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 |  Subject: ADVFN Morning Euro Markets Bulletin April 12th 2010  Mon Apr 12, 2010 8:49 am | |
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| London Market Report |
Greece deal boosts Footsie
Market Movers
techMARK 1,671.84 +0.35%
FTSE 100 5,791.96 +0.36%
FTSE 250 10,501.04 +0.36%
London’s top stocks have made a good start to the new week on news that euro zone finance ministers have approved a €30bn emergency aid package for debt-stricken Greece.
Under the terms of the deal, Greece would receive the potential aid via a three-year loan with an interest rate of around 5%, well below commercial rates which currently stand at around 7.5%.
Banks are among the risers in early dealings with Royal Bank of Scotland, Lloyds Banking and Barclays in demand.
Barclays is backing a £300m refinancing that will lead to the sale of Liverpool FC, according to weekend press reports.
The Sunday Times writes that the bank is this weekend finalising a deal that will see it displace the club’s current lenders, provide additional funds to manager Rafa Benitez and name Martin Broughton of British Airways as chairman.
Elsewhere in the sector, UBS said Monday that it expects to swing to a first-quarter pre-tax profit of at least 2.5bn Swiss francs and that outflows from wealthy clients are slowing. The profit compares to a loss of around 1.5 billion francs a year earlier, the Swiss bank announced ahead of its shareholders’ meeting on Wednesday.
US aeroplane maker Boeing has warded UK defence and aerospace group Cobham a contract to supply in excess of 500 BRU-61/A carriage systems for Boeing’s Small Diameter Bomb (SDB) programme. Financial details of the contract were not divulged.
Business publisher United Business Media (UBM) has acquired DesignCon, the exhibition and conference serving the electronic design and semiconductor industry, for $1.3m from Professional Education International.
Ladbrokes, the bookmaking operation, is to sell its Italian retail betting and gaming business to an affiliate of Italian gaming firm Cogetech for around €5.25m in cash. Under the terms of the deal, Cogetech will also assume responsibility for about €18m of guarantees currently provided by Ladbrokes.
Hotel group Millennium & Copthorne (M&C) said its New Zealand subsidiary has run into trouble with its Chinese joint venture.
Online market research firm YouGov has taken a break from providing updates on the electorate’s voting intentions on the UK general election and released in line interim results.
Electrical component maker E2V, which is going through a restructuring process, said full-year revenue was around 14% below last year’s reported levels.
Video games maker Zoo Digital expects to report full year turnover and EBITDA significantly ahead of market expectations and the previous year.
FTSE 100 - Risers
Home Retail Group (HOME) 290.60p +3.64%
Sainsbury (J) (SBRY) 345.50p +2.10%
Sage Group (SGE) 253.70p +1.40%
Royal Bank of Scotland Group (RBS) 45.32p +1.39%
International Power (IPR) 335.20p +1.30%
Prudential (PRU) 580.50p +1.22%
Lloyds Banking Group (LLOY) 64.87p +1.22%
ICAP (IAP) 395.60p +1.10%
Royal Dutch Shell 'A' (RDSA) 1,985.00p +1.02%
Barclays (BARC) 360.15p +1.02%
FTSE 100 - Fallers
ARM Holdings (ARM) 240.30p -1.52%
Smiths Group (SMIN) 1,145.00p -0.87%
Antofagasta (ANTO) 1,053.00p -0.85%
Experian Group (EXPN) 632.00p -0.63%
Xstrata (XTA) 1,291.00p -0.62%
United Utilities Group (UU.) 568.50p -0.44%
Shire Plc (SHP) 1,443.00p -0.41%
British Airways (BAY) 247.30p -0.28%
Compass Group (CPG) 538.50p -0.28%
Intertek Group (ITRK) 1,497.00p -0.27% |
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| | UK Event Calendar for today |
Another relatively quiet week is in prospect on the company results front. In the retail sector Debenhams, JD Sports Fashion and Halfords are due to give trading updates, while elsewhere Experian, the credit checking firm, and Rio Tinto, the mining giant, are the other high profile firms due to make announcements.
Experian is expected to provide sales figures on Thursday relating to the second half of its fiscal year or, if you prefer, the six months to the end of March.
UBS is forecasting organic sales growth of 2% for the period, which suggests a pick-up in the fourth quarter after the company reported growth of just 1% for its third quarter. If that proves to be the case then UBS said it would represent “the first genuine improvement” in the growth rate since the fourth quarter of 2006.
Back in January the company itself seemed fairly confident of a solid fourth quarter. “For the fourth quarter, we expect modest improvement in organic revenue growth. For the year as a whole we remain on track to grow profits at constant currency and deliver strong free cash flow,’ said Don Robert, chief executive officer of Experian.
Shares in department store Debenhams have been on an upward surge since the beginning of March, a trend not harmed by the company's trading update in the middle of March in which it said it saw improving trends.
The firm said it had seen increased market share in menswear and childrenswear, though womenswear was affected by the move away from concessions.
‘We are pleased with our first half performance which shows continued progress in delivering our strategy,’ said chief executive Rob Templeman.
On the economic front the UK Trade figures are out on Tuesday and will doubtless provide plenty for campaigning politicians to get their teeth into. Despite the weakness of sterling, the visible trade balance is nowhere near as healthy as Prime Minister Gordon Brown would like and it is not expected to have improved much in February, with the market consensus going for a deficit of £7.3bn compared to a deficit of £7.98bn in January.
The non-EU trade deficit is forecast to narrow to £3.80bn from £4.83bn in January.
Monday April 12
INTERIMS
Carr's Milling Industries, YouGov
QUARTERLY PAYMENT DATE
Africa Opportunity Fund Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
BoJ Intrest Rates Minutes (JPN) (23:50)
Housing Starts (US) (13:30)
New Home Sales (AUS) (00:00)
Treasury Budget Statement (US) (19:00)
FINALS
Globaltrans Investment GDR (Reg S), Networkers International, Vernalis
ANNUAL REPORT
Fidelity Japanese Values
IMSS
XP Power
AGMS
Bank Audi SAL- Audi Saradar Group GDR (repr 1 Com Shr LBP12250)(Reg S), RGI International
TRADING ANNOUNCEMENTS
E2V Technologies
UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (11:00) |
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| | European, Currencies Market |
Markets lifted by Greece deal
News on Sunday that Euro zone finance ministers have approved a €30bn emergency aid package for debt-stricken Greece has put Europe’s markets in a positive frame of mind at the start of the week.
Under the terms of the deal, Greece would receive the potential aid via a three-year loan with an interest rate of around 5%, well below commercial rates which currently stand at around 7.5%.
Up to a further €15bn could be made available through the International Monetary Fund (IMF). Athens welcomed the agreement but stressed that it had not requested the plan be activated yet.
Across the markets, the Dax in Frankfurt is up 18 points to 6,267 and the Cac in Paris is 15 points higher at 4,066. The Swiss market has gained 47 points to 6,936.
Banks are on the rise after UBS said that it expects to swing to a first-quarter pre-tax profit of at least 2.5bn Swiss francs and that outflows from wealthy clients are slowing.
The profit compares to a loss of around 1.5 billion francs a year earlier, the Swiss bank announced ahead of its shareholders’ meeting on Wednesday. Net outflows continued in the quarter, but were ‘substantially lower’ than in the previous three months period, it added.
Commerzbank, Deutsche Bank, Societe Generale, BNP Paribas and Credit Agricole are all among the best performing stocks.
CAC 40 - Risers
Dexia (DEXB) € 4.48 +1.59%
L'Oreal (OR) € 81.07 +1.48%
Societe Generale (GLE) € 46.51 +1.35%
BNP Paribas (BNP) € 57.50 +1.32%
AXA (CS) € 17.22 +1.26%
Credit Agricole (ACA) € 13.45 +1.24%
Michelin (ML) € 52.85 +0.94%
Cap Gemini (CAP) € 36.75 +0.86%
PPR (PP) € 104.85 +0.82%
Accor (AC) € 44.51 +0.76%
CAC 40 - Fallers
Essilor International (EI) € 47.02 -1.01%
Vallourec (VK) € 154.85 -0.77%
Total (FP) € 44.28 -0.20%
Vinci (DG) € 44.72 -0.16%
Lagardere SCA (MMB) € 31.33 -0.13%
Vivendi (VIV) € 20.06 -0.05%
Veolia Environnement (VIE) € 26.17 -0.04% |
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| | US Market |
Dow in touching distance of 11,000
Mounting panic over the Greek debt problem was dissipated by reassuring comments from Greece's finance minister and the French President Nicolas Sarkozy, who said that a support plan for Greece had been agreed.
The news gave extra impetus to a market already buoyed by US wholesale inventories for February, which rose by 0.6%, higher than the 0.4% growth forecast. The previous month’s 0.1% decline was revised to a 0.1% increase.
The Dow Jones advanced 70 points to 10,997 having briefly broken through the psychologically important 11,000 level at one stage, while the broader based S&P 500 climbed 7 points to 1,194. The NASDAQ Composite rose 17 points to 2,454.
Chevron led the Dow higher after it said its oil refineries had swung back into the black. Exxon Mobil rose in sympathy. In contrast, aluminium producer Alcoa was the worst performer in the Dow after it was downgraded from ‘overweight’ to ‘neutral’ by JPMorgan Chase.
Zale, the third largest US jewellery chain, was another to suffer at the hands of the brokers after it was downgraded from ‘hold’ to ‘sell’ by Soleil Securities but satellite TV provider Dish Network was the top performing blue-chip on the NASDAQ exchange after UBS shifted its stance from ‘neutral’ to ‘buy’.
In other broker action retailer JC Penney was put on Goldman Sachs’s ‘conviction buy’ list while computer chipmaker Intel got a lift from Canaccord Adams, which upped its price target for the stock from $25 to $27 in the belief that the tech titan had benefited from stronger than anticipated demand for notebooks in the first quarter of 2010.
Bid speculation made the shares of Jacobs Engineering a hot property, after media reports suggested that the engineer is in the sights of private equity investors.
Takeover rumours also drove the share price of smartphone maker Palm higher for the second day in a row. Chinese laptop maker Lenovo had previously been suggested as a possible buyer for the company but the latest rumours speculate that mobile phone maker HTC may be interested in acquiring Palm. Taiwanese company HTC makes the Google Nexus, one of the smartphones that is making it hard for the Pre, the great hope for Palm, to make much headway in the market.
Pittsburgh-based gas producer Atlas Energy is forming a new joint venture with Indian energy company Reliance Industries. The joint venture will buy a stake in a large shale project. Reliance will pay $1.7bn for its stake in the joint venture.
Ambac was among the big risers after the bond insurer swung to a fourth-quarter net profit of $558.1m compared with a loss of $2.34bn a year earlier.
Winemaker Constellation Brands does not expect to make more than $1.68 a share in its current financial year, which is well down on market expectations.
S&P 500 - Risers
Jacobs Engineerng Group (JEC) $47.61 +7.52%
Abercrombie & Fitch (ANF) $49.98 +6.57%
Lexmark International Inc. (LXK) $37.32 +4.48%
Cabot Oil & Gas Corp. (COG) $39.96 +4.09%
Range Res Corp. (RRC) $50.28 +4.03%
S&P 500 - Fallers
Eastman Kodak Co (EK) $7.39 -3.65%
Alcoa Inc. (AA) $14.39 -3.23%
Humana Inc. (HUM) $45.13 -2.55%
Constellation Brd A (STZ) $16.43 -2.49%
United States Steel (X) $64.62 -2.48%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $79.49 +2.36%
AT&T Inc. (T) $26.44 +1.61%
Dow Jones I.A - Fallers
Alcoa Inc. (AA) $14.39 -3.23%
Wal-Mart Stores Inc. (WMT) $55.12 -0.47%
Nasdaq 100 - Risers
Dish Network Corp. (DISH) $21.80 +3.66%
Intuitive Surgical Inc. (ISRG) $350.62 +3.09%
News Corp. Class A (NWSA) $15.12 +2.84%
Nasdaq 100 - Fallers
Celgene Corp. (CELG) $61.81 -2.08%
Bed Bath & Beyond Inc. (BBBY) $45.57 -1.96%
Mattel Inc. (MAT) $23.15 -1.45% |
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| | Monday newspaper round-up |
RBS, Banks, Greece
Royal Bank of Scotland has said that it may extend its loans to Liverpool to help the club’s unpopular American owners to sell it. It emerged over the weekend that Tom Hicks and George Gillett Jr have abandoned plans to sell a minority stake to Rhône Capital, an American private-equity firm, instead appointing Barclays Capital to sell the club completely, says the Times.
The Telegraph added that Martin Broughton, the chairman of British Airways, has been parachuted in to help with the sale of Liverpool Football Club. The City grandee has been appointed chairman of the embattled club with the task of finding a buyer.
A Conservative government plans to rush through a competition inquiry into concentration in the British banking sector, paving the way for the possible initial sale of stakes in the state-owned banks next year, writes the FT.
Eurozone members have made a commitment to providing up to €30bn in loans to Greece over the next year to help stave off a debt crisis that has roiled financial markets and posed the most serious challenge to the euro in its history, reports the FT.
The Liberal Democrats would be willing to increase the takeover timetable of listed companies from 60 to 90 days in exchange for massive reform, according to the Independent.
US financial groups face high investor expectations for strong earnings growth in their first-quarter results in spite of subdued markets for equity trading and investment banking in the first three months of 2010, says the FT.
Barclays' investment banking arm has signed a deal that will allow retail investors better access to companies floating on the stock market. Barclays Capital has formed a joint venture with retail share-offering consultancy Solid Solutions Associates, writes the Independent.
A group of leading City bosses has attacked Labour's plans for a "Cadbury's Law" to protect UK companies from foreign takeovers as unworkable, costly and a threat to Britain's standing as a global financial centre. The City figures, which include fund managers that together control more than 6pc of companies listed on the London Stock Exchange, have told theTelegraph that the proposals, due to be unveiled today in Labour’s election manifesto, risk damaging industry, the economy and pension fund returns.
The Covent Garden Market Authority (CGMA), which runs the largest fresh-produce market in the UK, is understood to have called in advisers to help find a private-sector partner for the £1bn scheme to redevelop its 57-acre site, reports the Independent.
Members of one of Britain’s richest families have been found guilty of breaching charity law over donations of almost £1 million to the Conservative Party. The Weston family controls a string of businesses, from Primark to Fortnum & Mason, through a charitable trust, according to the Times.
The value of British exports rose just £28m year on year, or 0.05 per cent, in the final three months of 2009 despite "the competitiveness of sterling against other major currencies", says the Independent. |
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