Wednesday 11 January, 10:15 AM GMT (Thomson Financial): European markets
are bouncing back from Tuesday's losses, led by the basic resources and
utilities sectors. Amongst the headlines BP expects its fourth quarter
production to decline year-on-year due to hurricane-related damage to its U.S.
refinery infrastructure, while PSA Peugeot Citroen's 2005 operating margin is
expected to decline due to falling demand in Europe. Meanwhile, Sodexho
Alliance has posted first quarter 2006 revenues of 3.358 billion euros versus
3.090 billion euros last year, while the London Stock Exchange says its third
quarter pre-tax profits have risen to 39.5 million pounds from 23.5 million
pounds last year.
Amongst retail stocks, Metro says that according to preliminary figures,
full year sales gave increased by 4.2% year-on-year to 55.7 billion euros,
while William Morrison has released a Christmas trading update, saying sales
from its 380 stores rose by 6.1%. In M&A news, Peninsular & Oriental Steam
Navigation has received an offer from Singapore port operator PSA
International, while Aviva has denied press reports, which suggest a takeover
proposal for U.S. life insurer AmerUs Group.
London's FTSE-100 Index is up by 30.20 points or 0.53% to 5719.00, while
Paris's CAC-40 Index is higher by 25.24 points or 0.52% to 4887.17.
Frankfurt's DAX Index has risen by 32.02 points or 0.58% to 5526.73 and
Milan's S&P MIB Index has climbed by 286 points or 0.79% to 36,433. The pan-
European blue chip Dow Jones Stoxx 50 Index has added 10.18 points or 0.30% to
3426.42.
* BP expects fourth quarter production to be higher than in the third
quarter, reflecting continued growth in new profit centres and the
completion of the planned maintenance season, partially offset by the
impact of Hurricanes Katrina and Rita. However on a year-on-year basis,
production is expected to decline due to hurricane-related damage to its
U.S. refinery infrastructure. Approximately US$130 million of costs are
expected to be incurred in the quarter, the majority of which is being
allocated to repair hurricane damage and the remainder in ongoing work
on the company's Thunder Horse facility.
* PSA Peugeot Citroen says the fourth-quarter of 2005 has seen demand in
Europe decline by a greater-than-expected 2.9%, resulting in lower group
sales. Against this backdrop, the 2005 consolidated operating margin has
been estimated at 1.940 billion euros, or 3.4% of sales and revenue,
down from a previous estimate of around 4%.
* French catering company Sodexho Alliance has posted first quarter 2006
revenues of 3.358 billion euros compared to 3.090 billion euros in the
same quarter last year. Despite the slowdown in growth in North America
following the hurricanes at the beginning of the first quarter, the
company said its performance had been satisfactory and in line with
corporate objectives for the full year.
* The London Stock Exchange (LSE) says its third quarter pre-tax profits
have risen to 39.5 million pounds from 23.5 million pounds last year.
Operating profit is up to 37.5 million pounds from 21.9 million pounds
in the prior year, on revenues on 80.9 million euros versus 62.5 million
pounds last year. The LSE says this performance reinforces its dismissal
of Macquarie's offer, which fails to recognise the value of the
business.
* U.K. insurer Aviva has officially denied press reports, which suggest a
takeover proposal for U.S. life insurer, AmerUs Group. The company says
it has not made such a proposal and no discussions with AmerUs are
taking place.
* Peninsular & Oriental Steam Navigation has received an offer from
Singapore port operator PSA International but no additional details have
been provided. This rivals an earlier bid from rival Dubai Ports.
* German retailer Metro says that according to preliminary figures, full
year sales have increased by 4.2% year-on-year to 55.7 billion euros. In
Germany sales have declined by 2.2% while international sales have risen
by 10.5%.
* U.K. supermarket chain William Morrison has issued a Christmas trading
update with sales from its 380 stores rising by 6.1% -or by 4.5%
excluding fuel. On a like-for-like basis sales are up by 4.4% -or by
2.8% excluding fuel.
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
questions please e-mail James Sang at james.sang@tfn.com. For more information
about Thomson Financial, please visit our web site at
http://www.thomsonfinancial.com. For more financial information at your
fingertips, please visit http://www.irchannel.com.
SOURCE Thomson Financial
back to top
