failed attempts to rescue the German engineering company Babcock Borsig, bringing the fifth event of the insolvency in Germany for high profile companies. The creditor banks have been burned in the past when they tried to save the construction company Philipp Holzmann, did not want to risk again, given the current economic conditions.
Analysts at Deutsche Bank have issued a Buy rating on the British title Diageo, with a target price to 1,000 pence. The beverage companies continue to show good growth in both the United Kingdom and the United States. The German broker has estimated sales growth around 9-10%, while earnings per share should increase over the next 3 years. At this time, Diageo exchanges 811 pence a share (+0.7%).
European stocks are back to smiling. The positive closing of Nasdaq and the discourse on the health of the U.S. economy made last night by Alan Greenspan are snapping back on purchases and telephone technology stocks, the most downtrodden in the day of ieri.Piazza Affairs has opened so the upward 0.71% due to a good start STM, Tim, Mediolanum and Bipop. Step forward for IntesaBci General and despite both companies are exposed in WorldCom. In ground not, however, Snam Rete Gas and Lottomatica.
The current decline in the Nasdaq penalizes the New Market (-1.8% on Numtel), which starts at a minimum on the closing day. Very nervous, especially on smaller titles while most capitalized companies show a greater obligation. Evil, among others, Algol, Biosearch, Data Service, Datamat, Digital Bros, ePlanet, and Tecnodiffusione Vitaminic, all with decreases over 4%. Among the titles scattered positive stands still Freedomland, with volumes higher than average.
The uncertainty of world markets leads many experts still maintain a cautious view. “Our sentiment is quite negative in the short term,” said Stefano Vitali, manager Gestielle, “Despite the impact of the signs of recovery in the U.S. we see that companies are unable to increase their profits. Evaluations of Titles remain high and the same defense is no longer cheap. The market has no big reason to go up, except on the basis of some technical rebound. The weakness of the dollar could continue to fund other areas like Japan, which could go a little better ” .
The German antitrust authorities have launched an investigation into the electric utility Bewag in order to verify whether there was or was not an abuse of dominant position by the company. Bewag it is suspected of having applied tariffs are too high in relation to other companies for access to its distribution network.
Still in difficulty, the London Stock Exchange, which weighs in particular the negative performance of two big cap as mmO2 (-15.5%) and ARM Holdings (-12.4%). Henk Potts, investment manager at Barclays Private Clients, says that investors are still worried about the income prospects of the companies and the timing of an eventual recovery, while beginning to emerge as fears of future increases in interest rates. “It ‘hard to understand what will bring the market out of this impasse,” said Potts.
The confirmation of the operation of the buy back a billion does not seem to have much impact on Enel, which passes from hand to share 6.48 euros, down 0.34%, but with volumes below average. The deal was announced months ago, but not yet formally approved. If the buyback does not have warmed the hearts of the market, the reassurances about the future of Wind had no better luck. Franco Tato, who has chosen mobile phone provider for the farewell speech, he reiterated the targets achieved for a company that has emerged from start-ups and getting ready to come to net profit for 2005 and cash flow positive next year. Confirmed once again the important role of Wind in the Italian market, characterized by many companies in trouble and, according to the former administrator of opportunity to undermine the position of Telecom. The uncertainties are probably from the role of France Telecom, which is determined to alienate the participation and the market is dubious about the disbursement, coinciding also uncertainty about the quote, in fact postponed sine die.
It ‘takes the reaction of the fund Liverpool, managed by Gondon Singer, against the conclusions about the affair Consob Sai-land. The British company has issued a statement stating “strongly impressed that Consob has changed in a manner so blatant its assessment of the role that Mediobanca had in the purchase of shares by Fondiaria SAI and white knights.” Outrage at the lack of protection for minority shareholders: Liverpool holds 1% of the capital of La land. Participation could have a significant weight in the assembly of the company in Florence on 30 May when the votes were frozen cross as required by Italian law. Liverpool as it requests to Consob who shares the “White Knights” are locked in as “portage” in favor of Sai, real shareholder of the company itself among the shareholders of the Florentine group companies Ligresti. The court of Florence has not accepted this understanding, rejecting an old instance of some members from Tuscany. The moment the title La Fondiaria down by 6% to 4.85 euros. High ivolumi and equal three times the monthly average.
Sitting further increases in the shares of companies involved in property. A Piazza Affari, the titles of the group are Gabetti an increase of 4.80% to 3.82 euros on rumors of possible scaled to the company.
© 2010 Finance News