European Markets Up; Vivendi Drops 3%

Mayank Mehta
01 Feb, 2010
New York City

European market indexes closed higher. In a class action law suit in New York City, federal jury found Vivendi SA misled investors several times in three years to 2002. Russia

[R]7:00 PM Frankfurt, Paris; 1:00 PM New York – European market indexes closed higher. In a class action law suit in New York City, federal jury found Vivendi SA misled investors several times in three years to 2002. Russia’s gross domestic product shrank 7.9% in 2009 after crude oil prices plunged from its peak in 2008.[/R]

Vivendi SA declined 3% after a Manhattan federal court jury agreed with the class action law suit proponents that the media conglomerate misled investors 57 times between 2000 and 2002. The company is defending $9.3 billion damage lawsuit and said it will appeal the verdict.

UK home prices increased in January by 0.1% to 157,000 according to the latest data released by Hometrack Ltd. The sixth monthly increase in a row matched the previous month gain but prices declined from a year 0.8%.

Earlier the Bank of England data showed that number of mortgages approved in December declined unexpectedly to 59,023 from 60,045 in November. Weak jobs market is expected keep prices and home sales in check.

The Bank of England is scheduled to release its decision on Feb 4 regarding bond purchase plan of 200 billion pounds. The central bank may pause the purchase plan if the economic recovery is strong enough.

Russia’s gross domestic product in 2009 declined sharply in line with the volatility in the commodities and energy markets. GDP dropped 7.9% in 2009 after surging at 5.6% in 2008.

GDP declined 10.9% in the second quarter and shrank at 8.9% in the third quarter, according to the State Statistics Service. Russia has yet to publish fourth quarter data but private estimates suggest a decline between 5% and 6%.

The price of Ural Crude declined from a peak of $143 in mid 2008 to $32 by the year-end followed by 83% increase in 2009 wreaked havoc to Russia’s exports and its economy.

Household spending dropped 8.1% and fixed capital investment declined 18.2% in the year according to the latest data release.

In London FTSE 100 Index closed higher 58.89 or 1.14% to 5,247.41, in Paris CAC 40 Index increased 22.55 or 0.60% to close at 3,762.01, in Frankfurt DAX index higher 45.69 or 0.81% to close at 5,654.48. In Zurich trading SMI increased 55.61 or 0.86% to close at 6,496.33.

Gainers & Losers

Allianz SE the insurer slipped 0.4% to €80.08.

Asian Bamboo AG climbed 0.8% to €27.42 after the Chinese bamboo plantation operator announced that it has signed lease agreements for two bamboo plantations with a total size of 5,000 hectares.

Basilea Pharmaceutica AG the research and development biopharmaceutical company said full-year revenues rose 123% to CHF26.8 million from CHF12 million a year ago. Net loss for the full-year was CHF120.7 million or CHF12.61 per diluted share compared to net loss of CHF143.5 million or CHF15.02 per share a year ago.

Carrefour SA the retailer added 0.6% to €35.60.

Centrotherm Photovoltaics AG fell 2.9% to €39.31 after the solar panel equipment maker was downgraded to “neutral” from “outperform” at Credit Suisse Group AG.

Daimler AG rose 0.04% to €33.42.

Deutsche Lufthansa AG the global airline industry rose 1.0% to €11.74.

Inter Parfums SA advanced 2.5% to €18.00 after the company was upgraded to “overweight” from “neutral” at HSBC Holdings Plc.

Ipsen SA gained 2.3% to €39.80 after the drugmaker said fourth quarter group sales increased 8.2% to €255.3 million from €235.9 million a year ago.

Infineon Technologies AG rose 0.2% to €4.08 after the chipmaker doubled its 2010 sales growth forecast on Friday and posted better than expected first quarter results.

Manz Automation AG rose 4.8% to €63.43 after the solar-cell machine maker was upgraded to “outperform” from “neutral” at Credit Suisse.

Pernod Ricard SA dropped 1.5% to €57.40.

Ryanair Holdings plc the airline said third quarter total revenues fell 0.04% to €472.5 million from €472.7 million a year ago. Net loss for the quarter was 10.9 million or €0.74 per diluted share compared to net loss of €118.8 million or €8.06 per share a year ago.

Saft Groupe SA the battery maker rose 1.8% to €31.67.

Vivendi SA dropped 3% to €18.29.

DAX Index Movers

Henkel AG led the decliners in the DAX index of 2.62%, followed by losses in Merck KGaA of 0.94%, in MAN SE of 0.31%, in Metro AG of 0.23%, and in Beiersdorf AG of 0.15%.

Infineon Technologies AG led gainers in the DAX index with a rise of 4.10%, followed by losses in Commerzbank AG of 3.56%, in Volkswagen AG of 3.05%, in Deutsche Bank AG of 2.86%, and in Salzgitter AG of 2.01%.

CAC-40 Index Movers

Vivendi SA led the decliners in the CAC-40 index of 2.41%, followed by losses in Compagnie de Saint-Gobain SA of 1.68%, in Lafarge S.A. of 0.82%, in Lagardere SCA of 0.69% and in Sanofi-Aventis of 0.69%.

Renault SA gainers in the CAC-40 index with a rise of 3.08% followed by gainers in Michelin SCA of 3.07%, in Veolia Environnement of 2.56%, in ArcelorMittal of 2.21% and in Alcatel Lucent of 2.20%.