Barclays Share News (BARC)

March 19 - Welcome to the home for real time coverage of European equity markets brought toyou by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger toshare your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net TIME TO MOVE INTO DEFENSIVES? (0958 GMT) Tech is no longer unshakeably the favourite, it seems, as UniCredit strategists downgradethe sector and argue investors should increase exposure to more defensive areas of the market. Micro Focus' 55 percent slump today indicates investors have very limited patience for anysigns of strain in tech stocks whose valuations have surged up in the past years. Strategists at the Italian bank downgrade tech to neutral, and upgrade utilities fromunderweight to overweight. "The latest developments and the levels of leading indicators suggest a period in whichdefensive sectors will become more attractive," write Unicredit strategists. The mammoth deal last week between RWE and E.ON to break up Innogy would have helpedsentiment on utilities, but Unicredit also argues the sector is relatively insulated from "tradewar" fears. They also have overweight recommendations on the defensive food & beverage, and healthcare,sectors. (Helen Reid) ***** OPENING SNAPSHOT: EUROPEAN STOCKS OPEN LOWER AS MICRO FOCUS DIVES (0818 GMT) A drop in Micro Focus' shares and Henkel are contributing to the muted mood among Europeanshares this morning, which have opened lower. Likewise falls among energy stocks and basic resources are also weighing. On the positive side, Hammerson is the biggest gainer after that takeover approach fromKlepierre, while British betting firms have jumped after a report from the UK's gamblingcommission which recommended a stake limit of at or below 30 pounds sterling for fixed oddsbetting terminals (FOBTs). Here's your opening snapshot: (Kit Rees) ***** WHAT WE'RE WATCHING AHEAD OF THE OPEN (0752 GMT) European stock futures were down 0.2 to 0.5 percent, pointing to a more feeble start to abusy week with investors’ eyes on Wednesday’s Federal Reserve meeting and the EU summit onBrexit. With earnings season drawing to a close, there are however results from Henkel and MicroFocus which could jolt the shares. Henkel warned the year was off to a slow start, its shares are indicated down 2-3 percent.Micro Focus meanwhile is seen falling as much as 15 percent after it said annualrevenue would fall more than expected due to lower licence income and complications from itspurchase of Hewlett Packard assets, prompting its CEO to quit. M&A continues apace, and Hammerson’s rejection of Klépierre’s takeoveroffer is likely to boost the UK commercial real estate firm’s shares. It is offers such as these that many UK investors are hoping for when they buy into whatmany see as the stocks most at risk from a disorderly Brexit, such as commercial real estateinvestment trusts. European companies like Klépierre have all the more to gain from buying the depressed shareswith the euro/sterling exchange rate so favourable. With the offer valuing Hammerson’s shares ata 40.7 percent premium to Friday’s closing price, and the market’s short position on Hammersongrowing in the past month, the shares are likely to jump this morning. News that activist investor Sherborne acquired a more than 5 percent stake in Barclays should shake up the British bank’s shares too. (Helen Reid) ***** COMPANY HEADLINES: MORNING ROUND-UP (0741 GMT)Melrose pledges to inject 1 bln stg in GKN pension schemeApple is developing own MicroLED screens - BloombergPilots set up pan-European association to challenge RyanairDaimler cars unit invests to ramp up output to 3 mln vehiclesSherborne acquires voting rights over 5.16 pct in BarclaysFrance's Klepierre says offer to buy Hammerson rejectedMicro Focus downgrades 2018 revenue forecast, CEO steps downUK gambling commission makes recommendations on FOBT machinesHenkel warns that delivery woes in North America damp Q1 startCEO of Germany's GEA Group to leave in April 2019Societe Generale hopes for resolution to IBOR, Libya investigations within weeksShipping firm CMA CGM sees industry rebound continuingRocket Internet explores IPO of online shopping group Jumia - sourcesKering says Swiss activities tax-compliant (Tom Pfeiffer) ***** FUTURES POINT TO SLOWER START AS FED LOOMS (0712 GMT) Futures are down 0.2 to 0.4 percent across the main European benchmarks, confirmingspreadbetters' calls of a more cautious start to the week. With earnings season drawing to a close, corporate news is thin on the ground but M&A newsis still coming in: Hammerson has just announced it rejected an acquisition offer byKlépierre which valued the UK real estate company's shares at a 40.7 percent premiumto their closing price on Friday. (Helen Reid) ***** MORNING CALL: CAUTION DOMINATES FIRST DAY OF BUSY WEEK Good morning and welcome to Live Markets. European stocks are called down this morning, following the lead of Asian markets which hita speed-bump in the first trading day of a busy week. Britain prepares for a critical EU summitthis week, and investors are also eyeing Jerome Powell's first press conference as FederalReserve Chair and the central bank's decision on Wednesday. Asian shares were mixed as tension built ahead of this week's Fed meeting which will likelyresult in an interest rate hike. Spreadbetters call the DAX 17 points lower at 12,373, the CAC 40 down 17 points at 5,265,and the FTSE 100 16 points lower at 7,149. (Helen Reid) *****