European Factors to Watch-Shares seen opening broadly higher
(Adds futures prices, company news) LONDON, Oct 29 (Reuters) - European shares were expected to open broadly higher on Thursday, tracking strong gains in the United States after the Federal Reserve gave a vote of confidence in the U.S. economy by signaling the possibility of a December rate hike. The Fed kept interest rates unchanged on Wednesday and in a direct reference to its next policy meeting put a December rate hike firmly in play. But the Fed also did not mention global conditions. When it held policy steady last month, the central bank expressed concern that a slowing global economy could threaten the U.S. outlook. "Quite why U.S. markets had such a miraculous turnaround is up for debate, with less than plausible explanations ranging from short covering to traders being comfortable with a 0.25 percent hike," Jonathan Sudaria, dealer at London Capital Group, said in a note. "More likely however, despite (Fed Chair) Janet Yellen bringing a December rate hike back into the realm of possibility and dropping the warning on global risk, looking at the continuing weakening data from not only the U.S. but around the globe, no one really believes there'll be a hike in December." Futures on the euro zone's Euro STOXX 50, Germany's DAX and France's CAC were up 0.3 to 0.4 percent by 0730 GMT. However, futures on Britain's FTSE 100 fell 0.2 percent. The commodity-heavy FTSE 100 index is expected to be dragged down by mining stocks as metals price fell on a stronger dollar. The U.S. currency rose on increased prospects of a U.S. rate hike this year. COMPANY NEWS ROYAL DUTCH SHELL The company reported a sharp drop in third-quarter profits on the back of low oil prices and a hefty $8.2 billion charge which included write-offs in Alaska and Canada. DEUTSCHE BANK Deutsche Bank said it would scrap its 2015 and 2016 dividends and outlined new financial targets for 2018. The bank is due to present details of how it intends to achieve the targets and Q3 numbers at 0800 GMT. Deutsche Bank is expected to settle a sanctions violations case for at least $200 million, The New York Times reported. BARCLAYS The British bank took a 560 million pound ($855 million) hit to compensate customers mis-sold foreign exchange products and to cover a U.S. mortgages settlement, as it reported a 10 percent drop in quarterly profits. NOKIA The world's No. 3 network equipment maker reported stronger-than-expected profits as growth in China offset weaker demand in North America and Europe, and announced a new shareholder return plan. BT Britain's BT, riding high after receiving the go-ahead to buy mobile operator EE on Wednesday, edged market expectations with a 2 percent rise in second-quarter revenue on an underlying basis, helped by new TV customers. SANOFI The drugmaker reported stronger third-quarter profit as rising sales at biotech arm Genzyme and in animal health compensated for a fall in revenue from diabetes drugs, its main business. It forecast global diabetes sales over the period 2015-2018 would decline at an average annualised rate of 4-8 percent at constant exchange rates. Sanofi also said it was voluntarily recalling all its Auvi-Q injections in the United States to treat patients with severe allergic reactions. TOTAL The oil and gas company's net adjusted profit tumbled 23 percent to $2.756 billion in the third quarter compared with the same period a year ago, hit by a sharp fall in global oil prices. BAYER The drugmaker saw underlying core earnings gain 28 percent in the third quarter, bolstered by sales of new drugs and the purchase of Merck & Co's consumer health business. SWISS RE The world's second largest reinsurer posted an unexpected year-on-year rise in third-quarter net profit. LUFTHANSA German airline Lufthansa lifted its profit target for 2015 on Thursday, after a strong summer and cheaper fuel costs but warned more of price pressure ahead and said action needed to be taken on costs. ALCATEL-LUCENT The telecoms equipment maker posted a net loss in the third quarter despite higher revenues from its core networking products, adding that larger rival Nokia's plan to buy it was on track to complete in the first quarter. ENI Italian oil and gas group Eni said on Thursday it had swung to a net loss in the third quarter due to weaker oil prices and the poor performance of its oil contracting subsidiary Saipem. AIR FRANCE-KLM The airline posted a sharper-than-expected increase in third-quarter profits, but warned unions that the gains from improved demand over the summer would not remove the "overwhelming need" for cost cuts to keep pace with rivals. SANTANDER The euro zone's biggest bank posted a near 5 percent rise in net profit in the third quarter from a year ago, though it said depreciating currencies in key markets such as Brazil were dragging on earnings. SGS Testing and inspections company SGS SA is targeting an adjusted operating margin of at least 18 percent by the end of the 2016-2020 period as it accelerates acquisitions in hopes of adding 1 billion Swiss francs ($1.01 billion) in revenue, it said. For more, click on NOVO NORDISK Denmark's Novo Nordisk said it saw mid to high single-digit percent growth in sales and operating profit in local currencies next year, outlining its preliminary forecasts for 2016. STRAUMANN The dental implants company confirmed its full-year outlook while reporting nine-month group revenue climbed 12 percent in Swiss francs (9 pct organic, 18 pct in local currencies) to 585 million Swiss francs ($589 million), including 46 million francs from Neodent. For more click on SCHNEIDER ELECTRIC The electrical components and energy management group forecast a slight fall in full-year revenue on an organic basis and a moderate decline in its adjusted operating margin as it wrestles with a "challenging environment". SUEZ ENVIRONNEMENT The waste and water group kept its 2015 targets after nine-month revenue and sales rose. GEMALTO The digital security company said third-quarter revenue grew 23 percent as sales rose at its payment and identity business and its acquisition of U.S.-based SafeNet boosted demand from the United States. CAPGEMINI The IT services company kept its 2015 targets after it recorded new orders of 2.499 billion euros in the third quarter. TECHNIP The French oil services company posted a better-than-expected rise in third-quarter revenue and a profits boost, thanks to increased subsea activities and despite prolonged low oil prices. DEUTSCHE BOERSE Vigorous trading in volatile financial markets boosted revenue at German exchange operator Deutsche Boerse DB1Gn.DE in the third quarter, contributing to a stronger-than-expected 21 percent rise in operating profit. Seprately, China's foreign exchange trading operator and Germany's Deutsche Boerse signed an agreement to establish a joint venture in Germany, with each side holding a 50 percent stake, the China Foreign Exchange Trade System said on Thursday. DEUTSCHE POST Deutsche Post slashed its 2015 operating profit target for the second time this year on Wednesday, taking a 345 million-euro ($376 million) hit from a troubled revamp of IT systems at its freight division. AIRBUS China and Germany signed a deal that will see Chinese airlines buy 30 A330 planes. CREDIT AGRICOLE Jean-Marie Sander tells Les Echos that he will resign as chairman of the board on Nov. 4 and will propose that Dominique Lefebvre replace him. Sander had already said at the annual general meeting in May that he would leave by the end of the year. UBISOFT, VIVENDI, GAMELOFT Merging video game providers Ubisoft and Gameloft is not on the agenda, Yves Guillemot, head and co-founder of Ubisoft told Les Echos newspaper in an interview. SAINT-GOBAIN The company said nine-month sales rose 0.4 percent on an organic basis to 29.8 billion euros. ------------------------------------------------------------------------------ MARKET SNAPSHOT AT 0615 GMT: LAST PCT CHG NET CHG S&P 500 2,090.35 1.18 % 24.46 NIKKEI 18935.71 0.17 % 32.69 MSCI ASIA EX-JP 424.3 -1.1 % -4.74 EUR/USD 1.0939 0.17 % 0.0019 USD/JPY 120.76 -0.25 % -0.3000 10-YR US TSY YLD 2.089 -- 0.00 10-YR BUND YLD 0.469 -- 0.02 SPOT GOLD $1,161.15 0.47 % $5.45 US CRUDE $45.71 -0.5 % -0.23 > Asia stocks slip, dlr strong as Fed opens door to Dec hike > Wall St climbs as Fed puts Dec rate hike in play > Nikkei edges up in choppy trade ahead of BOJ meeting > U.S. bond prices fall as Fed keeps door open on rate hike > Dollar at 2-1/2-month high after Fed brings Dec rate hike into view > Gold near 2-week low as Fed puts December rate hike in play > London copper slips on U.S. Dec rate hike view > Crude oil futures hold gains after Fed sits pat on rates (Reporting by Atul Prakash)
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