Here’s What to Watch in European Stocks This Morning
(Bloomberg) -- Good morning. Here’s what to watch ahead of the market open in Europe, including earnings from UBS, EasyJet and Dixons Carphone, as well as the latest Tweet from U.S. President Trump concerning China.
UBS Group AG kicked off fourth quarter earnings season for the large-cap European banks. The Swiss giant reported wealth management profit of $912 million, compared with estimates of $943 million, while the investment-bank division also disappointed. With other banking blue-chips reports only coming out at the end of the month, UBS’s numbers could be a marker for the sector.
Low cost airline EasyJet Plc reports first-quarter sales numbers just days after rival Ryanair Holdings Plc issued a profit warning blamed on an industrywide slump in ticket prices. Morgan Stanley downgraded EasyJet’s shares on Monday, alongside Ryanair and Wizz Air Holdings Plc, ``preferring to await clearer outcomes on Brexit developments summer capacity evolution.’’
U.S. President Donald Trump tweeted that China’s slowing economic growth proves that it needs to forge a “real deal” on trade. But reports still suggest little progress is being made on some key issues preventing an agreement being reached. ``Stop playing around!’’ Trump added. Asian equities slipped on Tuesday.
Dixons Carphone Plc updates on trading just weeks after a cut to its dividend sent the U.K. home-electronics retailer’s shares tumbling, and just a day after a Sky News report that activist investor Elliott Advisors is considering buying a stake in the company. Also on the U.K. retail earnings slate is flooring material firm Carpetright Plc – the worst performing member of the FTSE All Share Index in 2018.
Private equity firm Apollo Global Management could finally announce a deal today to buy U.K. packaging firm RPC Group Plc for more than $3.8 billion, the WSJ reported, citing unidentified people with knowledge of the matter. The company specializes in containers for food and cosmetics, and has about 25,000 employees in more than 30 countries.
©2019 Bloomberg L.P.