GKN PLC Share News (GKN)

* European stocks rise * Utilities rally after RWE, E.ON plan Innogy break-up March 12 (Reuters) - Welcome to the home for real-time coverage of European equity marketsbrought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him onMessenger to share your thoughts on market moves: danilo.masoni.thomsonreuters.com@reuters.net SPOT THE EXTREMES IN EUROPEAN EQUITIES (1056 GMT) Yep, there's still a few lurking. Two years on and UBS strategists have reviewed four charts showing "crisis-born" extremesfor European equities. While we are seeing a turning point in European earnings and the yield gap between theGerman bund and European banks is normalising, UBS' other two charts suggest that the hard workisn't over yet. For instance, this is the first time since 1973 that Europe has lagged the U.S. coming outof a recovery rally (see chart below), thanks to tech's larger weighting in the U.S. and recentU.S. stimulus measures. Likewise UBS highlights that the profit gap between Europe and the U.S. is on course for anew crisis high of 68 percent, as a cocktail of tax cuts, increased fiscal spending and weakerdollar are expected to boost U.S. company profits. (Kit Rees) ***** TARIFF TIT-FOR-TAT: HOW FAR WILL IT GO? (1005 GMT) We're arguably "back to square one" on globalisation, Bank of America Merrill-Lynchstrategists say, with trade tariffs from the U.S. and the outcome of the Italian electionsthrowing doubt over the progress made in 2017. The U.S. tariffs on steel and aluminium imports will have a very small near-term impact, butvery uncertain ultimate endgame, BAML says, with retaliation likely. Europe could target a range of U.S. exports including orange juice, cranberries, peanutbutter, tobacco, as well as industrial products. "If the tariff tit-for-tat ends here, as with the initial tariffs, the macroeconomic impactis likely to be quite small," BAML writes. Noting, however, Trump's claim it would counter these tariffs with restrictions on autos,they add: "This would be the kind of escalation that could seriously damage businessconfidence." Ironic, then, that the pick-up in global growth over the past two years is in part down to arevival in trade. (Helen Reid) ***** OPENING SNAPSHOT: UTILITIES RALLY (0814 GMT) Stocks across Europe have opened strongly, with financials giving the biggest boost to theSTOXX 600 as appetite for riskier parts of the market returns. Utilities are the top-gaining stocks across country benchmarks as news of RWE andE.ON's break-up of Innogy boosts speculation of deal-making. Suez, EDP, Veolia, EDF, and Italgas are all climbing on the news. Innogy itselfjumped 15 percent. (Helen Reid) ***** WHAT YOU NEED TO KNOW BEFORE EUROPE OPENS (0745 GMT) European shares are expected to open higher with futures on main country benchmarks up0.4-1.1 percent following gains in Asia on the back of Friday's U.S. jobs report. British engineer GKN will be in focus after it agreed a $6 bln tie-up with Dana tohelp fend off Melrose, which in response submitted an increased and final cash and paper offerfor GKN. Auto stocks could underperform after US President Donald Trump tweeted that if theEU retaliates against steel tariffs by placing higher tariffs on American goods, the US would"tax cars etc. FAIR!" link here: https://goo.gl/oJ2PBs Also in the spotlight will be German utilities after RWE and rival E.ON announced plans to break up Innogy. E.On is seen up 6 percent in premarkettrade. We'll also be watching shares in Glencore and Randgold after Congo'spresident signed a new mining code on Friday evening. For other market moving headlines, see two posts below. (Danilo Masoni) ***** FUTURES POINT TO RENEWED RISK APPETITE (0719 GMT) It's been a strong open for futures across the board, with gains of 0.4 to 0.8 percent - theDAX is leading the pack. This confirms spreadbetters' indications that Europe should start theweek on the front foot, following the lead of Asian markets which rallied overnight. (Helen Reid) ***** EUROPEAN HEADLINES ROUND-UP (0710 GMT)GKN agrees $6 bln tie-up with Dana to help fend off MelroseMelrose makes increased and final offer for GKNNovartis says operations head Wyss resigning, names three to executive panel"No deal" Brexit could cost UK, EU companies 58 bln pounds -reportFacing break up, Innogy unveils further costs cutsRWE, E.ON reshape German power sector in Innogy asset swap dealUAE's ADNOC says awards Italy's Eni stakes in new oil concessionsUBS sees "business as normal" as it contests Hong Kong suspensionPolish bank PKO Q4 profit up 38 pct, largely in line with forecastDutch wholesaler B&S valued at 1.22 bln-1.49 bln euros in IPODeutsche Bank values asset management at up to 7.2 bln euros in IPOPrada shares soar 20 pct as firm returns to sales growthNorway's Hydro says Brazil plant made unauthorised spillsFrance's Areva to pay $554 million to settle Finnish reactor disputeRegeneron/Sanofi offer new Praluent pricing to break reimbursement logjamGeely chairman says Daimler synergies "no precondition" - Bloomberg MORNING CALL: EUROPEAN SHARES SEEN UP (0630 GMT) European shares are expected to open higher this morning, tracking gains in Asia overnight. A relief rally swept across Asian share markets after the latest U.S. jobs report managed toimpress with its strength while also easing fears of inflation and faster rate hikes, a neatfeat that whetted risk appetites globally. Here are your morning calls, courtesy of CMC Markets: FTSE: 3 points higher DAX 50 points higher CAC: 21 points higher (Danilo Masoni) *****