Citigroup Offers $3 B for Chinese Lender Stake

Elena
30 Dec, 2005
New York City

Asian-Pacific benchmarks finished mixed to lower, led by the Nikkei, down 1.4% on profit-taking. For the whole year the Japanese index gained 40.24%. Another loser of the session was Hong Kong''s Hang Seng, down 1.12% with a total gain for the year of 4.5%. India''s BSE advanced 0.7%. European stocks were also weak with the German DAX 30 and the French CAC 40 the biggest losers, down 1.1% and 1.2% respectively.

U.S. MARKET AVERAGES

U.S. stock futures indicated a lower opening of the last trading session for 2005, breaking the pattern set by the previous three sessions when markets opened in the positive, supported by some optimism. However, as light-volume trading is expected, market is likely to be volatile. On Thursday averages declined on another inversion of the Treasury yield curve and weak housing sector data.

U.S. stock futures decline is accompanied by losses in Asian and European markets. A closing out of positions, the recent strength in energy futures and light volumes were cited by traders as reasons for the declines.

Ahead of a 3-day New Year''s weekend, there are no major economic reports due out on Friday. Among the companies in focus today, Citigroup Inc. is reportedly leading a consortium offering $3 billion for a stake in Chinese bank Guangdong.

Google Inc. is reportedly being sued by Rates Technology Inc. over the patents it''s alleged to use for Voice-over-IP technology in Google Talk. The American-based company is seeking $5 billion in damages.

Intel Corp. and AT&T Corp. will be in focus over the new ad campaigns the companies are unleashing.

Dow Jones futures were recently down 30 points, S&P 500 futures fell 3.6 points, and Nasdaq 100 futures fell 4 points.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished Friday session mixed to lower. The Nikkei led the decliners, closing the half-day trade down 1.4% to 16,111.43 as investors locked in gains ahead of the extended New Year’s holiday. For the year the Japanese benchmark climbed 40.24%. Hong Kong’s Hang Seng slid 1.12% with a total gain for 2005 of 4.5%. Taiwan’s Weighted index fell 0.7%, while India’s BSE index rose 0.7%.

European stocks lost ground at mid-day, reflecting profit-taking on the last working day of the year and a weak close of U.S. markets overnight. The German DAX 30 lost 1.1%, the French CAC 40 slipped 1.2%, and London’s FTSE 100 declined 0.5%.

OIL, METALS, CURRENCIES

Crude oil slipped below $60 a barrel on profit-taking after a two-day rally. Light sweet crude for February delivery lost 43 cents to $59.89 a barrel. London Brent fell 47 cents to $58.08.

European gold traded mixed. In London gold rose to $513 per troy ounce, up from $512.50. In Zurich the precious metal declined to $512.85 from $517.03. In Hong Kong gold fell $2.50 to close at $514.40. Silver traded unchanged at $8.59.

The U.S. dollar gained against the euro, fell against other major currencies. The euro was quoted at $1.1829, down from $1.1840. The dollar bought 117.43 yen, down from 117.72. The British pound traded at $1.7235, up from $1.7225.

EARNINGS NEWS

Learning Tree International Inc. ((LTRE)), IT educational services provider, forecast Q4 revenue of $36.5 million, down 2% from the year-ago period. The company is to report a quarterly loss from operations of $400,000 to $600,000. Learning Tree announced its fiscal year results were reduced by one-time lease expenses of $800,000 related to the subleasing of space in its U.K. Education Center, and by $1.7 million of external costs relted to Sarbanes-Oxley compliance.

The Scotts Miracle-Gro Co ((SMG)), maker of lawn and garden products, forecast a widening loss for Q1 on a continued shift in the timing of retailer purchases. The company anticipates its loss for the period to be 15% to 20% greater than its loss of 75 cents a share in the year-ago period, missing analyst estimate of a loss of 75 cents a share. The increased loss in Q1 is the result of a continued trend by the company’s retail partners to take delivery of our products closer to the time they are purchased by consumers.