03 July 2009
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UK market news

Balfour Beatty half year trading update : the Co said trading performance in the year continues to be in line with its expectations, underpinned by continued infrastructure expenditure by its customers, the benefit of acquisitions and its tight control of costs. Order book, at the half year, is expected to be broadly in line with the £12.8bln reported for 31 December 2008. Balfour Beatty added its cash position remains strong with average net cash in excess of £200m for the first six months of 2009. Regarding the outlook, The Co said : "our strong market positions, the resilience of our business model and our high-quality order book mean that we anticipate making progress in 2009."

Rio Tinto completed its $15.2bln share sale.

BHP Billiton agreed to sell the Yabulu nickel refinery in Australia. The Co will write down the value of the refinery by a total $675m.

British Airways to release monthly traffic figures.

Mitchell & Butlers plans to offer its two largest shareholders board representation (Financial Times).

Homeserve Plc: shareholders meeting

Bank of Ireland: shareholders meeting

Friends Provident announced that Court approval for the demerger of the company's stake in F&C Asset Management to shareholders and the related reduction of capital of Friends Provident group was obtained yesterday.

Marshall said 1H revenue was £166m vs £211m a year before. The company announced the successful completion of a £34m (net of expenses) rights issue.

Imperial Innovations increased its stake in OSspray.

Universe Group said it expects to report an operating profit for 1H.

Media: WPP Group (-7.01% to 384.5p), United Business Media (-2.97% to 384p) and Reed Elsevier (-3.56% to 440p) reached a new 3-month relative low against the FTSE 100.

Basic Rsrc, Media and Telecom shares fell most in London yesterday.

Technology: Sage Group (-4.03% to 173.7p) reached a new 3-month relative low against the FTSE 100.

Travel & Leisure: British Airways (-4.03% to 119p) closed at a 3-month relative low against the FTSE 100.

Construction & Materials: CRH (-2.02% to E15.53) closed at a 3-month relative low against the Irish Overall index.

Latest broker recommendations

McBride was raised to "neutral" from "sell" at Goldman Sachs.

Bunzl was rated new "equal-weight" at Morgan Stanley.
 
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European Markets

Germany / Austria

Lanxess was upgraded to "buy" from "hold" at Deutsche Bank.

Metro was rated "neutral" at UBS.

Siemens agreed to pay E75m over 15 years to combat corruption.

Deutsche Bank Inflation Conference, Singapore.

Deutsche Telekom is looking for an asset swap deal for T-Mobile UK (Financial Times).

Celesio: major shareholder Franz Haniel is asking further information about the acquisition of Brasil's Panpharma.

 

France

EDF sold 110b yen of samurai bonds. The stock was cut to "equal-weight" from "overweight" from Morgan Stanley.

BNP Paribas and Greece's Piraeus bank plan to form a fund management partnership.

France Telecom doesn't plan to buy T-Mobile's UK operation, according to CFO Gervais Pellissier. Stock was cut to "sell" from "neutral" at UBS. In other news, the Co sold to Rue du Commerce Alapage.com.

Areva: French state fund may buy the Co's 26% stake in Eramet (Le Figaro).

Hermes was cut to "underweight" from "neutral" at HSBC.

Christian Dior was cut to "neutral" from "overweight" at HSBC.

Vallourec raised its stake in Indonesia's PT Citra Tubindo to 78.2%.

Financial Services: Fonciere Des Regions (+2.04% to E57) reached a new 3-month relative high against the Cac 40.

Industrial Goods & Services: Zodiac Aerospace (+1.82% to E23.75) closed at a 3-month relative high against the Cac 40.

Piscine Desjoyaux reported 3Q sales down 26% to E23.4m. The company expects to exit quickly from the current crisis.

 

Spain / Portugal / Greece

Telefonica Chairman declined to comment on a possible acquisition of T-Mobile UK (Reuters).

Iberdrola, Endesa: Spain said its oldest nuclear power station may stay open for the next four years (Reuters).

Construction & Materials: ACS (-2.29% to E34.8) reached a new 3-month relative low against the Ibex.

Banks: Bankinter (-2.82% to E8.28) closed at a 3-month relative low against the Ibex.

Utilities: Iberdrola (-2.92% to E5.49) closed at a 3-month relative low against the Ibex.

Food & Beverage: Coca-Cola Hellenic Bottling (+1.01% to E15.04) reached a new 3-month relative high against the FTSE/ASE20.

Construction & Materials: Cimpor (+0.09% to E5.37) closed at a 3-month relative high against the PSI 20.
 
Today’s economic events (CE time)
FR 09:50: Jun F PMI Services, exp.: 47.5
GE 09:55: Jun F PMI Services, exp.: 44.3
EC 10:00: Jun F PMI Services, exp.: 44.5
EC 10:00: Jun F PMI Composite, exp.: 44.4
UK 10:30: 1Q BoE Housing Equity Withdrawal, exp.: -£9.0B
UK 10:30: Jun PMI Services, exp.: 51.5
UK 10:30: Jun Official Reserves (Changes)
EC 11:00: May Euro-Zone Retail Sales MoM, exp.: -0.1%
 
 Indices
Last Daily
Change
% YTD
FTSE 100 4,234 -106.44 -4.51
FTSE 250 7,374 -132.70 15.93
FTSE techMARK 100 1,342 -13.76 10.26
Dow Jones 8,281 -223.32 -5.65
Nasdaq 100 1,446 -35.06 19.37
S&P 500 896 -26.91 -0.76
DJ Euro STOXX 50 2,370 -80.08 -3.19
Dax 4,718 -186.95 -1.91
Cac 40 3,116 -100.59 -3.16
SMI 5,355 -117.71 -3.24
Nikkei 225 9,747 -129.48 10.01
Hang Seng 18,120 -57.59 25.95
ASX 3,822 -55.00 2.69
 Bonds
Last % Last %
10Y Gilt 3.74 US 10Y T-Note 3.50
10Y Bund 3.33 US 30Y T-Bond 4.32

 EUR / USD (15min)
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