Salestrading comments from Europe
*A. P. MOELLER CUTS FY OUTLOOK :MAERSKB DC
*A. P. MOELLER 2005 RESULT WAS DK20.2 BLN :MAERSKB DC
*A. P. MOELLER SEES FY GROUP RESULT 40% BELOW 2005 :MAERSKB DC
*UNIVISION BUYERS INCLUDE THOMAS H LEE PARTNERS, SABAN CAPITAL
*UNIVISION DEAL VALUED AT $13.7B WITH $1.4B DEBT ASSUMPTION
** US MARKETS **
Dow -0,27%; Nasdaq -0,07%; S&P -0,09%; Soxx -0,84%; Russel2k 0,31%; DJAIG
-0,43%; 10yr Bond -0,19%; 10yr Yield 5,22%; Crude future 70,84; Gold 583,05
| Energy 1,51%| Materials 0,68%| Telecom 0,16%| Industrials 0,09%| Utilities
0,06%| Healthcare 0,04%| ConsDisc -0,25%| ConsStaples -0,48%| Technology -0,52%|
Financials -0,58%
** US HEADLINES **
- U.S. Home Sales, Consumer Spending Fall in May, Economic Reports May Show
- Dollar Bears Dwindle as Fed Rate Expectations Increase, Survey Indicates
- S&P 500 Index Declines for Third Week on Concern Interest Rates Will Rise
- Treasury 10-Year Note Yields Rise to Four-Year High on Outlook for Rates
- Anadarko to Buy Kerr-McGee, Western Gas for $21 Billion, Doubling Sales
- SEC Rule Requiring Hedge Funds to Register Is Struck Down by Appeals Court
- J&J Wins FDA Approval of Its First HIV Drug; Treats Drug-Resistant Strains
- Bristol-Myers, Sanofi-Aventis Submit New Agreement With Apotex on Plavix
** US: IN PLAY TODAY **
- Warren Buffett will give 602,500 Class B shares of Berkshire Hathaway to
different foundations including Bill Gates’ (Fortune).
- Home Depot said the SEC started an informal probe regarding its stock option
practices.
- Johnson & Johnson received FDA approval to sell its first AIDS drug (PREZISTA-
darunavir). In other news, the NYT said it could buy Pfizer’s consumer unit for
$16bln.
- May New Home Sales hit the tapes at 16:00 CET.
** ASIAN MARKETS **
Nikkei 0,19%; Kospi 0,73%; HSI 0,12%; Taiwan 1,11%; China 1,62%; India -0,22%;
Thailand -0,43%; Australia -0,02%
** ASIAN HEADLINES **
- Asian Shares Rise, Led by Steelmakers, Nippon Steel, Posco, on Mittal Deal
- OneSteel to Buy Smorgon for $1.2 Billion, Combining Australian Steelmakers
- Singapore’s Manufacturing Increased 2.5 Percent in May, Less Than Expected
- Australia Raises 2007 Commodity Sales Forecast to a Record as Prices Rise
- Yuan Falls as Central Bank’s Zhou Reiterates Gradual Currency Appreciation
- Investor Jim Rogers Says China’s Stock Market, Agriculture Are Set to Boom
- Franklin Yang, `Kovner Alumnus,’ Triples Fund By Betting on Chinse Copper
- Mizuho, Mitsubishi UFJ, Sumitomo Overtake Sony, NEC in College Recruiting
- Asian Stocks Seen Rebounding From Region’s Worst Quarterly Loss Since 2002
- Water Outperforms Oil as Supply Shrinks, Luring Pickens, GE, Guy Hands
** EUROPEAN MARKETS **
S&P future 0,22%; Bund future 0,07%; Crude future 70,74; €/$ 1,2514; Gold 584,3
** EUROPE: IN PLAY TODAY **
- Mittal Steel Co. stepped closer to
pulling off the steel industry’s biggest takeover after Arcelor
SA accepted an increased offer valued at 26.9 billion euros
($33.7 billion), ending a bitter five-month feud.
- Vossloh AG: The German train-equipment supplier cut
its 2006 profit forecast to 35.6 million euros from an prior
prediction of 47.3 million euros, on declining earnings at its
information-technology unit and restructuring costs.
- Roche Holding AG: The world’s largest cancer
drugmaker and partner Trimeris Inc. said in a statement
distributed by Business Wire that the U.S. Food and Drug
Administration approved the combination of its Fuzeon HIV
treatment with Darunavir.
- Colruyt SA: Belgium’s biggest discount food
retailer will release its fiscal full-year 2005 earnings after
European stock markets close.
- Alstom SA: Shares of the builder of stations that
generate a fifth of the world’s electricity has been added to the
CAC-40 Index replacing Thales SA, Europe’s biggest maker
of defense electronics.
** EUROPE: UPS & DOWNS **
+ ASML PRICE ESTIMATE RAISED TO EU16.1 FROM EU14.2 AT HSBC
+ APPLE, MCDONALD’S ADDED TO CITIGROUP’S `RECOMMENDED LIST’
+ DELHAIZE RAISED TO `BUY’ FROM `NEUTRAL’ AT MERRILL LYNCH
+ GROUP 4 SECURICOR RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE
+ IMPERIAL TOBACCO ADDED TO JPMORGAN’S `ANALYST FOCUS LIST’
- BANK AUSTRIA CUT TO `HOLD’ FROM `BUY’ AT CITIGROUP
- SWISS RE PRICE ESTIMATE CUT TO SF106 FROM SF116 AT LEHMAN
** US MARKETS **
Dow -0,54%; Nasdaq -0,85%; S&P -0,53%; Soxx -1,36%; Russel2k -0,38%; DJAIG
-0,47%; 10yr Bond -0,04%; 10yr Yield 5,2%; Crude future 70,7; Gold 583,85
| Energy 0,43%| ConsStaples -0,12%| Financials -0,38%| Materials -0,4%|
Utilities -0,45%| Healthcare -0,58%| Telecom -0,6%| ConsDisc -0,7%| Industrials
-0,71%| Technology -1,32%
** US HEADLINES **
- Goldman Increases Associated Ports Bid to $5.1 Billion, Topping Macquarie
- General Motors Plans Gas-Electric Car to Catch Up to Toyota, People Say
- Durable Goods Orders in U.S. Probably Rose on Computer, Machinery Demand
- Treasuries Poised for Second Week of Declines as Interest Rate Bets Rise
- Vonage IPO Investors Overlooked Losses, Growing Expenses and Citron’s Past
- Generic Drug Revolution, Pushed by Medco, May Cut U.S. Costs $49 Billion
- Dollar May Strengthen on Speculation Federal Reserve to Raise Rates Twice
** US: IN PLAY TODAY **
- Oracle (+0.5% after hours) reports Q4 (May) earnings of $0.29 per share,
$0.01 better than the Reuters Estimates consensus of $0.28; non-GAAP revenues
rose 21.7% year/year to $4.94 bln vs. the $4.76 bln consensus. Co pre-announced
non-GAAP EPS of $0.29 on revs of $4.94 bln on June 15th.
- With no notable earnings reports scheduled today, investors will look for
economic data and perhaps ensuing action in the Treasury market to set the tone
of trading for the day, especially with the yield on the 10-yr note near 4-yr
highs. May Durable Orders at 14:30 CET is the only scheduled report but will
offer investors an update on the health of business investment.
** ASIAN MARKETS **
Nikkei -0,08%; Kospi -1,05%; HSI -0,56%; Taiwan -0,51%; China 0,45%; India
-0,76%; Thailand -0,34%; Australia -0,66%
** ASIAN HEADLINES **
- Asian Shares Drop on Concern Over Economic Growth; Nissan, Kookmin Slide
- Carlyle’s Bid for Taiwan Eastern Multimedia Company Held Up, Official Says
- UBS, Macquarie Top Acquisition Rankings in Australia After Record Deals
- China’s Aluminum Corp. Seeks to Invest in Mongolian, Russian Copper Mines
- Singapore’s Consumer Prices Increased 1.1 Percent in May From Year Earlier
- PCCW Shares Fall on Concern China Network May Step in, Delay Asset Sale
- Thailand to List CAT Telecom and TOT in Second Quarter of 2007 After Delay
- China’s Datang, Utility Shares May Gain as Government Eases Price Controls
- Toyota’s Watanabe Risks Quality to Cut Engine Costs as Steel Prices Rise
** EUROPEAN MARKETS **
S&P future 0,03%; Bund future -0,04%; Crude future 70,7; €/$ 1,2569; Gold 583,85
** EUROPE: IN PLAY TODAY **
- Barclays Plc: The U.K.’s third-biggest bank by
market value agreed to buy HomEq Servicing Corp., a U.S.
mortgage-servicing unit, from Wachovia Corp. for $469
million as it seeks to package and trade more debt in the world’s
largest economy.
- BNP Paribas SA: The French bank is offering 1
billion euros ($1.3 billion) to buy 51 percent of Fiat SpA’s Fidis Retail
consumer-finance business, Radiocor reported, citing unidentified people
familiar with the transaction.
- Continental AG: The auto parts maker expects an
improved operating profit for the second quarter before special
items, Reuters reported, citing Chief Financial Officer Alan
Hippe.
- Deutsche Telekom AG: European Union regulators are
considering placing limits on charges for mobile-phone text
messages, threatening revenue at companies including Deutsche
Telekom, according to an EU draft proposal obtained by Bloomberg.
- European Aeronautic Defence & Space Co.: The parent
of Airbus SAS may be active. Airbus has raised the list prices on
all its aircraft, the Financial Times Deutschland said, citing a
company spokesman.
- Fugro NV: The world’s largest surveyor of
deepwater oil fields is scheduled to give a first-half trading
update. Fugro said May 10 that it expects record profit and sales
this year as demand for its services increases.
- InBev NV: Anheuser-Busch Cos, the world’s
largest brewer, is negotiating to allow its distributors to sell
and market InBev NV’s European brands in the U.S., according to
Beer Business Daily, an industry journal.
- Nutreco Holding NV: A Dutch animal-feed maker said
it will pay a 300 million euro dividend to
shareholders. The company will also start a 50 million euro share
buyback program, it said in an e-mailed statement.
- Scottish Power Plc: The U.K.’s fifth-largest energy
provider will raise the prices it charges customers for
electricity by 10 percent and natural gas by 17 percent to cope
with rising costs.
- Volkswagen AG: Europe’s largest carmaker may win 95
percent acceptance of an early retirement program and more than
1,000 workers may take up a buyout package in a workforce-cutback
program aimed at reducing costs, said Bernd Osterloh, head of the
company’s works council.
** EUROPE: UPS & DOWNS **
+ STATOIL RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ ROYAL DUTCH SHELL RAISED TO `BUY’ FROM `HOLD’ AT DEUTSCHE BANK
+ ACCOR PRICE ESTIMATE RAISED TO EU62 FROM EU60 AT UBS
+ ENI PRICE TARGET RAISED 4% TO EU29 VS EU28 AT DEUTSCHE BANK
+ OMV PRICE TARGET RAISED TO EU55 VS EU50 AT DEUTSCHE BANK
+ TOTAL PRICE TARGET RAISED TO EU65 VS EU62.5 AT DEUTSCHE BANK
+ BP PRICE TARGET RAISED TO 800P VS 750P AT DEUTSCHE BANK
- KPN CUT TO `EQUAL-WEIGHT’ VS `OVERWEIGHT’ AT MORGAN STANLEY
** US MARKETS **
Dow 0,95%; Nasdaq 1,62%; S&P 0,97%; Soxx 2,09%; Russel2k 1,94%; DJAIG 0,92%;
10yr Bond -0,01%; 10yr Yield 5,16%; Crude future 70,6; Gold 592,46
| Materials 2,4%| Energy 1,92%| Technology 1,67%| Industrials 1,03%| ConsDisc
0,94%| Financials 0,75%| Healthcare 0,47%| ConsStaples 0,4%| Utilities -0,09%|
Telecom -0,12%
** US HEADLINES **
- Univision Sale Set Back as Kohlberg Kravis, Blackstone Drop Out of Bidding
- Steel Shares Peaked Say Appaloosa, Solaris Hedge Funds as Short Sales Soar
- Paulson to Sell Goldman, China Bank Stake to Ease Treasury Confirmation
- Federated Fund Seeks Municipal Bonds, Dividends to Weather Market Slide
- Oil Trades Above $70 on Concerns U.S. Gasoline Supplies Not High Enough
- Pimco’s Mewbourne Favors Emerging Market Corporate, Local-Currency Debt
- Refco’s Bank Hid $1 Billion in Losses From Hedge Funds and Arafat Casino
** US: IN PLAY TODAY **
With the Fed focused on “incoming” economic data, today’s jobless claims
report at 14:30 CET may garner some added attention. May Leading Indicators will
be out at 16:00 CET but don’t usually have much of an impact on trading.
On the earnings front, A.G. Edwards (AGE), Family Dollar (FDO), and Rite Aid
(RAD) are scheduled to report before the bell while tech companies Oracle Corp
(ORCL) and Solectron (SLR) will post earnings after the close.
** ASIAN MARKETS **
Nikkei 3,2%; Kospi 1,16%; HSI 1,29%; Taiwan 2,95%; China -0,04%; India 2,55%;
Thailand 1,23%; Australia 1,5%
** ASIAN HEADLINES **
- Japan’s Trade Surplus Widens for First Time Since 2004 on Export Demand
- Air China Offers $416 Million to Buy Out Minority Shareholders in CNAC
- Asian Stocks Climb on U.S. Earnings Optimism; Canon, Hyundai Motor Advance
- ZTE Says It Has `Pressure’ to Buy Companies After Nokia, Siemens Merger
- PCCW’s Shares Halted After Soaring Amid Bids for Phone and Media Assets
- China May Curb Foreign Investment in Real Estate, Commerce Official Says
- Bank of Japan’s Nishimura Says Low Interest Rates Could Overheat Economy
- Taiwan Semiconductor Says Its Market Share Rose as New Plants Came On Line
- Gold Rises For a Third Straight Day as Dollar Declines Against Euro, Yen
- Copper Prices Rise in Asia After London Stockpiles Fall to Four-Month Low
** EUROPEAN MARKETS **
S&P future 0,24%; Bund future -0,19%; Crude future 70,59; €/$ 1,26615; Gold
593,43
** EUROPE: IN PLAY TODAY **
- Allianz plans to cut 7,480 jobs at its German Insurance unit and Dresdner Bank
units to boost profit. It will cut 5,000 workers at the insurance operations as
it reduces administrative offices to 10 from 21 and will cut 2,480 jobs from
Dresdner Bank by 2008. Allianz will combine its German life, health and property
and casualty units under one holding company as part of the group’s CEO
restructuring plan.
- Areva SA, the world’s biggest maker of nuclear
power stations, said it has no plans to buy Canada’s Candu
nuclear reactor business, dismissing a Toronto newspaper report
that the companies were in talks for a transaction.
- Fiat SpA: Italy’s largest manufacturer will buy back
all of the Ferrari SpA stake it sold in 2002 except for 5
percent owned by Abu Dhabi, said Chief Executive Officer Sergio
Marchionne.
- Lafarge SA: The world’s biggest maker of building
materials is scheduled to hold a daylong presentation on its
strategy.
- Royal KPN NV: The largest Dutch phone company
settled a securities class-action lawsuit linked to the 2002
bankruptcy of KPNQwest NV for $4.18 million.
- Sanofi-Aventis SA, the world’s third-largest
drugmaker won approval to sell its Acomplia weight-loss drug in
Europe after a panel of scientists gave their support in April.
- Swisscom AG: The Swiss Christian Democratic Party
said the government should transfer a 51 percent stake in
Switzerland’s dominant telephone company to a foundation to
block foreign control. The government owns 62.5 percent of the
provider’s shares. Swiss parliament voted against a plan
proposed by the Cabinet to privatize Swisscom.
** EUROPE: UPS & DOWNS **
+ ANHEUSER PRICE ESTIMATE RAISED 17% TO $49 AT UBS
+ HVB RAISED TO `OVERWEIGHT’ FROM `NEUTRAL’ AT HSBC
+ HBOS PRICE ESTIMATE RAISED TO 1110P FROM 1088P AT LEHMAN
+ VEOLIA PRICE ESTIMATE RAISED TO EU41 FROM EU32 AT DEUTSCHE
+ VOLKSWAGEN RAISED TO `OVERWEIGHT’ FROM `NEUTRAL’ AT JPMORGAN
+ HENNES & MAURITZ RAISED TO `NEUTRAL’ FROM `SELL’ AT MERRILL
+ HBOS PRICE ESTIMATE RAISED TO 1005P FROM 980P AT UBS
- SWISS RE PRICE ESTIMATE CUT TO SF96 FROM SF105 AT UBS