Wednesday 21 December, 10:15 AM GMT (Thomson Financial): European markets
are trading mildly higher, led by the basic resources and oil & gas sectors
and supported by some decent gains in the Far East on the back of a firming
U.S. Dollar.
In corporate news Royal Philips Electronics says its cathode ray tubes
business joint venture will book a one-time non-cash impairment charges of 418
million euros as the success of flat displays has increased the pressure on
demand and prices. Novartis has reiterated its commitment to pursuing and
completing its previously announced acquisition of Chiron while BAE Systems is
trading higher on speculation of an imminent order from the Saudi Arabian
government.
In the banking sector, Deutsche Bank has agreed to sell 21.16% in Atradius
while Banco Comercial Portugues has lost out to Erste Bank in winning the bid
in the privatisation of a majority stake in Romania's Banca Comercial Romana.
Meanwhile, Deutsche Bank Chief Execuitve Officer Josef Ackermann and his co-
defendants face a retrial in court with regards to receiving large payments
during Vodafone's takeover of Mannesmann.
Finally, the latest minutes from the Bank of England's Monetary Policy
Committee (MPC) has recorded an 8-1 vote to keep U.K. interest rates on hold.
One member of the MPC voted to reduce interest rates.
London's FTSE-100 Index is up 36.90 points or 0.67% to 5,584.80, while
Paris's CAC-40 Index is up 27.15 points or 0.58% to 4,730.63. Frankfurt's DAX
Index is up 24.66 points or 0.46% to 5,381.26 and Milan's S&P MIB Index is up
166.0 points or 0.47% to 35,704.0. The pan-European blue chip Dow Jones Stoxx
50 Index is up 15.26 points or 0.46% to 3,364.48.
* Royal Philips Electronics says LG.Philips Displays, the Cathode Ray
Tubes business-joint venture between Philips and LG Electronics, has
booked one-time non-cash impairment charges amounting to approximately
418 million euros and a cash charge of 42 million euros impairment
charges, which it will book in the fourth quarter of 2005. This is
because the success of flat displays has increased the pressure on
demand and prices for Cathode Ray Tubes.
* Novartis has reiterated its commitment to pursuing and completing its
previously announced acquisition of the approximately 56% of Chiron
Corporation that it does not already own on the terms of the merger
agreement entered into between the two parties in October.
* A German Federal Court of Justice Deutsche Bank has ruled that Deutsche
Bank Chief Execuitve Officer Josef Ackermann and his co-defendants will
be retried in court with regards to receiving large payments during
Vodafone's takeover of Mannesmann.
* Meanwhile, Deutsche Bank has agreed to sell 21.16% in Atradius, the
Amsterdam based credit insurer, to Credito y Caucion, based in Madrid,
and Seguros Catalana Occidente, based in Barcelona for 208 million
euros. Following the transaction, Deutsche Bank will retain a 12.73%
stake in Atradius.
* Shares in Banco Comercial Portugues have opened sharply higher on
relief that it has failed to win the bidding in the privatisation of a
majority stake in Romania's Banca Comercial Romana (BCR), and therefore
the avoidance of a substantial rights issue. Instead, Austria's Erste
Bank has won the right to buy 61.88% of BCR for 3.75 billion euros.
* U.K. marketing services group Aegis Group says after eleven months of
trading, its underlying results remain in line with expectations. This
has been accomplished despite slightly weaker than expected growth in
advertising expenditure and strong price competition in traditional
media markets. Offsetting these factors, however, are better-than-
expected growth in its specialist media businesses and first time
contributions from acquisitions made earlier in the year.
* BAE Systems is trading higher on speculation of an imminent order for
Eurofighter aircraft from the Saudi Arabian government.
Simon.Tse@Thomson.com; Thomson Financial
This is Thomson Financial Corporate Services Europe Market Commentary. The
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SOURCE Thomson Financial Corporate Group
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