Marks & Spencer Share News (MKS)

* European shares fall after disappointing PMIs
* STOXX 600 down 0.8% for biggest one-day fall since Aug. 14
* DAX hits lowest in 2 weeks
* Euro zone business growth stalls in September
* Investors wait UK Supreme Court ruling on Brexit on Tuesday
*
* Travel sector stocks gain after Thomas Cook collapses

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

CLOSING SNAPSHOT: DISMAL PMI CAST PALL OVER EUROPE (1614 GMT)
Gloom about the state of the euro-zone economy following dismal manufacturing data for
Germany cast a pall over European stocks today, prompting a rush for the exits and sending the
pan European STOXX 600 and euro-zone index down 0.8% and 1% for their worst
day in weeks.
Markit's flash composite Purchasing Managers' Index (PMI), which tracks both the
manufacturing and services sectors, fell to 49.1 from 51.7 in the previous month. It was the
first time since April 2013 that the reading fell below the 50 mark that separates growth from
contraction.
The usual suspects - Brexit, the trade war and the German auto industry - were likely to
blame for the uncertainty among manufacturers while a softening domestic demand due to flagging
labour market has started to rattle service providers.
For the STOXX 600, it was the biggest one-day fall since Aug. 14 and the largest daily drop
in a month for the euro-zone benchmark. Rising bond prices and falling yields in the UK and
euro-zone knocked banks 2.8% lower.
"The critics who claim the ECB's policy response was disproportionate got a rude shock today
with the unexpected weakness revealed by the flash PMI," says Marc Chandler, chief market
strategist at Bannockburn Global Forex.
Defensives like food & beverage and utilities were the only gainers.

(Josephine Mason)
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THOMAS COOK: GAMECHANGER FOR TROUBLED TRAVEL SECTOR? (1435 GMT)
Thomas Cook's demise has triggered a rally in tour operators - TUI and
Dart Group - as investors bet on its rivals grabbing some market share in Europe's
highly competitive holiday industry.
Budget airlines easyJet and Ryanair have also jumped amid hopes that the
closure will remove some of the overcapacity that has hammered ticket prices and eroded profits
in recent years.
TUI stands to benefit the most, according to Citigroup analysts who estimate Thomas Cook had
about 8% of the UK tour operating market, compared with about 19% held by the German holiday
company. In Germany, it had about 10%, compared with TUI's 17%.
With Thomas Cook shutting up shop, TUI will also be the only remaining operator with
significant retail presence in the UK.
But it may not be the game changer the industry's been hoping for.
In previous instances when rivals have gone bottoms up - Monarch and Air Berlin - the
euphoria has proved to be shortlived before the lingering worries returned.
JPMorgan equity analysts reckon it will also only be a brief fillip because existing
concerns over Brexit worries, a stronger dollar, higher fuel cost, a fare war in Germany, delays
with Boeing's MAX, and industrial unrest haven't suddenly gone away.
The chart below shows the boost to TUI and low-cost carriers in the months after Air Berlin
and Monarch closed, but the shares have been steadily falling since May last year.

(Josephine Mason)
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GERMAN CLIMATE PLAN: IS THAT FISCAL STIMULUS? (1112 GMT)
The terrible PMIs out of the euro zone have promptly rekindled debate over what could
policymakers do more to prop up the region's economy and speaking about stimulus, Germany's
54-billion-euros climate plan announced on Friday springs to mind.
But it seems people aren't overly excited.
"The macro impact from the climate spending package seems limited - this is not a proper
fiscal stimulus," say UBS economists led by Felix Huefner.
Under "very optimistic" assumptions, UBS estimates an up to 0.3 percentage points boost to
GDP from the package - which compares to the 1 percentage point lift from the 2008/2009
stimulus.
"The primary objective of more climate spending was not to boost demand, but rather to
intensify efforts to meet the 2030 emissions reduction targets amid increased voter focus on
environmental issues," UBS economists add.
Meanwhile, SocGen says the package was a little underwhelming, as it didn't include a cash
for clunkers scheme, which would have provided an immediate fiscal boost.
Anatoli Annenkov, senior European economist and ECB watcher at ScoGen argues that unless
there's an economic crisis, fiscal stimulus measures are unlikely to be a "gamechanger".
That being said, UBS believes the package could well have a sectoral impact: investment in
renewables (RWE, E.ON, Siemens-Gamesa), EV infrastructure
(Schneider Electric, Siemens), EV (Valeo, Hella), and
railways (Alstom, Knorr Bremse, Stadler Rail).
(Danilo Masoni and Jospehine Mason)
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GROWTH FEARS ARE BACK (0941 GMT)
Flash PMIs from Germany and France not only crushed expectations of a timid recovery in
manufacturing but also showed contagion to the service sector, heightening concerns over the
fallout of a drawn-out trade war and deepening recession worries.
No surprise then that after a 5-week positive run (and having the ECB already committed to
indefinite stimulus) shares in Europe have taken the news as it is, ie quite badly, with traders
quickly pointing out that policy support may not be enough.
"The data will provide an excellent soundboard for investors to gauge the depths of the
global manufacturing demise and this data will signal to policymakers that more stimulus is
needed," says Stephen Innes, strategist at AxiTrader.
And Connor Campbell, analyst at Spreadex, adds: "The Eurozone's flash PMIs gave the region
rather severe cause for concern, suggesting the scale of the turnaround needed may go beyond the
measures announced by the ECB earlier in the month".
Euro zone stocks are down 1.3% led by rate- and growth-sensitive banks,
while Germany's DAX has hit its lowest in nearly two weeks, down 1.6%.
For more reading on today's PMIs surveys and ahead of data from the U.S. check out the
following stories:
* Euro zone business growth ground to a halt in Sept -PMI
* German private sector shrinks in Sept for first time in over six yrs -PMI
* French business growth slows unexpectedly in Sept


(Danilo Masoni)
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EUROPE DIPS, THOMAS COOK COLLAPSE LIFTS TRAVEL STOCKS (0738 GMT)
European shares are off to a slightly weaker open but the collapse of Thomas Cook that has
left hundreds of thousands of travellers stranded is giving a lift to rivals of the UK firm,
while airlines are also getting a lift on expectations that the failure of the world's oldest
travel firm will remove some overcapacity.
Travel agent TUI has shot up 8.1%, making it the biggest gainer on the STOXX 600
and set for its biggest one-day gain since April, while budget airlines easyJet and
Ryanair are rallying 5.7% and 2.8% respectively.
The FTSE 350 travel & leisure index has hit its highest since October 2018, up
0.7%, while Europe's broader travel & leisure index is up 0.4%.
Elsewhere losses prevailed on fresh uncertainty over the course of trade talks between the
US and China, while investors were disappointed by weak German and French PMI.
The STOXX 600 was last down 0.7%, while the FTSE was flat, helped by a weaker
pound, as you see in the snapshot:

(Danilo Masoni)
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WHAT'S ON OUR RADAR (0659 GMT)
European shares are expected to start the week on a softer footing amid fresh uncertainty
over Sino-U.S. trade talks, with futures pointing to losses of around 0.2-0.3% for major
euro-zone benchmarks while a weaker pound could help the FTSE outperform.
On the corporate front, eyes on the travel sector after the world's oldest travel firm
Thomas Cook collapsed, entering compulsory liquidation and leaving hundreds of thousands
of travellers stranded. Thomas Cook shares have been suspended with immediate effect.
Two traders said travel operator TUI could benefit from the demise of its rival
and sees TUI shares opening up 4%. Eyes also on airlines, which could be supported as Thomas
Cook’s collapse is expected to remove overcapacity in the sector.
But package holiday provider On The Beach has warned of a one-time charge as it
makes alternate arrangements for passengers affected by the shutdown. Other stocks linked to
tourism such as Amadeus, Melia and NH HOTEL will also be on
investors' radars.
Elmos Semiconductor is seen rising as much as 5% after it agreed to sell Silicon
Micro, while German real estate company Vonovia could be hit after it agreed to buy
Swedish Hembla from Blackstone. Still in dealmaking, Bloomberg reported that private equity firm
Advent is in talks to join Bain in its takeover bid for Germany's Osram, a move that
could further fuel the bidding war with AMS for the lighting group.
A profit warning from Deutz is seen sending shares in the engine maker down 5%.
Marks & Spencer Group Plc is seen under pressure after its CFO stepped down after little
more than a year. In the battered banking sector, Spanish banks could benefit after S&P’s
upgraded the country's credit rating.
Other stock movers: Vivendi set to widen legal battle against Mediaset beyond Italy-sources;
Utility EDF warned of a 24-hour strike starting Monday Sept. 23; Sports Direct makes cash offer
for Goals Soccer Centres; Deutsche Bank, BNP reach transition agreement for global prime finance
platform; Budget carrier XL Airways seeks rescue deal with Air France; UBS won't pass negative
interest rates to small savers -COO
(Danilo Masoni)
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EUROPE SEEN STARTING WEEK DOWN SLIGHTLY (0530 GMT)
European shares are expected to start the week on a weaker footing following losses in Asia
overnight and ahead of the latest flash PMI data for services and manufacturing.
Spreadbetters at IG expect London's FTSE to open 6 points lower at 7,339, Frankfurt's DAX to
open 32 points lower at 12,437, and Paris' CAC to open 15 points lower at 5,676.
Most Asian share markets fell as investors waited for more clarity on the Sino-U.S. trade
talks after recent negotiations.
(Danilo Masoni)
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(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)