Wednesday, December 22, 2010

Europe Day Ahead: FTSE, Dax, CAC May Open Barely Unchanged

Rubber_Tree_proof[1]The following are today’s top stories for Europe:

EUROPEAN MARKETS London’s FTSE may open 4 points down at 5,948, the Dax index in Germany may also be 4 points down at 7,074, and France’s CAC 40 3 points off at 3,924, London Capital Group said.

TOP STORIES and MOST READ Banks Dumping JGBs as Only Europe Bonds Do Worse: Japan Credit

Japan’s banks, which bought record amounts of government debt as demand for loans dropped, are selling the bonds for the first time this year as prices tumble.

Europe Travel May Ease as Airlines, Rails See ‘Near-Normal’ Day

European travel may ease today as airlines and rail operators work to return service to more- normal levels after snow and ice grounded jets and snarled train lines for four days.

‘Young Bloods’ in Rush to Join South Korea Marine Corps’ Ranks

Anger at North Korea’s killing of civilians in an artillery barrage last month has spurred applications to join South Korea’s Marine Corps.

Deutsche Bank Admits Wrongdoing in Tax Case, to Pay $554 Million

Deutsche Bank AG, Germany’s largest bank, admitted criminal wrongdoing and agreed to pay $553.6 million to avoid prosecution in the U.S. over fraudulent tax shelters that generated $29 billion in “bogus” tax losses.

Deutsche Bank Bets Investors Will Choose Returns Over Capital

Deutsche Bank AG Chief Executive Officer Josef Ackermann may be betting concern about capital at the biggest banks will give way to a race for higher returns.

Deluge at Australian Coal Mines to Drive Gains in Global Prices

Record rain and floods in north eastern Australia are disrupting coal output from Xstrata Plc and Rio Tinto Group mines. With more storms coming, prices are forecast to jump from the world’s biggest exporter of the fuel.

Bulgari Gold Succumbs to Ceramics With Jewelry Hostage to Bubble

In June, Bill Doddridge flew his single-engine Cessna 400 to Twentynine Palms Airport near California’s Mojave Desert and headed for an abandoned mine, a .45-caliber pistol on his belt. He was looking for gold.

Carlyle Said to Near Takeover of Dutch Fund of Funds AlpInvest

Carlyle Group is nearing an agreement to buy AlpInvest Partners, a Dutch asset manager that has invested more than 40 billion euros ($52 billion) for clients in private-equity funds, according to three people with knowledge of the discussions.

Banks Best Basel as Regulators Dilute or Delay Capital Rules

More than 500 representatives from 27 nations, including top regulators and central bankers, met dozens of times this year to hammer out 440 pages of new rules to govern the world’s banks.

Spain Power Debt Infects Enel With Sovereign Woes: Euro Credit

Europe’s spreading sovereign debt crisis is making it tougher for Spain to pay electricity bills, and that’s infecting corporate bonds beyond its borders.

Buyout Loans Increase as Banks Chase M&A Fees: Credit Markets

Loans to finance acquisitions in Europe, the Middle East and Africa jumped to a three-month high as banks seek to capitalize on an increase in takeovers.

British Sky, Deutsche Bank, KBC, LVMH: European Equity Preview

The following companies’ shares may have unusual moves in European trading. Stock symbols are in parentheses, and prices are from the previous close.

U.K. Housing Shortage Will Limit Price Drop in 2011, RICS Says

U.K. house prices may extend their drop into 2011 before “stabilizing” as a supply shortage helps to limit declines, the Royal Institution of Chartered Surveyors said.

Scots Seeking Secure Yields Say Politics Top Economics in 2011

Whether divining Chinese interest rate policy, worrying about U.S. government finances or valuing Spanish bonds, strategists in Edinburgh say one thing is clear about next year: politics trump economics.

Bloomberg Sues ECB to Force Disclosure of Greece Swap Documents

Bloomberg News filed a lawsuit against the European Central Bank, seeking to make it disclose documents showing how Greece used derivatives to hide its fiscal deficit and helped trigger the region’s sovereign debt crisis.

MAIN COMPANIES British Sky, Deutsche Bank, KBC, LVMH: European Equity Preview

The following companies’ shares may have unusual moves in European trading. Stock symbols are in parentheses, and prices are from the previous close.

MARKETS Treasuries Drop as Reports May Show Home Sales, GDP Quickening

Treasuries fell, extending their biggest monthly loss in a year, before U.S. reports today that economists said will show existing-home sales and gross domestic product increased.

Yen Falls Versus Euro, Snaps 5-Day Gain, as Asian Stocks Rally

The yen weakened against the euro, snapping a five-day gain, as Asian stocks advanced amid optimism the global economic recovery is gathering momentum, reducing demand for safer assets.

Rubber Climbs to Record as U.S. Recovery Raises Demand Outlook

Rubber climbed to a record for a fourth day as signs the economic recovery in the U.S. is gaining strength stoked speculation that demand will expand, while higher oil prices boosted the cost of making rival synthetic products. The Thai cash price also gained to an all-time high.

Oil Rises a Fourth Day On Speculation U.S. May Spur Fuel Demand

Crude rose for a fourth day as signs of U.S. economic recovery stoked speculation that fuel demand will increase in the world’s largest oil consumer.

(Source: http://www.bloomberg.com/news/2010-12-22/europe-day-ahead-ftse-dax-cac-may-open-barely-unchanged.html)

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