Live Markets: On our radar: SAP needs a vaccine too
26/10/2020 07:38
* European shares seen down sharply
* SAP dumps targets, shares tank premarket
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ON OUR RADAR: SAP NEEDS A VACCINE TOO (0727 GMT)
Downbeat virus developments and no progress in U.S. stimulus talks are surely a downer this
morning but corporate newsflow isn't helping either.
Shares in German software maker SAP SAPG.DE are down 13% in premarket trade after Europe's
largest IT group by market capitalisation cut its guidance for the year and abandoned its
forecast that profitability would expand steadily over the medium term, saying coronavirus
lockdowns would hit demand well into 2021. urn:newsml:reuters.com:*:nL1N2HG0NV
There's virus pain also for French car rental company Europcar EUCAR.PA , which dropped its
2020 financial outlook as it posted a slump in its Q3 results, hit by the impact of the COVID-19
crisis. urn:newsml:reuters.com:*:nL8N2HH0UD
Meantime, Lufthansa LHAG.DE shares are down 2.3% in premarket after the German airline
said it would ground more planes during winter. urn:newsml:reuters.com:*:nL8N2HG0NS
In dealmaking news, U.S. buyout group Carlyle Group CG.O is nearing an agreement to
acquire Siemens SIEGn.DE mechanical drive arm Flender, for about for about 2 billion euros,
Bloomberg News reported citing sources. urn:newsml:reuters.com:*:nL4N2HG0BB
Frozen bread maker Aryzta ARYN.S said on Saturday it had concluded discussions with
Elliott Advisors without a binding takeover offer and that it would now look at other options.
urn:newsml:reuters.com:*:nASN000GG8
Eyes also on UK banks after the Times newspaper reported that local regulators are
considering plans to allow lenders to start paying dividends again next year. urn:newsml:reuters.com:*:nL1N2HG0WI
On the Covid treatment front however there's some good looking newsflow. The FT reported
that early results from tests for the vaccine being developed by the University of Oxford and
AstraZeneca AZN.L , show it produces a robust immune response in elderly people. urn:newsml:reuters.com:*:nL4N2HH1EO
(Danilo Masoni)
*****
MORNING CALL: COVID RISK-OFF (0637 GMT)
European shares were set to start the week in a clear risk-off mood as Covid infections are
surging rapidly across the region, prompting new social restrictions that could hurt the
economic recovery.
Over the weekend Spain imposed local nighttime curfews and banning travel between regions in
some cases, while Italy ordered bars and restaurants to close early and shut public gyms,
cinemas and swimming pools. urn:newsml:reuters.com:*:nL1N2HG0CO urn:newsml:reuters.com:*:nL1N2HG0E8
France registered a record 52,010 new confirmed coronavirus infections over the past 24
hours. urn:newsml:reuters.com:*:nL1N2HG0O3
Meantime in the United States, which saw its highest ever number of new COVID-19 cases in
the past two days urn:newsml:reuters.com:*:nL1N2HG0I7, there was no clear progress on a stimulus package.
Euro STOXX 50 futures were last down 1%, DAX futures down 1.3% and FTSE futures down 0.6%.
(Danilo Masoni)
*****