The general situation of the awards seems now to be closed circle. “The descent of a sector drags the other,” says Paola Brunelli, manager of Credit Suisse Asset Management, “To see a bounce it will take an exogenous factor, but difficult to detect. It could be the intervention of the government as France Telecom or new injections of liquidity, or finally tax reforms. But they are assumptions. However, if the season of the results to be better than expected, as happened at the end of the first quarter, then it reports confidence to investors. In this case evaluations of securities would be cheap compared to its historical context and therefore interesting. “
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The exploits of Repsol (+10%) and renewed confidence among investors are pushing on the maximum day the title of the six-legged dog. Eni is rising by 4% testing fee 16.80 euros even though volumes are lower than the daily average last month.
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Excellent show of force on the UK insurance sector, the sector remains the focus of investors after the scandal that hit telecoms giant WorldCom. At this time, Prudential earns 7% to 599 pence, CGNU up by 6.6% to 524 pence, Legal & General surplus of 4.8% at 131.5 pence, while Royal & Sun Alliance jumped ahead by 5.9 % to 252 pence.
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Shares of the French group Vivendi Universal collapsed ieir the Bourse in Paris, losing about a quarter of its value and sliding toward its lowest level in 13 years. Investors have penalized the title as concerned about the liquidity of the company after a complex series of financial transactions.
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“Given the uncertainty that hovers on the market and the sharp reassessment in recent days by Bipop, investors have rediscovered Banca di Roma. But in this case pushing downward.” And ‘this is the explanation that comes from a trader of a note that indicates sim Milan as arbitrageurs are doing “dance” the two titles. Bipop is preparing to close in upward of 1, 2%, while Bank of Rome gives 3.63%.
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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.
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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.
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Ron Sommer, CEO of Deutsche Telekom’s shareholders meeting this morning, the group confirmed the group’s intention of wanting to dramatically reduce corporate debt by, firstly, a real cleansing of the workforce . Will, in fact, 30,000 employees by 2004, will be laid off, specifies the manager adds that the cuts will occur mainly in the German subsidiaries of the group. The dismissals fall within the new strategy that aims to recover the Dt by 2005 about 10 billion euros. The additional investment impairments will cover the unit’s fixed nertworking, whose losses in the first quarter of the year have doubled. At this moment the title DT is gaining 2.25%.
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Expectations not quite positive for the quarterly Deutsche Telekom, which will be presented to the financial community tomorrow. “The situation of fixed telephony unclear (especially systems division), together with problems of T-Mobile’s subsidiary operating in the wireless industry, not militate in favor of the title,” said Simone Chelini, equity manager for Nextra, adding: ” I find some confusion even in numbers, due to changes in budgeted posts as a result of changes in activity in the various divisions. Then it will be impossible to compare ‘apples against apples’ and the confusion is not conducive to investment. ” Also on the front with little prospect of debt. “From the floor of divestitures do not expect much” continues Chelini. “The sale of property, announced as a sale for most pure, will be resolved in reality in a maxi-operation ’sale and lease-back’ (sales and contextual Re-renting) while reducing its debt load cost income statement . Even from cables, already put on sale, should get far less than estimated (something like 5 billion euros). I expect more weakness in that capacity until the summer. “Concludes Chelini.
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Click forward for the title of the bank led by neo at Corrado Passera. IntesaBci is in fact going up, 1, 53% with the action that has exceeded 3.30 euros thanks to the positive assessment of Morgan Stanley. Investment bank analysts have included IntesaBci’s list of favorite titles.
