Wednesday 11 January, 5:00 PM GMT (Thomson Financial): European markets
ended the trading session with broad gains, led by the banking sector with
crude prices falling as increases in U.S. gasoline and distillate inventories
far exceeded forecasts.
Amongst the headlines BP said it expected 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 was expected
to decline due to falling demand in Europe.
Meanwhile, Sodexho Alliance posted first quarter 2006 revenues of 3.358
billion euros compared to 3.090 billion euros last year, while the London
Stock Exchange said its third quarter pre-tax profits had risen to 39.5
million pounds from 23.5 million pounds last year.
Amongst retail stocks, Metro said that according to preliminary figures,
full year sales had increased by 4.2% year-on-year to 55.7 billion euros,
while William Morrison released a Christmas trading update, saying sales from
its 380 stores had risen by 6.1%.
In M&A news, Peninsular & Oriental Steam Navigation received an offer from
Singapore port operator PSA International, while Aviva denied press reports
suggesting a takeover proposal for U.S. life insurer AmerUs Group.
London's FTSE-100 Index rose by 42.70 points or 0.75% to 5731.50, while
Paris's CAC-40 Index ended up by 28.56 points or 0.59% to 4890.49.
Frankfurt's DAX Index climbed by 38.18 points or 0.69% to 5532.89 and Milan's
S.MIB Index added 401 points or 1.11% to 36,548. The pan-European blue chip
Dow Jones Stoxx 50 Index gained by 15.38 points or 0.45% to 3431.62.
* 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, it expects
production 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 said demand in Europe had declined by a greater-
than-expected 2.9% in the fourth-quarter of 2005, resulting in lower group
sales. Against this backdrop, it estimated the 2005 consolidated operating
margin 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 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 full year corporate
objectives.
* The London Stock Exchange (LSE) said its third quarter pre-tax profits
had risen to 39.5 million pounds from 23.5 million pounds last year.
Operating profit was 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 said this performance reinforced its dismissal of
Macquarie's offer, which it said failed to recognise the value of the
business.
* U.K. insurer Aviva officially denied press reports suggesting a
takeover proposal for U.S. life insurer, AmerUs Group. The company said it
had not made such a proposal and no discussions with AmerUs were taking place.
* Peninsular & Oriental Steam Navigation received a 470 pence per share
offer from Singapore port operator PSA International. This rivalled an
earlier bid from rival Dubai Ports at 443 pence per share.
* German retailer Metro said that according to preliminary figures, full
year sales had 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 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 were 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.
* Biogen executives said they expected the U.S. Food and Drug
Administration to make a decision by the end of March to clear the return of
its recalled drug, Tysabri. Last year, Biogen and partner Elan
Pharmaceuticals removed Tysabri from the market after three cases of a rare
brain disease were reported.
mon.Tse@Thomson.com; Thomson Financial
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SOURCE Thomson Financial Corporate Group
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