European Factors to Watch-Shares seen retreating from highs

lunes 22 de septiembre de 2014 02:32 GYT
 

LONDON, Sept 22 (Reuters) - European shares were expected to retreat on
Monday, mirroring losses in Asia, with some investors seen taking profits from
recent highs and ahead of crucial Chinese manufacturing data on Tuesday. 
    Flash manufacturing PMI reading from China, the world's biggest metals
consumer, could come in below the 50 level, indicating that manufacturing
activity is contracting. 
    China's Finance Minister Lou Jiwei said on Sunday the country will not
dramatically alter its economic policy because of any one economic indicator, in
remarks that came after many economists lowered growth forecasts having seen the
latest set of weak data. 
    "There isn't any specific reason for the declines although jitters ahead of
the HSBC China Manufacturing data later this week and profit taking are being
offered up as possible explanations," Capital Spreads dealer Jonathan Sudaria
said in a morning note.
    Futures for the euro zone's Euro STOXX 50, Germany's DAX,
France's CAC and Britain's FTSE 100 were down 0.4 to 0.8 percent
by 0625 GMT.
    The pan-European FTSEurofirst 300 index climbed to a 6-1/2-year
high on Friday after Scotland voted against independence. The index closed 0.3
percent higher on Friday. In Asia, Japan's Nikkei fell 0.7 percent on
Monday.
    Although the European stock market has climbed to new highs, the upward
journey has been slow as investors have been cautious in putting strong bets due
to concerns about the region's economy and the likely start of a rate hike by
the U.S. Federal Reserve from next year.
    The Group of 20 leading nations said they were tantalisingly close to adding
an extra $2 trillion to the global economy and creating millions of new jobs,
but Europe's extended stagnation remained a major stumbling block.
 
    On the mergers and acquisitions front, industrial conglomerate Siemens AG
 said on Monday it would buy U.S. oilfield equipment maker
Dresser-Rand Group Inc for $7.6 billion in a move that would
significantly boost the German company's oil and gas business in North America.
 
   
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  MARKET SNAPSHOT AT 0627 GMT:
                                           LAST  PCT CHG    NET CHG
 S&P 500                               2,010.40  -0.05 %      -0.96
 NIKKEI                                 16205.9  -0.71 %    -115.27
 MSCI ASIA EX-JP                         487.52  -1.08 %      -5.33
 EUR/USD                                 1.2855   0.21 %     0.0027
 USD/JPY                                 108.92  -0.08 %    -0.0900
 10-YR US TSY YLD                         2.567       --      -0.02
 10-YR BUND YLD                           1.022       --      -0.02
 SPOT GOLD                            $1,212.30  -0.32 %     -$3.89
 US CRUDE                                $91.82  -0.64 %      -0.59
    U.S. COMPANIES REPORTING :
    Q4 2014 AutoZone Inc.            
    
    MACROECONOMIC DATA/EVENTS (GMT)  :
    1400 EZ Consumer Confidence
    1400 US Existing Home Sales 
    
  > ASIAN SHARES SLIP, DOLLAR PULLS AWAY FROM HIGHS                
  > WALL ST FLAT AS ORACLE TAKES AIR OUT OF ALIBABA DEBUT                 
  > NIKKEI FALLS AS INVESTORS POCKET QUICK GAINS ON SOFTBANK              
  > LONG-DATED TREASURIES RISE IN BARGAIN HUNTING FROM RECENT DIP       
  > DOLLAR WELL BID ON FED OUTLOOK, NO G20 REPRIEVE FOR YEN             
  > SILVER SLUMPS TO 4-YEAR LOW; GOLD LOOKS LIKELY TO TEST $1,200       
  > LONDON COPPER HITS 3-MONTH LOW ON DOLLAR, CHINA CONCERNS           
  > BRENT FALLS BACK BELOW $98 ON SLUGGISH DEMAND, AMPLE SUPPLY          
    
    COMPANY NEWS:    
    SIEMENS, SULZER 
    Industrial conglomerate Siemens said on Monday it would buy U.S. oilfield
equipment maker Dresser-Rand Group Inc for $7.6 billion in a move that
would significantly boost the German company's oil and gas business in North
America. Sulzer had confirmed last week that it was also in talks to merge with
the U.S. group. 
    Separately, Siemens said San Francisco's Municipal Transportation Agency
awarded it a contract to deliver an initial 175 light rail cars for $648 million
in one of the biggest orders for light rail cars ever placed in the United
States. 
    
    TESCO 
    Britain's biggest grocer overstated its expected first-half profit by an
estimated 250 million pounds (408.50 million US dollar) and has launched a
review to find out why, it said on Monday. 
    
    ROYAL BANK OF SCOTLAND, JULIUS BAER 
    Swiss private bank Julius Baer is interested in acquiring Coutts
International, a unit of Royal Bank of Scotland, but will not get into a bidding
war for the venerable British bank's overseas arm, a Swiss paper reported on
Sunday. For more, click on 
    
    TELECOM ITALIA 
    Brazilian regulators will now focus on whether Vivendi's minority
stakes in Telefonica's local unit and Telecom Italia pose any risk to
healthy competition, government sources said on Friday.       
    
    ILIAD, DEUTSCHE TELEKOM,  
    French low-cost telecom operator Iliad has set a mid-October deadline to
decide whether to improve its bid for T-Mobile US or walk away as it
faces resistance from seller Deutsche Telekom, several people
familiar with the situation said. 
    
    FIAT 
    The automaker will temporarily suspend production at its Pomigliano plant in
southern Italy from Oct. 16-27 amid weak demand, a union representative said on
Friday.    
    
    AIR FRANCE-KLM 
    Air France, part of Air France-KLM, expects to operate 41 percent of its
flights on Monday as a pilots strike over cost cuts and plans for the company's
budget Transavia unit enters its second week. 
    
    PRADA 
    The luxury goods company cut its 2014 revenue guidance on Friday due to
weaker than expected consumer demand as it posted a 21 percent fall in net
profit for the first half. 
    
    AIRBUS 
    Germany's defence ministry is demanding price cuts and longer cancellation
periods on the A400M military airlifters it has ordered from Airbus, but which
will be delivered later and less equipped than planned, Bild am Sonntag
newspaper reported. 
    
    BAYER 
    The drugmaker's Chief Executive Marijn Dekkers told Frankfurter Allgemeine
Sonntagszeitung he expects the group's plastics business to become a member of
Germany's blue-chip index DAX, once the unit is listed on the stock market.
Related news 
    
    COMMERZBANK 
    The lender is looking into moving some of its back-office operations in
London to another country to cut costs, daily Handelsblatt cited financial
sources as saying in its Monday edition. Commerzbank declined to comment to the
paper. Related news 
        
    DAIMLER 
    Ola Kaellenius, head of sales at Daimler's Mercedes-Benz business, expects
the company's vehicle sales growth in Europe to continue this year, he told
daily Die Welt. Related news 
    
    CERMAQ 
    Mitsubishi Corp plans to launch a tender offer for Norway's Cermaq
in which it would spend up to 150 billion yen ($1.4 billion) for over 90 percent
of the Norwegian fish-farming company, Japan's Nikkei business daily reported.
    
    DEUTSCHE BANK 
    A Sydney-based foreign exchange trader at Deutsche Bank was dismissed after
the bank discovered irregularities in the reporting of his trading activities in
June. 
    
    THYSSENKRUPP 
    The steelmaker is contacting potential investors regarding the sale of its
VDM alloy unit, daily Handelsblatt reported on Monday. Several industry players
and financial investors were interested, the paper said. 
           
    VOLKSWAGEN 
    The carmaker will launch a VW-badged luxury sedan designed solely for China
next year in its pursuit of higher margins, said two people with knowledge of
the plan, in a move that could put it in direct competition with its premium
brand Audi. 
    
    RHEINMETALL 
    Germany's defence industry is looking into shifting production abroad in
response to the country's restrictive arms export policy, Armin Papperger, the
chief executive of Rheinmetall and head the German defence industry association,
told Sueddeutsche Zeitung on Saturday. 
    
    SEADRILL 
    Billionaire investor John Fredriksen is considering buying more shares in
oil rig operator Seadrill after the stock's sharp fall this year, Norwegian
business daily Finansavisen reported on Monday.
    
    ACS 
    Affiliate of Spanish constructor ACS, Dragados, has been short listed to
build 11 football stadiums in Saudi Arabia for between 2 billion and 3 billion
euros, el Confidencial reported without citing sources. 
    
    BBVA 
    Spain's second-biggest bank BBVA is exploring the sale of its debt
collection business, business daily Expansion said on Saturday, citing unnamed
sources.
    
    AXA 
    The insurer said its agreement with Astra Asigurari to sell its Life &
Savings insurance operations in Romania, announced last November, had lapsed and
that it was "reviewing its strategic options" for the business. 
    
    LAFARGE 
    The cement maker said it sold its 47 percent stake in its Mexico cement
operations to joint venture partner Elementia, an industrial conglomerate partly
owned by billionaire Carlos Slim,  for $225 million in cash, in a move that will
help it reduce its debt. 
    
    VINCI 
    The French construction and concessions group said it agreed to buy
engineering, construction and maintenance services business Electrix from South
Africa's Aveng. Electrix generated revenue of around 280 million euros
in 2013. 

 (Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)