Infineon Technologies AG logo

IFX - Infineon Technologies AG News Story

€29.89 -0.6  -1.9%

Last Trade - 9:45am

Sector
Technology
Size
Large Cap
Market Cap £34.05bn
Enterprise Value £37.25bn
Revenue £8.58bn
Position in Universe 36th / 1053

LIVE MARKETS-What's on the radar: chips, airlines, casino stocks

Mon 3rd June, 2019 7:47am
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:
thyagaraju.adinarayan.thomsonreuters.com@reuters.net
    
    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.  urn:newsml:reuters.com:*: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  urn:newsml:reuters.com:*:nL4N23A1JZ
    Dignity says welcomes proposals to regulate UK funeral plans  urn:newsml:reuters.com:*:nFWN23A02S
    Danske Bank to sell Estonian private loans unit to LHV in $458 mln deal  urn:newsml:reuters.com:*: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.  urn:newsml:reuters.com:*: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  urn:newsml:reuters.com:*:nASP0012DX
    Sephora to shut U.S. stores for day of diversity training after racial incident  urn:newsml:reuters.com:*:nL2N23A00P
    EXCLUSIVE-FCA discusses improved Renault merger bid to win French backing  urn:newsml:reuters.com:*:nL8N2390PJ
    Aluflexpack aims to raise 140 million euros in latest Swiss IPO  urn:newsml:reuters.com:*:nFWN239074
    Sunrise takeover of Liberty Global unit under review by competition authorities  urn:newsml:reuters.com:*:nFWN2370WX
    Global airlines slash profit forecast on protectionism fears  urn:newsml:reuters.com:*: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)
    *****

 (Reporting by Danilo Masoni, Helen Reid, Josephine Mason and Thyagaraju Adinarayan)
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.