Tuesday 6 December, 1:00 PM GMT (Thomson Financial): European markets are
trading higher, with the technology sector remaining ahead as Ericsson
secures a managed services agreement to manage U.K. operator 3's network
and information technology infrastructure, while Getronics wins an order
to supply NedTrain, a unit of Dutch Railways, with an information and
communications package designed for mobile workers. Meanwhile, retail
stocks are performing well after the U.K. Retail Consortium announced a
0.8% like-for-like rise in November sales from the same month a year ago.
In the banking sector, HBOS has issued a bullish trading statement while
Deutsche Bank has agreed to acquire the remaining 60% of United Financial
Group it does not already own. Elsewhere, TNT has said it is selling its
logistics business and initiating a 1 billion euros share repurchase,
while Bayer has reached agreements to settle a number of U.S. civil
antitrust actions, with a provision of 275 million euros set aside.
Peninsular & Oriental Steam Navigation has signed a joint venture
agreement with the Tan Thuan Industrial Promotion Company to develop and
operate a new container terminal in Vietnam, while U.K. commercial
broadcaster ITV has acquired community web site Friends Reunited.
In earnings news, Greene King has posted a first half pre-tax profit of
56.7 million pounds compared to 48.6 million pounds last year, while
Severn Trent Water has reported a rise in first half pre-tax profits to
164.4 million pounds from 138.9 million pounds in the prior year.
London's FTSE-100 Index is up by 15.00 points or 0.27% to 5525.40, while
Paris's CAC-40 Index has added 19.78 points or 0.43% to 4670.32. Frankfurt
's DAX Index is higher by 30.55 points or 0.58% to 5297.41 and Milan's S&P
MIB Index has risen by 159 points or 0.46% to 34,809. The pan-European
blue chip Dow Jones Stoxx 50 Index has gained 12.54 points or 0.38% to
3343.04.
* U.K. group HBOS has issued a bullish trading statement, with its full
year performance expected to exceed market expectations for underlying
earnings per share of 84.4 pence. The company said its current strategy of
targeting high single digit growth in lending was delivering stable
margins, adding that revenues are thriving from strong growth in insurance
and investment sales as well as from the continued strength of
non-interest income in its banking operations. Meanwhile cost growth
(excluding planned investments) is expected to be below 3% for the full
year and credit quality/provisioning is expected to be in line with
corporate guidance.
* Deutsche Bank has agreed to acquire the remaining 60% of United
Financial Group (UFG) it does not already own. The transaction is expected
to close in the first quarter of 2006 and the financial terms have not
been disclosed. Moscow-based UFG has established a leading position as a
full-service investment company for international and Russian clients.
* Dutch logistics and mail company TNT has unveiled a number of
initiatives in order to sharpen its strategic focus by selling its
logistics business and initiating a 1 billion euros share repurchase
program. Meanwhile, TNT has announced that its Express Division will
acquire TG+, a leading Spanish domestic distribution company, subject to
regulatory approval.
* German chemicals group Bayer has reached agreements in principle to
settle a number of U.S. civil antitrust actions claiming damages related
to its Polymers-Business. As a result, the company has set aside a
provision of 275 million euros in the fourth quarter of 2005 to cover
these settlements.
* Pharmaceuticals group Novartis has entered into a strategic alliance
with Astex Therapeutics, with a focus on the research, development, and
commercialization of novel cell cycle control drugs for the treatment of
cancer and other diseases. In addition, both parties have agreed to
establish a new drug discovery alliance focused on the identification of
novel inhibitors of other cell-cycle control enzymes.
* Swedish telecom equipment maker Ericsson has secured a managed services
agreement with U.K. 3G Operator 3 to manage the operator's network and
information technology infrastructure for the next seven years.
* Getronics has won an order to supply NedTrain, a unit of Dutch Railways
with an information and communications package designed for mobile
workers.
* Peninsular & Oriental Steam Navigation (P&O) has signed a joint venture
agreement with the Tan Thuan Industrial Promotion Company (IPC) to develop
and operate a new container terminal in Ho Chi Minh City, Vietnam. P&O
will own 80% of the Saigon Premier Container Terminal, to which IPC -
which holds the remaining 20% - will grant 43-year concession rights.
* ITV has acquired community web site Friends Reunited from its founders
and employees for up to 120 million pounds. A further payment of up to 55
million pounds may be made during 2009 based on earnings performance
targets.
* U.K. brewer and pub operator Greene King has posted a first half pre-tax
profit of 56.7 million pounds compared to 48.6 million pounds in the same
half last year, reflected by basic earnings per share of 26.8 pence
compared to 23.8 pence. Turnover has risen to 359.9 million pounds from
302.1 million pounds in the prior year and the interim dividend has been
raised to 5.8 pence per share from 5.225 pence previously. The company
said trading in its divisions remained in line with corporate guidance,
with like-for-like sales in Pub Company and Pub Partners up 1.4% and 2.2%
year-on-year and Brewing Company volume up 7% year-on-year in the 30 weeks
to November 27.
* U.K. utility group Severn Trent Water has reported a rise in first half
pre-tax profits to 164.4 million pounds compared to 138.9 million pounds
in the same half last year. Operating profit has grown to 281.3 million
pounds from 222.4 million pounds in the prior year, on turnover of 1.174
billion pounds compared to 1.038 billion pounds last year. The interim
dividend has been increased to 19.16 pence per share from 18.21 pence.
* Russian steelmaker Severstal says its third quarter consolidated net
profit under International Financial Reporting Standards has amounted to
US$224.9 million. Operating profit has reached US$352.7 million on
revenues of US$1.63 billion. No comparable results have been provided for
2004.
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
any questions please e-mail James Sang at james.sang@tfn.com. For more
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SOURCE Thomson Financial Corporate Group
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