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STOCKS NEWS EUROPE-European shares up as Wall St opens mixed
Fri, 31st Oct 2008 14:31
Oct 31 (Reuters) - STOCKS NEWS Reuters Results diary
Stocks on the move Real-time Equity News
14:10GMT 31Oct2008-European shares up as Wall St opens mixed
------------------------------------------------------------
European shares edge up, having been in and out of positive territory during the session, after Wall Street opens mixed as investors fret about a slowing economy and sources say the General Motors-Chrysler merger is on hold.
The FTSEurofirst 300 index of leading European shares is up 0.6 percent at 909.2 points.
Across the Atlantic, the Dow Jones is up 0.3 percent, the S&P 500 adds 0.2 percent and the Nasdaq Composite falls 0.5 percent.
GM's shares fall 2.3 percent after three people with direct knowledge of talks tell Reuters a deal to merge the U.S. automaker and Chrysler LLC hit an impasse after the Bush administration ruled out funding for it.
Economic data provide further evidence of a deep slowdown across the Atlantic. U.S. consumers cut their monthly spending for the first time in two years during September, evidently bracing for hard times as jobs continue to disappear and credit conditions tighten.
Banks take most points off the FTSEurofirst 300 index, with Barclays more than 17 percent lower on concern about the cost of raising new funds from Middle East investors.
Reuters Messaging://brian.gorman.thomsonreuters.com@reuters.net
13:09GMT 31Oct2008-Shire leads UK pharma stocks higher
------------------------------------------------------
Shares in Shire lead gainers among UK pharmaceutical stocks, up 7.2 percent, as JP Morgan reiterates its 'overweight' stance and raises its price target on the stock to 1,084 pence from 1,014 previously.
JP Morgan cites strong third quarter results reported by Shire on Wednesday and moves by management to address concerns over its cost base.
Meanwhile, Panmure analyst Savvas Neophytou welcomes Shire's prediction that earnings in 2009 will match analyst expectations. Analysts had previously feared that Shire would not have enough firepower to replace revenues from its current top seller, Adderall XR, which faces generic competition from next year.
'Drawing a line under that will allow the stock to start trading on fundamentals,' he says.
'Although AstraZeneca, Glaxo and other European pharmaceutical companies have been outperforming the markets in general, Shire hasn't really benefited from the macro switch into pharmaceuticals because of the concerns for 2009 and Adderall XR,'
he adds.
Other companies in the sector also rise, boosted by the perceived defensive merits of the sector. GlaxoSmithKline gains 4.9 percent with Smith & Nephew up 2.9 percent and AstraZeneca rises 1.7 percent.
'The cash generation capability of this sector, which has had a good couple of years of restructuring its cost base in anticipation of price pressures in the U.S., has enabled it to be in a better position compared to the broader markets to weather any pressures,' says Neophytou.
Reuters Messaging rm://matthew.scuffham@reuters.com
12:49GMT 31Oct2008-FTSE Small Cap Index edges up at midday
----------------------------------------------------------
The FTSE Small Cap Index edges higher in midday trade as UK markets continue to look for direction, with the FTSE 100 index down 1.2 percent.
Ithaca Energy, the North Sea focused oil and gas explorer, soars 93.3 percent, after a series of asset sales to Dyas UK Ltd gives the group the necessary funding to develop other prospects.
Entertainment Rights falls 34 percent as it warns negotiations regarding content and music publishing rights in the U.S. could result in a further EBITDA reduction of 10 million pounds in the current year.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
12:41GMT 31Oct2008-NETeller up on solid Q3 trading
--------------------------------------------------
Shares in NETeller rise 4.2 percent after the online payment company says its e-wallet business shows underlying growth in Europe and Asia Pacific during the third quarter and that it is confident of meeting a pretax profit target of 12 million pounds for the year to the end of December.
'NETeller says third quarter trading is in-line and that full year expectations will be met ... It's a great business, there's cash to be returned and no debt, which makes it an interesting investment case even in a humdrum world,' says Evolution analyst Ivor Jones.
For more double click on
Reuters Messaging rm://rhysl.jones.reuters.com@reuters.net
12:36GMT 31Oct2008-Independent News soars after statement
---------------------------------------------------------
Shares in Independent News & Media jump some 26 percent after the Dublin-based newspaper publisher says it is looking to sell its 39.1 percent stake in Australasian radio and newspaper group APN News & Media to reduce debt by about 800 million euros ($1 billion).
Independent News trades 26 percent higher in Dublin and in London.
Reuters Messaging rm://jonathan.saul.reuters.com@reuters.net
12:26GMT 31Oct2008-Senior jumps on hopes for Boeing strike deal
---------------------------------------------------------------
Shares in FTSE 250-listed aerospace engineer Senior rise as much as 38 percent amid mounting hopes a strike at Boeing, one of its most important customers, will be resolved this weekend.
The dispute is costing Senior about 1.5 million pounds ($2.4 million) a month, says analyst James Tetley at Brewin Dolphin. The company's ability to weather it without earnings downgrade so far points to its strength, Tetley says, but it can only continue doing so until early November.
'We expect Boeing to resume production with all guns blazing,' he says. 'It bodes well (for Senior) for next year.'
For more on the Boeing strike, click on
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
12:12GMT 31Oct2008-Zurich, Swiss Re benefit from upgrades
---------------------------------------------------------
Zurich Financial Services shares rise more than 5 percent in a weaker European insurance sector, helped by a rating upgrade by Merrill Lynch, traders say.
'First, we now expect to see a better non-life environment and this has boosted our estimates,' Merrill analyst Brian Shea says in a note, raising his rating to 'buy' from 'neutral'.
'Second, the shares have fallen sharply, pushing the valuation down to what we consider a very attractive level.'
Reinsurer Swiss Re's shares gain nearly 4 percent, also boosted by a Merrill upgrade to 'buy' from 'neutral'.
Reuters Messaging rm://sam.cage.reuters.com@reuters.net
11:40GMT 31Oct2008-Barclays falls on capital cost concerns
---------------------------------------------------------
Shares in British bank Barclays fall 10 percent on concerns the group's plan to raise 7.3 billion pounds in fresh capital from private investors will cost it more than accepting a cash injection from the government under its bank recapitalisation programme.
'The capital ain't cheap. It's more expensive than the government's capital,' says Hichens, Harrison analyst Magnus Mathewson.
'But they're doing everything possible to stay out of the government's hands. I think they're doing the right thing.'
Up to 5.5 billion pounds of the capital being raised by Barclays is coming from investors in Qatar and Abu Dhabi.
To read more, please click on
Reuters messaging rm://myles.neligan@reuters.com; +44 207 542 13 73))
11:47GMT 31Oct2008-Retailers slide on John Lewis woes, Tesco up
---------------------------------------------------------------
Shares in British retailer Marks & Spencer and Kingfisher, the owner of the B&Q home improvement chain, slide as much as 4.7 percent and 5.3 percent, respectively, after John Lewis reports a 9.8 percent fall in weekly sales at its department stores, led by slowing homeware sales.
However, shares in Tesco rise 2.6 percent with analysts predicting value conscious shoppers will trade down to the supermarket group for cheaper food and a growing range of non-food goods. Shares in rival Wm Morrison Supermarkets also rise over 2 percent.
'There's a definite shift towards consumers looking for value so I expect Tesco to perform better than M&S because it's generally cheaper and I suspect we'll see more people buying non-food items from Tesco too,' says Howard Archer, an economist at IHS Global Insight.
'Homeware goods are also being hammered by the falling housing market ... if you're not moving house you're less likely to buy new furnishings or a new TV, which will impact Kingfisher.' Home Retail, owner of DIY chain Homebase and homeware retailer Argos, is down 7.2 percent.
For more, click on or
Reuters messaging rm://rhysl.jones.reuters.com@reuters.net
tf.TFN-Europe_newsdesk@thomsonreuters.com
cmr
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
Stocks on the move Real-time Equity News
14:10GMT 31Oct2008-European shares up as Wall St opens mixed
------------------------------------------------------------
European shares edge up, having been in and out of positive territory during the session, after Wall Street opens mixed as investors fret about a slowing economy and sources say the General Motors-Chrysler merger is on hold.
The FTSEurofirst 300 index of leading European shares is up 0.6 percent at 909.2 points.
Across the Atlantic, the Dow Jones is up 0.3 percent, the S&P 500 adds 0.2 percent and the Nasdaq Composite falls 0.5 percent.
GM's shares fall 2.3 percent after three people with direct knowledge of talks tell Reuters a deal to merge the U.S. automaker and Chrysler LLC hit an impasse after the Bush administration ruled out funding for it.
Economic data provide further evidence of a deep slowdown across the Atlantic. U.S. consumers cut their monthly spending for the first time in two years during September, evidently bracing for hard times as jobs continue to disappear and credit conditions tighten.
Banks take most points off the FTSEurofirst 300 index, with Barclays more than 17 percent lower on concern about the cost of raising new funds from Middle East investors.
Reuters Messaging://brian.gorman.thomsonreuters.com@reuters.net
13:09GMT 31Oct2008-Shire leads UK pharma stocks higher
------------------------------------------------------
Shares in Shire lead gainers among UK pharmaceutical stocks, up 7.2 percent, as JP Morgan reiterates its 'overweight' stance and raises its price target on the stock to 1,084 pence from 1,014 previously.
JP Morgan cites strong third quarter results reported by Shire on Wednesday and moves by management to address concerns over its cost base.
Meanwhile, Panmure analyst Savvas Neophytou welcomes Shire's prediction that earnings in 2009 will match analyst expectations. Analysts had previously feared that Shire would not have enough firepower to replace revenues from its current top seller, Adderall XR, which faces generic competition from next year.
'Drawing a line under that will allow the stock to start trading on fundamentals,' he says.
'Although AstraZeneca, Glaxo and other European pharmaceutical companies have been outperforming the markets in general, Shire hasn't really benefited from the macro switch into pharmaceuticals because of the concerns for 2009 and Adderall XR,'
Other companies in the sector also rise, boosted by the perceived defensive merits of the sector. GlaxoSmithKline gains 4.9 percent with Smith & Nephew up 2.9 percent and AstraZeneca rises 1.7 percent.
'The cash generation capability of this sector, which has had a good couple of years of restructuring its cost base in anticipation of price pressures in the U.S., has enabled it to be in a better position compared to the broader markets to weather any pressures,' says Neophytou.
Reuters Messaging rm://matthew.scuffham@reuters.com
12:49GMT 31Oct2008-FTSE Small Cap Index edges up at midday
----------------------------------------------------------
The FTSE Small Cap Index edges higher in midday trade as UK markets continue to look for direction, with the FTSE 100 index down 1.2 percent.
Ithaca Energy, the North Sea focused oil and gas explorer, soars 93.3 percent, after a series of asset sales to Dyas UK Ltd gives the group the necessary funding to develop other prospects.
Entertainment Rights falls 34 percent as it warns negotiations regarding content and music publishing rights in the U.S. could result in a further EBITDA reduction of 10 million pounds in the current year.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
12:41GMT 31Oct2008-NETeller up on solid Q3 trading
--------------------------------------------------
Shares in NETeller rise 4.2 percent after the online payment company says its e-wallet business shows underlying growth in Europe and Asia Pacific during the third quarter and that it is confident of meeting a pretax profit target of 12 million pounds for the year to the end of December.
'NETeller says third quarter trading is in-line and that full year expectations will be met ... It's a great business, there's cash to be returned and no debt, which makes it an interesting investment case even in a humdrum world,' says Evolution analyst Ivor Jones.
For more double click on
Reuters Messaging rm://rhysl.jones.reuters.com@reuters.net
12:36GMT 31Oct2008-Independent News soars after statement
---------------------------------------------------------
Shares in Independent News & Media jump some 26 percent after the Dublin-based newspaper publisher says it is looking to sell its 39.1 percent stake in Australasian radio and newspaper group APN News & Media to reduce debt by about 800 million euros ($1 billion).
Independent News trades 26 percent higher in Dublin and in London.
Reuters Messaging rm://jonathan.saul.reuters.com@reuters.net
12:26GMT 31Oct2008-Senior jumps on hopes for Boeing strike deal
---------------------------------------------------------------
Shares in FTSE 250-listed aerospace engineer Senior rise as much as 38 percent amid mounting hopes a strike at Boeing, one of its most important customers, will be resolved this weekend.
The dispute is costing Senior about 1.5 million pounds ($2.4 million) a month, says analyst James Tetley at Brewin Dolphin. The company's ability to weather it without earnings downgrade so far points to its strength, Tetley says, but it can only continue doing so until early November.
'We expect Boeing to resume production with all guns blazing,' he says. 'It bodes well (for Senior) for next year.'
For more on the Boeing strike, click on
Reuters messaging rm://paul.sandle.reuters.com@reuters.net
12:12GMT 31Oct2008-Zurich, Swiss Re benefit from upgrades
---------------------------------------------------------
Zurich Financial Services shares rise more than 5 percent in a weaker European insurance sector, helped by a rating upgrade by Merrill Lynch, traders say.
'First, we now expect to see a better non-life environment and this has boosted our estimates,' Merrill analyst Brian Shea says in a note, raising his rating to 'buy' from 'neutral'.
'Second, the shares have fallen sharply, pushing the valuation down to what we consider a very attractive level.'
Reinsurer Swiss Re's shares gain nearly 4 percent, also boosted by a Merrill upgrade to 'buy' from 'neutral'.
Reuters Messaging rm://sam.cage.reuters.com@reuters.net
11:40GMT 31Oct2008-Barclays falls on capital cost concerns
---------------------------------------------------------
Shares in British bank Barclays fall 10 percent on concerns the group's plan to raise 7.3 billion pounds in fresh capital from private investors will cost it more than accepting a cash injection from the government under its bank recapitalisation programme.
'The capital ain't cheap. It's more expensive than the government's capital,' says Hichens, Harrison analyst Magnus Mathewson.
'But they're doing everything possible to stay out of the government's hands. I think they're doing the right thing.'
Up to 5.5 billion pounds of the capital being raised by Barclays is coming from investors in Qatar and Abu Dhabi.
To read more, please click on
Reuters messaging rm://myles.neligan@reuters.com; +44 207 542 13 73))
11:47GMT 31Oct2008-Retailers slide on John Lewis woes, Tesco up
---------------------------------------------------------------
Shares in British retailer Marks & Spencer and Kingfisher, the owner of the B&Q home improvement chain, slide as much as 4.7 percent and 5.3 percent, respectively, after John Lewis reports a 9.8 percent fall in weekly sales at its department stores, led by slowing homeware sales.
However, shares in Tesco rise 2.6 percent with analysts predicting value conscious shoppers will trade down to the supermarket group for cheaper food and a growing range of non-food goods. Shares in rival Wm Morrison Supermarkets also rise over 2 percent.
'There's a definite shift towards consumers looking for value so I expect Tesco to perform better than M&S because it's generally cheaper and I suspect we'll see more people buying non-food items from Tesco too,' says Howard Archer, an economist at IHS Global Insight.
'Homeware goods are also being hammered by the falling housing market ... if you're not moving house you're less likely to buy new furnishings or a new TV, which will impact Kingfisher.' Home Retail, owner of DIY chain Homebase and homeware retailer Argos, is down 7.2 percent.
For more, click on or
Reuters messaging rm://rhysl.jones.reuters.com@reuters.net
tf.TFN-Europe_newsdesk@thomsonreuters.com
cmr
COPYRIGHT
Copyright Thomson Financial News Limited 2008. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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