European markets for the most part are trading higher, led by the telecoms and basic resources sectors. Vodafone Group is trading higher on better-than-expected mobile phone subscriber data from its Japanese unit, while the Dutch government has sold an 8% stake in Royal KPN.
In the banking sector, further restructuring within Credit Suisse is expected to result in pre-tax synergy benefits of 1.3 billion Swiss francs in 2008, while Standard Chartered says full year results are expected to be in-line with corporate guidance.
In the transport sector, Stagecoach has posted first half pre-tax profits of 54.9 million pounds compared to 59.3 million pounds in the same half last year, while low cost airline easyJet says passenger traffic in November grew to 2.297 million, up 8.3% year-on-year.
London’s FTSE-100 Index has risen by 18.10 points or 0.33% to 5556.90, while Paris’s CAC-40 Index is higher by 5.87 points or 0.13% to 4683.07. Frankfurt’s DAX Index has slipped by 7.22 points or 0.14% to 5293.63 but Milan’s S&P MIB Index has added 99 points or 0.28% to 34,905. The pan-European blue chip Dow Jones Stoxx 50 Index has gained 14.39 points or 0.43% to 3365.70.
Shares in Vodafone Group are trading higher after its Japanese unit, Vodafone KK released better-than-expected mobile phone subscriber data, with users up by 57,000 to 15.053 million in November. Meanwhile, its 3G mobile phone service subscriber base has recorded net additions of 186,500 last month, taking the total to 2.08 million.
The Dutch government says it sold an 8% stake (equivalent to 165 million ordinary shares) in telecommunications operator Royal KPN, adding that it was planning to dispose of its golden share by the end of the year.
Credit Suisse has announced that for 2008 it expects to generate total pre-tax synergy benefits of 1.3 billion Swiss francs, including pre-tax cost savings of 600 million Swiss francs. This would result in a positive net income benefit of around 1.0 billion francs. Overall cost savings are expected mainly in the areas of information technology, supply management and real estate and services. In 2007, cost savings are expected to total around 250 million francs pre-tax.
Standard Chartered has stated in its latest trading update that it had made progress going into the second half of 2005 and full year results are expected to be in-line with corporate guidance. The bank added that income momentum was robust and the integration of SC First Bank was ahead of schedule.
U.K. transport group Stagecoach has posted first half pre-tax profits of 54.9 million pounds compared to 59.3 million pounds in the same half last year. Operating profit has dipped to 69.5 million pounds from 74.1 million pounds last, while turnover has risen to 793 million pounds from 735.7 million pounds in the prior year.
Low-cost carrier easyJet says that while it aims to grow its capacity, measured in terms of available seats, by 15% this year, the first part of the year will show a lower growth rate due to the comparison with growth in excess of 25% this time last year. Meanwhile, passenger traffic in November has grown to 2.297 million, up 8.3% year-on-year, while the load factor has declined to 80.2% compared to 81.2% last year.