEO Michael Horn, with Hinrich Woebcken to be interim CEO. (BBG/RTRS)

K+S (SDF GY) – Q4 operating earnings EUR 153.6mln vs Exp. EUR 155.9mln, Co. proposes dividend of EUR 1.15/shr vs. Exp. EUR 1.10/shr,  2015 sales EUR 4.18bln vs. Exp. EUR 4.26bln and Co. says: prudent outlook for this year despite tentative signs of recovery, Co. sees significant decline in earnings. (BBG)

Linde (LIN GY) – Q4 revenue EUR 4.39bln vs. Exp. EUR 4.44bln, Q4 operating profit EUR 994mln vs. Exp. EUR 998mln, Co. proposes dividend of EUR 3.45/shr and Co. expect 2016 outlook to be challenging. (BBG)

OTHER GERMAN COMPANIES

Hugo Boss (BOSS GY) – Co. proposes dividend of EUR 3.62/shr vs. Exp. EUR 3.65/shr, in 2016 Co. still sees sales up in the single digit percentage and confirm EBITDA forecast but states it will close around 20 Chinese stores. (BBG)

BROKER RECOMMENDATIONS (BBG/RTRS)

RWE (RWE GY) DOWNGRADED TO SELL VS NEUTRAL AT UBS

CAC

SocGen (GLE FP) – Co. to cut 550 jobs in network reorganization. (BBG)

Carrefour (CA FP) – 2015 recurring operating income EUR 2.45bln vs. Exp. EUR 2.45bln, Co. proposes dividend of EUR 0.70/shr vs. Exp. EUR 0.74/shr, 2015 net sales up 3% at current FX to EUR 76.9bln and Co states in 2016 they will continue to invest between EUR2.5bln and EUR 2.6bln with constant focus on FCF generation. (BBG)

OTHER FRENCH COMPANIES

Altarea (ALTA FP) – FY FOO EUR 161mln vs. Prev. EUR 126mln and FY real-estate EPRA NAV EUR 132/shr. (BBG)

Lagardere (MMB FP) – FY recurring EBIT EUR 378mln vs. Exp. EUR 390mln and FY Adj. net EUR 240mln vs. Exp. EUR 233mln. (BBG)

Somfy (SO FP) – FY’15 net EUR 165mln vs. Prev. EUR 38.1mln proposed a dividend of EUR 5.70/shr. (BBG)

Companies going ex-dividend: CAC Mid 60: APERAM SA (EUR 0.31)

BROKER RECOMMENDATIONS (BBG/RTRS)

LAGARDERE (MMB FP) DOWNGRADED TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS

PAN-EUROPE

Banco Popolare (BP IM)/Banco Popolare di Milano (PMI IM) – Source reports indicate that yesterday, Co.’s failed to break stalemate between them and the ECB over merger. (RTRS) 

Bpost (BPOST BB) – Q4 EBITDA EUR 137.1mln vs Est. EUR 126.6mln and Q4 rev. EU642.9mln vs Exp. EU639.3mln. (BBG)

Yoox Net – A – Porter (YNAP IM) – EBITA EUR 133.1mln and net income EUR 59.7mln. (BBG)

Telecom Italia (TIT IM) – Telecom Italia plans to sell up to 45% of Inwit, said to seek at least EU5/SHR for Inwit Stake. (BBG)

Companies going ex-dividend: ISEQ: CRH PLC (EUR 0.44)

BROKER RECOMMENDATIONS (BBG/RTRS)

BEKAERT (BEKB BB) DOWNGRADED TO UNDERWEIGHT FROM NEUTRAL AT JP

SMI

OTHER SWISS COMPANIES

BROKER RECOMMENDATIONS (BBG/RTRS)

GEBERIT (GEBN VX) UPGRADED TO OUTPERFORM AT RBC CAPITAL

SCANDINAVIA

BROKER RECOMMENDATIONS (BBG/RTRS)

MARINE HARVEST (MHG NO) UPGRAGED TO BUY FROM HOLD AT SEB; PT NOK135

US

US equities closed out yesterday’s session in minor positive territory with the S&P 500 up by +0.50% as commodities lead the way with energy and materials 2 of the top sectors. Alongside yesterday’s risk on sentiment, non-defensive stocks benefitted with tech the 2^nd best sectors. The DJIA finished up 0.21% at 16999.89, S&P 500 finished up 0.50% at 1989.22 and the NASDAQ-100 finished up 0.65% at 4293.23.

Best Performing Sectors in the S&P 500: Energy (+1.54%), Information Technology (+1.03%) and Consumer Staples (+0.72%)

Worst Performing Sectors in the S&P 500: Telecommunication Services (-0.30%), Financials (+0.13%) and Consumer Discretionary (+0.15%)

10 Mar 2016 - 06:55- EquitiesResearch Sheet- Source: RANsquawk