European Stock-Index Futures Advance; Societe Generale May Rise

By Sarah Jones

Aug. 5 (Bloomberg) -- European stock-index futures advanced after Societe Generale SA reported earnings that beat analysts' estimates and oil prices retreated to a three-month low.

Societe Generale, France's second-largest bank, may gain. Air France-KLM Group will probably be active after Europe's largest airline reaffirmed its fiscal-year profit forecast on better-than-expected quarterly earnings. Swiss Reinsurance Co. might move after posting a 53 percent drop in profit. BP Plc may follow oil prices lower.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 18, or 0.6 percent, to 3,316 at 7:40 a.m. in London. The U.K.'s FTSE 100 Index might fall 13, according to CMC Markets.

``We are eyeing a mixed start'' in Europe, said Paul Webb, chief dealer at CMC Markets in London. ``With oil and the financial sector squarely in focus, there's certainly the potential for a choppy day.''

U.S. stocks fell for a third day yesterday as global energy and raw-materials stocks fell into bear markets, sparked by plunging commodity prices. Asian stocks dropped today.

Crude oil yesterday declined more than $3 to settle at $121.41 a barrel in New York, the lowest close since May 5. Copper tumbled to the lowest in more than six months in Shanghai as global stockpiles increased. Gold also tumbled to the lowest in almost six weeks.

Europe's Stoxx 600 has slumped 24 percent in 2008 as banks' credit losses and asset writedowns topped $480 billion worldwide and crude oil surged, prompting analysts to reduce earnings estimates.

Societe Generale

Societe Generale today reported a 63 percent decline in second-quarter profit to 644 million euros ($1 billion) after writedowns linked to the subprime contagion led to a loss at the investment-banking unit.

Earnings still exceeded the 550 million-euro median estimate of 13 analysts surveyed by Bloomberg.

Air France, Europe's largest airline, today said first- quarter profit totaled 168 million euros, beating analysts' estimates of 152 million euros.

Chief Executive Officer Jean-Cyril Spinetta reaffirmed his forecast of May that fiscal-year earnings before interest and taxes will drop 30 percent.

Profits at Stoxx 600 companies may drop 2.5 percent on average in 2008, according to projections tracked by Bloomberg. That's down from a forecast for 11 percent growth in January.

Swiss Re might be active after the world's second-largest reinsurer said profit dropped 53 percent to 564 million francs ($536.48 million) after 362 million Swiss francs of writedowns on credit-default swaps. That missed the 773 million-franc median estimate of 11 analysts surveyed by Bloomberg News.

Barclays

Barclays Plc may also move after the U.K.'s third-biggest bank agreed to sell its U.K. life insurance unit to Swiss Re for 753 million pounds ($1.5 billion) as it seeks to fund expansion in fast-growing overseas markets.

American depositary receipts of BP, Europe's second-biggest oil company, ended 1.1 percent below the close in London yesterday. Total SA, Europe's third-largest energy company, declined 1.2 percent from the Paris close.

Crude oil for September delivery fell as much as $1.41, or 1.2 percent, to $120 a barrel today in electronic trading on the New York Mercantile Exchange.

Adidas AG may rise after the world's second-largest sporting-goods maker reported a 12 percent increase in second- quarter profit to 116 million euros, beating analysts' estimates. The company also raised its forecasts for annual profit margins.

Carlsberg

Carlsberg A/S may advance. The Nordic region's largest brewer said second-quarter profit rose 36 percent to 1.42 billion kroner ($296 million) after April's joint takeover of competitor Scottish & Newcastle Plc with Heineken NV. That beat the 1.28 billion-krona median estimate of eight analysts surveyed by Bloomberg.

Diageo Plc, the world's largest liquor maker, may be active after the Wall Street Journal said in an opinion piece InBev NV, the beer maker that bought Anheuser-Busch Cos. for $52 billion, may consider acquiring distillers, including Diageo.

Legal & General Group Plc may also move after the U.K.'s third-biggest insurer posted a loss in the first half of 14 million pounds as stock-market declines wiped out investment returns. Operating profit still beat analysts' estimates and the company raised its interim dividend 7.5 percent to 2.01 pence.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.