ADVFN Morning Euro Markets Bulletin - March 24th 2011

By ADVFN.com
ADVFN offer FREE streaming stocks and shares data form around the world. SEE

London Market Reports
Retailers shine in dull market

Market Movers
FTSE 100 5,800.57 +0.08%
FTSE 250 11,464.59 +0.15%
techMARK 1,842.92 -0.44%

Retailers are in focus in London, providing some badly needed interest in a market that has been sleep-walking since the Chancellor of the Exchequer stood up to give his speech yesterday.

Next paraded a 9% rise in full-year profit to a new record, exactly what the City was expecting following guidance from the fashion retailer in January. Profit before tax increased to £551.4m in the 12 months to January, up from £505.3m in 2010, led by catalogue arm Next Directory where profits jumped 21% from £183.6m to £221.9m this time.

The shares move up, dragging Marks & Spencer along with them.

Do-it-yourself retailer Kingfisher built profits by 19% last year, pretty much in line with market expectations.

The B&Q owner made £671m in the year ended 29 January, up from £566m last time. The increase was 22.5% when adjusted for one-off items. Sales fell 0.5% to £10.45bn, in line, but rose 0.5% at constant currency. They dropped 0.9% on a like for like basis.

Tobacco group Imperial is running out of puff. Underlying first half tobacco net revenues are expected to increase by around 2%, as anticipated, but the group said the Spanish market remains challenging due to an increase in duty in December, the ban on smoking in public places and the continuing weakness of the Spanish economy.

The shares move down, taking sector peer BATs with them.

Oil firm Premier Oil notched up record revenue and profit in 2010 as oil and gas prices rocketed higher. Sales revenues in 2010 jumped to $763.6m from $621.1m in 2009, while profit before tax moved through the $100m barrier to $100.8m from $79.9m the year before, helped by a $38.6m gain on derivative financial instruments; in 2009, the company booked a $61.1m loss on derivatives.

Rail and bus operators have been rushing out statements celebrating being on the shortlists for the east and west coast UK rail franchises.

Stagecoach Group has welcomed the announcement by the Department for Transport that its joint venture group, Virgin Rail, has pre-qualified to bid for the new West Coast rail franchise, which is expected to start in April 2012. It will be in competition for the franchise with First Group.

Stagecoach is also in the running for the East Coast franchise, currently being run by National Express. It will be competing with Go-Ahead Group for this franchise.

United Utilities is still trading “slightly” ahead of management expectations, keeping the water utility on track for a “solid” underlying full-year result.

Telecoms group Cable & Wireless Worldwide is a big faller after its pre-close trade statement. The group said earnings before interest, tax, depreciation and amortisation this year is expected to be of a similar level to last year.

Irish medical devices manufacturer ClearStream Technologies is poorly even after it revealed half year revenues nearly doubled as it posted a net profit compared to a loss the same time a year earlier.


FTSE 100 - Risers
Kingfisher (KGF) 257.50p +5.62%
Next (NXT) 2,055.00p +4.58%
Marks & Spencer Group (MKS) 354.00p +2.46%
Fresnillo (FRES) 1,524.00p +2.14%
Xstrata (XTA) 1,448.00p +1.79%
Anglo American (AAL) 3,162.00p +1.44%
Randgold Resources Ltd. (RRS) 4,663.00p +1.06%
BP (BP.) 475.10p +1.03%
Rio Tinto (RIO) 4,168.50p +0.98%
Vedanta Resources (VED) 2,193.00p +0.83%

FTSE 100 - Fallers
Imperial Tobacco Group (IMT) 1,871.00p -2.65%
BT Group (BT.A) 176.90p -1.94%
Aviva (AV.) 426.90p -1.34%
Prudential (PRU) 719.50p -1.30%
British American Tobacco (BATS) 2,360.00p -1.07%
United Utilities Group (UU.) 574.00p -0.95%
WPP (WPP) 739.50p -0.74%
Vodafone Group (VOD) 173.35p -0.72%
Admiral Group (ADM) 1,569.00p -0.70%
Old Mutual (OML) 130.00p -0.69%

FTSE 250 - Risers
RPC Group (RPC) 271.10p +11.93%
JD Sports Fashion (JD.) 946.00p +4.70%
Go-Ahead Group (GOG) 1,394.00p +3.80%
Hochschild Mining (HOC) 646.50p +3.69%
Carpetright (CPR) 729.50p +2.67%
Savills (SVS) 372.80p +2.64%
Avis Europe (AVE) 195.00p +2.52%
Premier Oil (PMO) 1,956.00p +2.35%

FTSE 250 - Fallers
Cable & Wireless Worldwide (CW.) 56.85p -10.19%
Drax Group (DRX) 370.60p -5.51%
Paragon Group Of Companies (PAG) 172.10p -1.88%
EnQuest (ENQ) 135.50p -1.53%
Kier Group (KIE) 1,254.00p -1.26%
SDL (SDL) 662.00p -1.19%
Gem Diamonds Ltd. (DI) (GEMD) 276.40p -1.14%
Restaurant Group (RTN) 302.90p -1.14%


--------------------------------------------------------------------------------

Sippdeal
The UK's first online SIPP and a tax efficient, low-cost, award winning way to manage your pension fund. With online dealing fixed at £9.95, no establishment charge, no SIPP annual administration charge, no contribution charge and free transfers in – Sippdeal could be ideal for you. Click here


--------------------------------------------------------------------------------

UK Event Calendar
INTERIMS
ClearStream Technologies Group, Clinton Cards

QUARTERLY PAYMENT DATE
Virgin Media Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Consumer Prices Index (JPN)
Business Confidence Indicator (FRA)
Own Company Production Outlook (FRA) (07.45)
PMI Manufacturing Survey (GER) (08.30)
PMI Service Sector Survey (GER) (08.30)
PMI Manufacturing Sector Survey (EU) (08.30)
PMI Service Sector Survey (EU) (08.30)
PMI Composite Index (EU) (08:30)
Jobseekers Net Change (FRA) (17:00)

Continuing Claims (US) (12:30)
Durable Goods Orders (US) (12:30)
Initial Jobless Claims (US) (12:30)

GMS
Mcbride

FINALS
Abbey Protection, BrainJuicer Group, EG Solutions, Kingfisher, M&C Saatchi, Next, office2office, Premier Oil, PV Crystalox Solar, Resolution Ltd., Salamander Energy, ServicePower Technologies, Sopheon, Sportech, Ted Baker

ANNUAL REPORT
National Express Group

AGMS
Acuity Environmental VCT, Autonomy Corporation, Chemring Group, Independent Inv Trust

TRADING ANNOUNCEMENTS
Imperial Tobacco Group, United Utilities Group

UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)


--------------------------------------------------------------------------------

Self Trading? Time to make it a career…
Savi Trading is a leading proprietary trading company who support independent traders in their ambition to trade professionally
For career opportunities and development apply within. Click here


--------------------------------------------------------------------------------

European Market Reports
Bourses mixed but Portgual advances

Europe’s leading bourses are mixed, with Portugal one of those on the rise following the resignation of the country’s Prime Minister, Jose Socrates, after his austerity budget was rejected by the Portuguese parliament.

The PSI 20 in Portugal is up 39 at 7,820 while next door in Spain the IBEX 35 index is down 55 at 10,582 after debt ratings agency Moody’s downgraded the debt of 30 Spanish banks. Banking giants BBVA and Santander escaped the downgrade treatment, however.

In Paris the CAC 40 is off 7 points at 3,906 but in Frankfurt the DAX is up 9 at 6,813.

Chemicals distributor Brenntag saw 2010 post-tax profit rise to €146.6m from €0.5m in 2009. Profit before tax leapt to €231.8m from €€47.1m the year before.

There is a fashion and clothing focus on the broker notes this morning with Morgan Stanley upgrading Inditex, owner of the Zara fashion chain, to “overweight” from “equal weight” after strong results yesterday, while designer label outfit Hugo Boss is given a “buy” rating by BofA Merrill Lynch, which has just initiated coverage on the German firm.

CAC 40 - Risers
EADS (EAD) € 20.15 +1.56%
ST Microelectronics (STM) € 8.67 +1.44%
Alstom (ALO) € 41.62 +0.70%
ArcelorMittal SA (MT) € 25.25 +0.68%
LVMH (MC) € 108.80 +0.55%
Technip (TEC) € 72.17 +0.50%
Accor (AC) € 30.91 +0.44%
Vallourec (VK) € 75.01 +0.36%
Cap Gemini (CAP) € 40.65 +0.33%
Lafarge (LG) € 42.72 +0.29%

CAC 40 - Fallers
Renault (RNO) € 37.10 -1.87%
Societe Generale (GLE) € 47.31 -1.42%
AXA (CS) € 14.40 -0.89%
Alcatel-Lucent (ALU) € 3.61 -0.88%
Credit Agricole (ACA) € 11.72 -0.80%
Natixis SA (KN) € 4.08 -0.75%
Suez Environnement Company (SEV) € 14.31 -0.69%
Peugeot (UG) € 26.67 -0.56%
Unibail-Rodamco (UL) € 149.05 -0.53%
BNP Paribas (BNP) € 52.31 -0.48%


--------------------------------------------------------------------------------

Learn Expert Strategies for Pulling Profits from the Markets
Don’t miss out on The London Traders Expo on April 8-9, 2011 at the Queen Elizabeth II Conference Centre. This is the ultimate opportunity to meet face-to-face with industry leaders, test out the hottest products and software, and pick up trading ideas and strategies you can implement immediately to increase your percentage of profitable trades!

Visit The London Traders Expo online to register FREE. Click Here



--------------------------------------------------------------------------------

US Market Reports
Dow makes steady gains

US markets clawed back their early losses after concerns over Portugal and the Middle East sparked some early selling.

The Dow Jones industrial average closed up 67 points at 12,086 and the S&P Composite added 3 points at 1,297. The Nasdaq Composite rose 14 at 2,698.

Sales of new homes in the US fell to a seasonally adjusted annualised figure of 250,000, well below market expectations of 290,000 and the lowest figure since records began in 1963. The February number was down 16.9% on the preceding month and 28% lower than the figure for February 2010. There are hopes that the figures will be revised upwards.

Bank of America is the weakest Dow Jones constituent after its proposal to increase its dividend was turned down by the Federal Reserve.

Among S&P 500 constituents, software designer Adobe Systems is the weakest performer after the company’s results, released Tuesday, disappointed.

UBS has upgraded AOL from neutral to buy. Third-quarter earnings from electronics manufacturer Jabil Circuit beat expectations. General Mills’s fiscal third-quarter earnings rose 18%, though US sales were slightly lower.


--------------------------------------------------------------------------------

Potential returns of 300%
Buying UK land is proving a valuable strategy for many private investors.
For our free land prospectus click here


--------------------------------------------------------------------------------

Newspaper Round-up
Budget reaction

George Osborne used a £2 billion surprise windfall tax on oil companies to cut the price of petrol in a Budget that also tried to set out a plan for economic growth. The Chancellor, forced to unveil lower growth and higher borrowing forecasts, targeted his limited scope for manoeuvre at family budgets and the burdens on business, reports the Times.

"A Budget for making things, not making things up," the Chancellor said. To rebalance the economy away from debt-fuelled state spending and an unhealthy reliance on the City of London, to "a Britain carried aloft by the march of the workers". George Osborne pummelled his point home. The word "business" featured 37 times in his hour-long speech. "Big Society" managed just a single mention, noted the Telegraph.

Having done "rescue" last year, and with no cash in his red box to give away without squirrelling it back elsewhere, he turned to "reform" – unveiling measures to stimulate enterprise from grass roots apprenticeships through to cuts in corporation tax, the paper says.

George Osborne has ignored the warning lights flashing in the British economy delivering a Budget that stuck defiantly to his plan to cut public sector borrowing and fuel private sector growth. “Britain has a plan and we are sticking to it,” he said. In spite of rising inflation, lower short-term growth and higher medium-term borrowing, Mr Osborne said his plan to cut the deficit was on track and was essential for realising his ambition of turning Britain into Europe’s top business location, says the FT.

The squeeze on incomes from inflation and soaring petrol prices and looming government spending cuts are forcing seismic shifts in shoppers’ behaviour, Sainsbury’s warned yesterday. The supermarket group, which reported unexpectedly poor sales figures that fell well short of City expectations, said that growing economic uncertainty was piling pressure on families, writes the Times.

The Bank of England has warned that inflation is in danger of rocketing above 5pc in the coming months, piling more pressure on policymakers to raise interest rates. Its warning will ratchet up fears that inflation is spiralling out of control, fuelled by a step-change in the Bank’s position in less than a month, reports the Telegraph.

Lloyd Blankfein, chief executive of Goldman Sachs, said that a former board member at his bank violated bank confidentiality when talking to Raj Rajaratnam, the billionaire Galleon fund manager accused of insider trading. Prosecutors allege that Rajat Gupta, the former Goldman Sachs board member, relayed secret information about Goldman’s earnings and strategy, often just minutes after board meetings, to Mr Rajaratnam, who then traded on it, the FT reports.

The Craddock family of Lincat are more than £20 million richer after the Lincolnshire-based manufacturing company they bought for £7,000 more than three decades ago was sold to an American rival for £58 million cash. Middleby, the acquisitive US catering equipment manufacturer, will use Lincat to expand in Britain. The deal follows its failure three years ago to land Enodis, the fast-food kitchen maker that fell to its rival Manitowoc after a £900 million bid battle, the Times reports.

A Slovak businessman is set to make more than $500m (£306m) from the sale of his stake in Russia's eighth-largest bank, which is planning to list in London in the first half of this year. The $700m initial public offering of Nomos Bank is expected to see Roman Korbachka sell his entire holding for about $580m. The float, which Nomos hopes will raise $190m from the sale of new shares and is set to take place before summer, will value the bank at $3.5bn, according to a source close to the deal, reports the Telegraph.

Groupon, one of several internet companies that offers users money-off vouchers to spend at local businesses, is looking for a new No 2 executive to steer it through a US stock market flotation after parting ways with its existing chief operating officer. Rob Solomon, who was hired by Groupon just a year ago, is standing aside to allow it to recruit what he called "a nuts and bolts operator to make the trains run on time,” according to the Independent.