German Exports Improve 3.6%, Baxter to Buy Gambro for $4 Billion

Arthi Gupta
04 Dec, 2012
New York City

Euro zone industrial producer prices eased in October. German exports increased 3.6% in the third quarter. UK construction activity deteriorated and Spanish unemployment rose in November. Baxter agreed to acquire Swedish dialysis products maker.

[R]2:00 PM Frankfurt – Euro zone industrial producer prices eased in October. German exports increased 3.6% in the third quarter. UK construction activity deteriorated and Spanish unemployment rose in November. Baxter agreed to acquire Swedish dialysis products maker.[/R]

The European indexes edged higher and banks led the gainers and Baxter International agreed to acquire privately held Swedish dialysis products maker.

The euro area finance ministers agreed to release €39.5-billion to Spain to recapitalize its banks.

Nokia agreed to sell and lease back its head office building in Espoo, Finland for €170 million.

In economic news, euro zone industrial producer prices eased and German exports increased in the third quarter. UK construction activity worsened and Spanish unemployment rose in November.

In Paris trading, the CAC-40 Index rose 27.11 or 0.8% to 3,593.61 and in Frankfurt the DAX Index edged higher 23.61 or 0.3% to 7,458.64.

The yields on Spain’s benchmark fell 0.04 percentage point to 5.20%. Italian 10-year yields declined 0.04 percentage point to 4.39%.

OECD Area Inflation Climbs

Annual inflation in the OECD area rose 2.3% in October compared with 2.2% in September, according to latest data released today.

Energy prices accelerated to 5.4% in October; up from 5.1% in September while food prices remained broadly stable in October at 2.2%, up from 2.1% in September.

Excluding food and energy, the OECD annual inflation rate slightly increased to 1.7% in October.

Euro Zone Producer Prices Ease

Industrial producer prices rose 0.1% in both the euro area and the EU27 in October compared with September, according to estimates from Eurostat.

In September, prices increased 0.2% and 0.3% in the euro area and the EU27 respectively.

From a year ago, industrial producer prices gained 2.6% in the euro area and 2.5% in the EU27 in October.

German Exports Improve

German exports increased 3.6% to €275 billion in the third quarter compared with the same quarter a year earlier, data from the Federal Statistics Office showed.

German exports to countries outside the EU rose 9.9% to €122.3 billion. Their share in total German exports rose to 44.4% in the third quarter.

UK Construction Activity Falls

Business conditions in the UK construction sector deteriorated during November, a survey by Markit Economics and the Chartered Institute of Purchasing & Supply showed today.

The Markit/CIPS UK Construction Purchasing Managers’ Index fell to 49.3 in November from 50.9 in the previous month and its lowest level since August.

Separately, UK retail sales values rose 0.4% on a comparable basis from November 2011, when they were down 1.6% on the preceding year, according a survey by the British Retail Consortium. On a total basis, sales were up 1.8%, against a 0.7% rise in November 2011.

Spanish Unemployment Rises

Spain''s unemployment rose 1.54% or 74,296 to 4,907,817 in November from a month ago, data from the Labor Ministry showed today.

From a year ago, unemployment rose 11.02% or 487,355 people in November.

Baxter Acquires Gambro

Baxter International Inc. agreed to acquire Gambro AB, a privately held dialysis product company based in Sweden, for SEK 26.5 billion or approximately $4 billion.

The acquisition gives Baxter a comprehensive dialysis product portfolio, complements Baxter''s global home dialysis offerings, and positions the company to better meet the evolving needs of the large and growing dialysis market.

Nokia Agrees to Sell Head Office

Nokia agreed to sell and lease back its head office building in Espoo, Finland on a long-term lease to Finland-based Exilion for €170 million. The company estimates to complete the sale by the end of 2012.

Hillenbrand Completes Coperion Acquisition

Hillenbrand, Inc., the U.S.-based diversified industrial company completed its previously announced acquisition of privately held Coperion Capital GmbH for approximately €419 million or $545 million including the assumption of approximately €87 million of net debt and an estimated €100 million of pension liabilities.