Tuesday 6 December, 5:00 PM GMT (Thomson Financial): European markets
ended the trading session higher, led by the technology sector after major
contracts were secured by Ericsson and Getronics, coupled with a brokerage
upgrade to LogicaCMG. Telecom stocks also did well, led by eircom and
Telecom Italia, while retail stocks received a welcomed boost after the
British Retail Consortium announced a 0.8% like-for-like rise in November
sales from the same month a year ago. Shares in Next were also supported
by favorable brokerage comments, which suggested the recent spell of cold
weather could further boost sales.
In the banking sector, HBOS dominated proceeding with a bullish trading
statement while Deutsche Bank agreed to acquire the remaining 60% of
United Financial Group it does not already own. Elsewhere, TNT said it was
divesting its logistics business and initiating a 1 billion euros share
repurchase, while Bayer settled a number of U.S. civil antitrust actions,
with a provision of 275 million euros set aside. Peninsular & Oriental
Steam Navigation 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 acquired
community web site Friends Reunited.
In earnings news, Greene King recorded a first half pre-tax profit of 56.7
million pounds compared to 48.6 million pounds last year, while Severn
Trent Water posted 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 rose by 28.40 points or 0.52% to 5538.80, while
Paris's CAC-40 Index added 26.66 points or 0.57% to 4677.20. Frankfurt's
DAX Index ended up by 33.99 points or 0.65% to 5300.85 and Milan's S&P MIB
Index climbed by 156 points or 0.45% to 34,806. The pan-European blue chip
Dow Jones Stoxx 50 Index gained 20.81 points or 0.62% to 3351.31.
* U.K. group HBOS 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 were 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.
* Swedish telecom equipment maker Ericsson 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 won an order to supply NedTrain, a unit of Dutch Railways with
an information and communications package designed for mobile workers.
* Deutsche Bank 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 were not disclosed.
Moscow-based UFG established a leading position as a full-service
investment company for international and Russian clients.
* Dutch logistics and mail company TNT 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
announced that its Express Division will acquire TG+, a leading Spanish
domestic distribution company, subject to regulatory approval.
* German chemicals group Bayer 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 set aside a provision of 275
million euros in the fourth quarter of 2005 to cover these settlements.
* Peninsular & Oriental Steam Navigation (P&O) 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 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 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 rose to 359.9 million pounds from 302.1
million pounds in the prior year and the interim dividend was 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 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 grew 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
was increased to 19.16 pence per share from 18.21 pence.
* Russian steelmaker Severstal said its third quarter consolidated net
profit under International Financial Reporting Standards has amounted to
US$224.9 million. Operating profit reached US$352.7 million on revenues of
US$1.63 billion. No comparable results were 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
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SOURCE Thomson Financial Corporate Group
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