Wednesday 11 January, 1:00 PM GMT (Thomson Financial): European markets
have come off their intra-day highs but remain higher ahead of the opening
session on Wall Street, led by the banking and insurance 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
compared to 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 suggests a
takeover proposal for U.S. life insurer AmerUs Group.
London's FTSE-100 Index has risen by 31.20 points or 0.55% to 5720.00,
while Paris's CAC-40 Index has climbed by 22.41 points or 0.46% to
4884.34. Frankfurt's DAX Index is higher by 32.11 points or 0.58% to
5526.82 and Milan's S&P MIB Index has gained 295 points or 0.82% to
36,442. The pan-European blue chip Dow Jones Stoxx 50 Index is up by 9.37
points or 0.27% to 3425.61.
* BP expects fourth quarter production to be higher than in the third
quarter, reflecting continued growth in new profit centers 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 demand in Europe declined by a
greater-than-expected 2.9% in the fourth-quarter of 2005, 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 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 compared to 62.5 million
pounds last year. The LSE says this performance reinforces its dismissal
of Macquarie's offer, which fails to recognize the value of the business.
* U.K. insurer Aviva has officially denied press reports, which suggested
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 a 470 pence per
share offer from Singapore port operator PSA International. This rivals an
earlier bid from rival Dubai Ports at 443 pence per share.
* German retailer Metro says that according to preliminary figures, full
year sales increased by 4.2% year-on-year to 55.7 billion euros. In
Germany sales declined by 2.2% while international sales rose 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.
* Housing development group Taylor Woodrow expects group profits for the
year to 31 December 2005 to be in line with current market expectations.
In particular, the company said increased investment within its North
American operations over the last three years had resulted in further
growth, at a time in which U.K. markets have been relatively weak.
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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