Tuesday 10 January, 5:00 PM GMT (Thomson Financial): European markets
ended the trading session lower as investors locked in trading profits. In
corporate news, SAP expects its fourth-quarter software licence sales to
rise by 18% year-on-year to 1.180 billion euros, while Marks & Spencer
said U.K. sales for the 13 weeks to 31 December 2005 rose by 4.8% but gave
a cautious outlook. Novartis decided not to make an offer for Swiss
biotechnology company Berna Biotech, while Morphosys and Chemicon
International 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 remained higher amid speculation
that Sweden's Vattenfall was considering a bid for the company.
London's FTSE-100 Index was down 42.70 points or 0.75% to 5,688.80, while
Paris's CAC-40 Index was down 13.16 points or 0.27% to 4,861.93.
Frankfurt's DAX Index was down 42.40 points or 0.77% to 5,494.71 and
Milan's S&P MIB Index was down 80.0 points or 0.22% to 36,147. The
pan-European blue chip Dow Jones Stoxx 50 Index was down 25.76 points or
0.75% to 3,416.33.
* Software provider SAP expects its fourth-quarter software licence sales
to amount 1.180 billion euros versus 1.003 billion euros last year, up
18%, exceeding market forecasts. Fourth-quarter revenue was expected to
come in at 2.75 billion euros, compared to 2.40 billion euros last year.
This too exceeded market forecasts. A complete earnings statement would be
issued on January 25.
* Marks & Spencer said U.K. sales for the 13 weeks to 31 December 2005
rose by 4.8%, with general merchandise up 2.1% and food up 7.9%. Progress
had 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
gave a cautious outlook saying it faces increasing cost pressures, with
costs of fuel, utilities, rent rising sharply, which will have an impact
in 2006.
* Pharmaceuticals group Novartis said after completion of due diligence
and an assessment of the potential benefits and risks of an acquisition,
it decided not to make an offer for Swiss biotechnology company Berna
Biotech.
* Morphosys and Chemicon International, a subsidiary of Serologicals
Corporation, signed a three-year agreement for the distribution of
HuCAL -based recombinant research antibodies through Chemicon's worldwide
sales network. Further financial details were not disclosed.
* Solvay 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 said 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 remained higher amid
speculation that Sweden's Vattenfall was considering a bid for the
company. A report in today's Herald newspaper ignited the debate, citing
increased chatter amongst energy industry executives in Scotland in recent
days over a possible bid.
* KarstadtQuelle rejected press reports, which suggested 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 remained 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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