Friday 6 January, 5:00 PM GMT (Thomson Financial): European markets ended
higher, even though the headline U.S. non-farm payrolls for December
undershot expectations. However, the November figure was revised upward
and the unemployment rate dropped. On the corporate side, VNU rose on
press reports that it would allow private equity houses to carry out
limited due diligence, while reports also indicated that BP was in talks
with Libyan authorities over a liquefied natural gas project.
Elsewhere, electronics group Medion fell heavily after it issued a profit
warning, while DSV confirmed its intention to merge with Frans Maas Groep.
London's FTSE-100 Index rose by 40.60 points or 0.71% to 5731.80, while
Paris's CAC-40 Index climbed by 32.06 points or 0.66% to 4867.15.
Frankfurt's DAX Index ended up by 19.79 points or 0.36% to 5536.32 and
Milan's S&P MIB Index gained by 280 points or 0.78% to 36,365. The
pan-European blue chip Dow Jones Stoxx 50 Index ended higher by 27.44
points or 0.81% to 3434.42.
* U.S. non-farm payrolls rose by 108,000 in December, falling below
expectations, although the November figure was revised to an increase of
305,000 from the initial estimate of 215,000. Moreover, the unemployment
rate fell to 4.9% from 5.0%.
* Shares in Dutch media and information group VNU rose 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 also reported that BP was in negotiations with Libya
over natural gas exploration and development. Although talks were 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%.
* JJB Sports issued a profit warning, saying 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 it sees
full-year pre-tax profits at 32-36 million pounds, which is lower than
market expectations.
* Meanwhile, shares in Electronics group Medion ended 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 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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