German GDP Slows to 0.1% Growth; Pernod Ricard Net Rises 10%

Arthi Gupta
01 Sep, 2011
New York City

European indexes slumped after euro area manufacturing activity fell to a 2-year low in August. German second quarter GDP was estimated at 0.1% increase. Imtech agreed to acquire Qbranch. Pernod Ricard net rose 10% driven by strong growth in emerging markets.

[R]1:00 PM Frankfurt – European indexes slumped after euro area manufacturing activity fell to a 2-year low in August. German second quarter GDP was estimated at 0.1% increase. Imtech agreed to acquire Qbranch. Pernod Ricard net rose 10% driven by strong growth in emerging markets.[/R]

In Paris, CAC-40 Index declined 35.09 to 1.09% to 3,221.67 and in Frankfurt DAX Index edged lower 94.65 or 1.65% to 5,690.35.

Imtech Acquires Qbranch

Imtech N.V., the Netherlands-based technical services provider said it is acquiring Swedish information and communication technology firm Qbranch, aiming a strong ICT position in the Nordic region.

The company noted that the acquisition will be paid in cash and will directly contribute to its earnings per share.

Optimum Coal Confirms Glencore Offer

Glencore International Plc, the Swiss mining and commodities trader expressed its interest to acquire a controlling stake in South African mining group Optimum Coal Holdings Limited, with ordinary shares of Optimum being valued at 34 Rand or $4.85. Glencore currently owns 14.1% of Optimum''s issued share capital.

The price represents a 35.9% premium to the 30-day volume weighted average Optimum share price on August 16.

Euro-zone Manufacturing PMI Drops

Euro-zone manufacturing activity declined in August to the lowest level since August 2009 and below the flash estimate, final data from Markit Economics showed today.

The final Markit Purchasing Managers'' Index fell to 49 in August from 50.4 in July.

Germany Economy Expands 0.1%

The GDP was unrevised for a sequential increase of 0.1% after increasing at 1.3% in the first quarter. The GDP expansion slowed considerably in the second quarter.

The inflation adjusted economic growth increased at 2.8% annual rate after expanding at 5% in the first quarter and the data were unrevised from the previous estimate.

Gainers & Losers

Iliad SA gained 2.63% to €85.75 after the French telecommunications and internet-services provider reported first-half net income fell 15.4% to €145 million from €171.4 million in the corresponding period of last year.

Lagardere SCA plunged 10.35% to €21.34 after the French publishing group stated that recurring media earnings this year will be 5% to 7% lower than last year.

Merck KGaA dipped 0.64% to €62.04 after the drugs and chemicals maker said it expects demand from Asia to drive its growth for its laboratory specialists Merck Millipore.

Pernod Ricard SA dropped 1.15% to €61.78 after the French beverage and wine maker said for the year ended June 30 net sales increased 8% to €7.64 billion from €7.08 billion in the prior year. Net profit increased 10.4% to €1.05 billion from €951 million in the previous year.

Siemens AG decreased 2.39% to €70.16 after the German industrial conglomerate agreed to join with Volvo Car Corp to advance the technical development of electric cars.