European Factors to Watch - Rebound eyed; TUI, Lufthansa seen up

miércoles 10 de diciembre de 2014 03:26 GYT
 

(Rewrites throughout; adds further company news)
    LONDON, Dec 10 (Reuters) - European equity indexes were set to rebound on
Wednesday, mirroring a late recovery on Wall Street and recouping some of the
sharp losses suffered on the previous day.
    At 0721 GMT futures for the Euro STOXX 50 equity index, Germany's
DAX and France's CAC were between 0.5 percent and 0.7 percent
higher.
    The underlying cash indexes fell more than 2 percent on Tuesday, hit by
concerns about a snap presidential election in troubled Greece and a new slump
in energy shares. 
    Brent's front-month futures contract resumed their drift downwards
on Wednesday although they remained above a five-year low of $65.29 touched on
the previous day.
    A late rebound on the S&P 500 index, which ended the day flat after a
sharply lower start, showed appetite for stocks had not waned.
   "When European markets closed yesterday it looked as though the bears were
going to run rampant across equities all over the world," Jonathan Sudaria, a 
dealer at Capital Spreads, said in a note. "However, after the European close,
U.S. markets were able to pare back the majority of the earlier declines and
this turnaround in sentiment is being reflected in today open."
    The travel sector was likely to be in focus.
    Germany airline Lufthansa was indicated 1.4 percent higher after
it reported a 2.4 percent rise in sales at its passenger business for November.
 
    German travel and tourism TUI AG was seen opening 1.7 percent
higher after saying its target of 1 billion euros ($1.2 billion) in core profit
was coming into reach in the current year as it reported its final set of
results ahead of its merger with TUI Travel. 
    
    COMPANY NEWS 
    
    BT, DEUTSCHE TELEKOM 
    The board of BT met on Tuesday to discuss the possible acquisition of
British mobile operators O2 or EE, and agreed to continue talks with both sides,
a person familiar with the situation said. 
    
    ALTICE 
    Altice has signed a definitive agreement with Brazil's Oi to buy
the Portuguese operations of Portugal Telecom. The deal gives Portugal Telecom
an enterprise value of 7.4 billion euros on a cash and debt-free basis.
 
    
    JAZZTEL, ORANGE 
    Alken Asset Management, which had been the second largest shareholder in
Jazztel and which had opposed the price of a takeover offer from France's
Orange, has sold down its stake in the Spanish telecoms operator, Expansion
newspaper reported on Wednesday citing sources close to the firm. 
    
    BG GROUP 
    British gas giant BG Group Plc said on Tuesday it agreed to sell its wholly
owned QCLNG Pipeline Pty Ltd subsidiary in Australia to APA Group for
US$5 billion. 
    
    UBS 
    UBS AG aims to triple the assets that its U.S. wealth management clients
keep in fee-based accounts within seven to 10 years, a top executive said on
Tuesday. 
    
    STANDARD CHARTERED 
    The bank will face another three years of scrutiny by U.S. prosecutors for
compliance with government sanctions against certain countries, according to
documents filed on Tuesday that also noted another probe of the bank is
underway. 
    
    BANKIA 
    Bankia has asked PricewaterhouseCoopers to go over salaries paid to former
managers before the bank was bailed out and produce a report into whether they
were aligned with internal policies, Expansion said on Wednesday, citing legal
sources.     
           
     SANTANDER  
Spain's Santander denied late on Tuesday it was considering the buyout of 28
percent of its listed U.S. auto finance unit after Bloomberg reported it was
mulling such a move. 
    
    TUI AG 
    The travel and tourism group said its target of 1 billion euros ($1.2
billion) in core profit was coming into reach in the current year as it reported
its final set of results ahead of its merger with TUI Travel.
 
    
    ADIDAS 
    Nike Inc is accusing three of its former senior shoe designers of
stealing its commercial secrets and making off for German rival Adidas, which
announced in September the trio would staff its new urban footwear design studio
in Brooklyn. 
    
    FRAPORT  
    The airport operator said Frankfurt airport passenger traffic was up 2.5
percent in November. 
    
    STADA 
    Germany has named 16 generic drugmakers, including Stada and Dr. Reddy's
, that produce drugs affected by its suspension of marketing approval
over concerns about clinical trials conducted by an Indian
company. 
    
    VESTAS WIND SYSTEMS A/S 
    Danish wind turbine maker Vestas Wind Systems on Wednesday said a U.S. court
has approved a settlement to a class action lawsuit brought by its shareholders.
 
    
    RWE 
    The utility and trade union Verdi aim to arrange an extension of the
protection against dismissal at RWE by at least two years, daily Rheinische Post
said, citing union sources.
    
    ATLANTIA 
    The French unit of motorway operator Atlantia announced 200 job cuts in
eastern France on Tuesday in response to the government's decision to scrap the
"ecotax" road tolls it had been hired to collect. 
    
    BP 
    British oil major BP plans to invest more than $12 billion in Egypt over the
next five years, and to double its gas supplies to the local market in the next
decade, the country manager of BP Egypt said on Tuesday. 
    

    MAJOR U.S. COMPANIES REPORTING :
    0745 FR Industrial output Oct
    0930 GB Goods trade balance Oct
    1900 US Federal budget Nov
    
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0620 GMT: 
    
                                          LAST  PCT CHG  NET CHG
 S&P 500                              2,059.82  -0.02 %    -0.49
 NIKKEI                               17412.58  -2.25 %   -400.8
 MSCI ASIA EX-JP                        466.67  -0.17 %    -0.81
 EUR/USD                                1.2392   0.15 %   0.0018
 USD/JPY                                119.05  -0.53 %  -0.6300
 10-YR US TSY YLD                        2.213       --    -0.01
 10-YR BUND YLD                          0.694       --     0.00
 SPOT GOLD                           $1,235.60   0.42 %    $5.21
 US CRUDE                               $63.20  -0.97 %    -0.62
 
  
  > OIL SINKS AS FLIGHT TO SAFETY HITS SHARES                   
  > S&P 500 ERASES EARLY LOSSES TO END FLAT; ENERGY, TECH UP           
  > NIKKEI CLOSES AT NEAR 2-WEEK LOW ON GREEK WORRIES, STRONG YEN      
  > TREASURIES - BONDS GAIN ON GLOBAL GROWTH CONCERNS                  
  > DOLLAR UNDER PRESSURE AFTER SHAKE OUT OF CROWDED BULLISH POSITIONS 
  > GOLD HOLDS CLOSE TO 7-WEEK HIGH ON SAFE-HAVEN DEMAND               
  > COPPER EDGES DOWN AFTER SHORT-COVERING RALLY; OVERSUPPLY LOOMS    
  > BRENT RESUMES ITS FALL, LOSING $1 ON OVERSUPPLY WORRIES             
    

 (Reporting By Francesco Canepa)