Euro CPI Decline Pace Slows; Wendel Falls

Mayank Mehta
31 Aug, 2009
New York City

European markets declined after commodities fell on China worries. Banks in Ireland plunged on the worries that the government many pay less for the bad loans. Bertelsmann reported loss in the first half and estimated annual loss. The private equity firm Wendel declared loss in the latest quarter.

[R]7:00PM Frankfurt, Paris; 1:00 PM New York – European markets declined after commodities fell on China worries. Banks in Ireland plunged on the worries that the government many pay less for the bad loans. Bertelsmann reported loss in the first half and estimated annual loss. The private equity firm Wendel declared loss in the latest quarter.[/R]

Euro zone consumer price index decreased by 0.2% in August after falling at 0.7% rate in July according to the latest data from eurostat.

European markets edged lower after commodities declined on the fears that Chinese imports may decline as the economy slows.

In Paris CAC 40 Index decreased 39.60 or 1.07% to close at 3,653.54, in Frankfurt DAX index lower 52.74 or 0.96% to close at 5,464.61. In Zurich trading SMI increased 5.54 or 0.09% to close at 6,217.12. London exchanges were closed today.

Bertelsmann reported first half loss and estimated annual loss on asset write downs and third largest private equity listed firm in Europe, Wendel decreased after it reported first half loss.

Bank of Ireland Plc dropped 7.8% to €2.50 and Allied Irish Banks Plc fell 4.9% to €2.67 on the worries that Ireland government may pay less than earlier estimated for the purchase of bad loans of €90 billion.

Gainers & Losers

Aeroports de Paris SA decreased 2.3% to €59.75 after the airports operator said first-half revenues rose 6.6% to €1.29 billion from €1.21 billion a year ago. Net profit in the first-half rose 1.3% to €127.3 million or €1.29 per diluted share compared to net profit of €125.6 million or €1.27 per share a year ago.

Bertelsmann AG fell 0.3% to €139.50 after the media company said first-half revenues fell 6.5% to €7.2 billion from €7.7 billion a year ago. Net loss in the first-half was €368 million or €18.26 per diluted share compared to net profit of €284 million or €1.32 per share a year ago. The media company expects to declare annual loss on asset write down.

Deutsche Post AG fell 4.2% to €11.74 after the mail carrier was downgraded to “hold” from “add” at Commerzbank AG.

Deutsche Lufthansa AG slid 1.1% to €11.18 and German carrier and U.S. based JetBlue are planning to share flight reservation code.

Heidelberger Druckmaschinen AG sank 3.4% to €6.08 after the manufacturer of printing machines and Manroland AG are in merger talks. The printing companies may have to sell assets to win antitrust approval of German and European authorities according to a report on Bloomberg News.

Lagardere SCA added 0.8% to €30.69 after the construction and telecom company said first-half revenues fell 2.1% to €3.72 billion from €3.80 billion a year ago. Net profit in the first-half fell 27% to €318 million or €2.51 per diluted share compared to net profit of €572 million or €4.36 per share a year ago.

Orco Property Group SA declined 12.8% to €8.92 after the real estate company said first-half revenues rose 16.8% to €132.3 million from €113.2 million a year ago. Net loss in the first-half was €199.9 million or €18.26 per diluted share compared to net loss of €14.1 million or €1.32 per share a year ago.

Societe Generale SA the banking group slipped 1.2% to €56.07.

Wendel SA tumbled 7.3% to €32.88 an investment company said first-half revenues fell 1.2% to €2.46 billion from €2.49 billion a year ago. Net loss in the first-half was €959.8 million compared to net profit of €313.8 million a year ago.

DAX Index Movers

Salzgitter AG led the decliners in the DAX index of 2.58% followed by losses in K+S AG of 2.32%, in Thyssenkrupp AG of 2.314%, in Beiersdorf AG of 2.29%, in Deutsche Post AG of 1.95%.

Fresenius Medical Care AG led gainers in the DAX index with a rise of 2.15% followed by increase in SAP AG of 0.04%, in Muenchener Rue AG of 0.03%.
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CAC-40 Index Movers

Dexia SA led the decliners in the CAC-40 index of 3.76% followed by losses in Renault SA of 3.62%, in ArcelorMittal of 2.84%, in Credit Agricole SA of 2.49%, PSA Peugeot Citroen SA of 2.39%.

SA, GDF Suez SA, Electricite de Strasbourg SA

PPR SA gainers in the CAC-40 index with a rise of 1.22% followed by losses in Pernod Ricard SA of 1.17%, in Essilor International SA of 1.10%, in AXA of 0.54%, in Vivendi SA of 0.48%.