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Latest Share Chat

BUZZ-Brazil rating cut hits European oil & gas, consumer stocks

Thu, 10th Sep 2015 09:44

(Updates to add Edenred, Telefonica)

** Shares of European companies with significant revenueexposure to Brazil off 2-3 pct on Thursday after S&P cut itsrating on Latam's largest economy to "junk"

** Consumer staples, oil & gas cos and certain banks mostaffected Chart: http://link.reuters.com/dyz55w

** Edenred shares slide 5 pct. Brazil accounts forroughly half the company's operating profit

** Banco Santander down 2.3 pct and easily theworst performer among regional banks

** Portugal's Galp Energia, which operates 27exploration projects in Brazil, off 2 pct

** Anheuser Busch, which received a quarter of itsrevenue from Latam last year, off 2.2 pct in early trades

** French retailers Casino Guichard and Carrefour off 1.4 pct and 2 pct respectively. Casino received 51pct of its 2014 revenue from Latam while 14 pct of Carrefour'sannual sales came directly from Brazil, according to ThomsonReuters data

** Casino shares now down more than 30 pct YTD

** Royal Dutch Shell off 0.8 pct and down1.6 pct in London and Amsterdam respectively. BG Group off 0.5 pct

** Weakness takes another bite out of oil services cos.Seadrill off 5.6 pct while Subsea down 2.4pct

** Unilever, which Citi estimates gets about 8 pctof its revenue from Brazil, down 0.9 pct in London

** Also on the backfoot: Imperial Tobacco, down 1.6pct, Henkel down 0.9 pct, Telecom Italia down 1 pct, Telefonica down 1.6 pct (RM: vikram.subhedar.thomsonreuters.com@reuters.net)

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