|Bid||6,766.00 x 0|
|Ask||6,772.00 x 0|
|Day's range||6,708.00 - 6,848.00|
|52-week range||1,656.00 - 7,922.00|
|Beta (3Y monthly)||0.59|
|PE ratio (TTM)||49.94|
|Earnings date||1 Aug 2019|
|Forward dividend & yield||0.40 (0.58%)|
|1y target est||4,810.83|
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. EURONEXT: WHOSE FAT FINGER WAS THAT? Just a few minutes after the open, Euronext shares suddenly lost more than 8% and hit for a brief moment the bottom of the STOXX 600, which was already a crowded place with big losers such Royal Mail, Thyssenkrupp and Fiat Chrysler for instance.
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. U.S. and Asian investors are piling more cash into Europe’s tech sector, drawn by a growing number of successful startups and its relatively neutral status as tensions between Washington and Beijing simmer.More than one in five funding rounds raised in Europe involved a U.S. or Asian investor, up from one in 10 in 2015, London-based venture capital firm Atomico said in a report published Thursday.“Europe potentially can become a beneficiary as the middle ground between the two regions,” said Tom Wehmeier, Atomico’s head of research, who wrote the report with law firm Orrick, Herrington & Sutcliffe LLP and the organization behind the Slush technology conference in Helsinki. A driving factor for Asian investment activity in Europe is “the perception that the U.S. has been a closed market for them.”While the total invested in Europe is still much smaller than Asia and the U.S., it’s growing while they stagnate or shrink, the report shows. European tech companies are set to raise a record $34.3 billion in 2019, up from $24.6 billion last year. By contrast, investments in the U.S. are slightly down from $118 billion last year, while dropping off sharply in Asia to $62.5 billion after a steep increase in recent years.North American venture capital funds poured almost $10 billion into Europe this year, up from $5.8 billion in 2018, while Asian funds have invested $4 billion, up from $1.7 billion, according to the report, which estimated full-year figures based on the first nine months of the year.The report is based on data from organizations including the London Stock Exchange and the European Investment Fund, as well as a survey of founders, investors and developers.The growing influx of foreign capital comes as the U.S. and China have been locked in an ongoing trade dispute for the past year, with tariffs roiling financial markets. The world’s two largest economies are seeking to close a preliminary agreement to end their trade war, but negotiations remain tough.The “unprecedented level of interest” in European tech is also driven by the strength of the companies in the region, Wehmeier said. He pointed to the 99 venture-backed firms in Europe now valued at more than $1 billion, up from 22 five years ago.Read more about the trade war here.Still, the cash isn’t necessarily being distributed equitably. A lack of diversity persists in Europe’s tech sector. In 2019, 92% of all funding went to all-male teams in Europe, and funding for all-women teams is declining, according to the report. About 84% of the founders surveyed identified as white, while less than 1% said they were black, African or Caribbean.Atomico had flagged the problem of diversity in European startups a year ago when it found that about half of women in a survey said they’d experienced discrimination. A bright spot has been quantum computing where 23% of European companies in the field had a mixed gender or woman-led founding team.To contact the reporter on this story: Natalia Drozdiak in Brussels at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy Thomson, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chinese power generation group SDIC is pressing ahead with plans to launch an offering of global depositary receipts (GDRs) in London under a link with the Shanghai exchange, defying a dismal season for stock listings in Europe. If successful, SDIC will make its London debut in December, becoming the second Chinese firm to float in Britain under the Stock Connect link with the Shanghai exchange. It would also be a bright spot for the London Stock Exchange, which has seen a number of initial public offerings (IPOs) cancelled or postponed amid market uncertainty.
PARIS/ZURICH, Nov 18 (Reuters) - Pan-European stock market operator Euronext and Switzerland's SIX sparked a bidding war for Spain’s Bolsas y Mercados Espanoles (BME) on Monday, with both trying to snap up one of Europe’s last standalone stock exchanges. SIX made a friendly all-cash offer for the Spanish bourse, whose shares jumped by more than a third in early trading, while Euronext said it was in talks with BME with a view to a potential bid, without saying how much it was prepared to pay. With European sector leaders Deutsche Boerse and London Stock Exchange (LSE) effectively too big to consolidate without raising serious competition concerns, mergers are focused on smaller players, with Euronext having already scooped up the Dublin and Oslo exchanges.
(Bloomberg Opinion) -- A new call to shorten European stock-market trading hours by an hour in the morning and a half hour in the afternoon is hard to fathom.The Association for Financial Markets in Europe and the Investment Association want to do this for the noblest of reasons: offering a better quality of life to traders and opening the door to more female participation in the markets workforce. Sadly, I can’t see it changing working patterns much.It’s important to stress too that the start of the day and the end of the day are two very different things for traders in terms of their importance. A later start — which used to happen at the London Stock Exchange — is neither here nor there. The opening auction is an insignificant part of daily trading volume. A stockbroker’s day begins well before the opening bell anyway with a plethora of meetings, calls and frantically written sales and trading notes. Putting back the official start wouldn’t change that, even if it made things a little less frenetic.Messing with the closing auction would be more perilous. About one-third of daily trading volume bunches into those final minutes, with exchange-traded funds looking to set their hedging on the closing price. Asset managers’ trading desks also increasingly have to wait to complete their orders at the close of play because they’re determined by the day’s trading volumes. An earlier close might make it more difficult to complete orders efficiently.Neither would shortening the trading day by 90 minutes encourage U.S. and Asian trading in European equities, which have hardly had a great run. The EuroStoxx 50 is still below its 2015 highs, whereas the S&P500 has risen about 50% on a similar time-frame. Having a proper overlap with New York trading hours is vital.True, the cultural shift signified by moving away from the long-hours ethos can’t be dismissed, and it could even improve the markets’ functioning by allowing longer digestion of corporate news. But the benefits seems marginal. Financial markets are about much more than stock exchanges. Much activity happens outside of the official marketplace, especially in derivatives.Would having less time lead to greater efficiency? Maybe, though it’s not certain when there are so many other tasks to swallow up that notional extra time.The unhappy reality is that shorter trading hours are unlikely to change worker conditions or make employment at an equity broker or exchange much more conducive to people with family commitments. The open-all-hours mantra — from Hong Kong to London to New York and back again — has long prevailed in financial markets.The trend in equity markets is toward fewer humans anyway, with technology and electronic trading increasingly dominant. It seems odd, therefore, to shorten the availability of people when it might be more logical to fight back by improving and widening the services they offer. To contact the author of this story: Marcus Ashworth at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Marcus Ashworth is a Bloomberg Opinion columnist covering European markets. He spent three decades in the banking industry, most recently as chief markets strategist at Haitong Securities in London.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Europe’s biggest buyers and sellers of equities say they should work a shorter day.The Association for Financial Markets in Europe and the Investment Association asked exchanges in London and throughout the continent to consider cutting 90 minutes from their opening hours, citing the impact of technology and the evolution of trading patterns.While promoting a more efficient marketplace, a shorter work day would also address concerns over work-life balance and gender diversity, according to the industry groups. And even at 7 hours (from 9 a.m to 4 p.m. London time), the European trading day would still be longer than in the U.S. and Japan and overlap with American markets. The current trading day in London runs from 8 a.m. to 4:30 p.m.“Equities trading risks lagging behind a wider financial-services industry push for more diversity and inclusion unless the long trading day is tackled by an industrywide approach,” said April Day, managing director and head of equities at AFME, which counts the world’s biggest banks and asset managers among its members, including Goldman Sachs Group Inc. and BlackRock Inc.Twenty years ago, the situation was different: Europeans were lengthening their hours as financial markets boomed, positioning themselves as the logical center of global finance by straddling the U.S. and Asian trading days and hoping to prevent the Americans from taking liquidity in Europe’s biggest stocks. In March 1999, the London and Frankfurt exchanges agreed to synchronize their trading day -- with the Brits having to wake up an hour earlier: U.K. trading moved to 8 a.m. from 9.Today, the City of London is grappling with multiple reports of sexual harassment and a macho culture. In the world of equity trading, the expectation of working long hours has made it harder to recruit people with family commitments, and it “impacts on traders’ mental health and well-being,” according to the letter from the industry groups, which was released Thursday.Structural changes in the way stocks are traded are also lessening the appeal of the long trading day. London Stock Exchange Group Plc Chief Executive Officer David Schwimmer said recently that investors are increasingly waiting to closing auctions to buy and sell, rather than making trades across the course of the day. Some market watchers have linked that phenomenon to the growth of exchange-traded funds that rely on end-of-day prices.LSE said it will consult with members and customers on the proposals, while a spokeswoman for CBOE Europe said a shorter trading day was an interesting concept worthy of discussion. So did Stephane Boujnah, who runs Euronext SA, owner of the French and Dutch exchanges. Banks and brokerages also weighed in. Alasdair Haynes, who runs Aquis Exchange Plc, a pan-European equity trading venue, said he’s supportive of the initiative. However, he would like to see a trial on a subset of exchanges across Europe first, and “real evidence that shorter hours will enhance markets.”Ben Springett, who heads European electronic trading at Jefferies Financial Group Inc., said compressing the day’s trading could improve efficiency and reduce transaction costs, but the human side would be important as well.“I have spent a significant amount of time understanding the challenges that a long trading day presents for people managing their work-life balance, and a reduced duration would naturally make this easier,” said Springett, who also co-chairs the firm’s Women’s Initiative Network.Michael Barsuhn, head of trading at Flossbach von Storch in Germany, said that the measures could help get more women into finance and reduce trading costs, but won’t be sufficient to change the work-life balance on their own. “It does very little without a change in corporate culture and management thinking,” he said.Meanwhile, some working in the 24-hour derivatives markets rolled their eyes. “It’s quite interesting to see equity traders complaining about working hours,” said Anthony Cohen, a futures and options broker at GFI Securities in Paris. “If I could work from 8 a.m. till 5:30 p.m. every day, it would almost feel like a holiday.”Equity traders in the U.K. have an average base pay of 107,000 pounds ($137,000), according to Glassdoor, a job and recruiting website.(Adds history, further reactions from fifth paragraph.)\--With assistance from Jan-Patrick Barnert and Michael Msika.To contact the reporter on this story: Viren Vaghela in London at email@example.comTo contact the editors responsible for this story: Ambereen Choudhury at firstname.lastname@example.org, Keith Campbell, Marion DakersFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
London Stock Exchange said it intends to start a consultation after a call for Europe-wide review into trading hours to improve inclusion and efficiency.
European shares rose for a fifth straight session on Thursday to hit fresh four year highs as investors cheered signs of progress in U.S.-China trade talks and largely positive earnings reports from a host of companies. Shares of Siemens hit their highest in more than a year after the German industrial company beat fourth-quarter profit expectations, while Italy's biggest bank UniCredit rose 6% after announcing its first share buyback in more than a decade after solid third-quarter earnings. Lufthansa jumped 6.8% on plans to cut costs at some of its units to revive profit.
Banks and fund managers want the European stock trading day shortened by 90 minutes in a radical move they say would improve market efficiency and staff wellbeing - but exchanges are split. The Association for Financial Markets in Europe (AFME), a banking industry body, and UK-based Investment Association (IA), which represents asset managers, said Europe had some of the longest trading hours in the world at 8-1/2 hours.
New European Union hubs opened by British-based financial firms to avoid Brexit disruption will be scrutinised next year by the bloc's markets watchdog to check whether they are gaming licensing requirements. This signals how the bloc will keep up pressure on new hubs to meet licence terms, even if Britain secures a divorce settlement with a standstill transition period to the end of 2020 after the deadline for Brexit.
(Bloomberg) -- The chief executive officer of Hong Kong’s stock exchange apologized for recent remarks on China’s handling of the former British colony, becoming the first prominent local business leader to express remorse after stepping on the political landmine.Charles Li, who runs Hong Kong Exchanges and Clearing Ltd., said on Friday he’s sorry for any confusion caused by his remarks that civil unrest had exposed faults underlying the “one country two systems” framework for the city’s return to Chinese rule in 1997. “I am the biggest supporter of one country two systems,” he said.Earlier this week, he had said the system’s initial execution was fundamentally flawed and noted that Beijing authorities never trusted the former British colony to uphold its rule. On Friday, he said the design is perfect and that it’s only a problem of implementation. He said he shouldn’t have touched on such politically-sensitive issues as a businessman. His intent had been to give people abroad context and a more complete picture of what’s happening in Hong Kong.Comments when “translated into pieces, and translated and reported out of context,” may sometimes not precisely reflect the speakers’ intent, he said on Friday.Li, the first Chinese national to lead the stock exchange in the former British colony, made his controversial comments in London earlier this week, just days before the police shot tear gas into crowds along streets and bars celebrating Halloween. Until his remarks, CEOs and other business leaders in Hong Kong had largely avoided discussing the months-long pro-democracy protests, a topic that’s repeatedly proven problematic for a variety of prominent figures outside China.For executives, the danger of wading in is that they risk upsetting authorities in Beijing -- but also protesters, who’ve targeted stores including local franchises of Starbucks over perceived slights.The National Basketball Association had its exhibition games pulled from the airwaves in China and its Chinese sponsors disappear after the Houston Rockets’ general manager tweeted his support for the protesters. Meanwhile, activists called for protests at Apple stores after the company pulled a live-mapping app that tracked deployments of police.Even actions by rank-and-file employees can drag companies into the controversy. Cathay Pacific Airways Ltd. has fired staff and threatened to terminate workers for supporting the demonstrations, let alone participating in them. And French lender BNP Paribas SA publicly apologized for a posting on an employee’s personal social media account, saying it doesn’t tolerate “disrespectful” language.The protests already have weighed on HKEX in other ways. Last month, the exchange dropped a 29.6 billion-pound ($38 billion) unsolicited takeover bid for London Stock Exchange Group Plc after opposition from the U.K. company and a cool reception from Beijing. The proposal failed to win support in China, where the official People’s Daily pointed to “persistent worries” about Hong Kong given the current unrest and instead promoted LSE’s existing tie up with the Shanghai Stock Exchange.(Updates with additional comment from Li and background on LSE bid from fourth paragraph.)To contact the reporter on this story: Kiuyan Wong in Hong Kong at email@example.comTo contact the editors responsible for this story: Candice Zachariahs at firstname.lastname@example.org, ;Jun Luo at email@example.com, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomson Reuters Corp , parent of Reuters News, reported higher-than-expected quarterly operating profit on Thursday and said it would raise its dividend payout ratio and buy back more shares. Chief Executive Jim Smith said the company had spent just over half the $2 billion it had set aside for acquisitions to expand its main divisions and would love to spend the rest. Operating profit rose to $262 million, or 27 cents a share, in the third quarter, from $173 million or 12 cents a share a year ago.
Italy's Treasury needs more information from the London Stock Exchange about the future of MTS, an Italian electronic fixed income trading market majority-owned by the LSE, top official Alessandro Rivera told Reuters on Wednesday. Rivera said MTS, originally launched by the Italian Treasury and the Bank of Italy as a platform for trading Italian government bonds, was strategic for the country. The Treasury's director general added it was monitoring developments in takeover negotiations between LSE Group and data provider Refinitiv.
Hong Kong bourse Chief Executive Charles Li said there are fundamental flaws in the "one country, two systems" formula that governs the former British territory as it grapples with its biggest political crisis in decades. The comments by Li mark a rare public condemnation of the system that governs the Chinese-ruled city from a senior Hong Kong business executive. "The great concept, the great creation of one country, two systems... has some fundamental flaws at the very beginning of the implementation," he said.
Hong Kong bourse Chief Executive Charles Li said there are fundamental flaws in the "one country, two systems" formula that govern the former British territory. The comments by Li mark a rare public condemnation from a senior Hong Kong business executive of the Beijing-backed administration under which the territory is ruled at a time when it is grappling with its biggest political crisis in decades. "The great concept, the great creation of one country, two systems is really, has some fundamental flaws at the very beginning of the implementation," he said.
(Bloomberg) -- Alan Howard, whose hedge fund once managed $40 billion, is betting his time is better spent trading rather than running his firm.Howard, 56, is relinquishing the role of chief executive officer at his Brevan Howard Asset Management, passing that position to chief risk officer Aron Landy, the Jersey-based firm said Tuesday in a U.K. regulatory filing. Howard, who specializes in macro investing, will focus on his trading.The move comes amid years of mediocre returns posted by hedge funds, prompting investors to pull money and demand lower fees. However, some macro hedge funds are rebounding as the U.S.-China trade war and geopolitical risks create a fertile hunting ground for traders like Howard.“There is finally some movement in rates markets and potential for volatility, which is Alan Howard’s forte,” said Saleem Siddiqi, founder of Musst Investments, which provides capital to hedge funds. “If there was any time to get ready, it’s now.”Investors have yanked about $77 billion this year alone from hedge funds worldwide, twice as much as in all of 2018, according to eVestment data. At Brevan Howard, assets have plunged to about $7 billion at the end of September from their peak in 2013.As his firm shrank, Howard worked to overhaul the business by reducing fees and staff and shifting away from focusing mainly on the Brevan Howard Master Fund Ltd. In 2017, Brevan began giving star traders their own funds in a move to bring in assets.Bounce BackHoward’s reboot has started to work. The Master Fund climbed 7.5% this year through September, ahead of the 6.2% return for the Bloomberg Macro Hedge Fund Index.The firm also has attracted its first net inflows in 2019 after almost six years of net withdrawals. The money came in after the main fund returned 12.3% in 2018, its best year since the end of the global financial crisis.Over the past two years, Howard had already turned more of his attention to trading. In 2017, he started his own fund, designed to make big bets in the hopes of achieving bigger profits. The pool has a limited number of investors and manages Howard’s own money, as well as some of Brevan Howard’s main fund. It made 30% last year.Brevan Howard shuttered more than half a dozen hedge funds in the three years through 2015 to focus on its flagship strategy, which suffered outflows amid mediocre returns. In a change of course for the firm, where a top executive once said that running multiple funds was a distraction, it went on to start money pools for its star traders including Alfredo Saitta, Minal Bathwal and Fash Golchin.All those funds have made money this year, helping Brevan Howard to stabilize its asset base.Trading FocusHoward is not alone in turning his attention entirely to trading.Billionaire hedge fund peer Michael Hintze made a similar move this year, bringing in financial industry veteran Xavier Rolet, the former CEO of the London Stock Exchange Group Plc, to succeed him as chief executive at CQS.Andrew Law of Caxton Associates planned to start a fund last year that will make riskier bets than he did before, while Paul Tudor Jones said in 2017 that he would manage most of the money at his Tudor Investment Corp.Brevan Howard’s new CEO Landy had been the firm’s chief risk officer since July 2003. Before that, he managed a fund at Millennium Global Investments.(Updates with comment in 4th paragraph)To contact the reporters on this story: Nishant Kumar in London at firstname.lastname@example.org;Katherine Burton in New York at email@example.comTo contact the editors responsible for this story: Alan Mirabella at firstname.lastname@example.org, Chris Bourke, Shelley RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
There is some evidence that buying progressive dividend payers with solid balance sheets is a strategy well-rewarded by the market. After all, who doesn’t like8230;
Italy's parliament on Thursday gave its initial approval to a decree granting the government powers to protect 5G telecoms networks and Milan's Borsa Italiana stock exchange from foreign takeovers. Non-European Union players will be required to notify Rome of any takeover intentions or plans to acquire controlling stakes in key financial infrastructures. Regarding fifth-generation (5G) telecoms, the measures aim to give the government protective powers over 5G supply deals between domestic firms and non-EU providers such as China's Huawei and ZTE Corporation.
Oscar-winning special effects firm DNEG said on Tuesday it plans to list on the London Stock Exchange in November, raising 150 million pounds through the issue of new shares, to accelerate growth. The company, which produces digital visual effects and has worked on the Harry Potter films and the Avenger series, is looking to sell at least 25% of new and existing shares. The listing is also aimed to increase the public profile of the company, provide access to a wider range of capital-raising options and improve its ability to recruit, DNEG said in a statement.
Thomson Reuters Corp has begun searching for a successor to Chief Executive Officer Jim Smith, who oversaw the sale of a majority stake in the news and information provider's financial-data business to a Blackstone Group Inc-led consortium last year, the Financial Times reported on Sunday. Thomson Reuters enlisted search firm Spencer Stuart to draw up a list of candidates to replace Smith, the newspaper reported, citing four people with knowledge of the succession process. The reported move follows Blackstone's agreement earlier this year to sell the financial-data business, now called Refinitiv, to London Stock Exchange Group for $27 billion.