European Market Update

Daily Forex Fundamentals | Written by Trade The News | Oct 28 08 09:59 GMT |

Volkswagen leads DAX higher; risk appetite appears to have return for today

In equities: Honda Motors [HMC] Reported its Q2 Net ¥123.3B compared to estimates of ¥131Be. The company lowered its Group FY Net Profit view to ¥485B from ¥490B prior, Oper Profit view to ¥550B v ¥630B prior, Rev view to ¥11.60T v ¥12.17Te . Honda revised its global FY car sales outlook to 4.02M units v 4.08M prior || British Petroleum [BP.UK] Reported Q3 Net $8.05B above estimates of $7.02B. Revenues came in a bit below expectations with $104.8B versus $107.65B seen by analysts. Q3 CAPEX $8.9B while total CAPEX for the first 9-months was$23.7B. Q3 Production 3.66M BOE/day v 3/8M BOE/day q/q. CEO noted that oil prices could drop further due to a global recession. || Danske Bank [DANSKE.DE] Reported Q3 Net DKK1.1B compared to DKK3.64B year ago with revenues of DKK9.19B v DKK11.2B y/y. the bank lowered it FY08 outlook

Tom Tom [TOM2.NV] Reported Q3 Net Profit €58M in line with estimates of €58M but revenues came in light with €429M below estimates of €475M. Tom Tom lowered its FY08 sales outlook to €1.75B-€1.85B compared to consensus estimates of €1.93B and EBITA margin in range of 20% to 24%. It expected to sell 12 to13M PND's in FY08 below its prior view of 14-15M. Its Q3 Gross Margin came in at 56% v 51% estimates with an ASP of €136 compared to expectations of €127e. It noted that growing demand for navigation solutions despite weakening economy

Lastly the company added that it successfully renegotiated loan conditions (debts and covenants)|| )|| Volkswagen [VOW.GE] Huge short squeeze continues in firm following the weekend announcement that Porsche plans to up its stake to 75%. Shares opened 2008 and €151.35 and are now trading above €887.85, an increase of €736.50. At its new share price, VOW replaces Nestle as Europe's most valuable company by market cap. Stock continues to surge, up 90%.|| ][DPW.GE] Deutsche Bank will be investigated by regulatory authorities regading its sale of a unit to Deutsche bank || Aegon [AGN.NV] Secured a €3.5B of core capital from Dutch State and Guided its Q3 Net loss €350M. it added that it would not distribute final dividend. The core capital was secured from the Dutch State via its largest shareholder, Vereniging AEGON. it will issue 750M non-voting securities at €4/shr to Vereniging AEGON. ||USG People [USG.NV] Reported Q3 Net €32.7M below estimates of €35.6Me. its Rev €1.07B was in line ith consensus esti ates of €1.06B. The company noted it would implement staff cuts and added that its short term outlook in Europe continued to deteriorate. It stated that it would experience a rapid drop in Spanish and French staffing and focus remained on cutting costs || Biomerieux [BIM.FR: Reports 9-month Rev €799.3M, +7.4% y/y (at constant exchange rates), Maintains FY08 targets inline with prior expectations || TeliaSonera [TLSN.SW] Reports Q3 Net SEK4.77B v SEK4.90Be, Rev SEK25.8B v 25.8Be. it maintained their FY08 outlook as sales have remain stable. . || Publicis [PUB.FR] Reports Q3 Rev €1.11B v €1.12B y/y || Nomura [8604.JP] Reported Q2 Net Loss ¥72.9B larger than the loss ¥9.0B consensus estimates. Revenues were ¥357.7B compared to ¥420.7B y/y. || European bourses opened higher following late Asian rally. DAX opened +4.17% trading at 4512.22, CAC opened +2.17% trading at 3130.25, and the FTSE opened +2.67% trading at 3852.59. The DAX continues to outperform driven by the extraordinary trading taking place within VOW.GE. The FTSE remains positive up +20.9%. The CAC is off session lows and flirting with the unchanged mark down now only -0.04% from -1.25%. On the CAC, [BPN.FR] -6.17% is the leading lager on continued rumors of write downs and residual effects of the credit crisis.

Trade The News Staff
Trade The News, Inc.

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