Thursday 1 December, 1:00 PM GMT (Thomson Financial): European markets are
trading in positive territory, led by a rebound in the oil & gas sector
following earlier losses during the week. 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.
In M&A news, 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, Punch Taverns has announced the
proposed acquisition of Spirit Group for 2.679 billion pounds.
In macroeconomic news, the European Central Bank has raise interest rates
by 25 basis points to 2.25%, the first rate hike in five years. ECB
President Jean Claude Trichet will hold a press conference later in the
afternoon.
London's FTSE-100 Index has risen by 31.80 points or 0.59% to 5455.00,
while Paris's CAC-40 Index has climbed by 40.68 points or 0.89% to
4608.09. Frankfurt's DAX Index has added 34.71 points or 0.67% to 5228.11
and Milan's S&P MIB Index is up by 259 points or 0.76% to 34,349. The
pan-European blue chip Dow Jones Stoxx 50 Index has gained 27.80 points or
0.85% to 3292.33.
* 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. HSBC's 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 capitalization 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 worldwide market demand, especially in China and
in Asia. The company says factory expansion will commence in the third
quarter of 2006.
* Punch Taverns has announced the proposed acquisition of Spirit Group,
with an acquisition value of 2.679 billion pounds. This will bring the
total number of pubs to over 9,500 from 8,200. Meanwhile, Punch Taverns
has sold 203 pubs to Admiral Taverns Limited for 40 million pounds, in
line with the company's stated intention to improve the overall quality of
the estate by the disposal of non-core pubs that do not fit its long-term
strategy.
* France's antitrust regulator has imposed a combined 534 million euros
fine on the country's three mobile network operators for colluding to
deter competition and stabilize their respective market shares from 1997
to 2003. In a statement, the antitrust authority said it would fine France
Telecom 256 million euros, Vivendi Universal's SFR 220 million euros, and
Bouygues' Bouygues Telecom 58 million euros.
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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