Thursday 1 December, 10:15 AM GMT (Thomson Financial): European markets
have opened broadly higher, reversing some of its losses earlier in the
week. Amongst the key headlines, HSBC has delivered an upbeat third
quarter trading update but remains cautious going into the fourth quarter,
while Thyssenkrupp has announced a rise in full year pre-tax profits to
1.84 billion euros from 1.48 billion euros last year. Meanwhile, United
Utilities has recorded a 20% year-on-year rise in first half pre-tax
profits to 244 million pounds.
Prudential has made an offer to acquire the remaining 21.7% of on-line
banking unit Egg it does not already own while TNT has sold the majority
of the contract logistics activities and part of the transportation
activities of its French subsidiary TNT Logistics Holdings to Norbert
Dentressangle. Meanwhile Swiss Life says it is aiming for a net profit of
1 billion Swiss francs and return on equity over 10% by 2008.
In macroeconomic news, the European Central Bank is expected to raise
interest rates by 25 basis points, the first hike in five years.
Currently, Eurozone interest rates stand at 2%.
London's FTSE-100 Index is up by 27.30 points or 0.50% to 5450.50, while
Paris's CAC-40 Index has risen by 25.95 points or 0.57% to 4593.36.
Frankfurt's DAX Index has added 29.31 points or 0.56% to 5222.71 and Milan
's S&P MIB Index has climbed by 200 points or 0.59% to 32,290. The
pan-European blue chip Dow Jones Stoxx 50 Index is stronger by 19.89
points or 0.61% to 3284.42.
* In its latest trading update HSBC says its third quarter performance
reflects continued progress with all its operations delivering higher
pre-tax profits year-on-year. Geographically, the bank said there had been
a broad expansion within the Asia Pacific region, singling out strong
asset and profit growth in the Middle East, driven by the regional
benefits of the strong oil price. The outlook for the rest of the year
suggests continuation of the broad trends although it cautioned that
trading revenues were expected to be lower in the fourth quarter.
* German industrial conglomerate Thyssenkrupp has announced a rise in full
year pre-tax profits to 1.84 billion euros compared to 1.48 billion euros
last year, with earnings per share reaching 2.05 euros compared to 1.81
euros previously. Sales have grown to 42.1 billion euros from 37.3 billion
euros in the prior year with an order intake of 42.5 billion euros
compared to 38.8 billion euros last year. The company says it will
increase the dividend to 0.70 euros per share from 0.60 euros and on top
of this, there will be a special dividend of 0.10 euros per share as a
result of its virtually completed divestment program.
* U.K. water and power group United Utilities has recorded a 20%
year-on-year rise in first half pre-tax profits to 244 million pounds.
Operating profit has risen to 366.5 million pounds from 337.9 million
pounds in the prior year, on revenues of 1.157 billion pounds from 1.025
billion pounds last year, while the interim dividend per ordinary share
has been lifted by 3.4% to 14.29 pence. Meanwhile, Philip Green has been
appointed as the company's new Chief Executive with effect from 31 March
2006, a post currently being held by John Roberts.
* U.K. insurance group Prudential has made an offer to acquire the
remaining 21.7% of on-line banking unit Egg it does not already own. The
offer values the existing issued share capital of Egg at 973 million
pounds, a 15% premium to the market capitalisation on 30 November 2005,
the last business day prior to announcement.
* Logistic services group TNT has signed an agreement to sell the majority
of the contract logistics activities and part of the transportation
activities of its French subsidiary TNT Logistics Holdings to Norbert
Dentressangle. As previously disclosed, the expected negative financial
impact relating to the sale and refocus of the French logistics business
unit is to be up to 140 million euros and will be mostly booked in 2005.
* Swiss Life is outlining its future strategy at an investor day
conference with the aim of achieving net profits of 1 billion Swiss francs
and return on equity over 10% by 2008.
* Nokia has unveiled plans to expand its mobile device production in
Dongguan, China, designed to provide further capacity and flexibility in
order to meet the growing market demand worldwide, especially China and
Asia. The company says factory expansion will commence in the third
quarter of 2006.
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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