Wednesday 7 December, 5:00 PM GMT (Thomson Financial): European markets
gave up their intra-day gains to end the trading session lower after indices
flirted with multi-year highs. The telecoms managed to buck the trend, led by
Vodafone on better-than-expected mobile phone subscriber data from its
Japanese unit, while the Dutch government 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 said it expected its full year results to be
in-line with corporate guidance. In the transport sector, low cost airline
easyJet said passenger traffic in November grew to 2.297 million, up 8.3%
year-on-year, while Air France KLM said traffic rose by 12.2% year-on-year in
November, while capacity was up by 8.0%
London's FTSE-100 Index fell by 10.00 points or 0.18% to 5528.80, while
Paris's CAC-40 Index dropped by 16.62 points or 0.36% to 4660.58. Frankfurt's
DAX Index declined by 34.10 points or 0.64% to 5266.75 and Milan's S&P MIB
Index slipped by 16 points or 0.05% to 34,790. The pan-European blue chip Dow
Jones Stoxx 50 Index weakened by 4.67 points or 0.14% to 3346.64.
* Shares in Vodafone Group ended 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 recorded net additions of 186,500 last month, taking the total
to 2.08 million.
* The Dutch government 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 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 stated in its latest trading update that it had made
progress going into the second half of 2005 and full year results were
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 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 dipped to 69.5 million pounds from 74.1 million pounds last,
while turnover grew to 793 million pounds from 735.7 million pounds in the
prior year.
* Low-cost carrier easyJet said that while it was aiming to grow its capacity
by 15% this year, the first part of the year would show a lower growth rate
due to the comparison with growth in excess of 25% this time last year.
Meanwhile, passenger traffic in November grew by 8.3% year-on-year to 2.297
million, but the load factor declined to 80.2% compared to 81.2% last year.
* Air France KLM said traffic rose by 12.2% year-on-year in November, while
capacity was up by 8.0% and passengers carried rose by 9.2%, lifting the load
factor by 2.9 points to 78.6%. Load factors rose on routes to the Americas, to
Asia, to Africa & the Middle East and on the European network, but on the
Caribbean and Indian Ocean sector, the load factor slipped.
* U.K. utility group Northumbrian Water's interim pre-tax profit rose to 64.3
million pounds from 41.8 million pounds in the same period last year, while
revenues rose to 295.3 million pounds, thanks to a 9.9% rise in water and
sewerage bills. The company lifted its interim dividend to 3.52 pence per
share from 2.87 pence before and also paid a 2.82 pence special dividend
following the sale of subsidiaries.
* EDP said it had agreed to sell its 14.3% stake in GALP Energia to Americo
Amorim Group for 720.5 million euros, valuing GALP at 5.05 billion euros. The
company said Amorim had already paid 20% of the purchase price, with the
balance due by 30 January 2006, and that it would book a 398 million euros
after tax gain from the sale.
* 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 announced that Roger Davis had decided to resign from the position
of Chief Executive, U.K. Banking as part of senior management shake-up.
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 information
about Thomson Financial, please visit our web site at
http://www.thomsonfinancial.com. For more financial information at your fingertips,
please visit http://www.irchannel.com.
SOURCE Thomson Financial Corporate Group
back to top
