European Indexes End Mostly Lower

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The cause of the crash is not yet determined, however local media said the left engine caught fire as the plane reached 60m and then crashed. In earnings, FRONTLINE (-5.90%) published poor 2Q numbers with EBIT of US$327m and net income of US$318.4m below forecasts. FLSMIDTH (-10.20%) released 1H numbers with EBIT of DKK977m missing forecasts. In M&A news, Fortis is selling its 49% stake in Chinese asset management j/v ABN Amro TEDA Fund Management to OLD MUTUAL (-1.33%) for c.EUR 165m in cash. The new j/v between ERICSSON (+2.13%) and STM will be a significant challenge and signals difficult times for the industry, DI writes. In analyst recommendations, S&P ER downgraded TOPDANMARK (+0.44%) to sell, while Handelsbanken cut its rating for ROYAL CARIBBEAN (-3.17%) to accumulate, and JP Morgan trimmed its target for SWEDISH MATCH (-1.80%).

AMSTERDAM

The AEX (-0.59%) closed in the red as concerns over financials persisted. US indices were trading lower on credit woes and a surge in crude price. WTI jumped above US$121/bbl. On the macro front, EU flash August manufacturing PMI comes in at 47.5 and services PMI at 48.2, vs 47.4 and 48.2 respectively in July. In earnings, HEIJMANS (-11.62%) plunged after its 1H net profit plummeted by 90% to EUR 2m, and the group gave no FY outlook. BOSKALIS (+8.61%) turned in a forecast-beating 40% jump in 1H profit. GRONTMIJ (-2.53%) reported an ahead-of-forecast 20% rise in 1H net income and reiterated its FY outlook. UNIT 4 AGRESSO (+1.49%) posted a 29% gain in 1H EBITDA, in line with estimates. In M&A news, FORTIS (-3.4%) is selling its 49% stake in Chinese asset management company ABN Amro TEDA to Old Mutual for c.EUR 165m in cash. Publishing house Gruner & Jahr reportedly confirmed its interest in the trade magazines unit that REED ELSEVIER (+0.37%) is looking to sell. Among broker changes: UBS lowered price target on ING GROEP (-2.75%) as it increased the risk allowance following a EUR 2.2bn rise in subprime investments in 2Q08. ING upgraded TEN CATE (+4.44%) to buy from hold on a strong 1H and a rise in net profit outlook. ING cut its target on HEINEKEN (-1.81%) citing expectations of a weak 1H08.

This content is written by S&P MarketScope Europe (EMS), an equity newswire. Reporters are: Pawan Girglani, Emma Gonzalez, Julien Manrique, Sara Oscarsson, Rocio Opazo-Aniotz, Gaurav Panchal, Claudia Perotti, Michael Sanderson, Emma Stevenson, John West, Isabell Witt .