European Factors to Watch-Shares seen higher, focus on earnings

miércoles 21 de octubre de 2015 02:50 GYT

(Updates futures prices, adds company news)
    LONDON, Oct 21 (Reuters) - European shares headed for a higher open on
Wednesday after falling in the previous session, with investors focusing on
quarterly earnings reports for the market's near-term direction.
    Futures for the euro zone's blue-chip Euro STOXX 50 index,
Germany's DAX, France's CAC and Britain's FTSE were all
up between 0.1 and 0.4 percent by 0650 GMT.
    Earnings reports were mixed on Wednesday, with Swiss power grids maker ABB
 posting a better-than-expected third-quarter net profit, European
pay-TV group Sky reporting a slightly-better-than expected 10 percent
jump in operating profit and the Nordic region's biggest bank by market value,
Nordea, reporting third-quarter operating profit below forecasts.
    Swiss bank Credit Suisse posted a bigger-than-expected 24 percent
drop in net profit and announced plans for two capital increases to raise just
over 6 billion Swiss francs ($6.28 billion), while Thales, Europe's
largest defence firm reported flat revenues.  
    Only 6 percent of 284 companies in the STOXX Europe 600 index have
reported quarterly results so far, of which 69 percent have met or beaten
forecasts, according to Thomson Reuters StarMine.
    In the United States, 13 percent companies in the S&P 500 index have
announced results, with 74 percent firms meeting or beating expectations and the
rest missing forecasts.
    The pan-European FTSEurofirst 300 index ended down 0.5 percent in
the previous session.
    The Swiss bank announced plans for two capital increases to raise just over
6 billion Swiss francs ($6.28 billion), as well as a raft of changes to its top
management and a partial flotation of its Swiss universal bank. 
    The bank posted third quarter net profit of 779 million Swiss francs
($815.37 million), compared with a predicted 921 million francs in a Reuters
    Swiss power grids maker ABB posted better-than-expected
third-quarter net profit as it cut costs to offset sluggish business with oil
and gas customers and amid slowing growth in China and the United States, its
two biggest markets. 
    Syngenta Chief Executive Officer Mike Mack has informed the Swiss company's
board of his intention to step down, Syngenta said. Mack will be leaving the
company at the end of October 2015. 
    European pay-TV group Sky posted a slightly-better-than expected 10 percent
jump in first-quarter operating profit, helped by strong new broadband additions
in Britain. 
    The company will announce a deal for around 36,000 workers at its main
Ludwigshafen base on Wednesday, under which it will invest around 6 billion
euros over the next five years and rule out involuntary redundancies until 2020.
    Europe's largest defence company reaffirmed its financial targets on
Wednesday as it reported flat revenue on a like-for-like basis for the third
    The Nordic region's biggest bank by market value reported third-quarter
operating profit below forecasts on Wednesday and said negative interest rates
put pressure on interest income. 
    Deutsche Telekom is considering selling its T-Mobile Netherlands business,
according to two sources familiar with the matter, in a deal that could be worth
about 5 billion euros ($5.7 billion). 
    Britain's biggest household goods retailer warned on its full-year profit
outlook, blaming trading uncertainty ahead of Black Friday and increased
investment at its Argos chain. 
    EU antitrust regulators have no objections to FedEx's 4.4 billion
euro ($5 billion) acquisition of Dutch peer TNT Express, the companies said on
Tuesday, confirming what two people familiar with the matter previously told
    The French bank said it would pay $787 million in sanctions-busting fines
agreed with U.S. authorities from existing provisions, with no further effect on
its accounts in the second half of the year. 

    The lender is pushing back bonus payments for investment bankers and
managers to March from February to gain more time to assess the previous year's
performance, daily Handelsblatt reported, citing a letter Deutsche's HR
department sent to its works council.
    The miner lifted September quarter iron ore production 7 percent to 61
million tonnes versus the year-ago period, while maintaining fiscal 2016
guidance at 247 million tonnes. 
    SAP said it has exceeded 1,300 customers for the SAP Business Suite 4 SAP
HANA since the launch in  February 2015. 
    Novartis said it broadened its immuno-oncology pipeline with the acquisition
of Admune Therapeutics and licensing agreements with Xoma and Palobiofarma.
    Swiss VW distributor AMAG said the registration ban has been lifted for VW
commercial vehicles that were not affected by emissions manipulation, and that
new vehicle models of Transporter, Amarok (Generation 2) starting in 2012, and
Crafter can be registered again in Switzerland. 
    Norsk Hydro, one of the world's largest aluminium producers, posted
operating earnings above forecasts, but cut its outlook for global demand
    Ferrari NV priced its initial public offering at the top of
expectations on Tuesday, raising $893 million, as drivers enamored with the
luxury sports car maker snapped up its shares alongside institutional investors,
defying a choppy market. 
    The oil major is working with Barclays on a potential sale of chemical unit
Versalis, which may fetch as much as 1 billion euros, Bloomberg said on Tuesday,
citing sources. 
    BMW is sticking with its diesel strategy despite the emissions scandal at
fellow carmaker Volkswagen, magazine Super Illu quoted board member Peter
Schwarzenbauer as saying in an interview.
    France has won Tokyo's cautious acceptance of a move to bolster its
influence over the carmaker, sources familiar with the matter told Reuters,
despite CEO Carlos Ghosn's warnings that Paris' greater clout imperils the
alliance with Japanese partner Nissan. 
    The French nuclear group said it plans to cut 2,700 jobs in France by 2017
as it restructures. 
    Swedish telecom operator Tele2 posted a third-quarter core profit above
expectations and slightly cut its 2015 core profit outlook while repeating its
sales outlook. 
    Reckitt Benckiser raised its full-year sales outlook after reporting a
bigger-than-expected gain in third-quarter sales helped by consumer health
    The British chip designer whose technology powers the iPhone met market
expectations with a 27 percent rise in pretax profit for the third quarter and
said it was on track for the year. 
    Spanish utility Iberdrola posted a 5.8 percent rise in nine-month core
profit, slightly beating analysts' forecast, as growth in its international
business more than offset a fall in its home market. 
    British education publisher Pearson said it expected earnings to be at the
bottom end of its range due to lower enrolments at some colleges in the United
States and lower school text book purchases in some parts of South Africa.
    The brewer will pay up to $28 million to settle a class action lawsuit over
Beck's brand labeling that consumers said falsely led them to believe the beer
was brewed in Germany under an agreement approved in Florida federal court.
    The U.S. Senate Judiciary Committee's antitrust subcommittee will hold a
hearing to discuss Anheuser-Busch Inbev SA's plans to buy rival
SABMiller, two senators said on Tuesday. 
    The French announced a capital increase with preferential subscription
rights for an amount of approximately 227 million euros. 
    The lender is pushing back bonus payments for investment bankers and
managers to March from February to gain more time to assess the previous year's
performance, daily Handelsblatt reported, citing a letter Deutsche's HR
department sent to its works council.
    The Swedish bank reported third-quarter operating profit below expectations
as the bank showed a surprise fall in interest income. For more on the company,
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                                            LAST     PCT CHG     NET CHG
 S&P 500                                2,030.77     -0.14 %       -2.89
 NIKKEI                                 18518.34      1.71 %      311.19
 MSCI ASIA EX-JP                          429.25      0.05 %        0.23
 EUR/USD                                  1.1359      0.13 %      0.0015
 USD/JPY                                  119.96      0.12 %      0.1400
 10-YR US TSY YLD                          2.065          --       -0.01
 10-YR BUND YLD                            0.636          --        0.01
 SPOT GOLD                             $1,177.51      0.15 %       $1.81
 US CRUDE                                 $46.00     -0.63 %       -0.29
  > Asia shares lag behind Nikkei, euro firm for ECB 
  > Wall Street ends down with healthcare, IBM; United Tech rises 
  > Nikkei rises as investors shrug off weak trade data 
  > Yields add to gains, helped by U.S. housing report 
  > Euro firms as prospects for ECB easing wane on solid data 
  > Gold extends gains to second day on sluggish dollar 
  > London copper hits near 2 week low as demand sours 
  > Oil falls after industry report shows surge in U.S. crude stocks 

 (Reporting by Atul Prakash)