Friday 2 December, 1:00 PM GMT (Thomson Financial): European markets
remain higher as investors await the release of U.S. employment data.
Corporate news is light, but of note, Nokia is providing some support to
the market after its capital markets day, while U.K. lender Alliance &
Leicester is also higher after saying it expected full-year results to
exceed market expectations.
London's FTSE-100 Index is up by 22.00 points or 0.40% to 5508.10, while
Paris's CAC-40 Index has risen by 5.93 points or 0.13% to 4642.39.
Frankfurt's DAX Index has climbed by 18.90 points or 0.36% to 5285.45 and
Milan's S&P MIB Index has gained 74 points or 0.21% to 34,659. The
pan-European blue chip Dow Jones Stoxx 50 Index is higher by 8.54 points
or 0.26% to 3331.91.
* Shares in Nokia remain higher following the telecom equipment
manufacturer's capital markets day. The company said it expected mobile
industry volumes in 2006 to be 10% higher than in 2005, adding that it was
targeting a 17% operating margin, with an operating margin of 17-18% for
Mobile Phones and Multimedia combined. At the same time, the company's
chief financial officer later said the firm enjoyed a 20% cost advantage
over its closest competitor.
* U.K. lender Alliance and Leicester also remains higher after saying in a
trading update that it expected its full-year core operating profit to be
above the average of 506 million pounds currently expected by the market.
The bank added that its total group revenues would be slightly higher than
last year, but added that operating costs were forecast to be
significantly below last year's 714 million pounds.
* On a weaker note, U.K. pubs firm Wolverhampton & Dudley is trading lower
after its full-year net profit tumbled to 3.5 million pounds, from 22.8
million pounds last year, weighed down by 30 million pounds of refinancing
costs. However, pre-tax profits before goodwill and exceptional items rose
to 90.1 million pounds from 77.7 million pounds before, as turnover
climbed by 7.4% to 551.8 million pounds. However, Chief Executive Ralph
Findlay said that trading conditions since the year-end were more subdued
due to weaker consumer confidence.
* Brewer Carlsberg said it had sold an 11.9% stake in South Korea's Hite
Brewery for 1.9 billion Danish kroner. The company added that it would use
the sale proceeds to cut its group debt. As a result, Carlsberg's stake in
Hite Brewery now stands at 13.1%.
* On the economics side, the Swedish Riksbank has left its interest rates
unchanged at 1.50%, saying that UND1X inflation was expected to rise
gradually and eventually be in line with the 2% target a couple of years
ahead, based on the market assumption that rates would rise at the
beginning of next year. However, the central bank added that it could not
rule out the possibility that rates would have to rise more than the
market was currently forecasting.
Olivier.Masson@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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