Wednesday 7 December, 1:00 PM GMT (Thomson Financial): European markets
are trading mostly higher, led by the telecoms and basic resources
sectors. Vodafone Group is trading higher on better-than-expected mobile
phone subscriber data from its Japanese unit, while the Dutch government
has sold an 8% stake in Royal KPN.
In the banking sector, further restructuring within Credit Suisse is
expected to result in pre-tax synergy benefits of 1.3 billion Swiss francs
in 2008, while Standard Chartered says full year results are expected to
be in-line with corporate guidance.
In the transport sector, Stagecoach has posted first half pre-tax profits
of 54.9 million pounds compared to 59.3 million pounds in the same half
last year, while low cost airline easyJet says passenger traffic in
November grew to 2.297 million, up 8.3% year-on-year.
London's FTSE-100 Index has risen by 18.10 points or 0.33% to 5556.90,
while Paris's CAC-40 Index is higher by 5.87 points or 0.13% to 4683.07.
Frankfurt's DAX Index has slipped by 7.22 points or 0.14% to 5293.63 but
Milan's S&P MIB Index has added 99 points or 0.28% to 34,905. The
pan-European blue chip Dow Jones Stoxx 50 Index has gained 14.39 points or
0.43% to 3365.70.
* Shares in Vodafone Group are trading higher after its Japanese unit,
Vodafone KK released better-than-expected mobile phone subscriber data,
with users up by 57,000 to 15.053 million in November. Meanwhile, its 3G
mobile phone service subscriber base has recorded net additions of 186,500
last month, taking the total to 2.08 million.
* The Dutch government says it sold an 8% stake (equivalent to 165 million
ordinary shares) in telecommunications operator Royal KPN, adding that it
was planning to dispose of its golden share by the end of the year.
* Credit Suisse has announced that for 2008 it expects to generate total
pre-tax synergy benefits of 1.3 billion Swiss francs, including pre-tax
cost savings of 600 million Swiss francs. This would result in a positive
net income benefit of around 1.0 billion francs. Overall cost savings are
expected mainly in the areas of information technology, supply management
and real estate and services. In 2007, cost savings are expected to total
around 250 million francs pre-tax.
* Standard Chartered has stated in its latest trading update that it had
made progress going into the second half of 2005 and full year results are
expected to be in-line with corporate guidance. The bank added that income
momentum was robust and the integration of SC First Bank was ahead of
schedule.
* U.K. transport group Stagecoach has posted first half pre-tax profits of
54.9 million pounds compared to 59.3 million pounds in the same half last
year. Operating profit has dipped to 69.5 million pounds from 74.1 million
pounds last, while turnover has risen to 793 million pounds from 735.7
million pounds in the prior year.
* Low-cost carrier easyJet says that while it aims to grow its capacity,
measured in terms of available seats, by 15% this year, the first part of
the year will show a lower growth rate due to the comparison with growth
in excess of 25% this time last year. Meanwhile, passenger traffic in
November has grown to 2.297 million, up 8.3% year-on-year, while the load
factor has declined to 80.2% compared to 81.2% last year.
* Philips expects its Domestic Appliances and Personal Care (DAP) business
to become a substantially bigger and more valuable division at Philips,
with a long-term average annual organic growth rate of roughly 7% over the
next five years.
* Barclays has announced that Roger Davis has decided to resign from the
position of Chief Executive, U.K. Banking.
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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