* FTSEurofirst 300 down 0.7 pct
* Automakers slump on BMW warning
* Elan plummets 67 pct on Tysabri brain disease cases
By Patrizia Kokot
LONDON, Aug 1 (Reuters) - European shares were down early on
Friday, tracking hefty losses in global equities and weighed
down further by a profit warning from carmaker BMW <BMWG.DE> and
a 69 percent tumble in Irish drugmaker Elan <ELN.I>.
By 0807 GMT, the FTSEurofirst 300 index <> of top
European shares fell 0.7 percent to 1,171.62 points.
Carmakers were among the biggest losers after BMW followed
in rival Daimler's <DAIGn.DE> footsteps and issued a profit
warning, saying it would not reach its 2008 targets due to a
significant deterioration in business conditions.
The DJStoxx European automotive index <.SXAP> fell 2.7
percent, with BMW sliding 8 percent, Daimler <DAIGn.DE> falling
1.8 percent and Porsche <PSHG_p.DE> shedding 4.9 percent.
"It doesn't really surprise me since the euro is so strong.
The carmakers are all in the same boat here as they can't
export," said Mic Mills, a risk trader at TradIndex. A strong
euro makes exports out of Europe uncompetitive.
Irish drugmaker Elan plummeted more than 67 percent after it
notified regulators of two new cases of potentially deadly brain
disease in multiple sclerosis patients being treated with its
Tysabri drug.
Other disappointments included cement maker Lafarge
<LAFP.PA>, which lost 7 percent after it missed consensus with
its first-half operating profit.
Cheuvreux said estimate cuts on Lafarge were possible
following the results. In a note to clients, the broker said
operating margins in the second quarter were well below its
expectations and consensus.
Looking ahead, investors will be cautious ahead of the
release of U.S. non-farm payrolls data, due out at 1230 GMT,
after disappointing weekly jobless claims data released on
Thursday.
Economists polled by Reuters estimated that employers cut
75,000 jobs in July after losing 62,000 the previous month.
"We are expecting non-farm payrolls to be quite bad after
the figures we have seen yesterday. The ADP report was amazingly
good but looking at the figures yesterday, they were the worst
we have seen for a long time in that arena," Mills added.
OILS WEIGHS, AHOLD RALLIES AFTER Q2
Oil majors BP <BP.L>, Shell <RDSa.L> and Total <TOTF.PA>
lost between 0.5 and 1.4 percent, as crude fell to $123 a barrel
and Total reported a 20 percent rise in second-quarter adjusted
net profit that was slightly above analysts' average
forecasts.
"The results are not exceptional despite an exceptional rise
in oil," said a Paris-based trader.
Norwegian energy group StatoilHydro <STL.OL> lost 4.3
percent after it reaffirmed its production targets, which
analysts had hoped would be raised.
British Energy <BGY.L> fell 6 percent after it said it had
not agreed a takeover with an unidentified suitor, which sources
familiar with the matter said was French utility EDF <EDF.PA>.
EDF rose 0.2 percent.
EDF also reported a bigger than expected 2 percent rise in
half-year core earnings.
Ahold <AHLN.AS> shot to the top of the FTSEurofirst 300
after the Dutch supermarket group beat analysts' forecasts with
its second-quarter sales.
In a note to clients, Oddo Securities reaffirmed its "buy"
on the stock and said the results should reassure
investors, especially after the profit warning of peers Delhaize
<DELB.BR> and Supervalu <SVU.N>.
(Editing by Sue Thomas)
