EU in Greece Bailout; Credit Suisse Net Profit

123jump.com Staff
11 Feb, 2010
New York City

European markets traded higher and the euro stabilized after the EU leaders suggested a deal to support Greece will be soon announced but under tough conditions. No details were released. Total SA fourth quarter sales fell 6.5%. Credit Suisse swings to quarterly profit.

[R]9:50 AM New York – European markets traded higher and the euro stabilized after the EU leaders suggested a deal to support Greece will be soon announced but under tough conditions. No details were released. Total SA fourth quarter sales fell 6.5%. Credit Suisse swings to quarterly profit.[/R]

European Union leaders said little during a break at a summit in Brussels that at least for now calmed financial markets and stabilized the euro. But the questions of conditions of the Greek bailout remained in questions.

Greek bonds gained and the euro traded nearly unchanged at $1.372 after the EU President Herman Van Rompuy told reporters that members nations will take a determined and “coordinated action” to maintain financial stability in the “euro area as a whole.”

The statement though vague left an impression with investors that certain conditions of the Greek bailout have been worked out that at least for now will provide a temporary relief to Greek government.

Before the summit, Angela Merkel, Chancellor of Germany issued a statement that stressed that any deal involving Greece will be structured under the framework of regional “rules and these rules must be adhered to.”

EU leaders are expected to provide additional details after the two-day meeting of finance ministers in Brussels that ends on Feb 16.

European market indexes edged higher on a cautious optimistic note that a deal to support Greece will avert future speculative attacks on Spain and Portugal.

European Earnings Review

Credit Suisse Group AG, the global financial services company said fourth quarter net profit was CHF793 million compared to net loss of CHF 6.02 billion a year ago.

Danone SA, the bottled water and baby nutrition maker said full-year sales rose 1.6% to €14.98 billion from €15.2 billion a year ago. Net profit for the full-year rose 4% to €1.36 billion compared to net profit of €1.31 billion a year ago.

Diageo plc, the global drinks giant said first-half revenues rose 2% to £5.2 billion from £5.1 billion a year ago. Net profit for the first-half fell 10% to £1.02 billion compared to net profit of £1.13 billion a year ago.

Renault SA, the manufacturer of automobiles and related services said full-year revenues fell 10.8% to €33.7 billion from €37.8 billion a year ago. Net loss for the full-year was €3.07 billion or €12.13 per diluted share compared to net profit of €599 million or €2.22 per share a year ago.

Rolls-Royce Group plc, an aerospace and engineering company said full-year revenues rose 15% to £10.4 billion from £9.08 billion a year ago. Net profit for the full-year was £2.22 billion or 119.09 pence per diluted share compared to net loss of £1.34 billion or 73.63 pence per share a year ago.

Total S.A., an integrated international oil and gas company said fourth quarter sales fell 6.5% to €36.2 billion from €38.7 billion a year ago. Net profit for the quarter was €2.07 billion or €0.92 per diluted share compared to net loss of €794 million or €0.36 per share a year ago.

Europe Markets Review

In London FTSE 100 Index traded higher 49.05 or 0.96% to 5,181.04, in Paris CAC 40 Index increased 24.59 or 0.68% to 3,660.20 and in Frankfurt DAX index traded higher 17.57 or 0.32% to 5,553.94. In Zurich trading SMI increased 75.09 or 1.19% to 6,409.08.