European Factors to Watch- Shares seen flat, DB to lag after cap hike
LONDON, May 19 (Reuters) - European stocks were seen opening flat on Monday, with lender Deutsche Bank set to lag after it launched an 8 billion euro capital hike, while broader sentiment was capped by an uncertain economic picture. At 0628 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were between flat and 0.2 percent lower. News that China is tightening its grip on interbank lending to defuse risks in shadow banks capped investor sentiment in Asia overnight. After disappointing economic data from some key euro zone countries last week, investors were reluctant to push main regional indexes to multi-year highs hit last week in the absence of fresh positive catalysts. Shares in Deutsche Bank were set to open 1.1 percent lower, according to early indications, as the lender unveiled plans to raise 8 billion euros ($11 billion) in new capital, in its third capital increase since 2010. "Plenty for both the bulls and bears in this announcement," a sales trader wrote in a comment to clients. "I think it's worth noting that on a day trade, buyers will look to buy on severe weakness as opposed to sell into strength, but the weight of stock coming to market and dilution worries me that these can trade (lower)." Deutsche's cap hike triggered a price target cut at Citi, which, however, kept its "buy" recommendation on the stock arguing the move will allow Deutsche to close its capital gap versus peers. A few ECB policy makers will speak publicly later in the day, including Governing Council member Jens Weidmann, Executive Board member Yves Mersch. Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0628 GMT LAST PCT CHG NET CHG S&P 500 1,877.86 0.37 % 7.01 NIKKEI 14006.44 -0.64 % -90.15 MSCI ASIA EX-JP 484.86 -0.23 % -1.12 EUR/USD 1.3712 0.15 % 0.0020 USD/JPY 101.31 -0.18 % -0.1800 10-YR US TSY YLD 2.511 -- -0.01 10-YR BUND YLD 1.324 -- -0.01 SPOT GOLD $1,295.80 0.21 % $2.71 US CRUDE $102.31 0.28 % 0.29 > GLOBAL MARKETS-Asian shares soft, China slowdown fears resurface > US STOCKS-Wall St rebounds with small-caps > Nikkei flat as stronger yen caps risk appetite > TREASURIES-Yields rise on strong housing data > Euro off to subdued start, PMIs in focus this week > Gold steadies below $1,300; platinum gains as strikes drag on > Copper hits 11-wk high on tight supply > Brent rises to $110 on Libya violence, fall in output COMPANY NEWS ALSTOM Germany's Siemens is working on a formal asset-swap offer for Alstom's power business that could come as early as this week and see France take a stake in a resulting rail-focused French group, sources close to the talks told Reuters. AIRBUS GROUP China Southern Airlines Co Ltd said on Friday it has ordered 80 aircraft from the European planemaker worth at least $7.3 billion. Meanwhile, the EU is considering raising the pressure on the United States in the world's largest trade dispute by challenging tax breaks that encouraged planemaker Boeing to keep production of its latest jet in Washington state, people familiar with the matter told Reuters. CLUB MEDITERRANEE Gaillon Invest, the investment vehicle behind a takeover bid for the French holiday firm, has taken an emergency legal action against shareholder Benetton after the family stopped backing the deal, a source familiar with the matter said. TOTAL Total shareholders agreed to raise the age limit for the oil group's chairman and chief executive, a move that paves the way for Christophe de Margerie to extend his term at the helm of France's largest listed company. NYRSTAR The world's largest zinc smelter said it had agreed a funding package with the Australian government to upgrade and expand its 125-year-old lead smelter in Port Pirie, Australia. SOCIETE GENERALE Convicted rogue trader Jerome Kerviel was arrested in southern France late on Sunday to serve a three-year jail sentence in a high-profile case he has depicted as one individual's struggle against high finance. ASTRAZENECA The UK-listed drugmaker rejected a final offer from Pfizer, after the U.S. pharmaceutical said on Sunday it had raised its offer for AstraZeneca to 69.3 billion pounds ($116.6 billion), or 55 pounds a share, and would walk away if AstraZeneca did not accept it. GLAXOSMITHKLINE Chinese corruption charges against executives of British drugmaker GlaxoSmithKline Plc could be just the start of the pharmaceutical industry's problems in its biggest emerging drugs market, according to industry sources in China. ROYAL BANK OF SCOTLAND Royal Bank of Scotland said on Sunday it is winding down its interest-rate trading business as capital and operating costs increase. RIO TINTO Global miner Rio Tinto is not actively seeking to divest assets this year but would consider any attractive offers, Chief Executive Sam Walsh said late on Friday. BANKS Revenue at the world's 10 largest investment banks fell nine percent to $42.8 billion in the first quarter, new data showed on Monday, as tough new rules forcing banks to hold more capital led to a retreat from riskier types of trading. DEUTSCHE BANK The lender launched plans to raise 8 billion euros ($10.96 billion) in new capital on Sunday with the Qatari royal family a major new investor, in a bid by Germany's largest bank to end questions about its capital strength. Related news ADIDAS The sportswear giant's long-serving chief executive said preparing the company for a change at the top when his contract expires in 2017 will be among the CEO's biggest priorities, Sueddeutsche Zeitung reported on Saturday, citing an interview. Related news BMW The luxury carmaker plans to announce in July that it will build its first assembly plant in Mexico and has earmarked two regions where the site could be built, Automobilwoche reported on Sunday, without citing the source of the information. Related news DEUTSCHE POST Germany's cartel office has "clear evidence" that the mail company's dumping prices made it difficult for rivals to compete, Frankfurter Allgemeine Zeitung reported on Sunday, citing the head of the cartel office. Related news LINDE The industrial gases maker is open to smaller acquisitions, Boersen-Zeitung reported on Saturday, citing an interview with finance chief Georg Denoke. Related news SAP The software company will continue its cloud-oriented strategy and is open to acquisitions, Euro am Sonntag reported, citing SAP's designated finance chief. The company may focus on closing smaller facilities as it plans to cut between 1,500 and 2,500 jobs, Wirtschaftswoche reported on Saturday without providing detail, citing people familiar with the situation. Related news (Reporting By Francesco Canepa; Editing by Alistair Smout)
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