European Markets Decline; BMW Net Surges

Arthi Gupta
03 Aug, 2010
New York City

European markets fall after bank stocks decline. Euro-zone wholesale inflation eases 0.3% in June. Spanish unemployment declines for the fourth consecutive month as consumer confidence improves in July. Swiss consumer prices fall for third month. Sanofi-Aventis is in talks to acquire Genzyme.

[R]4:00 PM Frankfurt – European markets fall after bank stocks decline. Euro-zone wholesale inflation eases 0.3% in June. Spanish unemployment declines for the fourth consecutive month as consumer confidence improves in July. Swiss consumer prices fall for third month. Sanofi-Aventis is in talks to acquire Genzyme.[/R]

U.S. stocks declined and Asian markets rose. BP Plc said that the ""static kill"" to permanently plug the damaged deepwater well in the Gulf of Mexico may take place on Tuesday.

In Paris CAC 40 Index decreased 21.47 or 0.57% to close at 3,730.56 and in Frankfurt DAX Index edged lower 1.38 or 0.02% to close at 6290.75.

Euro-zone producer price inflation moderated unexpectedly in June from the previous year, reflecting muted inflationary pressures in the 16-nation bloc.

Euro-zone producer prices rose at a pace of 3% year-on-year in June, slightly slower than the 3.1% increase seen in May, according to a report released by the Eurostat today.

On a monthly basis, producer prices increased 0.3% in June, unchanged from last month''s growth. In EU27, producer prices rose 0.2% month-on-month and 3.5% annually.

Spanish unemployment dropped for the fourth consecutive month in July and the decline was the biggest for the month since 1998. The number of unemployed persons decreased 73,790 or 1.9% in July from the previous month to 3.91 million, according to a report published by the Labor Ministry today.

Male unemployment fell 2.2% and female unemployment was down 1.5%.

Unemployment fell across all sectors, with the services sector registering the largest decline, followed by construction. Unemployment also fell in manufacturing and agriculture.

Spanish consumer confidence indicator rose in July as household''s economic expectations and current situation increased. The consumer confidence index edged higher to 73.6 in July compared to 65.9 in the previous month, according to a report by the state-run Official Credit Institute released today.

Switzerland''s consumer prices declined in July for a third month, according to data released from the Federal Statistics Office today. Consumer prices dipped 0.7% month-on-month in July as against a 0.4% decrease in June.

Sanofi-Aventis, the French drugmaker is reportedly in talks to acquire biopharmaceutical firm Genzyme Corp. for a value of less than $20 billion. Sanofi-Aventis is said to have sent an offer letter to Genzyme with a $67 to $70 per share offer.

The potential combination with Genzyme could see Sanofi bolster its drug pipeline and significantly increase its presence in the biopharmaceutical sector.

Gainers & Losers

Bayerische Motoren Werke AG rose 3.06% to €43.17 after the German car maker posted a better-than-expected second-quarter profit helped by strong demand for luxury cars in China. Net profit soared 589% to €834 million in the three months ended June 30 from €121 million last year, while pre-tax profit surged 754% to €1.29 billion from €151 million.

Deutsche Post AG gained 3.70% to €14.00 after the logistics provider reported second-quarter profit soared 23% to €81 million. For the entire year of 2010, the group continues to expect a moderate recovery in transport volumes.

Investec plc fell 5.46% to 476.00 pence after the investment banking company raised $166.4 million by placing 22 million ordinary shares. The shares were issued at 475 pence each, giving a 5.75% discount to Monday''s closing price of 504 pence.

Sanofi-Aventis SA increased 0.07% to €29.86 after the pharmaceutical group is reportedly in talks to acquire biopharmaceutical firm Genzyme Corp. for a value of less than $20 billion.