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 a big chipmaker’s earnings miss, Wetherspoon’s trading update, focus on Deutsche Bank, and the latest Brexit update. 

Boozer

U.K. pub chain JD Wetherspoon Plc reports quarterly numbers this morning, and the report should be ``quite strong like-for-like,’’  Peel Hunt analysts said in a preview video filmed in a pub. Although there’s currently ``a lot of pressure’’ on margins stemming from wage costs, the added. Readers should, as usual, expect much of Spoon’s statement to be filled with Chief Executive Tim Martin’s thoughts on Brexit. 

Chippy

Europe’s largest semiconductor equipment maker, ASML Holding NV,  forecast first-quarter net sales  well below analyst expectations, which could weigh on the chip sector this morning. The update comes amid a slowdown in iPhone sales reported by Apple Inc., as well as disappointing earnings reports from Asian chip peers Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. earlier this month. 

Big Blue

Staying in tech, keep an eye on software and cloud companies after International Business Machines Corp.  beat analysts’ quarterly estimates. The U.S. company’s stock jumped about 7 percent in after-market trading, although a read-across to Europe may be limited, given the results were led by IBM’s business that helps companies and governments manage their technology.

Deutsche Examined

The U.S. Federal Reserve is examining how Deutsche Bank AG handled billions of dollars in suspicious transactions from Danske Bank A/S, people familiar with the matter told Bloomberg. It follows previous reports that Deutsche Bank had been contacted by the U.S. Department of Justice regarding its work with Danske Bank’s business in Estonia.

On The Mic

The World Economic Forum continues in the Swiss Alps, with the chief executives of sportswear designer Adidas AG, Italian utility Enel SpA and banks Intesa Sanpaolo SpA and  ABN AMRO Group NV all due to speak today.

Safety Net

The U.K. is closer to avoiding a “no-deal Brexit,” with the main opposition party now more likely to support a proposal to extend the March 29 exit-day deadline, if Prime Minister Theresa May fails to negotiate a divorce agreement, Labour’s  John McDonnell said. The pound was steady against the dollar overnight.

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