Portugal

Arthi Gupta
04 May, 2011
New York City

European indexes declined after weaker-than-estimated earnings. Portugal received EU-IMF bailout package of

[R]1:30 PM Frankfurt – European indexes declined after weaker-than-estimated earnings. Portugal received EU-IMF bailout package of €78 billion with conditions. U.S. sued Deutsche Bank alleging mortgage fraud. BMW quarterly net quadrupled and Siemens earnings soared.[/R]

Portugal''s Prime Minister Jose Socrates said in a brief television address made on Tuesday night that his government agreed to several conditions demanded by the European Union and the International Monetary Fund in exchange for a three-year bailout package worth €78 billion or $115 billion.

Portugal was the third European country after Greece and Ireland to seek a bailout during the past one year.

The consumer price index in the Organization for Economic Co-operation and Development area increased 2.7% annually in March, faster than February''s 2.4% growth. Energy prices advanced 12.4% in March, after increasing 10.2% in February. There was a 3.2% growth in food prices in March, while in February they rose 3.1%.

Euro-zone retail sales declined 1% in March following February''s 0.3% rise, Eurostat said today. The final composite Purchasing Managers'' Index for euro-zone rose to 57.8% in April from 57.6 in March, in line with flash estimate.

In Paris CAC-40 Index declined 14.84 or 0.36% to 4,082.00 and in Frankfurt DAX index edged lower 31.89 or 0.43% to 7,468.81.

U.S. Sues Deutsche Bank

The U.S. Department of Justice said on Tuesday it filed a civil mortgage fraud lawsuit against German lender Deutsche Bank AG, accusing the bank of repeatedly lying to be included in a federal program that insures home loans.

The lawsuit, which claims more than $1 billion or €675.4 million in damages, accuses the bank of choosing mortgages for the Federal Housing Administration''s program ''in blatant disregard of whether borrowers could make mortgage payments.’

Gainers & Losers

Alstom SA dipped 0.16% to €43.65 after the French machinery and equipment maker said fiscal year 2011 sales rose 6% to €20.92 billion from €19.65 billion in the prior year. Net income for the period plunged 62% to €462 million or 1.56 euros per share from last year''s €1.22 billion or 4.18 euros per share.

Bayerische Motoren Werke AG gained 0.71% to €63.82 after the German car manufacturer reported first quarter revenues grew 28.9% to €16.04 billion from €12.44 billion reported in the same quarter last year. Net profit in the quarter surged 273.5% to €1.21 billion or 1.84 euros per share from €324 million or 0.49 euros per share a year earlier.

BNP Paribas SA rose 2.75% to €54.92 after the French banking giant reported first quarter revenues grew 1.3% to €11.68 billion from €11.53 billion in the same quarter last year. Net income in the quarter rose 14.6% to €2.62 billion from €2.28 billion last year.

Daimler AG fell 0.12% to €51.59 after the German car corporation said that its April U.S. sales of Mercedes-Benz and smart USA vehicles combined grew 3.8% to 19,624 units from 18,908 units last year.

Fresenius SE & Co. KGaA climbed 0.61% to €71.40 after the German health care group reported first quarter Revenue increased about 9% to €3.96 billion from last year''s €3.64 billion. Net income in the quarter increased 45.5% to €128 million or 0.78 euros per share from €88 million or 0.54 euros per share in the prior year.

Linde AG dropped 1.23% to €120.75 after the German gases and engineering firm said first quarter Group sales rose 14.9% to €3.33 billion from €2.89 billion in the same quarter last year. Net earnings in the quarter gained 43.4% to €284 million or 1.67 euros per share from €198 million or 1.17 euros per share a year ago.

Siemens AG decreased 1.67% to €95.76 after the German industrial conglomerate reported second quarter revenue rose 7% to €17.72 billion from last year''s €16.52 billion. Net income in the quarter surged 89% to €2.84 billion or 3.20 euros per basic share in comparison with €1.5 billion or 1.70 euros per basic share last year.