Here’s What to Watch in European Stocks This Morning
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 another gain for sterling, Intel’s disappointing numbers and comments from the world’s largest coffee shop chain.
Sunrise
The pound extended this week’s gain against the dollar to as much as 2 percent after The Sun newspaper reported that Northern Ireland’s Democratic Unionist Party has privately decided to back Theresa May’s Brexit deal next week. The next date for your Brexit diary is Tuesday, when U.K. lawmakers will vote on what they think the government should do next.
Shake it Off
It’s those dreaded chipmakers again. Intel Corp. – the biggest non-FAANG stock in the Nasdaq benchmark other than Microsoft Corp. – reported revenue and profit projections for the current quarter and year that fell short of analysts’ average estimates, sending its shares down about 7 percent in New York after-market trading. Some semiconductor peers also slid, but the broader tech sector largely shrugged it off.
Cups of Joe
Coca-Cola Co.’s purchase of Whitbread Plc’s Costa unit removed a directly comparable European peer for Starbucks Corp. Having said that, the sprawling U.S. coffee chain’s earnings still offer an insight into consumer spending habits. Starbucks said comparable-store sales in Europe fell 1 percent in the first quarter, while margins were also squeezed. While we’re talking coffee , also look out for full-year revenue numbers from Italian espresso machine maker De'Longhi later.
Call Me Maybe
We’ve done tech, but it’s also a big day for telecoms. The U.K.’s Vodafone Group Plc is expected to report pressures abroad in countries like South Africa and Spain, Bloomberg Intelligence writes, while Stockholm-based Telia Co.’s fourth-quarter profit missed the lowest analyst estimate this morning. And Swedish equipment maker Ericsson reported fourth-quarter sales that topped estimates.
Close Watch
U.S. scrutiny of Deutsche Bank AG is growing. A top member on the House Financial Services Committee sent a letter Thursday to CEO Christian Sewing, seeking documents that outline what internal and independent reviews have revealed about how the bank shields against illicit transactions, Bloomberg reports.
To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net
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