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Equity News
Sep 11 2008 12:03PM
European Factors -- Shares seen down as credit worries linger
 (Adds company items, futures; updates snapshot) 
    PARIS, Sept 11 (Reuters) - European stocks were set to fall in early trade 
on Thursday, losing ground for the sixth time in seven sessions, as lingering 
worries over the credit crisis overshadow the positive impact of the weakening 
euro on shares of exporters. 
    Heavyweight energy and mining stocks could find support in higher commodity 
prices. 
    At 0630 GMT, futures for the DJ Euro Stoxx <STXEc1>, for Germany's DAX 
<FDXc1> and for France's CAC <FCEc1> were all down by 0.2 percent. 
    The U.S. dollar rose to a one-year high against the euro on Thursday, while 
Asian stocks fell broadly, with banks among top losers on credit concerns 
fuelled by Lehman Brothers' <LEH.N> woes. 
    Lehman, fighting for its survival, unveiled a plan on Wednesday to shed weak 
assets and sell a stake in its funds business, but failed to announce any firm 
deals to raise desperately needed capital. 
    "The early release of Q3 earnings from Lehman Bros has done little to quell 
market concern over the stock and this is continuing to weigh across the sector 
as a whole," Matt Buckland, dealer at CMC Markets, wrote in a note. 
    ----------------------MARKET SNAPSHOT AT  0623 GMT----------------------  
                                         LAST        PCT CHG        NET CHG  
    S&P 500                  <.SPX>  1,232.04         0.61 %           7.53  
    NIKKEI                  <.N225> 12,102.50        -1.98 %        -244.13  
    MSCI ASIA EX-JP <.MIASJ0000PUS>    403.37        -2.79 %         -11.58  
    EUR/USD                  <EUR=>    1.3965        -0.06 %        -0.0009  
    USD/JPY                  <JPY=>    107.45        -0.30 %        -0.3200  
    10-YR US TSY YLD    <US10YT=RR>     3.643             --           0.01  
    10-YR BUND YLD      <EU10YT=RR>     4.076             --           0.00  
    SPOT GOLD                <XAU=>   $754.90         0.39 %          $2.90  
    US CRUDE                 <CLc1>   $103.35         0.75 %           0.77  
    -----------------------------------------------------------------------   
 * Wall St gains as energy, tech offset bank fears     [ID:nN10465894] 
 * Dollar hits 1-yr high vs euro; Asian stocks slide    [ID:nLB612851] 
 * Nikkei ends at 6-mth low, banks suffer after Lehman [ID:nTKG003037] 
 * Dollar bought back, hits one-year high vs euro        [ID:nT333435] 
 * NYMEX crude edges up slightly, after Weds fall        [ID:nSP67412] 
 * TREASURIES-Edge up in Asia on lingering credit worries [ID:nT86643] 
 * Gold up from 11-month low, physical buying supports  [ID:nSP289911] 
 * LME copper up 1 pct on supply fears, Shanghai chases [ID:nSP328060] 
    COMPANY ITEMS: 
    POSTBANK <DPBGn.DE>, DEUTSCHE BANK <DBKGn.DE>, DEUTSCHE POST <DPWGn.DE> 
    Deutsche Bank plans to buy 29.75 percent of Postbank from Deutsche Post and 
will have the right of first refusal to buy Post's remaining stake, German news 
paper Bonner-Generalanzeiger reported. [ID:nLA418720] [ID:nLA49402] 
    Related news [DBKGn.DE-RTRS], [DPWGn.DE-RTRS], [DPBGn.DE-RTRS] 
    DEUTSCHE BANK <DBKGn.DE> 
    Deutsche Bank Securities has agreed to pay a $575,000 fine for short-selling 
violations in the largest penalty to date from NYSE Regulation. [ID:nN10430416] 
Separately, Deutsche Bank has agreed to take a 40 percent stake in UFG Invest, 
the Russian investment management arm of UFG Asset Management, the companies 
said in a joint statement on Thursday. For details, see: [ID:nLB158578] 
    BG <BG.L> 
    UK gas producer BG Group <BG.L> said that after drilling at the Iara oil 
field in Brazil it now estimated the field could contain 3-4 billion barrels of 
recoverable reserves, confirming earlier comments by project partner Petrobras 
<PBR.N>. For details, see: [ID:nWLA9417] 
    AVIVA <AV.L>, ING <ING.AS>, FORTIS <FOR.BR> <FOR.AS> 
    Dutch financial services groups may have to take hundreds of millions of 
euros in provisions after Aviva's Dutch unit agreed to a compensation deal on 
Wednesday, analysts said. [ID:nLA283459] 
    EADS <EAD.PA> 
    CEO Louis Gallois said in statement the Pentagon's decision to postone the 
awarding of refuelling tanker contract would not have an impact on EADS's sales 
or EBIT as the contract was not included in plans. He said "we have a contract 
and will seek an appropriate conclusion to that contract". 
    For details, see: [EAD.PA-LEN-RTRS] 
    NOKIA <NOK1V.HE> 
    The world's largest wireless chip maker Qualcomm Inc <QCOM.O> said late on 
Wednesday that demand for 3G mobile technology was healthy, despite worries 
about a weaker U.S. economy, and business conditions had not changed since its 
July conference call. For more on the company, double click on [NOK1V.HE] 
    FRANCE TELECOM <FTE.PA> 
    The operator said its planned large roll-out of a very high-speed optic 
fibre network had been delayed until 2010 from 2009 due to regulatory 
uncertainties. For details, see: [FTE.PA-LEN-RTRS] 
    SANOFI AVENTIS <SASY.PA> 
    The new chief executive, former GlaxoSmithKline executive Chris Viehbacher, 
has as mission to change the strategy and make acquisitions in the field of 
vitamins, mineral supplement and other health foods, Les Echos newspaper said. 
    IBERDROLA <IBE.MC> 
    Spain's Iberdrola on Wednesday accepted the conditions imposed by the New 
York state regulator on its $4.5 billion takeover of U.S. utility Energy East 
Corp <EAS.N> and said the deal would be completed in a few days. [ID:nLA34763] 
    PPR <PRTP.PA> 
    The French retailer is holding a beauty parade of investment banks to help 
advise it on a possible sale of its furniture chain Conforama, magazine 
Challenges reported on its website on Wednesday. A PPR spokesman declined to 
comment on the report. 
    SANTANDER <SAN.MC>, UNION FENOSA <UNF.MC> 
    Santander and Union Fenosa are talking to Abu Dhabi investment firm IPIC 
over their stakes in Cepsa <CEP.MC> but have reached no deal on price, a source 
close to the matter said on Wednesday. For a story, click on [ID:nLA499865] 
    VOLKSWAGEN <VOWG.DE> 
    The German state of Lower Saxony would raise its VW stake to 25 percent if 
that was necessary to retain the state's blocking minority, state premier 
Christian Wulff said. For details, see: [ID:nLA407254] 
 (Reporting by Blaise Robinson; Editing by Paul Bolding) 
 (([email protected] ; +33 1 4949 5269, Reuters Messaging: 
[email protected])) 
  Keywords: MARKETS EUROPE FACTORS  
  Source:   

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