Monday 28 November, 1:00 PM GMT (Thomson Financial): European markets have
come off their intra-day highs but continue to trade in positive territory
ahead of the opening session on Wall Street as U.S. investors return from the
Thanksgiving holidays. The insurance sector is the best performer, supported
by the technology and automobiles sectors. There is some weakness in telecoms,
with Swisscom lower on the possibility of management changes following
disagreements with the Swiss government over foreign takeovers.
Among other corporate headlines, Royal Ahold has settled a class action
for 945 million euros while Rexam is reported to be pondering over a possible
3 billion pounds approach for Saint-Gobain's bottling making arm. In the
healthcare sector, Shares in Actelion remain sharply lower on disappointing
clinical trial data while Novartis has sold its Nutrition & Sante business
unit to ABN AMRO Capital France for 220 million euros. Finally, shares in
Rhodia are soaring after securing United Nations approval for its project to
reduce greenhouse gas emissions at its Onsan facility in South Korea
London's FTSE-100 Index is up by 7.20 points or 0.13% to 5531.00, while
Paris's CAC-40 Index has risen by 12.73 points or 0.28% to 4613.21.
Frankfurt's DAX Index is higher by 30.59 points or 0.59% to 5224.86 and
Milan's S&P MIB Index climbed by 135 points or 0.39% to 34,571. The pan-
European blue chip Dow Jones Stoxx 50 Index has gained 6.92 points or 0.21% to
3318.44.
* Royal Ahold has reached an agreement with the lead plaintiffs to settle the
securities class action in the United States for 945 million euros -equivalent
to US$1.1 billion. This comes on the eve of the publication of its third
quarter results.
* Shares in pharmaceuticals group Actelion continue to trade sharply lower on
news that clinical trial application of its Tracleer drug to patients
suffering from either idiopathic pulmonary fibrosis or pulmonary fibrosis
related to Systemic Sclerosis showed no improvements in their conditions.
* Newspaper reports are suggesting the possibility of management changes at
Swisscom, fuelled by rumors that its chief executive Jens Alder may step down
as the Swiss government -a majority shareholder in the company- continues to
resist the possibility of foreign takeovers ahead of Swisscom 's planned
privatization.
* SAP and Accenture have been selected by the China Minsheng Banking
Corporation to build a core banking system for CMBC. The agreement was
formalized at a signing ceremony in Beijing, China.
* According to the U.K. Telegraph newspaper, GlaxoSmithKline will use clinical
data at a research seminar this week as a way of revealing details of a
potential blockbuster cancer drug. The drug, known as eltrombopag, is still in
the early stages of development.
* The Daily Telegraph newspaper is also indicating that Rexam might be
interested in taking over Saint Gobain's glass bottle business as a means of
growing its own glass business. This has fuelled speculation of a possible 3
billion pounds approach for the unit.
* Novartis has sold its Nutrition & Sante business unit to ABN AMRO Capital
France for 220 million euros and the deal is expected to be accomplished by
the first quarter of 2006.
* Shares in Rhodia have jumped after securing United Nations approval for its
project to reduce greenhouse gas emissions at its Onsan facility in South
Korea. With this decision, the group has acquired the final consent needed to
deploy the project, which will become operational by end of 2006.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary. The
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SOURCE Thomson Financial Corporate Group
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