LIVE MARKETS-What we're watching ahead of the open

March 19 - 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

WHAT WE'RE WATCHING AHEAD OF THE OPEN (0752 GMT)

European stock futures were down 0.2 to 0.5 percent, pointing to a more feeble start to a

busy week with investors’ eyes on Wednesday’s Federal Reserve meeting and the EU summit on

Brexit.

With (Other OTC: WWTH - news) earnings season drawing to a close, there are however results from Henkel (LSE: 0IZ8.L - news) and Micro

Focus which could jolt the shares.

Henkel warned the year was off to a slow start, its shares are indicated down 2-3 percent.

Micro Focus meanwhile is seen falling as much as 15 percent after it said annual

revenue would fall more than expected due to lower licence income and complications from its

purchase of Hewlett Packard (NYSE: HPQ - news) assets, prompting its CEO to quit.

M&A continues apace, and Hammerson’s rejection of Klépierre’s takeover

offer is likely to boost the UK commercial real estate firm’s shares.

It is offers such as these that many UK investors are hoping for when they buy into what

many see as the stocks most at risk from a disorderly Brexit, such as commercial real estate

investment trusts.

European companies like Klépierre have all the more to gain from buying the depressed shares

with the euro/sterling exchange rate so favourable. With the offer valuing Hammerson’s shares at

a 40.7 percent premium to Friday’s closing price, and the market’s short position on Hammerson

growing in the past month, the shares are likely to jump this morning.

News that activist investor Sherborne acquired a more than 5 percent stake in Barclays (Swiss: BARC.SW - news)

should shake up the British bank’s shares too.

(Helen Reid)

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COMPANY HEADLINES: MORNING ROUND-UP (0741 GMT)

Melrose (LSE: 136541.L - news) pledges to inject 1 bln stg in GKN (Frankfurt: 694194 - news) pension scheme

Apple (NasdaqGS: AAPL - news) is developing own MicroLED screens - Bloomberg

Pilots set up pan-European association to challenge Ryanair

Daimler (IOB: 0NXX.IL - news) cars unit invests to ramp up output to 3 mln vehicles

Sherborne acquires voting rights over 5.16 pct in Barclays

France's Klepierre (LSE: 0F4I.L - news) says offer to buy Hammerson (Frankfurt: 876140 - news) rejected

Micro Focus downgrades 2018 revenue forecast, CEO steps down

UK gambling commission makes recommendations on FOBT machines

Henkel warns that delivery woes in North America damp Q1 start

CEO of Germany's GEA Group (IOB: 0MPJ.IL - news) to leave in April 2019

Societe Generale (Swiss: 519928.SW - news) hopes for resolution to IBOR, Libya investigations within weeks

Shipping firm CMA CGM sees industry rebound continuing

Rocket Internet (Swiss: OXRKET.SW - news) explores IPO of online shopping group Jumia - sources

Kering (LSE: 0IIH.L - news) says Swiss activities tax-compliant

(Tom Pfeiffer)

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FUTURES POINT TO SLOWER START AS FED LOOMS (0712 GMT)

Futures are down 0.2 to 0.4 percent across the main European benchmarks, confirming

spreadbetters' calls of a more cautious start to the week.

With earnings season drawing to a close, corporate news is thin on the ground but M&A news

is still coming in: Hammerson has just announced it rejected an acquisition offer by

Klépierre which valued the UK real estate company's shares at a 40.7 percent premium

to their closing price on Friday.

(Helen Reid)

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MORNING CALL: CAUTION DOMINATES FIRST DAY OF BUSY WEEK

Good morning and welcome to Live Markets.

European stocks are called down this morning, following the lead of Asian markets which hit

a speed-bump in the first trading day of a busy week. Britain prepares for a critical EU summit

this week, and investors are also eyeing Jerome Powell's first press conference as Federal

Reserve Chair and the central bank's decision on Wednesday.

Asian shares were mixed as tension built ahead of this week's Fed meeting which will likely

result in an interest rate hike.

Spreadbetters call the DAX 17 points lower at 12,373, the CAC 40 down 17 points at 5,265,

and the FTSE 100 16 points lower at 7,149.

(Helen Reid)

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