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EUROPEAN EQUITY OPENING HEADLINES INCLUDING: MAN is subject of a renewed speculation it could be acquired by Volkswagen

Last updated: 03:53 22 Oct 2010 EDT, First published: 02:53 22 Oct 2010 EDT

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ASIA

Nikkei rose 0.5% in a rebound after two days of losses, but investors were wary of pushing the market higher before seeing the outcome of a G20 meeting and with the JPY hovering near a 15-year high on the USD. But with the earnings season heading into full swing in Japan, investors snapped up shares of companies that had upbeat earnings prospects such as Hitachi, helping provide support to the overall market. (RTRS)

Chinese Banks – The Chairman of the Bank of China has called on the country’s financial sector to speed up its expansion overseas in a strong sign that Beijing is considering allowing banks to resume offshore mergers and acquisitions. (FT)

CNOOC – Co. and Ghana National Petroleum made a USD 5bln bid to buy Kosmos Energy’s assets in the West African country, including its stake in the Jubilee field, according to three people familiar with the matter. (Sources)


US

Stocks were volatile amid a stronger USD but managed to finish in slight positive territory as consensus beating earnings from the bellwether stocks outweighed concerns over the economy. Bank of America (-3.28%) underperformed yet again as market participants continued to fret over implications over the foreclosure scandal. The closing stages of the session saw equities reverse earlier downward trend after Federal Reserve Bank of St. Louis President James Bullard said that he would still prefer "small increments" of quantitative easing. Finally, at the closing bell DJIA closed up 0.35% at 11146.57, S&P 500 closed up 0.18% at 1180.26 and NASDAQ 100 closed up 0.21% at 2090.10.

American Express - Q3 EPS USD 0.90 vs. Exp. USD 0.84, up 70% from a year ago and Q3 revenue USD 7bln vs. Exp. USD 6.78bln. Says Q3 net USD 1.09bln and Q3 provision for losses USD 373mln. (RTRS) Co. shares were up 1.1% in after market trade.

Amazon - Q3 EPS USD 0.51 vs. Exp. USD 0.48 and Q3 revenue USD 7.56bln vs. Exp. USD 7.37bln. Co. says Q3 North America segment sales USD 4.13bln and Q3 international segment sales USD 3.43bln. Says sees Q4 net sales growth of 26-40%, sees net sales of USD 12.0-13.3bln vs. Exp. USD 12.22bln, sees Q4 operating income USD 360-560mln and says Q4 outlook includes about USD 140mln stock comp/amortisation. (RTRS) Co. shares were down 4% in after market trade.

SanDisk - Q3 adjusted EPS USD 1.30 vs. Exp. USD 1.05, Q3 revenue USD 1.23bln vs. Exp. USD 1.23bln. Co. says is bullish for 2011 on continuing growth due to demand for embedded storage in smartphones, tablet PC's and other devices and says completed a USD 1bln senior unsecured convertible notes offering due 2017. (RTRS)

Citrix Systems - Q3 (non-GAAP) EPS USD 0.62 vs. Exp. USD 0.49 and Q3 revenue USD 472mln vs. Exp. USD 458.17mln. Co. says sees Q4 non-GAAP EPS USD 0.59-0.60 ex-items vs. Exp. USD 0.59, sees Q4 revenue USD 500-510mln vs. Exp. USD 499.4mln and sees FY 2011 revenue USD 2.04-2.07bln. (RTRS)

AIG – Co. raised USD 17.8bln by selling shares in its main Asian unit, AIA Group. (Sources)


UK

UK Banks – Big banks in Britain are in line to pay a larger-than-expected share of a new industry levy after some alterations to the scheme threatened to push up the overall charge on their balance sheets. (FT)

Rio Tinto/BHP Billiton – According to Constellation Capital Management, which owns shares in co.s, Australia’s mining tax agreement may face a High Court challenge on the grounds that it could be unconstitutional. (Sources)

BHP Billiton – Saskatchewan urged the Canadian government to block the company’s USD 39bln bid for Potash Corp on the grounds that the Australian miner had failed to show that the deal would benefit the prairie province. (FT) Co.’s Chairman says will walk away from its USD 40bln offer for Potash Corp., if it does not create value for shareholders. (Australian Financial Review)

BT Group – Co. is in a stronger position to cut the size of the large top-up payments it makes into its pension scheme following a landmark court ruling stipulating that the taxpayer must under write most of the fund’s liabilities if the company collapses. (FT)

African Barrick Gold – Co.’s net falls 8% in quarter to USD 4-mln, and revenue down 1%. (Sources)

BSKYB – Co.’s Q1 adjusted EPS GBP 9.70, vs. Exp. GBP 8.50, Q1 revenue GBP 1.53bln vs. Exp. GBP 1.5bln. Q1 total net product growth 989,000 vs. Exp. 884,000, and also co.’s Q1 net customer additions 96,000 vs. Prev. 94,000. (Sources)

Companies paying Dividend: Petrofac (USD 0.1380)


GERMANY

MAN – Co. is subject of a renewed speculation it could be acquired by Volkswagen (Rheinische Post)


FRANCE

Sanofi Aventis - Merck and co. are beginning to auction parts of their animal-health product lines with about USD 550mln on sales. (RTRS)

Saint Gobain - Q3 sales EUR 10.48bln vs. Exp. EUR 10.40bln and confirms 2010 target. (RTRS) In other news, according to co.’s CEO co. may sell control of its packaging unit. (Les Echos)

L'Oreal - Q3 sales EUR 4.85bln vs. Exp. EUR 4.73bln and says Q3 like-for-like sales 5.8% vs. Exp. 5.0%. Co. says confirms target of strengthening global position and says solid growth in North America. (RTRS)

Essilor – Co.’s Q3 sales EUR 977mln vs. Exp. EUR 977mln, and 9-month sales EUR 2.9bln. Co. confirms full year targets. (Sources)


PAN-EUROPEAN

Iberdrola – Co. sells stakes in Guatemalan firms for USD 326.45mln

Anglo Irish Bank - Co. says is inviting holders of subordinated bonds to exchange any or all existing notes at ratio of 0.2, says exchange offer applies to EUR 1.6bln worth of subordinated debt. (RTRS)

Ericsson – Co.’s Q3 operating profit SEK 5.21bln vs. Exp. SEK 5.46bln, Q3 pretax SEK 5.08bln vs. Exp. SEK 5.42bln. Q3 sales SEK 47.5bln vs. Exp. SEK 48.8bln. Co. continues to see growth opportunities in the market. (Sources)


SMI

Nestle – Co.’s revenue CHF 82.8bln vs. Exp. CHF 82.1bln, 9M organic growth 6.1% vs. Exp. 5.6%. Co. confirms their outlook. Co.’s 9M volume growth 4.5% vs. Exp. 4.1%. Co.’s Americas 9M revenue CHF 25bln, 5.7% organic growth. Co.’s Europe 9M revenue CHF 16bln, 2% organic growth. (Sources)

Novartis – Co.’s Flaud adjuvanted influenza vaccine showed 89% efficacy in children between 6 month and 6 years of age in a study, the co. said in a statement. (Sources)


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