Kingfisher Share News (KGF)

* European shares rise slightly
* Focus on Federal Reserve policy decision
* UBS downgrades luxury sector to neutral
* Logistics stocks fall after FedEx warning

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: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net

WHY VALUE IS WORTH IT (0909 GMT)
Debate over whether rotation into neglected and inexpensive value stocks continues and while
long-term investors appear to be reluctant to join the trade, another big bank - Barlcays - has
joined the club of those saying the move has further to run.
"Taking a stance against Value has worked well for a while, but we think the recent reversal
could have legs, irrespective of market conditions. Crowded positioning and stretched valuations
make Growth vulnerable to either a broadening of the macro slowdown, or a revival of the
reflation trade," Barclays says.
Strategists at the UK bank led by Emmanuel Cau see a double benefit from being exposed to
Value and see it as a win-win trade.
1) Value might be less vulnerable to bad news than Growth: "The common wisdom is that the
space will work as a recessionary hedge, but we disagree. On the contrary, our view is that
crowded positioning, extreme valuations and earnings cyclicality make Growth stocks more
vulnerable to a downturn than Value"
2) Value also offers a cheap hedge against a revival of the reflation trade: The latest
Value bounce is no more than a mere reversal of the August risk-off, but if the recovery trade
were to gather speed, it could feed further style rotation".

(Danilo Masoni)
*****

OPENING SNAPSHOT: FEDEX RIVALS SLIDE; INVESTORS AWAIT FED (0730 GMT)
Another subdued session in Europe with no major sectoral moves as investors await Fed
interest rate decision before making any major bets on risky assets.
Luxury is the only sector that's making some noise today after Swiss bank UBS downgraded the
sector to "neutral" from "overweight", saying the sector is in overbought
territory. Moncler (-3.3%) CEO's cautious comments citing Hong Kong unrest is adding
to weakness.
As expected logistics firms Deutsche Post, DSV, Kuehne & Nagel,
Royal Mail and PostNL are all sliding between 0.5% to 1% on FedEx's profit
warnings overnight.
Apple component suppliers AMS, STMicro and Infineon
rise on strong pre-orders for the latest iteration of iPhone.
In single stock moves, EDF is seeing a bit of a relief rally (+2%) after the French
utility company says there is no need to close any of its nuclear reactors over welding
problems, which roiled the stock last week.
Here's a snapshot on sectoral moves:



(Thyagaraju Adinarayan)
*****


ON OUR RADAR: FEDEX RIVALS, APPLE SUPPLIERS, LUXURY (0656 GMT)
Stock futures point to a flat to slightly weaker open for Europe as investors head for the
sidelines ahead of the Fed's interest rate decision later today.
In corporate news, FedEx's profit warning overnight citing trade war is likely to
cast shadow on European logistics companies. The U.S. package delivery firm's shares tumbled 10%
in extended trading.
DHL owner and European rival Deutsche Post is sliding 3.2% in early Frankfurt
trade. DSV, Kuehne & Nagel, Royal Mail, PostNL and other
European mail delivery firms are also expected to come under pressure on FedEx warning.
Apple component suppliers could rally following their Asian peers on strong
pre-orders for the latest iteration of iPhone, traders say. AMS, STMicro,
Infineon and Dialog Semi are some names to watch out for.
Luxury stocks, mainly Swatch and Richemont are expected to slide after a
bearish note by UBS, according to traders. Moncler is seen sliding 2% after CEO says
he is cautious on FY sales due to Hong Kong unrest.
Italian toll road operator Atlantia in focus yet again after its CEO resigned as
the company moves to deal with the fallout from a deadly bridge collapse last year.
In the UK, Cobham shares are seen opening 3%-5% lower as the UK CMA's intervention
in Advent’s merger proposal raises worries of possible rejection. Traders call B&Q owner
Kingfisher shares -2% after weak sales and cautious outlook.

Other key headlines:
MEDIA-Lloyds-Schroders wealth management venture to launch price war - FT
Diageo averts strike with unions over pay at Scottish distilleries
Roche bid to recycle Gayzva for lupus nephritis wins FDA breakthrough tag
Atlantia CEO resigns in Benetton-led shake up
UK's BAE Systems wins $318 mln contract from U.S. Army
Britain orders security investigation into Cobham-Advent deal
Kingfisher profit falls 6.4% on weak French performance
Pendragon Flags Brexit Uncertainty



(Thyagaraju Adinarayan)
*****

CALM BEFORE FED (0540 GMT)
European stocks are seen opening slightly lower as jittery investors brace for Fed meeting
later today, where the U.S. central bank is widely expected to cut rates by 25 bps.
Volatile oil prices, ongoing U.S.-China trade war and upcoming Fed rate decision have
darkened investor mood this week with stocks in defensive sectors such as utilities, food &
beverage and telecom in demand.
"Today's Fed decision is once again likely to be a contentious one, given the two dissents
we saw to the last cut in rates, which saw the US central bank cut by 25bp at its July meeting,"
Michael Hewson at CMC Markets UK says.
Financial spreadbetters IG expect London's FTSE to open 12 points lower at 7,309,
Frankfurt's DAX to open 2 points lower at 12,370, and Paris' CAC to open 4 points lower at
5,611.

(Thyagaraju Adinarayan)
*****


(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)