LIVE MARKETS-Look up! Cash coming from aerospace – Reuters

March 14 – Welcome to the home for real time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Helen Reid. Reach her on Messenger to share your thoughts on market moves: [email protected] LOOK UP! CASH COMING FROM AEROSPACE (1145 GMT) UBS believes the European Aerospace and Defence industry is poised to deliver solid free cash flow growth and that could further underpin share prices in the sector, which has already risen 15 percent over the last year, comfortably beating the broader marker. “FY17 results saw better than expected cash generation across the space, and we see scope for further improvement 2018-20e to drive share-price outperformance,” analysts at the Swiss investment bank says in a note, raising their FCF estimates for Airbus and saying they are increasingly confident Rolls Royce will deliver. On top of that UBS sees “improving mid-term growth prospects”. They say the civil cycle remains robust with Airbus expecting deliveries to increase to around 800 deliveries in 2018 from 718 in 2017. They’re also remaining positive on the aftermarket, citing Safran’s growth guidance, but are cautious on suppliers like Meggitt given price pressure from OEMs. (Danilo Masoni) ***** NARRATIVE SHIFTS FROM “#EUROBOOM” TO “PEAK GROWTH” (1134 GMT) Slowly but surely, the narrative that the Euro zone could somewhat have reached “peak growth” continues to grow this morning with data showing the Euro zone industrial production was weaker than expected in January. “While January may have been a weak month, the recovery of production still maintains a relatively strong pace. The question is whether this pace can be sustained in 2018 as well,” ask ING analysts in a note commenting on the statistics. “Although still signalling strong growth, the somewhat weaker PMI data in February begs the question whether the

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