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Last Trade - 07/05/21

Basic Materials
Large Cap
Market Cap £25.39bn
Enterprise Value £31.03bn
Revenue £39.09bn
Position in Universe 11th / 727

European shares hit reverse as Schaeffler slump drags down autos

Tue 27th June, 2017 9:59am
* STOXX 600 down 0.8 pct 
    * Schaeffler drags autos after cutting profit guidance 
    * Stada drops after takeover offer falls apart 
    * Bankia to buy BMN, shares top gainers 
 (Adds quotes and detail, updates prices) 
    By Kit Rees 
    LONDON, June 27 (Reuters) - European shares fell on Tuesday 
as a drop in auto stocks after Germany's Schaeffler cut its 
profit outlook and disappointment over a failed buyout of Stada 
offset gains among basic resources firms and Spain's Bankia.     
    The pan-European STOXX 600  .STOXX  index was down 0.8 
percent, as were blue chips  .STOXX50E , while Germany's DAX 
 .GDAXI  was 0.8 percent weaker.  
    Autos  .SXAP  were the biggest pain point in Europe, falling 
1.7 percent after German auto parts supplier Schaeffler 
 SHA_p.DE  slashed its profit guidance on growing price 
pressures and high costs.*:nL8N1JO0FR 
    Schaeffler's shares tumbled nearly 12 percent, while shares 
in peer Continental  CONG.DE  dropped 3.4 percent. 
    "Schaeffler flagging increased pricing pressure will almost 
definitely raise concerns across the supplier space," analysts 
at Jefferies said. 
    "Schaeffler's profit warning will reignite the debate on the 
resilience on supplier margins and organic growth (post pricing) 
as we approach the 'peak' of the cycle," Jefferies analysts 
    German drugmaker Stada  STAGn.DE  was another notable 
faller, dropping 5 percent after private equity groups Bain 
Capital and Cinven failed to win the required shareholder 
acceptances to take over the firm. Stada's shares have rallied 
nearly 26 percent this year, boosted by buyout talks.*:nL8N1JN4EG 
    Spanish banks were a bright spot as investors cheered 
Bankia's  BKIA.MC  move to buy smaller peer BMN in a deal worth 
around $924 million, a further step in cleaning up Spain's 
beleaguered banking sector.  
    Bankia's shares rose more than 3 percent. They helped 
support Europe's banking index  .SX7P  which was flat after 
gains on Monday sparked by a taxpayer-funded rescue of two 
struggling Italian regional banks, which prompted a rally in 
Italian banking stocks.*:nL8N1JN1KF 
    "Spain is still seen as the weak one in Europe, so if this 
takes it a step away from further weakness then that's certainly 
a positive," Mike van Dulken, head of research at Accendo 
Markets, said.   
    "It's probably a positive in the sense that it's 
consolidation, cleaning it up, simplifying it, but it relies on 
how futures moves are made."  
    Gains among mining firms Anglo American  AAL.L , 
ArcelorMittal  MT.AS  and Rio Tinto  RIO.L  helped prop up the 
basic resources sector  .SXPP , which gained 1.1 percent, the 
only sector to make any headway. Britain's commodities-heavy 
FTSE 100 <.FTSE. index was down 0.4 percent. 
 (Reporting by Kit Rees, Editing by Vikram Subhedar and Susan 
 ((; +44 207 542 2784;)) 
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