LIVE MARKETS-Twitter noise: Apple boycott in China?

* European stocks slide: STOXX -0.7%, DAX -0.8%

* Ryanair reports weakest annual profit in four years

* Deutsche Bank hit record low on NYT Trump anti-money laundering report

* Asian shares steadied after U.S. lifted Canada tariffs

* U.S. futures point to weaker open

May 20 - 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

TWITTER NOISE: APPLE BOYCOTT IN CHINA (1038 GMT)

Noise of possible Chinese retaliation against Apple is souring the mood across

European markets, it seems, as investors speculate about what could happen after the U.S. took

action against the Chinese technology giant Huawei .

There's nothing official but traders mention some unverified tweets doing the rounds that

are giving way to fears that China could hit back at the U.S. by targeting the iPhone maker.

A bigger involvement of Apple in the trade fight between the two superpowers could have big

ramifications, with Apple having been the key driver of Wall Street's super long bull market.

And here's one Tweet, from the editor of China's Global Times, which has drawn attention

among traders:

Meanwhile, China demand risks have prompted HSBC to take the axe to Apple's price target.

What's sure is that markets are debating the link between the trade war and tech.

Here's a blog post on the issue we published last week: Tech tariffs + China stimulus =

expect Europe to beat Wall St

(Danilo Masoni and Thyagaraju Adinarayan)

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MIND THE GAPS! (0930 GMT)

Not one but three gaps matter for the market in the second half, according to Morgan

Stanley:

* narrowing output gap: they reckon the U.S. output gap - whose wideness has meant little

trade-off between growth and inflation - will continue to narrow, allowing for less policy

flexibility

* U.S. versus rest of world growth gap reversing as fiscal policy tightens: this favours

ex-U.S.

risk assets

* price versus fundamentals gap where markets have rallied too much year-to-date even as

fundamentals, such as earnings expectations, have deteriorated

Reflecting these risks, the bank's cross-asset strategists say "We like long ex-U.S. versus

U.S. stocks, European value versus growth, and select EM equity markets like India and Brazil."

European value stocks have lagged Growth ever since trade war first flared up in May 2018,

and as you can see below, they are still far off positive territory, while Growth has had a

strong recovery this year.

Adding to the signs of strain in the market, Morgan Stanley's cycle model has switched from

"expansion" to "downturn", as we reported on Friday, but they say an early downturn

can still see equities "eke out returns". "It is not time to be max-bearish yet," they write.

(Helen Reid)

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OPENING SNAPSHOT: CHIPMAKERS SLIDE, RYANAIR TUMBLES, AUSTRIA LAGS (0715 GMT)

European shares are slipping this morning with Austria's Wiener Boerse down 1% after its

vice chancellor resigned following a video sting and the country headed towards a snap election.

Ryanair is sliding 6.3% to a four-month low after the budget airline reported its weakest

profit in four years.

Infineon shares are down 2.1%, bottom of the DAX, after Nikkei reported the chipmaker halted

shipments to Huawei. Chipmaker peers AMS, STMicroelectronics, and ASML are all also down 1.8 to

3% on fears of disruption to their client base after Trump blacklisted Huawei.

STMicro is dragging Italy's FTSE MIB down 1.8%, lagging European peers.

In other results-driven moves, UK construction supplies firm Low & Bonar tanked 26% after

its profit warning and announcing its CEO's departure.

(Helen Reid)

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WHAT'S ON THE RADAR: RYANAIR, INFINEON, NOKIA, FOXTONS, LOW & BONAR (0656 GMT)

European stocks were set to steady on Monday after the U.S. lifting of tariffs on Canadian

steel and aluminium provided a brief respite from rising global trade tensions which have

bruised investors’ confidence.

In results, Ryanair shares were seen falling 3-5% after the budget airline reported its

weakest annual profit in four years, hurt by overcapacity and Brexit.

Siemens and Philips shares could fall after the European firms were named alongside Johnson

& Johnson and General Electric as part of an FBI investigation into alleged kickbacks in a

medical equipment sales scheme in Brazil.

Deutsche Bank shares were dropping 1.5% in pre-market trading after the New York Times

reported anti-money laundering specialists at the bank recommended in 2016 and 2017 some

transactions involving Trump and Kushner-controlled entities be reported to a financial crimes

watchdog.

Signs of conflict over Huawei indicated trade wars were far from resolved.

Infineon shares were expected to fall 1% after Nikkei reported the chipmaker suspended

shipments to Chinese technology company Huawei. Shares in Huawei rivals Nokia and Ericsson were

seen gaining 1%, meanwhile, after Reuters reported Google suspended some business with Huawei

after U.S. President Trump blacklisted the company.

British construction supplies maker Low & Bonar said CEO Philip de Klerk would leave the

company in July, as it warned the ongoing U.S.-China trade war had hurt sales. Traders expected

shares in the company to drop 10-30%.

Real estate agency Foxtons was seen falling 2-5% after reporting sales volumes were at

“record low levels” in Q1 as ongoing Brexit uncertainty hurts consumer confidence.

(Helen Reid)

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FUTURES SLUGGISH, NEW BLOW TO HUAWEI A BOOST FOR NOKIA, ERICSSON (0624 GMT)

While the U.S. lifting tariffs on Canadian steel and aluminium helps moderate global trade

tensions slightly, news of further measures against China's Huawei indicates things are far from

peaceful under the surface.

Futures are trading flat to slightly lower.

Nokia and Ericsson are both seen gaining around 1-2%, traders say, after the latest blow

against rival Huawei: a source said Google has suspended business with Huawei that requires the

transfer of hardware, software and technical services except those publicly available via open

source licensing.

And the FBI is investigating Johnson & Johnson, Siemens, General Electric, and Philips for

allegedly paying kickbacks as part of a scheme involving medical equipment sales in Brazil,

according to two Brazilian investigators.

EXCLUSIVE-Google suspends some business with Huawei after Trump blacklist

FBI targets Johnson & Johnson, Siemens, GE, Philips in Brazil graft case - sources

Unite Group raises 250 mln stg from external investors

Softcat Says FY Results Will Be Slightly Ahead Of Previous Expectations

Schroders still opposes Non-Standard Finance offer for Provident Financial

Co-op Bank, Barclays held failed takeover talks in late 2018- The Telegraph

(Helen Reid)

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RYANAIR RESULTS, DEUTSCHE BANK REPORT IN FOCUS (0553 GMT)

Results are slowing to a trickle this week but Ryanair stands out among reporters, while

Deutsche Bank is being hit by a New York Times report that anti-money laundering specialists at

the bank recommended in 2016 and 2017 that multiple transactions involving entities controlled

by U.S. President Donald Trump and his son-in-law Jared Kushner be reported to a financial

crimes watchdog.

Ryanair results aren't looking good: it reported its weakest annual profit in four years and

said earnings could fall further next year. Overcapacity, Brexit, and delays in delivery of the

Boeing 737 Max are taking their toll on the budget airline.

Deutsche Bank shares are falling 1.5% in pre-market trading after the New York Times report,

which it denied.

Swiss voters over the weekend approved a shake-up of the corporate tax system, eliminating

special low tax rates that benefit about 24,000 foreign companies based in the country.

Here are your early headlines:

Bank staff flagged Trump, Kushner transactions for watchdog -NYTimes

Ryanair posts weakest annual profit in 4 years

Swiss voters approve tax and pension overhaul

Benetton family wants Generali to stay in Italian hands - report

Givaudan To Acquire Vietnamese Flavour Company Golden Frog

Global dividends hit record in first quarter as companies shake off macro worries

(Helen Reid)

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EUROPEAN STOCKS PAUSE AS CANADA TARIFFS LIFTED, OIL JUMPS (0525 GMT)

European shares are expected to open mixed this morning after a volatile week. The U.S.

lifting tariffs on Canadian steel and aluminium is a much-needed boost to sentiment around

trade, while oil will also be a support. The oil-heavy FTSE 100 is expected to rise.

Asian shares steadied on Monday as investors caught their breath following another week of

escalating U.S.-China trade tensions, with sentiment turning brighter after the United States

said it would lift tariffs in North America.

The U.S. announced on Friday that it would remove tariffs on Canadian steel and aluminium,

prompting Canada's foreign minister to vow the quick ratification of a new North American trade

agreement.

Crude prices jumped after Saudi Energy Minister Khalid al-Falih said there was consensus

among the members of the Organization of the Petroleum Exporting Countries to maintain

production cuts to "gently" reduce inventories.

Financial spreadbetters expect London's FTSE to open 10 points higher at 7,358, Frankfurt's

DAX to open 5 points lower at 12,234, and Paris' CAC to open 6 points lower at 5,432.

(Helen Reid)

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(Reporting by Helen Reid, Danilo Masoni, Josephine Mason and Thyagaraju Adinarayan)