Here's What to Watch in European Stocks This Morning

(Bloomberg) -- Good morning. Here’s what we are watching ahead of the market open in Europe:

Tech Titans

It was a busy night for the technology sector. In the U.S., computer infrastructure giant Cisco Systems Inc. rose in post-market trading after its quarterly sales eased concern over a potential slowdown in corporate spending. Another heavyweight, company-software maker Cisco Systems Inc., also edged higher as legendary investor Warren Buffett reported a new stake via Berkshire Hathaway Inc. In Asia, mammoth Internet services and entertainment firm Tencent Holdings Ltd. posted a 30 percent jump in quarterly profit. With Nasdaq futures higher this morning, European tech could rise. However, do note that after the close on Wednesday, Switzerland’s AMS AG became at least the fourth key Apple supplier this week to reduce revenue estimates for the current quarter.

May’s Peril

U.K. Prime Minister Theresa May faces a grilling by lawmakers in the House of Commons this morning as she fights for widespread support for the divorce arrangement she reached with the European Union, as well as her premiership. While she just about gained the backing of her Cabinet for the deal on Wednesday, at least two senior ministers are said to be considering whether to quit. The pound was steady against the dollar overnight, after fluctuating as ministers met and as May later gave a speech in front of Downing Street.

Chemical Cracks

An early profit warning came from Germany’s K+S AG this morning as the agricultural-chemical producer cut its full year forecast while saying its third quarter was hit by weather-related output stoppages and a disproportionate increase in transportation costs. The report may come as a surprise to investors after buoyant updates from close peers like the U.S. firm Mosaic Co. in recent weeks. Watch share of rivals like Norway’s Yara International ASA this morning.

Retailers Ruffled

The release of U.K. October retail-sales data this morning will be keenly followed by a sector whose summer trading was spoiled by soaring temperatures, at a time when it was already grappling with the continued shift toward online shopping. Discount chain B&M European Value Retail SA plunged earlier this week after reporting a quarterly sales decline, while sector bellwether Next Plc’s latest numbers also disappointed. On Wednesday, data showed that an anticipated pickup in inflation failed to materialize last month as food, clothing and transport prices declined.

Don’t Mention Bond

Almost every article written about Aston Martin Lagonda Global Holdings Plc since its initial public offering has made reference to the fictional British agent who’s often seen chasing bad guys around in one of the company’s sports cars. But that won’t happen here. Aston Martin issues its first trading update as a public company this morning, with its shares at about 17 percent below the price at which investors bought-in. For what it’s worth, Credit Suisse is advising clients to buy, saying the carmaker’s latest line-up, including its first-ever SUV, could help the 105-year-old company become the world’s fastest-growing automotive brand. The analyst’s name’s Schwarz. Daniel Schwarz.

To contact the reporter on this story: Joe Easton in London at jeaston7@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Tom Lavell

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