Wednesday 14 December, 10:15 AM GMT (Thomson Financial): European markets
have opened lower despite the U.S. Federal Reserve's favourable language,
which suggests an end to the interest rate hike cycle in the near future.
While interest rates have been raised by 25 basis points to 4.25%, the
accompanying statement has pleased investors with the removal of the
phrase "accommodative" in reference to the bank's monetary outlook.
In corporate news, Bouygues has announced a 26% year-on-year rise in
nine-month net profits, with raised full year guidance, while VNU expects
its 2005 earnings per share to be in line with its previous guidance. Puma
is trading higher after a report in the Handelsblatt newspaper suggests
core shareholders are mulling over the possibility of making an offer for
the German sporting goods group, while GUS says its Experian unit has
acquired PriceGrabber.com, a leading provider of online comparison
shopping services in the U.S. for US$485 million.
London's FTSE-100 Index is inching higher by 0.20 points to 5,507.40,
while Paris's CAC-40 Index is down 14.58 points or 0.31% to 4,678.82.
Frankfurt's DAX Index is down 24.12 points or 0.45% to 5,286.16 and
Milan's S&P MIB Index is down 37.0 points or 0.11% to 34,935. The
pan-European blue chip Dow Jones Stoxx 50 Index is down 16.13 points or
0.48% to 3,329.77.
* French conglomerate Bouygues has announced a net profit of 648 million
euros in the first nine months of 2005 versus 516 million euros last year,
up 26%. Operating profit has risen to 1.357 billion euros versus 1.168
billion euros last year, on sales worth 17.84 billion euros versus 15.608
billion euros last year. Looking ahead, its sales target for full-year
2005 has been raised again to 24 billion euros from the 23.6 billion euros
figure previously announced. As a result of a favourable business outlook
for 2006, the group intends to increase its staff numbers and recruit
14,000 people, including 8,000 in France.
* Information and media group VNU expects its 2005 earnings per share to
be in line with its previous guidance of 0.85 to 0.90 euros, as its
businesses continue their overall solid performance in the second half.
Revenues are projected to be up midway between 5% and 6%, driven by a
double-digit increase from the Media Measurement & Information group. The
company said that while most of its businesses are performing well,
revenue growth overall will be slightly below VNU's previous guidance of
approximately 6%, due to difficult economic conditions in Europe. Finally,
VNU says it has received expressions of interest from various parties
regarding a possible acquisition of the company.
* Puma is trading higher after a report in the Handelsblatt newspaper
suggests core shareholders are mulling over the possibility of making an
offer for the German sporting goods group. Guenter and Daniela Herz,
former co-owners of the German coffee retail chain Tchibo have a 25.27%
stake in Puma.
* U.K. retail and business services group GUS, has announced that its
Experian unit has acquired PriceGrabber.com, a leading provider of online
comparison shopping services in the U.S for US$485 million.
* Autoroutes du Sud de la France says the French government has chosen
construction group Vinci to purchase the government's stake in the
toll-road concession holder. Meanwhile, a consortium led by rival Eiffage
has been chosen by the government to win the Autoroutes Paris-Rhin-Rhone
concession.
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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