Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your
thoughts on market moves: josephine.mason.thomsonreuters.com@reuters.net
BEFORE THE OPEN: SNEAKERS, SOAP, FASHION AND ELECTRICITY (0647 GMT)
The potential for greater political tumult in Washington that will engulf the U.S. President
following the launch of an impeachment probe into Donald Trump's dealing with Ukraine have put
heavy pressure on European stock futures this morning.
Futures for Germany's export-heavy DAX FDXc1 are down 0.6%, while Eurostoxx 50 STXEc1
are down 0.4%.
Not helping sentiment is a profit warning from Pfeiffer Vacuum PV.DE that it's suffering
order delays and expects weaker-than-expected FY results, the latest European (and German)
industrial machinery company to cut guidance.
While a relatively small company by market cap, the news will underscore concerns about the
health of Europe Inc ahead of Q3 results as companies suffer their third straight quarterly
decline in profits. Yesterday, German truck and trailer components maker SAF Holland SFQN.DE
issued a profit alert.
Pfeiffer's shares are down as much as 9.5% in pre-market trading and the news could hurt
Comet Holdings COTNE.S and Assa Abloy ASSAb.ST .
Cosmetics and soap maker PZ Cussons Plc PZC.L has said it expects conditions in its key
markets to remain challenging for the rest of the first-half, as it reported declining
first-quarter revenue in Asia-Pacific and Africa. Its shares are seen down 2%.
Still consensus-busting results from Nike NKE.N , the world's largest footwear maker,
overnight could provide a bright spot for Adidas and online fashion company BooHoo BOOH.L
shares are expected to get a lift from its H1 results, highlighting the shift in consumer to
online away from the high street.
Puma PUMG.DE may not benefit from the warm glow from Nike though after Gucci-owner Kering
PRTP.PA announced it's issuing a bond that can be exchanged for shares in the German sports
company. Kering owns a 15.7% stake. News that ThyssenKrupp TKAG.DE is preparing to replace its CEO after only a year on the
job is seen boosting the German steel-to-elevator conglomerate shares.
Utilities will be in focus - EDF EDF.PA shares are seen down 5% by one dealer after the
French electricity firm warned of spiralling costs from Britain's Hinkley Point C project. The
UK's United Utilities forecast higher underlying profit and revenue for the first half.
(Josephine Mason)
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ON OUR RADAR: TRAINERS, ELEVATORS AND VACUUMS (0600 GMT)
On the corporate news front, warnings from industrial machinery makers are piling up. The
latest comes from Germany's Pfeiffer Vacuum PV.DE , which warned of delays to orders, cut its
FY sales and EBIT margin forecasts in that move that underscores worries about a prolonged
European corporate recession and bodes poorly for the upcoming Q3 earnings season.
Its shares are down as much as 9.5% in premarket trading.
One bright spot overnight for sport retailers though - Nike NKE.N delivered
better-than-expected quarterly revenue and profit after the world's largest footwear maker
pushed to sell its sneakers to consumers through its own stores and online retailers gained
pace. The news sent shares up 5% and may give Adidas ADSGn.DE and Puma PUMG.DE a lift.
Change is afoot at the top of ThyssenKrupp TKAG.DE - it plans to end the contract of
current Chief Executive Guido Kerkhoff, the latest sign of turmoil at the steel-to-elevators
conglomerate, as it tries to restructure itself by selling or listing all or parts of its
elevator unit, by far its most profitable business.
Here are your early headlines:
Pfeiffer Vacuum Technology Adjusts Guidance For 2019 Sales And EBIT Margin Thyssenkrupp CEO Kerkhoff to leave, chairwoman Merz to take over As Thomas Cook customers return home, blame game begins Derichebourg Announces Sale Of Its Activities In Morocco Novartis blames former AveXis executives for Zolgensma data manipulation Greek utility Public Power Corp shrinks first-half loss Bain and Advent in advanced talks about new Osram bid -sources Fiat manager charged with lying about emissions even after VW scandal Renault-FCA merger "behind us", French carmaker says Mason)
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THE WORRIES PILE UP (0517 GMT)
As if investors didn't have enough to worry about from a slowing euro-zone (global) economy,
the U.S. trade spat with China to Brexit. Now political turmoil is set to roil Washington and
financial markets after the House of Representatives launched impeachment investigation into
President Trump over his dealings with Ukraine.
The move has stirred worries about a prolonged period of upheaval in Washington, which could
spill into the 2020 election and could distract the head of the world's No. 1 economy as he
prepares for the next round of talks with Beijing over trade. Wall Street sold off and Asian
equities are under pressure overnight.
IG financial spreadbetters expect London's FTSE to open 17 points lower at 7,274,
Frankfurt's DAX to open 24 points lower at 12,283, and Paris' CAC to open 15 points lower at
5,613.
(Josephine Mason)
*****
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