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LIVE MARKETS-A Q4 earnings surprise: Europe leapfrogs the U.S.

Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net A Q4 EARNINGS SURPRISE: EUROPE LEAPFROGS THE U.S. (1048 GMT) European equities may be dipping today but earnings forecasts have seen another big upwards revision, bringing the fourth-quarter growth rate expected for the STOXX 600 to 16.9 percent, leapfrogging the 15 percent rise seen for the S&P 500. The forecasts from Thomson Reuters analyst David Aurelio are likely to keep investors upbeat about prospects for European equity markets, as they attempt to stabilise following a turbulent start of the month on jitters over volatility and rising global rates. And there is more: the number of European companies beating earnings expectations has also risen to 53.4 percent, remaining above the 50 percent "beat" of a typical quarter, but still lagging the 76 percent beat scored by the S&P 500. In this second snapshot you can see how Europe's tech sector has delivered an impressive 84 percent earnings beat rate, followed by the 70 percent beat for the energy sector. The laggards are telecoms and utilities with just 25 percent. (Danilo Masoni) ***** OPENING SNAPSHOT: EUROPE DIPS (0841 GMT) As indicated by stocks futures, European shares have opened lower, with falls among more defensive-type stocks, and rising U.S. bond yields are weighing on sentiment. A well-received earnings update for Lloyds -- which included a share buyback of up to 1 billion pounds -- is helping to prop up banking stocks. Telecoms are the one sector seeing meaningful gains after Telefonica Deutschland and Orange revealed some much needed good news on top-line growth. Shares in AA have plunged more than 28 percent after the company cut its dividend and said that it expected lower profit in 2019. "While the dividend cut to 2p frees up some cash, risk reward is too negatively skewed on 'show me later' profits," Jefferies analysts said about AA's strategy update. We've got the flash PMI for the Euro zone coming up at 0900 GMT so we'll be watching that along with UK employment data due 0930 GMT. Here's your market snapshot: (Kit Rees) ***** WHAT WE'RE WATCHING AHEAD OF THE OPEN (0752 GMT) European shares are set for a slight pullback this morning with stocks futures trading around 0.2 percent lower, though judging by this week’s trading so far, we could well see a push higher later in the session. Earnings dominate the agenda again. While figures from bank Lloyds missed estimates, investors could cheer its 1 billion-pound share buyback, with the shares seen rising as much as 3 percent. Better times for Orange, which reported its first sales growth in France since 2009, could buoy the telecom sector. AA shares are expected to tumble after the roadside recovery firm said it planned to pay lower dividends. (Kit Rees) ***** EUROPEAN HEADLINES: MORNING ROUND-UP (0738 GMT) Lloyds bank profit rises to record $7.4 billion, but misses estimates Orange's annual sales in France grow for first time since 2009 Glencore says full-year results 'best ever' Temenos agrees 1.4 bln pounds deal to buy British software house Fidessa France's Atos reports organic growth in-line with expectations Maersk Energy sees uptick in offshore oil drilling, profit still squeezed OMV's operating profit benefits from higher crude prices Telefonica Deutschland sees steady 2018, plans dividend increases Volkswagen, German union IG Metall reach wage agreement AA to pay lower dividends AccorHotels' increase in 2017 profits beats expectations Deutsche Boerse posts rise in net profit despite weak markets Eramet eyes expansion in electric vehicle metals UK's Metro Bank reports first annual profit MTU Aero eyes further profit rise in 2018, subject to A320neo FirstGroup sees earnings "slightly" lower hit by weather, competition BRIEF-Wolters Kluwer FY adjusted net profit beats Reuters poll BRIEF-UK builder Barratt's half-year pre-tax profit rises 6.8 percent BRIEF-Hotel Chocolat first half revenue and profit up 15 pct​ (Tom Pfeiffer) ***** EUROPEAN STOCKS FUTURES OPEN LOWER (0711 GMT) European share futures have opened slightly lower, pointing to a weaker session in which metals and energy stocks are set to weigh. We could see a repeat of yesterday, when European stocks gradually warmed up from a weak start to end the session higher. Here's your futures snapshot: (Kit Rees) ***** EUROPEAN EARNINGS: LLOYDS, GLENCORE, UK HOUSEBUILDERS IN FOCUS (0643 GMT) As we said earlier, it's going to be another busy day of earnings, especially for UK banks with Lloyds set to give a full-year update. A report from Sky News late yesterday said that Lloyds will unveil a 1 billion pound ($1.40 billion) share buyback plan with its annual results, but Lloyds has declined to comment on the report. We've also got miner Glencore reporting full-year figures, and a couple of UK housebuilders giving updates. More broadly, European fourth-quarter earnings are expected to have increased by 14.6 percent from the same period in 2016, or 11.6 percent excluding the energy sector, according to data from Thomson Reuters I/B/E/S. Here's a summary of European firms set to report this morning: IBE.MC Full Year 2017 Iberdrola SA Earnings and Outlook Update Release O2Dn.DE Q4 2017 Telefonica Deutschland Holding AG Earnings Release ORAN.PA Q4 2017 Orange SA Earnings Release GETP.PA Full Year 2017 Getlink Earnings Release FGP.L Q3 2018 FirstGroup PLC Trading Statement Release UTG.L Full Year 2017 Unite Group PLC Earnings Release BDEV.L Half Year 2018 Barratt Developments PLC Earnings Release CAPCC.L Full Year 2017 Capital & Counties Properties PLC Earnings Release OMVV.VI Q4 2017 OMV AG Earnings Release ACCP.PA Full Year 2017 Accor SA Earnings Release ATOS.PA Full Year 2017 Atos SE Earnings Release SATG.DE Q4 2017 Sartorius AG Earnings Release STDM.PA Q4 2017 Sartorius AG Earnings Release AGES.BR Q4 2017 Ageas SA Earnings Release TOM.OL Q4 2017 Tomra Systems ASA Earnings Release REZT.ST Q4 2017 Rezidor Hotel Group AB Earnings Release WLSNc.AS Full Year 2017 Wolters Kluwer NV Earnings Release LLOY.L Full Year 2017 Lloyds Banking Group PLC Earnings Release GL9.I Full Year 2017 Glanbia PLC Earnings Release MTXGn.DE Q4 2017 MTU Aero Engines AG Earnings Release HOCM.L Full Year 2017 Hochschild Mining PLC Earnings Release GLEN.L Full Year 2017 Glencore PLC Earnings Release HOTG.DE Full Year 2017 Hochtief AG Earnings Release VLLP.PA Full Year 2017 Vallourec SA Earnings Release TCH.PA Full Year 2017 Technicolor SA Earnings Release (Kit Rees) ***** MORNING CALL: EUROPEAN SHARES SET TO SLIP (0622 GMT) Good morning and welcome to Live Markets. European shares are seen edging lower this morning, according to financial spreadbetters, on another busy day of earnings. Spreadbetters expect Germany's DAX to open 40 points lower, France's CAC 20 points lower and Britain's FTSE 100 5 points lower. This follows a muted session on Wall Street, though Asian shares gained. Aside from earnings, focus today will be on flash PMI releases for the Euro zone to see whether the economic momentum can be sustained in the region. (Kit Rees) (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)

LIVE MARKETS-Opening snapshot: Europe dips

Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net OPENING SNAPSHOT: EUROPE DIPS (0841 GMT) As indicated by stocks futures, European shares have opened lower, with falls among more defensive-type stocks, and rising U.S. bond yields are weighing on sentiment. A well-received earnings update for Lloyds -- which included a share buyback of up to 1 billion pounds -- is helping to prop up banking stocks. Telecoms are the one sector seeing meaningful gains after Telefonica Deutschland and Orange revealed some much needed good news on top-line growth. Shares in AA have plunged more than 28 percent after the company cut its dividend and said that it expected lower profit in 2019. "While the dividend cut to 2p frees up some cash, risk reward is too negatively skewed on 'show me later' profits," Jefferies analysts said about AA's strategy update. We've got the flash PMI for the Euro zone coming up at 0900 GMT so we'll be watching that along with UK employment data due 0930 GMT. Here's your market snapshot: (Kit Rees) ***** WHAT WE'RE WATCHING AHEAD OF THE OPEN (0752 GMT) European shares are set for a slight pullback this morning with stocks futures trading around 0.2 percent lower, though judging by this week’s trading so far, we could well see a push higher later in the session. Earnings dominate the agenda again. While figures from bank Lloyds missed estimates, investors could cheer its 1 billion-pound share buyback, with the shares seen rising as much as 3 percent. Better times for Orange, which reported its first sales growth in France since 2009, could buoy the telecom sector. AA shares are expected to tumble after the roadside recovery firm said it planned to pay lower dividends. (Kit Rees) ***** EUROPEAN HEADLINES: MORNING ROUND-UP (0738 GMT) Lloyds bank profit rises to record $7.4 billion, but misses estimates Orange's annual sales in France grow for first time since 2009 Glencore says full-year results 'best ever' Temenos agrees 1.4 bln pounds deal to buy British software house Fidessa France's Atos reports organic growth in-line with expectations Maersk Energy sees uptick in offshore oil drilling, profit still squeezed OMV's operating profit benefits from higher crude prices Telefonica Deutschland sees steady 2018, plans dividend increases Volkswagen, German union IG Metall reach wage agreement AA to pay lower dividends AccorHotels' increase in 2017 profits beats expectations Deutsche Boerse posts rise in net profit despite weak markets Eramet eyes expansion in electric vehicle metals UK's Metro Bank reports first annual profit MTU Aero eyes further profit rise in 2018, subject to A320neo FirstGroup sees earnings "slightly" lower hit by weather, competition BRIEF-Wolters Kluwer FY adjusted net profit beats Reuters poll BRIEF-UK builder Barratt's half-year pre-tax profit rises 6.8 percent BRIEF-Hotel Chocolat first half revenue and profit up 15 pct​ (Tom Pfeiffer) ***** EUROPEAN STOCKS FUTURES OPEN LOWER (0711 GMT) European share futures have opened slightly lower, pointing to a weaker session in which metals and energy stocks are set to weigh. We could see a repeat of yesterday, when European stocks gradually warmed up from a weak start to end the session higher. Here's your futures snapshot: (Kit Rees) ***** EUROPEAN EARNINGS: LLOYDS, GLENCORE, UK HOUSEBUILDERS IN FOCUS (0643 GMT) As we said earlier, it's going to be another busy day of earnings, especially for UK banks with Lloyds set to give a full-year update. A report from Sky News late yesterday said that Lloyds will unveil a 1 billion pound ($1.40 billion) share buyback plan with its annual results, but Lloyds has declined to comment on the report. We've also got miner Glencore reporting full-year figures, and a couple of UK housebuilders giving updates. More broadly, European fourth-quarter earnings are expected to have increased by 14.6 percent from the same period in 2016, or 11.6 percent excluding the energy sector, according to data from Thomson Reuters I/B/E/S. Here's a summary of European firms set to report this morning: IBE.MC Full Year 2017 Iberdrola SA Earnings and Outlook Update Release O2Dn.DE Q4 2017 Telefonica Deutschland Holding AG Earnings Release ORAN.PA Q4 2017 Orange SA Earnings Release GETP.PA Full Year 2017 Getlink Earnings Release FGP.L Q3 2018 FirstGroup PLC Trading Statement Release UTG.L Full Year 2017 Unite Group PLC Earnings Release BDEV.L Half Year 2018 Barratt Developments PLC Earnings Release CAPCC.L Full Year 2017 Capital & Counties Properties PLC Earnings Release OMVV.VI Q4 2017 OMV AG Earnings Release ACCP.PA Full Year 2017 Accor SA Earnings Release ATOS.PA Full Year 2017 Atos SE Earnings Release SATG.DE Q4 2017 Sartorius AG Earnings Release STDM.PA Q4 2017 Sartorius AG Earnings Release AGES.BR Q4 2017 Ageas SA Earnings Release TOM.OL Q4 2017 Tomra Systems ASA Earnings Release REZT.ST Q4 2017 Rezidor Hotel Group AB Earnings Release WLSNc.AS Full Year 2017 Wolters Kluwer NV Earnings Release LLOY.L Full Year 2017 Lloyds Banking Group PLC Earnings Release GL9.I Full Year 2017 Glanbia PLC Earnings Release MTXGn.DE Q4 2017 MTU Aero Engines AG Earnings Release HOCM.L Full Year 2017 Hochschild Mining PLC Earnings Release GLEN.L Full Year 2017 Glencore PLC Earnings Release HOTG.DE Full Year 2017 Hochtief AG Earnings Release VLLP.PA Full Year 2017 Vallourec SA Earnings Release TCH.PA Full Year 2017 Technicolor SA Earnings Release (Kit Rees) ***** MORNING CALL: EUROPEAN SHARES SET TO SLIP (0622 GMT) Good morning and welcome to Live Markets. European shares are seen edging lower this morning, according to financial spreadbetters, on another busy day of earnings. Spreadbetters expect Germany's DAX to open 40 points lower, France's CAC 20 points lower and Britain's FTSE 100 5 points lower. This follows a muted session on Wall Street, though Asian shares gained. Aside from earnings, focus today will be on flash PMI releases for the Euro zone to see whether the economic momentum can be sustained in the region. (Kit Rees) (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)

LIVE MARKETS-European headlines: morning round-up

Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net EUROPEAN HEADLINES: MORNING ROUND-UP (0738 GMT) Lloyds bank profit rises to record $7.4 billion, but misses estimates Orange's annual sales in France grow for first time since 2009 Glencore says full-year results 'best ever' Temenos agrees 1.4 bln pounds deal to buy British software house Fidessa France's Atos reports organic growth in-line with expectations Maersk Energy sees uptick in offshore oil drilling, profit still squeezed OMV's operating profit benefits from higher crude prices Telefonica Deutschland sees steady 2018, plans dividend increases Volkswagen, German union IG Metall reach wage agreement AA to pay lower dividends AccorHotels' increase in 2017 profits beats expectations Deutsche Boerse posts rise in net profit despite weak markets Eramet eyes expansion in electric vehicle metals UK's Metro Bank reports first annual profit MTU Aero eyes further profit rise in 2018, subject to A320neo FirstGroup sees earnings "slightly" lower hit by weather, competition BRIEF-Wolters Kluwer FY adjusted net profit beats Reuters poll BRIEF-UK builder Barratt's half-year pre-tax profit rises 6.8 percent BRIEF-Hotel Chocolat first half revenue and profit up 15 pct​ (Tom Pfeiffer) ***** EUROPEAN STOCKS FUTURES OPEN LOWER (0711 GMT) European share futures have opened slightly lower, pointing to a weaker session in which metals and energy stocks are set to weigh. We could see a repeat of yesterday, when European stocks gradually warmed up from a weak start to end the session higher. Here's your futures snapshot: (Kit Rees) ***** EUROPEAN EARNINGS: LLOYDS, GLENCORE, UK HOUSEBUILDERS IN FOCUS (0643 GMT) As we said earlier, it's going to be another busy day of earnings, especially for UK banks with Lloyds set to give a full-year update. A report from Sky News late yesterday said that Lloyds will unveil a 1 billion pound ($1.40 billion) share buyback plan with its annual results, but Lloyds has declined to comment on the report. We've also got miner Glencore reporting full-year figures, and a couple of UK housebuilders giving updates. More broadly, European fourth-quarter earnings are expected to have increased by 14.6 percent from the same period in 2016, or 11.6 percent excluding the energy sector, according to data from Thomson Reuters I/B/E/S. Here's a summary of European firms set to report this morning: IBE.MC Full Year 2017 Iberdrola SA Earnings and Outlook Update Release O2Dn.DE Q4 2017 Telefonica Deutschland Holding AG Earnings Release ORAN.PA Q4 2017 Orange SA Earnings Release GETP.PA Full Year 2017 Getlink Earnings Release FGP.L Q3 2018 FirstGroup PLC Trading Statement Release UTG.L Full Year 2017 Unite Group PLC Earnings Release BDEV.L Half Year 2018 Barratt Developments PLC Earnings Release CAPCC.L Full Year 2017 Capital & Counties Properties PLC Earnings Release OMVV.VI Q4 2017 OMV AG Earnings Release ACCP.PA Full Year 2017 Accor SA Earnings Release ATOS.PA Full Year 2017 Atos SE Earnings Release SATG.DE Q4 2017 Sartorius AG Earnings Release STDM.PA Q4 2017 Sartorius AG Earnings Release AGES.BR Q4 2017 Ageas SA Earnings Release TOM.OL Q4 2017 Tomra Systems ASA Earnings Release REZT.ST Q4 2017 Rezidor Hotel Group AB Earnings Release WLSNc.AS Full Year 2017 Wolters Kluwer NV Earnings Release LLOY.L Full Year 2017 Lloyds Banking Group PLC Earnings Release GL9.I Full Year 2017 Glanbia PLC Earnings Release MTXGn.DE Q4 2017 MTU Aero Engines AG Earnings Release HOCM.L Full Year 2017 Hochschild Mining PLC Earnings Release GLEN.L Full Year 2017 Glencore PLC Earnings Release HOTG.DE Full Year 2017 Hochtief AG Earnings Release VLLP.PA Full Year 2017 Vallourec SA Earnings Release TCH.PA Full Year 2017 Technicolor SA Earnings Release (Kit Rees) ***** MORNING CALL: EUROPEAN SHARES SET TO SLIP (0622 GMT) Good morning and welcome to Live Markets. European shares are seen edging lower this morning, according to financial spreadbetters, on another busy day of earnings. Spreadbetters expect Germany's DAX to open 40 points lower, France's CAC 20 points lower and Britain's FTSE 100 5 points lower. This follows a muted session on Wall Street, though Asian shares gained. Aside from earnings, focus today will be on flash PMI releases for the Euro zone to see whether the economic momentum can be sustained in the region. (Kit Rees) (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)

LIVE MARKETS-European stocks futures open lower

Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net EUROPEAN STOCKS FUTURES OPEN LOWER (0711 GMT) European share futures have opened slightly lower, pointing to a weaker session in which metals and energy stocks are set to weigh. We could see a repeat of yesterday, when European stocks gradually warmed up from a weak start to end the session higher. Here's your futures snapshot: (Kit Rees) ***** EUROPEAN EARNINGS: LLOYDS, GLENCORE, UK HOUSEBUILDERS IN FOCUS (0643 GMT) As we said earlier, it's going to be another busy day of earnings, especially for UK banks with Lloyds set to give a full-year update. A report from Sky News late yesterday said that Lloyds will unveil a 1 billion pound ($1.40 billion) share buyback plan with its annual results, but Lloyds has declined to comment on the report. We've also got miner Glencore reporting full-year figures, and a couple of UK housebuilders giving updates. More broadly, European fourth-quarter earnings are expected to have increased by 14.6 percent from the same period in 2016, or 11.6 percent excluding the energy sector, according to data from Thomson Reuters I/B/E/S. Here's a summary of European firms set to report this morning: IBE.MC Full Year 2017 Iberdrola SA Earnings and Outlook Update Release O2Dn.DE Q4 2017 Telefonica Deutschland Holding AG Earnings Release ORAN.PA Q4 2017 Orange SA Earnings Release GETP.PA Full Year 2017 Getlink Earnings Release FGP.L Q3 2018 FirstGroup PLC Trading Statement Release UTG.L Full Year 2017 Unite Group PLC Earnings Release BDEV.L Half Year 2018 Barratt Developments PLC Earnings Release CAPCC.L Full Year 2017 Capital & Counties Properties PLC Earnings Release OMVV.VI Q4 2017 OMV AG Earnings Release ACCP.PA Full Year 2017 Accor SA Earnings Release ATOS.PA Full Year 2017 Atos SE Earnings Release SATG.DE Q4 2017 Sartorius AG Earnings Release STDM.PA Q4 2017 Sartorius AG Earnings Release AGES.BR Q4 2017 Ageas SA Earnings Release TOM.OL Q4 2017 Tomra Systems ASA Earnings Release REZT.ST Q4 2017 Rezidor Hotel Group AB Earnings Release WLSNc.AS Full Year 2017 Wolters Kluwer NV Earnings Release LLOY.L Full Year 2017 Lloyds Banking Group PLC Earnings Release GL9.I Full Year 2017 Glanbia PLC Earnings Release MTXGn.DE Q4 2017 MTU Aero Engines AG Earnings Release HOCM.L Full Year 2017 Hochschild Mining PLC Earnings Release GLEN.L Full Year 2017 Glencore PLC Earnings Release HOTG.DE Full Year 2017 Hochtief AG Earnings Release VLLP.PA Full Year 2017 Vallourec SA Earnings Release TCH.PA Full Year 2017 Technicolor SA Earnings Release (Kit Rees) ***** MORNING CALL: EUROPEAN SHARES SET TO SLIP (0622 GMT) Good morning and welcome to Live Markets. European shares are seen edging lower this morning, according to financial spreadbetters, on another busy day of earnings. Spreadbetters expect Germany's DAX to open 40 points lower, France's CAC 20 points lower and Britain's FTSE 100 5 points lower. This follows a muted session on Wall Street, though Asian shares gained. Aside from earnings, focus today will be on flash PMI releases for the Euro zone to see whether the economic momentum can be sustained in the region. (Kit Rees) (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)

LIVE MARKETS-European earnings: Lloyds, Glencore, UK housebuilders in focus

Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net EUROPEAN EARNINGS: LLOYDS, GLENCORE, UK HOUSEBUILDERS IN FOCUS (0643 GMT) As we said earlier, it's going to be another busy day of earnings, especially for UK banks with Lloyds set to give a full year update. A report from Sky News late yesterday said that Lloyds will unveil a 1 billion pound ($1.40 billion) share buyback plan with its annual results, but Lloyds has declined to comment on the report. We've also got miner Glencore reporting full year figures, and a couple of UK housebuilders giving updates. More broadly, European fourth quarter earnings are expected to increase 14.6 percent from the same period in 2016, which would be an increase of 11.6 percent excluding the energy sector, according to data from Thomson Reuters I/B/E/S. Here's a summary of European firms set to report this morning: IBE.MC Full Year 2017 Iberdrola SA Earnings and Outlook Update Release O2Dn.DE Q4 2017 Telefonica Deutschland Holding AG Earnings Release ORAN.PA Q4 2017 Orange SA Earnings Release GETP.PA Full Year 2017 Getlink Earnings Release FGP.L Q3 2018 FirstGroup PLC Trading Statement Release UTG.L Full Year 2017 Unite Group PLC Earnings Release BDEV.L Half Year 2018 Barratt Developments PLC Earnings Release CAPCC.L Full Year 2017 Capital & Counties Properties PLC Earnings Release OMVV.VI Q4 2017 OMV AG Earnings Release ACCP.PA Full Year 2017 Accor SA Earnings Release ATOS.PA Full Year 2017 Atos SE Earnings Release SATG.DE Q4 2017 Sartorius AG Earnings Release STDM.PA Q4 2017 Sartorius AG Earnings Release AGES.BR Q4 2017 Ageas SA Earnings Release TOM.OL Q4 2017 Tomra Systems ASA Earnings Release REZT.ST Q4 2017 Rezidor Hotel Group AB Earnings Release WLSNc.AS Full Year 2017 Wolters Kluwer NV Earnings Release LLOY.L Full Year 2017 Lloyds Banking Group PLC Earnings Release GL9.I Full Year 2017 Glanbia PLC Earnings Release MTXGn.DE Q4 2017 MTU Aero Engines AG Earnings Release HOCM.L Full Year 2017 Hochschild Mining PLC Earnings Release GLEN.L Full Year 2017 Glencore PLC Earnings Release HOTG.DE Full Year 2017 Hochtief AG Earnings Release VLLP.PA Full Year 2017 Vallourec SA Earnings Release TCH.PA Full Year 2017 Technicolor SA Earnings Release (Kit Rees) ***** MORNING CALL: EUROPEAN SHARES SET TO SLIP (0622 GMT) Good morning and welcome to Live Markets. European shares are seen edging lower this morning, according to financial spreadbetters, on another busy day of earnings. Spreadbetters expect Germany's DAX to open 40 points lower, France's CAC 20 points lower and Britain's FTSE 100 5 points lower. This follows a muted session on Wall Street, though Asian shares gained. Aside from earnings, focus today will be on flash PMI releases for the Euro zone to see whether the economic momentum can be sustained in the region. (Kit Rees) (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)

CORRECTED-LIVE MARKETS-E.ON, "an innocent bystander" in German utilities' rout

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 E.ON, "AN INNOCENT BYSTANDER" IN GERMAN UTILITIES' ROUT (1602 GMT) That's how HSBC describes E.ON in comparison to its German peers in a sectoral note, which draws a gloomy picture of utilities stocks in the country. "We believe that, with bond yields having risen so far and defensive stocks so unloved ... it is worth considering whether the German utilities offer more reward than risk", the broker writes. E.ON however is "too cheap to ignore", HSBC believes, arguing it doesn't expect "Innogy-style profit warnings" but "positive dividend catalysts on the 14 March capital markets presentation". Utilities, like other defensive stocks such as telecoms, have severely underperformed the broader European market as you can see below: (Julien Ponthus) ***** JAPAN AND ITALY BECOME MOST RISKY DEVELOPED COUNTRIES -AXIOMA (1551 GMT) Following the market upheaval over the past few weeks, Axioma has seen a reshuffling in individual country risk, with risk in most developed countries rising from 9 percent to 14.5 percent, according to one of Axioma's models. Japan and Italy have taken Portugal's place as the most risky developed countries, while the U.S. has gone from being one of the least risky, to the sixth riskiest. Here's Axioma's chart showing their Equity Risk Monitor as of Feb 16: (Kit Rees) ***** HOW MANY FED HIKES TO BREAK THE 'CAMEL'S BACK'? (1520 GMT) Four could do the trick, reckons Guggenheim Partners' CIO, amid concerns that central banks' bid to achieve monetary normalization after years of quantitative easing could go badly wrong and cause a market crash. Scott Minerd argues that one of the biggest market risks for 2018 is "the perception ... that the Fed is falling behind the curve" in its bid to keep inflation under control. "Eventually the Fed will acknowledge that three rate hikes will not be enough" and raise rates four times in 2018, he writes. "Market speculation will increase that there may be a need for five or six rate hikes", he writes, describing a "highly plausible" scenario. "That will be the straw that breaks the camel’s back" and leads markets into a crash which would in many ways remind investors of 1987, he speculates. (Julien Ponthus) ***** LUNCHTIME UPDATE: EUROPEAN STOCKS GET POSITIVE VIBE (1325 GMT) Over halfway through the session and European stocks have perked up a bit, with the STOXX 600 now in positive territory as results boost Europe's industrials, while buoyant commodities are also helping. Things are looking a little different over in the U.S. as Wall Street returns from a holiday: futures are down around 0.7 percent, with focus on some disappointing results from Walmart. Here's your lunchtime snapshot: (Kit Rees) ***** BREXIT-"MAD MAX", THE OLIVE BRANCH AND A CORBYN REMINDER (1235 GMT) A lot of the action on the FTSE this morning was driven by swings on the FX front with the pound "on a Brexit hype", according to the expression used on Twitter this morning by ING strategist Viraj Patel. The FTSE took a temporary hit after the pound rose on hopes for a soft Brexit, but gradually recovered as sterling gave back some gains. "The big move of the morning was in the normally somnolent EURGBP pair," IG's Chris Beauchamp noted after a media report said the European Parliament was preparing to call for Britain to have "privileged" single market access. "Is sanity about to prevail?", Beauchamp asked. News of the possible olive branch came after a pledge by the UK's Brexit minister not to push post-Brexit Britain into a competitive war with the EU via "a Mad Max-style world borrowed from dystopian fiction" and "an Anglo-Saxon race to the bottom". David Davis also said he was certain Britain and the European Union could reach a deal. As the feel-good headlines hit traders' screens, Berenberg's Kallum Pickering published a note where he warned that while a transitional arrangement might very well be found at an EU summit next month, "the hard questions (Irish border and UK immigration policy) remain largely unanswered". It might also be worth noting that for a number of investors, a snap election leading to a Labour government is a more frightening prospect than Brexit. Here is what Jeremy Corbyn tweeted this morning: (Julien Ponthus) **** IS IT ALL THAT BAD FOR TELECOMS? (1215 GMT) Harsh competition, costly network upgrades, sluggish growth have been weighing on European telecoms for years, making the sector rather unpopular among investors. And now there's also the risk that rising rates could add pressure on the highly-indebted, dividend-paying sector. But is it all that bad? Raymond James analysts Stephane Beyazian and Thibault de Coincy have taken a look at the latest earnings updates and there are some positives, namely potential M&A and growth in less traditional business like digital and internet of things. Overall however it's still a mixed bag, probably still not enough to bring investors back. Anyway here are their key eight takeaways from the telecoms earnings season: (-) 2018 guidance is not as exciting as we hoped for, albeit Q4 was quite encouraging (=) Commercial trends: Mid-Caps performed correctly, incumbents modestly (-) Mobile markets: going backwards for a few of them (=) Revenues: a mixed bag in Q4, but earnings were faster than in Q3-17 (+) The M&A wave gets stronger by the week with the addition of VOD/LBTY discussions and the TDC buy-out (+) BT back to a 'normal' telco model: spending less on football to the benefit of Sky and significantly more in FTTH (+) IOT. Vodafone reported 18% growth in IOT sales, supporting its ~2% underlying growth in B2B (+) Digitalization is gaining traction. Telenor stole the show with its accelerating reduction in costs In this chart you can see how telecoms have clearly underperformed the broader market over the past two years. (Danilo Masoni) **** THE SELL-OFF SIGNALLED "A WORLD OF HIGHER INTEREST RATES" (1010 GMT) Think of the early February correction as a "welcome-to-a-new-paradigm" road sign rather than an isolated sell-off and it suddenly could make more sense. "The proximate cause of the drop in equities was a series of signals (including rising wages) that U.S. inflation is indeed picking up", BMI research said, arguing that "the sell-off reflects a significant repricing of asset markets rather than a harbinger of an economic downturn". BMI analysts caution against focusing too much on U.S. interest rates and overlooking the global picture, with the BOE getting more hawkish and "soaring" policy rate hike expectations in the eurozone. "We are entering a world of higher interest rates across the board, which is clearly bad for global yield sensitive assets", warns BMI, as investors reconsider equity risks premiums and scratch their heads over how to value "bond proxies" such as consumer staples or utilities. As to "soaring" expectations for eurozone interest rates, here's their chart of implied ECB changes: (Julien Ponthus) ***** OPENING SNAPSHOT: EUROPEAN SHARES EDGE UP (0806 GMT) European shares have opened slightly higher but gains among main national indexes remain limited as investors await for Wall Street to reopen after Monday's holiday break. The STOXX 600 is edging up 0.15 percent, as you can see in the snapshot, while top movers on the pan-European benchmark included HSBC and BHP, both down nearly 3 percent after disappointing updates. Strong results boosted Edenred, up more than 10 percent to a record high, and Simcorp, while Temenos dropped 6 percent after news it's in advance talks to buy UK rival Fidessa Group for about 1.4 billion pounds. (Danilo Masoni) ***** WHAT'S ON OUR RADAR (0750) "Hey ho, and back to 'real' markets we go today", writes Rabobank this morning as we get back into a 'normal' day of trading with Asia and Wall Street back from holiday. Futures point to a slightly positive open in Europe, which ended a three-day winning streak on Monday with consumer staples continuing to fuel doubts on their valuation as Reckitt results showed yesterday. It's a major earnings day for Britain with BHP and HSBC both reporting results. For the banking sector, Labour’s Corbyn’s pledge to make banks work for the “real economy” and not the other way around could worry some shareholders who are getting more sweat from the possibility of a snap election than Brexit. Still in the UK, bookmaker William Hill was fined for money laundering failures. Other possible movers today include HeidelbergCement raising its synergy target from Italcementi takeover, staffing company Adecco buying U.S.-based online recruitment platform Vettery. Still on the M&A front Temenos said it is in advanced talks to make cash offer for Fidessa. Corporate governance: LVMH named a new chairman and CEO for Fendi and drugmaker Hikma appointed a new CEO. (Julien Ponthus) ***** EUROPEAN HEADLINES: EARLY MORNING ROUND-UP (0725 GMT) HSBC's 2017 profit jumps but below view, plans $5 bln-$7 bln capital raising BHP's half year profit jumps 25 pct, boosts dividend HeidelbergCement raises synergy target from Italcementi takeover Adecco buys digital recruitment firm Vettery, price not disclosed Edenred strikes confident note for 2018 as annual profits rise LVMH names Serge Brunschwig as new Chairman and CEO of Fendi Temenos says in advanced talks to make cash offer for Fidessa Dutch court says Steinhoff must amend 2016 accounts UK pensions regulator ignored trustee requests on Carillion -lawmakers Covestro says raking in cash at faster rate than expected BASF to face millions in extra costs in UK each year from Brexit -Handelsblatt ProSieben in exclusive talks with General Atlantic on digital stake sale- sources Covestro says raking in cash at faster rate than expected Poste Italiane reports 11 pct rise in 2017 net profit Hotchtief To Adjust Bid For Abertis To 18.36 Eur/Shr If Dividend Is Approved Adecco buys digital recruitment firm Vettery, price not disclosed Alstom To Supply 20 Additional Metros To Île-De-France Mobilités And The RATP Vicat FY Net Income Group Share Up At EUR ‍​142 Million (Danilo Masoni) ***** FUTURES POINT TO A SLIGHTLY POSITIVE OPEN (0705 GMT) Actually, futures are pointing out to a slightly more positive open in Europe than earlier indications from financial spreadbetters suggested. These are modest gains but gains nonetheless: (Julien Ponthus) ***** MORNING CALL: EUROPE SEEN OPENING FLAT (0619 GMT) Good morning and welcome to Live Markets. European shares are seen opening flat today after dipping during the previous session when they ended a three-day winning streak as markets in the U.S. and China were closed. In Asia, where trading resumed, stocks slipped while the dollar edged up to pull further away from three-year lows. Financial spreadbetters expect London's FTSE to open 8 points higher at 7,251.1, Frankfurt's DAX to open 1 point higher at 12,386.6 and Paris' CAC to open 4 points lower at 5,256.18 (Julien Ponthus) ***** (Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus; editing by Tom Pfeiffer)

The German share price index, DAX board, is seen at the stock exchange in...

HSBC weighs on banks as European stocks advance

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Fees case may enable U.S. Supreme Court to curb union power

WASHINGTON The U.S. Supreme Court on Monday will consider for the second time in two years whether to choke off a critical funding stream for public-employee unions, potentially reducing organized labor's influence in the workplace and at the ballot box.

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