LIVE MARKETS-STOXX at 5-week highs, Air France leads airlines lower

* European shares opene slightly up
* Asia stocks edge up on stimulus hopes
* STOXX 600 ended at 5-week high on Friday
* Air France top STOXX loser on STOXX

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STOXX AT 5-WEEK HIGHS, AIR FRANCE LEADS AIRLINES LOWER (0728 GMT)
European shares are off to a positive start with the STOXX 600 benchmark holding at
five-week highs, up just marginally, underpinned by hopes of central bank stimulus and fresh
weakness in the pound that's lifting the international heavyweights of Britain's FTSE.
Among stock movers, airlines have come under pressure with Air France down 6.4%
after the company said "close-in bookings in the peak travel period were weaker than foreseen in
view of softening macro-economic environment".
"The comment... implies downside risk to estimates and reads across negatively to the other
European airlines," say Liberum analyst Gerald Khoo. Traders also cited a Les Echos report
saying Air France could be interested in Aigle Azur.
IAG shares are down 1.6% as British Airways pilots began a 48-hour strike today,
grounding nearly all its flights and disrupting the plans of thousands travellers, while easyJet
is down 1.9%, Lufthansa down 1.2% and Ryanair down 0.3%.
Meanwhile, a UBS upgrade to buy is lifting ProsiebenSat shares up 3.6% to the top
of the STOXX.
Here's your opening snapshot:

(Danilo Masoni)
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WHAT'S ON OUR RADAR (0652 GMT)
European shares are expected to rise slightly at the open today, holding at 5-week highs as
GMT)hopes of more stimulus by central banks around the world keep equities in demand, while
corporate newsflow slows down.
Futures on euro-zone benchmarks are trading between flat and a rise of 0.2 %, while FTSE
futures are up 0.5%, helped by fresh weakness in the pound.
On the corporate front, shares in IAG are seen opening 2% lower after British
Airways pilots began a 48-hour strike on Monday, grounding most of the airline's flights and
disrupting thousands of travellers' plans.
In M&A, a Sunday Times report saying Orion Capital is seeking partners for buyout of Intu
is seen lifting shares in the manager of shopping centres by around 10% at the open,
while Eddie Stobart Logistics said it has received a preliminary expression of interest
from its third largest shareholder DBAY Advisors Limited.
In earnings, Associated British Foods maintained its guidance for the 2018-19 year,
forecasting good profit performances at its Primark fashion chain and grocery business would
offset a decline in its sugar operations. Its shares are seen up 1-2%.

Headlines roundup:
British Airways pilots ground planes in unprecedented 48-hour strike
Primark owner AB Foods maintains full-year guidance
Lloyds ups PPI provisions to 1.2-1.8 bln stg, suspends buyback
Ahold's CFO to leave company in 2020
Eddie Stobart gets takeover interest from investor DBAY Advisors
Adevinta's Leboncoin to buy French Argus Group
Dorian industry insured losses seen in several billions of dollars - Munich Re
Deutsche Bank appoints new German corporate bank chief
Geely to bring air taxis to China in tie-up with Daimler-backed Volocopter
Banco do Brasil, UBS in advanced talks for investment banking joint venture -sources

Italy's Snam seeks U.S. footprint with bid for Midwest gas pipeline - sources
Priority for Renault is boosting Nissan alliance-France's Le Maire
Ferrari to lift lid on new F8 Spider to maintain fast track growth
German broadcaster ProSiebenSat. 1 is doubling down on its free-to-air model - FT

BRIEF-Telefonica Deutschland reiterates full-year 2019 guidance
Unregulated firm Financial.org closes, investors say accounts frozen
Santander to increase its Mexican business ownership to 91.6%
(Danilo Masoni)
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EUROPE SEEN SLIGHTLY UP BEFORE ECB LATER IN THE WEEK (0532 GMT)
European shares are expected open mostly higher ahead of the European Central Bank meeting
later this week where the central bank is expected to unveil a comprehensive stimulus package.
Spreadbetters expect at IG London's FTSE to open 22 points higher at 7,304, Frankfurt's DAX
to open 15 points higher at 12,206, and Paris' CAC to open 6 points lower at 5,598.
"Doves will rather be flying over the European Central Bank (ECB) this week. Rising trade
tensions, weakening global demand and Brexit uncertainties have recently taken their toll on the
Euro zone’s economy," says Ipek Ozkardeskaya, Senior Market Analyst at LCG.
Over in Asia, stocks edged higher amid a cautious market mood as investors hoped for
stimulus to support growth in the world's major economies.
(Danilo Masoni)
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(Reporting by Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)