ADVFN III Morning Euro Markets Bulletin (February 6, 2013).

ADVFN III Morning Euro Markets Bulletin

Daily world financial news Wednesday, 06 February

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

Stocks undaunted ahead of central banks     Market Movers     techMARK 2,299.12 +0.56%     FTSE 100 6,316.00 +0.53%     FTSE 250 13,377.66 +1.02% The Footsie has begun the day with a moderate move higher, tracking overnight gains on Wall Street and in Tokyo. The latter came in response to news that Bank of Japan Governor, Masaaki Shirakawa, will step down on March19th, almost three weeks ahead of schedule, which some observers interpreted as favouring the new Prime Minister’s calls for a more aggressive monetary policy. All of the above comes ahead of tomorrow’s testimony by Mark Carney before the Treasury Select Committee and policy meetings at the Bank of England and the European Central Bank. Not to be lost sight of, investors are also watching what appear to be signs of division between France and southern Europe, on the one hand, and Germany and the UK on the other, ahead of tomorrow’s European Council. European leaders are expected to try to find an agreement on the European Budget for 2014-2020. Back in the UK, the Halifax house price survey this morning showed that house prices fell slightly in January, by 0.2% month-on-month, after reporting strong increases during the previous two months. Overall shop price inflation fell to 0.6% year-on-year in January after a reading of 1.5% in December, the lowest shop price inflation since November 2009, when it was 0.2%. FTSE 100: Keep the coming says Hargreaves In UK company news, financial service company Hargreaves Lansdown on Wednesday posted record revenues and profits for the last half of 2012 driven by a boost in client numbers. FTSE 100-listed metal mining company Eurasian Natural Resources has acknowledged that its aluminium division operated below capacity in the fourth quarter of the year, whilst production of saleable copper declined against the corresponding period in the previous year. Notwithstanding the above, the majority of Eurasian Natural Resources’ business areas saw growth in production and operating performance. Shares of Schroders are rising strongly following an upgrade out of analysts at Morgan Stanley, to overweight. Unilever, on the other hand, is leading losers this morning after going ex-dividend. ARM Holdings is off a tad following yesterday’s surge and after at least three brokers (Investec, UBS and JP Morgan) opted to retain their ‘neutral’ rating on the stock. RBS has announced that it is in late stage settlement discussions with regulators and that it will update the market ‘shortly’, although it sees significant penalties and sanctions. FTSE 250: WS Atkins trading 'in line' Engineering and product management consultancy Atkins on Wednesday said it was trading in line with expectations despite challenging market conditions. The FTSE 250 company has faced difficult trading conditions over the past three months, particularly in North America, according to a business update. International home emergency business HomeServe has reported that it expects its New Markets segment to report a fiscal year 2013 operating loss of approximately £5.5m, representing a 61.8% rise compared to the fiscal year 2012, when the business reported a £3.4m loss.

AIM/Small Cap Report

FTSE 100 - Risers Hargreaves Lansdown (HL.) 784.50p +6.81% Eurasian Natural Resources Corp. (ENRC) 359.80p +4.53% Schroders (SDR) 2,002.00p +3.04% Weir Group (WEIR) 2,075.00p +2.67% International Consolidated Airlines Group SA (CDI) (IAG) 220.10p +2.32% Kazakhmys (KAZ) 741.00p +2.14% TUI Travel (TT.) 306.70p +2.10% Polymetal International (POLY) 1,088.00p +1.97% Lloyds Banking Group (LLOY) 52.36p +1.71% IMI (IMI) 1,201.00p +1.61% FTSE 100 - Fallers Unilever (ULVR) 2,567.00p -1.16% ARM Holdings (ARM) 923.00p -0.86% BP (BP.) 466.25p -0.52% Rexam (REX) 465.90p -0.45% Rolls-Royce Holdings (RR.) 972.50p -0.26% Vodafone Group (VOD) 170.90p -0.20% Sainsbury (J) (SBRY) 331.00p 0.00% SABMiller (SAB) 3,185.50p +0.13% Smiths Group (SMIN) 1,223.00p +0.16% Morrison (Wm) Supermarkets (MRW) 252.30p +0.16% FTSE 250 - Risers ICAP (IAP) 363.90p +7.41% IG Group Holdings (IGG) 485.20p +4.01% Homeserve (HSV) 245.00p +3.77% Tullett Prebon (TLPR) 261.00p +3.74% New World Resources A Shares (NWR) 271.10p +3.67% Lonmin (LMI) 379.70p +3.24% Taylor Wimpey (TW.) 75.55p +3.14% easyJet (EZJ) 977.00p +3.00% Man Group (EMG) 93.45p +2.98% Petra Diamonds Ltd.(DI) (PDL) 112.00p +2.94% FTSE 250 - Fallers Victrex (VCT) 1,503.00p -2.21% Aberforth Smaller Companies Trust (ASL) 745.00p -1.65% Daejan Holdings (DJAN) 3,005.00p -1.15% RPS Group (RPS) 236.60p -0.92% Inmarsat (ISAT) 656.50p -0.68% Workspace Group (WKP) 326.30p -0.64% BH Macro Ltd. EUR Shares (BHME) € 19.52 -0.61% Bank of Georgia Holdings (BGEO) 1,352.00p -0.59% Menzies(John) (MNZS) 723.00p -0.55% Cable & Wireless Communications (CWC) 40.55p -0.54%

UK Event Calendar

FTSE 100 Euronext Dax perf CAC 40

INTERIMS Hargreaves Lansdown INTERIM DIVIDEND PAYMENT DATE Ashtead Group, Halma, Vodafone Group INTERIM EX-DIVIDEND DATE Cohort, Daejan Holdings, Ingenious Entertainment VCT 1, Ingenious Entertainment VCT 1 'C' Shares, Ingenious Entertainment VCT 1 'D' Shares, Ingenious Entertainment VCT 1 E Shares, Ingenious Entertainment VCT 1 F Shares, Ingenious Entertainment VCT 2, Ingenious Entertainment VCT 2 'C' Shares, Ingenious Entertainment VCT 2 'D' Shares, Ingenious Entertainment VCT 2 F Shares, Mattioli Woods, Penna Consulting, Puma High Income VCT , Puma Vct 8, Puma Vct VII, Stagecoach Group, Tricorn Group QUARTERLY EX-DIVIDEND DATE IBM Corp., JPMorgan Claverhouse Inv Trust, Unilever INTERNATIONAL ECONOMIC ANNOUNCEMENTS PMI Construction (GER) (08:55) Q3 Canaccord Financial Inc. Q4 GlaxoSmithKline, Virgin Media Inc., Wolfson Microelectronics FINALS GlaxoSmithKline, New Europe Property Investments, Virgin Media Inc., Wolfson Microelectronics IMSS Grainger SPECIAL EX-DIVIDEND PAYMENT DATE Rensburg AIM VCT AGMS Blackrock Income And Growth Investment Trust, LED International Holdings Ltd (DI), Redhall Group UK ECONOMIC ANNOUNCEMENTS BRC Shop Price Index (00:01) New Car Registrations (09:30) FINAL DIVIDEND PAYMENT DATE Edinburgh Worldwide Inv Trust FINAL EX-DIVIDEND DATE Noble Investments (UK), Victrex

US Market Report

Stocks Move Back To The Upside After Monday's Sharp Pullback After moving sharply lower over the course of the previous session, stocks showed a strong move back to the upside during trading on Tuesday. The gains nearly offset Monday's losses, although the major averages remained below last Friday's closing highs. The major averages pulled back off their best levels going into the close but remained firmly in positive territory. The Dow rose 99.22 points or 0.7 percent to 13,979.30, the Nasdaq jumped 40.41 points or 1.3 percent to 3,171.58 and the S&P 500 surged up 15.58 points or 1 percent to 1,511.29. The rebound by stocks came as some traders saw the sharp pullback that was seen on Monday as an opportunity to get into the markets following the recent rally. Buying interest was also generated by a private survey showing that growth in China's services sector hit a four-month high in January. The survey by HSBC and Markit Economics showed that the index of Chinese service sector activity rose to 54.0 in January from 51.7 in December, with a reading above 50 indicating growth. A separate report from the Institute for Supply Management showed that activity in the U.S. service sector continued to expand in the month of January, although the pace of growth slowed compared to the previous month. The ISM said its non-manufacturing index edged down to 55.2 in January from a revised 55.7 in December, with a reading above 50 indicating growth in the service sector. Paul Dales, Senior U.S. Economist at Capital Economics, said the modest drop by the non-manufacturing index was probably a result of the drag on retail spending from the payroll tax hike. "But this blow has been small and cushioned by stronger demand in other sectors, namely construction," Dales said. "This explains why the headline index is still consistent with a rebound in annualized GDP growth from the 0.1% fall in the fourth quarter to around a 2.5% rise in the first." News on the merger-and-acquisition front also contributed to the rebound by stocks, with Dell (DELL) moving to the upside after the computer giant agreed to be acquired by founder Michael Dell and private equity firm Silver Lake. Dell said the terms of the agreement call for its shareholders to receive $13.65 in cash for each share of Dell common stock they hold, resulting in a transaction valued at approximately $24.4 billion. Additionally, shares of Virgin Media (VMED) moved sharply higher after the British cable company confirmed that it is in talks with John Malone's Liberty Global (LBTYA) regarding a possible takeover. Virgin Media surged up by 17.9 percent on the day. Sector News health insurance stocks saw considerable strength throughout the trading session, resulting in a 2.4 percent gain by the Morgan Stanley Healthcare Payor Index. With the gain, the index reached a ten-month closing high. Centene (CNC) turned in one of the health insurance sector's best performances, advancing by 5.8 percent despite reporting a sharp drop in fourth quarter earnings. Significant strength was also visible among natural gas stocks, with the NYSE Arca Natural Gas Index rising by 1.7 percent to its best closing level in over a year. A notable increase by the price of natural gas contributed to the strength in the sector. Banking stocks also turned in a strong performance on the day, driving the KBW Bank Index up by 1.6 percent to a nearly two-year closing high. Bank of America (BAC) helped to lead the sector higher, jumping by 3.5 percent. Semiconductor, biotechnology, brokerage, and retail stocks also posted strong gains, reflecting broad based buying interest. Other Markets In overseas trading, stock markets across the Asia-Pacific region came under pressure on Tuesday following the overnight sell-off on Wall Street. Japan's Nikkei 225 tumbled by 1.9 percent, while Hong Kong's Hang Seng Index plunged by 2.3 percent. In the bond market, treasuries pulled back after ending the previous session notably higher. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 4.3 basis points to a nine-month closing high of 2.016 percent. Looking Ahead Amid a lack of major U.S. economic data, reaction to earnings news is likely to drive the markets during trading on Wednesday. Disney (DIS) is among the companies releasing their quarterly results after the close of today's trading, while Time Warner (TWX) is among those due to report before the start of trading on Wednesday.

Wednesday newspaper round-up

RBS, Virgin Media, BP... Royal Bank of Scotland was today expected to announce that the head of its investment bank, John Hourican, will leave the company and give up rights to around four million pounds-worth of share options. Hourican had been brought in to rescue the investment arm after the bank was bailed out by the UK government in 2008. A restructuring of the division, which employs 16,000 people, has paved the way for Hourican’s widely-expected departure after more than four years at the helm. [The Scotsman] The American billionaire known on Wall Street as the “swamp alligator” has confirmed his assault on the British market, announcing a takeover of Virgin Media worth $23.3 billion. The deal, which was announced earlier this morning, transforms John Malone’s Liberty Global into the world’s largest cable provider. The US cable giant said the agreement will create “the world’s leading broadband communications company” with 25 million customers in 14 countries. It a statement Liberty Global said the stock and cash merger, subject to shareholder approvals, was valued at approximately $23.3billion dollars (£15billion). The acquisition was expected to cost the American company at least £13 billion, including Virgin Media’s £5.5 billion of debt. [The Times] BP has been hit by a new $34bn (£21.7bn) claim for alleged economic losses and punitive damages resulting from the Deepwater Horizon oil spill in the Gulf of Mexico . The latest demand comes from local and southern state governments, including Louisiana and Mississippi, hit hard by the pollution that followed the blowout on the BP-operated Macondo well in April 2010. BP described the methodology for calculating the claims as "seriously flawed" and the oil company said it was confident it would not have to make additional financial provisions. [The Guardian] Marks & Spencer is planning to open standalone food stores in France after customers in Paris snapped up its British biscuits, jams and ready meals. Marc Bolland, chief executive, told investors at a presentation in Istanbul he had been “encouraged” by food sales in M&S’s two Paris flagship shops and that the British retailer is now in talks with potential franchise partners interested in expanding its Simply Food stores across France.[The Telegraph] China has pledged to increase minimum wages and force state-owned companies to hand over more of their revenues to the public as part of a push to tackle growing inequality. The chasm between China’s rich and poor is seen by analysts as a significant threat to political stability, with discontent over inequality spilling over into angry online comment and, on occasion, street protests. Unveiling a long-awaited 35-point income distribution plan on Tuesday, the State Council, or cabinet, said it wanted to lift as many as 80m people from poverty by 2015. It pledged to raise minimum wages to 40 per cent of average salaries, boost spending on education and public housing, and force state-owned companies to pay out an additional five percentage points of their revenues in dividends by 2015. [Financial Times] Britain's Royal Bank of Scotland is "in limbo" and should have been fully nationalised when it was rescued in the financial crisis, Business Secretary Vince Cable has said. Instead, the present government was saddled with the "worst of all worlds - responsibility without control" of a bank bailed out with £45bn of state money, Cable said in advance extracts of a speech released by his office. Cable, due to make the remarks at a London event, was expressing his exasperation at RBS, 82pc owned by the state but independent of ministerial control under the governance structure managing the state's investment. [The Telegraph] Claims management firms last year pocketed £7.4m of the compensation awarded to victims of the PPI mis-selling scandal who turned to the Financial Services Compensation Scheme (FSCS) because the firm they dealt with has gone bust. The FSCS said that consumers have needlessly handed £22m to claims firms since the scandal erupted, with the average person paying £960 of their compensation. In 2012, three-fifths of claims came from managers, despite the fact that consumers can claim direct for free. [The Independent] Bank chiefs could be forced by the Government to name and shame branch managers who refuse to lend cash to struggling small businesses. Vince Cable, the Business Secretary, will today challenge the banks to publish weekly information about their lending levels – right down to individual branches. And he will warn that ministers are prepared to legislate to require banks to release the information if they fail to do so voluntarily. [The Independent]