Europe Factors to Watch-Shares seen mixed; focus on miners

martes 7 de octubre de 2014 02:20 GYT
 

PARIS, Oct 7 (Reuters) - European stocks were seen mixed on Tuesday, with
the spotlight on the mining sector after Rio Tinto rejected a merger
approach from smaller rival Glencore Plc.
    German shares will also be in focus after data showed the country's
industrial output fell far more than expected in August, posting its biggest
drop since the financial crisis in early 2009, the latest figures to raise
question marks about Europe's largest economy.
    The 4.0 percent month-on-month drop missed the consensus forecast in a
Reuters poll for a 1.5 percent decrease and came short even of the lowest
forecast for a 3.0 percent fall. 
    At 0607 GMT, futures for Euro STOXX 50 <STXEc1, for Germany's DAX 
and for France's CAC were down 0.2-0.3 percent, while futures for UK's
FTSE 100 were up 0.1 percent, helped by M&A fever in the mining sector.
    Rio said Glencore had contacted it about a potential tie-up in July, adding
that it turned Glencore down in August and there had been no further contact
between the companies on a deal. A merger would have created the world's biggest
miner, surpassing BHP Billiton. 
    Rio's Australian shares rose as much as 4.7 percent on the news,
while Glencore's shares rose as much as 3.9 percent in Hong Kong.
    "Rio predictably flew out of the blocks and has been bid for most of the day
as speculators debate the possibility of a tie-up," IG market strategist Stan
Shamu wrote in a note.
    "However, many analysts have flagged it as unlikely, given the significant
regulatory challenges it would face and the lack of value for Rio shareholders
unless there were a significant premium," the Melbourne-based strategist wrote.
        
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0610 GMT: 
    
                                         LAST   PCT CHG  NET CHG
 S&P 500                             1,964.82   -0.16 %    -3.08
 NIKKEI                              15783.83   -0.67 %  -107.12
 MSCI ASIA EX-JP                       473.84    0.29 %     1.38
 EUR/USD                               1.2622   -0.24 %  -0.0030
 USD/JPY                               108.60   -0.17 %  -0.1800
 10-YR US TSY YLD                       2.420        --    -0.01
 10-YR BUND YLD                         0.901        --    -0.01
 SPOT GOLD                          $1,204.36   -0.19 %   -$2.29
 US CRUDE                              $90.27   -0.08 %    -0.07
 
  > GLOBAL MARKETS-ASIAN SHARES WAVER BEFORE BOJ, DOLLAR REBOUNDS 
  > US STOCKS-WALL ST FALLS IN CHOPPY DAY; TRADERS WARY BEFORE EARNINGS 
  > NIKKEI PARES LOSSES AFTER BOJ CHIEF'S COMMENT ON YEN; FUJIFILM SHINES 
  > TREASURIES-U.S. YIELDS DIP ON WEAK EUROPEAN DATA, U.S. EARNINGS 
  > FOREX-DOLLAR PUSHES HIGHER, REGAINS SOME FOOTING AFTER A PULLBACK 
  > PRECIOUS-GOLD HOLDS ABOVE $1,200, BUT BEARISH SENTIMENT PREVAILS 
  > METALS-LONDON COPPER HOLDS GAINS AS DOLLAR NURSES LOSSES 
  > BRENT FALLS AWAY FROM $93 AS OVERSUPPLY CONCERNS RETURN 
    
    COMPANY NEWS:
    
    MINERS
    Rio Tinto rejected a merger approach from smaller rival Glencore Plc
 to create a $160 billion mining and trading giant in August just as the
price of its most profitable product, iron ore, slid toward a five-year low.
 
    
    ALLIANZ 
    Outflows from Allianz unit Pimco may be far from over as many investors have
yet to decide whether to stick with the Newport Beach, California-based asset
manager. 
    
    UNICREDIT 
    The Italian bank is likely to decide with whom to enter exclusive talks for
the sale of its bad loan unit this week, two sources close to the matter said on
Monday. One source added the decision could be as soon as Tuesday. 
    
    TESCO 
    The British grocer's Chairman Richard Broadbent might consider resigning
after the investigation into company's accounting practices is complete, the
Wall Street Journal reported, citing sources familiar with the matter.
    Separately, private equity buyout firm TPG has approached Tesco to buy its
data gathering and analysis subsidiary Dunnhumby, which is worth well over 2
billion sterling, the Sky News reported on Monday.
    
    HERA, A2A, ACEA 
    The Italian government is working to include a series of measures aimed at
encouraging consolidation of the country's local utilities in the stability pact
programme it plans to introduce in October, the deputy industry minister said on
Monday. 
    
    UBS 
    UBS's French arm is planning to restructure its asset management business
and is in consultation with unions over possible layoffs, as the Swiss bank
continues to sharpen its focus on private banking. 
    
    BNP 
    BNP Paribas has asked at least three banks to help it clear certain energy
transactions in U.S. dollars next year to make sure it can keep its energy trade
finance division operating after a ban imposed for violating U.S. sanctions,
sources said. 
    
    SYNGENTA 
    Farmers from the biggest U.S. corn-growing states have sued Syngenta AG over
sales of genetically modified corn seed not approved by China, joining global
exporters in pursuing damages from the Swiss-based company. 
    
    CLUB MED 
    The holiday group's board have given a unanimous recommendation that its
shareholders accept the improved takeover offer from Chinese conglomerate Fosun
International. A spokesman for rival bidder Andrea Bonomi declined to
comment. 
    
    LUFTHANSA 
    German pilots union VC on Monday called a strike again at Deutsche Lufthansa
in a dispute over retirement benefits, targeting the airline's Cargo unit on
Oct. 8-9. 
    
    FIAT 
    Brazil's automobile production recovered in September to its strongest in 11
months but carmakers kept cutting jobs as weak sales showed little sign of
reversing a year-long slump. 
    
    SANOFI 
    The French drugmaker said it had informed U.S. authorities of allegations of
improper payments by its employees to healthcare professionals in East Africa
and the Middle East, in the latest of a string of bribery claims embarrassing
the pharmaceutical industry. 
    
    AREVA 
    French nuclear group Areva will cut its investment budget further and sell
assets to shore up its balance sheet while chief executive Luc Oursel's position
is under threat, French daily Les Echos said on Monday. 
    
    

 (Reporting by Blaise Robinson; Editing by Alistair Smout)