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 |  Subject: ADVFN Morning Euro Markets Bulletin - July 5th 2010  Mon Jul 05, 2010 9:39 am | |
| By ADVFN.comADVFN offer FREE streaming stocks and shares data form around the world. SEE | London Markets Report : |
Slow start for Footsie
Early gains for Footsie have disappeared quickly in the face of a poor start for the miners and the absence later on of Wall Street, closed for Independence Day.
BP is one of the gainers on reports the governments of Kuwait, China and Singapore could inject funds under a £6bn plan designed to shore up the oil group's finances in the wake of the Gulf disaster. The cost of the clean-up has now exceeded $3bn.
Premier Oil has upgraded reserves estimates for Catcher and Catcher East to between 60mn barrels of oil (mmbls) and 100 mmbbls after striking oil again at the lucrative field in the UK Central North Sea.
Premier and other stakeholders in Catcher - Encore Oil (15%- operator), Nautical Petroleum (15%), Wintershall (UK North Sea) Limited (20%) and Agora Oil & Gas (15%) - are looking to buy “a number” of new site surveys over potential drilling locations in Block 28/9.
Investors in Falkland Oil and Gas hungry for news on the Toroa F61/5-1 exploration well will have to wait an extra week due to “minor operational issues and weather related downtime”.
Wickes owner Travis Perkins has got its name on BSS after the pair agreed a cash and share bid worth 436p per BSS Share and valuing the plumbing supplies firm at approximately £558m. The terms are in line with the initial approach from Travis in May.
Part-nationalised lender Lloyds Banking Group is selling a portfolio of 40 private equity investments in its Bank of Scotland Integrated Finance (BoSIF) unit to a newly formed joint venture for £332m in cash. The new joint venture, called Cavendish Square Partners, will be majority owned by private equity investor Coller Capital, with Lloyds Banking Group retaining a stake of around 30%.
Outsourcing specialist Serco has won a long term contract to provide and operate a new prison at Belmarsh West, London. This is the first prison contract to be awarded in the UK to an alliance of the private and voluntary sectors and is worth about £415m to Serco. Construction works will begin right away and the contract will run for 26½ years.
Mining giant Rio Tinto has sold the last two remaining parts of its Alcan Packaging business. Medical Flexibles, which comprises four North American plants, has been bought for $66m by Amcor, and completes Amcor’s acquisition of the Alcan Packaging global Pharmaceuticals, global Tobacco, Food Europe and Food Asia divisions.
Distribution and outsourcing group, Bunzl, has snapped up Belgian cleaning and hygiene consumables firm Etablissements Glorieux SA. The Belgian company, which trades at Global Net, is being acquired from the owners, Olivier and Luc Glorieux. Last year it turned over €19.6m.
Property developer St. Modwen Properties returned to the black at the interim stage and has resumed dividend payments. Net asset value (NAV) per share at the end of May had risen to 214p, a rise of 6.8% from the NAV at the end of November 2009.
R&D consultant Sagentia is trading so strongly it now expects its first half results not only to beat estimates but also to exceed the forecasts for the whole year. After a bumper set of full year figures last month, Aim-listed component distributor Elektron predicts its next set of interims will also be 'significantly ahead' of its expectations. |
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| | UK Event Calendar for today | Housebuilders and recruitment firms will be in the spotlight next week, with the likes of Persimmon, Bovis, Hays and Michael Page releasing trading updates.
Panmure Gordon said it will be “interested to hear whether Persimmon will echo Taylor Wimpey’s comments that sales have strengthened in recent weeks. This will give us a clearer picture on current market conditions.”
When it last updated the market, on 22 April, Persimmon said sales had remained consistent since the beginning of March and were running around 20% higher than a year earlier, in value terms. Volumes were up by around 11%.
Panmure Gordon thinks sales may have softened around the time of the general election. The broker is a fan of the stock and thinks the company could potentially announce write-backs that would add 60p to the net asset value per share once its gets “a clearer picture of market conditions and what direction it is moving in.”
Global recruitment firm Hays has been seeing progress in most of its markets, although the dynamics vary by region. Australia, which escaped recession, has seen improved trends and the picture is also getting brighter in other Asia-Pacific countries.
In Continental Europe & the Rest of the World, the group has seen strong growth in Brazil and the early signs of recovery in Germany, but Spain and the United Arab Emirates remained on a downward trend in the first four months of 2010.
This month’s meeting of the Monetary Policy Committee (MPC) to determine the Bank of England’s interest rate policy should be a bit more heated than recent meetings, with MPC members going public over the last week with their differences of opinion.
Hawkish MPC member Andrew Sentence voted last month for a rate hike and said publicly that the time had arrived for the gradual withdrawal of stimulus measures.
Fellow policymaker Adam Posen, however, said he doesn’t think a “small slow upwards creep in inflation expectations” is “worth panicking over”, and is definitely not a reason to tighten policy.
Another MPC member, Paul Fisher, also warned against hasty rate rises. "We need to be sensitive to the risk of tightening policy prematurely, stifling the nascent recovery," he said, suggesting high inflation may have been caused by a “series of shocks”, including the return of VAT to 17.5%, higher petrol prices and higher import prices.
Monday July 05
INTERIM DIVIDEND PAYMENT DATE
Renew Holdings
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
PMI Composite (EU) (09:00)
PMI Composite (GER) (08:55)
PMI Services (EU) (09:00)
PMI Services (GER) (08:55)
PMI Services (FRA) (08:50)
Retail Sales (EU) (10:00)
GMS
Marwyn Capital I Ltd. (DI), Trafficmaster
FINALS
Braveheart Investment Group, NCC Group, OPG Power Ventures
ANNUAL REPORT
Synergy Healthcare, Zoo Digital
EGMS
Central Rand Gold
AGMS
Big Yellow Group
TRADING ANNOUNCEMENTS
XP Power
UK ECONOMIC ANNOUNCEMENTS
Official Reserves (09:30)
PMI Composite (09:30)
PMI Services (09:30)
Bank of England Housing Equity Withdrawal (09:30)
FINAL DIVIDEND PAYMENT DATE
Amiad Filtration Systems, Balfour Beatty, China Biodiesel International, Cobham, First Derivatives, Quarto Group, Tarsus Group |
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| | European Markets Report |
Economic concerns persist
European shares are slightly lower, with only the German Dax posting a small gain, as worries about the global economic recovery persist.
Across the markets, the Dax in Frankfurt is 2 points higher at 5,837, while the Cac in Paris has dropped 16 points to 3,333. The Swiss market has fallen 12 points to 5,962.
Banks are among the fallers, with Credit Agricole, Societe Generale, BNP Paribas and Commerzbank all in the red.
BP said the cost of the response to the oil spill in the Gulf of Mexico is up to about $3.12bn from $2.65bn a week ago. Two containment systems continue to collect oil and gas flowing from the Deepwater Horizon's failed blow-out preventer (BOP) and transport them to vessels on the surface.
As at 3 July the total volume of oil collected or flared by the containment systems was about 585,400 barrels, up from 435,600 barrels a week ago. The amount of oil skimmed from the surface is up to around 673,497 barrels (23.5m gallons), up from 652,000 barrels a week earlier.
On the economic front, Markit’s final eurozone Services Purchasing Managers' Index fell to 55.5 in June, having reached a 33-month high in May.
CAC 40 - Risers
Carrefour (CA) € 32.58 +1.37%
ST Microelectronics (STM) € 6.40 +0.96%
EADS (EAD) € 15.94 +0.92%
Saint Gobain (SGO) € 30.25 +0.83%
Alcatel-Lucent (ALU) € 2.04 +0.69%
LVMH (MC) € 85.48 +0.66%
Suez Environnement Company (SEV) € 13.26 +0.65%
Michelin (ML) € 56.48 +0.55%
ArcelorMittal SA (MT) € 21.77 +0.51%
Lafarge (LG) € 41.17 +0.41%
CAC 40 - Fallers
Credit Agricole (ACA) € 8.19 -0.90%
Unibail-Rodamco (UL) € 128.15 -0.77%
AXA (CS) € 12.31 -0.73%
GDF Suez (GSZ) € 23.12 -0.64%
Air Liquide (AI) € 80.80 -0.64%
Technip (TEC) € 46.58 -0.62%
Pernod Ricard (RI) € 61.70 -0.61%
Societe Generale (GLE) € 32.70 -0.61%
Danone (BN) € 44.06 -0.60%
BNP Paribas (BNP) € 43.96 -0.55% |
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| | US Markets Report |
Dow makes new 2010 low
It looked like Wall Street would finish in the blue Friday following an afternoon rally, but the optimism was fleeting and an attack of nerves in the final half hour of trade left the market at a 2010 low.
Investors reacted badly to a weaker than expected jobs report. Non-farm payrolls fell by 125,000 in June compared with 431,000 jobs created in May – although that was boosted by temporary census jobs.
Private sector employers added 83,000 new staff, well below forecasts, though double the previous month’s 41,000, of which many were only temporary positions.
The unemployment rate fell to 9.5%, the lowest rate since July last year and down from 9.7% in May.
Few were willing to take on new positions ahead of the long Independence Day weekend just a day after a slew of disappointing economic data out of the States.
Across the markets, the Dow Jones fell 46 points to 9,686, the Nasdaq Composite lost 9 to end at 2,091, while the broader S&P 500 was off 4 at 1,022.
Just three blue chips - Microsoft, Coca-Cola and Johnson & Johnson - managed gains, while Verizon Communications led the fallers.
The telecoms giant has sold its local wireline business in 14 states to Frontier Communications. Frontier is paying with its own shares, which will be distributed to Verizon shareholders.
Rumours that French drug maker Sanofi-Aventis is looking to make a large acquisition pushed up US pharma groups. Botox company Allergan rose over 7% and and genetic disease treatments developer Genzyme was close behind.
Google late Thursday announced the $700m acquisition of ITA Software, whose search engine tools are used to power leading Web-based travel agencies like Chicago-based Orbitz Worldwide.
S&P 500 - Risers
Allergan Inc. (AGN) $62.29 +7.21%
Biogen Idec Inc. (BIIB) $49.41 +5.73%
Genzyme Corp. (GENZ) $52.69 +5.68%
Rowan Cos Inc. (RDC) $22.82 +5.21%
Juniper Networks Inc. (JNPR) $24.06 +4.61%
S&P 500 - Fallers
IntercontinentalExchange (ICE) $105.98 -5.90%
Prologis Sbi (PLD) $9.67 -5.20%
Frontier Communications Company (FTR) $7.30 -5.07%
Zions Bancorporation (ZION) $20.70 -4.74%
Verizon Communications Inc. (VZ) $26.81 -4.69%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $23.26 +0.43%
Coca-Cola Co. (KO) $50.05 +0.04%
Johnson & Johnson (JNJ) $59.08 +0.02%
Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $26.81 -4.69%
General Electric Co. (GE) $13.88 -1.70%
Bank Of America Corp. (BAC) $13.83 -1.36%
Caterpillar Inc. (CAT) $59.18 -1.32%
Du Pont E I De Nemours and Co. (DD) $34.06 -1.25%
Nasdaq 100 - Risers
Biogen Idec Inc. (BIIB) $49.41 +5.73%
Genzyme Corp. (GENZ) $52.69 +5.68%
Logitech International S.A. (LOGI) $13.79 +3.22%
Joy Global Inc. (JOYG) $51.29 +3.05%
First Solar Inc. (FSLR) $120.61 +2.69%
Nasdaq 100 - Fallers
Dish Network Corp. (DISH) $17.77 -3.89%
Sears Holdings Corp. (SHLD) $62.52 -3.44%
Liberty Media Corp. Interactive Class A (LINTA) $10.22 -2.57%
Apollo Group Inc. (APOL) $42.25 -2.51%
Expedia Inc. (EXPE) $18.52 -2.40% |
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Monday newspaper round-up: Sterling, BP, KKR
Financial betting against the pound has fallen significantly since the emergency Budget – with hedge funds and speculators closing their positions that anticipated further falls in the value of sterling.
In the seven days following the emergency Budget, the number of short positions in sterling fell from 62,267 to 52,397, according to data compiled by the US Commodity Futures Trading Commission. The number of long positions increased slightly over the same period from 15,921 to 17,626, reports the Telegraph.
The governments of Kuwait, China and Singapore could be tapped for funding under a £6bn plan designed to shore up BP’s finances in the wake of the disaster. The oil giant is said to be examining measures to bolster its balance sheet including issuing bonds, a conventional rights issue or accepting a cash injection from sovereign wealth funds in exchange for a slice of equity in the company, the Times reports.
The England football team is set to suffer another painful loss as Nationwide terminates its £20m sponsorship contract after 11 years. A spokesman for the building society, whose sponsorship deal with England expires at the end of the month, said that the group was "pleased" with the relationship that had "helped raise its profile with customers" but confirmed that the contract was "unlikely to be renewed", reports the Telegraph.
Kraft Foods has axed nearly three-quarters of Cadbury's staff who were covered by global contractual terms at the confectionery giant's head office, The Independent has learned. Of the 165 senior managers at the company's headquarters, just 45 have been found new jobs within the enlarged Kraft Foods business, which took over Cadbury in January for £11.7bn after a bitter takeover battle. The remaining 120 have all been made redundant by the company, whose global headquarters are in Chicago, Illinois.
Ministers have held confidential talks over changing union strike laws as the Government prepares plans to shed up to a million public sector jobs. Philip Hammond, the Transport Secretary, met Boris Johnson ten days ago to discuss the need for new curbs on industrial action supported by only a small proportion of the workforce. The Mayor of London was sounded out because of his experience in dealing with unions during two years in office, the Times reports.
Ministers are preparing emergency legislation to slash the redundancy terms for 500,000 civil servants, just ahead of tens of thousands of their posts being cut as the coalition government seeks to cut the UK’s deficit, the FT reports.
More than £1.5m of taxpayers’ money was spent on the collapsed trial of four British Airways executives accused of price-fixing. The Office of Fair Trading brought criminal cartel charges against the executives after the airline admitted fixing the price of fuel surcharges with Virgin Atlantic between 2003 and 2006. But the prosecution was blighted from the start and was stopped for legal arguments three times before it collapsed in May, the Times reports.
Asian investors have shunned shares in Prudential after it listed in the region in May, providing further ammunition to critics who believe the UK group mishandled its attempt to buy AIG’s local life insurance unit.Fewer than 40,000 of Prudential’s shares changed hands, on average, each day last week on the Hong Kong and Singapore stock exchanges, compared with a daily trading volume above 12m in London, the FT reports.
Recession or not, the UK's top executives are still earning a typical £3.1m a year each – with a "poor correlation" between their pay and shareholder value, according to two of the country's leading authorities in the field. The level of remuneration will fuel the debate about boardroom excesses, with a crucial vote on pay at Marks & Spencer due next week, the Independent reports.
Linklaters will send a shudder through Britain’s commercial legal market today when it reveals a 9% fall in full-year revenue to £1.18bn. The “magic circle” giant suffered a sharp decline in fee income for the year to April 30, despite winning some of last year’s biggest legal mandates, including advising Lloyds TSB and Royal Bank of Scotland on their reorganisation, and its continuing role on the Lehman Brothers insolvency, the Times reports.
KKR will this week attempt to defy recent market turmoil with a flotation on the New Stock Exchange that is expected to value the private equity giant at as much as $9bn (£5.9bn). The American buy-out fund, which owns some of world's largest companies, including Toys R Us, is expected to announce tomorrow that it has submitted filings to the Securities Exchange Commission, the US regulator, that will lay out the timing and details of the proposed initial public offering, the Telegraph reports. |
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