Europe Factors to Watch-Shares set to rise; earnings in focus

martes 28 de octubre de 2014 03:35 GYT
 

PARIS, Oct 28 (Reuters) - European stocks were set to rise on Tuesday,
reversing the previous session's dip as better-than-expected results from a
number of blue-chips including Novartis and UBS helped lift
sentiment.
    At 0732 GMT, futures for Euro STOXX 50, for UK's FTSE 100,
for Germany's DAX and for France's CAC were up 0.5-0.9 percent.
    Energy stocks will be in focus after oil major BP said it will raise
dividends for the third quarter despite the recent sharp drop in oil prices,
while trimming organic capital expenditure for the full year. 
    Swiss lender UBS said it booked 1.8 billion Swiss francs ($1.9 billion) in
third-quarter charges as it discusses a settlement to an investigation that it
and other banks rigged foreign exchange rates. Even including the charge, UBS
posted a 32 percent rise in quarterly profit, beating forecasts. 
    Swiss drugmaker Novartis reported better-than-expected results on Tuesday,
as a pre-tax gain from the sale of its Idenix shareholding offset full copycat
competition to its former best-selling blood pressure pill Diovan.
 
    Bucking the trend, French drugmaker Sanofi posted
weaker-than-expected quarterly sales, blaming pricing pressures on its lucrative
diabetes business that it warned would drag on throughout next year.
 
    About a quarter of companies listed on the STOXX Europe 600 
benchmark index have reported results so far in the earnings season, with 66
percent of them meeting or beating profit forecasts, and 61 percent meeting or
beating revenue forecasts, according to Thomson Reuters Starmine data.
    In absolute terms, European companies have posted a 12.6 percent rise in
quarterly earnings, and a 1.9 percent rise in revenue.
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0732 GMT: 
    
                                         LAST   PCT CHG  NET CHG
 S&P 500                             1,961.63   -0.15 %    -2.95
 NIKKEI                              15329.91   -0.38 %   -58.81
 MSCI ASIA EX-JP                       476.57    0.67 %     3.17
 EUR/USD                               1.2711     0.1 %   0.0013
 USD/JPY                               107.86    0.05 %   0.0500
 10-YR US TSY YLD                       2.257        --     0.00
 10-YR BUND YLD                         0.878        --     0.00
 SPOT GOLD                          $1,229.25    0.34 %    $4.11
 US CRUDE                              $80.78   -0.27 %    -0.22
 
  > GLOBAL MARKETS-ASIAN SHARES, DOLLAR TREAD CAUTIOUSLY AHEAD OF FED 
  > WALL ST FLAT AFTER LAST WEEK'S BIG GAIN; ENERGY WEIGHS 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES DOWN 0.38 PCT 
  > TREASURIES-U.S. BOND PRICES EDGE UP ON WEAK DATA, BRAZILIAN ELECTION 
  > DOLLAR STRUGGLES AS SOFT DATA PUSH YIELDS LOWER, FED AWAITED 
  > PRECIOUS-GOLD RECOVERS FROM 2-WEEK LOW, ALL EYES ON FED MEET 
  > METALS-LME COPPER HOVERS NEAR 2-WEEK HIGH, SUPPLY CONCERNS SUPPORT 
  > BRENT FALLS TOWARDS $85 AMID SUPPLY GLUT, LOWER PRICE FORECASTS 
    
    COMPANY NEWS:
    
    UBS 
    UBS said it booked 1.8 billion Swiss francs ($1.9 billion) in third-quarter
charges as it discusses a settlement to a investigation that it and other banks
rigged foreign exchange rates. Even including the charge, UBS posted a 32
percent rise in quarterly profit, beating forecasts. 
    
    NOVARTIS 
    The Swiss drugmaker reported better-than-expected results on Tuesday, as a
pre-tax gain from the sale of its Idenix shareholding offset full copycat
competition to its former best-selling blood pressure pill Diovan. 
    
    BP 
    Oil major BP said on Tuesday it will raise dividends for the third quarter
by 5.3 percent year-on-year to 10 cents per ordinary share while trimming
organic capital expenditure for the full year. 
    
    KPN 
    The Dutch telecoms group on Tuesday reported better-than-expected results
for the third quarter as the pace of revenue decline at its consumer mobile and
business units slowed. 
    
    SANOFI 
    The French drugmaker stuck to its full-year profit forecast but posted
weaker-than-expected quarterly sales on Tuesday, blaming pricing pressures on
its lucrative diabetes business that it warned would drag on throughout next
year. 
    
    MEDIOBANCA 
    The Italian bank is not interested in any merger and acquisition operations,
Chief Executive Alberto Nagel said on Tuesday. It said its net profit fell 6.4
percent in the first three months of its financial year as one-off capital gains
boosted the previous year's figure. 
    
    LLOYDS BANKING GROUP 
    The lender said it would set aside a further 900 million pounds ($1.45
billion) to compensate customers for mis-sold loan insurance, bringing its total
bill so far to over 11 billion pounds. 
    
    ALFA LAVAL 
    The Swedish engineering group posted on Tuesday third quarter core earnings
of 1.55 billion crowns ($212 million), marginally above market expectations, and
said it expected demand to be roughly unchanged in the final quarter of 2014.
    
    HOLCIM, LAFARGE 
    The two building materials groups said on Tuesday they had formally notified
the European Commission of their merger plan. 
    
    STANDARD CHARTERED PLC 
    The lender said operating profit for the third quarter fell 16 percent, hurt
by rising costs from the restructuring of its South Korean business and a
doubling of impaired loans. 
    
    MONTE PASCHI DI SIENA 
    Italy's Monte dei Paschi di Siena is likely to have to sell assets to fill a
capital hole uncovered by European regulators, with shareholders reluctant to
stump up cash after a recent fundraising and would-be buyers of the bank holding
back. 
    
    UNICREDIT 
    UniCredit, Italy's biggest bank by assets, does not plan to distribute
excess capital, Chief Executive Federico Ghizzoni said on Monday. 
        
    CELESIO 
    German drug distributor lowered its 2014 operating profit forecast on
Tuesday, saying the unfavourable situation in Germany, France and Brazil was
affecting earnings more than previously expected.
    
    TECHNIP 
    The oil services company said that in a joint venture with Fluor
Corporation, it won an engineering, procurement, and construction management
contract from Sasol for its world scale ethane cracker and derivatives complex
near Lake Charles, Louisiana. Financial terms were not disclosed. 
    
    KVAERNER 
    The Norwegian oil services firm which builds large structures like
platforms, posted third-quarter earnings above expectations on Tuesday and
raised its full-year revenue guidance.
    
    MAN SE 
    The group slightly lowered its full-year profit forecast as third-quarter
underlying earnings slumped by half to 82 million euros ($104.16 million) amid
weakening truck demand. 
    
    BG GROUP 
    Britain's third-biggest energy company reported a worse-than-expected 26
percent fall in third-quarter operating profit on the back of a continued
decline of production in Egypt and a steep drop in oil prices. 
    
    

 (Reporting by Blaise Robinson; Editing by Francesco Canepa)