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ON THE RADAR: BANKS Q3, ARCELORMITTAL, SAINSBURY (0746 GMT)
Looking at futures, it seems like it is going to be a start
of the day in the black for European bourses in a data heavy
morning, which also sees investors having to digest a slew of
earnings results.
There is a mixed batch of banking Q3 results with France's
third-biggest listed bank Societe Generale swinging
back to profit, as its equity trading business continued to
recover from a weak start to the year; and Italy's
second-biggest bank UniCredit posted much higher than
expected net profit as Europe emerged from lockdowns.
In the meantime, Germany's Commerzbank swung to a
Q3 loss, as the lender undergoes a restructuring.
ING Groep, the largest Dutch bank, reported lower
than expected pre-tax profit of 1.20 billion euros on declining
interest income amid the coronavirus pandemic and said it
intends to cut 1,000 jobs.
British supermarket group Sainsbury also said it
could cut 3,500 jobs in a restructuring.
On a brighter note, ArcelorMittal, the world's
largest steelmaker, reported Q3 core profit above expectations
as the easing of lockdowns led to improved demand.
German broadcaster ProSiebenSat.1 Media returned
to profit, and reinstated its FY guidance. Its shares rose 5.7%
in premarket trade.
HeidelbergCement, the world's No.2 cement maker,
posted a 13% increase in Q3 core profit, as cost cuts helped it
to shrug off the impact of the pandemic and forecast higher
earnings for 2020.
Siemens Gamesa keeps profit target as Q4 uptick fails to
stave off loss.
British insurer RSA's underwriting profit rose
strongly in the first nine months of 2020 due to improvements
the company made to its underwriting strategy.
German reinsurance group Munich Re's net profit
declined 77% to 199 million euros in Q3.
Staying in Germany, specialty chemicals maker Lanxess
narrowed its 2020 core profit outlook range after the
coronavirus pandemic, saying it was seeing a pick up in the auto
industry, with China and the U.S. also providing positive
stimuli.
While Lufthansa said it booked a net loss of 2
billion euros in Q3.
Sunrise Communications announced plans to boost its
2020 dividend to 4.55 and 4.65 Swiss francs per share, from 4.4
francs, ahead of the Swiss telecommunications firm's takeover by
Liberty Global that will lead to its delisting.
(Joice Alves)
*****
MORNING CALL: STILL NO U.S. PRESIDENT (0638 GMT)
Futures are pointing to gains for European bourses this
morning mirroring Asian shares, which climbed on the prospect
that a gridlock in the U.S. Congress will give a boost to some
industries.
So far, the count shows that Democratic challenger Joe Biden
narrowly ahead in key states, but the risk of a prolonged
contested election remains.
Back in Europe, it will be a data heavy morning with EZ and
UK PMI data due.
The Bank of England's November monetary policy decision is
also on schedule. The Telegraph newspaper reported that the
central bank is considering a move into negative interest rates.
(Joice Alves)
*****
Sainsbury's (SBRY)
