French stocks advanced, led by Schneider Electric SA, Societe Generale SA and BNP Paribas SA.
The CAC 40 Index gained 45.54, or 0.8 percent, to 5606.75 at 10:21 a.m. in Paris. The SBF 120 Index rose 1 percent.
Schneider, the world's biggest maker of circuit breakers, added 3.39 euros, or 3.7 percent, to 94.61 euros. The company raised financial targets for a new business unit grouping MGE UPS Systems and U.S. acquisition American Power Conversion, citing higher demand and integration of acquisitions.
Societe Generale and BNP, respectively France's third- largest and biggest banks, climbed after U.S. stocks yesterday completed the largest two-day gain in five years, led by financial shares, on expectations of another interest-rate cut from the Federal Reserve.
``A rate cut would mean a much more favorable situation for bank stocks,'' Laurent Vallee, who helps manage about 5 billion euros ($7.4 billion) at Richelieu Finance in Paris, said in an interview.
Societe Generale rose 2.77 euros, or 2.7 percent, to 103.79 euros. BNP gained 1.62 euros, or 2.2 percent, to 76.05 euros.
The following stocks rose or fell in Paris. Symbols are in parentheses.
Eurofins Scientific SA (ERF FP), a French provider of food and drug tests, climbed 4.95 euros, or 7.2 percent, to 73.9 euros. Exane BNP Paribas raised its rating on Eurofins to ``outperform'' from ``neutral'' with its price target increased to 85 euros from 80 euros.
pennystockforum.org
четверг, 29 ноября 2007 г.
DAX Rises for Second Day, Led by Hypo Real; Conergy Shares Jump
Germany's benchmark DAX Index rose for a second day, led by Hypo Real Estate Holding AG, after U.S. stocks staged the biggest two-day rally in five years.
Conergy AG jumped after Deutsche Bank AG raised its recommendation on the stock.
The DAX Index increased 51.68, or 0.7 percent, to 7,775.34 at 9:54 a.m. in Frankfurt. DAX futures expiring in December gained 28, or 0.4 percent, to 7,778. The HDAX Index of the country's 110 biggest companies increased 0.8 percent.
``One has to keep in mind where these stocks come from, they have been oversold over the past months,'' said Matthias Jasper, head of equities at WGZ Bank in Dusseldorf.
U.S. stocks yesterday rose on expectations for another interest rate cut. The Dow Jones Europe Stoxx Banks Index climbed 1.4 percent.
Hypo Real Estate gained 1.55 euros, or 4.4 percent, to 37 euros. Commerzbank AG, Germany's second-largest lender, rose 40 cents, or 1.6 percent, to 25.94 euros. Allianz SE, Europe's largest insurer, climbed 2.29 euros, or 1.7 percent, to 141.26 euros. Deutsche Bank AG and Munich RE also added advanced.
Conergy rallied 3.40 euros, or 15 percent, to 25.80 euros. Deutsche Bank AG raised its recommendation of Germany's largest solar power company from its recommendation from ``sell'' to ``hold,'' citing 8 million euros worth of insider buying in the share by Otto Happel and three board members.
pennystockforum.org
Conergy AG jumped after Deutsche Bank AG raised its recommendation on the stock.
The DAX Index increased 51.68, or 0.7 percent, to 7,775.34 at 9:54 a.m. in Frankfurt. DAX futures expiring in December gained 28, or 0.4 percent, to 7,778. The HDAX Index of the country's 110 biggest companies increased 0.8 percent.
``One has to keep in mind where these stocks come from, they have been oversold over the past months,'' said Matthias Jasper, head of equities at WGZ Bank in Dusseldorf.
U.S. stocks yesterday rose on expectations for another interest rate cut. The Dow Jones Europe Stoxx Banks Index climbed 1.4 percent.
Hypo Real Estate gained 1.55 euros, or 4.4 percent, to 37 euros. Commerzbank AG, Germany's second-largest lender, rose 40 cents, or 1.6 percent, to 25.94 euros. Allianz SE, Europe's largest insurer, climbed 2.29 euros, or 1.7 percent, to 141.26 euros. Deutsche Bank AG and Munich RE also added advanced.
Conergy rallied 3.40 euros, or 15 percent, to 25.80 euros. Deutsche Bank AG raised its recommendation of Germany's largest solar power company from its recommendation from ``sell'' to ``hold,'' citing 8 million euros worth of insider buying in the share by Otto Happel and three board members.
pennystockforum.org
пятница, 23 ноября 2007 г.
Switzerland Stocks Update: SMI Index Rises 18.45 to 8,245.56
Switzerland's benchmark stock index, the Swiss Market Index, rose 0.22 percent at 9:05 a.m.
The index of 20 stocks traded on the Electronic Bourse System rose 18.45 to 8,245.56. Among the stocks in the index, 11 rose, 7 fell and 2 were unchanged.
Gains in the Swiss Market Index were led by Novartis Ag, Ubs Ag and Nestle Sa. About 0.93 million shares traded in the Swiss Market Index.
pennystockwatch.org
The index of 20 stocks traded on the Electronic Bourse System rose 18.45 to 8,245.56. Among the stocks in the index, 11 rose, 7 fell and 2 were unchanged.
Gains in the Swiss Market Index were led by Novartis Ag, Ubs Ag and Nestle Sa. About 0.93 million shares traded in the Swiss Market Index.
pennystockwatch.org
U.K. Stocks Update: FTSE 100 Little Changed at 6,160.70
The U.K.'s benchmark stock index, the FTSE 100, rose 0.09 percent at 8:05 a.m.
The index of 102 stocks traded on the London Stock Exchange rose 5.40 to 6,160.70. Among the stocks in the index, 47 rose, 50 fell and 5 were unchanged.
Gains in the FTSE 100 were led by Anglo American Plc (Aal Ln), Hsbc Holdings Plc (Hsba Ln) and Tesco Plc (Tsco Ln). About 8.36 million shares traded in the FTSE 100.
pennystockwatch.org
The index of 102 stocks traded on the London Stock Exchange rose 5.40 to 6,160.70. Among the stocks in the index, 47 rose, 50 fell and 5 were unchanged.
Gains in the FTSE 100 were led by Anglo American Plc (Aal Ln), Hsbc Holdings Plc (Hsba Ln) and Tesco Plc (Tsco Ln). About 8.36 million shares traded in the FTSE 100.
pennystockwatch.org
среда, 21 ноября 2007 г.
Arcandor AG, Leica Camera, RWE AG: German Equity Preview
The following is a list of companies whose shares may have unusual price changes in Germany. Stock symbols are in parentheses after company names. Share prices are from the last close.
The X-DAX Index fell 0.4 percent to 7601.69. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX advanced 1.6 percent to 7,630.31.
Arcandor AG (ARO GY): The company's Thomas Cook AG unit plans to hold a presentation for analysts and investors to discuss its strategy. Arcandor shares added 24 cents, or 1.2 percent, to 20.29 euros.
Leica Camera AG (LCA1 GY): The maker of photographic equipment's general meeting decided on the buyout of minority shareholders. The shares added 0.1 percent to 12.31 euros.
RWE AG (RWE GY): Germany's second-largest utility plans a press conference, according to Boersen-Zeitung. The shares climbed 1.52 euros, or 1.7 percent, to 91.79 euros.
microcapreview.org
The X-DAX Index fell 0.4 percent to 7601.69. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX advanced 1.6 percent to 7,630.31.
Arcandor AG (ARO GY): The company's Thomas Cook AG unit plans to hold a presentation for analysts and investors to discuss its strategy. Arcandor shares added 24 cents, or 1.2 percent, to 20.29 euros.
Leica Camera AG (LCA1 GY): The maker of photographic equipment's general meeting decided on the buyout of minority shareholders. The shares added 0.1 percent to 12.31 euros.
RWE AG (RWE GY): Germany's second-largest utility plans a press conference, according to Boersen-Zeitung. The shares climbed 1.52 euros, or 1.7 percent, to 91.79 euros.
microcapreview.org
Carbone Lorraine, Ubisoft, Vinci: French Equity Preview
The following is a list of companies whose shares may move in Paris trading tomorrow. Stock symbols are in parentheses after company names. Share prices are from the last close.
The CAC 40 Index gained 74.11, or 1.4 percent, to 5,506.68. The SBF 120 Index also rose 1.2 percent.
Carbone Lorraine SA (CRL FP) and Faiveley SA (LEY FP): Carbone Lorraine, the world's biggest maker of brushes for electric motors, said it's in advanced talks with Faiveley to dispose of its rail and motorcycle braking activities. Carbone shares fell 91 cents, or 1.9 percent, to 47.37 euros. Faiveley shares lost 1.15 euros, or 2.4 percent, to 47 euros.
Teleperformance SA (RCF FP): The call-center operator said it bought 100 percent of H-Tel Holdings from Carlyle Group. It also forecast ``strong'' growth in 2008, with profit rising 13 percent to 107 million euros. The shares gained 75 cents, or 3.3 percent, to 23.62 euros.
Ubisoft Entertainment SA (UBI FP): Europe's second-largest maker of video games reported a first-half profit of 30.6 million euros on a gain from selling stock in Gameloft and demand for games playable on Nintendo Co.'s DS console and Sony Corp.'s PlayStation 3. The shares rose 1.74 euros, or 3.3 percent, to 55.3 euros.
Vinci SA (DG FP): Groups led by the world's largest construction company won road and railway contracts in the Czech Republic together valued at 600 million euros ($887 million). Vinci shares gained 1.5 euros, or 2.8 percent, to 55.17 euros.
microcapreview.org
The CAC 40 Index gained 74.11, or 1.4 percent, to 5,506.68. The SBF 120 Index also rose 1.2 percent.
Carbone Lorraine SA (CRL FP) and Faiveley SA (LEY FP): Carbone Lorraine, the world's biggest maker of brushes for electric motors, said it's in advanced talks with Faiveley to dispose of its rail and motorcycle braking activities. Carbone shares fell 91 cents, or 1.9 percent, to 47.37 euros. Faiveley shares lost 1.15 euros, or 2.4 percent, to 47 euros.
Teleperformance SA (RCF FP): The call-center operator said it bought 100 percent of H-Tel Holdings from Carlyle Group. It also forecast ``strong'' growth in 2008, with profit rising 13 percent to 107 million euros. The shares gained 75 cents, or 3.3 percent, to 23.62 euros.
Ubisoft Entertainment SA (UBI FP): Europe's second-largest maker of video games reported a first-half profit of 30.6 million euros on a gain from selling stock in Gameloft and demand for games playable on Nintendo Co.'s DS console and Sony Corp.'s PlayStation 3. The shares rose 1.74 euros, or 3.3 percent, to 55.3 euros.
Vinci SA (DG FP): Groups led by the world's largest construction company won road and railway contracts in the Czech Republic together valued at 600 million euros ($887 million). Vinci shares gained 1.5 euros, or 2.8 percent, to 55.17 euros.
microcapreview.org
понедельник, 19 ноября 2007 г.
German Stocks Fall, Led by Allianz, Munich Re; Postbank Gains
German stocks dropped, led by Allianz SE and Munich Re after Swiss Reinsurance Co., the world's largest reinsurer, posted a loss of 1.2 billion Swiss francs ($1.07 billion) on two credit-default swaps.
Deutsche Postbank AG advanced after Frankfurter Allgemeine Zeitung reported the country's largest bank by clients may be sold.
The benchmark DAX Index dropped 16.08, or 0.2 percent, to 7,596.18 at 11:01 a.m. in Frankfurt. DAX futures expiring in December decreased 17.5, or 0.2 percent, to 7,624. The HDAX Index of the country's 110 biggest companies also lost 0.2 percent.
``Stocks are not en vogue as an asset class at the moment,'' said Michael Scholz, an equity strategist at WestLB AG in Dusseldorf, Germany. ``The trading pattern over the past ten days has confirmed a down trend. If the DAX doesn't rise above 7,680 this week sentiment will remain negative.''
Deutsche Boerse AG's Xetra electronic trading system was halted for about one hour today because of technical problems.
Allianz, Europe's largest insurer, lost 2.34 euros, or 1.7 percent, to 139.43 euros. Munich Re, the world's second-biggest reinsurer, dropped 1.26 euros, or 1 percent, to 119.74 euros.
Swiss Re said today it designed the credit-default swaps to provide protection for clients against declines in the value of investment portfolios consisting mostly of mortgage-related securities.
Deutsche Postbank gained 2.30 euros, or 4.4 percent, to 54.99 euros. Owner Deutsche Post AG sees a ``line'' of potential buyers for the bank, Frankfurter Allgemeine Zeitung reported, citing an interview with Chief Executive Officer Klaus Zumwinkel. Deutsche Post climbed 24 cents, or 1.1 percent, to 22.41 euros.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
pennystockadvise.com
Deutsche Postbank AG advanced after Frankfurter Allgemeine Zeitung reported the country's largest bank by clients may be sold.
The benchmark DAX Index dropped 16.08, or 0.2 percent, to 7,596.18 at 11:01 a.m. in Frankfurt. DAX futures expiring in December decreased 17.5, or 0.2 percent, to 7,624. The HDAX Index of the country's 110 biggest companies also lost 0.2 percent.
``Stocks are not en vogue as an asset class at the moment,'' said Michael Scholz, an equity strategist at WestLB AG in Dusseldorf, Germany. ``The trading pattern over the past ten days has confirmed a down trend. If the DAX doesn't rise above 7,680 this week sentiment will remain negative.''
Deutsche Boerse AG's Xetra electronic trading system was halted for about one hour today because of technical problems.
Allianz, Europe's largest insurer, lost 2.34 euros, or 1.7 percent, to 139.43 euros. Munich Re, the world's second-biggest reinsurer, dropped 1.26 euros, or 1 percent, to 119.74 euros.
Swiss Re said today it designed the credit-default swaps to provide protection for clients against declines in the value of investment portfolios consisting mostly of mortgage-related securities.
Deutsche Postbank gained 2.30 euros, or 4.4 percent, to 54.99 euros. Owner Deutsche Post AG sees a ``line'' of potential buyers for the bank, Frankfurter Allgemeine Zeitung reported, citing an interview with Chief Executive Officer Klaus Zumwinkel. Deutsche Post climbed 24 cents, or 1.1 percent, to 22.41 euros.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
pennystockadvise.com
U.K. Stocks Decline, Paced by Vodafone; Northern Rock, A&L Fall
U.K. stocks dropped, led by Vodafone Group Plc and Northern Rock Plc. Anglo American Plc paced a retreat in the shares of mining companies as copper fell to the lowest in more than 8 months.
Standard Chartered Plc advanced after the Financial Times reported China's three largest banks are interested in buying a stake in the company. Barratt Developments Plc also increased.
The FTSE 100 Index lost 20.3, or 0.3 percent, to 6,270.9 at 10:08 a.m. in London. The FTSE All-Share Index also declined 0.3 percent, to 3,215.05. Ireland's ISEQ Index fell 0.1 percent to 6,959.19.
Vodafone, the world's largest mobile-phone company, retreated 1 percent to 189.4.
Northern Rock plunged 22 percent to 103.1. The U.K. lender's 25 billion-pound ($51 billion) loan from the Bank of England won't be extended indefinitely, the government said, possibly deterring bidders for the U.K. bank that was bailed out in September.
Interested parties ``should not assume at this stage that the current Bank of England loan facilities will be available'' beyond February, the Treasury said in a statement.
Alliance & Leicester Plc, the U.K.'s second-worst performing banking stock this year, decreased 7.3 percent to 562.5.
Anglo American, the world's second-largest mining company, fell 1.7 percent to 3,033. BHP, the world's largest, dropped 1.4 percent to 1,580.
pennystockadvise.com
Standard Chartered Plc advanced after the Financial Times reported China's three largest banks are interested in buying a stake in the company. Barratt Developments Plc also increased.
The FTSE 100 Index lost 20.3, or 0.3 percent, to 6,270.9 at 10:08 a.m. in London. The FTSE All-Share Index also declined 0.3 percent, to 3,215.05. Ireland's ISEQ Index fell 0.1 percent to 6,959.19.
Vodafone, the world's largest mobile-phone company, retreated 1 percent to 189.4.
Northern Rock plunged 22 percent to 103.1. The U.K. lender's 25 billion-pound ($51 billion) loan from the Bank of England won't be extended indefinitely, the government said, possibly deterring bidders for the U.K. bank that was bailed out in September.
Interested parties ``should not assume at this stage that the current Bank of England loan facilities will be available'' beyond February, the Treasury said in a statement.
Alliance & Leicester Plc, the U.K.'s second-worst performing banking stock this year, decreased 7.3 percent to 562.5.
Anglo American, the world's second-largest mining company, fell 1.7 percent to 3,033. BHP, the world's largest, dropped 1.4 percent to 1,580.
pennystockadvise.com
пятница, 16 ноября 2007 г.
France Stocks Update: CAC 40 Falls 40.14 to 5,520.99
France's benchmark stock index, the CAC 40, fell 0.72 percent at 9:05 a.m.
The index of 40 companies traded on the Paris Bourse fell 40.14 to 5,520.99. Among the stocks in the index, 4 rose and 36 fell.
Declines in the CAC 40 were led by Total Sa, Arcelormittal and Dexia Sa. About 2.26 million shares traded in the CAC 40.
learnstock-market.com
The index of 40 companies traded on the Paris Bourse fell 40.14 to 5,520.99. Among the stocks in the index, 4 rose and 36 fell.
Declines in the CAC 40 were led by Total Sa, Arcelormittal and Dexia Sa. About 2.26 million shares traded in the CAC 40.
learnstock-market.com
U.K. Stocks Update: FTSE 100 Falls 33.60 to 6,326.00
The U.K.'s benchmark stock index, the FTSE 100, fell 0.53 percent at 8:05 a.m.
The index of 102 stocks traded on the London Stock Exchange fell 33.60 to 6,326.00. Among the stocks in the index, 20 rose, 75 fell and 7 were unchanged.
Declines in the FTSE 100 were led by Royal Bank Of Scotland Group Plc (Rbs Ln), Vodafone Group Plc (Vod Ln) and Hsbc Holdings Plc (Hsba Ln). About 11.95 million shares traded in the FTSE 100.
learnstock-market.com
The index of 102 stocks traded on the London Stock Exchange fell 33.60 to 6,326.00. Among the stocks in the index, 20 rose, 75 fell and 7 were unchanged.
Declines in the FTSE 100 were led by Royal Bank Of Scotland Group Plc (Rbs Ln), Vodafone Group Plc (Vod Ln) and Hsbc Holdings Plc (Hsba Ln). About 11.95 million shares traded in the FTSE 100.
learnstock-market.com
четверг, 15 ноября 2007 г.
U.K. Retail Stocks Upgraded at Morgan Stanley on Rate Outlook
U.K. retail stocks were raised to ``in-line'' from ``cautious'' by Morgan Stanley analysts who said the industry has underperformed the market and will benefit if the Bank of England lowers interest rates.
Rate reductions ``have proved to be a catalyst for the sector in five of the seven rate-cutting cycles over the last 20 years,'' analysts including Brooke Bone wrote in a note to investors dated Nov. 14. The industry ``has de-rated to such an extent that its valuation now stands at below 12 times consensus earnings -- its lowest point for 12 years.''
Morgan Stanley economists predict the bank will cut rates by 25 basis points to 5.5 percent in December, according to the report.
The analysts upgraded Kingfisher Plc to ``overweight'' from ``equal-weight'' and have a price estimate of 230 pence on the stock. The shares rose 6.1 pence, or 3.5 percent, to 182.4 pence yesterday. Analysts also recommended Marks & Spencer Group Plc, Next Plc, and Signet Group Plc.
microcaparticles.com
Rate reductions ``have proved to be a catalyst for the sector in five of the seven rate-cutting cycles over the last 20 years,'' analysts including Brooke Bone wrote in a note to investors dated Nov. 14. The industry ``has de-rated to such an extent that its valuation now stands at below 12 times consensus earnings -- its lowest point for 12 years.''
Morgan Stanley economists predict the bank will cut rates by 25 basis points to 5.5 percent in December, according to the report.
The analysts upgraded Kingfisher Plc to ``overweight'' from ``equal-weight'' and have a price estimate of 230 pence on the stock. The shares rose 6.1 pence, or 3.5 percent, to 182.4 pence yesterday. Analysts also recommended Marks & Spencer Group Plc, Next Plc, and Signet Group Plc.
microcaparticles.com
German Stocks Retreat; MAN, ThyssenKrupp, Infineon Pace Decline
German stocks dropped after the European Central Bank said the ``sharp'' increase in the October inflation rate is ``a matter of particular concern,'' raising talk borrowing costs will rise and slow earnings growth.
MAN AG, ThyssenKrupp AG and Infineon Technologies AG paced the decline.
``What we see is an unpleasant combination of slowing growth and high inflation,'' said Matthias Joerss, an equity strategist at Sal. Oppenheim Jr. & Cie. in Frankfurt. ``Growth forecasts are lowered gradually. That's bad for industrials.''
The benchmark DAX Index lost 77.73, or 1 percent, to 7,705.38 at 12:25 p.m. in Frankfurt. DAX futures expiring in December decreased 81, or 1 percent, to 7,737.50. The HDAX Index of the country's 110 biggest companies retreated 1.2 percent.
The ECB said the rise in the October inflation rate to 2.6 percent from 2.1 percent the previous month is ``a matter of particular concern and it is essential that it does not affect medium to longer-term inflation expectations.''
MAN, Europe's third-largest truckmaker, lost 4.99 euros, or 4.4 percent, to 107.45 euros.
ThyssenKrupp, the country's largest steelmaker, dropped 1.59 euros, or 3.9 percent, to 39.32 euros.
Infineon, Europe's second-largest maker of semiconductors, lost 30 cents, or 3.2 percent, to 9.20 euros.
ABN Amro Holding NV downgraded the stock to ``hold'' from ``buy'' citing a negative impact of the strong euro on revenue and margins and setting its price estimate at 10 euros a share.
Lehman Brothers Holdings Inc. cut its price estimate for the shares 19 percent to 13 euros citing ``material cuts'' to its estimates for Infineon's unprofitable memory-chip unit Qimonda AG. Citigroup Inc. lowered its price projection 2 percent to 14.60 euros.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
BDI Biodiesel International AG (D7I GY) advanced 32 cents, or 1.8 percent, to 17.82 euros. The builder of factories that make fuel from organic products said third-quarter sales surged 69 percent.
Lanxess AG (LXS GY), the maker of chemicals used by the textile and leather industry, dropped 1.74 euros, or 5.7 percent, to 28.55 euros, the steepest drop in the HDAX today.
Lehman Brothers and Merrill Lynch & Co. cut their price projections for the stock, both citing the weak dollar.
microcaparticles.com
MAN AG, ThyssenKrupp AG and Infineon Technologies AG paced the decline.
``What we see is an unpleasant combination of slowing growth and high inflation,'' said Matthias Joerss, an equity strategist at Sal. Oppenheim Jr. & Cie. in Frankfurt. ``Growth forecasts are lowered gradually. That's bad for industrials.''
The benchmark DAX Index lost 77.73, or 1 percent, to 7,705.38 at 12:25 p.m. in Frankfurt. DAX futures expiring in December decreased 81, or 1 percent, to 7,737.50. The HDAX Index of the country's 110 biggest companies retreated 1.2 percent.
The ECB said the rise in the October inflation rate to 2.6 percent from 2.1 percent the previous month is ``a matter of particular concern and it is essential that it does not affect medium to longer-term inflation expectations.''
MAN, Europe's third-largest truckmaker, lost 4.99 euros, or 4.4 percent, to 107.45 euros.
ThyssenKrupp, the country's largest steelmaker, dropped 1.59 euros, or 3.9 percent, to 39.32 euros.
Infineon, Europe's second-largest maker of semiconductors, lost 30 cents, or 3.2 percent, to 9.20 euros.
ABN Amro Holding NV downgraded the stock to ``hold'' from ``buy'' citing a negative impact of the strong euro on revenue and margins and setting its price estimate at 10 euros a share.
Lehman Brothers Holdings Inc. cut its price estimate for the shares 19 percent to 13 euros citing ``material cuts'' to its estimates for Infineon's unprofitable memory-chip unit Qimonda AG. Citigroup Inc. lowered its price projection 2 percent to 14.60 euros.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
BDI Biodiesel International AG (D7I GY) advanced 32 cents, or 1.8 percent, to 17.82 euros. The builder of factories that make fuel from organic products said third-quarter sales surged 69 percent.
Lanxess AG (LXS GY), the maker of chemicals used by the textile and leather industry, dropped 1.74 euros, or 5.7 percent, to 28.55 euros, the steepest drop in the HDAX today.
Lehman Brothers and Merrill Lynch & Co. cut their price projections for the stock, both citing the weak dollar.
microcaparticles.com
вторник, 13 ноября 2007 г.
AWD, GfK, Hochtief, Infineon, RWE, Stada: German Equity Preview
The following is a list of companies whose shares may have unusual price changes in Germany. Stock symbols are in parentheses after company names and prices are from the last close.
The X-DAX Index rose 78.65, or 1 percent, to 7,851.77. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX fell 0.4 percent to 7,777.56.
Aleo Solar AG (AS1 GY): The maker of solar-energy products is scheduled to release third-quarter results. The company in August said first-half profit fell. The shares dropped 59 cents, or 3.9 percent, to 14.69 euros.
AWD Holding AG (AWD GY): Germany's second-biggest financial- services broker plans to release third-quarter results. The company may say third-quarter profit rose, helped by higher sales of pension products. The shares slipped 2.9 percent to 20.55 euros.
Bauer AG (B5A GY): The construction company that sold shares last year intends to report third-quarter results. The company last month raised its full-year profit forecast 10 percent, citing ``excellent business development.'' The shares fell 1.03 euros, or 2.1 percent, to 48.51 euros.
Beate Uhse AG (USE GY): The operator of Europe's largest chain of sex shops plans to release third-quarter results. The company earlier this month forecast an annual loss, saying it expects to spend as much as 10 million euros ($14.7 million) on a ``radical rejuvenation'' of its business this year. The shares were unchanged at 2.22 euros.
Ersol Solar Energy AG (ES6 GY): The solar cell maker plans to post third-quarter results. The company in August said second- quarter profit fell 17 percent after it spent more to increase production. The shares declined 6.05 euros, or 7.6 percent, to 74.03 euros.
Gagfah SA (GFJ GY): Germany's largest publicly traded residential landlord plans to post third-quarter results. The company in August said second-quarter profit jumped as the value of its apartments increased faster than interest costs. The shares fell 29 cents, or 2.5 percent, to 11.32 euros.
earnwithmicrocap.com
The X-DAX Index rose 78.65, or 1 percent, to 7,851.77. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX fell 0.4 percent to 7,777.56.
Aleo Solar AG (AS1 GY): The maker of solar-energy products is scheduled to release third-quarter results. The company in August said first-half profit fell. The shares dropped 59 cents, or 3.9 percent, to 14.69 euros.
AWD Holding AG (AWD GY): Germany's second-biggest financial- services broker plans to release third-quarter results. The company may say third-quarter profit rose, helped by higher sales of pension products. The shares slipped 2.9 percent to 20.55 euros.
Bauer AG (B5A GY): The construction company that sold shares last year intends to report third-quarter results. The company last month raised its full-year profit forecast 10 percent, citing ``excellent business development.'' The shares fell 1.03 euros, or 2.1 percent, to 48.51 euros.
Beate Uhse AG (USE GY): The operator of Europe's largest chain of sex shops plans to release third-quarter results. The company earlier this month forecast an annual loss, saying it expects to spend as much as 10 million euros ($14.7 million) on a ``radical rejuvenation'' of its business this year. The shares were unchanged at 2.22 euros.
Ersol Solar Energy AG (ES6 GY): The solar cell maker plans to post third-quarter results. The company in August said second- quarter profit fell 17 percent after it spent more to increase production. The shares declined 6.05 euros, or 7.6 percent, to 74.03 euros.
Gagfah SA (GFJ GY): Germany's largest publicly traded residential landlord plans to post third-quarter results. The company in August said second-quarter profit jumped as the value of its apartments increased faster than interest costs. The shares fell 29 cents, or 2.5 percent, to 11.32 euros.
earnwithmicrocap.com
Burberry, Cable & Wireless, Lonmin: U.K., Irish Equity Preview
The following stocks may rise or fall in U.K. markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index rose 24.5, or 0.4 percent, to close at 6,362.40. The FTSE All-Share Index gained 11.6, or 0.4 percent, to ,264.12.
Ireland's ISEQ Index climbed 38.6, or 0.5 percent, to close at 7,197.56.
U.K. Companies:
Burberry Group Plc (BRBY LN): The luxury-goods maker whose founder created gabardine fabric may say tomorrow that first- half profit rose as the company added metal-studded Knight handbags alongside its range of tailored trench coats. Burberry's stock added 26 pence, or 4.7 percent, to 585.5.
Cable & Wireless (CW/ LN): Shareholders of the U.K.'s second-biggest phone company are expected to request a justification for yesterday's departure of the company's chief executive officer of international business, the Financial Times reported. Cable & Wireless' stock declined 2.9 pence, or 1.6 percent, to 177.1.
Lonmin Plc (LMI LN): The world's third-biggest platinum producer is announcing earnings. Lonmin's stock retreated 78 pence, or 2.5 percent, to 3077.
Northern Rock Plc (NRK LN): The U.K. bank has obtained an injunction restricting the publication of a confidential memorandum leaked to a newspaper group today. Northern Rock's stock fell 2.4 pence, or 1.6 percent, to 152.
J Sainsbury Plc (SBRY LN): The third-largest U.K. supermarket chain may say tomorrow that first-half profit rose on stronger sales of higher-priced organic and natural foods. J Sainsbury's stock dropped 1.8 pence, or 0.4 percent, to 425.75.
Scottish and Southern Energy Plc (SSE LN): The U.K.'s third-biggest supplier of electricity and natural gas probably increased earnings for the fiscal first half as revenue from its growing customer base rose. Scottish and Southern's stock fell 14 pence, or 0.9 percent, to 1523.
earnwithmicrocap.com
The benchmark FTSE 100 Index rose 24.5, or 0.4 percent, to close at 6,362.40. The FTSE All-Share Index gained 11.6, or 0.4 percent, to ,264.12.
Ireland's ISEQ Index climbed 38.6, or 0.5 percent, to close at 7,197.56.
U.K. Companies:
Burberry Group Plc (BRBY LN): The luxury-goods maker whose founder created gabardine fabric may say tomorrow that first- half profit rose as the company added metal-studded Knight handbags alongside its range of tailored trench coats. Burberry's stock added 26 pence, or 4.7 percent, to 585.5.
Cable & Wireless (CW/ LN): Shareholders of the U.K.'s second-biggest phone company are expected to request a justification for yesterday's departure of the company's chief executive officer of international business, the Financial Times reported. Cable & Wireless' stock declined 2.9 pence, or 1.6 percent, to 177.1.
Lonmin Plc (LMI LN): The world's third-biggest platinum producer is announcing earnings. Lonmin's stock retreated 78 pence, or 2.5 percent, to 3077.
Northern Rock Plc (NRK LN): The U.K. bank has obtained an injunction restricting the publication of a confidential memorandum leaked to a newspaper group today. Northern Rock's stock fell 2.4 pence, or 1.6 percent, to 152.
J Sainsbury Plc (SBRY LN): The third-largest U.K. supermarket chain may say tomorrow that first-half profit rose on stronger sales of higher-priced organic and natural foods. J Sainsbury's stock dropped 1.8 pence, or 0.4 percent, to 425.75.
Scottish and Southern Energy Plc (SSE LN): The U.K.'s third-biggest supplier of electricity and natural gas probably increased earnings for the fiscal first half as revenue from its growing customer base rose. Scottish and Southern's stock fell 14 pence, or 0.9 percent, to 1523.
earnwithmicrocap.com
European Bank Stocks Cut to `Cautious' View at Morgan Stanley
European bank stocks were downgraded at Morgan Stanley on concern the credit market turmoil will slow economic growth.
The brokerage cut its view on banks to ``cautious'' from `in-line'' and lowered the financial industry to ``underweight'' from ``neutral,'' according to a report dated Nov. 12.
``The deepening of the ongoing financial crisis could have a serious impact on the economy,'' analysts including Huw Van Steenis wrote in the note.
pennyinvest-u.com
The brokerage cut its view on banks to ``cautious'' from `in-line'' and lowered the financial industry to ``underweight'' from ``neutral,'' according to a report dated Nov. 12.
``The deepening of the ongoing financial crisis could have a serious impact on the economy,'' analysts including Huw Van Steenis wrote in the note.
pennyinvest-u.com
Germany Stocks Update: DAX Index Falls 41.32 to 7,765.52
Germany's benchmark stock index, the DAX Index, fell 0.53 percent at 9:05 a.m.
The index of 30 companies traded on the Frankfurt Stock Exchange fell 41.32 to 7,765.52. Among the stocks in the index, 5 rose and 25 fell.
Declines in the DAX were led by E.on Ag, Siemens Ag and Sap Ag. About 3.29 million shares traded in the DAX.
pennyinvest-u.com
The index of 30 companies traded on the Frankfurt Stock Exchange fell 41.32 to 7,765.52. Among the stocks in the index, 5 rose and 25 fell.
Declines in the DAX were led by E.on Ag, Siemens Ag and Sap Ag. About 3.29 million shares traded in the DAX.
pennyinvest-u.com
понедельник, 12 ноября 2007 г.
Barclays, Royal Bank Lose Shareholders' Confidence
Barclays Plc's John Varley and Fred Goodwin of Royal Bank of Scotland Group Plc, who spent six months battling for control of ABN Amro Holding NV, now have something else in common: their banks are among the cheapest in Europe.
Investors drove Barclays and Royal Bank shares down more than 25 percent in the past month on concern potential losses linked to the U.S. subprime mortgage market will hurt profits. Edinburgh- based Royal Bank trades at 5.8 times estimated earnings, the lowest in at least six years, and London-based Barclays is at 6.9 times profit. That compares with the average multiple of 9.9 for the 63-member Bloomberg Europe Banks and Financial Services Index.
The stocks got battered because Chief Executive Officers Varley and Goodwin have provided little information to investors after record foreclosures on U.S. home loans to borrowers with poor credit histories roiled credit markets. The world's biggest financial institutions, including Citigroup Inc. in New York and Zurich-based UBS AG, reported about $45 billion of losses and writedowns, according to company reports.
``There's no point in arguing about valuations when people are so nervous,'' said Stuart Fowler, who oversees about $26.8 billion, including Barclays and Royal Bank, as head of U.K. equities at Axa Investment Managers in London. ``Under current conditions, you don't know they are cheap. One wouldn't expect massive writedowns, but only time will tell.''
Barclays shares rose 16.5 pence, or 3.5 percent, to 491 pence by 8:47 a.m. on the London Stock Exchange after Varley denied speculation about subprime-related losses following the close of trading on Nov. 9. Royal Bank shares rose 2 percent to 411 pence.
Too Much Silence
`If there were any substance in the rumors that I have been hearing in recent days, we would have been required to have made an announcement to the stock market,'' Varley said in a memo to staff. ``But we have not. That silence says a lot.''
Silence has been part of the problem, said Colin Morton, who helps oversee $27 billion at Rensburg Sheppards Plc in Leeds, northern England. Investors are in the dark because U.K. banks report earnings twice a year, rather than quarterly as in the U.S., Germany, France and Switzerland. Barclays and Royal Bank, the second-largest in the U.K., should disclose more details to reassure investors, Morton said.
``We don't know what is out there,'' said Morton. Rensburg Sheppards held about 26 million Barclays shares, or 0.4 percent, at the beginning of September, data compiled by Bloomberg show.
pennystockdiploma.com
Investors drove Barclays and Royal Bank shares down more than 25 percent in the past month on concern potential losses linked to the U.S. subprime mortgage market will hurt profits. Edinburgh- based Royal Bank trades at 5.8 times estimated earnings, the lowest in at least six years, and London-based Barclays is at 6.9 times profit. That compares with the average multiple of 9.9 for the 63-member Bloomberg Europe Banks and Financial Services Index.
The stocks got battered because Chief Executive Officers Varley and Goodwin have provided little information to investors after record foreclosures on U.S. home loans to borrowers with poor credit histories roiled credit markets. The world's biggest financial institutions, including Citigroup Inc. in New York and Zurich-based UBS AG, reported about $45 billion of losses and writedowns, according to company reports.
``There's no point in arguing about valuations when people are so nervous,'' said Stuart Fowler, who oversees about $26.8 billion, including Barclays and Royal Bank, as head of U.K. equities at Axa Investment Managers in London. ``Under current conditions, you don't know they are cheap. One wouldn't expect massive writedowns, but only time will tell.''
Barclays shares rose 16.5 pence, or 3.5 percent, to 491 pence by 8:47 a.m. on the London Stock Exchange after Varley denied speculation about subprime-related losses following the close of trading on Nov. 9. Royal Bank shares rose 2 percent to 411 pence.
Too Much Silence
`If there were any substance in the rumors that I have been hearing in recent days, we would have been required to have made an announcement to the stock market,'' Varley said in a memo to staff. ``But we have not. That silence says a lot.''
Silence has been part of the problem, said Colin Morton, who helps oversee $27 billion at Rensburg Sheppards Plc in Leeds, northern England. Investors are in the dark because U.K. banks report earnings twice a year, rather than quarterly as in the U.S., Germany, France and Switzerland. Barclays and Royal Bank, the second-largest in the U.K., should disclose more details to reassure investors, Morton said.
``We don't know what is out there,'' said Morton. Rensburg Sheppards held about 26 million Barclays shares, or 0.4 percent, at the beginning of September, data compiled by Bloomberg show.
pennystockdiploma.com
French Stocks Including ArcelorMittal Drop; Vallourec Gains
French stocks including ArcelorMittal SA, Suez and Electricite de France SA declined.
Vallourec SA advanced.
The CAC 40 Index lost 12.28, or 0.2 percent, to 5,511.90 at 3:39 p.m. in Paris as the same number of shares rose as fell. The SBF 120 Index decreased 0.2 percent.
Arcelor declined 4.4 percent to 48.21 euros. The company is unlikely to meet its 2007 profit target of 8 billion euros ($11.7 billion), La Lettre de l'Expansion reported, without saying where it got the information.
Arcelor spokeswoman Nicola Davidson denied the report, saying the company has ``never given full-year guidance.'' The report is ``without foundation,'' she said.
Suez, the utility planning to merge with Gaz de France SA, lost 2.4 percent to 43.2 euros.
EDF, Europe's biggest power producer, retreated 2 percent to 81.56 euros.
Vallourec climbed 3 percent to 195.27 euros. The Sunday Times yesterday said that Russian billionaire Alisher Usmanov's Metalloinvest is preparing a bid for the French steel tube maker.
``We completely deny this,'' Metalloinvest Chairman Farhad Moshiri told Bloomberg News yesterday via a Moscow-based spokesman. ``This information doesn't correspond to reality.''
The following stocks rose or fell in Paris. Share symbols are in parentheses.
European Aeronautic, Defense & Space Co. (EAD FP), which controls planemaker Airbus SAS, advanced 61 cents, or 2.7 percent, to 22.89 euros. Airbus, the world's largest manufacturer of commercial planes, said it may deliver more than 450 planes this year, setting a record and helping it extend a four-year lead over rival Boeing Co.
``The record orders explain the stock's gains today,'' said Chicuong Dang, an analyst at Richelieu Finance in Paris.
Lafarge SA (LG FP) added 1.53 euros, or 1.4 percent, to 109.5. Lehman Brothers Holdings Inc. raised its recommendation on shares of the world's biggest cement maker to ``overweight'' from ``equal weight.''
``Investors have given too much credence to concerns in the U.S., in our view, ignoring the strong cost reduction program,'' analyst Ankur Agarwal wrote in a note.
Manitou BF SA (MTU FP) slid 87 cents, or 2.4 percent, to 35.13 euros. The maker of forklift trucks for clients in more than 120 countries said production and supply delays are ``temporarily'' hampering deliveries.
Netgem SA (NTG FP) surged 30 cents, or 11 percent, to 3.06 euros. The manufacturer of Internet access devices gained after saying its deliveries returned to ``normal.''
Theolia SA (TEO FP) jumped 96 cents, or 5.4 percent, to 18.66 euros. The wind-power company was contacted about a possible takeover, though not by shareholder General Electric Co., Chief Executive Officer Jean-Marie Santander said. Santander wouldn't comment on whether he's in talks with prospective buyers.
pennystockdiploma.com
Vallourec SA advanced.
The CAC 40 Index lost 12.28, or 0.2 percent, to 5,511.90 at 3:39 p.m. in Paris as the same number of shares rose as fell. The SBF 120 Index decreased 0.2 percent.
Arcelor declined 4.4 percent to 48.21 euros. The company is unlikely to meet its 2007 profit target of 8 billion euros ($11.7 billion), La Lettre de l'Expansion reported, without saying where it got the information.
Arcelor spokeswoman Nicola Davidson denied the report, saying the company has ``never given full-year guidance.'' The report is ``without foundation,'' she said.
Suez, the utility planning to merge with Gaz de France SA, lost 2.4 percent to 43.2 euros.
EDF, Europe's biggest power producer, retreated 2 percent to 81.56 euros.
Vallourec climbed 3 percent to 195.27 euros. The Sunday Times yesterday said that Russian billionaire Alisher Usmanov's Metalloinvest is preparing a bid for the French steel tube maker.
``We completely deny this,'' Metalloinvest Chairman Farhad Moshiri told Bloomberg News yesterday via a Moscow-based spokesman. ``This information doesn't correspond to reality.''
The following stocks rose or fell in Paris. Share symbols are in parentheses.
European Aeronautic, Defense & Space Co. (EAD FP), which controls planemaker Airbus SAS, advanced 61 cents, or 2.7 percent, to 22.89 euros. Airbus, the world's largest manufacturer of commercial planes, said it may deliver more than 450 planes this year, setting a record and helping it extend a four-year lead over rival Boeing Co.
``The record orders explain the stock's gains today,'' said Chicuong Dang, an analyst at Richelieu Finance in Paris.
Lafarge SA (LG FP) added 1.53 euros, or 1.4 percent, to 109.5. Lehman Brothers Holdings Inc. raised its recommendation on shares of the world's biggest cement maker to ``overweight'' from ``equal weight.''
``Investors have given too much credence to concerns in the U.S., in our view, ignoring the strong cost reduction program,'' analyst Ankur Agarwal wrote in a note.
Manitou BF SA (MTU FP) slid 87 cents, or 2.4 percent, to 35.13 euros. The maker of forklift trucks for clients in more than 120 countries said production and supply delays are ``temporarily'' hampering deliveries.
Netgem SA (NTG FP) surged 30 cents, or 11 percent, to 3.06 euros. The manufacturer of Internet access devices gained after saying its deliveries returned to ``normal.''
Theolia SA (TEO FP) jumped 96 cents, or 5.4 percent, to 18.66 euros. The wind-power company was contacted about a possible takeover, though not by shareholder General Electric Co., Chief Executive Officer Jean-Marie Santander said. Santander wouldn't comment on whether he's in talks with prospective buyers.
pennystockdiploma.com
суббота, 10 ноября 2007 г.
Volatility Gauge Rises on Wachovia's Loss; Allegheny Calls Jump
The benchmark for U.S. stock options jumped to the highest since the Federal Reserve cut the discount loan rate on Aug. 17 after Wachovia Corp. today said mortgage losses are increasing and Qualcomm Inc. trimmed its profit forecast.
The Chicago Board Options Exchange Volatility Index, or VIX, climbed 8.9 percent to 28.50. The index, known as the market's ``fear gauge'' because it tends to increase as stocks fall, has risen 77 percent in the last month as banks and brokerages announced losses tied to subprime loans.
``People are buying the hell out of the VIX because they're all spooked,'' said Al Greenberg, head CBOE floor trader at BNY Convergex in Chicago. ``Between higher oil prices and getting hit with more bad news every day in the financials they're preparing for the worst.''
Investors typically buy VIX call options to protect against stock-market losses. Higher readings in the so-called VIX, derived from prices paid for S&P 500 options, indicate traders expect smaller share-price swings in the next 30 days.
Earlier, the VIX rose as much as 10 percent to 28.84. The Standard & Poor's 500 Index fell 1.4 percent to a two-month low of 1,453.70
``The market's down, there's a lot of risk and there was more bad news this morning, so when fear increases the VIX rises,'' said Joe Kinahan, chief derivatives strategist at Investools Inc.'s thinkorswim brokerage unit in Chicago. ``Thirty is a very bearish reading and we're up to 28, so this bears watching over the next few days.''
freemarketcollege.com
The Chicago Board Options Exchange Volatility Index, or VIX, climbed 8.9 percent to 28.50. The index, known as the market's ``fear gauge'' because it tends to increase as stocks fall, has risen 77 percent in the last month as banks and brokerages announced losses tied to subprime loans.
``People are buying the hell out of the VIX because they're all spooked,'' said Al Greenberg, head CBOE floor trader at BNY Convergex in Chicago. ``Between higher oil prices and getting hit with more bad news every day in the financials they're preparing for the worst.''
Investors typically buy VIX call options to protect against stock-market losses. Higher readings in the so-called VIX, derived from prices paid for S&P 500 options, indicate traders expect smaller share-price swings in the next 30 days.
Earlier, the VIX rose as much as 10 percent to 28.84. The Standard & Poor's 500 Index fell 1.4 percent to a two-month low of 1,453.70
``The market's down, there's a lot of risk and there was more bad news this morning, so when fear increases the VIX rises,'' said Joe Kinahan, chief derivatives strategist at Investools Inc.'s thinkorswim brokerage unit in Chicago. ``Thirty is a very bearish reading and we're up to 28, so this bears watching over the next few days.''
freemarketcollege.com
Boardwalk, Harvest Energy Trust, Nexen: Canadian Equity Preview
The following is a list of companies whose shares may have unusual price changes in Canada. Stock symbols are in parentheses after company names and prices are from the last close.
The Standard & Poor's/TSX Composite Index fell 258.77, or 1.8 percent, to 13,869.82.
Boardwalk Real Estate Investment Trust (BEI-U CN): The owner of residential properties in Western Canada was raised to ``buy'' from ``hold'' by analyst Jonathan Kelcher at Canaccord Adams. Boardwalk shares gained C$1.35, or 3.3 percent, to C$41.96.
Great Canadian Gaming Co. (GC CN): The casino operator reported more profit than analysts expected, according to the average analyst estimate in a Bloomberg survey. Great Canadian shares fell 32 cents, or 2.2 percent, to C$14.28.
Harvest Energy Trust (HTE-U CN): The oil and natural gas producer was cut to ``sell'' from ``buy'' by analyst Bruce McDonald at Canaccord Adams. Harvest Energy shares fell C$1.85, or 7.1 percent, to C$24.25.
Nexen Inc. (NXY CN): The oil and natural-gas producer shut its Buzzard platform in the U.K. North Sea after inspections showed damage from storms. Nexen shares fell 63 cents, or 2 percent, to C$30.42.
freemarketcollege.com
The Standard & Poor's/TSX Composite Index fell 258.77, or 1.8 percent, to 13,869.82.
Boardwalk Real Estate Investment Trust (BEI-U CN): The owner of residential properties in Western Canada was raised to ``buy'' from ``hold'' by analyst Jonathan Kelcher at Canaccord Adams. Boardwalk shares gained C$1.35, or 3.3 percent, to C$41.96.
Great Canadian Gaming Co. (GC CN): The casino operator reported more profit than analysts expected, according to the average analyst estimate in a Bloomberg survey. Great Canadian shares fell 32 cents, or 2.2 percent, to C$14.28.
Harvest Energy Trust (HTE-U CN): The oil and natural gas producer was cut to ``sell'' from ``buy'' by analyst Bruce McDonald at Canaccord Adams. Harvest Energy shares fell C$1.85, or 7.1 percent, to C$24.25.
Nexen Inc. (NXY CN): The oil and natural-gas producer shut its Buzzard platform in the U.K. North Sea after inspections showed damage from storms. Nexen shares fell 63 cents, or 2 percent, to C$30.42.
freemarketcollege.com
пятница, 9 ноября 2007 г.
German Stocks Rise, Led by Allianz; Continental, Metro Advance
German stocks advanced for a second day, paced by Allianz SE after Europe's largest insurer posted earnings that beat analysts' estimates.
Continental AG climbed after Credit Suisse Group added the shares to its ``focus list.'' Deutsche Post AG rallied as Unicredit recommended investors buy the shares.
The benchmark DAX Index rose 77.92, or 1 percent, to 7,897.39 at 9:48 a.m. in Frankfurt. DAX futures expiring in December increase 78.5, or 1 percent, to 7,936. The HDAX Index of the country's 110 biggest companies gained 1 percent.
Allianz rallied 4.5 percent to 147.68 euros after the insurer reported a 21 percent increase in third-quarter profit to 1.92 billion euros ($2.83 billion), as lower taxes and earnings from insurance cushioned losses at its Dresdner Bank unit. That beat the 1.45 billion-euro median estimate of 18 analysts surveyed by Bloomberg.
Continental increased 3.5 percent to 100.91 euros. Credit Suisse rated shares of the world's fourth-largest tiremaker ``outperform'' in new coverage and added them to its ``focus list.''
``Automotive suppliers have a historic opportunity to benefit from a rising tide of environmental legislation,'' analysts including Stuart Pearson wrote in a report dated today.
Deutsche Post gained 1.7 percent to 21.36 euros as Unicredit raised its recommendation for the shares to ``buy'' from ``hold.''
The company's shares rallied 3.8 percent yesterday as Europe's largest postal service said it will pay more cash to investors as part of a strategy to boost the share price.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
pennystockforum.org
Continental AG climbed after Credit Suisse Group added the shares to its ``focus list.'' Deutsche Post AG rallied as Unicredit recommended investors buy the shares.
The benchmark DAX Index rose 77.92, or 1 percent, to 7,897.39 at 9:48 a.m. in Frankfurt. DAX futures expiring in December increase 78.5, or 1 percent, to 7,936. The HDAX Index of the country's 110 biggest companies gained 1 percent.
Allianz rallied 4.5 percent to 147.68 euros after the insurer reported a 21 percent increase in third-quarter profit to 1.92 billion euros ($2.83 billion), as lower taxes and earnings from insurance cushioned losses at its Dresdner Bank unit. That beat the 1.45 billion-euro median estimate of 18 analysts surveyed by Bloomberg.
Continental increased 3.5 percent to 100.91 euros. Credit Suisse rated shares of the world's fourth-largest tiremaker ``outperform'' in new coverage and added them to its ``focus list.''
``Automotive suppliers have a historic opportunity to benefit from a rising tide of environmental legislation,'' analysts including Stuart Pearson wrote in a report dated today.
Deutsche Post gained 1.7 percent to 21.36 euros as Unicredit raised its recommendation for the shares to ``buy'' from ``hold.''
The company's shares rallied 3.8 percent yesterday as Europe's largest postal service said it will pay more cash to investors as part of a strategy to boost the share price.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
pennystockforum.org
BG, Britvic, EMAP, Punch Taverns: U.K., Irish Equity Preview
The following stocks may rise or fall in U.K. markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 3.2, or 0.1 percent, to 6,381.9. The FTSE All-Share Index lost 6.8, or 0.2 percent, to 3,278.3.
Ireland's ISEQ Index declined 140.4, or 2 percent, to close at 7,047.91.
U.K. companies:
BG Group Plc (BG/ LN): Deutsche Bank AG raised its price estimate for the U.K.'s third-largest natural gas producer to 1,090 pence from 925. The stock gained 88 pence, or 9.8 percent, to 989.
BT Group Plc (BT/A LN): UBS AG lowered its price estimate for the U.K.'s largest phone company to 285 pence from 295. The stock declined 13.25 pence, or 4.2 percent, to 301.75.
Britvic Plc (BVIC LN): JPMorgan Chase & Co. rated the second-largest U.K. soft-drink maker ``overweight'' in new coverage with a price estimate of 410 pence. The stock retreated 9.75, or 3 percent, to 319.
Electrocomponents Plc (ECM LN): The supplier of 350,000 products ranging from cables to calculators said fiscal first- half profit rose 10 percent on higher internet sales. Electrocomponents' stock dropped 5.5 pence, or 2.2 percent, to 241.
Emap Plc (EMA LN): The company which put itself up for sale in July said there is ``good interest'' in all parts of the business from both competitors and private equity companies. The stock added 6.5 pence, or 0.8 percent, to 837.
GCap Media Plc (GCAP LN): UBS lowered its price estimate for the U.K.'s largest publicly traded radio company by 17 percent to 165 pence. GCap's stock declined 3.25 pence, or 2 percent, to 163.5.
Hornby Plc (HRN LN): Britain's largest maker of model railways said first-half profit rose 63 percent as acquisitions fueled sales growth. Hornby's stock retreated 6 pence, or 2.4 percent, to 243.
pennystockforum.org
The benchmark FTSE 100 Index fell 3.2, or 0.1 percent, to 6,381.9. The FTSE All-Share Index lost 6.8, or 0.2 percent, to 3,278.3.
Ireland's ISEQ Index declined 140.4, or 2 percent, to close at 7,047.91.
U.K. companies:
BG Group Plc (BG/ LN): Deutsche Bank AG raised its price estimate for the U.K.'s third-largest natural gas producer to 1,090 pence from 925. The stock gained 88 pence, or 9.8 percent, to 989.
BT Group Plc (BT/A LN): UBS AG lowered its price estimate for the U.K.'s largest phone company to 285 pence from 295. The stock declined 13.25 pence, or 4.2 percent, to 301.75.
Britvic Plc (BVIC LN): JPMorgan Chase & Co. rated the second-largest U.K. soft-drink maker ``overweight'' in new coverage with a price estimate of 410 pence. The stock retreated 9.75, or 3 percent, to 319.
Electrocomponents Plc (ECM LN): The supplier of 350,000 products ranging from cables to calculators said fiscal first- half profit rose 10 percent on higher internet sales. Electrocomponents' stock dropped 5.5 pence, or 2.2 percent, to 241.
Emap Plc (EMA LN): The company which put itself up for sale in July said there is ``good interest'' in all parts of the business from both competitors and private equity companies. The stock added 6.5 pence, or 0.8 percent, to 837.
GCap Media Plc (GCAP LN): UBS lowered its price estimate for the U.K.'s largest publicly traded radio company by 17 percent to 165 pence. GCap's stock declined 3.25 pence, or 2 percent, to 163.5.
Hornby Plc (HRN LN): Britain's largest maker of model railways said first-half profit rose 63 percent as acquisitions fueled sales growth. Hornby's stock retreated 6 pence, or 2.4 percent, to 243.
pennystockforum.org
четверг, 8 ноября 2007 г.
German Stocks Pare Losses; Siemens, TUI, Postbank Shares Rise
German stocks erased earlier losses, led by Siemens AG, Europe's biggest engineering company. TUI AG and Deutsche Postbank AG and also advanced.
The DAX Index increased 20.58, or 0.3 percent, to 7,820.2 at 1:02 p.m. in Frankfurt, after falling as much as 1.3 percent earlier. DAX futures expiring in December added 23.5, or 0.3 percent, to 7,857. The HDAX Index of the country's 110 biggest companies rose 0.1 percent.
Siemens increased 5.58 euros, or 5.9 percent, to 100.73. TUI, Europe's largest travel company, rallied 84 cents, or 4.1 percent, to 21.47 euros.
Deutsche Postbank, the worst performing stock on Germany's benchmark DAX Index this year, added 2.28 euros, or 5.2 percent, to 46.22.
pennystockwatch.org
The DAX Index increased 20.58, or 0.3 percent, to 7,820.2 at 1:02 p.m. in Frankfurt, after falling as much as 1.3 percent earlier. DAX futures expiring in December added 23.5, or 0.3 percent, to 7,857. The HDAX Index of the country's 110 biggest companies rose 0.1 percent.
Siemens increased 5.58 euros, or 5.9 percent, to 100.73. TUI, Europe's largest travel company, rallied 84 cents, or 4.1 percent, to 21.47 euros.
Deutsche Postbank, the worst performing stock on Germany's benchmark DAX Index this year, added 2.28 euros, or 5.2 percent, to 46.22.
pennystockwatch.org
U.K. Mining Stocks Rally, Led by Rio Tinto; BT, Barclays Drop
U.K. mining stocks gained after BHP Billiton Plc, the world's biggest mining company, said its offer to buy Rio Tinto Group was rejected, fueling speculation of consolidation in the industry.
Barclays Plc, Britain's third-biggest bank, followed European financial stocks lower after Morgan Stanley said the outlook for credit markets has worsened. BT Group Plc, the U.K.'s largest phone company, declined after earnings missed analysts' estimates.
The FTSE 100 Index climbed 11.1, or 0.2 percent, to 6,396.2 at 1:03 p.m. in London. The FTSE All-Share Index gained 0.1 percent to 3,288.03. Ireland's ISEQ Index fell 1.2 percent to 7,103.1.
``After lots of speculation, at last we see concrete bid interest for Rio from BHP,'' said Espen Furnes, who helps manage the equivalent of $7.1 billion at Storebrand Asset Management in Oslo. ``This increases the likelihood of more consolidation in the sector, with Xstrata being a likely target.''
Rio Tinto, the world's third-biggest mining company, surged 24 percent to 5,378 pence, a record high, while Xstrata Plc, the world's fourth-biggest nickel miner, added 9.7 percent to 3,537 pence. Antofagasta Plc, the copper producer controlled by Chile's Luksic family, gained 6.8 percent to 833.5 pence.
``This deal will happen, it's just a question of time,'' said Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe in London, in a telephone interview. ``This deal is definitely up in the pantheon of the biggest M&A deals of all time.''
pennystockwatch.org
Barclays Plc, Britain's third-biggest bank, followed European financial stocks lower after Morgan Stanley said the outlook for credit markets has worsened. BT Group Plc, the U.K.'s largest phone company, declined after earnings missed analysts' estimates.
The FTSE 100 Index climbed 11.1, or 0.2 percent, to 6,396.2 at 1:03 p.m. in London. The FTSE All-Share Index gained 0.1 percent to 3,288.03. Ireland's ISEQ Index fell 1.2 percent to 7,103.1.
``After lots of speculation, at last we see concrete bid interest for Rio from BHP,'' said Espen Furnes, who helps manage the equivalent of $7.1 billion at Storebrand Asset Management in Oslo. ``This increases the likelihood of more consolidation in the sector, with Xstrata being a likely target.''
Rio Tinto, the world's third-biggest mining company, surged 24 percent to 5,378 pence, a record high, while Xstrata Plc, the world's fourth-biggest nickel miner, added 9.7 percent to 3,537 pence. Antofagasta Plc, the copper producer controlled by Chile's Luksic family, gained 6.8 percent to 833.5 pence.
``This deal will happen, it's just a question of time,'' said Stephen Pope, chief global market strategist at Cantor Fitzgerald Europe in London, in a telephone interview. ``This deal is definitely up in the pantheon of the biggest M&A deals of all time.''
pennystockwatch.org
среда, 7 ноября 2007 г.
Asian Commodity Stocks Rise; Tokyo Electric Falls on Record Oil
Asian energy and mining stocks rose after a weaker dollar triggered a rally in commodities prices. Benchmarks fell in Japan and South Korea, which import almost all their fuel, after the price of crude climbed above $98 for the first time.
Cnooc Ltd., China's largest offshore oil explorer, rose for the first time in four days, while Tokyo Electric Power Co., Asia's largest electricity producer, and Korea Electric Power Corp. declined on concern higher fuel costs will erode profits. Nintendo Co. led exporters lower on concern the weaker dollar will erode the value of overseas sales when converted into yen.
``Strong spot commodity prices have certainly put momentum behind some of the resources stocks,'' said Jason Teh, who helps manage the equivalent of about $6.5 billion at Investors Mutual in Sydney.
The Morgan Stanley Capital International Asia-Pacific Index, a dollar-denominated measure of 1,053 companies in the region, added 0.2 percent to 166.84 as of 5:44 p.m. in Tokyo, with about three stocks falling for every two that rose. A group of energy shares had the biggest gain among the index's 10 industry groups.
Japan's Nikkei 225 Stock Average slid 0.9 percent to 16,096.68, its fourth straight day of losses. Orix Corp., Japan's largest non-bank financial company, plunged after it said first- half profit from operations fell 27 percent.
In Australia, where the central bank today raised its key interest rate to an 11-year high, the S&P/ASX 200 Index rose 1 percent. Among the region's other markets, only Singapore and Thailand fell.
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Cnooc Ltd., China's largest offshore oil explorer, rose for the first time in four days, while Tokyo Electric Power Co., Asia's largest electricity producer, and Korea Electric Power Corp. declined on concern higher fuel costs will erode profits. Nintendo Co. led exporters lower on concern the weaker dollar will erode the value of overseas sales when converted into yen.
``Strong spot commodity prices have certainly put momentum behind some of the resources stocks,'' said Jason Teh, who helps manage the equivalent of about $6.5 billion at Investors Mutual in Sydney.
The Morgan Stanley Capital International Asia-Pacific Index, a dollar-denominated measure of 1,053 companies in the region, added 0.2 percent to 166.84 as of 5:44 p.m. in Tokyo, with about three stocks falling for every two that rose. A group of energy shares had the biggest gain among the index's 10 industry groups.
Japan's Nikkei 225 Stock Average slid 0.9 percent to 16,096.68, its fourth straight day of losses. Orix Corp., Japan's largest non-bank financial company, plunged after it said first- half profit from operations fell 27 percent.
In Australia, where the central bank today raised its key interest rate to an 11-year high, the S&P/ASX 200 Index rose 1 percent. Among the region's other markets, only Singapore and Thailand fell.
microcapreview.org
U.K. Stocks Update: FTSE 100 Rises 31.40 to 6,506.30
The U.K.'s benchmark stock index, the FTSE 100, rose 0.48 percent at 8:05 a.m.
The index of 102 stocks traded on the London Stock Exchange rose 31.40 to 6,506.30. Among the stocks in the index, 77 rose, 17 fell and 8 were unchanged.
Gains in the FTSE 100 were led by Rio Tinto Plc (Rio Ln), Anglo American Plc (Aal Ln) and Royal Dutch Shell Plc (Rdsa Ln). About 8.41 million shares traded in the FTSE 100.
microcapreview.org
The index of 102 stocks traded on the London Stock Exchange rose 31.40 to 6,506.30. Among the stocks in the index, 77 rose, 17 fell and 8 were unchanged.
Gains in the FTSE 100 were led by Rio Tinto Plc (Rio Ln), Anglo American Plc (Aal Ln) and Royal Dutch Shell Plc (Rdsa Ln). About 8.41 million shares traded in the FTSE 100.
microcapreview.org
вторник, 6 ноября 2007 г.
European Stocks Rise; Swiss Re, Vestas, Commerzbank, BHP Gain
Stocks rebounded in Europe, led by mining and engineering companies, as investors focused on the prospects for earnings.
Swiss Reinsurance Co., the world's biggest reinsurer, and Vestas Wind Systems A/S, the largest maker of wind turbines, climbed after reporting profit that exceeded analysts' estimates. Commerzbank AG rallied after the German bank said earnings rose by more than half in the third quarter. BHP Billiton Ltd. led mining shares higher as copper and gold prices increased.
``Sentiment for stocks got a boost from better-than-expected earnings,'' said Philipp Musil, who helps oversee $24 billion at Vienna-based Constantia Privatbank AG. ``Profits are still rising and economic growth remains intact.''
The Dow Jones Stoxx 600 Index added 0.6 percent to 379.44 as of 1:15 p.m. in London. The measure dropped 2.9 percent in the previous three days on concern that more banks may follow Citigroup and Merrill Lynch & Co. in increasing their estimates of losses related to subprime mortgages.
European government bonds fell, snapping three days of gains. The dollar slumped to a record low of $1.4531 per euro on speculation finance industry losses will spur the Federal Reserve to cut interest rates for a third time this year.
The risk of European companies defaulting on their debt declined, according to traders of credit-default swaps.
Regional benchmarks advanced in all of the 18 western European markets except Iceland and Ireland. The U.K.'s FTSE 100 gained 0.4 percent. France's CAC 40 added 0.3 percent and Germany's DAX increased 0.5 percent. The Stoxx 50 rose 0.5 percent, as did the Euro Stoxx 50, a measure for the euro region.
Beating Estimates
Swiss Re gained 2.2 percent to 104 francs. Third-quarter profit fell 5 percent to 1.47 billion Swiss francs ($1.28 billion). That beat the 1.13 billion-franc median estimate of nine analysts surveyed by Bloomberg News.
Vestas Wind jumped 9.6 percent to 489 kroner, the sharpest gain since Feb. 9. Third-quarter profit more than tripled to 66 million euros ($96 million) after demand for its products climbed. Analysts in a Bloomberg survey had estimated profit of 60 million euros.
Gamesa Corp. Tecnologica SA, Spain's largest maker of wind- energy turbines, added 3.3 percent to 36 euros.
Commerzbank climbed 2.6 percent to 27.90 euros. Germany's second-biggest lender said third-quarter profit rose 56 percent on tax gains and named board member Martin Blessing to succeed Klaus-Peter Mueller as chief executive officer.
BHP Billiton gained 3.4 percent to 1,758 pence. Anglo American Plc, the world's second-biggest mining company, advanced 2.7 percent to 3,135 pence. Rio Tinto Group, the third-largest, jumped 3.2 percent to 4,333 pence.
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Swiss Reinsurance Co., the world's biggest reinsurer, and Vestas Wind Systems A/S, the largest maker of wind turbines, climbed after reporting profit that exceeded analysts' estimates. Commerzbank AG rallied after the German bank said earnings rose by more than half in the third quarter. BHP Billiton Ltd. led mining shares higher as copper and gold prices increased.
``Sentiment for stocks got a boost from better-than-expected earnings,'' said Philipp Musil, who helps oversee $24 billion at Vienna-based Constantia Privatbank AG. ``Profits are still rising and economic growth remains intact.''
The Dow Jones Stoxx 600 Index added 0.6 percent to 379.44 as of 1:15 p.m. in London. The measure dropped 2.9 percent in the previous three days on concern that more banks may follow Citigroup and Merrill Lynch & Co. in increasing their estimates of losses related to subprime mortgages.
European government bonds fell, snapping three days of gains. The dollar slumped to a record low of $1.4531 per euro on speculation finance industry losses will spur the Federal Reserve to cut interest rates for a third time this year.
The risk of European companies defaulting on their debt declined, according to traders of credit-default swaps.
Regional benchmarks advanced in all of the 18 western European markets except Iceland and Ireland. The U.K.'s FTSE 100 gained 0.4 percent. France's CAC 40 added 0.3 percent and Germany's DAX increased 0.5 percent. The Stoxx 50 rose 0.5 percent, as did the Euro Stoxx 50, a measure for the euro region.
Beating Estimates
Swiss Re gained 2.2 percent to 104 francs. Third-quarter profit fell 5 percent to 1.47 billion Swiss francs ($1.28 billion). That beat the 1.13 billion-franc median estimate of nine analysts surveyed by Bloomberg News.
Vestas Wind jumped 9.6 percent to 489 kroner, the sharpest gain since Feb. 9. Third-quarter profit more than tripled to 66 million euros ($96 million) after demand for its products climbed. Analysts in a Bloomberg survey had estimated profit of 60 million euros.
Gamesa Corp. Tecnologica SA, Spain's largest maker of wind- energy turbines, added 3.3 percent to 36 euros.
Commerzbank climbed 2.6 percent to 27.90 euros. Germany's second-biggest lender said third-quarter profit rose 56 percent on tax gains and named board member Martin Blessing to succeed Klaus-Peter Mueller as chief executive officer.
BHP Billiton gained 3.4 percent to 1,758 pence. Anglo American Plc, the world's second-biggest mining company, advanced 2.7 percent to 3,135 pence. Rio Tinto Group, the third-largest, jumped 3.2 percent to 4,333 pence.
pennystockadvise.com
Bank of America, Wachovia Forecasts Cut by Friedman Billings
Bank of America Corp. and Wachovia Corp. may be forced to write down more mortgage-related assets in the fourth quarter, reducing their earnings, Friedman Billings Ramsey & Co. said.
Bank of America, the second-largest U.S. bank, had its share-price estimate cut 10 percent to $52 and its 2007 profit estimate reduced 5 cents to $1.10 a share by analyst Gary Townsend, who maintained his ``outperform'' rating on the shares.
Wachovia, the fourth-largest U.S. bank, had its share-price estimate cut to $47 from $50 and its 2007 share-price estimate lowered by 10 cents to $1 a share. Townsend maintained his ``market perform'' rating.
pennystockadvise.com
Bank of America, the second-largest U.S. bank, had its share-price estimate cut 10 percent to $52 and its 2007 profit estimate reduced 5 cents to $1.10 a share by analyst Gary Townsend, who maintained his ``outperform'' rating on the shares.
Wachovia, the fourth-largest U.S. bank, had its share-price estimate cut to $47 from $50 and its 2007 share-price estimate lowered by 10 cents to $1 a share. Townsend maintained his ``market perform'' rating.
pennystockadvise.com
понедельник, 5 ноября 2007 г.
Global Stocks, U.S. Futures Drop; SocGen, Bear Stearns Decline
Stocks fell in Europe and Asia after Citigroup Inc.'s announcement of as much as $11 billion in additional writedowns suggested banks may face more losses. U.S. index futures retreated.
Societe Generale SA declined after Bear Stearns Cos. downgraded shares of the second-biggest French bank. J Sainsbury Plc tumbled as Delta (Two) Ltd. dropped plans for a 10.5 billion- pound ($21.9 billion) takeover, citing a worsening credit market. Mitsubishi UFJ Financial Group Inc. paced the retreat in Asia. Bear Stearns fell in Germany after Lehman Brothers Holdings Inc. cut its recommendation on the New York-based investment bank.
``It looks like there may be more bad news to come,'' said Simon Carter, who helps oversee $3 billion at Aegon Asset Management in Edinburgh. ``The Citigroup writedown due to subprime was much larger than expected. Sainsbury's woes are also not helping.''
The Morgan Stanley Capital International World Index sank 0.4 percent to 1,640.12, while Standard & Poor's 500 Index futures dropped 0.8 percent to 1,505.9 as of 10:10 a.m. in London. Shares in Hong Kong dropped the most since September 2001 after Chinese Premier Wen Jiabao signaled plans to allow citizens to invest in the market are on hold.
The MSCI World has lost 2.5 percent in three days, retreating from a record, on concern that more banks may follow Citigroup and Merrill Lynch & Co. and increase their estimates of losses related to subprime mortgages.
learnstock-market.com
Societe Generale SA declined after Bear Stearns Cos. downgraded shares of the second-biggest French bank. J Sainsbury Plc tumbled as Delta (Two) Ltd. dropped plans for a 10.5 billion- pound ($21.9 billion) takeover, citing a worsening credit market. Mitsubishi UFJ Financial Group Inc. paced the retreat in Asia. Bear Stearns fell in Germany after Lehman Brothers Holdings Inc. cut its recommendation on the New York-based investment bank.
``It looks like there may be more bad news to come,'' said Simon Carter, who helps oversee $3 billion at Aegon Asset Management in Edinburgh. ``The Citigroup writedown due to subprime was much larger than expected. Sainsbury's woes are also not helping.''
The Morgan Stanley Capital International World Index sank 0.4 percent to 1,640.12, while Standard & Poor's 500 Index futures dropped 0.8 percent to 1,505.9 as of 10:10 a.m. in London. Shares in Hong Kong dropped the most since September 2001 after Chinese Premier Wen Jiabao signaled plans to allow citizens to invest in the market are on hold.
The MSCI World has lost 2.5 percent in three days, retreating from a record, on concern that more banks may follow Citigroup and Merrill Lynch & Co. and increase their estimates of losses related to subprime mortgages.
learnstock-market.com
Citigroup Shares Open Higher in Tokyo as Prince Exits
Citigroup Inc., the largest U.S. bank, rose on its first day of trading in Tokyo as Chief Executive Officer Charles Prince resigned to take responsibility for losses stemming from U.S. mortgage defaults.
The bank's shares closed 220 yen, or 5.1 percent, higher at 4,550 yen ($40) after rising as much as 4,580 yen. About 10,000 shares were traded compared with 138.7 million in New York on Nov. 2 when the stock slumped to a four-year low.
The listing comes as Prince resigned following a 57 percent decline in third-quarter profit on writedowns related to defaults on U.S. mortgages and a 32 percent slide in the share price in 2007. The U.S. bank listed in Tokyo after buying Nikko Cordial Corp., Japan's third-largest brokerage, this year.
``It's hard to be optimistic on the business outlook despite the strength we're seeing in the stock today,'' said Naoki Fujiwara, who helps oversee $3.2 billion at Shinkin Asset Management Co. in Tokyo. ``The direct impact of subprime problems seems to be fading but they have yet to deal with ripple effects from the turmoil.''
Sir Win Bischoff is interim chief executive until Prince's replacement is found and former Treasury Secretary Robert E. Rubin has been named chairman, New York-based Citigroup said in a statement today. The bank canceled a scheduled press conference in Tokyo today.
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The bank's shares closed 220 yen, or 5.1 percent, higher at 4,550 yen ($40) after rising as much as 4,580 yen. About 10,000 shares were traded compared with 138.7 million in New York on Nov. 2 when the stock slumped to a four-year low.
The listing comes as Prince resigned following a 57 percent decline in third-quarter profit on writedowns related to defaults on U.S. mortgages and a 32 percent slide in the share price in 2007. The U.S. bank listed in Tokyo after buying Nikko Cordial Corp., Japan's third-largest brokerage, this year.
``It's hard to be optimistic on the business outlook despite the strength we're seeing in the stock today,'' said Naoki Fujiwara, who helps oversee $3.2 billion at Shinkin Asset Management Co. in Tokyo. ``The direct impact of subprime problems seems to be fading but they have yet to deal with ripple effects from the turmoil.''
Sir Win Bischoff is interim chief executive until Prince's replacement is found and former Treasury Secretary Robert E. Rubin has been named chairman, New York-based Citigroup said in a statement today. The bank canceled a scheduled press conference in Tokyo today.
learnstock-market.com
суббота, 3 ноября 2007 г.
European Stocks Drop, Led by Banks; Fortis, Barclays Retreat
European stocks declined for a second day, led by banks, on concern losses from the U.S. subprime- mortgage collapse will deepen.
Fortis dropped the most in more than a month after UBS AG recommended selling the shares because of possible credit losses at the Belgian lender. Barclays Plc fell to a two-year low on speculation it approached the Bank of England for emergency funding.
``It certainly doesn't seem that the banks are particularly realistic,'' said Colin McLean, managing director of SVM Asset Management in Edinburgh, who oversees about $1 billion. ``All we get from time to time is some reassuring words and closing of positions and that has given the illusion of a turning point.''
The Dow Jones Stoxx 600 Index fell 0.7 percent to 379.92, giving a loss of 1 percent for this week. The Stoxx 600 Banks Index, the region's worst-performing industry group this year, dropped to a six-week low.
The risk of owning European corporate bonds rose, according to traders of credit-default swaps. European government bonds increased for a second day as investors sought the safety of debt amid a slump in stock markets.
Stocks pared some losses after a U.S. report showed employment in the world's largest economy rose more than forecast in October. Payrolls last month climbed by 166,000 after a 96,000 increase in September, the Labor Department said. Economists surveyed by Bloomberg News had estimated an increase of 85,000.
U.S. Stock Volatility Surges to Six-Week High as Merrill Drops
A gauge of expected stock market swings rose to a six-week high after Merrill Lynch & Co.'s shares plunged on concern the world's biggest brokerage faces $10 billion in new writedowns.
The Chicago Board Options Exchange Volatility Index, or VIX, reached 25 for the first time since Sept. 18, when the Federal Reserve cut its benchmark interest rate by a quarter-point. The index, derived from prices for Standard & Poor's 500 Index options, rose 0.9 percent to 23.01 after earlier reaching 25.17.
``People are more nervous about a correction and are willing to pay more to avoid it,'' said Henry Schwartz, president of Trade Alert LLC, a New York-based provider of options market analytics. ``Bad news could be lurking in the financials.''
The S&P 500 rose 0.1 percent. Financial shares in the index dropped 1.6 percent to their lowest level since June 2006.
November 32.50 calls, the most-active contracts tied to the VIX, added 29 percent to 45 cents and made up a fifth of today's total call volume. Calls give the right to buy a security for a certain amount, the strike price, by a given date. Puts convey the right to sell.
The VIX is known as the stock market's ``fear gauge'' because it tends to rise when stocks are falling. Higher readings indicate traders expect larger share-price swings in the next 30 days.
Merrill declined $4.91, or 7.9 percent, to $57.28, the biggest slide since the Sept. 11, 2001, terrorist attacks.
пятница, 2 ноября 2007 г.
BA, BSkyB, Friends Provident, BAT, BP, ICI: U.K. Equity Preview
The following stocks may rise or fall in U.K. markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 135.5, or 2 percent, to close at 6,586.1. The FTSE All-Share Index lost 64.74, or 1.9 percent, to 3,389.38.
Ireland's ISEQ Index declined 165.36, or 2.1 percent, to close at 7745.76.
U.K. Companies:
British American Tobacco Plc (BATS LN): Merrill Lynch & Co. lowered its recommendation on the world's second-biggest publicly traded cigarette maker to ``neutral'' from ``buy.'' BAT's stock lost 3 pence, or 0.2 percent, to 1,827.
British Airways Plc (BAY LN): Europe's third-largest airline said first-half profit rose 52 percent as it carried more business passengers on routes to the U.S. Net income in the six months through September increased to 478 million pounds ($995 million), or 41.2 pence a share, from 315 million pounds, or 27.4 pence, a year earlier, the London-based company said in a statement today. BA's stock retreated 15.25 pence, or 3.4 percent, to 430.
BP Plc (BP/ LN): The U.K.'s third-largest Russian venture, TNK-BP, will ``soon'' begin analyzing a heavy oil field in Venezuela while seeking to expand production overseas. BP's stock lost 6.5 pence, or 1 percent, to 618.5
British Sky Broadcasting Group Plc (BSY LN): The U.K.'s biggest pay-television broadcaster said it added 83,000 new customers in the first quarter, more than the 80,000 that analysts expected. First-quarter net income dropped to 84 million pounds, from 116 million pounds a year earlier. BSkyB's stock rose 9.5 pence, or 1.4 percent, to 690.
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The benchmark FTSE 100 Index fell 135.5, or 2 percent, to close at 6,586.1. The FTSE All-Share Index lost 64.74, or 1.9 percent, to 3,389.38.
Ireland's ISEQ Index declined 165.36, or 2.1 percent, to close at 7745.76.
U.K. Companies:
British American Tobacco Plc (BATS LN): Merrill Lynch & Co. lowered its recommendation on the world's second-biggest publicly traded cigarette maker to ``neutral'' from ``buy.'' BAT's stock lost 3 pence, or 0.2 percent, to 1,827.
British Airways Plc (BAY LN): Europe's third-largest airline said first-half profit rose 52 percent as it carried more business passengers on routes to the U.S. Net income in the six months through September increased to 478 million pounds ($995 million), or 41.2 pence a share, from 315 million pounds, or 27.4 pence, a year earlier, the London-based company said in a statement today. BA's stock retreated 15.25 pence, or 3.4 percent, to 430.
BP Plc (BP/ LN): The U.K.'s third-largest Russian venture, TNK-BP, will ``soon'' begin analyzing a heavy oil field in Venezuela while seeking to expand production overseas. BP's stock lost 6.5 pence, or 1 percent, to 618.5
British Sky Broadcasting Group Plc (BSY LN): The U.K.'s biggest pay-television broadcaster said it added 83,000 new customers in the first quarter, more than the 80,000 that analysts expected. First-quarter net income dropped to 84 million pounds, from 116 million pounds a year earlier. BSkyB's stock rose 9.5 pence, or 1.4 percent, to 690.
earnwithmicrocap.com
European Stock Futures Drop; Deutsche Bank, UBS May Decline
European stock-index futures fell, following losses in U.S. and Asian markets, before a report that may show employment in the U.S. slowed in October.
Deutsche Bank AG, UBS AG and Credit Suisse Group may drop after their U.S.-traded securities slipped.
``European banks are likely to come under pressure but it's going to be a tough day across the board,'' said Simon Payne, a trader at Fortis Bank SA in Madrid. ``People are worried about an economic slowdown again and the payrolls data will be very closely watched.''
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 28, or 0.6 percent, to 4,401 at 7 a.m. in London. The U.K.'s FTSE 100 Index may decrease 45, according to CMC Markets.
U.S. stocks tumbled yesterday, led by the steepest drop in financial companies in five years, after analysts said Citigroup Inc. may be short of capital and advised investors to sell the shares. Asian stocks fell the most in almost two weeks today.
Payrolls grew by 85,000 after a gain of 110,000 in September, according to the median estimate of 86 economists surveyed by Bloomberg News. The jobless rate held at 4.7 percent for a second month, based on the survey. The Labor Department release is due at 8:30 a.m. in Washington.
U.S. traded shares of Deutsche Bank, Germany's biggest bank, slid 1.1 percent from the close in Frankfurt. UBS, Europe's largest bank by assets, and Credit Suisse, Switzerland's second- biggest bank, also lost 1.1 percent from their Zurich close.
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Deutsche Bank AG, UBS AG and Credit Suisse Group may drop after their U.S.-traded securities slipped.
``European banks are likely to come under pressure but it's going to be a tough day across the board,'' said Simon Payne, a trader at Fortis Bank SA in Madrid. ``People are worried about an economic slowdown again and the payrolls data will be very closely watched.''
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 28, or 0.6 percent, to 4,401 at 7 a.m. in London. The U.K.'s FTSE 100 Index may decrease 45, according to CMC Markets.
U.S. stocks tumbled yesterday, led by the steepest drop in financial companies in five years, after analysts said Citigroup Inc. may be short of capital and advised investors to sell the shares. Asian stocks fell the most in almost two weeks today.
Payrolls grew by 85,000 after a gain of 110,000 in September, according to the median estimate of 86 economists surveyed by Bloomberg News. The jobless rate held at 4.7 percent for a second month, based on the survey. The Labor Department release is due at 8:30 a.m. in Washington.
U.S. traded shares of Deutsche Bank, Germany's biggest bank, slid 1.1 percent from the close in Frankfurt. UBS, Europe's largest bank by assets, and Credit Suisse, Switzerland's second- biggest bank, also lost 1.1 percent from their Zurich close.
earnwithmicrocap.com
четверг, 1 ноября 2007 г.
European Stocks Decline; Credit Suisse, AstraZeneca Lead Drop
European stocks fell, led by financial companies, after Credit Suisse Group posted the first profit decline in a year as it wrote down $1.9 billion in fixed-income securities and leveraged loans.
Barclays Plc and HSBC Holdings Plc also dropped. AstraZeneca Plc slipped after the U.K.'s second-largest pharmaceutical company said Canadian generic-drug maker Cobalt Pharmaceuticals Inc. asked U.S. regulators to approve a copy of its Crestor cholesterol treatment.
The Dow Jones Stoxx 600 Index lost 0.2 percent to 387.7 at 8:31 a.m. in London. The Stoxx 50 and the Euro Stoxx 50, a measure for the euro region, both declined 0.3 percent.
``I am not sure I see encouraging signs,'' said Andrew Cole, who helps oversee about $48 billion at Baring Asset Management in London. ``Conditions in the banking environment are pretty tough. There is a sense that we are through the worst. That is probably overly optimistic.''
Asian stocks rose after the Federal Reserve cut interest rates and U.S. economic growth accelerated, bolstering confidence in the region's biggest export market. U.S. stock-index futures fell.
Benchmarks decreased in 11 of the 15 western European markets that were open. France's CAC 40 and the U.K.'s FTSE 100 lost 0.6 percent, and Germany's DAX slid 0.1 percent. Austria was closed for a holiday.
German two-year government notes fell for a second day, sending yields to the highest in two weeks, as signs of accelerating inflation fuel speculation European Central Bank policy makers will raise interest rates. The risk of owning European corporate bonds rose, according to traders of credit- default swaps.
Wall Street Traders Set to Knock Each Other Out for Charity
When Josh ``The Matrix'' Weintraub of Bear Stearns Cos. steps into the boxing ring tonight, he will have 130 supporters in his corner as he fights Goldman Sachs Group Inc.'s Shane ``Second Coming'' Kinahan in a charity match.
Weintraub and Kinahan are two of the 16 Wall Street professionals -- all men -- who have trained since August to beat each other up in a series of three-round bouts. Almost 800 friends, family, colleagues and guests paid as much as $800 apiece to watch and dine on beef tenderloin and Guinness ice cream.
The first Extell Wall Street Boxing Charity Championship will raise money for organizations including the Prostate Cancer Foundation and Hedge Funds Care, a New York-based group that combats child abuse. Tuesday's Children, which helps families of Sept. 11 victims, and Say Yes to Education, which aids inner- city school kids, also will benefit from tonight's black-tie gala at the Hammerstein Ballroom in Manhattan.
``It seemed a great way to contribute my time and energy to help the community and at the same time do something I like to do,'' said Weintraub, 37. The mortgage bond trader, who sold tickets to friends and colleagues, is raising money for the Valerie Fund, an organization that aids children with cancer. ``The night will be full out.''
While Weintraub fought during his freshman and junior years at Lehigh University in Bethlehem, Pennsylvania, some competitors have little or no previous boxing experience. That hasn't stopped anyone from getting into the spirit, complete with colorful fight names.
вторник, 30 октября 2007 г.
Alcatel-Lucent, Bouygues, Rexel, Sanofi: French Equity Preview
The following stocks may rise or fall on the Paris stock exchange. Symbols are in parentheses after company names and prices are from the last close.
France's CAC 40 Index fell 32.26, or 0.6 percent, to 5,803.9. The SBF 120 Index also fell 0.7 percent.
Alcatel-Lucent SA (ALU FP): The world's largest maker of telecommunications equipment reports earnings before the market opens in Paris. The company may report a loss of 129.4 million euros, according to the average of nine analyst estimates compiled by Bloomberg, hurt by falling investment in wireless networks and costs to fire employees. The shares were unchanged at 6.63 euros.
Alstom SA (ALO FP): The world's second-largest train maker won a contract worth 220 million euros to supply 30 commuter trains to Spanish rail transport operator Renfe. The shares dropped 15 cents to 164.99 euros.
Colas SA (RE FP): The road-building unit of Bouygues SA, France's second-biggest construction company, said its board of directors named Herve Le Bouc as chairman and chief executive. The shares added 1.94 euros, or 0.6 percent, to 317.97 euros.
Neotion (ALNEO FP): The company, which develops decoder chips for the digital television market, postponed a planned share sale to an unnamed foreign partner. The company said it is still in talks and has 3.7 million euros in loans ready in case the talks fail. The shares fell 48 cents, or 8.7 percent, to 5.02 euros.
BP, Celsis, Reuters, Tate & Lyle: U.K., Irish Equity Preview
The following stocks may rise or fall in U.K. markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 47, or 0.7 percent, to close at 6,659. The FTSE All-Share Index lost 23.31, or 0.7 percent, to 3,419.32.
Ireland's ISEQ Index declined 32.34, or 0.4 percent, to close at 7,835.09.
U.K. Companies:
British Airways Plc (BAY LN): Europe's third-biggest carrier's plans to introduce an airline flying between Europe and New York may be thwarted by U.S. Federal Aviation Administration moves, the London-based Times reported, without saying where it obtained its information. BA's stock dropped 3.25, or 0.7 percent, to 434.5.
BP Plc (BP/ LN): Europe's second-largest oil company by market value is in talks with the Abu Dhabi government to find a ``green energy'' process to generate electricity, the London- based Times reported, without saying where it got its information. BP's stock decreased 11.5 pence, or 1.8 percent, to 622.5.
Celsis International Plc (CEL LN): The U.K biotechnology company whose rapid detection kits are used to test for bacteria in vaccines is announcing earnings. Celsis' stock rose 3 pence, or 1.4 percent, to 212.5.
Nord Anglia Education Plc (NAE LN): The U.K school owner is announcing earnings. Nord Anglia's stock retreated 5.75 pence, or 1.5 percent, to 378.
Resolution Plc (RSL LN): Pearl Group Ltd. urged Standard Life Plc to clarify the terms of its offer for Resolution. Resolution's stock added 1 penny, or 0.1 percent, to 729.
Hong Kong's Hang Seng Index Extends Record; Banks, Cnooc Gain
Hong Kong's stocks rose, leaving the Hang Seng Index set for a fourth straight record close. China Construction Bank Corp. led mainland lenders higher on speculation the nation's economic boom will spur borrowing.
China Eastern Airlines Corp., the nation's third-largest carrier, climbed after profit almost doubled in the last quarter.
``The blue chips have been announcing results that are beating estimates, which is supporting the market,'' said Chris Tang, chief investment officer of Marco Polo Pure Asset Management in Hong Kong, which manages $200 million in assets.
Cnooc Ltd. climbed after crude oil yesterday topped $93 a barrel in New York. Sun Hung Kai Properties Ltd. paced declines among the city's property developers, the market's best performers of the past week, after it announced plans to sell new shares.
The Hang Seng Index added 44.97, or 0.1 percent, to 31,631.87 as of 2:56 p.m. in Hong Kong, after yesterday closing above 31,000 for the first time. The gauge has surged 55 percent since the start of trading on Aug. 20, when China said it would allow some citizens to invest directly in the city's stocks.
Japan's Nikkei 225 Drops on Takeda Suspension; Sekisui Rallies
Japan's Nikkei 225 Stock Average fell for the first time in three days, led by shares of Takeda Pharmaceutical Co. after U.S. drug regulators recommended patient studies on one of its most promising experimental medicines be suspended.
Takeda, Japan's largest drugmaker, fell by the most in two decades and at least three brokerages cut their recommendations on the stock. Toshiba Corp. led declines by companies whose earnings disappointed investors, prompting two brokerages to lower their rating on the shares.
Indexes pared losses in the afternoon as Sekisui House Ltd. led gains by homebuilders after the Yomiuri newspaper said the government may relax regulations that slowed the construction of new homes.
``Japanese pharmaceutical companies are relatively small compared to international counterparts, so a single drug can have a big impact on earnings,'' said Masaki Iso, who oversees about $7.3 billion as head of Japanese equities at Yasuda Asset Management Co. in Tokyo. ``The negative effect from the tighter regulations has mainly hit the construction sector.''
The Nikkei 225 fell 47.07, or 0.3 percent, to 16,651.01 at the close of trading in Tokyo. The broader Topix index rose 0.72 point to 1,607.21, after dropping as much as 1 percent.
понедельник, 29 октября 2007 г.
Bond Funds With $155 Billion Imperiled If U.S. Court Voids Law
Municipal-bond investors may be owed billions of dollars, and bond funds holding $155 billion rendered obsolete, as the result of a U.S. Supreme Court fight over state tax powers.
And that might be just the beginning of upheavals in the $2.5 trillion market in debt issued by state and local governments to pay for schools, roads, sewers and other civic works.
The justices hear arguments Nov. 5 on whether Kentucky violates the Constitution by taxing income earned on out-of- state bonds while exempting interest on ones issued by its own cities, school districts and other debt-issuing authorities. Barring such preferential treatment would force 42 states, including New York and California, to either tax their own bonds or give identical breaks to out-of-state bonds.
``It would result in a substantial reconfiguration of the municipal-bond market,'' says Gerard J. Lian, executive director of the Morgan Stanley/Van Kampen tax-exempt mutual fund group, which manages $15.8 billion. In a career spanning more than two decades in the business, ``it would rank up there as the biggest event that I can remember,'' he says.
A ruling against Kentucky would let holders of out-of-state bonds demand billions of dollars in tax refunds, according to a brief filed by the other 49 states. New York alone would face $200 million in claims. The court will rule by July.
UBS Loses Investor Confidence as Biggest Fund Manager
UBS AG, the Zurich-based banking giant that manages the most money for the rich, is getting no respect from its shareholders who are beginning to wonder what happened to their investment.
The 145-year-old Swiss icon ranks as Europe's biggest bank by assets, has Aaa-rated debt and oversees $2.8 trillion for clients, the same amount as the U.S. government's annual budget. Until two years ago, UBS avoided the volatile fixed-income securities that drove earnings to records across Wall Street.
The decision to abandon that strategy and invest in mortgages just as the U.S. housing market started to collapse erased 21 percent from UBS's share price in the past 12 months and cost the jobs of Chief Executive Officer Peter Wuffli, his finance chief Clive Standish and investment-banking head Huw Jenkins. The man charged with restoring the bank's performance, 43-year-old Marcel Rohner, must now persuade investors that UBS can combine the less predictable income of an investment bank with the stability of a money manager.
``UBS was always supposed to be stable, and this year the losses are worse than at other banks,'' said Francoise Mensi, who helps manage more than $1.7 billion at Neuchatel, Switzerland- based Banque Bonhote & Cie. and has been selling UBS shares.
Resolution Withdraws Support for Standard Life Bid
Resolution Plc, the target of the biggest takeover fight for a U.K. insurer since 2000, dropped its support for an offer by Standard Life Plc after rival Pearl Group Ltd. made a higher bid.
Pearl increased its all-cash offer for the company to 4.93 billion pounds ($10.2 billion), or 720 pence a share, on Oct. 26 and raised it stake in Resolution to 24 percent from 16.5 percent. Resolution withdrew its backing for Standard Life's cash-and-stock bid of 713.6 pence a share that needs the approval of 75 percent of Resolution's shareholders, the company said in a statement today.
``Pearl seems to hold most the cards at present,'' Sanford C. Bernstein & Co. analyst Bruno Paulson said in an e-mailed note to clients today. Standard Life may be able to make its offer all cash and stymie Pearl by selling its Canadian operation that is valued at about 1 billion pounds, Paulson said. He rates Standard Life shares ``outperform.''
Standard Life is considering restructuring its bid for Resolution to reduce the number of shareholders needed to approve the offer for what would be the U.K.'s biggest insurance takeover since CGU bought Norwich Union Plc for 7.4 billion pounds in 2000 to create Aviva Plc, Britain's largest insurer.
Ospraie's Anderson Dives Into Commodities, Survives Swoon
For Dwight Anderson, it was the kind of death-defying ride he hadn't experienced since the last time he jumped out of a helicopter on skis in Alaska. In the first five months of 2006, Anderson's commodities hedge fund firm, New York-based Ospraie Management LLC, suffered a series of setbacks that led to the closing of one of its funds and a 19 percent loss in Anderson's flagship $3.6 billion Ospraie Fund. ``Every single major position we had -- equities, agriculture, energy, precious metals and base metals -- lost money,'' says Anderson, 40, referring to losses in April and May 2006. ``It was highly stressful. You just feel a fatigue in your whole body.''
Ospraie, the world's biggest commodities hedge fund firm, with $7 billion under management, recovered from that crisis -- only to be hit by another much less severe downdraft in July and August, when the U.S. credit markets seized up in response to rising defaults in subprime mortgages. ``August was a very difficult month for commodity hedge funds,'' says David Friche, portfolio manager at Geneva-based Banque SYZ & Co., which invests more than $8.5 billion in hedge funds. ``The fundamentals of demand and supply weren't in place, and people were selling commodities just to get cash.''
India May Keep Interest Rates Unchanged Amid Capital Controls
India's central bank will probably keep all three of its policy rates unchanged for the second time this year amid expectations curbs on foreign capital will prevent excess cash from reigniting inflation.
The Reserve Bank of India will hold its overnight borrowing rate at 6 percent and leave its lending rate at 7.75 percent, according to all but three of 22 analysts in a Bloomberg survey. Fifteen expect no change in the level of reserves lenders must set aside. The decision is due at noon in Mumbai tomorrow.
Governor Yaga Venugopal Reddy has managed to drag inflation down to a five-year low by raising interest rates nine times since October 2004 and lifting the cash-reserve ratio on four occasions. He's now getting help from the stock-market regulator, which is clamping down on record foreign inflows that have pushed the rupee to a 9 1/2-year high and increased money supply.
Absolute Capital Says Investors Back Changes to Funds
Absolute Capital Management Holdings Ltd., the hedge-fund manager that halted withdrawals after its investment chief quit, said shareholders in four funds backed a restructuring that restricts redemptions for a year.
Absolute Capital stopped withdrawals from seven equity funds after co-founder and co-chief investment officer Florian Homm, 48, quit last month. Following Homm's abrupt departure the company's shares dropped by two-thirds and investors tried to remove $100 million.
The day after Homm left, the company told investors that the funds held over-the-counter U.S. stocks that couldn't be sold at the prices the firm had on its books. During meetings in the Cayman Islands on Oct. 27, investors in four funds voted in favor of restricting withdrawals to allow time to sell the illiquid securities, the company said in a Regulatory News Service statement today.
``The investors are being held hostage,'' said Colin McLean, who helps oversee about $1.8 billion at SVM Asset Management in Edinburgh. ``They didn't really have a choice.''
Treasury Rally Augured by Aversion to Borrowing Costs
The real mavens in the U.S. bond market may be your next-door neighbors, and they say now's the time to buy Treasuries.
Twenty percent of Americans who say it's a bad time to buy a house cite high interest rates as a reason, according to a monthly survey of consumers by the University of Michigan in Ann Arbor. That threshold has been exceeded five other times since 1988, each followed by a rally in Treasuries.
While more than 80 percent of the economists surveyed by Bloomberg expect Treasury prices to fall this year, consumer attitudes suggest bonds are a bargain. The last time this many participants said borrowing costs were too high was in July 2006, just as 10-year yields started to decline by more than half a percentage point. Before then, consumers anticipated bond market gains in 1989, 1990, 1995 and 2000.
O'Neal Ouster Makes Mess of Maternal Merrill Lynch
Losing a lot of money for shareholders is the surest way to end a career on Wall Street, as Merrill Lynch & Co.'s Stan O'Neal found out this month after the embattled chief executive officer delivered the worst news in the firm's 93-year history.
The third-quarter loss of $2.24 billion, or $2.82 a share, was about six times more than O'Neal acknowledged on Oct. 5 and derived from $8.4 billion of writedowns for the subprime mortgages, asset-backed bonds and loans gone bad under his watch.
Merrill's result, coming during a credit market shakeout that triggered a run on a British bank and caused Switzerland's largest financial institution to fire its CEO, was the biggest quarterly debacle in the history of the securities industry. That was enough for the 11-person board, nine of whom were handpicked by O'Neal during his five years as CEO, to make it clear the 56- year-old grandson of a former slave is leaving, possibly as early as today, according to a person with knowledge of the directors' discussions.
For Merrill, a firm that over nine decades built a corporate culture that promoted from within and gently nudged its chiefs into distinguished retirement, O'Neal's ouster is an abrupt departure. To his predecessors, many of whom resented his penchant for getting rid of dozens of Merrill loyalists, the losses are a painful reminder of how much has changed at the brokerage they used to call ``Mother Merrill.''
Alibaba Raises $1.5 Billion in Share Sale, People Say
Alibaba.com Ltd. raised $1.5 billion in the second-biggest initial public offering sale of an Internet company after Google Inc., said two people with direct knowledge of the matter.
Investors sought more than 180 times the number of shares on offer, the people said. Alibaba.com, the operator of China's largest trading Web site for companies, and its parent sold 858.9 million shares, a 17 percent stake, at HK$13.50 apiece in Hong Kong, the people said. That values Alibaba at about $8.8 billion.
The sale by Hangzhou-based Alibaba, the biggest by a Chinese Internet company, underscores the potential for growth in China. The country may overtake the U.S. as the biggest Web market by users next year, analysts said. The IPO also may lure other local Web businesses to sell stock in Hong Kong, where the Hang Seng Index has jumped 57 percent this year.
``Alibaba is certainly among the most interesting issues to come to market in a long time, given the firm's unique market position, exceptional growth opportunities, and high barriers to competitive entry,'' said Jim Oberweis, who helps oversee $3 billion as president of Oberweis Asset Management Inc. in Lisle, Illinois. Oberweis ordered Alibaba shares.
South African September Credit Growth Slows to 22.5%
South African credit growth slowed to an annual 22.5 percent in September as higher interest rates and stricter borrowing laws slashed spending on cars and furniture.
Borrowing growth by households and companies slowed from a revised 23.2 percent in August, the Pretoria-based central bank said. Credit was expected to expand 21.6 percent, according to the median estimate of 13 economists surveyed by Bloomberg.
The Reserve Bank increased its benchmark interest rate three times this year to 10.5 percent, concerned that strong consumer spending will stoke inflation. Credit growth in excess of 20 percent for almost two years, and inflation above the 3 percent to 6 percent target range for six months, have added to pressure on the central bank to raise interest rates further.
``There's a moderation in the credit numbers, but not a collapse,'' said Monale Ratsoma, an economist at Absa Group Ltd., South Africa's third-largest bank. ``Inflation dynamics are not looking good. The risks for interest rate hikes have increased significantly.''
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