(Updates with companies, snapshot table, detail)
LONDON, Oct 31 (Reuters) - European shares were set to open higher on
Friday, tracking overnight gains in the U.S. market on optimism that rate cuts
by central banks will help cushion a global economic downturn.
Financial bookmakers see Britain's FTSE <> up as much as 0.6 percent,
Germany's DAX <> up as much as 1.5 percent and France's CAC <> up as
much 0.9 percent.
U.S. stocks climbed overnight as investors snapped up shares trading near
their lowest levels in five years.
But gains in the European market were seen limited, as Japan's Nikkei
average <> dropped 5 percent on Friday. In the three-day rally to Thursday,
the Nikkei gained nearly 30 percent.
The Bank of Japan cut interest rates for the first time in seven years,
though the cut was by a split vote and was smaller than the market had expected.
Two leading German bankers called for joint action by the country's lenders
to make use of financial aid offered by the government in an effort to help
normalise the market. []
Earlier this month, the German government announced a 500 billion euro
($652.8 billion) bank rescue package to help restore confidence in the financial
system.
Commodity stocks will remain in focus, with crude prices falling about 2.8
percent, copper dropping nearly 4 percent and aluminium down 1.5 percent.
----------------------MARKET SNAPSHOT AT 645 GMT----------------------
LAST PCT CHG NET CHG
S&P 500 <.SPX> 954.09 2.58 % 24
NIKKEI <> 8,576.98 -5.01 % -452.78
MSCI ASIA EX-JP <.MIASJ0000PUS> 275.85 -0.50 % -1.38
EUR/USD <EUR=> 1.2738 -0.90 % -0.0116
USD/JPY <JPY=> 97.22 -1.40 % -1.3800
10-YR US TSY YLD <US10YT=RR> 3.914 -- -0.05
10-YR BUND YLD <EU10YT=RR> 3.783 -- 0.01
SPOT GOLD <XAU=> $733.75 -0.24 % -$1.75
US CRUDE <CLc1> $64.11 -2.80 % -1.85
-----------------------------------------------------------------------
* Wall St rallies on rate cuts, bargain hunting []
* Treasuries-Bond prices hurt by appetite for stocks []
* Yen rises as risk wariness remains []
* Oil drops 2 pct, below $65 after US GDP shrinks []
* Copper extends falls, heads for record monthly loss []
* Gold falls from 1-wk high on weak oil, demand fears []
* Nikkei down 5 pct after Bank of Japan trims rates []
* Asian shares fall, to post worst month ever []
COMPANIES
BARCLAYS <BARC.L>
Barclays is close to raising about 6 billion pounds ($9.8 billion) from a
number of potential investors and could announce details on Friday, a person
familiar with the matter said. []
NESTLE <NESN.VX>
French cosmetics group L'Oreal <OREP.PA>, in which Nestle holds a minority
stake, on Thursday cut its full-year sales forecast for the second time in three
months, hit by tougher trading conditions, and posted third-quarter sales that
came below forecasts. []
ROCHE <ROG.VX>
Biogen Idec <BIIB.O> said on Thursday it would help Genentech Inc <DNA.N>
develop an experimental cancer treatment that works through a similar mechanism
as their shared blockbuster Rituxan treatment for non-Hodgkins lymphoma.
GLAXOSMITHKLINE <GSK.L>
The drugmaker said it believes there is no liver safety issue with its
Avandia drug. []
L'OREAL <OREP.PA>
Cosmetics group cut its full-year sales forecast for the second time in
three months and posted third quarter sales that came in below forecasts. For
details, see [].
AIR FRANCE KLM <AIRF.PA>
Eight French unions called on Thursday for cabin crew to go on a five-day
strike to protest against a possible rise in their retirement age. For details,
see [].
FERROVIAL <FER.MC>
The construction-to-airports company reported nine-month core earnings down
10.2 percent after market close on Thursday, outpacing a Reuters survey
forecast. It didn't give any details on the sale process of its London Gatwick
airport. []
TELEFONICA <TEF.MC>
Spanish Labour Minister Celstino Corbacho plans to try to change the law if
the goverment can not legally stop Telefonica's job cut proposals, Expansion
reported citing the Minister.
BASF <BASF.DE>
The German chemicals company reported Q3 EBIT before special items of 1.568
billion euros, down 8.0 percent year-on-year and below market estimates at 1.72
billion, on sales of 15.772 billion euros. The company said it will do utmost
to match 2007 results in 2008 and that it is braced for tough environment.
[]
METRO <MEOG.DE>
Germany's biggest listed retailer released third-quarter EBIT that rose 6.3
percent to 361 million euros, ahead of market expectations of 352 million euros,
on sales that rose 6.7 percent to 16.343 billion euros, beating expectations ot
16.1 billion euros. []
MAN AG <MANG.DE>
MAN stuck to its forecast for a 2008 operating margin of just under 12
percent and said it expected orders to fall amid truck sector weakness.
It reported third-quarter operating profit rose to 422 million euros ($537.9
million) from 334 million a year earlier, in line with the average estimate of
421 million from a 11 anlaysts surveyed by Reuters. []
RWE <RWEG.DE>
The German utility was set to make a bid for a partnership with 6
billion-euro utility Essent before the deadline for offers expired on Wednesday,
a source with knowledge of the matter told Reuters.
CONTINENTAL <CONG.DE>
The German tyre and car parts maker reported third quarter adjusted EBIT of
341.9 million euros, below a Reuters poll average of 402 million euros, and says
a drastic slowdown in all markets is set to continue well into 2009.
Also, French peer Michelin <MICP.PA> lowered this year's guidance in
response to lower demand for its goods and services. The tire maker claims that
if current trend persists the full year operating margin will drop to 7.0-7.5
percent from the earlier envisaged 8.6 percent. []
VOLKSWAGEN <VOWG.DE>
The world's third-largest carmaker is expected to report slight growth in
third-quarter operating profit thanks to a continued improvement in its core VW
volume brand, a Reuters poll of analysts showed. Poll: []
Also, the company's premium unit Audi <NSUG.DE> reaffirmed on Wednesday it
still expects a rise in full-year revenue and earnings that reflects an increase
in sales to a record 1 million vehicles.
VOSSLOH <VOSG.DE>
The German rail equipment maker reported third-quarter EBIT of 39.8 million
euros, ahead of market expectations of 34 million euros, on sales of 312.2
million euros, versus analyst forecast of 293 million. []
HUGO BOSS <BOSG_p.DE>
German clothing retailer Hugo Boss cut its 2008 sales and earnings outlook
as a result of the general economic environment. It reported a 3 percent rise in
nine-month sales to 1.37 billion euros and an operating profit excluding
one-offs of 215.6 million euros.
AIXTRON <AIXGn.DE>
The German semiconductor equipment maker reported ninem-month earnings
before interest and tax (EBIT) of 25 million euros, up 53 percent year-on-year,
and confirmed its full-year guidance.
Related news []
DAIMLER <DAIGn.DE>
General Motors Corp <GM.N> and Cerberus Capital Management [] have
resolved the major issues in a proposed GM-Chrysler merger, but the final form
of any deal would depend on the financing and government support available,
sources familiar with the talks said on Wednesday. []
SIEMENS <SIEGn.DE>
The head of German engineering union IG Metall has said he will not accept a
wage rise of under 4 percent in negotiations now under way with employers.
[]
(Reporting by Joanne Frearson)
(joanne.frearson@reuters.com; +44 207 542 6437, Reuters
Messaging:joanne.frearson.thomsonreuters.com@reuters.net)
