Thursday 8 December, 5:00 PM GMT (Thomson Financial): European markets
managed to recoup their intra-day losses and ended the trading session
slightly higher. Corporate news was light, but Royal Bank of Scotland said it
expected its full year results to be in line with market expectations, while
BT Group unveiled landmark deals, which would result in the launch of its
television over broadband services. Swiss Re announced the launch of a 1.0
billion Swiss francs mandatory convertible securities offering due 2008, while
Virgin Mobile's Board of Directors unanimously rejected a potential offer from
NTL.
In macroeconomic news, the Bank of England kept U.K. interest rates
unchanged at 4.5%.
London's FTSE-100 Index inched up by 2.30 points or 0.04% to 5531.10,
while Paris's CAC-40 Index rose by 9.35 points or 0.20% to 4669.93.
Frankfurt's DAX Index added 20.00 points or 0.38% to 5286.75 and Milan's S&P
MIB Index climbed by 78 points or 0.22% to 34,868. The pan-European blue chip
Dow Jones Stoxx 50 Index was slightly higher, by 2.46 points or 0.07% to
3349.10.
* Royal Bank of Scotland said it had continued to perform well in 2005 and its
results were expected to be in line with market expectations. Highlights are
expected to include good growth in income, good overall credit metrics and
delivery of the expected benefits from recent acquisitions.
* BT Group announced landmark deals with BBC Worldwide, Paramount and Warner
Music Group, which will launch BT's television services over broadband
service. Starting next autumn, BT customers will be able to access on-demand
film, music and television programming as well as an interactive and
communications service through their television sets.
* Swiss Re announced the launch of a 1.0 billion Swiss francs mandatory
convertible securities offering due 2008. The net proceeds of the offering
will be available to fund the acquisition of GE Insurance Solutions and for
general corporate purposes.
* Shares in German retailer KarstadtQuelle jumped after the company said it
had secured the sale of logistics properties for "considerably more than 400
million euros" and secured an additional 300 million euros in financing. At
the same time, the company said it would cut its debt to zero during 2006.
* Virgin Mobile's Board of Directors unanimously rejected a potential offer
from NTL on the grounds that it materially undervalued Virgin Mobile. The
company said that it had only considered the 323 pence per share offer price
announced by NTL, and that it did not consider any other price, nor did it
solicit any other price.
* On-line poker-company PartyGaming said its full year underlying profits and
revenues were expected to surpass market forecasts.
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
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SOURCE Thomson Financial Corporate Group
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