LIVE MARKETS-5 things about 5G (and 1 about 6G)

* European shares higher

* Trump delays tariff hike on Chinese goods

* Autos lead sectoral gainers

* Wall St opens higher

Feb 25 - Welcome to the home for real-time coverage of European equity markets brought to

you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to

share your thoughts on market moves: helen.reid.thomsonreuters.com@reuters.net

5 THINGS ABOUT 5G (AND 1 ABOUT 6G) (1513 GMT)

Leading telecoms executives are gathering in Barcelona for the industry's most important

annual event and no doubt that 5G is going to be high on the agenda.

But what exactly will be the impact of 5G and which are the companies that are going to

benefit the most?

Neil Campling, head TMT research at Mirabaud Securities, has listed five things to know

about the technology that will shape the next generation's mobile services and has been at the

centre of the fight between Washington and Beijing over network security.

1. 5G is expected to deliver more than $12 trillion of economic stimulus by 2035

2. 5G is expected to be responsible for 22 million jobs around the world

3. 5G download speeds could be 1,000 times faster than those currently enjoyed through 4G

4. 5G network speeds will reach 1Gbps and beyond, allowing an HD movie to be downloaded in

less

than 7 seconds

5. 5G testing market is now growing at more than 100 percent per year

And his top picks cut across all geographies, market caps and areas of business - testing,

tower companies, infrastructure, and technology enablers.

"The winners in the testing arena we see as Keysight, Anritsu and Spirent while the tower

densification movement should support China Tower, Cellnex and Crown Castle. Nokia and Ericsson

should benefit from Western markets seeking alternatives to equipment from Huawei and ZTE and

Comsys is leveraged to the fast growth of access-related projects. CommScope, Qorvo and Comba

round out the basket of 12 names; each with a unique offering in 5G," says Campling.

Below a chart showing how almost all of these stocks have beaten the broader MSCI World

index over the past 3 months.

Given you have read so far you may have appetite for more. Check out this for links

to the top stories out of BARCELONA.

And final bonus, a Trump tweet highlighting how 5G -- and even 6G (which still doesn't

exist...) -- is important for the world's largest economy.

(Danilo Masoni)

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MIFID II, ONE YEAR ON? "MIXED, AT BEST" (1452 GMT)

The biggest regulatory change ever, according to some, swept European equity markets last

year. A year and a bit after MiFID II, JP Morgan's global market strategist Nikolaos

Panigirtzoglou and team make an initial, rather scathing, analysis:

"With MiFID II still an evolving regulation, the experience during its first year has been

at best mixed."

Their main takeaways, a year (and a bit) after MiFID II:

* "Markets appear to have reacted to the post-MiFID II pressure for more transparency by

fragmenting liquidity over a wider range of new execution options that allow for less, rather

than more, transparency"

* While the new rules facilitated more electronic trading, more competition across execution

platforms and lower bid offer spreads, it is not clear that overall price discovery, execution

costs or market liquidity got better.

* The share of off-exchange trading in European equities failed to decline last year by as

much as

regulators had hoped suggesting that there is genuine high demand for off-exchange or dark

liquidity

Below you can see Fidessa's latest data on the share of large block trades executed on dark

pools - it's clear how it has dropped off since the caps on dark pool trading rolled off:

(Helen Reid)

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CORPORATE DEFAULTS: THE CURRENT THING UH HUH! (1328 GMT)

The list of things that could potentially flag or cause the end of this cycle is a long and

fast-changing one. What's on investors' minds changes quickly and the biggest threats to markets

need to be updated frequently.

The U.S. yield curve was front and centre last year as was equity volatility. A few years

before that we had a big scare on China with oil and commodity prices in the spotlight.

The current list of worries is full with trade wars, global growth slowdown, Brexit, euro

zone political risks, car loans, student loans, EM sovereign stress, you name it!

One indicator that is getting particular attention these past few weeks is corporate debt

and whether it will cause the next crisis.

One reassuring indicator from Moody's is that 2018 doesn't seem to bring bad omens.

"Global defaults fell in 2018 in advanced markets and were stable in emerging markets," a

report published today found.

Looking ahead, it doesn't look that sinister either in the short run:

"We expect the global speculative-grade default rate to remain fairly stable in 2019 versus

2018, based on our assumptions of healthy corporate financials, low refunding risk and positive

economic growth, although slower than in 2018," writes Moody's.

Anyhow, if it's not corporate debt, it will be something else!

So the beat goes on, and the list goes on.

(Julien Ponthus)

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ANOTHER CYCLICALS BULL ENTERS THE FRAY (1219 GMT)

JP Morgan's equity strategy team is also making the call that cyclicals are the place to be

despite multiple data points showing a slowing global economy.

"Bears argue that one should be positioned defensively this late in the cycle, especially as

the earnings outlook is seen to be very uncertain," say Mislav Matejka and team.

"We disagree and believe beta sectors have further upside."

The arguments are largely the same as UBS's: valuations of cyclicals are still pricing in

too negative a macro outlook, and they predict the momentum of cyclicals' earnings will

re-accelerate in the second half as "China bounces, euro-zone data stabilises, U.S. growth

proves to be resilient, trade uncertainty washes out and commodity prices move higher".

Matejka and team say global cyclical plays such as semiconductors, capital goods and autos

are attractive.

As you can see below, cyclicals have managed a modest bounce in 2019 so far as the euro-zone

economic surprise index also inches up.

(Helen Reid)

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NEVER MIND MACRO SLOWDOWN, BUY CYCLICALS! (1028 GMT)

That's in a nutshell what strategist at UBS led by Joao Toniato say, arguing that valuations

are attractive and weaker European economic growth is largely priced in.

"Hence we are increasing our cyclical exposure," they say, adding that any stabilization in

PMIs and European economic data is likely to bring cyclical outperformance from here.

But how does that play at the sector level?

Well, Toniato and team have upgraded Luxury Goods to Overweight from Underweight at the

expense of the defensive Pharma and Commercial Services, both cut to Neutral.

"Most of the reasons that made us concerned when we downgraded the (Luxury Goods) sector in

August 2018 seem to be reversing. The headwind from the renminbi could be about to turn. EM

relative performance also seems to have changed in favour of EM and this supports the sector

valuations," they say.

Their key buys in are LVMH, Hermes, Ferrari and Moncler

.

Below you can see how the relative discount of cyclical vs defensives has started to rebound

after hitting extreme levels. In the second chart the relative dividend yield.

(Danilo Masoni)

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OPENING SNAPSHOT: RELIEF OVER TRADE LIFTS MARKETS (0832 GMT)

European shares are extending Friday's gains, testing the October highs hit last week as

investors cheer news that the United States will delay implementing more import tariffs on

Chinese goods.

Trade-sensitive DAX is up 0.44 percent boosted by relief over trade tensions while autos and

miners, which are vulnerable to the vagaries of the U.S.-China trade dispute, are leading the

gainers across the pan-European market.

Milan is outperforming the broader market, up 1 percent and hitting its highest since Oct. 5

after rating agency Fitch affirmed Italy's credit rating. Banks are among the top gainers. The

FTSE 100 and 250 are lagging their peers amid deepening uncertainty over Brexit.

Among standout individual moves, Persimmon is down 8.1 percent at the bottom of the STOXX

600 and dragging the UK housebuilders with it after sources said the government is reviewing

Persimmon's practices in the 'help-to-buy' scheme.

Bank of Ireland is down 5.5 percent at January lows after forecasting lower net interest

margin for 2019, while German chemicals firm Covestro is falling after announcing 2019 EBITDA

could drop to as little as half last year's level as competitive pressure rises.

Here's your snapshot:

(Josephine Mason)

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WHAT'S ON THE RADAR FOR THE OPEN (0747 GMT)

Futures for the main European benchmarks jumped on Monday following a strong rally in Asian

shares after U.S. President Trump confirmed a delay in the March 1 tariff deadline after

“productive” talks with China.

Germany’s trade-sensitive DAX will likely lead the way as its industrial and carmaker shares

gained. The FTSE 100 meanwhile is lagging slightly after another delay to a vote on Prime

Minister May’s Brexit deal.

Outside the trade war news, there are company results and dealmaking aplenty to keep traders

active.

German chemicals firm Covestro is expected to fall 3-5 percent after announcing 2019 EBITDA

could drop to as little as half last year's level as competitive pressure rises.

After weak results from Danish container shipping firm Moeller-Maersk sent the shares

reeling on Thursday, Germany’s Hapag-Lloyd sounded a more confident note, reporting a strong

rise in 2018 profit thanks to better freight rates and transport volumes.

Primark owner Associated British Foods is expected to trade flat to 1 percent higher after

it forecast earnings in line with the previous year.

Reports in the Times and Telegraph that the UK government may ban Persimmon from the help to

buy programme could hurt shares in the housebuilder, traders said.

M&A may be a driver with two deals in the pharmaceuticals space: Ipsen agreeing to buy U.S.

peer Clementia Pharmaceuticals, and Roche buying gene therapy specialist Spark for $4.3 billion.

Some traders saw Sweden’s Sobi falling after the Roche acquisition.

(Helen Reid)

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FUTURES JUMP AS INVESTORS CHEER TRADE TARIFF REPRIEVE (0716 GMT)

European stock futures are up 0.1 to 0.5 percent, with the DAX in the lead, as Trump's

confirmation of a delay to the March 1 trade tariff deadline boosts markets across the world.

Delays are also on the menu for the UK with Prime Minister Theresa May telling reporters on

the sidelines of an EU-Arab League summit in Egypt that she would bring a vote on her Brexit

deal back to parliament by March 12 - delaying this week's planned "meaningful vote".

"While Asia markets cheer for the delay in an increase in U.S. tariffs on Chinese goods, in

Europe Brexit is pervading every aspect of UK public life as the scheduled departure date of 29

March heaves into view," write Societe Generale economists.

FTSE 100 futures are lagging European peers, up just 0.1 percent, though it's unclear

whether that is Brexit-related.

(Helen Reid)

*****

ON THE CORPORATE NEWS FRONT: COVESTRO RESULTS, PHARMA M&A (0648 GMT)

With European shares sure to power through the four-month highs they ended the week at,

there's also a lot of results and company news to keep trading busy.

German chemicals firm Covestro could fall after announcing 2019 EBITDA could drop to as

little as half last year's level as competitive pressure rises.

Meanwhile there's a lot of pharma M&A in the air with both France's Ipsen and Switzerland's

Roche buying smaller companies.

Ipsen agreed to buy U.S. peer Clementia Pharmaceuticals in a deal worth up to $1.31 billion,

in a bid to boost its portfolio of products treating rare diseases. Roche said it will buy gene

therapy specialist Spark Therapeutics in a $4.3 billion deal.

And after poor results from Moeller-Maersk on Thursday, German container shipping firm

Hapag-Lloyd sounds a more confident note, reporting higher 2018 operating profit thanks to

greater transport volumes and freight rates.

Here are your headlines:

Covestro says 2019 EBITDA could halve as competition heats up

Ipsen to buy Clementia Pharmaceuticals in deal worth up to $1.3 bln

Hapag Lloyd lifts 2018 operating profit on volume, freight, synergies

Roche to buy gene therapy specialist Spark in $4.3 bln deal

Netherlands' PostNL plans to buy competitor Sandd

Credit Agricole's CACEIS to buy Netherlands' KAS Bank for 188 mln euros

Fugro's 2018 EBIT turns positive to 13.1 mln euros

Bayer faces second trial over alleged Roundup cancer risk

Novartis licenses rights to RNA-targeting cardio drug from Ionis

Vivendi backs Telecom Italia, Open Fiber network merger under right conditions

(Helen Reid)

*****

MARCH 1 TARIFF DELAY TO BOOST EUROPE AFTER CHINESE SHARES JUMP (0632 GMT)

European shares will jump this morning after Trump said he would delay the planned March 1

hike in tariffs - with the biggest gain seen for the trade-sensitive DAX.

A surge in Shanghai shares with Chinese blue chips up 3.5 percent led Asia higher on Monday

after U.S. President Donald Trump confirmed he would delay a planned hike in tariffs on Chinese

imports as talks between the two sides made "substantial progress".

President Donald Trump said on Sunday he would delay an increase in U.S. tariffs on Chinese

goods thanks to "productive" trade talks and that he and Chinese President Xi Jinping would meet

to seal a deal if progress continued.

Spreadbetters at IG expect London's FTSE to open 9 points higher at 7,188, Frankfurt's DAX

to open 35 points higher at 11,493 and Paris' CAC to open 10 points higher at 5,215.

(Helen Reid)

*****

(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus)