Europe Indexes Rise; Agricole, L

Arthi Gupta
26 Aug, 2010
New York City

The European indexes gained after euro-zone lending and leading indexes rose in July and M3 money supply growth was flat. The ECB said net lending to corporations rose at the fastest pace in July. Novartis acquired 77% stake in Alcon.

[R]4:00 PM Frankfurt – The European indexes gained after euro-zone lending and leading indexes rose in July and M3 money supply growth was flat. The ECB said net lending to corporations rose at the fastest pace in July. Novartis acquired 77% stake in Alcon.[/R]

U.S. stocks rose and Asian markets traded mixed.

The Swedish government formulated reforms worth SEK32.8 billion in its election manifesto. Swiss employment improved in the second quarter and Italian consumer confidence plunged since March 2009.

In Paris CAC 40 Index increased 28.96 or 0.84% to close at 3,479.15 and in Frankfurt DAX Index edged higher 27.65 or 0.47% to close at 5,927.15.

The Netherlands Bureau for Economic Policy Analysis said today that the global trade momentum eased to 3.6% annually in June from 5.1% in May.

The European Central Bank reported bank lending to companies operating in the euro-zone rose at a faster pace in July compared to June.

Lending rose at an annual rate of 0.9%, compared with a 0.5% increase in June. But lending to non-financial companies dropped 1.3% in July, compared to a 1.6% fall in June.

Annual lending to households rose 2.8% and mortgage lending grew 3.5% in July.

Euro-zone''s leading economic indicator climbed 1% in July compared to a 0.6% increase in June, according to data released by the Conference Board today.

The European Central Bank said today that the euro-zone M3 money supply rose 0.2% year-on-year in July, the same rate of growth as in June. The three-month average of the annual rates of change of M3 over the period May to July was 0.1%.

German consumer climate will probably improve in September, according to results of a key survey published today.

The consumer confidence index for September rose to 4.1 from a revised 4 in August, according to a monthly survey from GfK Group.

Spain''s economy grew 0.2% between April and June, the country''s statistics office INE confirmed today.

INE also revised up the annual GDP comparison for the June quarter. The economy is now estimated to have contracted 0.1% compared to a year ago.

Sweden''s government outlined reforms that will be executed if it wins the election next month. The government said in its manifesto the proposed reforms worth around SEK32.8 billion will be implemented between 2011 and 2014. Further, the government planned to reduce the stakes in Nordea Bank and the telecom operator TeliaSonera.

The election is scheduled on September 19.

Switzerland’s employment rose modestly in the second quarter as the decline in the industrial sector moderated and the tertiary sector continued to add more jobs, according to the Federal Statistics Office report released today.

The number of jobs rose 0.6% annually in the second quarter to 3.968 million. Total number of employed in the second quarter was 4.54 million, an increase of 0.5% from a year ago.

According to a report published in Hospodarske Noviny daily, Czech central banker Kamil Janacek said it is certain that the period of low interest rates and the decline in rates has ended in the Czech Republic. The central banker further added the Czech economy is likely to grow 4% in the next three to four years.

Confidence among Italian consumers plunged in August to its lowest level since March 2009, according to survey results published today.

The seasonally-adjusted consumer confidence index fell to 104.1 in August from a revised 105.5 in July, research firm ISAE said in a survey.

Novartis AG and Nestlé S.A. completed the purchase and sale of about 156 million shares of Alcon Inc. for $28.3 billion in cash. Following the closure of this transaction, Novartis is currently Alcon''s majority shareholder and controls about 77% of Alcon''s outstanding shares.

The transaction announced by Nestlé and Novartis does not affect the remaining 23% of Alcon''s shares, Alcon added.

Gainers & Losers

BioAlliance Pharma S.A. surged 6.70% to €6.37 after the company dedicated to the treatment and supportive care of cancer and AIDS patients reported first-half revenues soared 422% to €21.4 million, compared to the €4.1 million generated in the first half of 2009. Net profit generated in the period was €10.58 million, up as against a loss of €8.82 million in the corresponding period last year.

Crédit Agricole S.A. increased 3.54% to €10.25 after the banking and financial-services provider reported second-quarter group share net income surged 89% to €379 million compared to €201 million in the second quarter of 2009. Quarterly net income soared 87% to €498 million from €266 million in the year earlier quarter. Net banking income rose 20% to €5.47 billion versus €4.56 billion in the previous year.

Eni S.p.A. gained 1.23% to €15.58 after the oil firm confirmed that it is holding talks with Kazakhstan to sell a stake in the Karachaganak natural gas field.

EVS Broadcast Equipment SA soared 10.49% to €40.88 after the digital disk recorders supplier reported second quarter net profit surged 124% to €11.2 million from €5.0 million in the prior year.

Gemalto NV dropped 2.97% to €28.58 after the digital security company said first-half adjusted net profit declined 6.4% to €63.2 million or 74 euro cents per share from €67.5 million or 78 euro cents per share last year.

Koninklijke Ahold NV fell 0.90% to $12.18 after the supermarket group reported second quarter net sales increased 11% to €7.13 billion from €6.43 billion in the year-ago quarter. Net income in the quarter rose 3.1% to €202 million or 17 euro cents per share compared to net income of €196 million or 16 euro cents per share last year.

L''Oreal S.A. advanced 5.71% to €80.10 after the cosmetics maker said first half net profit rose 21% to €1.32 billion from €1.09 billion a year earlier helped by cost savings and higher sales of luxury fragrances.