German Business Confidence Improves, Carlsberg Net Falls 21%

Arthi Gupta
21 Feb, 2011
New York City

The European indexes fell on escalating unrest in the Middle East. Euro area private sector activity strengthened and German business confidence improved in February. Canada-based Nordion divested Belgian operations. Merck revenues rose and TNT net surged.

[R]4:00 PM Frankfurt – The European indexes fell on escalating unrest in the Middle East. Euro area private sector activity strengthened and German business confidence improved in February. Canada-based Nordion divested Belgian operations. Merck revenues rose and TNT net surged.[/R]

European markets edged lower as tensions rose in the Middle East and crude oil surged to 2-year high. G20 group of nations drafted a statement to monitor global financial flows and imbalances to prevent next crisis.

Asian markets traded lower on political concerns in Libya. The U.S. markets are closed today for the Presidents Day Holiday.

Protestors set fire to the parliamentary building in the Libya’s capital, Tripoli, while demonstrators have taken control of the eastern city of Benghazi.

The finance chiefs from the G20 group of nations agreed a set of targets to measure global economic imbalances at the end of a two-day summit in Paris.

Increasing inflation is a concern in euro-zone as the rise in food prices may continue, European Central Bank Executive Board member Lorenzo Bini Smaghi said in a speech at a luncheon in Hong Kong on Monday.

In Paris CAC 40 Index declined 25.81 or 0.62% to close at 4,131.33 and in Frankfurt DAX Index edged lower 50.07 or 0.67% to close at 7,376.74.

Euro-zone Private Sector Activity Strengthens

Euro-zone private sector activity expanded in February at the strongest pace since July 2006, data from Markit Economics showed on Monday. The Markit Flash Eurozone Composite Output Index rose to 58.4 in February from 57 in January.

The manufacturing Purchasing Managers'' Index rose to 59 in February, the highest level since June 2000, from 57.3 in January. The services PMI advanced to 57.2 in February from 55.9 in January.

German Public Debt Surges, Business Confidence Improves

Germany''s public debt totaled nearly €2 trillion at the end of December, up €304.4 billion from December 31, 2009, provisional results from the Federal Statistics Office said today.

This represented an 18% increase annually and the steepest debt increase in absolute terms in any year since the introduction of statistics, the statistics office said.

Germany''s private sector growth in February was the strongest since June 2006, data from Markit Economics showed today.

The seasonally adjusted Markit flash composite output index rose to 61.5 in February from 61.3 in January.

German business climate index climbed to 111.2 in February from 110.3 in January, suggesting strong business conditions in the country.

French Private Sector Growth Improves

French private sector growth soared to a six-month high in February, boosted by services sector, survey data from Markit Economics showed on Monday. The flash composite output index rose to 59.5 in February from 57.6 in January.

Dutch Manufacturing Confidence Weakens, Home Prices Drop

Dutch industrial confidence deteriorated in February as producers'' assessment of their stocks deteriorated significantly.

The confidence index fell to 1.7 in February from 2.7 in January, the Central Bureau of Statistics said.

Dutch existing home prices fell 1.1% from the same period a year earlier in January following a 0.8% decrease in December, the Central Bureau of Statistics said on Monday.

Home prices were down 0.2% on a monthly basis in January, matching December''s performance.

A total of 8,000 homes were sold in the Netherlands during January, which is nearly 9% more than the sales recorded in January 2010.

Hungary Holds Key Rate

The Hungarian central bank on Monday left its key policy rate unchanged at 6%, as inflation moderated. In January, the central bank raised the key rate by 25 basis points to its current level.

Estonia PPI Rises

Estonia''s producer price index rose 5.5% annually in January compared to a 5.4% increase in December, latest data from Statistics Estonia showed on Monday.

Manufacturing producer prices climbed 6% and mining prices increased 0.5%. Producer prices for energy supply advanced 2.4%.

On a monthly basis, total producer prices increased 0.6% in January, the statistics agency said.

Affiliated Computer Services Acquires Unamic/HCN

Affiliated Computer Services, a Xerox Company announced an agreement to acquire Unamic/HCN, a privately-owned customer care provider in the Benelux.

The company''s focus on the Dutch-speaking market in the Benelux and an emerging Turkish market would expand ACS'' customer care capabilities in The Netherlands, Belgium, Turkey and Suriname.

Nordion Divests Belgian Operations

Nordion Inc., a leading provider of products and services to the global health science market signed a share purchase agreement with Best Medical Belgium for the divestiture of the company''s Belgian operations, MDS Nordion S.A.

Pursuant to the SPA, Best Medical will acquire all of Nordion''s Belgian operations with the exception of the TheraSphere business.

Gainers & Losers

Carlsberg A/S fell 0.45% to DKK 559.00 after the lager brewer said fourth quarter sales fell 1.6% to DKK 13.40 billion from DKK 13.62 billion in the fourth quarter of 2009. Profit in the quarter declined 21.4% to DKK.301 million from DKK 383 million the year before.

Essar Energy Plc gained 0.87% to 522.50 pence after the India-focused energy company entered into an exclusive agreement with Shell U.K., a part of Royal Dutch Shell Plc for the option to acquire Stanlow refinery and other related assets for about $350 million or £219 million in cash.

LyondellBasell Industries NV dropped 1.66% to $37.95 after the company engaged in the chemical industry reported fourth quarter sales rose 20% to $10.61 billion from $8.81 billion in the year-ago quarter. Net income generated in the quarter was $874 million or $1.54 per share compared with a net loss of $850 million in the year-ago quarter.

Merck KGaA surged 4.27% to €65.38 after the German pharmaceutical and chemicals company reported fourth quarter total revenues increased 25.5% to €2.55 billion from €2.03 billion in the comparable period a year ago, partly boosted by the acquisition of Millipore.

Net profit in the quarter declined 18% to €46.5 million or 0.21 euro per share from €56.7 million or 0.26 euro per share a year ago.

For fiscal 2010, total revenues increased 20% to €9.29 billion. Net profit grew 72.6% annually to €632.1 million or 2.91 euros per share.

Royal Dutch Shell Plc dipped 0.21% to 2,184.50 pence after the independent oil and gas company agreed to sell most of its stake in its downstream businesses in Africa to Vitol Group and Helios Investment Partners for about $1 billion.

TNT NV declined 2.15% to €20.01 after the Dutch mail company reported fourth quarter total revenues edged higher 0.8% to €1.22 billion compared with €1.21 billion in the previous year.

Profit in the quarter surged 404% to €126 million from €25 million last year. Earnings per ordinary share were 33.5 euro cents as against 6.3 euro cents in the year-ago quarter.