LIVE MARKETS-Opening snapshot: Europe taking Chinese GDP data in its stride
* European stocks slip at open
* Henkel (LSE: 0IZ8.L - news) biggest faller after announcing increased investments
* China Q4 GDP growth in line at 6.4%
* Overall 2018 growth slowest since 1990
Jan 21 - 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
OPENING SNAPSHOT: EUROPE TAKING CHINESE GDP DATA IN ITS STRIDE (0833 GMT)
Pan-European shares are taking a breather after four straight days' gains last week that saw
the index hit six-week highs, but in early dealings the markets are taking Chinese GDP data in
their stride.
That suggests much of the pessimism about the world's second-largest economy may be baked in
after months of nasty headlines (a slew of macro data as well as Apple (NasdaqGS: AAPL - news) 's warning earlier this
month and 2018 car sales falling for the first time since 1990s)
STOXX 600 is down 0.3 percent - Germany's exporter-heavy DAX is down 0.3 percent while the
FTSE 100 is up slightly even as investors brace for more Brexit tumult this week.
(Helen Reid)
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WHAT'S ON THE RADAR: SCOUT24 (IOB: 0RB8.IL - news) , WIENERBERGER (IOB: 0MKZ.IL - news) , WILLIAM HILL (Frankfurt: 633847 - news) (0744 GMT)
European stocks are expected to fall, with futures down 0.1 to 0.3 percent after a strong
rally at the end of last week took indices to six-week highs.
China’s fourth-quarter growth data showed 2018 was the weakest year for the world’s
second-biggest economy since 1990, confirming a slowdown which has sent markets in Asia and
worldwide into a spin. Asian markets held onto gains despite the news, but exporter-heavy
European stocks, many of which depend on demand from China, were likely to be hit.
The closure of U.S. markets for Martin Luther King Day will likely keep trading thin, but
there's a lot for traders to digest on the company news front.
Sources said EU antitrust regulators were poised to veto Siemens (BSE: SIEMENS.BO - news) and Alstom’s plan to
combine to form a European rail champion, despite German and French support for the deal.
Also in M&A news, German online classifieds company Scout24 is seen jumping 10 percent after
it rejected a 4.7 billion euro takeover offer from private equity firms Hellman & Friedman and
Blackstone (NYSE: BX - news) , potentially paving the way for a bidding war.
Earnings started to flow in with Wienerberger and William Hill reporting.
Some good news for the construction sector as the world’s largest brickmaker, Wienerberger,
raised its dividend, saying it would reach the upper end of its 2018 earnings guidance thanks to
acquisitions and cost savings.
Bookmaker William Hill struck a more pessimistic note, saying it sees lower 2018 profit.
Shares (Berlin: DI6.BE - news) in French supermarket Casino could be moved after it announced it plans to sell 26
stores worth 501 million euros – in its latest step to reduce debt.
Pharma giant GSK and food delivery firm Just Eat (Frankfurt: A1100K - news) both announced management changes, with
GSK’s chairman to step down after more than three and a half years in the role and Just Eat’s
CEO Peter Plumb leaving with immediate effect.
(Helen Reid)
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FUTURES DIP AFTER CHINA DATA, AS BREXIT PLAN B AWAITED (0718 GMT)
Despite spreadbetters' calls for gains, European futures have opened down 0.1 to 0.3
percent, indicating a fall after China's fourth-quarter growth data showed 2018 was its slowest
year in 28 years.
Traders and investors will also be looking ahead to the next development on the Brexit front
with Prime Minister Theresa May set to present her plan B to parliament after her deal got
soundly defeated last week.
"Plan B to look suspiciously like Plan A," Societe Generale (Swiss: 519928.SW - news) economists write. "We are rather
puzzled about what changes she intends to present... Presumably the debate on her plans in the
days that follow will discuss alternatives to her negotiated deal."
In UK company news:
William Hill sees lower 2018 adjusted operating profit
UK's Just Eat CEO Peter Plumb steps down
GSK Chairman Hampton to step down
Meggitt (Other OTC: MEGGF - news) signs 750 mln pound contract with engine maker Pratt & Whitney
Patisserie Still In Discussions With Bankers To Extend Standstill Of Bank Facilities
(Helen Reid)
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HEADLINES TO WATCH: ALSTOM (LSE: 0J2R.L - news) -SIEMENS, PROSIEBEN, CASINO (0655 GMT)
With (Other OTC: WWTH - news) results starting to come in thick and fast this week, there's also a lot of corporate
news to keep traders busy, despite today being slightly thinner due to U.S. markets being closed
for Martin Luther King day.
EU antitrust regulators are to throw a spanner in the works for Siemens and Alstom's plan to
create a European rail champion, sources said, despite Germany and France backing the deal.
Shares in ProSiebenSat. 1 Media could be moved by the firm's CEO Max Conze saying he saw
price increases by U.S. streaming giant Netflix (Xetra: 552484 - news) as potentially easing competitive pressure on
the group's core TV business.
In retail, further evidence of the drive for supermarkets to cut down on physical stores as
France's Casino sells six stores to rival Leclerc.
And potentially bad news for pricing power among British energy suppliers as data shows a
record number of customers switched supplier in 2018.
Nissan's Ghosn offers to wear electronic ankle tag for bail
Nissan, Renault (LSE: 0NQF.L - news) not ready to discuss new capital ties - Saikawa
ProSieben sees pressure easing as Netflix raises prices
Western Australia claims BHP owes up to $215 mln in underpaid iron ore royalties
Supermarket retailer Casino to sell six stores to rival Leclerc
EU to derail Siemens, Alstom's European champion plan - sources
Record (LSE: REC.L - news) number of British energy customers switched supplier in 2018 - data
Engie (LSE: 0LD0.L - news) set to sell some coal power plants to Riverstone -Les Echos
Italy regulator gives TIM's network separation plan thumbs down
(Helen Reid)
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EUROPEAN STOCKS TO SHAKE OFF WEAK CHINA GROWTH DATA (0616 GMT)
European shares are seen rising modestly this morning after Asian markets held on to gains
despite data showing China's economy cooled in the fourth quarter, dragging 2018 growth to the
lowest in 28 years (at 6.6 percent) and pressuring Beijing to roll out more stimulus.
Asian markets kept their nerve on Monday as data showed the Chinese economy slowed at the
end of last year, underlining the urgent need for more stimulus as Beijing wrestles with the
United States over trade.
The world's second-largest economy grew 6.4 percent in the fourth quarter from a year
earlier, as had been expected and matching levels last seen in early 2009 during the global
financial crisis.
Yet there were some bright spots with industrial output rising a surprisingly strong 5.7
percent, while retail sales rose 8.2 percent in December, from a year earlier.
Financial spreadbetters expect London's FTSE to open 15 points higher at 6,984, Frankfurt's
DAX to open 14 points higher at 11,220 and Paris' CAC to open 10 points lower at 4,866.
(Helen Reid)
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(Reporting by Helen Reid, Danilo Masoni, Julien Ponthus)