European indexes gained on a relatively light news day Monday. Wall Street also traded comfortably higher, with US markets closing early for the Independence Day holiday. Key on the European agenda this week are the European Central Bank and Bank of England interest rate setting meetings on Thursday, with both expected to keep rates unchanged at 2.75% and 4.50%, respectively.
Germany: The Xetra-Dax index (+0.52%) ended Monday's session firmly on positive ground. In Frankfurt, CEO Ackermann said in an interview with FAS that Deutsche Bank (DB) (+0.45%) is interested in making more acquisitions after last month agreeing to buy Berliner Bank.
VW's (+0.67%) US brand car sales rose 5.5% in June. After showing an interest in London's City Airport, Hochtief (+1.06%) is now understood to be eyeing Zurich's Unique Airport. IVG (+0.25%) has sold €300 million worth of industrial assets to private UK group Scarborough Continental Partners, with the deal to be finalized next month.
Schwarz Pharma (+0.17%) has filed for EU approval of its Neupro patch in combination with levodopa for treating advanced Parkinson's disease. Altana (AAA)(-0.62%) cut prices of its Pantoprazole stomach ulcer drug on July 1, by some 30%, responding to the government's pricing regulations. The cut was already taken into account in the group's 2006 earnings forecast, which it plans to keep, reportedly. On the broker front, UBS cut its target on Altana's stock to €50.
UK: The FTSE 100 ended the day on a positive note, helped by oil and miners, while M&A activity boosted retailers. BP (BP)(+1.19%) gained as crude prices moved higher. The oil major shrugged off news of a fall in second quarter production to 4,010 million barrels. On the downside, BAE Systems (-3.25%) slipped on a lower-than-expected valuation of its 20% stake in Airbus at £1.9 billion. Cairn (-1.82%) fell after cutting its first half 2006 production target.
SAB Miller (+1.23%) rose on news of it buying the Sparks and Steel Reserve brands in a US$215 million deal. Northern Rock (+4.05%) topped the index on talk of a merger with Bradford & Bingley (+0.97%). Retailers saw gains on reports that a private equity consortium is planning a £6 billion bid for Morrison (+3.73%).
In the broader market, Matalan (+3.55%) rallied on talk that chairman John Hargreaves could launch an offer at £1.70 to £1.80, valuing the group at £735 million. Misys (+5.93%) jumped on reports that it could be the target of two more bids.
EMI (+1.07%) is readying itself to raise its offer for Warner Music (WMG) to US$33/share. On the broker front, Jardine Lloyd (+7.66%) was boosted by a Morgan Stanley upgrade to equal weight, partly based on the potential EPS accretion from a possible Heath Lambert buy.
France: The CAC 40 index finished on a 14 points advance. In Paris, shares of EADS (-0.80%) fell after the valuation of BAE Systems' 20% stake in Airbus came in at €2.75 billion, much lower than expected. Investors also mulled news that Airbus president Noel Forgeard has been replaced by Louis Gallois, current EADS board member and former head of SNCF.
The board of Renault (+0.24%) met to discuss a proposal by GM (GM) for a three-way merger with Nissan. The brokers warned of short-term risks to the execution of Renault's 2009 plan if Carlos Ghosn gets involved in talks with the US car marker.
PSA (+1.36%) was the largest gainer. It reported that sales at its China venture rose 38% in the first half of 2006. Danone (DA) (unch.) bought a 22.2% stake in the market leader for fruit juice in China. Shares of TF1 (+1.14%) enjoyed France's success in the World Cup. Euronext (+0.41%) posted a 52% rise in first half cash sales. S&P Ratings Services upgraded Rhodia's (+4.49%) long-term rating to B+.
Elsewhere: The SP/MIB index ended the day solidly in the black. In Milan, Seat (+3.21%) benefited from the liberalization decree promoted by the Prodi government which, among other things, ends the prohibition on private professionals (such as doctors, lawyers, solicitors, etc.) from promoting themselves through advertising in directories or newspapers, domestic sources highlighted. Lottomatica was marked 1.99% higher on the back of the introduction of a new lottery game, 'Lotto Istantaneo', in July.
Nordic markets diverged. Oslo significantly outperformed as crude oil prices traded at eight-week highs in London, but Stockholm was flat, weighed down by Ericsson (-0.84%).
Soren Billing, Pawan Girglani, Julien Manrique, Mariella Mongio, Rocio Opazo-Aniotz, Guarav Panchal, Michael Sanderson, Emma Stevenson, Valerie Vidal; Alex Halperin (BusinessWeek Online)
All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure
Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
BW MALL
SPONSORED LINKS
VMware Fusion 3
The Best Way to Run Windows on Your Mac, Only $79.99
Printer-Friendly Version