Tuesday 10 January, 10:15 AM GMT (Thomson Financial): European markets
have opened lower, taking their cue from Asia and not the U.S., which
overnight saw the Dow 30 index touch the 11,000 level.
In corporate news, Marks & Spencer says U.K. sales for the 13 weeks to 31
December 2005 have risen by 4.8% but has given a cautious outlook. Novartis
has decided not to make an offer for Swiss biotechnology company Berna
Biotech, while Morphosys and Chemicon International, have signed a three-year
agreement for the distribution of HuCAL -based recombinant research antibodies
through Chemicon's worldwide sales network. Bank of Scotland (Ireland), part
of the HBOS Group, will tomorrow begin opening the first major new retail
banking network in Ireland for over a century, while Scottish & Southern
Energy has opened higher amid speculation that Sweden's Vattenfall is
considering a bid for the company.
London's FTSE-100 Index is down 29.0 points or 0.51% to 5,702.50, while
Paris's CAC-40 Index is down 27.58 points or 0.57% to 4,847.51. Frankfurt's
DAX Index is down 40.56 points or 0.73% to 5,496.55 and Milan's S&P MIB Index
is down 152.0 points or 0.42% to 36,075.0. The pan-European blue chip Dow
Jones Stoxx 50 Index is down 19.81 points or 0.58% to 3,422.28.
* Marks & Spencer says U.K. sales for the 13 weeks to 31 December 2005 have
risen by 4.8%, with general merchandise up 2.1% and food up 7.9%. Progress has
been made across all areas of the business through better buying, better
values and tight control of inventory, with around 35% less stock going into
post-Christmas clearance than last year. However, the company have given a
cautious outlook. Moreover, it says it faces increasing cost pressures, with
costs of fuel, utilities, rent rising sharply, which will have an impact in
2006.
* Pharmaceuticals group Novartis says after completion of due diligence and an
assessment of the potential benefits and risks of an acquisition, it has
decided not to make an offer for Swiss biotechnology company Berna Biotech.
* Morphosys and Chemicon International, a subsidiary of Serologicals
Corporation have signed a three-year agreement for the distribution of HuCAL -
based recombinant research antibodies through Chemicon's worldwide sales
network. Further financial details have not been disclosed.
* Solvay has acquired Mississippi Polymer Technologies (MPT), a U.S.-based
start-up company that commercialized Parmax, a new family of specialty
materials with exciting and very unique properties. This follows Solvay's
recent announcement of its intent to purchase the Polymers Division of Gharda
Chemicals in India, and will further expand Solvay's portfolio of ultra-
performance polymers.
* Bank of Scotland (Ireland), part of the HBOS Group, will tomorrow begin
opening the first major new retail banking network in Ireland for over a
century. In total, 46 branches will open over the next 14 months.
* Utility group Scottish & Southern Energy has opened higher amid speculation
that Sweden's Vattenfall is considering a bid for the company. A report in
today's Herald newspaper has ignited the debate citing increased chatter
amongst energy industry executives in Scotland in recent days over a possible
bid.
* KarstadtQuelle has rejected press reports which suggests that the
Schickedanz family and other investors are considering buying shares in
Karstadt they do not already own to take the retail group private.
* Rio Tinto is under pressure with its Western Australian iron ore operations
halted in the wake of tropical cyclone Clare, which hit the coast last night.
Simon.Tse@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 any
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SOURCE Thomson Financial Corporate Group
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