** EU WRAP **
May 18th, 2006** EUROPEAN MARKETS **
S&P future 0,41%; Bund future 0,15%; Crude future 68,37; €/$ 1,27535; Gold
680,91
** IN PLAY TODAY **
-French bank Societe Generale SA said Thursday that improving
financial markets helped lift first-quarter net profit 20% from a year ago.
Net profit rose to EUR1.47 billion during the period from EUR1.23 billion,
while revenue increased to EUR5.78 billion from EUR4.75 billion. Both sets of
figures were better than expected. Analysts polled by Dow Jones Newswires gave
an average net profit forecast of EUR1.24 billion, and put revenue at EUR5.26
billion. SocGen said financial conditions were very favorable in the
first-quarter, which was characterized by strong economic growth in the U.S. and
a recovery in Europe.
-Belgian-Dutch financial services group Fortis NV Thursday reported a
smaller-than-expected drop in first-quarter net profit amid strong results at
its banking division. Fortis, based in both Brussels and Utrecht, said
first-quarter net profit fell to EUR1.33 billion. That compared with EUR1.51
billion a year earlier when the figure was flattered by EUR443 million in gains.
The profit for the latest quarter exceeded analysts’ forecasts of around
EUR1.01 billion.
- BT Group Plc, the U.K.’s biggest phone company, said fiscal fourth-quarter
profit fell 11 percent as demand for fixed-line voice services waned.
Net income in the three months to March 31 fell to 391 million pounds ($737
million), or 4.6 pence a share, from 440 million pounds, or 5.1 pence, a year
earlier, London-based BT said in a statement today. Sales in the quarter climbed
6.5 percent to 5.13 billion pounds from a restated year-earlier figure, helped
by broadband sales and acquisitions. Analysts had expected net income of 414
million pounds on sales of 5.11 billion pounds in the quarter, according to the
median estimates of six analysts surveyed by Bloomberg News.
- Zurich Financial Services AG said first-quarter profit rose,
helped by a reorganization in its U.K. life business.
Net income increased to $785 million, or 6.88 Swiss francs,
from $779 million, or 6.19 francs, a year earlier, the Zurich-based
company said in a statement. Profit surpassed the $726 million
median estimate of nine analysts surveyed by Bloomberg News.
Operating profit rose to $1.34 billion from $1.03 billion.
- Eni SpA said it was raided by European Union regulators in a probe into
whether commercial policies at some gas companies on the continent are
competitive, the Rome-based company said in a statement as markets were closing
- Air France-KLM Group said fourth-quarter profit fell 30 percent as oil costs
surged. Net income fell to 7 million euros ($8.9 million) from a
restated 10 million euros a year earlier, said Chief Financial
Officer Philippe Calavia today. Profit lagged the median estimate
of 154 million euros by seven analysts surveyed by Bloomberg. Sales
rose 13 percent to 5.2 billion euros.
- Other earnings report of note today: Lanxess, Portugal Telecom and Technip.
** UPS & DOWNS **
+ VIVENDI PRICE ESTIMATE RAISED TO EU33.5 FROM EU32.5 AT UBS
+ BRITISH LAND PRICE ESTIMATE RAISED TO 1500P FROM 1450P AT UBS
+ HSBC SHARES INCREASED TO `EQUAL WEIGHT’ AT MORGAN STANLEY
+ RBOS RAISED TO `HOLD’ FROM `SELL’ AT ABN AMRO
+ DEUTSCHE POST RAISED TO `OVERWEIGHT’ AT HSBC
+ SOLARWORLD RAISED TO `BUY’ FROM `HOLD’ AT CITIGROUP
+ VINCI PRICE EST. RAISED TO EU96.3 VS EU89.05 AT MORGAN STANLEY
- CREDIT AGRICOLE LOWERED TO `HOLD’ FROM `BUY’ AT DEUTSCHE BANK