In Europe Carlsberg, BNP Paribas, BMW Rise

123jump.com Staff
06 May, 2009
New York City

European markets focused on the earnings and global economic recovery. The service industry in Europe and in UK declined at a slower pace in April. The European Parliament passed the law to tighten regulations for banks and will require member nations to implement before 2011.

[R]8:00 PM Frankfurt – European markets focused on the earnings and global economic recovery. The service industry in Europe and in UK declined at a slower pace in April. The European Parliament passed the law to tighten regulations for banks and will require member nations to implement before 2011.[/R]

European market indexes gained as investors focused on positive earnings from few companies. A private measure of service industry showed improvement in April in Europe and in UK, helping the trading sentiment.

The European Parliament voted n favor to increase capital at banks, tighten lending supervision and require banks to keep 5% stake in loans that are securitized.

The passage of the bill will require 27 member countries to agree on stricter lending and will be enacted in the law by 2011. The bill was passed with a vote of 454 to 106.

World Bank said that it may lend billions of dollars to Russia and lowered its estimate of economic condition in the country. Russian economy is expected to shrink as much as 6% according to IMF and revised estimate from the World Bank from its previous read of 4.5% decline.

Weak natural gas and crude oil prices will dampen Russia’s exports and the government is expected to incur budget deficit of more than 7.5% in the current fiscal year.

Gainers & Losers

BNP Paribas added 7.3% to 45.29 euros after it reported smaller than expected profit decline of 21%.

Royal Ahold NV increased 6.4% to 8.77 euros after first quarter sales increased 15%.

Carlsberg surged 14% to Dkk 301.50 on better than expected operating income and the company reiterated its annual profit estimate. Net revenues in the quarter increased 25% to DKK 11.8 billion and beer volume increased 34%. For the year the beer maker forecasted net revenues of Dkk 63 billion and net income of Dkk 3.5 billion.

Gecina SA surged 17% to 52 euros after the office building landlord in Paris reported first quarter operating income increased 7.1% and gross rental income increased 5.5%. Cash flow before disposal and after tax increased 31.3%. The group generates 60% of its revenues from the office building rentals.

BMW increased 2.6% to 28.20 euros after it reported net loss in the first quarter of 152 million euros.

Earnings News

BNP Paribas SA, France’s largest bank said first quarter revenues rose 28.2% to €9.48 billion from €7.40 billion a year ago. Net profit in the quarter fell 21% to €1.56 billion compared to net profit of €2.0 billion a year ago.

BNP Paribas SA, in the last one year traded as high as €73.00 in October 2008 and as low as €20.66 in January 2009. Based on the yesterday’s closing price of €45.20 the company has market cap of €40.89 billion.

Bayerische Motoren Werke AG, the world’s biggest maker of luxury vehicles said first quarter revenues fell 13.4% to €11.5 billion from €13.3 billion a year ago. Net loss in the quarter was €153 million or €0.23 per diluted share compared to net profit of €485 million or €0.74 per share a year ago.

Deutsche Post AG, Europe’s biggest mail carrier said first quarter revenues fell 13% to €11.5 billion from €13.2 billion a year ago. Net profit in the quarter rose 146.5% to €944 million or €0.78 per diluted share compared to net profit of €383 million or €0.32 per share a year ago.

Henkel AG & Co, the personal care products maker said first quarter revenues rose 3% to €3.3 billion from €3.2 billion a year ago. Net profit in the quarter fell 47% to €117 million or €0.28 per diluted share compared to net profit of €219 million or €0.51 per share a year ago.

Swisscom AG, Switzerland’s largest phone company said first quarter sales fell 0.6% to Sfr 2.92 billion from Sfr 2.93 billion a year ago. Net profit in the quarter rose 13% to Sfr 485 million or Sfr 9.36 per diluted share compared to net profit of Sfr 428 million or Sfr 8.26 per share a year ago.

DAX Index Gainers & Losers

Of the stocks in DAX index, 21 increased and 9 declined.

Volkswagen led decliners in the DAX index with a loss of 4.5% followed by losses in Adidas AG of 4%, in Linde AG of 3.1%, in Hannover Rueckversicherung of 2.4%, and in E.On AG of 2.2%.

Metro AG led gainers in DAX 30 index with a rise of 8.2% followed by gains in Commerzbank of 5.4%, in Henkel AG of 4.6%, in Deutsche Lufthansa of 4.3%, in BMW of 3.5% and in Allianz SE of 3.4%.

Europe Markets Review

In London FTSE 100 Index closed higher 59.55 or 1.37% to 4,396.49, in Paris CAC 40 Index increased 58.51 or 1.81% to close at 3,283.51 and in Frankfurt DAX index higher 27.68 or 0.57% to close at 4,880.71. In Zurich trading SMI increased 38.33 or 0.73% to close at 5,319.26.