ADVFN Morning Euro Markets Bulletin - Jan 7th 2011

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

London Market Reports
Blue chips lower ahead of jobs data

London has fallen back below 6,000 as investors sit on their hands ahead of the non-farm payrolls data coming out of the US this afternoon. Estimates are for about 150,000 new jobs to have been added in December.

Elsewhere, it's a quiet morning so far. There has been a further development in the simmering dispute between shopping centres operator Capital Shopping Centres (CSC) and 5% US shareholder Simon Property. The latter has been critical of CSC's proposed purchase of Manchester's Trafford Centres from Peel Holdings and has been mulling a near-£3bn offer for the UK company.

CSC has sought to head off Simon by revising the terms of the Trafford Centre acquisition. Peel has agreed to value the CSC shares being issued to pay for the transaction at 400p, up from the 368p per share originally agreed, which means CSC will only have to issue 205.9m shares to Peel, down from 224.1m.

Arm Holdings has given back some of the gains inspired by its chip design deal with Microsoft yesterday.

Miners are also on the back foot with copper specialists Antofagasta and Kazakhmys leading the retreat alongside African Barrick Gold.

Budget airline easyJet sold 7.6% more seats in December than the same time last year and filled its planes slightly better as well. The no-frills carrier flew 3.66m passengers compared with 3.34m in December 2009. That takes the rolling 12-month figure to 49.72, up 7.9% on last year. It made no mention of the snow-related problems that rival British Airways said yesterday had cost it £50m.

The Christmas snow was no problem for sport-themed fashion chain JD Sports Fashion, which did so well it now thinks full-year profits will beat expectations. Like for like sales for the five weeks ended 1 January grew 2.5% and cumulative like for like sales for the 48 weeks are up 3.1%. They were up 2.8% in the 30 weeks to 28 August.

Wellstream, the manufacturer of flexible risers and flowlines for the oil and gas industry, expects 2010 earnings to be ahead of expectations. The group, which recently agreed to be taken over by General Electric, said a strong second half performance in Brazil was primarily responsible for the better than expected outturn.

Strong growth in the Far East, and China in particular, helped white collar recruiter Robert Walters lift fourth quarter gross profits by 42%, making an increase of 49% for past year overall.

Ukraine-focused oil and gas group JKX is facing a potentially big tax hike after the government there introduced a new tax code this year. The overall impact is anticipated to be an immediate increase in subsidiary Poltava Petroleum's effective tax rate from approximately 30% to approximately 50%, JKX says.

Paving slabs group Marshalls grew revenue by 4% in 2010, but the atrocious weather during December lost the company about £5m of sales and knocked £0.8m off operating profits.

Market Movers
techMARK 1,863.96 -0.54%
FTSE 100 5,979.14 -0.67%
FTSE 250 11,688.87 -0.24%

FTSE 100 - Risers
Man Group (EMG) 306.20p +1.29%
SABMiller (SAB) 2,267.00p +0.96%

FTSE 100 - Fallers
ARM Holdings (ARM) 460.60p -4.44%
Smith & Nephew (SN.) 640.50p -3.32%
Kazakhmys (KAZ) 1,583.00p -2.22%
Antofagasta (ANTO) 1,504.00p -2.15%
African Barrick Gold (ABG) 570.50p -1.89%
Compass Group (CPG) 563.00p -1.83%
Imperial Tobacco Group (IMT) 1,982.00p -1.83%
Anglo American (AAL) 3,253.00p -1.71%
Fresnillo (FRES) 1,555.00p -1.46%
Aviva (AV.) 410.30p -1.39%

FTSE 250 - Risers
Talvivaara Mining Company (TALV) 605.00p +2.54%
JD Sports Fashion (JD.) 886.00p +2.37%
Berendsen (BRSN) 448.30p +1.89%
Pace (PIC) 188.50p +1.73%
Pennon Group (PNN) 646.50p +1.65%
Sportingbet (SBT) 60.90p +1.50%
Sports Direct International (SPD) 167.10p +1.33%
Punch Taverns (PUB) 77.45p +1.18%
John Wood Group (WG.) 569.50p +1.15%
QinetiQ Group (QQ.) 133.30p +0.98%

FTSE 250 - Fallers
JKX Oil & Gas (JKX) 293.00p -8.52%
International Personal Finance (IPF) 357.10p -4.52%
Centamin Egypt Ltd. (CEY) 167.50p -2.62%
Filtrona PLC (FLTR) 245.00p -2.00%
Barratt Developments (BDEV) 94.50p -1.97%
Redrow (RDW) 135.00p -1.75%
CPP Group (CPP) 310.00p -1.59%
Grainger (GRI) 102.50p -1.44%
SIG (SHI) 131.00p -1.36%
Rank Group (RNK) 131.40p -1.35%

FTSE TechMARK - Risers
Torotrak (TRK) 23.50p +8.05%
NCC Group (NCC) 570.00p +5.95%
Renovo Group (RNVO) 69.75p +2.20%
XP Power Ltd. (DI) (XPP) 1,100.00p +2.14%
Vislink (VLK) 24.50p +2.08%
Vectura Group (VEC) 71.00p +0.71%
Oxford Biomedica (OXB) 5.45p +0.55%
Oxford Instruments (OXIG) 708.00p +0.43%
Phoenix IT Group (PNX) 278.00p +0.27%
Corin Group (CRG) 52.50p 0.00%

FTSE TechMARK - Fallers
KCOM Group (KCOM) 57.00p -4.60%
Gresham Computing (GHT) 29.50p -0.84%
Xaar (XAR) 239.00p -0.42%
Anite (AIE) 64.50p -0.39%
Promethean World (PRW) 66.25p -0.38%
Corin Group (CRG) 52.50p 0.00%
Asterand (ATD) 17.00p 0.00%
Kofax (KFX) 290.00p 0.00%
Innovation Group (TIG) 15.00p 0.00%
Triad Group (TRD) 19.50p 0.00%




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

Open a Selftrade Dealing account...
...and pay a flat £12.50 per trade. Deal in UK and International Equities, Funds, Bonds, Covered Warrants and Listed CFDs. Instant account funding via debit card. No dealing fee on fund purchases. Annual Management Fee of £35 + VAT. Click here


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

UK Event Calendar
TRADING ANNOUNCEMENTS

Persimmon, Robert Walters

UK ECONOMIC ANNOUNCEMENTS

Official Reserves (09:30)

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Trade (GER) (07:00)
Current Account (GER) (07:00)
Retail Price Index (GER) (07:00)
PMI Construction (GER) (08:55)
PMI Construction (EU) (09:00)
Industrial Production (GER) (11:00)
Consumer Credit (US) (20:00)




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

Traders can turn £3k into £150k – Learn how
Earn a tax free income trading, from just 20 minutes a day – no experience needed
Our powerful trading software will help you decide when to enter trades and how to maximise profits.

Register for a FREE brochure and trading guide, Click Here.




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

European Market Reports
Stocks retreat ahead of US jobs data

European bourses are stuck in reverse in the early trading ahead of this afternoon’s eagerly anticipated US jobs data for December.

The Paris CAC 40 is down 29 at 3,875 and the Frankfurt DAX is also down 29 points, at 6,952. Spain’s IBEX 35 index is 196 points lower at 9,506.

In economic news, trade figures showed the German export machine is still rolling forward, though not as quickly as economists had expected.

Seasonally adjusted exports in November rose 0.5% from October’s level, versus expectations of a 1% rise.

Imports rose 4.1% in November after rising 0.1% in October.

With metals prices in retreat French steelmaker ArcelorMittal is off the pace.

In broker action, Goldman Sachs has published a review of the European drinks sector in which it has given the thumbs-up to Remy Cointreau, SABMiller and Pernod-Ricard.

All three have been upgraded from “neutral” to “buy”, while the first two have been added to the broker’s “conviction buy” list.

In contrast, Dutch brewer Heineken has been cut to “neutral” from “buy” while Danish brewer Carlsberg has been downgraded to “sell” from “neutral”.

While Goldman Sachs has the booze sector covered, US rival Citigroup has been looking at the fags market, and it thinks the outlook is not so bright for cigarette makers.

The broker has downgraded from “buy” to “hold” US cigarette maker Philip Morris and the two UK players, BATs and IMPs.


CAC 40 - Risers
Pernod Ricard (RI) € 69.48 +1.08%
Renault (RNO) € 47.17 +0.74%
Peugeot (UG) € 31.21 +0.69%
Essilor International (EI) € 48.53 +0.29%
Michelin (ML) € 53.70 +0.28%
EDF (EDF) € 31.50 +0.22%
EADS (EAD) € 19.10 +0.10%
Alcatel-Lucent (ALU) € 2.27 +0.04%

CAC 40 - Fallers
Lafarge (LG) € 45.63 -2.08%
ArcelorMittal SA (MT) € 27.08 -1.74%
Societe Generale (GLE) € 41.55 -1.40%
BNP Paribas (BNP) € 49.14 -1.39%
LVMH (MC) € 120.20 -1.39%
Total (FP) € 41.05 -1.20%
ST Microelectronics (STM) € 8.31 -1.14%
Credit Agricole (ACA) € 9.80 -1.06%
AXA (CS) € 13.38 -0.93%
Alstom (ALO) € 36.23 -0.85%




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

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


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

US Market Reports
Dow retreats from highs

A rise in weekly first time jobless claims and some weaker than expected retail sales kept Wall Street in check, though losses eased by the close.

The Dow Jones, which racked up its third consecutive two-year high on Wednesday, closed down 25 at 11,697. Nasdaq Composite added 7 at 2,709, while the broader S&P 500 shed 2 at 1,273.

First time jobless claims grew by 18,000 to 409,000 during the week to 1 January, a touch above expectations. Continuing claims fell to 4.1m, though still slightly more than the 4.08m predicted.

Investors will now be looking to the big one - tomorrow’s monthly nonfarm payrolls report. A much better than forecast private sector jobs number from ADP yesterday bodes well, say traders. Estimates are for 150,000 new jobs to be added in December.

In company news, technology companies dominated the headlines with Microsoft and Nvidia both in demand after the software giant unveiled plans for its new tablet computer operating software.

Google, meanwhile, unveiled its own updated tablet software Android 3.0, to be called Honeycomb, at the Consumer Electronics Show.

Retailers are beginning to release December sales figures. Costco says same-store sales rose 6% last month and were up 11% in total.

But Gap has slumped 7% as same-store sales for last month came in flat compared with a predicted increase of over 2.5%.

Sales were up 10.3% at home furnishings outfit Pier 1 Imports. Sales at Macy’s were up 3.9%, but the shares have fallen.

S&P 500 - Risers
Nvidia Corp. (NVDA) $19.33 +13.84%
Moody's Corp. (MCO) $29.67 +8.60%
JDS Uniphase Corp. (JDSU) $16.01 +6.50%
TJX Companies Inc. (TJX) $45.52 +5.86%

S&P 500 - Fallers
Constellation Brands Inc. Class A (STZ) $19.84 -8.06%
Gap Inc. (GPS) $20.70 -6.88%
Target Corp. (TGT) $54.93 -6.80%
Metropcs Communications Inc. (PCS) $13.30 -6.73%

Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $28.80 +2.86%
Boeing Co. (BA) $68.80 +1.96%
Hewlett-Packard Co. (HPQ) $44.88 +1.54%
Merck & Co. Inc. (MRK) $37.05 +1.34%

Dow Jones I.A - Fallers
Verizon Communications Inc. (VZ) $36.23 -3.82%
AT&T Inc. (T) $29.15 -2.77%
Travelers Company Inc. (TRV) $54.39 -1.54%
Alcoa Inc. (AA) $16.36 -1.21%


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

111% return by 2013. Invest in Gold Standard Carbon Credits.
Find out more, Click Here.


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

Newspaper Round-up
BAA, Euro, LinkedIn...

Some of Britain’s largest airlines are considering legal action against BAA after snow shut Heathrow airport last month, causing travel misery for thousands of passengers.

The demands for compensation from the airports operator come as British Airways revealed that the weather disruption had cost it £50m. A number of carriers, including British Midland bmi and Virgin Atlantic, have told The Times that they are weighing their options after last month’s chaos at Heathrow.

The European single currency’s survival in its present form “can no longer be taken for granted,” Deutsche Bank warned yesterday. The German lender said that EU policymakers had to move far more rapidly to reform the eurozone, adding that extended delay could send the region spiralling into another crisis. Thomas Mayer, the bank’s chief economist, told The Times that the financial markets had been “left guessing” what will happen next after policymakers pledged last month to take any measures necessary to defend the euro.

The economy is suffering a "disappointing" start to the year as snow and the early impact of government spending cuts have hampered business activity, say the Chartered Institute for Purchasing and Supply (Cips). The latest Cips survey of confidence in the service sector – accounting for around 70% of the economy – reveals that the cold weather probably pushed the economy into contraction in December as the snow disrupted supplies and transport. This effect will have partially reversed the growth seen in October and November, the Independent reports.

LinkedIn plans to file for an initial public offering in the United States within months, according to reports that suggest the social network service for professionals is keen to take advantage of growing investor interest in privately held technology companies. A LinkedIn filing in the first quarter of the year may give it an edge before investor demand is soaked up by a widely anticipated offering from Facebook within the next 12 months, the Times reports.

Brazil has made a fresh attempt to keep the lid on its rising currency with new curbs on speculative trading designed to discourage ramping of the real against the dollar. A day after finance minister Guido Mantega pledged not to allow America to “melt the dollar”, Brazil’s central bank announced that domestic lenders would have higher reserve requirements against foreign exchange positions, the Telegraph reports.

Brussels has called for sweeping powers for regulators to seize failing EU banks, sack board members, and impose haircuts on senior bank debt, aiming to ensure that taxpayers are never again held hostage by high finance. The European Commission’s "Framework for Bank Recovery and Resolution" draws on Scandinavia’s hard-line approach during their banking crises in the early 1990s. The goal is to end the pattern of moral hazard and mispricing of risk that generated Europe’s debt woes, the Telegraph reports.

Lord Green of Hurstpierpoint, the Trade Minister, has refused to take on the role of promoting the £35bn British arms industry. Civil servants are working on a compromise ahead of the former HSBC chairman, who is an ordained Anglican priest, formally taking up his post next week. Lord Green’s decision, taken for what are thought to be “ethical” concerns, is likely to spark anger within the defence industry, which employs 300,000 people, the Telegraph reports.

National Grid has been found guilty of lying over the speed at which it finishes gas mains roadworks and fined £8m by Ofgem with £5m costs. The fine is the second largest levied by the regulator behind the £15m that National Grid paid last year over anti-competitive practices in the metering market, the Times reports.

Citigroup is seeking buyers for CitiFinancial, the largest consumer finance company in the US, in a deal that could raise hundreds of millions of dollars and mark a milestone in the bank’s efforts to break with its troubled past. People close to the situation said that after months of restructuring, Citi had begun contacting potential buyers for CitiFinancial, which was one of the building blocks in its ill-fated plan to become an all-purpose “financial supermarket”, the FT reports.