MILAN (AP) — The European Union's budget chief sought to ease tensions with Rome on Friday over Italy's rule-busting budget, after markets reacted by pushing up Italy's borrowing costs to the highest levels in five years.Pierre... Reported by New Zealand Herald 3 hours ago.

The leaders of Italy's ruling coalition parties accused each other on Friday of misleading voters over a disputed tax amnesty in their most acrimonious falling-out since they formed a government in June. Reported by Reuters India 3 hours ago.

The EU's budget chief, Pierre Moscovici, has called for a row over Italy's draft budget to be resolved calmly. He said he was waiting for Rome's response to EU objections to a planned spending hike. Reported by Deutsche Welle 2 hours ago.

· *EUR/USD rebounds further during Friday’s US session and climbs to 1.1530. *
· *Technical bias still points to the downside but the bounce from lows eased pressures.* 

The EUR/USD rose further during the US session boosted by the GBP/USD pair that climbed following report, according to which UK PM Theresa May would drop a key demand regarding the Irish border. 

The euro rose to 1.1533, rising slightly above Thursday’s high. From the 2-day high pulled back and near the end of the week was hovering around 1.1510/15, almost a hundred pips above the daily low but still down 40 pips from the level it had a week ago. 

The main driver of the weekly slide of EUR/USD was a rally of the US dollar against majors on the back of higher US yields and then amid rising risk aversion. While the greenback continues to receive support from monetary policy expectations, the euro had been modestly affected by the Italian budget situation. The solid performance the EZ economic offers support to the common currency. 

On Monday, Italy will respond to the EU letter regarding the budget target while on Thursday is the European Central Bank meeting. Market analysts don’t expect a significant impact from the ECB. Rates era expected to remains unchanged and focus will be on the statement and Draghi’s press conference. In the US, the key report is due next Friday, the first reading of Q3 GDP growth. 

*Levels to watch *

If the recovery gains momentum, above 1.1530 the next strong resistance is seen around 1.1560 (horizontal level and the 20-day moving average) followed by 1.1600. During the week, the leg lower took place after EUR/USD was rejected from above 1.1600. 

On the downside, a slide back under 1.1500 would expose the key support seen at 1.1460. A confirmation below would signal a test of October lows (1.1425/30) and below attention will likely turn to 1.1400.  Reported by FXstreet.com 2 hours ago.

*Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.*

*A Wall Streeter who started his career on Black Monday recalls the pandemonium of the biggest one-day crash in stock market history*

Friday, October 19, marks the 31st anniversary of Black Monday, when the Dow Jones industrial average suffered a record 22% crash.

David Rosenberg, now the chief economist at Gluskin Sheff, was just starting out on Wall Street as the stock market crashed. "I had never in my life seen such pandemonium either professionally or personally," he recalled.

In an interview with Business Insider, Rosenberg shared his recollections of that day and the biggest lessons they hold for investors.

*Plaid, the fintech startup that quietly powers tech behemoths like Robinhood, Venmo, and Coinbase, is seeking funding at a $2 billion valuation*

Plaid, a fintech company whose software is used by Silicon Valley heavyweights like Betterment, Coinbase, and Robinhood, is holding talks with potential investors about raising money that could value the firm at more than $2 billion, according to people familiar with the matter.

The fundraise is still in the early stages, the people said, and a formal deal with investors has yet to be finalized.

In April, Forbes reported that the company's private valuation was $1 billion — meaning that Plaid, which counts 10,000 banks among its customers, could see its valuation double in less than six months.

*A key indicator of Italy's financial health is flashing red as its EU budget row intensifies*

The spread between yields on Italian and German bonds climbed to its highest level in almost five years on Friday as a row between Rome and Brussels over the country's budget threatens to boil over.

European Union authorities on Thursday rejected budget proposals put forward by Italy earlier in the week, accusing the eurozone's third largest economy of an "unprecedented" break of EU rules around spending and deficit limits.

Citing Italy's plans to increase spending and its deficit, and allow its government debt to remain elevated, the European Commission said the country is trying to undertake "a particularly serious" breach of the rules.

"Those three factors would seem to point to a particularly serious non-compliance with the budgetary policy obligations laid down in the Stability and Growth Pact," said a letter to Italian finance minister Giovanni Tria, which surfaced late Thursday.

*Facebook has hired Britain's former deputy prime minister as its global comms chief*

Facebook has hired the UK's former deputy prime minister Nick Clegg to head up its global communications team, in a move that has sent shockwaves through the British political establishment.

The Financial Times first reported that Clegg will become VP of global affairs and communications, and the hire has been confirmed by Facebook, Nick Clegg, and Facebook COO Sheryl Sandberg.

Clegg will take over the role from Elliot Schrage, who originally announced his departure from Facebook in June, but plans to stay at the company as an adviser.

Business Insider understands that Clegg will be reporting to Sandberg. Both she and chief executive officer Mark Zuckerberg have been wooing the ex-politician since this summer and promised that he would be influential in shaping the company's future direction.

*In markets news*

· Beware the 'real killer' in markets that's threatening to strike after decades in hiding
· Investors are doubling down on a trade that blew up in their faces earlier this year — here's what Morgan Stanley says they should do instead

Join the conversation about this story »

NOW WATCH: Ray Dalio says the economy looks like 1937 and a downturn is coming in about two years Reported by Business Insider 2 hours ago.

In the euro area, we have a busy week ahead of us, explained analysts at Danske Bank. Events include the ECB meeting, EU verdict on Italy’s budget and the PMIs.

*Key Quotes: *

“On Thursday, we have the* ECB Governing Council (GC) meeting*, which we expect to be a meeting with little action. Since the last meeting, incoming data has not warranted a change in policies, not least the wording on ending its APP. Therefore, we expect, the word ‘anticipate’ to remain. Should it be changed (meaning an official end to APP), it could lead to a knee-jerk market reaction, without long-lasting implications. We do not expect discussions on the capital key update but will scrutinise any hints on this. Further, we expect a ‘vigorous’ Mario Draghi, pointing to continued solid wage dynamics but still somewhat moderate inflation assessment.”

“On Wednesday, the euro area flash *PMIs for October *are due. In September, manufacturing numbers continued this year’s declining trend and fell to 53.2, while services rose slightly to 54.7. We expect services PMI to extend the pickup and rise to 54.9; in contrast, we see a downside risk for manufacturing PMI, declining further to 53.0 due to the deteriorating new orders component in the latest reading. In *Germany, IFO business climate* for October is on the agenda on Thursday, which has defied the recent downward trend in the PMI, and it will be interesting to see whether this divergence persists in Q4.”

“Last but not least, markets still await the European Commission’s verdict on* Italy’s budget* draft and we expect it to issue a negative opinion and request for revision within the coming week.” Reported by FXstreet.com 2 hours ago.

Jamie Redknapp heralded Jorginho as a ‘revelation’ at Chelsea following his summer move from Napoli. After initially being linked with a move to Manchester City, Maurizio Sarri pounced to bring the midfielder with him to Stamford Bridge from Serie A. Having already broken Premier League records thanks to his excellent ball retention skills, the Italy […] Reported by talkSPORT 18 minutes ago.

Mike Mackenzie’s daily analysis of what’s moving global markets Reported by FT.com 11 minutes ago.

Moody's Ratings recently announced its decision to cut Italy's rating to Baa3 while keeping the outlook stable.

*Key quotes (via Reuters)*

· A key driver for downgrade of Italy's ratings to Baa3 is a material weakening in Italy's fiscal strength.
· Italy's ratings downgrade also due to negative implications for medium-term growth of stalling of plans for structural economic & fiscal reforms.
· Italy's foreign and local currency bond and deposit ceilings were lowered to aa3 from the previous aa2.
· Italy's short-term foreign-currency bond and deposit ceilings were unchanged at prime-1.
· Italy's fiscal & economic policy plans "do not comprise a coherent agenda of reforms".
· Italy still exhibits important credit strengths that balance weakening fiscal prospects.
· Most of Italian government's spending increases are structural in nature, implying that they will be difficult to reverse.
· Italy's high debt level severely limits authorities' ability to use fiscal policy to cushion any future economic downturn. Reported by FXstreet.com 11 minutes ago.

Reported by RIA Nov. 6 hours ago.

Italy is status by means of its tough price range, refusing to chop spending in spite of debt attaining 130% of GDP. The extent of debt is greater than two times the Eu Union prohibit and 2nd best to Greece, however Italy’s top minister answered to grievance by means of explaining the price range, fairly … Reported by The News Articles 6 hours ago.

Relations between Rome and Paris hit new low as rights groups accuse France of mistreating migrants at Italian borders. Reported by Al Jazeera 6 hours ago.

press release

business review for the first nine months of 2018

Paris - October 22, 2018

Klépierre, the pan-European leader in shopping malls, today released its business review for the first nine months of 2018.(^[1]) The main highlights include:
 -      **Total revenues of €1,005.7 million, +2.0% year-on-year**
 -      **Shopping centers net rental income of €823.7 million, +3.1% like-for-like**(*^[2]*) **and +2.3% on a current basis **
 -      **Retailer sales +0.7% vs. the first 9 months of 2017*^*(*[3]*)**
 -      **Sustained leasing activity (1,381 leases; €28.6 million in additional minimum guaranteed rents) **
 -      **Net debt reduced by ca. €274 million to €8,879 million at September 30, 2018 vs. June 30, 2018; net cost of debt below 1.6%**
 -      **€575 million in disposals****(****7****)**** since the beginning of the year, at appraised values**
 -      **Leasing progressing rapidly for Hoog Catharijne and Créteil Soleil extensions**
 -      **2018 outlook confirmed: net current cash flow per share expected at least at €2.62**

**Jean-Marc Jestin, Chairman of the Klépierre Executive Board, commented,** "Klépierre's performance in the first nine months of the year confirms the relevance of our strategy in a changing retail landscape. Our operational excellence, combined with our portfolio of leading malls, allowed us to keep outperforming the market. We continued to bring the best of retail into our malls through buoyant leasing activity, which ensures dynamic rental growth. Since the beginning of the year, we have continued to streamline our portfolio at a steady pace while further lowering the company's leverage and buying back our shares. Going forward, we plan to accelerate our investment in our assets to further enhance their positioning in their catchment areas and deliver sustainable growth, while maintaining our rock-solid balance sheet."

**KEY FINANCIALS                     **

In € millions, Total-Share basis 9M 2018 9M 2017 Current
change
Gross rental income - Shopping centers 924.1 903.0 +2.3%
Gross rental income - Other retail properties 19.1 21.4 -10.6%
Total gross rental income 943.2 924.4 +2.0%
Management, administrative and other income (fees) 62.5 61.5 +1.7%
Total revenues 1,005.7 985.9 +2.0%
Net rental income - Shopping centers 823.7 805.3 +2.3%

**OPERATING PERFORMANCE**

*Revenues*

*Gross rental income*

Shopping center gross rental income (GRI, Total Share basis) increased by 2.3% to €924.1 million for the first nine months of 2018 compared with the same period last year. The progression reflects sound like-for-like rental growth and the contribution from the development projects of Prado and Hoog Catharijne. Disposals completed in 2017 and since the start of 2018 reduced shopping centers GRI by 1.6%.
GRI from other retail properties amounted to €19.1 million for the first nine months, a 10.6% decrease compared to the same period last year, reflecting the impact of recent disposals.
Management, administrative and related income (fees) increased by 1.7% to €62.5 million, mainly due to higher development fees.
As of September 30, 2018, total revenues increased by 2.0% year-on-year to just over €1.0 billion.

*Net rental income*

As of September 30, 2018, net rental income generated by shopping centers totaled €823.7 million, up 3.1% on a like-for-like basis,(2) and a 2.3% increase year-on-year on a current basis, benefiting from strong reversion and indexation (+1.3%).

*Retailer sales*

On a like-for-like basis,(3) total retailer sales at Klépierre's malls increased by 0.7% over the first 9 months of 2018. After a steady positive trend in July and August - despite one less Saturday in July - September sales were down (-5%) year on year, reflecting the effect of an adverse comparison basis (+10% in September 2017 vs. September 2016).
Since the beginning of 2018, weather conditions in Europe have been unfavorable for the Fashion segment (-1.5%). Other segments are performing well (+2.1%), mainly driven by Food & Beverage (+5.0%) and Health & Beauty (+4.4%), while the Culture, Gifts & Leisure (+1.7%) benefited from the recent leasing initiatives in the Sports segment (+7.4%).

*Leasing activity*

In the first nine months, Klépierre's leasing activity was dynamic across all malls. In the period, 1,381 leases were signed (versus 1,440 in 2017), translating into €28.6 million in additional annual minimum guaranteed rents (compared to €25.8 million in the first nine months of 2017; excluding contributions from extensions and greenfield projects).
Klépierre continued to implement its leasing strategy, which aims to enrich its retail offering across the portfolio, favoring experiential stores, seizing the growth momentum of trendy retailers and introducing new segments.
The Group notably continued to right-size fashion anchors, with 19 new stores opened or signed since the beginning of 2018 (including 6 Zara stores measuring approximately 3,000 square meters each; 3 Lindex, 2 Reserved, etc). At the same time, 13,500 sq.m. (net of openings) of smaller fashion spaces were reallocated to more dynamic segments, including Beauty (with 10 new Rituals and Sephora stores), Sports (15 new stores with The North Face, Snipes, Quiksilver, JD Sports, Foot Locker, and Courir), Health, and Food & Beverage (12 new stores with KFC, Nespresso, Vapiano, and Burger King). Since the beginning of the year, these segments represent an additional 19,700 of new sq.m. (net of closures).
In addition, Klépierre continued to implement new brands and store formats in its malls. Porta di Roma will notably host the first full Victoria's Secret concept store in a shopping center in Italy on 950 sq.m. Trendy cosmetics brand Normal has opened four stores in Klépierre malls since the beginning of the year, while Chinese mobile phone brand Mi Xiaomi will unveil three stores in Spain.
Other highlights of the first nine months of 2018 include:
 -      Assago (Milan, Italy): Following the acquisition of 6,200 sq.m. from the Carrefour hypermarket, Klépierre secured the implementation of a Zara store on its latest format to better anchor the mall. Combined with the Clubstore® refurbishment and Destination Food® implementation, this has significantly reinforced Assago's positioning in its catchment area, and generated an 8% increase in footfall and 10% increase in F&B retailer sales.(^[4])
 -      Forum Duisburg (Germany): Of the 52 leases set to expire in 2018, 90% have already been secured. In addition, following the opening of a Zara store in 2017, 11 new brands will enrich the retail mix, including Only, Jack & Jones, Orsay, and Oil & Vinegar. Footfall at Arneken Galerie Hildesheim has jumped by 40% since the September 2018 opening of a 2,000-sq.m. TK Maxx store.
 -      Following the recent Turkish Presidential Decree requiring, for a period of two years beginning in Q4 2018, the conversion of Euro and USD lease contracts to Turkish Lira, Klepierre estimates, based on current circumstances, the impact to represent less than 1% of the net current cash flow (group share) on a full-year basis.

**DEVELOPMENT PIPELINE AND ASSET ROTATION**

*Pipeline*

*Hoog Catharijne (€438 million investment,^([5]) yield-on-cost of 6.4%)^([6]) - Utrecht, the Netherlands*

In November 2018, the "South Mile" redevelopment phase of Hoog Catharijne - consisting of 11,200-sq.m. in retail space - will open as planned. Of the South Mile's 29 units, 25 are now leased or under advanced negotiations. The units include Ray-Ban, Guess, Lindt, BALR. and Levi's, as well as a pop-up store devoted to the world of Harry Potter.
The next phase of the development is expected to be delivered by the end of 2019 and will further enhance Hoog Catharijne's position as the leading mall in the Netherlands, thanks to its unique connection to Utrecht's central train station (88 million passengers per year), 72,000 sq.m. of retail space, iconic architecture, and powerful Fashion and Food & Beverage offering. Ultimately, Hoog Catharijne is expected to host more than 30 million visitors per year.

*Créteil Soleil (€134 million investment,^(^5^) yield-on-cost of 5.7%)^(^6^) - Paris region, France*

The extension of Créteil Soleil is advancing on schedule and expected to be completed by the end of 2019. This project aims to better connect the mall to the subway station, as well as create 11,000 sq.m. of additional retail space to enrich the mall's offering. Approximately 60% of the extension will be dedicated to Leisure and Food & Beverage, with the implementation of Klépierre's latest Clubstore® and Destination Food® concepts.
As of September 30, 2018, 70% of the new space is already signed or in advanced negotiations, including with brands such as Nike, Beef House, and Factory & Co.

*Disposals*

In the third quarter of 2018, Klépierre completed disposals across Europe for €223 million(^[7]). This amount includes the disposal of three malls in Italy: Metropoli and Settimo in Milan, and Rondinelle in Brescia. In addition, Klépierre sold two malls and an office building in Hungary: Alba Plaza in Székesfehérvar, Nyír Plaza in Nyiregyhaza, and Duna Plaza offices in Budapest. These disposals were made at appraised values (June 30, 2018).
Including sales under promissory agreement for €39.4 million, Klépierre's disposals since the beginning of 2018 amount to €574.6 million (excluding transfer taxes), in line with the Group's asset rotation strategy.

**DEBT POSITION AND FINANCING**

**As of September 30, 2018, Klépierre's consolidated net debt amounted to €8,879 million, a €274 million reduction compared to June 30, 2018. The reduction primarily reflects the €223 million in completed disposals. At this level, and based on June 30, 2018 valuations, Klépierre's Loan-to-Value ratio at September 30 amounts to 36.3%. **

Klépierre's average debt duration and average cost of debt remained stable at 5.9 years and 1.6%, respectively, compared to June 30, 2018. The Group's liquidity position remained strong at €2.1 billion.
Between January 1 and October 19, 2018, Klépierre repurchased 4,184,527 of its shares for a total  investment of €136 million. Taking into account the shares repurchased in 2017, to date Klépierre has invested €486 million of its €500-million program, announced in March 2017.

**OUTLOOK confirmed**

In 2018, Klépierre expects to generate net current cash flow per share of at least €2.62.

**RETAILER SALES**

**first nine months of 2018 vs first nine months of 2017**

Countries Like-for-like
change^(a) Share in total
reported retailer sales
France +1.1% 30%
Belgium -3.8% 2%
France-Belgium +0.9% 32%
Italy -2.7% 26%
Norway -0.6% 8%
Sweden +0.5% 7%
Denmark -2.9% 4%
Scandinavia -0.7% 19%
Spain +3.0% 8%
Portugal +4.7% 3%
Iberia +3.5% 11%
Poland -0.3% 3%
Hungary +10.5% 1%
Czech Republic +0.6% 2%
Turkey +13.4% 2%
CEE and Turkey +5.4% 8%
The Netherlands^(b) n.s. n.s.
Germany -0.8% 3%
TOTAL +0.7% 100%

Segments Like-for-like
change^(a) Share in total
reported retailer sales
Fashion -1.5% 40%
Culture, Gifts and Leisure +1.7% 17%
Health & Beauty +4.4% 13%
Food & Beverage +5.0% 11%
Household Equipment +0.1% 11%
Other -1.4% 8%
TOTAL +0.7% 100%

(a) Like-for-like change is on a same-center basis and excludes the impact of asset sales, acquisitions and foreign exchange fluctuations.
(b) Only a few Dutch retailers report their sales to Klépierre.

**TOTAL revenues**

In € millions Total Share   Group Share
9M 2018 9M 2017   9M 2018 9M 2017
France 322.4 315.1   263.3 258.4
Belgium 14.2 13.4   14.2 13.4
France-Belgium 336.7 328.5   277.5 271.8
Italy 160.2 157.0   157.7 154.6
Norway 53.5 54.5   30.0 30.6
Sweden 44.9 47.2   25.2 26.5
Denmark 42.9 43.0   24.0 24.1
Scandinavia 141.2 144.7   79.2 81.2
Spain 83.8 74.5   83.8 72.3
Portugal 17.7 16.5   17.7 16.5
Iberia 101.5 91.0   101.5 88.7
Poland 26.0 25.5   26.0 25.5
Hungary 18.8 16.6   18.8 16.6
Czech Republic 25.2 22.8   25.2 22.8
Turkey 17.9 25.6   16.1 23.6
Others 2.3 1.9   2.3 1.8
CEE and Turkey 90.2 92.5   88.4 90.3
The Netherlands 54.8 48.3   54.8 48.3
Germany 39.5 41.0   37.6 39.0
GROSS RENTAL INCOME -SHOPPING CENTERS 924.1 903.0   796.7 773.9
Other retail properties 19.1 21.4   19.1 21.4
TOTAL
GROSS RENTAL INCOME 943.2 924.4   815.8 795.3
Management, administrative and related income (fees) 62.5 61.5   59.9 58.7
TOTAL REVENUES 1,005.7 985.9   875.7 854.0
Equity Accounted Investees* 62.7 65.1   60.0 62.3

* Contributions from Equity Accounted Investees include investments in jointly controlled companies and investments in companies under significant influence.

**QUARTERLY NET RENTAL INCOME ON A TOTAL-SHARE BASIS**

  2018   2017
In € millions Q3 Q2 Q1   Q4 Q3 Q2 Q1
France 99.0 99.1 93.4   93.3 97.2 98.1 89.5
Belgium 4.8 4.3 4.4   4.9 4.0 4.2 3.7
France-Belgium 103.9 103.4 97.8   98.1 101.2 102.3 93.2
Italy 52.2 51.6 44.5   51.0 50.6 50.8 42.7
Norway 15.7 16.4 16.0   15.7 16.3 16.3 17.1
Sweden 13.5 13.9 13.4   13.9 14.0 14.0 14.2
Denmark 12.8 13.2 12.4   13.3 12.5 12.5 12.8
Scandinavia 42.0 43.5 41.7   42.9 42.8 42.8 44.1
Spain 25.4 24.8 24.9   23.5 24.7 21.7 19.7
Portugal 6.0 5.2 5.5   4.9 5.5 4.9 5.1
Iberia 31.4 30.0 30.4   28.4 30.2 26.6 24.8
Poland 8.1 7.8 8.0   7.8 8.0 7.7 8.0
Hungary 5.9 5.8 5.8   5.7 5.4 4.8 5.3
Czech Republic 8.3 8.1 8.0   7.7 7.7 7.4 7.5
Turkey 3.8 5.7 5.2   7.1 7.4 7.3 6.9
Others 0.6 0.8 0.7   0.9 0.2 0.6 0.6
CEE and Turkey 26.7 28.2 27.8   29.1 28.7 27.7 28.3
The Netherlands 15.0 14.6 9.5   13.2 13.4 13.2 9.5
Germany 10.3 9.9 9.3   10.5 11.3 11.8 9.3
GROSS RENTAL INCOME
SHOPPING CENTERS 281.5 281.3 261.0   273.3 278.2 275.2 251.9
Other retail properties 6.2 6.1 6.1   6.5 6.2 7.2 7.1
TOTAL
GROSS RENTAL INCOME 287.6 287.3 267.1   279.8 284.4 282.4 259.0
Management, administrative and related income (fees) 20.7 20.3 21.5   24.1 18.6 22.7 20.2
TOTAL REVENUES 308.3 307.6 288.6   303.9 303.0 305.1 279.2**AGENDA** ** **
**February 6, 2019** 2018 full-year earnings
**InvesTor relations contacts** **media contacts**
**Hubert d'AILLIÈRES**
 +33 (0)1 40 67 51 37 - hubert.daillieres@klepierre.com
**Mengxing ZHANG**
 +33 (0)1 40 67 53 05 - mengxing.zhang@klepierre.com
**Paul LOGEROT**
 +33 (0)1 40 67 53 02 - paul.logerot@klepierre.com **Lorie LICHTLEN / Camille PETIT / Stéphanie LASNEL **Burson Cohen & Wolfe
 +33 (0)1 56 03 12 12 - klepierre.media@bm.com

**ABOUT KLÉPIERRE**

Klépierre, the pan-European leader in shopping malls, combines development, property and asset management skills. The company's portfolio is valued at €24.6 billion at June 30, 2018 and comprises large shopping centers in 16 countries in Continental Europe which together host 1.1 billion visitors per year. Klépierre holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager. Klépierre is a French REIT (SIIC) listed on Euronext Paris and included in the CAC Next 20, EPRA Euro Zone and GPR 250 indexes. It is also included in ethical indexes, such as DJSI World and Europe, FTSE4Good, STOXX® Global ESG Leaders, Euronext Vigeo France 20 and World 120, and figures in CDP's "A-list". These distinctions underscore the Group's commitment to a proactive sustainable development policy and its global leadership in the fight against climate change.
For more information, please visit the newsroom on our website: www.klepierre.com  

This press release is available on the Klépierre website: *www.klepierre.com*
([1]) The figures disclosed in this press release have not been audited.

([2]) Like-for-like excludes the contribution of new spaces (acquisitions, greenfield projects and extensions), spaces being restructured, disposals completed in 2017 & 2018, and foreign exchange impacts.

([3]) Like-for-like change is on a same-center basis and excludes the impact of asset sales, acquisitions and foreign exchange fluctuations.

([4]) Footfall increase after completion of the refurbishment June / August 2018 vs. 2017.

([5]) Estimated cost as of June 30, 2018 including fitting-out (when applicable) and excluding step-up rents (when applicable), internal development fees, and financial costs.

([6]) Targeted yield-on-cost as of June 30, 2018, based on targeted NRI with full occupancy and excluding all lease incentives (when applicable), divided by the estimated cost price as defined above.

([7]) Total Share basis, excluding transfer taxes. Including €535 million of assets sold and €39 million of sales under promissory agreement.

*Attachment*

· PR_KLEPIERRE_2018_Q3_REVENUES_UK_FINAL.pdf Reported by GlobeNewswire 6 hours ago.

*Third quarter 2018 revenue*

*A very solid Q3*

Revenue: € 411 million
Up +6.3% organically

*Update on SIX Payment Services acquisition:*
*Combined General Meeting of Shareholders convened*
*for November 30, 2018*
"Day-1 Readiness" pre-integration program well on track

*All 2018 objectives confirmed*

*Bezons, October 22^nd, 2018* - Worldline [Euronext: WLN], European leader in the payments and transactional services industry, today announced its revenue for the third quarter of 2018.

*Gilles Grapinet, Worldline CEO* said:

"Worldline reports today a very solid third quarter. Organic revenue growth reached +6.3%, perfectly in line with the target set for the full year, benefitting from the dynamism of our sales activity and the market success of our key innovative offerings.

Regarding the strategic acquisition of SIX Payment Services, I am particularly happy to announce that our Board of Directors decided to convene a Combined General Meeting of Shareholders to approve the proposed merger on November 30, 2018, which is approximately one month ahead of the calendar that was initially contemplated thanks to the exemplary cooperation between the two companies, notably for the necessary regulatory approvals.

While a strong priority is currently given to the successful completion of this acquisition and the intense preparation of the integration, Worldline keeps monitoring as usual all potential value creative acquisition opportunities in the medium term in Europe."

For the analysis of the Group's performance, revenue for the third quarter of 2018 (and for the first nine months of 2018) is compared with revenue for the third quarter of 2017 (and the first nine months of 2017) at constant scope and exchange rates and restated for IFRS 15. Performance for the third quarter and for the first nine months of 2018, on a like-for-like basis compared with last year, was as follows:

*2018 third quarter and first nine months revenue*

    *Revenue Q3*
         
In € million   *Q3 2018* *Q3 2017** *% Organic Growth*
Merchant Services   142.4 136.0 +4.7%
Financial Services   188.5 175.5 +7.4%
Mobility & e-Transactional Services   79.8 75.0 +6.5%
*Worldline*   *410.7* *386.5* *+6.3%*

* At constant scope and Sept 2018 YTD average exchange rates, restated for IFRS 15

    *Revenue September YTD*
         
In € million   *Sep YTD 2018* *Sep YTD 2017** *% Organic Growth*
Merchant Services   429.8 411.3 +4.5%
Financial Services   560.2 521.9 +7.3%
Mobility & e-Transactional Services   239.4 227.3 +5.3%
*Worldline*   *1,229.3* *1,160.5* *+5.9%*

* At constant scope and Sept 2018 YTD average exchange rates, restated for IFRS 15

During the *third quarter of 2018*, Worldline's revenue reached *€ 410.7 million*, increasing by *+6.3%* organically compared with the third quarter of 2017, perfectly in line with the objectives set for the full year.

*Over the first nine months of 2018*, Worldline's revenue was *€ 1,229.3 million*, up *+5.9% *organically.

*Merchant Services*

*Merchant Services *revenue stood at *€ 142.4 million* during the third quarter of 2018, growing organically by €+6.4 million or *+4.7% *at constant scope and exchange rates.

· Growth in Merchant Payment Services was fuelled by Commercial Acquiring, which benefitted from a positive product mix. In India, business trends were strong with increasing volumes. Also, transaction numbers grew fast in the Netherlands, in Germany and in the Czech Republic.

This good performance of Commercial Acquiring was nonetheless partly offset by the temporary slowdown, as anticipated, of Payment Terminal Services, however less pronounced than in Q2 thanks to the successful commercial development of the new unattended payment terminal VALINA.

· Merchant Digital Services slightly grew, thanks to a higher Digital Retail activity in the United Kingdom.

Merchant Services revenue growth was *+4.5% *organically *over the first nine months of 2018*, reaching € 429.8 million.

*Financial Services*

Q3 2018 revenue for *Financial Services *reached *€ 188.5 million*, up *+7.4% *organically (€+13.0 million).

· Revenue in Issuing Processing grew, driven by an increased volume of card transactions as well as a strong increase in authentication services;
· Accounts Payments was also particularly dynamic during the period, benefitting from good SEPA payment transaction volumes, strong transaction growth on the Dutch iDeal scheme (+39%), as well as from robust project and non-recurring activities for Instant Payments and SWIFT payments;
· Acquiring Processing revenue grew, thanks to more authorization volume and projects; and
· Digital Banking was roughly stable during the quarter, with the start of the delivery of new digital banking wins in France and contracts related to Access to Account (PSD2).

       
*Over the first nine months of 2018*, revenue for Financial Services was € 560.2 million, up *+7.3% organically*.

*Mobility & e-Transactional Services*

Revenue in *Mobility & e-Transactional Services *was *€ 79.8 million*, increasing by *+6.5%* or €+4.9 million.

· Trusted Digitization grew high single digit, benefitting from:

· A good activity in France with various government agencies;
· Deployment of Worldline Track & Trace solutions in the context of the implementation of the EU Tobacco Product Directive to secure the proper tax payments in the various member states; and
· Favorable business trends in particular in healthcare transactional services;

· Strong sales were recorded in e-Consumer & Mobility thanks notably to implementations of Worldline digital omni-channel consumer engagement platform "Contact" for large French banks; and

· Revenue growth in e-Ticketing was positive thanks to the ramp up of Worldline Tap2Use contracts in France and good business trends in Latin America, still partly offset by lower project revenue in the United Kingdom.

*Over the first nine months of 2018*, revenue for Mobility & e-Transactional Services was € 239.4 million, *+5.3%* compared with the similar period last year. 
   

*Third quarter 2018 commercial activity and key achievements*

*Merchant Services*

*In online payment*, commercial developments with Digital River World Payments acquired end of 2017 are materializing fast, in particular in the travel industry. New contracts were signed with FASTBOOKING, a centralized hotel booking engine for 4,500 hotels in 90 countries, and with HotelsPro, a hotel booking engine with offices in 40 countries. Notably, Worldline will provide for these clients an end-to-end online payment solution with maximum payment methods and like for like settlement currencies, enabling a reduction of chargebacks and transaction costs.

*Business in India* remains strong and as of September 30, 2018, Worldline India manages close to 1.4 million payment acceptance points. An important contract was renewed with Axis Bank for a period of four years.

Last, significant orders have been received for the newly launched *VALINA* unattended payment terminal, in particular in the United Kingdom with SV365 Technologies.

*Financial Services*

Commercial activity in Financial Services has been dynamic, particular with the confirmation of the market appetite for strong authentication solutions, with 4 new clients in France, Germany and Luxemburg having chosen *Worldline Trusted Authentication* services.

Bank's demand for *PSD2 compliant access to account platforms* is increasing. To date, Worldline Digital Banking Platform has been sold to 16 European banks.

Regarding *Instant Payments*, Banco BPM has selected Worldline's CRISTAL software for the implementation of its Instant Payments platform and equensWorldline will process the Instant Payments back-office transactions of the Dutch bank KNAB. In total, 18 contracts related to Instant Payments have been signed, including 8 new contracts during Q3 2018.

*Mobility & e-Transactional Services*

Regarding *eConsumer & Mobility*, Worldline omni-channel consumer engagement "Contact" platform continues to sell remarkably well, notably winning new contracts in Great Britain with an insurance company and in France with a new major bank to provide a multi-channel solution with artificial intelligence, semantic analysis, biometry and legal archiving.

In *e-Ticketing*, Worldline will provide its Mobile point-of-sale system "@Station" to a large UK rail franchise. @Station will be used by station staff on and around the concourse to sell tickets and to resolve faster customer queries, improving customer satisfaction. Also, following the very fast start of the service with the tramway lines, Keolis Dijon Mobilités has agreed with Worldline on the extension of Tap2Use, Worldline Open Payment solution for public transport network, for the metropolis main bus lines.

Lastly, in *Trusted Digitization*, the Worldline Track & Trace solution has reinforced its position in the rollout of European Tobacco Product Directive by signing new contracts.

*2018 e-Payments challenge*

In September, Worldline organized its 2018 e-Payments Challenge, associating for the first time an international selection of 15 Fintechs and 7 of Worldline most prominent clients, in order to co-invent solutions to meet concrete business needs. All innovative solutions developed combine Fintech expertise and Worldline's portfolio of innovative offerings through open APIs.

Seven Fintechs were distinguished for their solutions and there were two ultimate Grand Prix winners: CopSonic for its ultra-sound based payment solution and iBilly for a payment technology based on facial recognition.

For more information, please refer to the press release available on worldline.com.

*Backlog & weighted pipeline of commercial opportunities*

*Backlog* remained high at *€ 2.6 billion.*

The weighted pipeline of commercial opportunities remains healthy, with notably a +70% year-on-year increase in value.

*Update on SIX Payment Services strategic acquisition*

 
   

*Day 1 Readiness program well on track*

The Board of Directors of Worldline today convened an Combined General Meeting of Shareholders in order for the shareholders to be proposed to approve on November 30, 2018 the merger with SIX Payment Services.

Regarding pre-integration activities between Worldline and SIX Payment Services, 22 integration preparation streams have been launched using Worldline's integration know-how and methods, tightly monitored to ensure without any delay « Day 1 Readiness » at closing.

 
   *2018 Objectives fully confirmed*

Worldline confirms all the objectives for 2018 as stated in the February 20, 2018 press release.

*Revenue: *The Group expects to achieve an organic growth of its revenue, at constant scope and exchange rates, of *between 5% and 7%*.

*OMDA (Operating Margin before Depreciation and Amortization): *The Group targets an OMDA margin *between 22% and 23%.*

*Free cash flow: *The Group has the ambition to generate a free cash flow of between *€ 200 million and € 210 million.*

As a reminder, these 2018 objectives do not include any impact from SIX Payment Services. This impact will be communicated at a later stage.

*Appendix: *

*Reconciliation of Q3 2017 statutory revenue to Q3 2017 revenue at constant scope and exchange rates*

For the analysis of the Group's performance, revenue for Q3 2018 is compared with Q3 2017 revenue at constant scope and foreign exchange rates and restated from IFRS 15 impacts.

Reconciliation between the Q3 2017 reported revenue and the Q3 2017 revenue at constant scope and foreign exchange rates and restated for IFRS 15 impacts are presented below (per Global Business Lines):

    *Revenue*
               
In € million   *Q3 2017* *IFRS 15* *Internal transfers* *Scope effects* *Exchange rates effects* *Q3 2017**
Merchant Services   128.5 -0.1 -0.4 +9.8 -1.7 136.0
Financial Services   171.0 -3.4   +7.7 +0.3 175.5
Mobility & e-Transactional Services   86.2 -8.0 +0.4 +0.0 -3.6 75.0
*Worldline*   *385.6* *-11.6* *  -  * *+17.5* *-5.1* *386.5*

* At constant scope and Sept 2018 YTD average exchange rates, restated for IFRS 15

IFRS 15 accounting standard "Revenue from contracts with customers" is applicable from January 1, 2018 onwards and its impact on the Q3 2017 revenue is -3.0%.

Internal transfers correspond to transfer and refocus of some contracts between Merchant Services and Mobility & e-Transactional Services.

Scope effects correspond to:

· In Merchant Services: addition of Q3 2017 revenue of MRL Posnet and Digital River World Payments;
· In Financial Services: addition of Q3 2017 revenue of First data Baltics and Diamis.

Exchange rate effects correspond mainly to the depreciation of the Argentinian Peso and of the Indian Rupee versus the Euro.

The 2017 figures presented in this document are based on the constant scope and foreign exchange rates data and restated from IFRS 15 impacts.

*Reconciliation of September 2017 year-to-date statutory revenue to 2017 year-to-date revenue at constant scope and exchange rates*

    *Revenue*
               
In € million   *Sep YTD 2017* *IFRS 15* *Internal transfers* *Scope effects* *Exchange rates effects* *Sep YTD 2017**
Merchant Services   389.3 -0.6 -1.3 +29.9 -5.8 411.3
Financial Services   516.1 -7.8   +14.3 -0.7 521.9
Mobility & e-Transactional Services   258.3 -20.8 +1.3 +0.0 -11.6 227.3
*Worldline*   *1,163.7* *-29.2* *  -  * *+44.2* *-18.2* *1,160.5*

* At constant scope and Sept 2018 YTD average exchange rates, restated for IFRS 15

IFRS 15 accounting standard "Revenue from contracts with customers" is applicable from January 1, 2018 onwards and its impact on the September YTD 2017 revenue is -2.5%.

Internal transfers correspond to transfer and refocus of some contracts between Merchant Services and Mobility & e-Transactional Services.

Scope effects correspond to:

· In Merchant Services: addition of September YTD 2017 revenue of MRL Posnet and Digital River World Payments, deduction of Q1 2017 revenue from Paysquare Belgium;
· In Financial Services: addition of September YTD 2017 revenue of First data Baltics and Diamis, and deduction of H1 2017 revenue from Cheque Service.

Exchange rate effects correspond mainly to the depreciation of the Argentinian Peso and of Asian currencies (mostly the Indian Rupee) versus the euro.

 
   *Conference call*

Worldline's CEO Gilles Grapinet, along with Deputy CEO Marc-Henri Desportes and Chief Financial Officer Eric Heurtaux, will comment on the Group revenue for the third quarter of 2018 on Monday, October 22, 2018 at 6:15pm (CET- Paris).

You can join the webcast of the conference:
- at worldline.com, in the Investors section
- by smartphones or tablets through the scan of :

Webcast direct link: https://edge.media-server.com/m6/p/qzbatu93

- by telephone with the following dial-in:

*United Kingdom: *  +44 (0)330 336 9105  
*United States of America: *  +1 929-477-0402  
*France: *  +33 (0)1 76 77 22 74  
*Germany: *  +49 (0)69 2222 25574  
* *

*Code:* * *

*2947751*  

After the conference, a replay of the webcast will be available at worldline.com, in the Investors section.

 
   *Forthcoming events*

November 30, 2018  Combined General Meeting of Shareholders
February 20, 2019    Full year 2018 results
April 24, 2019          First quarter 2019 revenue
May 23, 2019           Shareholder's Annual General Meeting

 
   *Contacts*

*Worldline Investor Relations Contact*
*David Pierre-Kahn*
Email: David.pierre-kahn@worldline.com

*Worldline Communication Contact*
*Sandrine van der Ghinst*
*Email: *sandrine.vanderghinst@worldline.com

 
   

*About* *Worldline *

Worldline [Euronext: WLN] is the European leader in the payments and transactional services industry. Worldline delivers new-generation services, enabling its customers to offer smooth and innovative solutions to the end consumer. Key actor for B2B2C industries, with nearly 45 years of experience, Worldline supports and contributes to the success of all businesses and administrative services in a perpetually evolving market. Worldline offers a unique and flexible business model built around a global and growing portfolio, thus enabling end-to-end support. Worldline activities are organized around three axes: Merchant Services, Mobility & e-Transactional Services and Financial Services including equensWorldline. Worldline employs more than 9,400 people worldwide, with estimated revenue of € 1.6 billion in 2017. Worldline is an Atos company. worldline.com 
   

*Disclaimer*

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors behaviors. Any forward-looking statements made in this document are statements about Worldline' beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Worldline' plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2017 Registration Document filed with the Autorité des Marchés Financiers (AMF) on March 21, 2018 under the filling number: D.18-0163, and its update filed with the AMF on August 1, 2018 under the registration number: D.18-0163-A01. Worldline does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.

Revenue organic growth and OMDA are presented at constant scope and exchange rates, and restated for the impacts of IFRS 15. 2018 objectives have been considered with exchange rates as of December 31, 2017.

Global Business Lines include Merchant Services (in Argentina, Belgium, Brazil, Czech republic, France, Germany, India, Luxembourg, Malaysia, Poland, Spain, Sweden, The Netherlands, United Kingdom, USA), Financial Services (in Belgium, China, Estonia, Finland, France, Germany, Hong Kong, Indonesia, Italy, Latvia, Lithuania, Luxembourg, Malaysia, Singapore, Spain, Taiwan, The Netherlands and the United Kingdom.), and Mobility & e-Transactional Services (in Argentina, Austria, Belgium, Chile, China, France, Germany, Spain, The Netherlands and United Kingdom).

This document does not contain or constitute an offer of Worldline's shares for sale or an invitation or inducement to invest in Worldline's shares in France, the United States of America or any other jurisdiction.

 
   

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*Attachment*

· Worldline - Q3 2018 revenue - Press release.pdf Reported by GlobeNewswire 6 hours ago.

The stop motion animation will be set in Italy in the 1930s, during the rise of fascism Reported by Independent 5 hours ago.

Eurogroup head Mario Centeno said on Monday the latest messages from Rome and the European Commission over Italy's 2019 budget are "very positive" and he expects agreement to be reached on the blueprint. Reported by Reuters India 5 hours ago.

European shares fell at the end of a choppy trading session on Monday, as relief over Moody's decision to keep Italy's sovereign rating outlook stable proved short lived and the focus turned to Europe's response to Rome's budget plans. Reported by Reuters India 5 hours ago.

· *US Dollar Index surges above 96 in the NA session.*
· *Wall Street fails to stay in **green**, weighs on risk-sensitive currencies.*

The NZD/USD pair came under a renewed selling pressure in the second half of the day as the greenback continued to gather strength. After spending the majority of the day in a relatively tight range below the 0.66 handle, the pair touched a fresh daily low in the last hour at 0.6544 and was last seen trading at 0.6550, where it was down 0.67% on a daily basis.

In the absence of significant macroeconomic data releases, investors stayed focused on the ongoing political concerns surrounding Italy's budget crisis and the uncertainty around Brexit negotiations to ramp up the demand for the greenback. After ending the previous week on a negative note, the US Dollar Index gained traction and rose above the 96 handle to reflect a broadly stronger dollar. The DXY, which touched a session top of 96.10, was up 0.4% on the day as of writing at 96.02. 

Additionally, following a positive start to the day, major equity indexes in the U.S. reversed their direction and slipped into the negative territory to further weigh on risk-sensitive currencies such as the kiwi. At the moment, the S&P 500 and the DJIA are losing 0.2% and 0.55%, respectively. 

Later in the week, the Statistics New Zealand will publish the September trade balance data. There are no other data releases this week from New Zealand that could impact the NZD's market valuation.

*Technical levels to consider*

The pair could face the first technical support at 0.6535 (Oct. 19 low) ahead of 0.6470 (Oct. 4 low) and 0.6430 (Oct. 5 low). On the upside, resistances align at 0.6580 (50-DMA), 0.6610 (Oct. 2 high) and 0.6655 (100-DMA). Reported by FXstreet.com 4 hours ago.

Leonardo Bonucci has revealed he declined the opportunity to sign for both Manchester City and Manchester United in order to be at Juventus. The Italy international left the Old Lady in 2017 to play for AC Milan, but decided to move back to his former side after just one season. However, Jose Mourinho also made […] Reported by talkSPORT 4 hours ago.

"According to Italy’s central bank, the available cyclical indicators suggested that GDP growth slowed down to 0.1% qoq in Q3, down from 0.2% in Q2, mainly reflecting ongoing weakness in the industrial sector," note ABN AMRO economists Aline Schuiling and Bill Diviney.

*Key quotes*

"This slowdown in growth means that the risks surrounding Italy’s government finances have increased, as the government’s targets for the budget balance and debt ratio largely depend on a very favourable economic scenario."

"In its Economic Bulletin Banca d’Italia does not comment directly on the government’s 2019 Budget, but it regularly refers to the negative consequences of the tensions that have been building up in financial markets since the new government took office and presented its expansionary fiscal policy plans. For instance, it mentions that purchases of Italian portfolio securities by foreign investors in the early part of the year were followed by net sales between May and August. Indeed, during the period January-April foreign investors purchased EUR 42bn of Italy’s government bonds and subsequently sold EUR 67bn during May-August."

"The decline in holdings of Italian government debt by foreign investors went hand in hand with extra purchases by Italian banks, which raised their holdings of government debt by almost EUR 47bn during May-July. Also, the central bank’s report mentions that tensions in financial markets were reflected in the risk premium on bank bonds and a decline in bank share prices, and that the interest rate on new bank loans to companies rose slightly. On top of that, the Banca d’Italia’s quarterly Survey on Inflation and Growth Expectations (also published on 15 October) reveals that Italian companies have scaled down their investment plans since the start of the year, while their assessment of the conditions for investment has deteriorated. This implies that the weakness in economic growth could well last beyond Q3. Indeed, we expect growth of a little under 1% in 2019 – with risks to the downside – which is well below the government’s optimistic assumption of 1.5%. (Aline Schuiling)." Reported by FXstreet.com 4 hours ago.