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 |  Subject: ADVFN Morning Euro Markets Bulletin - June 29th 2010 Tue Jun 29, 2010 11:07 am | |
| By ADVFN.comADVFN offer FREE streaming stocks and shares data form around the world. SEE| London Markets Report : |
Footsie slides lower
Market Movers
FTSE 100 4,989.09 -1.63%
techMARK 1,591.42 -0.94%
FTSE 250 9,504.92 -1.45%
London has followed US and Asian markets lower with only AstraZeneca in the blue at present. It was suggested as a possible takeover company for a US company by Standard & Poor's, along with BAE Systems and Balfour Beatty.
US companies clearly are interested in UK assets judging from Emerson's 375p per share or £1bn bid for Chloride this morning. It trumps an agreed 325p offer from ABB by 15%. ABB is considering its position.
Outsourcing specialist Serco remains on course to meet guidance given in May, although it gave no clue as to the possible impact of spending cuts announced in last week’s Budget. “We remain on track to deliver our financial guidance for 2010, which is for continued strong organic revenue growth and further progress this year towards our 2012 margin guidance,” it said in a statement.
Bus and train group National Express expects first half pre-tax profits to show good progress after trading was in line with forecasts through the second quarter. Revenue trends have been resilient, whilst progress on cost saving programmes and delivery of a stronger operational focus across the business has accelerated, it added.
Things are on the up at floor coverings retailer Carpetright though not the share price even though revenue and profits both improved last year. Total group revenue in the 52 weeks to 1 May 2010 rose 7.0% to £516.6m from £482.8m the year before. The inclusion of Sleepright for its first full year contributed 2.0% of this increase.
Asia focused oil explorer Salamander Energy has abandoned the Tom Su Lua-1X exploration well in the Vinh Chau Graben system, offshore southern Vietnam, as a dry hole.
Catlin plans to form a reinsurance company in Switzerland to expand the European-based reinsurance business underwritten by the Bermuda-based group. The group has applied to the Swiss Financial Market Supervisory Authority (FINMA) to establish Catlin Re Switzerland, to be headquartered in Zurich.
A weaker than expected flu season will mean first half underlying revenues at in vitro diagnostics firm Axis-Shield rising by just 2%. |
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| | UK Event Calendar for today |
INTERIMS
Porvair, Pursuit Dynamics, Terrace Hill, Travelzest
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
ABC Consumer Confidence (US) (22:00)
Business Climate Indicator (EU) (10:00)
Industrial Confidence (EU) (10:00)
Consumer Confidence (US) (15:00)
Consumer Confidence Indicator (EU) (10:00)
Consumer Confidence Indicator (FRA) (07:45)
Economic Sentiment Indicator (EU) (10:00)
PMI Retail (EU) (09:00)
PMI Retail (GER) (08:55)
Household Spending (JPN)
Jobless Rate (JPN)
Industrial Production (JPN)
FINALS
Assura Group, Carpetright, e-Therapeutics, Latham (James), Plastics Capital, Private and Commercial, ReNeuron, Scott Wilson
ANNUAL REPORT
Prologic
AGMS
Andes Energia, Archipelago Resources, BlackRock Absolute Return Strategies EUR Shares, BlackRock Absolute Return Strategies GBP Shares, BlackRock Absolute Return Strategies USD Shares, Caffyns, Caspian Holdings, Cattles, Cellcast, Chimei Innolux Corp GDR (Reg S), Comstar UTS GDR (Reg S), Crimson Tide, Horizonte Minerals, Investors Capital Trust 'A' Shares, iPoint-Media, JSC Polymetal GDR (Reg S), LiDCO, Longships, Pinewood-Shepperton, Platmin, Praesepe, Public Power GDR (Reg S), RAM Investment Group, Sistema-Hals GDR (Reg S), Somero Enterprises (Reg S), Takefuji Corp, Tdk, Tower Resources, Trans-Siberian Gold, Ultima Networks
TRADING ANNOUNCEMENTS
Arriva, National Express Group, Serco
UK ECONOMIC ANNOUNCEMENTS
BBA Mortgage Lending Figures (09:30)
Consumer Credit (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)
PMI Retail (09:30) |
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| | European Markets |
Shares fall sharply
Europe’s leading exchanges opened sharply lower, with no blue chips in positive territory in Frankfurt or Paris.
Across the markets, the Dax is 92 points lower at 6,065, with the Cac down 74 points at 3,502. The Swiss market has dropped 74 points to 6,237.
Shares in Siemens dropped despite the German conglomerate saying it expects continued strong profitability in the third quarter. New orders and sales in the third quarter will exceed the corresponding prior-year figures, it added.
"A recovery in the company's short-cycle businesses and strong demand in the emerging countries" will be driving these gains. Siemens yesterday announced plans to set up its own bank to expand its financial services unit's product portfolio. However, it won't provide retail banking services.
RWE dropped after Morgan Stanley downgraded the German utility to underweight from equal-weight.
On the M&A front, the battle for ownership of electrical plugs and peripherals maker Chloride burst into life as US giant Emerson trumped ABB's agreed offer with a bid worth 375p in cash or £1bn in total.
ABB is offering 325p per Chloride share meaning Emerson is pitching its new offer at a hefty 15% premium to its Swiss rival. As with ABB's offer, shareholders also get to keep the 3.3p final dividend.
CAC 40 - Fallers
ArcelorMittal SA (MT) € 23.49 -3.41%
Lafarge (LG) € 46.72 -2.58%
AXA (CS) € 13.11 -2.46%
Saint Gobain (SGO) € 31.90 -2.45%
Credit Agricole (ACA) € 8.85 -2.39%
Bouygues (EN) € 32.46 -2.33%
Renault (RNO) € 31.63 -2.21%
Vinci (DG) € 35.67 -2.10%
Technip (TEC) € 49.52 -2.10%
BNP Paribas (BNP) € 46.05 -2.03% |
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| | US Markets Report |
Rally fizzles out
US stocks closed lower as a rally after personal income data and the G20 summit fizzled out late in the day. Across the markets, the Dow fell 5 points to 10,138. Nasdaq dropped 2 at 2,220. The S&P 500 fell 2 points at 1,074.
Personal spending increased 0.2%, according to the Commerce Department. It was flat in April. Personal income rose 0.4% in May after climbing 0.4% in April. Leaders of the industrialised World left the latest G20 summit with a vow to halve government debt by 2013 and to force banks to hold significantly more capital.
Banks will have to hold enough capital to withstand another Lehman Brothers-style collapse without government aid, the meeting in Toronto decided. In a communiqué the G20 said, "The amount of capital will be significantly higher, and the quality of capital significantly improved, when the new rules are fully implemented. This will enable banks to withstand, without government support, stresses of the magnitude associated with the recent financial crisis."
The massive clean-up operation in the Gulf of Mexico continues and has now cost BP $2.65bn (£1.75bn) and the oil giant is stopping almost 23,000 barrels of oil from leaking into the sea. BP, which said last Friday that its bill for the disaster had risen to $2.35bn (£1.57bn) from $2bn (£1.4bn) on the Monday, has so far spent $128m settling 41,000 of 80,000 claims.
Tobacco companies Altria, Reynolds American and Lorillard are all higher as the US Supreme Court refuses to hear the US government’s appeal in its litigation against the tobacco industry.
The Supreme Court also ruled unconstitutional a long-standing ban on hand guns in Chicago boosting Smith & Wesson, while Sprint rose after the US president agreed to expand the amount of broadband spectrum available for smartphones.
S&P 500 - Risers
Tellabs Inc. (TLAB) $6.80 +6.72%
Sprint Nxtel Corp. (S) $4.46 +6.19%
H R Block Inc. (HRB) $16.25 +4.50%
Dr. Pepper Snapple Group Inc. (DPS) $38.07 +4.10%
Reynolds American (RAI) $53.45 +4.05%
S&P 500 - Fallers
Office Depot Inc. (ODP) $4.26 -6.99%
Range Res Corp. (RRC) $41.80 -4.54%
Wynn Resorts Ltd. (WYNN) $85.00 -4.54%
Denbury Resources Inc. (DNR) $15.65 -4.51%
CF Industries Holdings Inc. (CF) $64.58 -4.47%
Dow Jones I.A - Risers
Intel Corp. (INTC) $20.37 +1.68%
Coca-Cola Co. (KO) $51.08 +1.63%
Wal-Mart Stores Inc. (WMT) $49.57 +1.58%
Cisco Systems Inc. (CSCO) $22.51 +1.48%
International Business Machines Corp. (IBM) $128.98 +1.46%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $38.54 -2.28%
Boeing Co. (BA) $67.30 -2.14%
Home Depot Inc. (HD) $29.59 -2.02%
Alcoa Inc. (AA) $11.03 -1.78%
Kraft Foods Inc. (KFT) $28.94 -1.34% |
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| | Tuesday newspaper round-up: BP, AstraZeneca, Car industry |
Fresh tensions erupted between BP and the Kremlin last night after the British oil giant was forced to deny reports that Russia’s Deputy Prime Minister had suggested its chief executive was on the verge of resignation.
Just hours before Tony Hayward was due to meet Igor Sechin in Moscow for talks aimed at restoring confidence that BP remains financially viable despite its Gulf of Mexico spill, three news agencies reported that Mr Sechin had told reporters that Mr Hayward “is leaving his position and he will introduce his successor”, the Times reports.
Meanwhile, the FT reports BP has the most shorted bond among US investment grade corporate issuers, and, unusually, more of its bonds are being borrowed for shorting than its shares.
Drugs maker AstraZeneca, defence company BAE Systems and infrastructure group Balfour Beatty have been named by Standard & Poor's as potential takeover targets for cash-rich US companies. Analysts at the credit rating agency listed the three UK-listed companies among nine in Europe that most closely matched the characteristics of groups acquired by US corporates in the past 12 months. "Large US corporate cash balances, combined with currently low European and UK equity forward price-to-earnings ratios and the euro's 16% year-to-date fall against the US dollar, leave US corporations well positioned to pursue European target company acquisitions," S&P said, the Telegraph reports.
Tesla Motors has raised the number of shares it will sell in its initial public offering by 20%, an early sign that investor interest in the electric carmaker is strong. Tesla, the first American car company to go public since Ford in 1956, maintained the price range of the shares between $14 and $16. Based on the midpoint of $15 a share, the IPO could raise more than $200m (£132m). The final pricing of the shares is expected today and the stock is set to trade on the Nasdaq exchange on Tuesday under the symbol TSLA, the Times reports.
The Bank for International Settlements has warned authorities across the developed world that they cannot rely on ultra-low interest rates to cushion the blow of austerity measures. Both fiscal and monetary policy may have to be tightened at the same time and before recovery is entrenched, a chilling possibility for asset markets. "Macroeconomic support has its limits," said the bank's annual report. The Swiss-based "bank for central bankers" said ultra-low rates and massive fiscal stimulus saved the world from an economic meltdown during the credit crisis, but the balance of advantage has since shifted, the Telegraph reports.
Britain's mountain of debt could leave the country powerless to launch another rescue bid in the wake of a fresh financial crisis, the world's central bankers warned yesterday. Their "club" - the Bank of International Settlements - presented in its annual report a frightening picture of the impact of a second banking emergency on heavily indebted nations such as Britain, the Independent adds.
Spanish banks have been lobbying the European Central Bank to act to ease the systemic fallout from the expiry of a €442bn ($543bn) funding programme this week, accusing the ECB of "absurd" behaviour in not renewing the scheme. On Thursday, the clock runs out on the ECB financing programme - the largest amount ever lent in a single liquidity operation by the central bank - under the terms of the one-year special liquidity facility launched last summer, the FT reports.
Details of a new “green investment bank”, replacing several government quangos and with powers to raise billions from green Individual Saving Accounts and other financial instruments, will be unveiled on Tuesday. Putting the UK’s economy on a low-carbon footing will cost about £550bn by 2020, according to a commission set up to examine how a green investment bank could work, the FT reports.
Leaders of some of Britain’s biggest businesses last night gave their emphatic endorsement of the coalition Government’s decision to cut spending immediately in order to pay down the deficit. Senior business executives voiced their support for the approach at a summit organised by The Times and attended by the Prime Minister, the Chancellor and the Business Secretary.
Richard Lambert is to step down as Director-General of the CBI in the new year after five years as the voice of British business. Mr Lambert has chosen to leave because “we’ve got the election out of the way and we have now entered a new phase in the economy. It’s a fantastic job, but it is a six-days-a-week job. I haven’t read a novel for four years. I don’t know what I’m going to do next, but it felt like the right sort of time to step down.” Mr Lambert, 65, told The Times that he wanted to avoid a clash of departures given that Helen Alexander, the CBI’s president, reaches the end of her two-year tenure next summer.
The car industry in the UK can no longer rely on direct state support, the Business Secretary warned yesterday, adding that the sector was no longer facing the crisis that threatened to cripple it a year ago. Vince Cable used a visit to Burnaston, Derbyshire, where Toyota was launching its new hybrid car, the Auris, to warn that the Government would no longer provide blank cheques for the car industry, the Independent reports.
The new private equity owner of Liberty yesterday vowed to return the 135-year old London department store to profitability, as its chief executive quit. Marco Capello, the head of BlueGem Capital Partners, which has acquired Liberty's shares for £32m, said: "I would be very disappointed if Liberty was not profitable in the second half of this year, but definitely in 2011." Liberty made a reduced loss of £5.2m for the year to 31 December 2009, the Independent reports. |
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