Tuesday 10 January, 1:00 PM GMT (Thomson Financial): European markets are
treading in negative territory ahead of the opening session on Wall
Street. 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 31.50 points or 0.55% to 5,700.0 while
Paris's CAC-40 Index is down 24.66 points or 0.51% to 4,850.43.
Frankfurt's DAX Index is down 41.0 points or 0.74% to 5,496.11 and Milan's
S&P MIB Index is down 132.0 points or 0.36% to 36,095.0. The pan-European
blue chip Dow Jones Stoxx 50 Index is down 21.16 points or 0.61% to
3,420.93.
* 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 has 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 commercialised 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.
* Beiersdorf Group says preliminary figures indicated that full year 2005
earnings before interest and tax (EBIT) amounted to 525 million euros
compared to 483 million euros in the previous year. Despite a very
difficult market environment, sales have grown at current exchange rates
by 5.1% year-on-year to 4.776 billion euros.
* Utility group Scottish & Southern Energy remains 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 remains 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
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SOURCE Thomson Financial Corporate Group
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