Europe Factors to Watch-Shares to fall after ECB decision on Greek debt

jueves 5 de febrero de 2015 03:40 GYT
 

PARIS, Feb 5 (Reuters) - European stocks were set to fall on Thursday after
the European Central Bank abruptly cancelled its acceptance of Greek bonds in
return for funding, which means the Greek central bank will have to provide its
banks with tens of billions of euros of additional emergency liquidity in the
coming weeks.
    At 0740 GMT, futures for Euro STOXX 50, for Germany's DAX 
and for France's CAC were down 0.8-1.3 percent.
    The ECB move, which required the support of a majority of central bank
chiefs across the euro zone, shows widespread dismay with the new Greek
government's plans not only in Frankfurt but across the 19-country bloc.
 
    "This effectively means banks cannot use Greek government debt as collateral
for loans," IG market strategist Stan Shamu wrote in a note. 
    "The ECB went as far as saying it can no longer assume bailout negotiations
will be concluded successfully. Given Syriza was voted in to make some changes
and take an aggressive stance, many now fear this will not be taken easily by
the Greek population if the new government yields."
    Resource-related shares will be in focus after China's central bank made a
system-wide cut to bank reserve requirements on Wednesday, the first time it has
done so in over two years, to unleash a fresh flood of liquidity to fight off
economic slowdown and looming deflation.
    The announcement cuts reserve requirements - the amount of cash banks must
hold back from lending - to 19.5 percent for big banks, a reduction of 50 basis
points that would free up 600 billion yuan ($96 billion) or more held in reserve
at Chinese banks - which could then inject 2-3 trillion yuan into the economy
after accounting for the multiplying effect of loans. 
    Swiss stocks will also be in the spotlight after the Swiss government warned
on Thursday that the appreciation of the country's currency meant economic
growth would be weaker than previously expected but said it was still too
difficult to assess how severe the slowdown would be. 
    In Germany, data showed on Thursday industrial orders surged far more than
forecast in December, recovering from a sharp fall the previous month and
hitting their highest level since April 2008. Bookings for goods made in
Europe's largest economy climbed by 4.2 percent, beating the Reuters consensus
forecast for a 1.5 percent gain and overshooting even the highest estimate for a
3.0 percent increase. 
    
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  MARKET SNAPSHOT AT 0740 GMT: 
    
                                         LAST   PCT CHG  NET CHG
 S&P 500                             2,041.51   -0.42 %    -8.52
 NIKKEI                              17504.62   -0.98 %  -174.12
 MSCI ASIA EX-JP                       481.12   -0.12 %    -0.58
 EUR/USD                                1.135    0.05 %   0.0006
 USD/JPY                               117.19   -0.06 %  -0.0700
 10-YR US TSY YLD                       1.727        --    -0.07
 10-YR BUND YLD                         0.326        --    -0.04
 SPOT GOLD                          $1,271.00    0.11 %    $1.35
 US CRUDE                              $47.89   -1.16 %    -0.56
 
  > GLOBAL MARKETS-EURO HIT AS ECB TAKES HARD LINE ON GREEK DEBT 
  > US STOCKS-WALL ST ENDS LOWER WITH OIL PRICES, RENEWED GREECE WORRIES 
  > TOKYO'S NIKKEI SHARE AVERAGE CLOSES DOWN 0.98 PCT 
  > TREASURIES-U.S. BONDS STAGE LATE BOUNCE AS ECB SHUNS GREEK BONDS 
  > EURO STEADIER AFTER FALLING ON RENEWED GREECE WORRIES 
  > GOLD EXTENDS GAINS ON GREECE UNCERTAINTY, U.S. DATA EYED 
  > COPPER SLIPS AS TRADERS TAKE PROFITS ON CHINA BANK RESERVE MOVE 
  > OIL MARKETS DROP FURTHER AFTER CRASHING ON INVENTORY CONCERNS 
    
    COMPANY NEWS:
    
    BNP PARIBAS 
    France's largest bank said on Thursday that rising taxes and new regulations
would impact earnings next year by 500 million euros and said it would increase
cost cuts to cover growing compliance and control expenses. 
    
    SANOFI 
    Sanofi said on Thursday it would be in a position to name a new chief
executive by the end of the first quarter as it delivered fourth-quarter
earnings boosted by the weak euro. 
    
    UBS 
    U.S. federal prosecutors have launched a new probe into whether Swiss bank
UBS AG helped Americans evade taxes through investments banned in the United
States, the Wall Street Journal reported, citing people familiar with the
investigation. 
    
    MUNICH RE 
    The German reinsurer raised its dividend for 2014 by more than expected to
7.75 euros per share from 7.25 euros, after posting full year net profit in line
with expectations in a difficult reinsurance market.
    
    BT 
    BT said on Thursday it had agreed to buy mobile operator EE for 12.5 billion
pounds ($19 billion), and would raise 1 billion pounds through a placing of new
shares to fund the deal. 
    
    ABB 
    Swiss engineer ABB reported a smaller-than-expected rise in quarterly
profit, blaming an appreciation of the U.S. dollar and warning that the negative
currency effect was likely to continue this year. 
    
    TOTAL 
    Europe's second-biggest oil company is preparing for the sale or listing of
its rubber and insulation unit Hutchinson that could be worth up to 4 billion
euros, sources told Reuters. 
    
    SWISSCOM 
    The telecoms group said its operating profit would decline this year, hit by
the strong Swiss franc, higher pension costs and lower gains on the sale of real
estate. 
    
    DEUTSCHE TELEKOM, BT, ORANGE 
    BT has agreed terms with Orange and Deutsche Telekom for the purchase of
their EE mobile operator and a deal could be announced as early as Thursday
morning, a person familiar with the situation said. 
    
    NOKIAN RENKAAT 
    Finnish winter tyre specialist Nokian Renkaat reported its fourth-quarter
profits fell less than expected and proposed an annual dividend above the market
consensus. 
    
    VOLVO 
    Global truck maker Volvo reported a surprise slight decline in fourth
quarter core earnings but raised its outlook for truck markets in both Europe
and North America and said it would cut more staff in its construction equipment
arm. 
    
    SWATCH GROUP 
    Swiss watchmaker said on Thursday it was in a "strong position" despite an
overvalued Swiss franc and a fall in its net profit last year. 
    
    SBM 
    The Dutch marine oil production and loading vessels specialist said its
revenue this year could fall to as low as $2.2 billion, down from $3.5 billion
in 2014. 
    
    TELECOM ITALIA 
    The Italian phone company investor Findim said on Wednesday it had cut its
stake in the group to 1.989 percent of the voting capital. 
    
    VINCI 
    Vinci expects its 2015 revenue will decline slightly as a tough economic
climate hurts its French contracting business and a toll road freeze weighs on
its motorway concessions business. 
    
    VODAFONE 
    A steady recovery in Europe helped Vodafone to stem the rate of sales
decline in its third quarter, putting the world's second biggest mobile operator
in touching distance of overall revenue growth once again. 
    
    TESCO 
    Britain's grocery industry watchdog said on Thursday it had launched an
investigation into supermarket Tesco's supplier practices with have resulted in
delayed payments. 
    
    ASTRAZENECA 
    AstraZeneca said on Thursday it had agreed to buy Actavis' branded
respiratory drug business in the United States and Canada for an initial payment
of $600 million as it seeks external deals to ensure growth. The announcement
came as Britain's second-biggest drugmaker posted fourth-quarter results that
fell short of expectations. 
        
    COMPASS GROUP 
    Compass Group, the world's biggest catering firm, maintained its full-year
outlook after seeing a return to growth in Europe and Japan, but warned that
lower oil prices may impact its oil extraction-related business. 
    
    SMITH & NEPHEW 
    British artificial hip and knee maker Smith & Nephew posted a 7 percent rise
in trading profit in the fourth quarter, and said it was confident it would grow
both revenue and its trading profit margin in 2015. 
        
    BANCA GENERALI 
    The Italian asset manager said on Wednesday its total net inflows in January
rose 80 percent on the year to 406 million euros, its best ever start to a year.
 
    
    COOPERATIVE BANKS
    The association of Italy's cooperative banks, which the government is set to
reform, said that its advisers had suggested introducing a voting system that
could favour smaller investors if the current reform plan went ahead. 
    

 (Reporting by Blaise Robinson; Editing by Alistair Smout)