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EUROPEAN MARKETS NEWS REPORT 09 March 2016

EUROPE ADVANCE/DECLINE

77% of STOXX 600 constituents traded lower yesterday.

79% of the shares trade above their 20D MA vs 86% Monday (above the 20D moving average).

34% of the shares trade above their 200D MA vs 37% Monday (above the 20D moving average).

 

The Euro Stoxx 50 Volatility index added 1.64pt to 27.85.

 

INTEREST RATE

The 10yr Bund yield fell 1bp to 0.22% (above its 20D MA). The 2yr-10yr spread rose 3bps to -75bps (below its 20D MA).

 

SECTORS vs STOXX 600

3mths relative high: none

3mths relative low: Real Estate

 

ECONOMIC DATA

FR 08:30: Feb Bank of France Bus. Sentiment, exp.: 101 UK 10:30: Jan Industrial Production MoM, exp.: 0.4% UK 10:30: Jan Manufacturing Production MoM, exp.: 0.2% UK 16:00: Feb NIESR GDP Estimate

 

UK – IRELAND

Prudential, G4S Plc, Restaurant Group FY results expected

 

Basic Resources, oil & gas and technology shares fell most in London on Tuesday.

 

Banks: Lloyds Banking Group (-2.91% to 70.63p) reached a new 3-month relative low against the STOXX Europe 600.

 

Personal & Household Goods: Burberry Group (+6.64% to 1462p) closed at a 3-month relative high against the STOXX Europe 600.

 

Stock/Benchmark ratio(s) 50D MA cross under: Provident Financial (-3% to 3102p), Rightmove (-2.15% to 3830p).

 

Stock(s) 50D MA cross under: Booker Group (-2.7% to 162p), 3I Group (-2.56% to 426p), Rightmove (-2.15% to 3830p).

 

Burberry Group was downgraded to “hold” from “buy” at HSBC.

 

Ashtead Group was downgraded to “underperform” from “outperform” at Credit Suisse.

 

Croda International was downgraded to “neutral” from “buy” at Goldman Sachs.

 

Tullow Oil was downgraded to “neutral” from “buy” at UBS.

 

 

GERMANY – AUSTRIA

E.ON announced FY15 net loss of E7B (vs E6.4B expected, E3.16B loss last year) on revenue of E116B (vs E112B expected). The Co maintained a dividend of E0.50 per share and saw FY16 underlying net income of E1.2B-E1.6B.

 

Deutsche Post posted 4Q EBIT of E957M (vs E939M expected, E905M a year ago) on revenue of E15.34B (vs E16.03B expected, E15.37B a year ago). The Co reiterated its FY16 forecast of EBIT between E3.3B-E3.7B.

 

DE – Stock/Benchmark ratio(s) 50D MA cross over: Deutsche Post (+3.23% to E23.3)

 

Stock/Benchmark ratio(s) 50D MA cross under: Deutsche Bank (-2.11% to E17.37).

 

DE – Stock(s) 50D MA cross under: Deutsche Bank (-2.11% to E17.37), Duerr (-3.71% to E59.99).

 

 

FRANCE

Credit Agricole said it targeted FY net income above E4.2B in 2019, and average annual revenue growth above 2.5%.

 

Lagardere has plans to cut 170-260 jobs in “Lagardere Active” media division, reported Le Figaro citing people familiar with the matter.

 

Casino reported FY15 underlying net profit down 35% YoY to E412M (vs E556M last year) on trading profit of E1.45B (vs E1.51B expected). The Co maintained dividend at E3.12 per share.

 

GL Events posted FY15 net income up 8% YoY to E37.1M on revenue of E942.4M, up 0.3% YoY. The Co confirmed a profitable growth in 2016.

 

Transgene announced FY15 results: “Net cash burn for 2015 decreased by 22.5% to E34.8 million, versus E44.9 million in 2014 (…) Net loss of E46.4 million in 2015, including restructuring costs, compared to E48.6 million in 2014.”

 

Valeo: Blackrock has cut its stake to 4.96%. Separately, the Co confirmed the acquisition of peiker, adding: “The acquisition of peiker, which is expected to report sales of around E325 million for 2015, will have a positive impact on Valeo’s results starting in 2016.”

 

Haulotte Group posted FY15 net income down 4% YoY to E27.7M on revenue of E445.3M, up 8% YoY. The Co proposed a dividend of E0.22 per share. On the outlook, the Co said: “Haulotte Group expects sales growth of close to 5% in 2016 and a further improvement in its current operating margin rate.”

 

JCDecaux launched the digital transformation of the bus shelter network in London.

 

Rubis, Lagardere FY results expected.

 

Stock/Benchmark ratio(s) 50D MA cross under: Dassault Aviation (-4.41% to E1020).

 

Stock(s) 50D MA cross under: Dassault Aviation (-4.41% to E1020).

 

 

SPAIN – PORTUGAL – GREECE

Inditex posted FY15 net income of E2.88B (vs E2.90B expected) on revenue of E20.9B, up 8.5% YoY. The Co proposed a dividend of E0.60 per share.

 

Cie Automotive disclosed that it is considering strategic options for Global Dominion Access unit, which could include IPO of the unit.

 

EFG Eurobank Ergasias 1Q results expected

 

PT – Stock/Benchmark ratio(s) 50D MA cross under: Banco Comercial Portugues (-3.02% to E0.04)

 

GR – Stock/Benchmark ratio(s) 50D MA cross over: Alpha Bank AE (+5.26% to E1.8), EFG Eurobank Ergasias (+4.49% to E0.72).

 

ES – Stock(s) 50D MA cross under: DIA (-3.4% to E4.83)

 

PT – Stock(s) 50D MA cross under: Banco Comercial Portugues (-3.02% to E0.04)

 

GR – Stock(s) 50D MA cross over: Alpha Bank AE (+5.26% to E1.8).

 

 

BENELUX

EC: European Student Convention Amsterdam; Workshop: e-Infrastructure Reflection Group

 

Boskalis Westminster announced FY15 net income of E440M (vs E455M expected) on revenue of E3.24B (vs E3.14B expected). The Co expected FY16 net income to be “substantially lower than the very strong 2015 result”.

 

Relx reported that it had bought back 181.5K shares at E14.9307 per share yesterday (March 8).

 

Heineken was upgraded to “buy” from “neutral” at Goldman Sachs.

 

bpost FY results expected

 

NL – Stock/Benchmark ratio(s) 50D MA cross over: OCI (+3.31% to E17.32).

 

NL – Stock(s) 50D MA cross over: OCI (+3.31% to E17.32).

 

 

ITALY

Telecom Italia announced the completion of the sale of stake in Telecom Argentina to Fintech Group for $550.6M.

 

 

SWITZERLAND

Adecco announced FY15 EBITA up 10% organically to E1.08B on revenue of E22B, up 4% organically. The Co declared a dividend of CHF 2.4 per share. Separately, the Co recommended cash offer of 365p per share for Penna Consulting for appx £105M in total.

 

 

SCANDINAVIA – DENMARK

SE – Stock/Benchmark ratio(s) 50D MA cross under: Fingerprint Cards (-7.27% to SEK452.5).

 

FI – Stock(s) 50D MA cross under: UPM-Kymmene (-2.04% to E15.33)

 

SE – Stock(s) 50D MA cross under: Fingerprint Cards (-7.27% to SEK452.5).

 

 

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