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EUROPEAN EQUITY OPENING HEADLINES INCLUDING: Persimmon says new financial year has started well with total forward sale revenue 35% higher Y/Y

Last updated: 09:42 16 Apr 2014 BST, First published: 08:42 16 Apr 2014 BST

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Asia

Asian stock markets trade higher following Chinese GDP data for Q1 and the higher close on Wall St. where indices pared intraday losses. The Nikkei 225 gapped higher at the open supported by improving risk appetite as Softbank, the second largest weighted stock in the Nikkei 225 who own a 37% stake in Alibaba, have surged higher by as much as 7.4%, after Alibaba reported a 101% rise in Y/Y Q3 net income. Elsewhere the ASX 200 attempting to gain a foothold above the 5400 handle, supported by the technology sector. Chinese markets trade higher after a better than expected Y/Y GDP figure for Q1 of 7.4% vs. Exp. 7.3% (Prev. 7.7%) but the slowest quarterly growth since late 2012 kept a cap on the gains. The Nikkei 225 preliminary closed up 3.0% at 14,417.68

Best Performing Sectors in the Nikkei 225: Telecommunications (+6.68%), Oil and Gas (+4.10%) and Consumer Services (+3.52%)

Worst Performing Sectors in the Nikkei 225: Technology (1.86%), Utilities (+1.97%) and Consumer Goods (+2.08%)

FTSE

BHP Billiton Ltd - Co.'s Q3 attributable iron ore output up 23% to 49.6mln tons vs. Exp. 48.3mln tons, Co. has raised its FY iron ore production guidance. (BBG)

Tesco - Q4 UK LFL sales ex-fuel, ex-VAT down 3% vs. Exp. down 2.5%, FY trading profit GBP 3.32bln vs. Exp. GBP 3.23bln, final div. unchanged at GBP 0.1013, in line with Exp., Co. writes down China unit by GBP 540mln, says expects challenging environment to continue through 2014/15 and 'performance in year not where we had planned it to be'.(BBG)

Burberry - H2 comp sales up 12% vs. Exp. up 10.5%, H2 total sales GBP 1.298bln vs. Exp. GBP 1.29bln, Co. says at current exchange rates sees a material adverse impact on reported profit. (BBG/RTRS)

Hargreaves Lansdown  - Q3 net inflows GBP 1.83 vs. Prev. GBP 1.80bln, AUM rose GBP 2.3bln to GBP 45.7bln, YTD net revenue up 8% to GBP 216mln, Co. says budget changes creates opportunity. (BBG)

RSA  - CEO of UK & Western Europe ops. Adrian Brown has resigned from board, but will continue in his exec. role until after a successor has been named. (BBG)

Weir  - Metso (MEO1V FH) board rejects Co.'s takeover proposals. (BBG)

Persimmon  – Co. says new financial year has started well with total forward sale revenue 35% higher Y/Y. (BBG)

Reckitt Benckiser  – Co. Q1 Net Rev. GBP 2.37bln vs. Exp. GBP 2.38bln with Q1 LFL sales growth ex-pharma 4% vs. Exp. 4%. Co. says made robust start to the year with net rev. growth on track to meet full year targets, and a spin-off of the Co.'s pharma unit is a 'strong' option. (BBG/FT)

Fresnillo – Co. says that their gold production will ramp up above normal levels in 2014 and that they are currently on track to meet their 2014 targets, Q1 attributable gold output down 30% Y/Y on stoppage of ops. and Q1 attributable silver output rises 3.5% to 10.4mln oz. (BBG) 

FTSE 100: Ex-divs to take 3.2 points off the FTSE 100. Companies going ex-dividend: ARM Holdings (GBP 0.04), BAE Systems (GBP 0.134), Smith & Nephew (USD 0.19), Capita (GBP 0.198), Petrofac (USD 0.44), Melrose Industries (GBP 0.055), Barratt Developments (GBP 0.036), FTSE 250: Amlin (GBP 0.202), Premier Oil (GBP 0.056)

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

DAX

Volkswagen  - Scania's (SCVB SS) Swedish shareholders' association has recommended members to accept the Co.'s bid for Scania. (RTRS)

Deutsche Bank  - Co. is said to be seeking the sale of it's Cosmopolitan Las Vegas Resort for around USD 2bln. (BBG)

OTHER GERMAN COMPANIES

Hochtief  - Co. has increased its stake in Leighton (LEI AU) to 60%. (BBG)

GEA Group  - Co. confirm they are to sell their heat exchangers unit to Triton for EUR 1.3bln. (BBG) This value is higher than the EUR 1bln slated yesterday.

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

DEUTSCHE BOERSE RAISED TO HOLD VS SELL AT EQUINET

PROSIEBENSAT.1 RAISED TO NEUTRAL VS SELL AT CITI

CAC

EDF – Co. interested in purchasing the Public Power Co. from Greece for EUR 1.5-2bln. (Le Figaro)

Danone - Q1 revenue EUR 5.06bln vs Exp. EUR 5.15bln, Q1 organic growth rose 2.2%, in line with Exp. and Early Life Nutrition unit down 7.7% vs. Exp. down 9%, Co. sees FY sales growth of 4.5-5.5% and keeps 2014 targets. (BBG)

OTHER FRENCH COMPANIES

Aeroports de Paris - Co. March passenger traffic rises 0.9% to 7.3mln. (BBG)

Edenred  - Q1 sales down 4.6% to EUR 238mln, hurt by unfavourable FX. Co. confirms 8% - 14% mid-term annual growth in issue volume. (BBG)

Virbac - Q1 net sales EUR 180.5mln. (BBG)

Technip  – Co. and Heerema win total E&P Angola contract worth USD 3.5bln. (BBG)

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

REMY COINTREAU  CUT TO SELL VS HOLD AT SOCGEN

VEOLIA  RAISED TO NEUTRAL VS UNDERPERFORM AT EXANE

Pan-European

ASML  - Q1 net EUR 249mln vs. Exp. 230mln, Q1 revenue EUR 1.4bln vs. Exp. EUR 1.42bln, Co. cuts H1 sales forecast on logic order slowdown, sees total Q2 and Q3 rev at about EUR 3bln and CEO says confident to meet 2016 level productivity EUV. (BBG/RTRS) 

Telefonica  – Co. and Blackstone (BSX) create mobile advertising exchange venture called Axonix. The venture will act as a middleman media companies targeting Europe, US and Latin America. (BBG) 

Ziggo  – Co. Q1 Rev. EUR 394mln vs. Exp. EUR 399. Co. sees completion liberty takeover in Q3 and Q4. (BBG)

Luxottica  – Co. signs 10-year eyewear license agreement with Michael Kors. (BBG)

ATX: Companies going ex-dividend: Verbund (EUR 0.45)

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

ENEL CUT TO HOLD VS BUY AT SOCGEN

TERNA  CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY

SMI

Credit Suisse  - Q1 net income CHF 859mln vs. Exp. CHF 1.09bln, Q1 inv. bank pretax CHF 827mln vs. Exp. CHF 1.02bln and Q1 PBWM pretax CHF 1.01bln vs. Exp. CHF 941mln, CHF 3.4bln of adj. annualized savings and Co. says it has continued focus on resolving its US tax dispute, CEO says in Q1 CS achieved ROE of 14% in strategic businesses, well within reach of our 15% through-the-cycle target. FT writes that the earnings release could result in calls for the bank to spin-off its wealth management arm. (BBG/FT)

Syngenta - Q1 sales USD 4.68bln vs. Exp. USD 4.68bln, Co. says on track to reach FY sales growth target and sees impact of currencies of about USD 100mln of FY EBITDA vs. Prev. forecast of USD 50mln. (BBG) 

SMI: Companies paying dividend: Julius Baer Group (CHF 0.60)

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

Scandinavia

N/A

STOXX 600: Companies paying dividend: Holmen (SEK 9.00), Stockholm OYJ (EUR 0.40), Schouw & Co (DKK 6.00)

BROKER RECOMMENDATIONS (BBG/RTRS/DJN)

VOLVO RAISED TO HOLD VS SELL AT DEUTSCHE BANK

AXFOOD CUT TO NEUTRAL VS BUY AT SWEDBANK

METSO CUT TO HOLD VS BUY AT SEB

GENMAB RAISED TO NEUTRAL VS SELL AT GOLDMAN

CARGOTEC RAISED TO BUY VS HOLD AT KEPLER CHEUVREUX

US

US markets closed yesterday's session higher with stocks paring initial opening losses, as markets overcame early fears on an escalation of tensions in Eastern Ukraine. Momentum names initially suffered and Tesla (-2.2%) fell as much as 7%, as Ukraine fears looked to deepen the bear market trend which the NASDAQ biotech index is currently in, however after the European equities close, stocks recovered with some short covering observed as geopolitical concerns dissipated. Finally, the DJIA finished up 0.55% at 16,262.56, the S&P 500 up 0.68% at 1,842.98 and the NASDAQ 100 up 0.38% at 3,487.85.

Best Performing Sectors in the S&P 500: Utilities (+1.31%), Oil & Gas (+1.25%), Health Care (+1.10%)

Worst Performing Sectors in the S&P 500: Consumer Services (-0.05%), Telecommunications (+0.14%), Technology (+0.38%)

Intel Corp (INTC) - Q1 EPS USD 0.38 vs. Exp. GAAP EPS USD 0.37, Q1 rev USD 12.80bln vs Exp. USD 12.82bln and reaffirms forecast for yearly revenue. Co. sees Q2 gross margin percent 63% plus or minus a couple percentage points vs Exp. 59.8%, Q1 gross margin 59.7% vs Exp. 59.1% and Q1 PC client group revenue down 1% Y/Y to USD 7.9bln. (BBG) Co. shares traded up 3.5% in aft-mkt trade

Yahoo! (YHOO) - Q1 Adj. EPS USD 0.38 vs. Exp. USD 0.37, Q1 rev. USD 1.13bln vs. exp. USD 1.08bln, Q1 rev. ex-TAC USD 1.09bln, Q1 search rev. ex-TAC up 9% at USD 444mln. Alibaba October-December net income up 110% YOY and rev up 66% at USD 3.06bln. (BBG) Co. shares traded up 11% in aft-mkt trade

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