European Factors to Watch-Shares set to continue drop from 1 1/2-mth low

miércoles 8 de octubre de 2014 02:30 GYT
 

(Adds detail, company news, futures)
    EDINBURGH, Oct 8 (Reuters) - European stocks were seen falling on Wednesday,
set to extend losses made in the previous session as investors' concerns mount
over the strength of global growth.
    Futures on the euro zone Euro STOXX 50, Britain's FTSE 100,
the German DAX and French CAC were 0.5-0.6 percent lower at 0624
GMT.
    Asian and U.S. shares fell overnight after the IMF cut global growth
forecasts and German industrial production missed expectations.
    The new IMF forecasts and German data also hit European shares, with the
FTSEurofirst 300 index of top European shares closing at a 1-1/2 month
low on Tuesday, ending down 1.5 percent at 1,329.76 points, with selling set to
continue on Wednesday.
    The cut in global growth forecasts by the IMF for the third time this year
came with a particular warning over the euro zone economy, late in European
trade. 
    "The IMF laid it on pretty thick yesterday... and topped it off with the
cherry that global growth may never reach its pre-crisis levels ever again,"
Jonathan Sudaria, trader at London Capital Group, said in a note.
    "In the short term at least, it appears that traders have also come to the
same conclusion as there is no apparent let up in the selling pressure this
morning."
    In the latest evidence of economic malaise, growth in China's services
sector weakened slightly in September as new business cooled, a private survey
showed on Wednesday, reinforcing signs of a slowdown in the world's
second-largest economy that could prompt more stimulus measures. 
    The minutes of the latest Federal Reserve meeting are out on Wednesday,
while aluminium bellwether Alcoa kicks off the U.S. earnings season.     
    
    Europe bourses in 2014: (link.reuters.com/pad95v)
    Asset performance in 2014: (link.reuters.com/rav46v)
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  MARKET SNAPSHOT AT 0622 GMT:     
                                           LAST  PCT CHG  NET CHG
 S&P 500                               1,935.10  -1.51 %   -29.72
 NIKKEI                                15595.98  -1.19 %  -187.85
 MSCI ASIA EX-JP                         468.96  -1.07 %    -5.05
 EUR/USD                                 1.2622  -0.36 %  -0.0046
 USD/JPY                                 108.42   0.37 %   0.4000
 10-YR US TSY YLD                         2.364       --     0.01
 10-YR BUND YLD                           0.903       --     0.00
 SPOT GOLD                            $1,213.25   0.37 %    $4.51
 US CRUDE                                $87.97  -0.99 %    -0.88
 
  > GLOBAL MARKETS-Asia shares skid, bonds up on global growth worry 
  > US STOCKS-Wall St falls 1 pct on global growth concerns            
  > Nikkei hits 5-week low as IMF downgrade fuels growth worries         
  > TREASURIES-Yields hit over one-year lows on German data, IMF        
  > FOREX-Yen rallies as global growth woes sap risk appetite         
  > PRECIOUS-Gold rises as global growth concerns spark safe-haven bids    
 
  > METALS-LME copper up on short-covering; global growth worries hurt   
 
  > Brent falls to 27-mth low on global growth, oil glut concerns        
    
    COMPANY NEWS:    
    AIRBUS, DASSAULT AVIATION 
    Airbus Group sketched out the opening steps of a plan to unwind its 46
percent holding in Dassault Aviation, saying it was weighing the possibility of
selling a 10 percent stake by placing it with financial institutions.
 
    Philippine Airlines said it is considering delaying delivery of Airbus
planes it has on order as it reviews operations after Filipino billionaire
tycoon Lucio Tan resumed management control of the carrier last month.
 
    The Federal Aviation Administration expects to issue safety approval for the
newest jetliner from Airbus, the A350, by the end of this month, a spokesman
said. 
    
    AIR FRANCE-KLM 
    Air France put the total cost of last month's two-week pilots strike at 500
million euros ($632 million) on Wednesday, wiping more than a fifth off its
parent group's estimated full-year core profit. 
    
    LAFARGE 
    Irish cement maker CRH has teamed up with Mexican rival Cemex
 to explore a bid for all the assets industry giants Lafarge and
Holcim must sell to get the go-ahead for their planned merger from
competition watchdogs, according to several people familiar with the matter.
 
    
    DEUTSCHE BANK 
    Indicated 0.8 percent lower
    Deutsche Bank is preparing to sell a $2 billion portfolio of U.S. commercial
real estate loans as the North American property markets heat up, a source
familiar with the matter said on Tuesday. 
    Related news 
    
    ALLIANZ 
    Indicated 0.2 percent lower
    Outflows from Pimco may be far from over as many investors have yet to
decide whether to stick with the Newport Beach, California-based asset manager.
 
    Related news 
    
    BARCLAYS 
    Barclays PLC on Tuesday urged a New York court to toss the state attorney
general's fraud case over how the bank ran its private U.S. trading venue,
saying the case oversteps state securities laws and offers no proof any
investors were hurt. 
    
    VODAFONE /SWISSCOM 
    Telecom operator Swisscom is considering a possible sale of its Italian
broadband firm Fastweb, which is worth up to 5 billion euros ($6.3 billion) and
has been a target for Vodafone, sources familiar with the situation said.
 
    
    ANGLO AMERICAN 
    Global miner Anglo American is planning to initiate the sale of its three
smallest copper mines in Chile and a smelter worth $1 billion by end of the
year, Bloomberg reported, citing sources familiar with the matter.
 
    
    HEIDELBERGCEMENT 
    Indicated 0.3 percent lower
    Heidelbergcement is considering a joint bid with Brazilian firm Votorantim
Cimentos SA for a portfolio of assets that Lafarge and Holcim
 must sell to get the go-ahead for their planned merger from
competition watchdogs, several people familiar with the matter told Reuters.
 
    Related news 
    
    NOVARTIS 
    Swiss drugmaker Novartis AG said on Wednesday three members of its
executive committee would leave the company following the completion of
transactions with GlaxoSmithKline (GSK) and Eli Lilly expected
in the first half of 2015.
    For more click on 
    
    TELECOM ITALIA 
    Telecom Italia's majority-owned Brazilian mobile firm is considering
investing an extra 750 million euros over three years to improve its network,
said a person with knowledge of the plan, as the company tries to regain
momentum in a key overseas market. 
    Telecom operator Swisscom is considering a possible sale of its
Italian broadband firm Fastweb, which is worth up to 5 billion euros and has
been a target for Vodafone, sources said. [ID: nL6N0S24E2]

 (Reporting by Alistair Smout; Editing by Sudip Kar-Gupta)