Optimism Prevails in Europe Ahead of the ECB Meeting

Lucy Stoeva
30 Nov, 2015
New York City

European markets inched higher. Aberdeen Asset Management loses

[R]4:00 PM Frankfurt – European markets inched higher. Aberdeen Asset Management loses £33.9 in net outflows for a year; BHP Billiton faces Brazilian dam-related charges of $5.2 billion; Anheuser Busch and SAB-Miller to divest two British brewer units.[/R]

European bourses edged up in anticipation of the European Central Bank policy meeting and additional stimulus steps for the euro zone.

The ECB is likely to extend its asset-purchase program and to further cut the deposit rate.

In October, ECB President Mario Draghi emphasized the central bank’s commitment to promote growth and inflation.

BHP Billiton limited gains in the U.K. after the Brazilian government announced that it would sue the mining giant and its local partner for $5.2 billion in damages for the dam failure earlier this year.

In London trading, FTSE 100 index rose 11.06 or 0.2% to 6,386.41 and in Frankfurt the DAX index jumped 125.73 or 1.1% to 11,417.88.

In Paris, CAC 40 index increased 41.14 or 0.8% to 4,971.21.

For the month, FTSE 100 index edged up 0.4% and the DAX index surged 5.2% and the CAC 40 index gained 1.5%.

Aberdeen Asset Management Plc slumped 4.3% to 320.58 pence after the Scotland-based investment manager reported that assets under management decreased 13% in the past year.

The company, which has large exposure to Asia and the emerging markets, reported net outflows of £12.7 billion in the fourth quarter due to the cyclical correction in Asian markets.

Annual net outflows reached £33.9 billion, while Aberdeen’s assets under management reached £283.7 at the end of September.

“We just need to wait for emerging markets to come back into fashion,"" said CEO Martin Gilbert.

The company raised its final dividend for the year by 7%.

Anheuser Busch Inbev SA gained 0.6% to €123.40 on the news that the Belgium brewery may divest two famous beer brands, Grolsch and Peroni, after buying its largest rival, South Africa and the U.K. based brewery SAB-Miller.

The sale of the two brands is an attempt to gain regulatory approval for the merger between Anheuser and SAB-Miller, which will create a giant in the beer industry.

Cranswick Plc jumped 3.9% to 1,765.85 pence after the pork and poultry products supplier said revenues in the first-half ending in September soared 9.9% from a year ago to £529.1 million.

Net profit in the period jumped 3.1% from a year ago to £19.8 million and diluted earnings per share edged up to 39.8 pence from 39 pence.

Net debt in the period dropped by £12.5 million to £4.8 million.

The company said net debt was just 1% of shareholders’ funds, compared to 7% in the same period a year ago.

Delta Lloyd NV plunged 11.3% to €6.72 after the company said it will raise €1 billion to meet new regulations for capital.

The Netherlands-based financial services provider said it would pay no final dividend this year.

KCOM Group Plc rose 0.3% to 96.75 pence after the U.K.-based communications services provider stated revenues in the first-half ending in September jumped 3% from a year ago to £177.9 million.

Net profit in the period increased 1% from a year ago to £19.1 million compared to £18.9 million and diluted earnings per share rose 3.73 pence from 3.66 pence.

The group will pay interim dividend of 1.97 pence per share, 10% higher from the previously announced and also said it plans to increase total dividend for the fiscal year in March by 10%.