Severe Weather in U.S., Europe, China

123jump.com Staff
06 Jan, 2010
New York City

Severe weather conditions affected lives in several countries from China, to Northern Europe to the U.S. Southeast. Crude oil, aluminum and orange juice futures contracts gained. Wholesale prices of electricity surged in France and Germany as temperatures drop to record lows.

[R]9:45 AM New York – Severe weather conditions affected lives in several countries from China, to Northern Europe to the U.S. Southeast. Crude oil, aluminum and orange juice futures contracts gained. Wholesale prices of electricity surged in France and Germany as temperatures drop to record lows.[/R]

Freezing weather continues to wreak havoc in much of Northern hemisphere. Severe weather in China, Northern Europe and eastern region of North America has hampered travel plans of millions of people, driven the energy demand higher and affected crop in Florida.

Airports and schools are closed in most of Southern England and Beijing is reporting coldest weather in more than four decades. Schools are also closed in Denmark, Ireland and many Eastern European nations.

Farmers are bracing for severe crop damage in the Central Plains as the combination of cold air and snow is likely to affect 500 million tons of crops.

Wholesale prices of electricity in Germany and France surged. German wholesale price increased to 50.45 euros a megawatt-hour and similar contracts in France soared 25% to 65 euros according to the data published on Bloomberg.

Industrial New Orders in EU Rise

Industrial new orders for EU16 area fell by 2.2% in October 2009, after an increase of 1.7% in September and in EU27 new orders decreased by 1.6% in October, after an increase of 1.4% in September.

Earnings Review

Synnex Corporation, the business process services company said fourth quarter revenues rose 5% to $2.2 billion from $2.1 billion a year ago. Net income in the quarter rose 15% to $30.3 million or 87 cents per diluted share compared to net income of $26.4 million or 80 cents per share a year ago.

Revenues for the fiscal year 2009 fell 0.3% to $7.72 billion from $7.74 billion a year ago. Net income for the year rose 10% to $92.1 million or $2.70 per diluted share compared to net income of $83.8 million or $2.52 per share a year ago.

Synnex Corporation ((SNX)) in the last one year traded as high as $33.02 in September 2009 and as low as $11.39 in January 2009. Based on the yesterday’s closing price of $32.09 the company has market cap of $1.08 billion.

The Mosaic Company, the fertilizer producer said second quarter sales fell 43% to $1.71 billion from $3.01 billion a year ago. Net income in the quarter fell 89% to $107.8 million or 24 cents per diluted share compared to net income of $959.8 million or $2.15 per share a year ago.

Marks & Spencer Group Plc, the retailer of clothing, food and home products said third quarter group sales rose 2.6% and comparable same store sales increased 0.8%.

Next plc, the clothing and houseware retailer said second half sales rose 4.6% and retail like-for-like including direct sales up 3.2% excluding direct up 1.6%. Total brand sales, excluding VAT increased 5.2%.

Full year forecast profit before tax was estimated between £490 million and £500 million. Earnings per share at profit of £490 million would be 180 pence, an increase of 15% from the last year.

The company expects for the fiscal 2011 retail like-for-like sales excluding direct sales to be between increase of 1% and a decline of 3%.

Sodexo SA, the catering services company said first-quarter sales fell 2.7% to €3.87 billion from €3.98 billion a year ago. The company confirms its Fiscal 2010 objectives in light of a first quarter in line with expectations, revenues maintained at same level as Fiscal 2009 and an operating profit of between €750 million and €770 million.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 49.62 or 0.46% to 10,731.45, and Hang Seng index in Hong Kong increased 137.09 or 0.62% to 22,416.67, and CSI 300 index in China lower 22.31 or 0.63% to 3,541.73. ASX 200 index in Australia decreased 2.90 or 0.06% to 4,921.40. The FTSE Bursa KL Composite index in Malaysia was higher 4.93 or 0.38% to 1,293.17.

The Kospi Index in South Korea increased 14.70 or 0.87% to close at 1,705.32. SET index in Thailand closed higher 3.62 or 0.49% to 735.73. JSE Index in Indonesia decreased 1.98 or 0.08% to 2,603.30. The Sensex index in India increased 14.89 or 0.08% to 17,701.13.

Europe Markets Review

In London FTSE 100 Index traded lower 9.55 or 0.17% to 5,512.95, in Paris CAC 40 Index decreased 0.15 or 0.00% to 4,012.76 and in Frankfurt DAX index traded higher 2.57 or 0.04% to 6,034.43. In Zurich trading SMI increased 3.82 or 0.06% to 6,583.08.