…. who made it and who was in on it????
Okay folks– just for the sheer sake of jumpstarting your nervous system today. Read this report. I promise you that in it you will discover one sentence that will make you pause your breath for a second– and then you will think “ How did I not already figure that was coming”. What a deal folks, what a deal!!!!!!!!!!!
European Stocks Climb for Sixth Day; BMW, BP Shares Advance
July 13, 2010, 12:14 PM EDT
http://www.businessweek.com/news/2010-07-13/european-stocks-climb-for-sixth-day-bmw-bp-shares-advance.html
July 13 (Bloomberg) — European stocks climbed for a sixth day to a three-week high as Alcoa Inc. began the U.S. earnings season with profit that beat estimates, Bayerische Motoren Werke AG raised its forecast and BP Plc gained.
BMW, the world’s biggest maker of luxury cars, jumped the most in 15 months after saying higher volumes in 2010 will boost profit. BP increased 2.9 percent after installing a new cap on its leaking oil well in the Gulf of Mexico and as Abu Dhabi said it’s considering making an investment in the company.
The Stoxx Europe 600 Index advanced 1.9 percent to 255.99, erasing this year’s losses. The measure has risen 8.2 percent over the past six days amid easing concern about the economic recovery and speculation that the selloff in equities since April has overshot the outlook for company profits. The gauge remains 5.9 percent below this year’s high.
Earnings “forecasts look too low and we expect a strong majority of companies to beat their numbers,” said Graham Bishop, the London-based head of pan-European equity strategy at Royal Bank of Scotland Group Plc. “We already know a great deal about the performance of the global economy through the second quarter. Consensus economic forecasts have actually been revised materially higher.”
Portugal’s PSI-20 Index was the second-weakest western European market today as Moody’s Investors Service cut the nation’s credit rating by two notches to A1 because of a growing debt burden and weak economic growth prospects. The gauge gained 0.1 percent, while the U.K.’s FTSE 100 and France’s CAC 40 surged 2 percent. Germany’s DAX rallied 1.9 percent.
Greek Bond Sale
Greece’s ASE Index surged 2.6 percent as the nation sold 1.63 billion euros ($2.1 billion) of 26-week Treasury bills at a rate below the 5 percent charged by the European Union for its bailout package, easing concern the country faces punitive costs to borrow.
BMW rallied 8.3 percent to 42.13 euros, leading a gauge of auto stocks to the biggest gain among 19 industry groups in the Stoxx 600. The luxury-car maker forecast 2010 sales volumes will rise by about 10 percent to more than 1.4 million units, with a full-year profit margin of more than 5 percent expected for the automobiles segment. Rival Daimler AG advanced 5.4 percent to 43.81 euros.
Automakers Advance
Peugeot SA climbed 5.3 percent to 24.37 euros and Volkswagen AG preferred shares gained 5.2 percent to 77 euros. JPMorgan Chase & Co. raised its price estimate on the French carmaker by 3 percent to 34 euros and on the German automaker by 4 percent to 78 euros, saying increased demand and “attractive valuations” favor the industry, according to a report today.
BP advanced 2.9 percent to 410.35 pence, extending yesterday’s 9.4 percent jump. The oil company installed a new cap on its leaking Gulf of Mexico well and will start testing today whether this will stop the gusher while work continues on a permanent plug. Separately, the Financial Times reported that BP expects to be able to write off the oil-spill cleanup costs against taxes, without saying where it got its information.
Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan said the emirate is considering making an investment in BP.
‘Still Thinking’
“We are still thinking about it,” he said in an interview in Abu Dhabi today, when asked about potentially buying a stake in the London-based oil producer. “We are looking across the board. We have been partners with BP for years.”
Alcoa, the largest U.S. aluminum producer reported second- quarter profit that topped analysts’ projections as higher metal prices boosted sales. Earnings from continuing operations were 13 cents a share, exceeding the 11-cent average estimate of 17 analysts surveyed by Bloomberg.
Profits for S&P 500 companies are projected to have increased 34 percent in the second quarter and by the same amount in 2010, according to analysts’ estimates compiled by Bloomberg. Intel Corp., the biggest maker of semiconductors which reports quarterly earnings after the close of U.S. exchanges today, is among 23 companies in the index to announce results this week.
Burberry Group Plc surged 3.7 percent to 818.5 pence, the highest level since at least 2002. The U.K.’s largest luxury retailer posted a 27 percent gain in first-quarter sales, beating analysts’ estimates, led by growth in Asia and deliveries to wholesale customers.
Unilever, BAT
Unilever, the world’s second-largest maker of consumer products, gained 2.9 percent to 1,898 pence and British American Tobacco Plc advanced 2.6 percent to 2,277 pence as Goldman Sachs Group Inc. upgraded both companies to “buy” from “neutral.”
SEB AB surged 4.9 percent to 48.75 kronor after the second- largest bank in the Baltic countries returned to profit in the second quarter as loan losses in Estonia, Latvia and Lithuania decreased.
DNO International ASA rallied 4.9 percent to 8.74 kroner, the highest close since April, after the Daily Telegraph reported that RAK Petroleum Pcl has made an offer to buy the remainder of the Norwegian oil producer. DNO Chief Executive Officer Helge Eide said he had “no comment and no information” on the report.
–Editors: Andrew Rummer, David Merritt.





