European Markets Lower On Weaker Oil; Julius Baer, Ryanair in Focus

Sarla Buch
25 Jul, 2016
New York City

Cranswick agreed to sell its Sandwich business to Greencore. Julius Baer said first-half revenues rose 1.2%. LVMH agreed to divest Donna Karan Intl unit. L''Oreal plans to buy U.S.-based IT Cosmetics. Ryanair profit jumped 4% as fares and unit costs decline.

[R]4:00 PM Frankfurt – Cranswick agreed to sell its Sandwich business to Greencore. Julius Baer said first-half revenues rose 1.2%. LVMH agreed to divest Donna Karan Intl unit. L''Oreal plans to buy U.S.-based IT Cosmetics. Ryanair profit jumped 4% as fares and unit costs decline.[/R]

European markets struggled and broader indexes traded lower after energy prices edged down. Ryanair soared on positive outlook and William Hill surged on a takeover offer from a rival in London trading.

In London trading, FTSE 100 index slipped 34.55 or 0.5% to 6,694.65 and in Frankfurt the DAX index rose 29.42 or 0.3% to 10,177.11.

In Paris, CAC 40 index edged down 5.89 to 4,375.21.

In London and New York trading oil slipped as much as 1.8% on the rising global supply glut.

Cranswick Plc gained 1.8% to 2,375 pence after the U.K.-based sausage maker agreed to sell its Sandwich Factory Holdings to international convenience food maker Greencore Group Plc for £15 million.

Julius Baer Gruppe AG jumped 3.4% to 41.29 Swiss francs after the Switzerland-based private banking group said revenues in the first-half ending in June increased 1.2% from a year ago to 1.42 billion francs.

Net income in the period surged from a year ago to 362.1 million francs compared to 39.7 million and diluted earnings per share rose to 1.66 francs from 0.18 francs.

LVMH Moet Hennessy Louis Vuitton SE increased 1.4% to €144.25 after the France-based luxury goods maker agreed to divest its Donna Karan International, Inc., parent of the Donna Karan and DKNY brands to the U.S.-based G-III Apparel Group, Ltd for about $650 million, after the fashion conglomerate was unable to generate profitable growth from the unit.

The transaction is expected to close in late 2016 or early 2017.

L''Oreal SA rose 0.3% to €175.05 after the France-based cosmetic products maker is in acquisition talk with U.S.-based IT Cosmetics in a cash deal worth about $1.2 billion. The closing of the transaction is subject to regulatory approval.

Ryanair Holdings Plc surged 5.6% to €11.51after the Ireland-based low fare airline operator said revenues in the first-quarter ending in June advanced 2% from a year ago to €1.69 billion.

Net profit in the quarter jumped 4% from a year ago to €255.5 million compared to €245.1 million and diluted earnings per share increased to €19.90 from €17.81.

The airline said profit increased mainly due to passenger traffic in the quarter surged 11% to 31 million and load factor rose 2% to 94% while average fare dropped 10% to €39.92, offset by 9% reduction in unit costs.

William Hill Plc soared 6.4% to 333.50 pence after the U.K.-based gambling company received a merger offer from rival Rank Group Plc and 888 Holdings Plc.

The mobile sports betting services provider said it would ""listen to and consider"" any offer.