French Inflation Flat, Spanish Home Loans Fall; Accor Falls, M

Arthi Gupta
23 Feb, 2011
New York City

The European indexes slid after unrest in Libya continued. Euro-zone industrial orders grew in December. Merkel hinted on an extension of Greece repayment period. French inflation index stays flat in January. Spanish mortgage approvals slumped in December. Accor and Commerzbank swing to profit.

[R]4:00 PM Frankfurt – The European indexes slid after unrest in Libya continued. Euro-zone industrial orders grew in December. Merkel hinted on an extension of Greece repayment period. French inflation index stays flat in January. Spanish mortgage approvals slumped in December. Accor and Commerzbank swing to profit.[/R]

World stocks traded sideways on increasing unrest in Tripoli. Rising crude oil prices impacted investor sentiment. Libya supplies nearly 1.5 million barrels a day of oil to Europe and nearly one third to Italy.

In a televised speech last night, Colonel Muammar el-Gaddafi threatened to track down and kill protesters ""house by house."" The UN Security Council on Tuesday condemned the Libyan leader’s crackdown on anti government protesters and demanded an immediate end to the violence.

In Paris CAC 40 Index gained 0.36 or 0.01% to close at 4,050.63 and in Frankfurt DAX Index edged lower 35.34 or 0.48% to close at 7,283.01.

Merkel Hints Reconsideration in Greece Repayment Period

German Chancellor Angela Merkel was quoted as saying on Tuesday that the European Union could consider extending the repayment period of Greece''s bailout loans.

Following a meeting with Greek Prime Minister George Papadreou, Merkel said Athens'' repayment terms are up for discussion. However, the chancellor insisted it could only be agreed as part of a wider reform package.

Euro Area Industrial Orders Grow

Euro-zone industrial new orders rose 2.1% on a monthly basis in December, following a revised 2.2% increase in November, the European Union statistics agency Eurostat said today.

French CPI Inflation Remains Unchanged

French consumer price inflation was at 1.8% in January, unchanged from December, latest data from the statistics office Insee showed today.

On a monthly basis, consumer prices declined 0.2% in January following a 0.5% rise in December.

Hungary''s Retail Sales Drop

Hungary''s seasonally and calendar adjusted retail sales dropped 0.7% on a monthly basis in December, the statistics office said on Wednesday.

On an annual basis, calendar adjusted retail sales fell by 1.7% in December, following a 0.3% decline in November.

In the whole of 2010, retail sales fell 2.3%, slower than a 5.1% drop recorded in 2009.

Spanish Mortgage Approvals Slump

The number of mortgage approvals extended for home purchases in Spain plunged 10.9% from the previous month to 39,400 in December, statistics office INE said on Wednesday. Compared to December 2009, mortgage approvals declined 17%.

Dutch Consumer Spending Improves

Dutch consumer spending on goods and services rose 1% annually in December, the Central Bureau of Statistics said on Wednesday.

Italian CPI Rises

Italian consumer price inflation index rose 2.1% annually in January following the 1.9% increase in December, statistics office Istat confirmed on Wednesday.

On a monthly basis, the CPI climbed 0.4% in January, unchanged from December.

Polish Jobless Rate Increases, Retail Sales Growth Eases

The unemployment rate in Poland advanced to 13% in January from 12.3% in December, the Central Statistics Office said today. The jobless rate increased for a third consecutive month. At the end of January, the number of unemployed persons amounted to 2.1 million, representing an increase of 7.7% from a month ago.

At the same time, growth in retail sales eased sharply to 5.8% annually at current prices in January from 12% in December.

Gainers & Losers

Accor SA fell 3.08% to €34.12 after the French hotel operator reported Wednesday fiscal 2010 consolidated revenue increased 8.4% to €5.95 billion from €5.49 billion in the prior year. Full-year profit was €3.6 billion compared to loss of €282 million last year mainly reflecting a gain of €4 billion from the spinoff of its services business.

A.P. Møller - Mærsk A/S gained 0.97% to DKK 52,300.00 after the largest container-shipping company stated full-year 2010 revenue rose 21% to DKK 315.4 million from DKK 260.34 million last year. Profit generated in the period was DKK 26.46 million compared to a loss of DKK 7.03 million last year.

centrotherm photovoltaics AG fell 1.43% to €33.20 after the German company engaged in the solar energy sector stated revenue for the full year 2010 grew 22.6% to €624.2 million from €509.1 million in the comparable period.

Commerzbank AG climbed 1.55% to $8.50 after the German bank reported fourth quarter gross revenues increased 16% to €12.7 billion from €10.9 billion in the prior year. Consolidated profit in the quarter was €257 million compared with a loss of €1.86 billion a year ago, driven by lower loan loss provisions and lower operating costs.

freenet AG climbed 1.16% to €8.86 after the communications provider said fiscal year 2010 revenues fell 7.2% to €3.34 billion compared to €3.60 billion last year.

Fresenius Medical Care AG & Co. KGaA declined 1.10% to €46.96 after the dialysis products and services provider said fourth quarter net revenues rose 4.3% to $3.17 billion from $3.03 billion in the preceding year. Net income in the quarter increased 10% to $271.34 million or 90 cents per share from $246.62 million or 82 cents per share in the prior year.

Koninklijke DSM N.V. dipped 1.10% to €42.68 after the company engaged in creating products and services in Life Sciences and Materials Sciences reported fourth quarter sales grew 18.2% to €2.08 billion from €1.76 billion in the comparable period a year ago. Net profit generated in the quarter was €149 million euros or 0.89 euros per share compared to loss of €60 million euros or 0.39 euros per share last year.

MTU Aero Engines Holding AG slumped 3.40% to €48.64 after the engine manufacturer reported fourth quarter revenues increased 9% to €715.1 million from €655.9 million in the prior-year quarter. Net income in the quarter declined 10.5% to €42.6 million or 0.87 euros per share from €47.6 million or 0.98 euros per share last year.

Swedish Match AB surged 5.56% to SEK 197.30 after the tobacco maker reported fourth quarter sales declined 21.1% to SEK 2.80 billion from SEK 3.55 billion in the previous year. Profit for the period surged 80% to SEK 1.07 billion or SEK 4.83 per share versus SEK 595 million or SEK 2.51 per share last year.

Telekom Austria AG edged lower 0.53% to €10.39 after the telecom services provider said fourth quarter revenues fell 0.8% to €1.17 billion compared to €1.18 billion in the prior year. Net income in the quarter declined 3.6% to €61.3 million compared to €63.6 million last year.