European Factors to Watch-Steady open expected ahead of ECB

jueves 22 de enero de 2015 03:49 GYT
 

(Adds further company news)
    LONDON, Jan 22 (Reuters) - Euro zone shares were indicated to open flat to
higher on Thursday, rising for a sixth consecutive session, as investors bet on
the size and shape of a sovereign bond-buying programme the European Central
Bank is expected to unveil later in the day.
    Futures for the Euro STOXX 50 equity index and Germany's DAX
 were both 0.2 percent higher at 0748 GMT, while contracts on France's
CAC were flat.
     A euro zone source told Reuters on Wednesday the bank's Executive Board has
proposed a programme that would enable the ECB to buy 50 billion euros ($58
billion) in bonds per month starting in March. Investors awaited an official
announcement and details at a press conference to be held by ECB President Mario
Draghi at 1330 GMT.
    "Traders have been well prepped for what to expect today and there shouldn't
be any surprises," Jonathan Sudaria, a dealer at Capital Spreads, said in a
note. "For equities traders this could be the start of a huge bull run."
    Tech stocks may come under pressure after IBM, the one-time
world technology leader, posted a new 2015 profit target and quarterly revenue
that both missed analysts' estimates. 
    
    COMPANY NEWS
    
    CREDIT SUISSE 
    Credit Suisse said that it had not made losses trading foreign
exchange after Switzerland's central bank suddenly abandoned a currency cap last
week, causing a surge in the Swiss franc. 
    
    NOVARTIS 
    The U.S. Food and Drug Administration approved Novartis AG's 
injectable drug, Cosentyx, to treat adults with a moderate to severe skin
disease called plaque psoriasis. 
    
    SANOFI 
    The French drugs group and its subsidiary Genzyme said the European
Commission had granted marketing authorization for Cerdelga (eliglustat)
capsules, a first line oral therapy for certain adults living with Gaucher
disease type 1. 
    
    BALFOUR BEATTY 
    The company said it expected 2014 profit in its troubled construction unit
would be reduced by 70 million pounds ($106 million) after a review assessed its
contracts and found a deterioration in project performance. 
    
    ROYAL MAIL 
    Royal Mail said group revenue for the nine months to Dec. 28 rose 1 percent,
marking a slowdown from the half year as competition within the parcel market
crimped sales. 
    
    BG GROUP 
    BG shares rose more than 4 percent on Wednesday. The Independent newspaper's
market report said some punters were pushing rumours that the oil explorer could
be subject to a £12-a-share break-up bid from Exxon Mobil or Brazil's
Petrobas.
    
    QUINDELL 
    Ben Harrington's Betaville blog reports that law firm Slater & Gordon is in
exclusive talks to buy Quindell's legal services division. Quindell and Slater &
Gordon declined to comment, the blog said.
    
    EUROTUNNEL 
    Eurotunnel posts a 7 percent increase in revenue for 2014 to 1.2 billion
euros boosted by an improvement in freight train and truck traffic as the
British economy recovers. 
    
    KERING 
    French luxury goods group Kering says its Gucci unit has appointed an
in-house designer as the creative director of the Italian fashion house.
{ID:nL6N0V04IS]
    
    REMY COINTREAU 
    The French spirits group said on Thursday that cognac sales turned positive
in the third quarter, driven by robust demand for premium qualities in the
United States while shipments to China rose on the back of easier year-ago
comparables.
    
    BANKS  
    France and Austria sought on Thursday to break deadlocked talks with nine
other European countries for a financial transaction tax by proposing that it be
applied to cover a wide range of transactions but at low rates from next year.
 
    
    BARCLAYS 
    New York's top law enforcer on Wednesday accused Barclays of defying his
subpoenas in a probe of high-speed trading in its private "dark pool," and moved
to expand his lawsuit accusing the British bank of fraud. 
    
    MUNICH RE 
    The reinsurer is developing further risk cover for terrorism, CEO Nikolaus
von Bomhard told Sueddeutsche Zeitung. He said incidents like those in France,
Australia or Canada were easier for the industry to cover than those, like the
one on the World Trade Center, involving multiple attackers and heavy claims
that are hard for the industry to digest.
    
    LOGITECH 
    Logitech said it is raising its outlook for full-year non-GAAP operating
income to roughly $185 million from $170 million, but lowering its sales outlook
to $2.11 billion from $2.16 billion to reflect the stronger US dollar. 
    
    FINMECCANICA, ANSALDO STS 
    The board of Finmeccanica has asked the Italian defence group's CEO to press
ahead with and conclude talks to sell its rail assets, the company said on
Wednesday. 
    
    DEUTSCHE ANNINGTON, GAGFAH 
    Deutsche Annington's takeover offer for Gagfah ended at 2300 GMT on
Wednesday. Annington said on Wednesday it has already reached 74.4 percent of
shares and will publish the final level of Jan. 26. 
    
    SIKA 
    Sika said that prominent mutual funds which are backing management's efforts
to thwart a 2.75 billion Swiss franc ($3.20 billion) takeover by French building
materials company Saint-Gobain have reinforced their opposition to the
deal and lodged several requests, in a letter published on the Swiss firm's
website. 
    
    DMG MORI SEIKI AG 
    Indicated 8.7 percent higher
    Japan's DMG Mori Seiki Co Ltd offered 27.50 euros per share in cash
for its German machine tool making partner DMG Mori Seiki AG, valuing
it at nearly 2.2 billion euros ($2.55 billion), the German firm's CEO said.
 
    He said the deal was likely to be done by the Easter holidays.
 
    
    MAJOR U.S. COMPANIES REPORTING :
    Q4 2014 Verizon Communications Inc        
    Q1 2015 Starbucks Corp                    
    
    MAJOR MACROECONOMIC DATA/EVENTS (GMT)  :
    0930 GB PSNB Dec
    1100 GB CBI Trends Dec
    1245 EZ ECB Rate decision
    1330 US Initial jobless claims w/e
    1500 US Consumer confidence flash Jan
    
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  MARKET SNAPSHOT AT 0641 GMT: 
    
                                                   LAST     PCT CHG     NET CHG
 S&P 500                                       2,032.12      0.47 %        9.57
 NIKKEI                                        17329.02      0.28 %       48.54
 MSCI ASIA EX-JP                                 475.71      0.11 %        0.51
 EUR/USD                                         1.1583     -0.22 %     -0.0025
 USD/JPY                                         118.22      0.25 %      0.2900
 10-YR US TSY YLD                                 1.894          --        0.04
 10-YR BUND YLD                                   0.526          --        0.01
 SPOT GOLD                                    $1,286.30     -0.52 %      -$6.76
 US CRUDE                                        $47.51     -0.57 %       -0.27
 
  > ASIAN SHARES NEAR 8-WEEK HIGHS AS MARKETS BRACE FOR ECB ACTION 
  > WALL ST UP ON ECB BETS BUT DETAILS, IBM CAP GAINS              
  > NIKKEI EDGES UP AS YEN SAGS, CAUTION BEFORE ECB CAPS GAINS     
  > YIELDS RISE AS INVESTORS UNWIND TRADES BEFORE ECB MEETING      
  > EURO BRACES FOR ECB MOVES, RATE CUT JOLTS CANADIAN DLR         
  > GOLD HOLDS BELOW $1,300 AHEAD OF ECB ON STRONG EQUITIES        
  > LONDON COPPER SAGS AS TRADERS CUT RISK AHEAD OF ECB MEET       
  > OIL PRICES DIP AHEAD OF LOOMING ECB BOND BUYING PROGRAMME      
    

 (Reporting By Francesco Canepa; Editing by Atul Prakash)