European StockIndex Futures Gain; BHP Rio SocGen May Rise
European Stock-Index Futures Gain; BHP, Rio, SocGen May Rise
By Adria Cimino
Feb. 12 (Bloomberg) — European stock-index futures
advanced, following gains in U.S. and Asian equities. BHP
Billiton Ltd. and Rio Tinto Group will probably follow metals
prices higher.
Societe Generale SA may rally after UBS AG recommended
buying shares in the French company that last month reported the
worst trading loss in banking history. Sanofi-Aventis SA,
France;s largest drugmaker, may increase after profit beat
analysts; estimates.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark
for the euro region, added 36, or 1 percent, to 3,730 at 7:42
a.m. in London. The U.K.;s FTSE 100 Index may increase 33,
according to Cantor Index, a betting firm.
Bank of America Corp., Citigroup Inc. and four other U.S.
lenders will announce new steps today to help some borrowers in
danger of default stay in their homes, according to three people
familiar with the plans.
“It;s important that they are trying to stop it spreading
to the real economy,;; said Mark Tinker, a fund manager at Axa
Framlington Ltd. in London, which oversees $785 billion. “We
have got to get the economy moving and this is one part of it.;;
Encouraged by Treasury Secretary Henry Paulson, the banks
will offer a 30-day freeze on foreclosures while loan
modifications are considered, two people said on condition of
anonymity.
Stocks rose yesterday in the U.S. as a rally in oil prices
boosted energy shares, sending the Standard %26amp; Poor;s 500 Index up
0.6 percent. Asian stocks advanced today for the first time in
three days.
Recession Bets
The Stoxx 600 has lost 14 percent this year as a housing
contraction and slumping payrolls and auto sales spurred
economists to raise the odds of a recession in the U.S. to 50
percent.
Federal Reserve Bank of St. Louis President William Poole
said yesterday that the U.S. will probably avert a recession and
that the Fed;s interest-rate policy is appropriate for the
slowing economy.
BHP, the world;s biggest mining company, added 3 percent in
Australia, while Rio Tinto, the third largest, jumped 5 percent.
Copper and lead rose on the London Metals Exchange.
“Mining stocks could continue to edge higher amidst rising
commodity prices,;; Matthew Buckland, a trader at CMC Markets,
wrote in a note.
Societe Generale was raised to “buy;; from “neutral;; at
UBS.
“Weak first-quarter results could be indicative of a
damaged franchise and again spark merger and acquisition
speculation,;; the analysts wrote. “A strong first-quarter
result would imply no damage to the franchise and could lead to
earnings-per-share upgrades.;;
Sanofi, Credit Suisse
Sanofi said fourth-quarter net income rose 6.2 percent to
1.46 billion euros ($2.12 billion), surpassing analysts;
estimates, on a resurgence of sales of the Plavix blood-thinner
and savings from job cuts.
Sales declined 6.4 percent, more than analysts expected. The
company proposed an 18 percent increase in its dividend to 2.07
euros a share.
Credit Suisse Group, Switzerland;s second-biggest bank, said
fourth-quarter profit fell 72 percent on lower earnings at the
securities unit after writedowns of 1.3 billion Swiss francs
($1.2 billion) on debt and loans. Profit was 1.33 billion francs,
less than analysts; estimates.
Sonntag newspaper reported on Feb. 10 that net income was
“about 1 billion francs,;; citing unidentified sources.
Tele, Elisa
Tele AB, Sweden;s second-largest telephone company, reported
a surprise loss in the fourth quarter because of charges tied to
an interconnection dispute and stock-option expenses at a foreign
subsidiary.
Elisa Oyj, the biggest telephone company in Finland by
subscribers, said fourth-quarter profit fell to 50.1 million
euros ($72.8 million) on higher financial costs. Analysts
predicted a profit of 52 million euros.
Technip SA, Europe;s second-biggest oilfield-services
company, was downgraded to “neutral;; from “overweight;; at
JPMorgan Chase %26amp; Co.
“Company-specific disappointments have compounded the
market;s risk aversion toward the oil-services companies, and
shortened its horizon significantly,;; analysts including London-
based Tao Ly wrote.
To contact the reporter on this story:
Adria Cimino in Paris at
