Live Markets: Opening snapshot: A bad day for Edenred's cyber attack
22/11/2019 08:39
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters
stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your
thoughts on market moves: julien.ponthus.thomsonreuters.com@reuters.net
OPENING SNAPHOT: A BAD DAY FOR EDENRED'S CYBER ATTACK (0833 GMT)
In terms of timings, Edenred's announcement of a cyber attack comes during a very slow news
day, which means that the French specialist of prepaid corporate service vouchers has got all
the attention (and probably more) it could possibly hope for.
While two brokers gave pre-market indications of only a 1% loss, Edenred share got in fact a
brutal 7.5% kick in the chin at the open. It seems to be settling for a 4% slap in the face at
the moment.
A few sessions ago, at the peak of the Q3 earnings season, there was a chance that the
malaware infection report would be overlooked and buried under a heavy stream of trading
updates.
Not today! Edenred is well singled out among the top movers in the STOXX 600 as you can see
below:
Regarding the overall markets, European bourses have lifted themselves from three-weeks low
with much more vigour than what futures and spreadbetting indications were indicating.
There just didn't seem to be enough concrete news on the trade war front to set a strong
directional trend but that didn't stop traders switching on the risk-on gear.
As you can see below, all regional benchmarks are comfortably up, same goes for the vast
majority of sectors:
(Julien Ponthus)
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European bourses are expected to open just slightly off 3-weeks lows but without enough news
from the trade war front to impulse any clear directional trend.
There isn't much corporate action left in terms of earnings even if the 33% fall in profit of
the Nationwide Building Society will not go unnoticed. Also Edenred’s admission of a malaware
infection will be closely watched.
A BIT OF M&A TO SPICE THINGS UP (0745 GMT)
As said below, there isn't much corporate action left in terms of earnings but thankfully, a
little spike in M&A activity has emerged to spice things up.
Let's begin a with a Reuters exclusive reporting that Unilever and Henkel were considering
bidding for beauty brands from U.S. cosmetics maker Coty. urn:newsml:reuters.com:*:nL8N281670
Vivendi VIV.PA might be ready to offer an olive branch by selling part of its stake in
Mediaset at a loss in an attempt to reach a deal to end years of bitter legal disputes with the
Italian broadcaster. urn:newsml:reuters.com:*:nL8N28167X
After yesterday's fat finger urn:newsml:reuters.com:*:nL8N2812V9 moving its share price, there's a report in the
Spanish press that Euronext has hired SocGen and Lazard for a possible bidding war for the
Madrid bourse.
In Germany a consortium seeking to buy wholesaler Metro's chain has beefed up
its offer for the hypermarkets.
The country biggest residential property firm, Vonovia, has seen its "full and final" offer
for Sweden's Hembla HEMb.ST rejected.
It's the other way around in terms of countries with Sweden's Pandox acquiring Hotel
properties in Germany for 290 millions euros.
On a more administrative touch Roche ROG.S has again extended the deadline for its tender
offer for Spark Therapeutics, the Swiss drugmaker said on Friday, saying U.S. and British
anti-trust authorities needed more time to review the deal.
(Julien Ponthus)
*****
MORNING CALL: OFF LOWS? (0625 GMT)
European stock markets might just rise up from three-week lows at the open after a gentle
recovery lifted Asian shares overnight over hopes (we've been there before though!) China and
the United States will strike a preliminary trade deal.
Financial spreadbetters expect London's FTSE to open 25 points higher, Frankfurt's DAX to up
39 points and Paris' CAC to gain 13 points.
While it's quiet on the corporate earnings front with the season dying out, there's quite
some action on the macro front with PMIs for France, Germany, euro zone and the UK.
"The uncertainty surrounding Brexit has caused an economic malaise in the UK, and investment
has tapered off, so the reports will provide an insight into the health of the British economy",
David Madden, a market analysts at CMC Markets wrote to his clients.
(Julien Ponthus)
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(Reporting by Danilo Masoni, Joice Alves, Julien Ponthus and Thyagaraju Adinarayan)