Friday 6 January, 1:00 PM GMT (Thomson Financial): European markets remain
higher ahead of the release of U.S. employment data. Corporate news is
light, but VNU remains higher on press reports that it has conditionally
opened its books to private equity firms, while JJB is lower after issuing
a profit warning and Medion is also under heavy pressure after it also
warned.
London's FTSE-100 Index has risen by 21.00 points or 0.37% to 5712.20,
while Paris's CAC-40 Index has added 25.17 points or 0.52% to 4860.26.
Frankfurt's DAX Index has climbed by 7.97 points or 0.14% to 5524.50 and
Milan's S&P MIB Index has gained 151 points or 0.42% to 36,236. The
pan-European blue chip Dow Jones Stoxx 50 Index has climbed by 9.38 points
or 0.28% to 3416.36.
* Shares in Dutch media and information group VNU remain higher after the
Financial Times reported that the company would allow private equity firms
to carry out limited due diligence. However, the report adds that this
will be conditional on the firms announcing by the end of January whether
they will make a bid.
* The Financial Times is also reporting that BP is in negotiations with
Libya over natural gas exploration and development. Although talks are
said to be at an advanced stage, they reportedly involve a liquefied
natural gas project that could supply North America and Europe.
* In a trading statement, U.K. house builder George Wimpey, said it
expected full-year group pre-tax profit to be at the lower end of market
expectations. It said U.K. completions were 1% below last year, while
average net selling prices were down by 4% from last year. However, in the
U.S., average selling prices were up by 7% year-on-year, while completions
grew by 11%.
* Shares in U.K. based JJB Sports remain lower after it issued a profit
warning. The company said that it had operated a vigorous promotional
campaign since October 2005, leading to better revenue than in the first
half of its financial year, but at lower gross margins. In the 22 weeks
ended 1 January, the combined gross margin for its stores and health clubs
was down by 3.2 percentage points on last year, while full-year pre-tax
profits are seen at 32-36 million pounds, which is lower than market
expectations.
* Meanwhile, shares in Electronics group Medion remain sharply lower after
the company said it expected to post significantly lower than expected
full-year earnings before interest and tax of 19 million euros on sales of
some 2.5 billion euros. The company blamed the difficult consumer and
market environment and plans for the discontinuation of unprofitable
product lines and order structures, which, combined with the economic
situation in Germany and international markets, Medion also expects to
lead to a fall in 2006 sales.
* Elsewhere, transport and logistics group DSV has confirmed its intention
to merge with Frans Maas Groep by making a 38 euros per share offer
including any full-year dividend for the company. DSV added that the
combined business would have annual revenues of some 4.1 billion euros and
that shareholders of Frans Maas representing 58.5% of its share capital
had signed irrevocable acceptances of the offer.
Olivier.Masson@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary.
The information herein is believed to be true and accurate. If you have
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SOURCE Thomson Financial Corporate Group
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