Deutsche Telekom, Ubisoft, BNP Paribas Gain

Mayank Mehta
05 Nov, 2009
New York City

The ECB left its key lending rate unchanged at 1% and indicated a gradual winding of various direct lending programs. Deutsche Telekom third quarter net profit rises 7.2%. Enel SpA third quarter net profit fell 43%. BNP Paribas third quarter profit rose 43%. Ubisoft SA surged on annual outlook.

[R]7:00 PM Frankfurt, 1:00 PM New York – The ECB left its key lending rate unchanged at 1% and indicated a gradual winding of various direct lending programs. Deutsche Telekom third quarter net profit rises 7.2%. Enel SpA third quarter net profit fell 43%. BNP Paribas third quarter profit rose 43%. Ubisoft SA surged on annual outlook.[/R]

The Bank of England left its key lending rate at 0.5% and the European Central Bank left its rate unchanged at 1%. U.S. Fed left its target rate between zero and 0.5% a day ago.

The ECB President Jean-Claude Trichet also indicated that emergency liquidity provided “are phased out in a timely and gradual fashion.”

Central banks around the world are in a concerted effort to keep interest rates low and continue the purchase of government issued bonds to pump liquidity in the market.

The Bank of England has completed the purchase of 175 billion of government bonds and increased it by 25 billion today. The Monetary Policy Committee also noted that capacity utilization is “underutilized” and “that will continue to bear down on inflation for some time to come.”

The pound edged higher to close at $1.657 and to close at €1.114.

In London FTSE 100 Index closed higher 41.56 or 0.81% to 5,149.45, in Paris CAC 40 Index increased 51.59 or 1.41% to close at 3,721.92, in Frankfurt DAX index higher 59.72 or 1.10% to close at 5,503.95. In Zurich trading SMI increased 29.49 or 0.47% to close at 6,296.60.

Stocks in Germany and France closed higher on earnings from Deutsche Telekom AG, Software AG, Munich Re, BNP Paribas SA, Ubisoft SA, Zurich Financial and Capgemini Group.

Gainers & Losers

Adecco SA the staffing services company said third quarter revenues fell 27.5% to €3.7 billion from €5.1 billion a year ago. Net profit in the quarter fell 46% to €90 million or €0.51 per diluted share compared to net profit of €168 million or €0.92 per share a year ago.

BNP Paribas SA rose 1.9% to €53.65 after the bank said third quarter revenues rose 41% to €10.7 billion from €7.6 billion a year ago. Net profit in the quarter rose 45% to €1.31 billion compared to net profit of €901 million a year ago.

Daimler AG fell 0.4% to €32.42 after the maker of luxury cars plans to cut 1,000 jobs at its Mercedes-Benz division by offering a variety of buyout packages to staff.

Deutsche Postbank AG dropped 3.5% to €21.51 after the financial services provider said third quarter net interest income rose 0.2% to €579 million from €578 million a year ago. Net profit in the quarter was €42 million compared to net loss of €349 million a year ago.

Deutsche Telekom AG increased 2.6% to €9.55 an integrated telecommunications provider said third quarter revenues rose 5.2% to €16.26 billion from €15.45 billion a year ago. Net profit in the quarter rose 7.2% to €959 million compared to net profit of €895 million a year ago.

Enel SpA fell 0.5% to €4.08 an electricity operator said third quarter revenues rose 7.5% to €17.2 billion from €16 billion a year ago. Net profit in the quarter fell 43% to €1.19 billion compared to net profit of €2.07 billion a year ago.

Fastweb SpA rose 2.8% to €20.12 after the telecom operator said third quarter revenues rose 4.4% to €446.1 million from €427.1 million a year ago. Net profit in the quarter was €12.6 million compared to net loss of €1.8 million a year ago.

Muenchener Rueckversicherungs-Gesellschaft AG fell 1.0% to €106.24 after the reinsurance company said third quarter gross written premium rose 11.8% to €10.4 billion from €9.3 billion a year ago. Net profit in the quarter was €644 million or €3.30 per diluted share compared to net loss of €3 million or €0.02 per share a year ago.

Pirelli & C Real Estate SpA added 0.5% to €0.53 said third quarter revenues fell 33% to €199.2 million from €296.5 million a year ago. Net loss in the quarter was €57.9 million compared to net loss of €12.9 million a year ago.

RWE AG the power producer dropped 1.0% to €58.66.

Siemens AG the engaged in electronics and electrical engineering decreased 0.5% to €61.03.

Zurich Financial Services AG an insurer said nine months net profit fell 21.4% to $2.2 billion compared to net profit of $2.8 billion a year ago.

DAX Index Movers

Commerzbank AG led the decliners in the DAX index of 5.00%, followed by losses in Muenchener Rue AG of 1.87%, in Infineon Technologies AG of 1.07%, in Allianz SE of 0.99%, Deutsche Lufthansa AG of 0.74%.

Metro AG led gainers in the DAX index with a rise of 4.19% followed by increase in Deutsche Telekom AG of 2.52%, in Bayer AG of 2.36%, in MAN SE of 2.16%, BASF SE of 2.07%.

CAC-40 Index Movers

Cap Gemini SA led the decliners in the CAC-40 index of 4.06%, followed by losses in Lagardere SCA of 2.68% in Alcatel Lucent of 1.02%, in Dexia SA of 0.93%, Pernod Ricard SA of 0.18%.

Michelin SCA gainers in the CAC-40 index with a rise of 4.39% followed by gainers in Schneider Electric SA of 3.72%, Carrefour SA of 3.57%, in BNP Paribas SA of 3.42%, in Bouygues SA of 3.06%.