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LIVE MARKETS-On the radar: Thyssenkrupp, Daimler, LVMH

Fri, 16th Oct 2020 07:40

* European stock futures are in the black
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters. You can share your thoughts with Joice Alves (joice.alves@thomsonreuters.com)
and Julien Ponthus (julien.ponthus@thomsonreuters.com) in London and Danilo Masoni and Stefano
Rebaudo (stefano.rebaudo@thomsonreuters.com) in Milan.

ON THE RADAR: THYSSENKRUPP, DAIMLER, LVMH (0639 GMT)

European stocks are set to open higher, bouncing back from yesterday’s 2% fall in the STOXX
600 index, but virus concerns and uncertainty on a U.S. stimulus package will keep investors on
their toes.

On the M&A front, shares in Thyssenkrupp are up 13.5% in premarket trade as
privately-held Liberty Steel Group is set to make a bid for the ailing steel unit of the company
as soon as Friday.

Richemont will go ahead with its plan to issue warrants to shareholders which can be
traded or eventually used to acquire new shares and will hold on Nov. 17 a shareholders meeting
to approve the creation of up to 22 million shares.

Meanwhile, there is a batch of mixed earnings results.

Daimler stocks are up 3.4% in premarket trade after the company posts
forecast-beating third-quarter results, citing a faster than expected market recovery.

Rio Tinto warns that a resurgence in coronavirus cases was putting global economic
growth at risk, and that steel production outside China has sharply dropped.

AB Volvo reports third-quarter core earnings well above markets forecasts and a
big jump in order intake as a recovery continues to gain pace.

Recovering sales of Louis Vuitton handbags helps LVMH contain the fallout from the
crisis in the third quarter.

Shares in Erste Group are up 2.1% in premarket trade as the bank plans to pay a
dividend for 2019 in February of next year provided the European Central Bank (ECB) has lifted
its recommendation against such payouts by then.

Getinge reports a big jump in third-quarter core profit on the back of demand for
ventilators and other life support equipment, but order intake edges down.

The United States has offered to settle a long-running aircraft subsidy dispute with the
European Union and remove tariffs on wine, whisky and other products if Airbus repays
billions of dollars in aid to European governments.

(Stefano Rebaudo)

*****

MORNING CALL: IN THE BLACK, BUT VIRUS WORRIES WEIGH (0528 GMT)

European stock futures are in the black after yesterday’s losses, while their U.S. peers are
flat, but gains will probably be capped by virus concerns.

Fears of new restrictive measures to fight the pandemic in Europe coupled with the
uncertainty surrounding a U.S. stimulus package are dampening risk-appetite across the board.

U.S. President Donald Trump’s offer to raise the size of a fiscal stimulus package was
rejected by the top Democrat in Congress Nancy Pelosi who stuck to her demand for a $2.2
trillion deal.

(Stefano Rebaudo)

*****

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