Brown Group Share News (BWNG)

* European indices flat as investors brace for U.S.-China talks
* Luxury shines after LVMH, Dior results
* Cars, miners lead gains as defensives fall

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share
your thoughts on market moves: thyagaraju.adinarayan.thomsonreuters.com@reuters.net

OPENING SNAPSHOT: LUXURY GALORE (0727 GMT)
Hopes of a potential truce in U.S.-China trade war and solid earnings from LVMH
are helping European stocks to stay positive, only just about, shrugging off worries from
another set of poor economic data from Germany.
Oh boy, LVMH's shares don't seem to be tired after running up all year (+45% YTD) and
they're adding another $10 billion to their value today. The Louis Vuitton owner's shares are
jumping 5% after its Q3 sales beat expectations despite Hong Kong unrest.
The sentiment is boosting other luxury stocks in Europe with Richemont, Swatch
, Kering and Hermes rising between 2% to 5%. Christian Dior
hit its highest since Sept. 16 after reporting results for the first nine months, also boosted
by the LVMH results.
While that's only one side of the story, Chr Hansen, Philips, Novozymes
, Mondi and Gerresheimer shares are all bleeding after their poor
updates.
Macro weakness: food ingredient maker Chr. Hansen cites macro challenges for earnings miss;
Philips cites trade war; Novozymes sees the U.S. bioethanol market downturn to continue.
Trade-senstive sectors like cars and miners are top gainers, while defensives are
underperforming suggesting that investors are in risk-on mood ahead of trade talks.





(Thyagaraju Adinarayan)
*****

ON OUR RADAR: LUXURY'S RESILIENCE, PHILIPS, MONDI, NOVOZYMES (0654 GMT)
We're probably one headline away from a big bump or a slump in Europe as investors get ready
to trade the trade as Beijing and Washington officials meet later today to try to end a bruising
15-month trade war. Futures point to a 0.2%-0.3% gain in European stocks.
Paris stock futures are outperforming after Louis Vuitton owner LVMH's solid Q3
print despite HK unrest. Upbeat results from LVMH is likely to trigger a rally as analysts were
largely expecting luxury companies to take a major hit from political protests in HK.
LVMH is seen rising 4%, while its rivals Richemont, Swatch, Kering
and Hermes are seen up 2%, according to premarket indications from traders.
Dutch health tech company Philips is seen falling 4% to 5% after it said trade
tariffs and disappointing results at its Connected Care division would make it impossible to
reach its target for profit margin improvement this year.
In other earnings-based moves, UK packaging and paper company Mondi is seen down 3%
to 5% after reporting slightly lower sales volumes; Novozymes is called -5% after
profit warning; UK's plus-sized fashion retailer N Brown seen up 5% on H1 profit beat.
Mondi flagged softening demand and this is likely to put pressure other packaging companies
such as Smurfit Kappa and DS Smith.

Some more headlines:
LafargeHolcim decides against bid for BASF unit- Bloomberg
Hargreaves Lansdown assets up 3% on new business, market gains
Boeing's 787 under pressure as Russia's Aeroflot cancels order
Top-5 BHP investor Aberdeen Standard piles on climate pressure ahead of AGM




(Thyagaraju Adinarayan)
*****

BRACE FOR SOME TRADE HEADLINE PING PONG (0621 GMT)
Stock futures indicate a slightly higher open for Europe as jittery investors brace up for
trade headlines that is likely to spark volatility. Beijing and Washington officials are meeting
later today to try to end a bruising 15-month-old trade war.
A London-based trader says be ready for some "headline ping pong".
The impact of trade war has jolted the export-heavy German economy the most and August data
showed exports fell by more than expected, reinforcing expectations that a manufacturing slump
is pushing Europe's largest economy into recession.
CAC stock futures is outperforming rest of Europe after solid Q3 results from LVMH.
News that Louis Vuitton owner LVMH's Q3 sales beat expectations despite unrest in
Hong Kong is likely to boost shares of rivals Gucci-owner Kering, Hermes,
Burberry and Swiss watchmakers Richemont and Swatch.
Analysts were expecting luxury companies to take a major hit from political protests in HK.
"We had anticipated a more marked deceleration from a very strong Q2," Jefferies says, adding
that it was an "impressive beat".
While LVMH bit the HK unrest bullet, Philips seems to be hit sharply by the trade
war as the Dutch health technology company said tariffs and disappointing results at its
Connected Care division would make it impossible to reach its target for profit margin
improvement this year.

Some headlines to digest:
German August export slump amplifies recession alarm
Suedzucker 2nd quarter earnings fall after sugar price drop
LVMH shrugs off Hong Kong pain with Vuitton sales boom
Philips to miss 2019 margin goal due to trade tariffs
Belgium's UCB to buy Ra Pharmaceuticals for $2.1 bln
Renault management shake-up on the cards - source

(Thyagaraju Adinarayan and Joice Alves)
*****

TRADE JITTERS KEEP MOOD SUBDUED (0530 GMT)
European stocks are seen opening flat to slightly lower as a mix of positive and negative
noise from Washington on U.S.-China trade negotiations keep investors on edge.
The trade-sensitive German blue-chip index rallied 1% yesterday on report that
China could agree to a partial trade deal with the U.S. despite the recent flare-up in tensions.
"A mini deal with China would be favourable, but whether it is merely a detente (no new
tariffs) or something slightly more substantial (rolling back some taxes) that's the big
question for how intense the risk revival extends," Stephen Innes, Asia Pacific market
strategist for Axitrader says.
Financial spreadbetters IG expect London's FTSE to open 11 points lower at 7,155,
Frankfurt's DAX to open 16 points lower at 12,078, and Paris' CAC to open 1 point higher at
5,500.
Luxury stocks in focus today after Louis Vuitton owner LVMH beat sales forecasts
for the third quarter despite unrest in Hong Kong. LVMH's European peers are likely to benefit
from the upbeat results.

(Thyagaraju Adinarayan and Joice Alves)
*****


(Reporting by Danilo Masoni, Joice Alves, Josephine Mason, Julien Ponthus and Thyagaraju
Adinarayan)