April 22, 2016 / 5:26 AM / 2 years ago

European Factors to Watch-Shares seen lower, focus on automakers

(ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets for site in development. See the bottom of the report)

LONDON, April 22 (Reuters) - European shares headed for a weaker open on Friday, mirroring losses on Wall Street and in Asia, with investors keeping a close eye on company earnings after disappointing results from some U.S. firms including Alphabet and Microsoft.

Wall Street suffered its first loss in four sessions on Thursday, with shares in Google parent-company Alphabet , Microsoft, Visa and Starbucks all falling more than 4 percent in extended trading.

Automakers will be in focus after Daimler said it will be conducting an internal investigation into the certification process related to exhaust emissions in the United States and Volkswagen said it has reached a framework agreement with class action plaintiffs in U.S. court proceedings.

Futures for the Euro STOXX 50, Germany’s DAX and Britain’s FTSE were down 0.2 to 0.5 percent. Futures for France’s CAC, however, were flat.

European shares fell slightly in the previous session after the European Central Bank kept rates unchanged, with Swedish telecom equipment maker Ericsson and French drinks firm Pernod leading the fall after disappointing updates.

However, the pan-European FTSEurofirst 300 index remained on track for its second straight week of gains.

In Asia, shares slid from a 5-month high, with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping d 0.8 percent.


Daimler said on Thursday that it will be conducting an internal investigation into the certification process related to exhaust emissions in the United States upon the request of the U.S. Department of Justice.

Separately, Q1 results due. Adjusted earnings before interest and tax (EBIT) is seen falling 11 percent in a Reuters poll of banks and brokerages. Poll:


Volkswagen said it has reached a framework agreement with class action plaintiffs in U.S. court proceedings on Thursday.

Separately, Britain said on Thursday all 37 car models it had tested exceeded the laboratory limits for polluting nitrogen oxides during real-world driving, but only Volkswagen had used so-called defeat devices to cheat tests.


The Swedish truck maker reported a smaller than expected slide in first quarter core earnings on Friday and raised its forecast for the European truck market while predicting deeper downturns in North America and Brazil.


The Swedish steel maker on Friday launched a 5 billion crown ($615 million) rights issue supported by main owners and a debt refinancing package. It posted a dive in first-quarter operating profit before depreciation, amortisation and items affecting comparability.


Spain’s fifth-biggest lender on Friday started to reap the fruits of its acquisition last year of British peer TSB as first-quarter net profit jumped 44 percent from the same period in 2015, widely beating analysts’ forecasts. nE8N14A01X


The Swedish bank said on Friday it had appointed Birgitte Bonnesen as new chief executive. Bonnesen has been acting CEO since former top chief Michael Wolf was fired in February. Authorities this week dropped a preliminary probe of suspected insider trading by Wolf.


The Frendch aircraft seat maker said it was “not for sale” after a report that larger French aerospace group Safran was considering making an offer.


Sales at Puma grew by 8.1 percent in the first quarter, parent Kering said.


The French carmaker was raided by anti-fraud investigators on Thursday as part of ongoing investigations on pollutants in the automobile sector, the French carmaker said in a statement.


The French luxury group’s flagship Gucci brand posted a lower-than-expected rise in first-quarter sales on Thursday amid a difficult environment for the luxury sector.


The carmaker’s revenue rose 11.7 percent in the first three months of the year boosted by demand for new model ranges in Europe.


New York state’s financial regulator has told 13 foreign banks doing business there — among them Credit Suisse — to hand over details about their dealings with a law firm in Panama that helped set up thousands of shell companies.


BHP Billiton does not expect recent rise in iron ore and metallurgical coal prices to hold for more than a few months, as more low cost supply is set to hit the market, its Australian chief said on Thursday.


Royal Dutch Shell is working on selling out of its onshore assets in Gabon, according to two sources familiar with the matter, seeking to refocus its African presence.


The drugmaker, working with genome pioneer Craig Venter, is launching a massive gene hunt in the most comprehensive bet yet by a pharmaceutical firm on the potential of genetic variations to unlock routes to new medicines.


Britain’s healthcare cost watchdog NICE said on Friday it had changed its mind and decided to recommend Sanofi’s prostate cancer drug Jevtana after the French company agreed to a further discount.


FCC agrees with banks to repurchase 400 million euros in high interest debt with a haircut of 15 percent, Cinco Dias reported on Friday.


Amadeus says it has negotiated a 500 million euro revolving loan with several banks for general corporate business.

ADVISORY- Reuters plans to replace intra-day European and UK stock market reports with a Live Markets blog on Eikon (see cpurl://apps.cp./cms/?pageId=livemarkets for site in development). In a real-time, multimedia format from 0600 London time through the 1630 closing bell, it will include the best of our market reporting, Stocks Buzz service, Eikon graphics, Reuters pictures, eye-catching research and market zeitgeist. Breaking news and dramatic market moves will continue to be alerted to all clients and we will continue to provide a short opening story and comprehensive closing reports.

If you have any thoughts, suggestions or feedback on this, please email mike.dolan@thomsonreuters.com.

Mike Dolan, Markets Editor EMEA. (Reporting by Atul Prakash)

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