ADVFN Morning Euro Markets Bulletin - Oct. 31st 2011

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London Market Reports

Market Movers
techMARK 1,867.97 -0.50%
FTSE 100 5,639.71 -1.10%
FTSE 250 10,640.38 -1.23%

Banking giant Barclays is a rare bright spot in London after a better than expected third quarter update, as stocks head lower.

Miners Vedanta Resources, BHP Billiton, Xstrata and Rio Tinto are the biggest fallers among the top-share index constituents, as metal prices head south.

Barclays said its statutory profit before tax jumped to £2,422m from £327m the year before in the third quarter. Analysts had been expecting a figure of around £1.7bn. Adjusted profit before tax, which excludes exceptional items such as the impact of the bank's own credit and the impairment on its investment in Blackrock, rose to £1,337m in the three months to the end of September from £1,273m in the corresponding quarter of last year.

BG Group, oil and gas company, has announced its plans for the succession of current chairman Sir Robert Wilson. He will be replaced by Andrew Gould, the current Chairman of the oil and gas services company Schlumberger.

Capital Shopping Centres, the real estate investment trust, has seen no increase in footfall in the three months to the end of October compared to the equivalent period of 2010. Capital, which specialises in regional shopping centres has, however, seen occupancy remain at 97% and the "year to date" footfall numbers are up 2% on the equivalent period of 2010.

Half year losses widened at sports retailer JJB Sports and revenue plunged nearly 23% as UK retail conditions deteriorated towards the end of its second quarter. The beleaguered retailer warned that full year expectations were likely to fall short of company expectations.

HomeServe, the company which provides emergency repair services, is another stock under the cosh. It shed almost a third of its value in early trading after it said it is to suspend its telesales operation after an independent review found “processes that did not meet the company's required standards.”

FTSE 100 - Risers
Barclays (BARC) 205.05p +1.91%
International Power (IPR) 343.00p +0.79%
Vodafone Group (VOD) 175.15p +0.49%
United Utilities Group (UU.) 610.00p +0.41%
National Grid (NG.) 625.00p +0.40%
BT Group (BT.A) 188.50p +0.32%
GlaxoSmithKline (GSK) 1,387.00p +0.22%

FTSE 100 - Fallers
Vedanta Resources (VED) 1,351.00p -3.77%
BHP Billiton (BLT) 2,029.50p -3.45%
Xstrata (XTA) 1,095.00p -3.31%
Rio Tinto (RIO) 3,513.00p -2.96%
ICAP (IAP) 420.00p -2.91%
Aviva (AV.) 353.40p -2.64%
Royal Bank of Scotland Group (RBS) 25.64p -2.47%
Kazakhmys (KAZ) 992.00p -2.46%
Burberry Group (BRBY) 1,374.00p -2.35%
Lonmin (LMI) 1,139.00p -2.32%

FTSE 250 - Risers
Premier Foods (PFD) 4.35p +9.02%
Drax Group (DRX) 559.00p +2.95%
Pace (PIC) 84.00p +2.38%
Salamander Energy (SMDR) 204.30p +2.15%

FTSE 250 - Fallers
Homeserve (HSV) 337.70p -30.41%
New World Resources A Shares (NWR) 547.00p -8.53%
Supergroup (SGP) 595.50p -6.07%
Mothercare (MTC) 170.20p -4.92%
Daejan Holdings (DJAN) 2,732.00p -4.81%
Halfords Group (HFD) 326.20p -4.00%




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Monday October 31

INTERIMS
Berkeley Group Holdings

INTERIM DIVIDEND PAYMENT DATE
Wynnstay Group

QUARTERLY PAYMENT DATE
JP Morgan Chase & Co

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Construction Orders (JPN)
Housing Starts (JPN)
Retail Sales (GER)
Producer Prices (FRA) (07:45)
Consumer Price Index (EU) (10:00)
Unemployment Rate (EU) (10:00)
International Reserves (EU) (11:00)
Chicago PMI (US) (13:45)
NAPM Milwaukee (US) (14.00)
Dallas Fed Manufacturing Activity (US) (14.30)

Q3
Anglo Pacific Group, Centamin Egypt Ltd., Etalon Group Ltd GDR (Reg S)

GMS
Just Car Clinics Group

FINALS
Pure Wafer, Trading Emissions

IMSS
Barclays, Capital Shopping Centres Group, F&C Inv Trust, Forth Ports, Gresham Computing, Mondi

SPECIAL DIVIDEND PAYMENT DATE
Ludgate Environmental Fund Ltd.

EGMS
Hals-Development JSC GDR (Reg S)

AGMS
India Hospitality Corp. (DI), Indus Gas Ltd., Psource Structured Debt Ltd.

UK ECONOMIC ANNOUNCEMENTS
Hometrack Housing Survey
Consumer Credit (09:30)
Net Lending On Secured Dwellings (09:30)
M4 Money Supply (09:30)
M4 Sterling Lending (09:30)
Mortgage Approvals (09:30)

FINAL DIVIDEND PAYMENT DATE
Abbey, Alumasc Group


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European Market Report

FTSE 100 Euronext Dax perf CAC 40


Europe's stock markets are lower across the board as investors bank some of last week's profits while awaiting the US non-farm payrolls data due later this week and more details on the Eurozone debt crisis plan.

The CAC 40 in Paris is off 53 points at 3,295 while the DAX in Frankfurt is down 72 at 6,273.

Banks are prominent among the laggards in Paris, with investment bank Natixisjoining diversified lenders Societe Generale, BNP Paribas and Credit Agricole in the red, while in Frankfurt Deutsche Bank is bottom of the pile.

Wind turbine maker Vestas Wind Systems is taking a battering after lowering its full-year revenue guidance to €6.4bn, down from a previously indicated target of €7bn, as it counts the cost of delays to the commissioning of a new plant in Germany.

The Danish company also took a knife to its operating margin forecast, saying it will be around 4%, not the 7% or so it had previously expected.

Vestas's chief executive Ditlev Engel noted in a statement that although various projects had been delayed a a result of slower progress in commissioning a new generator plant at Travemunde in Germany, the projects will be completed during 2012, "and it is important also to point out that earnings on the individual projects are still satisfactory."

While warning on lower full-year expectations, the group took the opportunity to announce its third quarter results earlier than the market had been expected. The company suffered an underlying €92m loss in the third quarter, versus a profit of €271m the year before.

German steel producer ThyssenKrupp is friendless after UBS downgraded the stock to "neutral" from "buy".


CAC 40 - Risers
ArcelorMittal SA (MT) € 15.82 +0.70%
Danone (BN) € 50.52 +0.40%
EADS (EAD) € 21.43 +0.37%

CAC 40 - Fallers
Natixis SA (KN) € 2.40 -4.57%
Societe Generale (GLE) € 22.35 -4.45%
GDF Suez (GSZ) € 20.87 -4.09%
BNP Paribas (BNP) € 34.91 -3.96%
Credit Agricole (ACA) € 5.92 -3.88%
AXA (CS) € 11.74 -3.57%
LVMH (MC) € 119.25 -2.89%
Vallourec (VK) € 46.39 -2.83%
Schneider Electric (SU) € 44.27 -2.35%
Accor (AC) € 24.45 -2.30%


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US Market Reports

Dow Jones NASDAQ NYSE AMEX

Please click on the images to view our interactive charts

Whirlpool's figures provoke sharp falls

It was a mixed end to a strong week for US markets in which shares enjoyed a Eurozone bounce.

While the tech-heavy NASDAQ Composite eased back a point to 2,737, the Dow-Jones 30 rose 23 points to 12,231 while the S&P 500 was up half a point at 1,285.

With signs that the Eurozone package euphoria is beginning to fade, US economic data provided little impetus for investors to pile into stocks.

US personal income rose by 0.1% in September, reversing August's fall of 0.1%. The market had been expecting a larger rise, however, of 0.3%.

Personal spending increased by 0.6%, in line with expectations, after rising 0.2% in August.

The University of Michigan´s consumer sentiment index for the month of October came in ahead of expectations of 58.0 at 60.9.

On the company front, shares of Whirlpool were sucked lower after the household appliances giant said it will cut back its workforce by around 10%. The company's third quarter earnings came in below expectations, at $177m, up from $79m in the third quarter of last year. Revenue rose 2% to $4.63bn.

The company lowered full year earnings guidance. Earnings per share for 2011 are now expected to fall somewhere between $4.75 and $5.25, versus a previous guidance range of $7.25 to $8.25.

Also weighing heavily on the S&P 500's performance was Cablevision Systems, as the cable TV provider announced a 65% dive in third quarter profit to $39.3m, down from $112.1m a year earlier. Underlying earnings per share of 17 cents were barely half the 31 cents a share the market had been expecting. Sector peers, such as Dish Network,Directv and Comcast fell back in sympathy.

On the upside, Chinese search engine giant Baidu advanced after it announced an 80% increase in third quarter profit, while computing titan Hewlett-Packard was wanted, on reports that new chief executive, Meg Whitman, is far less keen than her predecessor, Leo Apotheker, on getting out of the PC box-shifting business.

Microchip maker Advanced Micro Devices (AMD) rose strongly following its third quarter earnings presentation and better than expected outlook statement. Earnings per share came in at $0.13, above the $0.10 expected by the market consensus. Net income fell to $97 million from $118 million in the same period of 2010.

US oil company Chevron reported mixed results for the third quarter, as earnings beat estimates but revenue fell short.

Earnings per share came in at $3.92, well above the consensus estimate of $3.42. Net income rose to $7.83bn from $3.77bn in the same period of last year.

OTHER MARKETS

The December futures contract for West Texas sweet light crude eased back 64 cents to $93.32 in New York trading, though the most widely traded futures contract still enjoyed its biggest weekly gain since February of this year.

10 year US treasuries closed up by 22/32 dollars with yields at 2.32%.

S&P 500 - Risers
Monster Worldwide Inc. (MWW) $9.86 +11.66%
United States Steel Corp. (X) $27.86 +11.57%
Interpublic Group of Companies Inc. (IPG) $9.92 +11.21%
Newell Rubbermaid Inc. (NWL) $15.36 +11.14%
CBRE Group Inc (CBG) $18.98 +10.86%
AK Steel Holding Corp. (AKS) $9.17 +8.91%
Advanced Micro Devices Inc. (AMD) $5.94 +7.22%
Allegheny Technologies Inc. (ATI) $50.21 +7.01%

S&P 500 - Fallers
Whirlpool Corp. (WHR) $51.80 -14.34%
Cablevision Systems Corp. (CVC) $15.14 -12.54%
Metropcs Communications Inc. (PCS) $8.94 -8.12%
Apartment Investment & Management Co. (AIV) $25.03 -6.60%
Expedia Inc. (EXPE) $27.28 -6.22%

Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $27.94 +3.52%
Merck & Co. Inc. (MRK) $35.11 +2.33%
Alcoa Inc. (AA) $11.57 +2.03%

Dow Jones I.A - Fallers
Home Depot Inc. (HD) $36.12 -2.96%
Wal-Mart Stores Inc. (WMT) $57.15 -1.14%

Nasdaq 100 - Risers
Amazon.Com Inc. (AMZN) $217.32 +5.10%
Hologic Inc. (HOLX) $16.65 +4.52%
Baidu Inc. (BIDU) $144.62 +4.50%
BMC Software Inc. (BMC) $35.21 +3.93%
eBay Inc. (EBAY) $33.25 +2.97%
Sandisk Corp. (SNDK) $53.38 +2.63%

Nasdaq 100 - Fallers
Expedia Inc. (EXPE) $27.28 -6.22%
Virgin Media Inc. (VMED) $24.77 -4.99%
Stericycle Inc. (SRCL) $84.34 -4.60%
Sears Holdings Corp. (SHLD) $78.69 -4.54%
Dish Network Corp. (DISH) $24.44 -3.93%
DIRECTV (DTV) $45.53 -3.82%
Nll Holdings Inc. (NIHD) $24.97 -3.22%
Apollo Group Inc. (APOL) $48.16 -3.12%
Comcast Corp. (CMCSA) $23.85 -3.01%


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Newspaper Round-up
Business confidence, Luminar, taxes

The Prime Minister says the government is on an “all-out mission” to kick-start industry. It aims to accomplish its goal, partly, through a drive on updating the country´s infrastructure. Thus, Nick Clegg, the Deputy Prime Minister, will announce that 35,000 jobs will be created using nearly £1bn of public money. He will unveil new investment in more than 100 projects that should trigger billions of pounds additional investment from private enterprise. Those will include six “shovel-ready” projects, including two new power stations, reports The Telegraph.

A poll by Ipsos Mori for the Resolution Foundation, a think-tank, suggests that a third of Britons are cutting back their spending. In the survey, published today, 35% of respondents who were in work said they felt secure in their job, compared to 41% in July. For those working part-time, the figure was just 27%, according to The Telegraph.

Hugh Osmond is weighing up an approach to the administrators of Luminar with a view to bidding for most of its nightclubs, The Times has learnt. Osmond’s Sun Capital investment vehicle is thought to be interested in at least 50 of the 75 clubs, although an offer would be contingent on keeping the group’s operational infrastructure.The entrepreneur behind PizzaExpress and Punch Taverns had hoped to be part of a bank-sanctioned restructuring that would have seen Sun Capital back a £20 million equity fund raising led by Numis, reports The Times.

Business confidence has slumped to a 30-month low before crucial GDP figures on Tuesday that are expected to show that the UK economy is slipping towards recession. A national survey of business sentiment has found a large majority of employers are wary of the next six months and expect the outlook for the economy to remain unsettled. The Lloyds Bank Corporate Markets business barometer registered confidence in the UK's economic prospects, at its lowest for more than 2 years, according to The Guardian.

The Treasury select committee is on a collision course with the Bank of England over its refusal to disclose information detailing how it handled the financial crisis. Andrew Tyrie, the Conservative MP who chairs the committee, has sent a warning shot to the Bank's court – akin to the board of a company – that MPs intend to call for changes in the way the central bank accounts for its actions. Sir Mervyn King is expected to appear before the pre legislative committee looking at new proposed powers for the bank on the 3rd of November, The Guardian reports.

The effective tax rate paid by Britain’s biggest companies has dropped by almost a third over the last two years, but many are still considering moving their headquarters abroad. In 2009, FTSE 100 companies on average paid tax equivalent to 35.8% of their annual profits. But new research by UHY Hacker Young, a national group of accounting firms, shows that figure has fallen to just 26% in 2011, even though profits are higher. For Aileen Scott, tax partner at Campbell Dallas, the only Scottish member of the UHY Hacker Young group, “While the government has made efforts to make the UK tax regime more attractive, will it be enough to stymie the tide of British companies still thinking about the exit?”, reports The Scotsman.

Qantas flights are set to resume after an Australian tribunal ordered an end to the dispute that has cost the airline more than £20m and hit the travel plans of nearly 70,000 passengers. The above after a series of strikes costing Qantas £48m since August led chief executive Alan Joyce to ground the airline's fleet of 108 aircraft at 22 airports on Saturday. Now unions and management must return to the negotiating table. Unless agreement can be reached, the dispute will be referred to binding arbitration. Government lawyers had warned that for every hour the Qantas fleet remained grounded, the economy suffered tens of millions of dollars in damages, says The Telegraph.