Wednesday 21 December, 1:00 PM GMT (Thomson Financial): European markets
are treading in positive territory ahead of the opening session on Wall
Street, led by the chemicals, oil & gas and basic resources sectors.
In corporate news Royal Philips Electronics says its cathode ray tubes
business joint venture will book a one-time non-cash impairment charge 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 privatization of a majority stake in Romania's Banca Comercial Romana.
Meanwhile, Deutsche Bank Chief Executive 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 32.20 points or 0.58% to 5,580.10, while
Paris's CAC-40 Index is up 28.80 points or 0.61% to 4,732.28. Frankfurt's DAX
Index is up 23.79 points or 0.44% to 5,380.39 and Milan's S&P MIB Index is up
205.0 points or 0.58% to 35,743.0. The pan-European blue chip Dow Jones Stoxx
50 Index is up 12.57 points or 0.38% to 3,361.79.
* 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 has ruled that Deutsche Bank Chief
Executive 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 privatization 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.
* Shares in BAE Systems are making further gains on speculation of an imminent
order for Eurofighter aircraft and upgrades to its existing Tornado aircraft
from the Saudi Arabian government.
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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