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LIVE MARKETS-Opening snapshot: Ex-div, U.S. tariffs, Aegon, Thyssenkrupp

Thu, 13th Aug 2020 08:48

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 Stefano Rebaudo
(stefano.rebaudo@thomsonreuters.com) in Milan.

OPENING SNAPSHOT: EX-DIV, U.S. TARIFFS, AEGON, THYSSENKRUPP (0738 GMT)

European stocks are in negative territory ending a four-day winning run as the U.S.
government left tariffs on Airbus and a host of other European goods unchanged.

Meantime a fresh basket of earnings reports also weighs on the pan European index,
which is down 0.4%, with Aegon and Thyssenkrupp leading losses, down 11-12%
after results.

Shares in Danish brewer Carlsberg are down 5.6% after the company said Q2 sales
fell 15% and it expects organic operating profit for the FY to decline 10%-15%.

The FTSE 100 fell for the first time in five days as a batch of blue-chip firms traded
ex-dividend, including Phoenix and Legal & General.

(Joice Alves)

*****

ON THE RADAR: NORDEX , THYSSENKRUPP, RABOBANK, TUI (0635 GMT)

Futures are pointing to an open in the red for European bourses with investors seeing a long
road back to health after the UK historic GDP drop, and as German companies say they expect
business to return to normal in an average of 11 months.

In terms of corporate news, shares at Thyssenkrupp are down 5.7% in early trade
after results, while Nordex shares are down 11.7% results as the German wind turbine maker
reports a H1 loss.

Zurich Insurance's H1 operating profit fell 40% as payouts linked to the COVID-19
pandemic and weaker financial markets dented its business.

Dutch lender Rabobank said its H1 net profit fell 81% as impairment charges
soared due to the coronavirus pandemic.

Danish brewer Carlsberg said second-quarter sales fell 15% from a year earlier.
It now expects organic operating profit for the full year to decline 10%-15%.

TUI, the world's largest tourism company, posted a 1.1 billion euro loss in its 3Q.

Frankfurt listed shares in Airbus are down 3.8% in early trade after U.S. left
tariffs on Airbus aircraft unchanged at 15%, despite moves by the European Union to resolve a
16-year-old dispute over aircraft subsidies.

A Scotch Whisky group said it is disappointed with the U.S. decision to retain tariffs.

On a brighter note, Lundbeck raises its 2020 operating profit forecast as the
Danish drugmaker slightly beat Q2 sales expectations.

Other corporate headlines:

Heidelberger Druck Q1 orders plummet as pandemic stunts investment

RTL Group sees ad decline slowing in current quarter

Aegon H1 earnings miss expectations on U.S. coronavirus impact

Swisscom trims 2020 sales guidance as H1 revenue slips

UPDATE 1-Deutsche Telekom Q2 results buoyed by Sprint consolidation

(Joice Alves and Stefano Rebaudo)

MORNING CALL: LONG CLIMB BACK TO HEALTH (0535 GMT)

European stocks are seen opening lower this morning as the historic 20% crash of the British
economy in Q2 confirmed that the world's sixth-biggest economy entered a recession.

The UK GDP drop was the most severe contraction reported by any major economy so far, with a
wave of job losses set to hit later in 2020.

Helping a little sentiment, data showed this morning that French unemployment fell to 7.1%
in Q2 from 7.8% in Q1.

While in Asia, stock markets followed Wall Street higher, as investors returned to tech
stocks and gold after steady virus figures and a surprising jump in U.S. inflation boosted
sentiment.

Financial spreadbetters expect London's FTSE to open 47 points lower at 6,233, Frankfurt's
DAX to open 6 points higher at 13,065 and Paris' CAC to open 6 points lower at 5,067.

(Joice Alves)

*****

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