European Factors to Watch-Falling earnings seen weighing on shares
(Adds detail, quote) EDINBURGH, July 25 (Reuters) - European stocks were seen edging lower on Friday, held back by some earnings disappointment on both sides of the Atlantic, with the latest German Ifo business-climate survey also due to be in focus. Cement maker Lafarge, food group Danone and exchange operator Deutsche Boerse all posted falls in profit on Friday. At 0619 GMT, futures for the Euro STOXX 50, Britain's FTSE 100 , Germany's DAX and France's CAC were 0.2-0.3 percent lower. In Europe so far this quarter, 40 percent of companies have missed earnings expectations, according to Thomson Reuters StarMine data, underperforming the United States where the number is 28 percent. U.S. online retailer Amazon fell in out-of-hours trading on Wall Street after it posted a much larger-than-expected loss in the second quarter, while Caterpillar, the world's largest maker of earth-moving equipment, fell after cutting its outlook for sales. More news was expected on the data front in Europe as market research group GfK found that German consumer morale rose to its highest level since 2006, ahead of the closely watch Ifo business climate survey. Both the GfK figures and Thursday's encouraging Purchasing Managing Index (PMI) figures, which showed the euro zone's private sector expand at the fastest rate in three months, have raised expectations for the Ifo, which consensus suggests will decline to 109.4. "Following yesterday's PMI readings I imagine most analysts will have raised their expectations for (the Ifo) and I think we're likely to get a comfortable beat here," Craig Erlam, market analyst at Alpari, said. "The only question now is how much more has been priced into the markets." Europe bourses in 2014: (link.reuters.com/pad95v) Asset performance in 2014: (link.reuters.com/rav46v) MAJOR MACROECONOMIC DATA/EVENTS (GMT) : 0600 DE GfK Consumer Sentiment 0800 DE Ifo Business Climate, Current Conditions, Expectations 0800 IT Wage Inflation 0830 GB GDP Prelim 1230 US Durable Goods ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0619 GMT: LAST PCT CHG NET CHG S&P 500 1,987.98 0.05 % 0.97 NIKKEI 15457.87 1.13 % 173.45 MSCI ASIA EX-JP 507.4 -0.24 % -1.23 EUR/USD 1.347 0.04 % 0.0006 USD/JPY 101.73 -0.08 % -0.0800 10-YR US TSY YLD 2.500 -- -0.01 10-YR BUND YLD 1.173 -- -0.01 SPOT GOLD $1,292.40 -0.05 % -$0.60 US CRUDE $102.07 0 % 0.00 > GLOBAL MARKETS-Asian shares inch down from 3-year highs > US STOCKS-Wall St ends flat on mixed earnings; S&P 500 at record > Nikkei rises after S&P hits fresh high; Fanuc surges on strong earnings > TREASURIES-Prices falter on unexpectedly low U.S. jobless claims > FOREX-Dollar, euro propped up by better economic data > PRECIOUS-Gold set for second weekly loss on strong economic data > METALS-Copper eyes fifth weekly rise in six, but headwinds loom > Brent holds above $107 as political tensions balance supplies COMPANY NEWS LAFARGE Cement maker Lafarge, which is preparing to merge with Swiss peer Holcim , stuck to its full-year targets on Friday after a first-half performance weighed down by adverse currency rates and asset sales. DANONE The French food group posted a worse-than-expected 10 percent fall in first-half operating profit on Friday, hit by weak sales of dairy products in Europe and baby food in Asia. DEUTSCHE BANK Germany's flagship lender is planning to cut an additional up to 2.5 billion euros ($3.4 billion) in costs by 2018 as it is trying to hike its competitiveness, Handelsblatt reported. Related news DEUTSCHE BOERSE The exchange operator's second-quarter operating profit fell by eight percent as sluggish trading of stocks and derivatives weighed on the exchange operator's revenues. Related news DEUTSCHE LUFTHANSA Germany's largest airline on Thursday said it would keep flights to Tel Aviv suspended on Friday, citing security concerns. Related news VOLKSWAGEN The carmaker is considering setting up a planning centre in Brazil to boost flagging sales in the world's fourth-largest car market, sources told Reuters. Related news SKY DEUTSCHLAND Britain's pay-TV group BSkyB will on Friday unveiled its multi-billion euro deal to buy Rupert Murdoch's assets in Italy and Germany, sealing a plan to create a pan-European giant with almost 20 million customers. Under the proposal BSkyB will buy all of Sky Italia and 57 percent of Sky Deutschland from Murdoch's 21st Century Fox. Related news MEDIASET, PRISA Spanish media group Prisa said on Thursday it had sold an 8.5 percent stake in peer Mediaset Espana back to Mediaset Espana for 307.5 million euros or 8.892 euros per share. CAIXABANK Spain's Caixabank CABK.MC on Friday said net profit in the second quarter more than doubled to 153 million euros from a year ago, beating forecasts as revenue grew more than expected. LUXOTTICA The Italian luxury eyewear group is optimistic about prospects for the rest of 2014 after sales accelerated in the second quarter, offsetting the impact of euro strength which is now seen waning. Luxottica said on Thursday it had extended a licence agreement to produce and distribute Chanel-branded eyeglasses until the end of 2018, renewable for a further two years. BANCA CARIGE The Italian mid-sized bank said late on Thursday it was in exclusive talks with U.S. investment fund Apollo Management Holdings LP for the sale of its two insurance units. SNAM The Italian gas grid operator is set to sign next week an accord to renegotiate its 3.2 billion euros in debt with a pool of 16 banks led by UniCredit and BNP Paribas, Corriere della Sera reported without citing sources. The new bank loan will have the same maturity of the present one and will have a multi-tranche, revolving structure. (Reporting by Alistair Smout; Editing by Lionel Laurent)
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