LIVE MARKETS-Rushing into telecoms? Curb your enthusiasm!

* European shares dip in morning deals

* Trump says he expects to raise China tariffs

* STOXX 600 ended at 1-week high in previous session

* Thomas Cook (Frankfurt: A0MR3W - news) tanks on profit warning, dragging peers

Nov 27 - Welcome to the home for real-time coverage of European equity

markets brought to you by Reuters stocks reporters and anchored today by Danilo

Masoni. Reach him on Messenger to share your thoughts on market moves:

danilo.masoni.thomsonreuters.com@reuters.net

RUSHING INTO TELECOMS? CURB YOUR ENTHUSIASM! (1133 GMT)

Telecoms are shining for a second day after a Reuters report that

the European Commission was set to clear a merger in the Netherlands *without

conditions* fuelled fresh optimism about dealmaking in the sector. But not

everyone thinks we're already seeing the light at the end of the tunnel.

Among them is Ottavio Adorisio, analyst at Societe Generale (Swiss: 519928.SW - news) in London, who's

rather cautious on what the implications of the "apparent" about-turn in the EU

antitrust policy stance could be. (Sources familiar with the matter said that

Deutsche Telekom (IOB: 0MPH.IL - news) will win unconditional EU antitrust approval to buy

Tele2 (LSE: 0QE6.L - news) 's Dutch business:)

"The rally was mostly driven by investors covering their underweights.

Accordingly, it would be wise to wait until Friday to see first if there is any

substance behind yesterday's press rumours. Specifically, we would be looking at

the rationale underpinning any EU's decision. If that decision is unequivocally

tied to the unsustainability of Tele2's Dutch operations, we doubt it could have

a long-lasting impact on sector's fundamentals," he says.

By the way, he's underweight on telcos and the sector's underperformance

over the past three years seemsto be proving him right.

Somewhat less downbeat is Luigi Minerva, analyst at HSBC: "We would... be

cautious before making the read-across that broader sector consolidation is

immediately back on the table. However, we would additionally point out that

there will be a new European Commission next year, which could indeed provide

the conditions necessary for the more fundamental rethink on mobile

consolidation that we have long argued is urgently needed".

The EU will publish its decision on Nov 30.

(Danilo Masoni)

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OPENING SNAPSHOT: THOMAS COOK CRATERS, TELE2 RALLY EXTENDS (0855 GMT)

No shortage of news on the corporate and political front this morning, and

while European stocks made a valiant attempt at gains in early trades they

quickly buckled under the weight of trade uncertainty and falling metals prices.

Thomas Cook's 31 percent dive takes the biscuit in terms of drama: the

company's 2nd profit warning in as many months has knocked nearly a third off

the shares, taking its year-to-date performance to -73%... It's fall dragged

rival TUI (LSE: 0NLA.L - news) down 5.8 percent as well, bottom of the FTSE 100.

Tele2 is extending yesterday's gains after sources said the EU would approve

Deutsche Telekom's purchase of the firm's Dutch business. It's top of the STOXX

600 with a 7.5 percent gain.

In other big movers, Greggs (Stuttgart: 41G1.SG - news) is set for its best ever day on the market, up

as much as 16 percent, after the bakery and food-to-go chain reported strong

sales in October and November and said it expected higher 2018 profits.

Here's your snapshot with Europe's major country benchmarks:

(Helen Reid)

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WHAT YOU NEED TO KNOW BEFORE THE OPEN (0752 GMT)

European shares are expected to open little changed as the focus turns to

possible developments on the trade dispute between China and the US after Trump

said he expected to move ahead with slapping tariffs on more Chinese imports,

tempering optimism over Brexit and a possible Italian budget deal with Brussels.

Futures on the main euro zone benchmark was flat.

On the corporate front, eyes will be on AccorHotels after Europe's largest

hotels company stuck to its target of doubling core earnings to 1.2 billion

euros by 2022 anticipating a boost to future dividends, although it looks the

update hasn't inspired with its shares indicated down 1 percent. In the same

sector, however, Thomas Cook cut its earnings forecast for the second time in

two months, sending its shares falling 10 percent in pre-market trade.

Traders said they will also be watching shares in Alstom (LSE: 0J2R.L - news) and Siemens (BSE: SIEMENS.BO - news) after

the FT reported that the EU may ask for larger concession to clear their

proposed merger, while still on the M&A front, Credit Agricole (Swiss: ACA.SW - news) 's insurance unit

said started exclusive talks to buy Charterhouse Capital's 50 percent stake in

Comexposium. A disappointing Q3 update from Chinese instant noodle and beverage

maker Tingyi (HKSE: 0322-OL.HK - news) may weigh on Unilever (NYSE: UL - news) , as the European group also sells

small-ticket consumer staples and is exposed to Africa and Asia.

(Danilo Masoni)

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THOMAS COOK WARNING, TOPPS TILES STOCKS UP FOR BREXIT (0739 GMT)

In UK headlines this morning there's more evidence of companies tweaking

supply plans and preparing for the consequences of Brexit, with Britain's

biggest tile retailer Topps Tiles (LSE: TPT.L - news) saying it will increase inventory of important

products to protect against supply chain disruptions.

A second profit downgrade in two months from holiday company Thomas Cook,

which also suspended its dividend blaming a particularly weak home market, is

likely to steal the show today with traders predicting the stock will fall 10

percent or more.

Headlines to watch:

Topps Tiles to stock up ahead of Brexit

Thomas Cook cuts profit forecast again due to weak British market

Pets At Home (Frankfurt: A1XFE7 - news) to reorganise business amid cost pressures

British subprime lender Amigo posts rising profits and revenues

Greggs expects stronger 2018 profit after rise in Oct (Shenzhen: 000069.SZ - news) , Nov sales

Indivior (Frankfurt: 2IVA.F - news) to discuss strategy, contingency plans on Dec (Shanghai: 600875.SS - news) . 18

Some UK lawmakers could support PM May's deal if she gives her exit date -

The Times

(Helen Reid)

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HEADLINES ROUND-UP: EYES ON NOVARTIS, ACCOR (EUREX: 485822.EX - news) , CAIXABANK (Amsterdam: CB6.AS - news) (0655)

On the corporate front it looks rather quiet, although investors may keep an

eye on shares in AccorHotels and Spanish lender Caixabank

after their updates, whole Novartis (IOB: 0QLR.IL - news) could also be on the watch-list after its

Alcon unit, being spun off to investors next year, outlined its plans.

Here is your full headlines round up:

Alcon sees 2020 dividend, bolt-on purchases in life after

Novartis

AccorHotels sticks to goals for future earnings growth

Spain's Caixabank raises 2021 profitability target

Loxo, Bayer (IOB: 0P6S.IL - news) drug for cancers driven by rare mutation gets U.S. nod

StanChart (HKSE: 2888-OL.HK - news) planning to simplify structure to curb costs - Bloomberg

Airbus to resume deliveries to HNA Group after payments dispute

AccorHotels announces $500 mln offer for rest of Poland's Orbis

Vopak to buy 44 pct stake in Elengy Terminal Pakistan

Saudi Aramco plans gas investments of $150 bln over next decade - CEO

Ghosn suspected of shifting personal investment losses to Nissan -Asahi

(Danilo Masoni)

*****

MORNING CALL: TRUMP THREAT SETS EUROPE FOR SOFTER START (0627 GMT)

European shares are set for a sluggish start today with fresh worries over

an escalation in the trade dispute between Washington and Beijing offsetting

optimism over a possible Italian budget deal with Brussels that helped lift

markets in the previous session.

Over in Asia, shares inched higher as they fought to keep a global rebound

alive after U.S. President Donald Trump seemed to quash hopes of a trade truce

with China, clouding what had been a bright start to the week.

"The resilience seen in the Asian session is not looking spill over into the

European session, with bourses across Europe pointing to a softer start," says

Jasper Lawler, Head of Research at London Capital Group.

In an interview with the Wall Street Journal, Trump said he expected to move

ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from

the current 10 percent and repeated his threat to slap tariffs on all remaining

imports from China.

And here are your opening calls, courtesy of LCG.

FTSE to open 6 point lower at 7030

DAX to open 9 points lower at 11343

CAC to open 4 points lower at 4990

(Danilo Masoni )

*****