Tuesday Morning View From Europe

by: Dealing Floor

From DealingFloor:


- Spain Will Fight to Control Endesa’s Future After E.ON Bid, Minister Says
- German Factory Orders Probably Advanced on Domestic Spending, Survey Shows
- HSBC Earnings, Share-Price Estimates Increased at Credit Suisse on Profits
- Crude Oil Trades Near Three-Day Low on Signs OPEC Won’t Reduce Production
- Syngenta, Monsanto Rally Even as EU Opposes Genetically Modified Seeds
- Oil, Orange Juice Beat Stocks as Investors Seize Commodity Mutual Funds


- Earnings of note: Telecom Italia, CRH and International Power.

- Shares of Portugal Telecom SGPS SA may gain after it pledged to pay
shareholders 3 billion euros through 2008 to help persuade them to reject
Sonaecom SGPS SA’s takeover bid. The Lisbon-based company announced the plan
late yesterday, together with fourth-quarter earnings that beat analysts’
expectations. Net income soared to 293.4 million euros ($351 million) from 53.5
million euros a year earlier, compared with the 153.4 million euros expected by

- Unilever to propose 3-for-1 share split at AGM

- CRH Plc, Europe’s third-biggest maker of building materials, said full-year
profit gained 15 percent as U.S. spending on highways and hurricane repairs
fueled demand for its crushed rock, asphalt and concrete. Net income rose to
997.9 million euros, or 185.2 cents a share, from 866.1 million euros, or 162.7
cents, a year earlier. Sales advanced 13 percent to 14.4 billion euros.

- International Power FY earnings top forecasts. Unveils FY05 profit from
operations exc. exceptionals of GBP501m, up 126%; PTP exc. excepts. GBP299m; EPS
exc. exceptional items 13.5p, +57%; free cash flow GBP285m, +174%; dividend
4.5p, +80%. Expects 2006 to be a year of further growth, driven principally by
continued recovery in the UK and the US, and the new build programme in the
Middle East progressively reaching commercial operation. Says committed to
increase dividend pay-out over the medium-term.