Europe Factors to Watch-Shares set to pause after rally

jueves 13 de febrero de 2014 03:36 GYT
 

PARIS, Feb 13 (Reuters) - European stocks were set to inch lower on
Thursday, pausing for breath following their week-long rally, as investors comb
through a raft of company results, seeking signs of a long-awaited recovery in
corporate profits.
    Mergers and acquisitions activity was set to support the market, with news
that U.S. cable major Comcast Corp will buy Time Warner Cable Inc
 for $45.2 billion, and as France's Danone is weighing a sale
of its tube feeding products unit which could fetch over 3 billion euros.
  
    At 0730 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were down 0.2-0.3
percent.
    Euro zone banks will be in focus again after BNP Paribas said it
will increase its dividend payout ratio to around 45 percent as part of its new
strategy to boost returns over the next three years, while Commerzbank 
posted a better-than-expected annual profit.  
    The STOXX euro zone bank index has surged about 8 percent so far
this year, strongly outperforming the overall market.
    Food giant Nestle will also be in focus after the group said it
expects another challenging year that could see it undershoot long-term targets
again, after price pressures in Europe and weaker emerging market demand made
sales growth slow to 4.6 percent in 2013. Its shares were indicated down 1.6
percent in premarket. 
    "The earnings flow today is mixed, and we see a couple of big names being
impacted by the crisis in the emerging markets, so even if the overall picture
is relatively positive, investors have to be selective," a Paris-based trader
said.
    Nearly halfway through Europe's earnings season, 58 percent of European
companies have met or beaten quarterly profit forecasts, their best score since
the third quarter of 2012, according to Thomson Reuters StarMine data.
    In absolute terms, however, the data shows profits are down 3.5 percent
compared to the same quarter a year before.
    
    Europe bourses in 2014:Asset performance in 2014:------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0730 GMT: 
 
                                        LAST         PCT CHG    NET CHG
 S&P 500                                1,819.26     -0.03 %    -0.49
 NIKKEI                                 14,534.74    -1.79 %    -265.32
 MSCI ASIA EX-JP                        451.13       -0.77 %    -3.52
 EUR/USD                                1.3627       0.26 %     0.0035
 USD/JPY                                102.04       -0.47 %    -0.4800
 10-YR US TSY YLD                       2.766        --         0.00
 10-YR BUND YLD                         1.717        --         0.00
 SPOT GOLD                              $1,289.00    -0.13 %    -$1.64
 US CRUDE                               $99.74       -0.63 %    -0.63
  
  > GLOBAL MARKETS-Asian shares slip, investors pause after rally 
  > US STOCKS-S&P's 4-day rally ends on P&G's view; Cisco off late 
  > Tokyo's Nikkei share average closes down 1.79 pct 
  > FOREX-Aussie sinks on poor jobs data, Euro nurses losses 
  > PRECIOUS-Gold holds near 3-month high; eyes $1,300/oz on technicals 
  > METALS-London copper slips; China optimism supports prices 
  > Brent edges lower toward $108; higher demand outlook caps losses 
    
    COMPANY NEWS:
    
    DANONE 
    Danone is weighing a sale of its tube feeding products unit which could
fetch over 3 billion euros ($4.10 billion) as it expands its dairy business in
higher-growth emerging markets, three people familiar with the deal said.
 
    
    MEDIA SECTOR
    Comcast Corp is buying Time Warner Cable Inc for $45.2
billion in an all-stock deal, combining the nation's two largest cable
operators, according to people familiar with the matter. 
    
    NESTLE 
    Nestle expects another challenging year that could see it undershoot
long-term targets again, after price pressures in Europe and weaker emerging
market demand made sales growth slow to 4.6 percent in 2013. 
    
    BNP PARIBAS 
    France's No. 1 listed bank, reported a 76 percent decline in quarterly
profits after booking a $1.1 billion litigation provision linked to a potential
breach of U.S. sanctions. The bank also said it will increase its dividend
payout ratio to around 45 percent as part of its new strategy to boost returns
over the next three years. 
    
    COMMERZBANK 
    The lender accelerated its turnaround plan and improved its capital and
clean-up targets on Thursday after posting a small profit in the fourth quarter
of 2013 as its restructuring gained traction. 
    
    RIO TINTO 
    The global miner reported a 45 percent jump in second-half profit on
Thursday, beating market forecasts thanks to sharp cost-cutting, lower capital
spending and production growth. 
    
    HERMES 
    The French luxury goods maker posted a 4.6 percent rise in fourth-quarter
sales thanks to solid demand for its leather handbags, silks and ready-to-wear
ranges, across regions, although yen weakness weighed on growth. 
    
    PSA PEUGEOT CITROEN 
    PSA Peugeot Citroen PEUP.PA has reached an outline deal with Dongfeng
0489.HK and France to raise up to 4 billion euros ($5.5 billion) in fresh
capital and deepen cooperation with the Chinese carmaker, sources familiar with
the matter said. 
    
    ROLLS ROYCE 
    The group exceeded expectations with a 23 percent rise in full year profit
on Thursday, and forecast 2014 profits to be flat on the back of declining
defence and marine revenues, before growth resumes in 2015. 
    
    EDF 
    Europe's No. 1 electricity producer said core 2013 earnings rose 4.8 percent
to 16.8 billion euros ($22.83 billion) and proposed an unchanged dividend of
1.25 euros per share. 
    
    ENI 
    The Italian oil and gas group percent to 3.52 billion euros ($4.78 billion),
hit by lower production in Libya and Nigeria and a stronger euro against the
dollar. 
    
    RENAULT 
    The French carmaker pledged to lift its operating margin to 5 percent in
2017, extending its turnaround plan by one year after missing a mid-term sales
goal and taking heavy asset writedowns in 2013. 
    
    PERNOD RICARD 
    The French spirits group cut its annual profit growth goal as it warned
demand in China, its second-largest market, would remain weak throughout its
fiscal year ending in June. 
    
    LLOYDS BANKING GROUP 
    State-backed said it paid 395 million pounds ($655 million) in bonuses last
year, up 8 percent on the year before, as it reported a profit for the first
time since it was rescued by taxpayers six years ago.