German Unemployment Risies; Carrfour Savings

123jump.com Staff
30 Jun, 2009
New York City

European markets edged lower after unemployment in Germany increased and French producer prices declined. Porsche will seek alternative sources of funding to refinance its

[R]7:00 PM Frankfurt, Paris; 2:00 PM New York – European markets edged lower after unemployment in Germany increased and French producer prices declined. Porsche will seek alternative sources of funding to refinance its €9 billion debts. Carrefour is looking to cut €4.5 billion in costs by 2012 and close six stores in southern Italy.[/R]

Market indexes in Germany and France declined after the rise in unemployment in Germany and a fall in producer prices in France. Inflation in the euro area in June is estimated to fall.

Euro area annual inflation is expected to fall 0.1% in June 2009 according to a flash estimate issued by Eurostat, the Statistical Office of the European Communities. Inflation was zero in May.

According to provisional results of the Federal Statistical Office, the number of persons in employment living in Germany amounted to 40.05 million in May 2009. Compared with a year earlier, the employment declined to 147,000 persons or 0.4%.

The number of unemployed people increased after seasonal adjustments by 31,000 to 3.5 million.

In May, French producer prices continued to go down 0.3% from April and 7.8% from a year ago, despite a rise in coke and refined petroleum products.

Gainers & Losers

Porsche SE increased 2.9% to 47.80 euros after the company said that the Qatar Investment Authority has offered to take a stake in the automaker and acquire convertible option for Volkswagen AG. Separately, the company said that it will not seek loan of 1.75 billion from government controlled bank KfW Group and seeks alternative sources to refinance its 9 billion euro debt.

Conergy AG increased 3.3% to 62 cents after the report in Die Welt quoted founder and former chief Hans- Martin Rueter saying that the company did not deliberately misrepresent financial statements and influenced the stock price.

Areva SA declined 2.2% to 415.54 euros after the company plans to increase capital base by 15% to finance its nuclear power plant business. Media reports in India suggested that the company is also exploring possibilities of selling stocks to companies in India.

Carefour SA declined 3% to 30.42 euros after the retailer plans to close down nearly half its stores in Southern Italy to six and focus on the northern Italy. The company opened its first store in Russia on June 18.

The company also said on the analysts’ day in Paris today that is plans to save 4.5 billion euros by 2012 and estimated operating profit to fall between 2.7 billion and 2.8 billion from 3.3 billion in 2008. Sales in the first half were estimated at 46 billion including VAT.

Europe Markets Review

In London FTSE 100 Index closed lower 44.82 or 1.04% to 4,249.21, in Paris CAC 40 Index decreased 53.24 or 1.67% to close at 3,140.44 and in Frankfurt DAX index lower 76.45 or 1.56% to close at 4,808.64. In Zurich trading SMI decreased 39.48 or 0.73% to close at 5,403.97.

DAX Index Movers

Volkswagen AG led the decliners in the DAX index of 3.95% followed by losses in Linde AG of 2.53%, in E.ON AG of 2.52%, in Deutsche Bank AG of 2.33%, in ThyssenKrupp AG of 2.26%.

Hannover Re AG led gainers in the DAX index with a rise of 1.47%, followed by increase in Merck KGaA of 0.88%, in Allianz SE of 0.178%, in Fresenius Medical Care AG & Co. KGaA of 0.16%.

CAC-40 Index Movers

Credit Agricole SA led the decliners in the CAC-40 index of 3.94% followed by losses in AXA of 3.81%, in EADS NV of 3.60%, in Bouygues SA of 3.35%, in Carrefour SA of 3.04%.

Alcatel Lucent gainers in the CAC-40 index with a rise of 1.19% followed by gains in Sanofi-Aventis of 1.01%, in PSA Peugeot Citroen S.A. of 0.13%, in Renault SA of 0.11%, in Pernod Ricard SA of 0.06%.

FTSE 100 Index Movers

Of the stocks in the FTSE 100 index, 26 increased, 74 declined and 2 were unchanged.

Randgold Resources Ltd. decliners in the FTSE 100 index with a loss of 3.14% followed by losses in Schroders plc of 3.07%, in Standard Chartered PLC of 2.98%, in Man Group Plc of 2.97% and in Anglo American plc of 2.73%.

Wolseley PLC led gainers in the FTSE 100 index with a rise of 2.84% followed by increase in Thomas Cook Group plc of 2.80%, in ICAP plc of 2.50%, in AMEC plc of 2.03%, in 3i Group plc of 1.89%.