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(AFX UK Focus)
2009-11-25 08:03
Glance-European Factors -- Shares set to open higher, data eyed |
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LONDON, Nov 25 (Reuters) - European shares are expected to rise on Wednesday after closing lower in the previous session, with positive Asian stocks and the Federal Reserve raising its expectations for U.S. growth in 2010 seen helping equities. Futures for the Eurostoxx 50 were up 0.7 percent, German DAX futures were 0.8 percent higher and French CAC futures were up 0.7 percent. In the publication of minutes from this month's FOMC meeting, Federal Reserve officials expressed confidence in the sustainability of the U.S. economic recovery. On Tuesday, U.S. stocks fell but losses eased after the Federal Reserve news, while Asian shares on Wednesday were mostly higher with the Nikkei average rebounding from a 4-month low. "Wall Street recovered well from early losses yesterday and although volumes may remain somewhat depressed -- a pattern that is going to continue as the US holiday weekend wind down continues -- once again the rally is showing that it's not dead yet," said Ben Potter, research analyst at IG Markets. Later in the session, investors will eye the first revision to UK third-quarter GDP figures, due out at 0930 GMT. Across the Atlantic, there will be a rash of data released this afternoon ahead of Thursday's Thanksgiving holiday, notably the PCE deflator, the Fed's preferred measure of inflation, new home sales and the final reading of the University of Michigan consumer sentiment numbers. European shares closed 0.7 percent lower on Tuesday after data showed the U.S. economy grew at a slower rate than forecast in the third quarter and home prices in the United States rose less than expected in September. The index has gained 57 percent since falling to a record low in early March and is up 22 percent for the year.
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ROYAL DUTCH SHELL The oil major's chief executive forecast that it would not need to borrow any more money if oil remains at around $70 per barrel, the Financial Times reported. Seperately, the Guardian reported that Shell's chief executive has called on governments to intervene in the carbon markets.
ING ING shareholders are expected to approve the breakup of the Dutch bank and insurance group and a 7.5 billion euro ($11.18 billion) rights issue on Wednesday, paving the way to pay back state support.
TESCO The supermarket is taking a subsidiary of Sports Direct International to court, the Daily Telegraph reported.
RETAILERS Sales of non-food ranges at British grocers are set to rise 40 percent over the next five years, a study said on Wednesday, piling pressure on specialist retailers already hit by recession and online competition.
UBS UBS rebuffed a report by ratings agency Standard & Poor's that ranked a measure of its capital adequacy among the lowest of its peer group. Switzerland has completed a tax review of 500 clients of UBS and is ready to share data with the United States in nearly all cases in line with an August deal that put an end to a bitter tax row.
POPULAR The cash-rich Spanish bank said on Tuesday it was keen to snap up assets in the restructuring of Spain's ailing saving banks and may also bid for Portugal's BPN..
BANKS Half of the losses suffered by banks could still be hidden in their balance sheets, more so in Europe than in the United States, the International Monetary Fund's chief, Dominique Strauss-Kahn, was quoted as saying on Tuesday.
NOVARTIS Swiss drugmaker Novartis has entered a licensing agreement with Incyte Corporation, giving it access to therapies to treat patients with life-threatening blood disorders and cancers. The bioreactors are empty and running just for show for now, but Novartis opened its first U.S. flu vaccine plant on Tuesday, the first in the country to make flu vaccines out of cells instead of eggs.
DAIMLER Daimler executive Rainer Schmueckle turned down an offer to head GM's Opel unit, Handelsblatt reported, citing sources close to Schmueckle. FRANCE TELECOM, SWISSCOM, TDC France Telecom SA says it and TDC agreed to merge Orange Switzerland and Sunrise. France Telecom to pay at closing 1.5 billion euros to TDC, to become a 75 percent shareholder. TDC will hold the remaining 25 percent.
AIRBUS The European planemaker faces an audit from PricewaterhouseCoopers as part of negotiations aimed at rescuing the troubled A400M military aircraft programme, sources familiar with the matter told Reuters. Talks on the future of the 20 billion euro ($29.81 billion) project are at a crucial stage as the EADS subsidiary seeks to avoid penalties for delayed delivery to seven European NATO countries. TELEFONICA, PRISA Telefonica's board is due to decide on Wednesday whether to buy 20 percent of Prisa's Digital+ pay-TV unit for around 425 million euros, newspaper Expansion reported.
REPSOL China's CNPC has revisited the idea of a $14 billion offer for control of the Spanish oil and gas group's YPF arm in Argentina, but Chairman Antonio Brufau is still pushing for an IPO of the unit, El Mundo reported, without naming sources. Repsol will hold a board meeting on Wednesday to approve a disputed dividend cut. Separately, workers at its La Pampilla oil refinery in Peru said on Tuesday they had started a two-day strike to pressure the company for better benefits and to end forced overtime. (Reporting by Joanne Frearson) Keywords: MARKETS EUROPE FACTORS (joanne.frearson@thomsonreuters.com; +44 207 542 2773, Reuters Messaging:joanne.frearson.thomsonreuters.com@reuters.net)
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