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IFX - Infineon Technologies AG News Story

€31.41 0.1  0.2%

Last Trade - 4:35pm

Large Cap
Market Cap £35.07bn
Enterprise Value £38.27bn
Revenue £8.59bn
Position in Universe 37th / 1054

LIVE MARKETS-Opening snapshot: Infineon slides, oil stocks skid

Mon 3rd June, 2019 8:26am
* European shares slide 0.8% * Infineon slumps 5% after announcing Cypress deal * Chipmakers down 2-3% * Oil & gas stocks slide June 3 - Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: OPENING SNAPSHOT: INFINEON SLIDES, OIL STOCKS SKID (0726 GMT) European shares are sliding 0.6% as lingering trade war worries keep investors away from risky assets. Goldman Sachs economists say they now see a 60% chance that the U.S. will slap tariffs on the final $300 billion of Chinese imports.*:nL8N23A0XK Infineon is down 5%, the top faller on the pan-European STOXX 600 index after it agreed to buy Cypress Semiconductor for $10 billion. Chipmakers in the region are falling 2-3%, despite expectations from traders that M&A in the sector could be positive for these stocks. Clearly escalating rhetoric in a global trade war is trumping that - so to speak. Wirecard is a rare riser after its CEO tweeted that the company is steering towards an "outstanding" first-half of 2019. Oil & gas stocks are the worst-performing in Europe as Brent crude falls 1.1% amid stalling demand and as trade wars fan fears of a global economic slowdown. Confirming a risk-off trade, the defensive food & beverage, utilities and telecoms sectors are down 0.1-0.4%, outperforming the market. (Thyagaraju Adinarayan) ***** WHAT'S ON THE RADAR: CHIPS, AIRLINES, CASINO STOCKS (0647 GMT) After the worst monthly performance since January 2016, European stocks are set to start June on the back foot again. Futures point to another weak open with the trade-sensitive German blue-chip index seen 0.6% lower. In corporate news, chip sector M&A is making big headlines after Germany's Infineon agreed to buy Cypress Semiconductor, which makes microchips used in cars and electronic devices, for $10 billion. Infineon shares were last trading down 5.2% in pre-market but traders expect its regional rivals AMS AMS.VI , Dialog Semi DLGS.DE and BE Semiconductor BESI.AS to rise on the M&A news. William Hill WMH.L shares are seen 3% higher by one trader on reports in the Sunday Times and the Telegraph that it had held merger talks with Las Vegas casino giant Caesars Entertainment last year. Traders expect shares of European airlines to come under pressure after IATA slashed profit forecasts due to the ongoing trade war.*:nL8N23900D In the UK, construction company Kier is seen dropping 10-20% after a profit warning. A few other headlines to watch out for: Kier sees 2019 operating profit lower than expected*:nL4N23A1JZ Dignity says welcomes proposals to regulate UK funeral plans*:nFWN23A02S Danske Bank to sell Estonian private loans unit to LHV in $458 mln deal*:nL8N23A0KZ (Thyagaraju Adinarayan) ***** NO SIGNS OF RESPITE (0554 GMT) European shares are expected to be under pressure again today and there are no signs of a respite as June begins. "Risk assets are likely to remain highly sensitive to rhetoric around trade, until there are signs of a more constructive approach by both China and the US," Peel Hunt's Ian Williams says. The ongoing trade war is certainly hurting global airlines and IATA says the industry's profits are expected to come down by more than a fifth.*:nL8N23900D In corporate news, M&A is making big headlines today: German chipmaker Infineon to buy Cypress Semiconductors in 9 billion euros deal. One trader however says he struggles to see the deal getting approval, pointing to Infineon's attempt to buy Wolfspeed from Cree, which was blocked by CFIUS. Fiat Chrysler FCHA.MI is discussing a Renault RENA.PA special dividend and stronger job guarantees in a bid to persuade the French government to back its proposed merger between the carmakers, sources close to the discussions said. Major corporate headlines: Infineon to buy Cypress Semiconductors in 9 billion euros deal*:nASP0012DX Sephora to shut U.S. stores for day of diversity training after racial incident*:nL2N23A00P EXCLUSIVE-FCA discusses improved Renault merger bid to win French backing*:nL8N2390PJ Aluflexpack aims to raise 140 million euros in latest Swiss IPO*:nFWN239074 Sunrise takeover of Liberty Global unit under review by competition authorities*:nFWN2370WX Global airlines slash profit forecast on protectionism fears*:nL8N23900D (Thyagaraju Adinarayan) ***** EUROPE ON THE BACKFOOT AGAIN (0517 GMT) European stocks are expected to open lower again this morning on worries of a prolonged China-U.S. trade war and Washington's new tariff threats against Mexico. The pan-European STOXX 600 index dropped 5.7% in May, its worst monthly performance since January 2016. "For most of this year the assumption had been that, for all the sound and fury around the imposition of tariffs, they wouldn’t last that long and any damage could be easily mitigated. Now it seems that tariffs are likely to last a lot longer and be more wide ranging than originally thought," Michael Hewson at CMC Markets UK says. Financial spreadbetters IG expect London's FTSE to open 31 points lower at 7,131, Frankfurt's DAX to open 69 points lower at 11,658, and Paris' CAC to open 37 points lower at 5,171. In corporate news, German chipmaker Infineon Technologies IFXGn.DE agreed to buy U.S.-based Cypress Semiconductor CY.O for $23.85 per share in cash (enterprise value of 9 billion euros). (Thyagaraju Adinarayan) ***** <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ opening ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)
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