Welcome to the home for real-time coverage of European equity...

Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. Reach her on Messenger to share your thoughts on market move [email protected]

CHIPS AHOY (0557 GMT) The standout corporate news this morning is from IAG and Samsung Electronics. Samsung has warned of a steep plunge in Q2 operating profit, its third consecutive quarter of declines, as the U.S.-China trade war wreaks havoc in global chip and smartphone markets.

That news is likely to pour some cold water over the European semiconductor makers at the open, reinforcing worries that the H2 recovery remains elusive as an official truce in the U.S.-China trade spat remains far off, traders say.

British Airways owner IAG is looking at making a bid for Norwegian Air, according to a news report.

Other headlines this morning:

Deutsche Bank plans separate "corporate bank" unit as part of overhaul - report Aroundtown: Acquisition Of 900 Mln Eur Properties In Germany And Benelux UK retailers suffer "washout" in June - survey EXCLUSIVE-France's Mersen investigated by India's antitrust body -sources Vivendi's pay-TV Canal Plus to cut 500 jobs in France - Les Jours Rio Tinto's Icelandic aluminium plant attracts Glencore - sources ArcelorMittal removes 30 families from area close to dam in Brazil EU opens road to 5G connected cars in boost to BMW, Qualcomm French official says "not aware" of new discussions on Renault, Fiat Chrysler IAG prepares offer for Norwegian Air - Spain's OKdiario

(Josephine Mason)

	***** 
	 
	LOOKING FOR DIRECTION (0522 GMT)  

With the U.S. markets closed overnight, Asian trading's been a little subdued and Europe is also expected to be pretty muted this morning, with all eyes on U.S. nonfarm payrolls later. Wall Street closed at record highs before the July 4 holiday.

Still, the pan European STOXX 600 ended yesterday at its highest level since May last year and is on track for a fifth straight week of gains amid optimism that Christine Lagarde, the nominee to replace Mario Draghi as ECB chief, will maintain the central bank's dovish stance and as Washington and Beijing prepare to resume trade talks.

Expectations in the bond market are set for an interest rate cut in the United States this month, although some investors are starting to question whether the U.S. market has gotten ahead of itself given data from the world's largest economy is holding up ok.

"Today's US payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points," says Michael Hewson, chief market analyst at CMC Markets UK.

"Currently market pricing is at a 100% certainty that we will get some form of move from the FOMC when they meet at the end of this month, despite data that while by and large is a little softer, isn't screaming economic slowdown."

	***** 
	(Josephine Mason)