Sun, Nov 18, 2018 - Page 14 News List

Brexit chaos hits European shares

Reuters, LONDON

European shares slipped on Friday as investors licked their wounds after a tumultuous week while strong results from Vivendi SA boosted the media sector.

The pan-European index lost steam only an hour into trading, as British media reports suggested that lawmakers were likely to trigger a vote of no confidence in British Prime Minister Theresa May.

The index posted a weekly loss as Brexit chaos, Italy’s budget showdown with the European Commission and anxious oil markets sapped risk appetite.

The STOXX 600 opened 0.7 percent up on Friday, but ended the day down 0.2 percent at 357.71, falling 2.2 percent for the week.

Germany’s DAX fell 0.1 percent on Friday and lost 1.63 percent for the week.

Britain’s FTSE 100 slipped 0.3 percent, down 1.3 percent for the week, and FTSE 250 fell 0.4 percent, down 2.7 percent for the week.

French media company Vivendi’s quarterly results helped to lift the media sector by 1.5 percent.

Vivendi shares topped France’s CAC 40, climbing 5.9 percent after the company posted stronger than expected third-quarter sales, helped by growth in music streaming at its Universal Music Group (UMG).

It also said it was lining up banks for a possible sale of part of the UMG division.

Deutsche Bank AG analysts said the fourth-quarter slate for Universal looks “strong” with releases announced for multiple platinum sellers and ongoing Drake and Eminem sales.

“With solid steps towards a stake sale in 2019, this is a timely reminder that valuations of over 20 billion euros for UMG are not hype,” they wrote in a note to clients.

Bollore Group, which is also owned by French media tycoon Vincent Bollore, gained 3.7 percent.

The technology sector lagged the market after worse-than-expected results from US chipmaker Nvidia Corp, the latest in a string of negative news for tech components producers.

German semiconductor maker Siltronic AG slid 3 percent, among the biggest STOXX 600 fallers.

Dutch lender ABN AMRO Group NV also fell 2.7 percent after its results.

ABB shares were up 2.5 percent after sources said the Swiss industrials group is in talks with three Asian suitors for the sale of its power grids business.

Swiss chocolate producer Barry Callebaut AG dropped 3.7 percent after members of the majority stakeholder Jacobs family sold 150,000 shares, amounting to 2.7 percent of the company.

Swedish electrical components company Nibe Industrier jumped 6.7 percent, the top STOXX 600 gainer, after its results.

Outside large-cap stocks, Danish industrial component maker NKT A/S plunged 19.2 percent after it cut its full-year earnings outlook and chief executive officer Michael Hedegaard left the company.

Shares in the maker of the Angry Birds mobile game, Rovio Entertainment Corp, jumped 10.2 percent after third-quarter results.

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