Tuesday 13 December, 5:00 PM GMT (Thomson Financial): European markets
ended the trading session slightly higher, led by the oil & gas sector as
Royal Dutch Shell announced a capital investment programme of around US$19
billion for 2006. Elsewhere, Pernod Ricard signed an agreement to sell its
Dunkin' Brands unit for US$2.425 billion, while FirstGroup was awarded
both the Greater Western and Thameslink/Great Northern rail franchises in
a deal is worth over 1 billion pounds in revenue per annum.
Cadbury expects revenue growth to be around the top end of its range for
the year, while EMI Group reached an agreement to sell its CD and DVD
manufacturing business in Japan to a consortium led by Memory-Tech
Corporation. Finally, The European Court of Justice said the U.K. was
wrong to prohibit Marks & Spencer from deducting losses made in France,
Belgium and Germany if the company could not claim the losses in those
countries.
Finally, Germany's ZEW economic expectations index soared in December to
61.6 from 38.7 in November.
London's FTSE-100 Index inched higher by 5.70 points or 0.10% to 5,507.20,
while Paris's CAC-40 Index was up 20.27 points or 0.43% to 4,693.40.
Frankfurt's DAX Index was slightly higher by 9.07 points or 0.17% to
5,310.28 and Milan's S&P MIB Index was up by 86.0 points or 0.25% to
34,972.0. The pan-European blue chip Dow Jones Stoxx 50 Index was up by
6.85 points or 0.21% to 3,345.93.
* Royal Dutch Shell announced a capital investment programme for 2006 of
around US$19 billion in support of its strategy. Planned 2006 Upstream
investment was around US$15 billion, with the remaining investment in its
Downstream operations.
* Pernod Ricard signed an agreement to sell its Dunkin' Brands unit
together with other related assets to a consortium of buyers made up of
Bain Capital, The Carlyle Group and Thomas H. Lee Partners for US$2.425
billion. The sale of Dunkin' Brands is in line with the group's policy of
focusing on its core Wine & Spirits business.
* Cadbury Schweppes said trading had continued in line with expectations
since its last update in early October. It expects revenue growth to be
around the top end of its range for the year. Growth has been strong in
2005 in its confectionery business across the world and in its beverage
businesses in the Americas and Australia. The group benefited from
increased investment in growth, with innovation playing a significant role
in driving market share gains.
* Novartis said new data from a clinical study have showed that its Femara
drug led to 69% reduction in risk of breast cancer returning even years
after completing standard tamoxifen therapy. Meanwhile, studies also
showed that the potential use of its Glivec treatment for leukemia
demonstrated two-year disease free survival rates of up to 87% and
one-year overall survival of up to 84%.
* FirstGroup, the UK's largest surface transport company, was awarded both
the Greater Western and Thameslink/Great Northern franchises from the
Department for Transport. The deal is worth over 1 billion pounds in
revenue per annum and will commence operations on 1 April 2006.
* U.K. retailer Marks & Spencer was granted a 30 million pounds rebate
from its UK tax bill by the European Court of Justice. It said the U.K.
was wrong to prohibit the company from deducting losses made in France,
Belgium and Germany if the company could not claim the losses in those
countries. This now paves the way for other companies to offset foreign
losses against group profits if they can't get tax relief in those foreign
countries.
* Vodafone beat off five rivals to win the auction for Turkey's
second-largest wireless operator Telsim Mobil Telekomunikasyon with a
US$4.55 billion bid.
* EMI Group reached an agreement to sell its CD and DVD manufacturing
business in Japan to a consortium led by Memory-Tech Corporation. This
initiative represents the final major step in EMI's drive to outsource its
manufacturing capability, making these costs fully variable.
* British Energy reported operating profit of 135 million pounds for the
first half to 2 October and 58 million pounds for the second quarter to
that date, but has not provided year-on-year comparisons due to
restructuring. It posted earnings before interest, tax, depreciation and
amortisation (EBITDA) of 227 million pounds in the first half and 106
million pounds in the second quarter, with higher electricity prices
benefiting the company.
* France's telecommunications regulator said will force the country's
mobile-phone companies to slash wholesale tariffs by 24% from 2006, a move
that will cost the three network operators France Telecom, Vivendi
Universal and Bouygues Telecom an estimated 900 million euros in sales.
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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