Monday 12 December, 5:00 PM GMT (Thomson Financial): European markets
ended the trading day in mixed territory as investors await tomorrow's
Federal Reserve decision on U.S. interest rates along with further hopes
that the rate hike cycle may be coming to an end. Meanwhile, crude oil
prices rose on the back of yesterday's oil distribution fire in the U.K.
The media sector led the upside with French broadcasters on the move as
the result of a possible tie-up of their French pay TV services. In the
banking sector, ABN Amro sold its 40.2% stake in Hungarian Kereskedelmi es
Hitelbank (K&H Bank) to KBC Bank, while Lloyds TSB Group said it was
continuing to make good progress in the delivery of its organic growth
strategies, in-line with market expectations.
Elsewhere, Roche identified 12 potential partners to enhance the
production and supply of its Tamiflu drug while Cobham's overall trading
performance in the second half of the year was consistent with the outlook
provided at the time of the interim results announcement.
London's FTSE-100 Index was down 15.90 points or 0.29% to 5501.50, while
Paris's CAC-40 Index was up 12.12 points or 0.26% to 4673.13. Frankfurt's
DAX Index was up 19.08 points or 0.36% to 5301.21 and Milan's S&P MIB
Index was up 75.0 points or 0.22% to 34886.0. The pan-European blue chip
Dow Jones Stoxx 50 Index was down 4.49 points or 0.13% to 3339.08.
* Shares in French broadcasters TF1, Vivendi Universal and Metropol
continued to trade higher on talks of a possible tie-up of their French
pay TV services. These negotiations related to a possible combination of
TPS and Canal+ Group, which would be in the best interest of current and
future subscribers and which would preserve the identities of the two
companies.
* KBC Bank and ABN Amro announced their joint intention regarding the sale
by ABN Amro of its 40.2% stake in Hungarian Kereskedelmi es Hitelbank (K&H
Bank) to KBC Bank, which will raise KBC's current shareholding from 59.4%
to 99.6%. The price of the 40.2% stake is set at 510 million euros.
* Lloyds TSB Group said it had continued to make good progress in the
delivery of its organic growth strategies, in-line with market
expectations. Further good progress was made in the growth of customer
assets and liabilities and, in the second half of 2005 to date, the
group's net interest margin has been broadly stable. Combined with
continued strong cost control, Lloyds TSB expects to deliver revenue
growth in excess of cost growth in each division. However, strong credit
quality continued to be offset, as expected, by higher impairment levels
in the unsecured consumer lending portfolios.
* Roche identified 12 potential partners to enhance the production and
supply of its Tamiflu drug, the lead product to combat bird flu. It also
granted a sub-license for China to Shanghai Pharmaceutical Group.
* U.K. aerospace and defence group Cobham's overall trading performance in
the second half of the year was consistent with the outlook provided at
the time of the interim results announcement. Meanwhile, the company won
two contracts, together worth over 90 million euros, to provide air
refuelling systems and Satcom antennas for the new tanker versions of the
A400M Military Transport Aircraft.
* Straumann Chief Executive Gilbert Achermann told the twice-weekly Finanz
und Wirtschaft, that he expects the dental implants maker to post sales
growth of 20% in local currencies for the full year.
* Vattenfall Group was reviewing U.K. power utilities as merger and
acquisition opportunities as part of its strategy to expand out of its
core Swedish market.
* Russia's Mobile TeleSystems (MTS) bought a 51% stake in Kyrgyzstan's
largest cellular operator, Bitel, for US$150 million from a number of
owners. MTS, the largest mobile operator by subscription in central and
Eastern Europe, has an option to buy the remaining 49% of the company and
plans to close the deal by the end of 2006.
* Swedish telecommunications equipment maker Ericsson signed a contract
with Baltic mobile operator BITE Group to supply second-generation and
third-generation mobile systems infrastructure in Lithuania and Latvia
until 2008. The value of the deal wasn't disclosed.
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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