European Factors to Watch-Shares to edge higher; BMW's results beat

Tue Aug 5, 2014 2:23am EDT

(Recasts, adds futures)
    LONDON, Aug 5 (Reuters) - European shares were seen opening a touch higher
on Tuesday, with strong results from German car maker BMW and other blue-chip
stocks seen supporting an otherwise subdued market.
     At 0617 GMT, futures for the Euro STOXX 50, Britain's FTSE 100
, Germany's DAX and France's CAC were up between 0.1
percent and 0.3 percent.
    Shares in BMW were seen opening 2.7 percent higher, according to a
German broker, after the luxury car maker reported a higher-than-expected
second-quarter operating profit, helped by new offroad models and strong China
sales. 
    Mail services operator Deutsche Post also reported an increase in
operating profit in the second quarter, setting up its shares to open 4.1
percent higher.
    Credit Agricole reported higher-than-expected quarterly revenue
but a hit related to its stake in troubled Banco Espirito Santo (BES) 
nearly wiped out France's third-biggest listed bank's second-quarter net
profit.  
    The telecoms sector was in focus on the prospect of new mergers and
acquisitions activity.
    Spain's Telefonica presented a 6.7 billion euro ($8.99 billion) offer to 
Vivendi for its Brazilian unit GVT, but the French firm said none of
its subsidiaries were for sale.    
    The Euro STOXX 50 has fallen 5 percent over the past two weeks,
pummelled by concerns about a tightening of the U.S. monetary policy, financial
trouble at BES and geopolitical tensions ranging from Ukraine to Gaza.
    With all these concerns still present in the market, traders said the
downtrend may resume shortly.    
    "Nothing has materially changed sine last week and everything that was
weighing the bulls down is still firmly wrapped around their necks," Jonathan
Sudaria, a dealer at Capital Spreads, said in a trading note. 
    "The down move may have stalled and some markets have had a modest up tick
but traders are already framing this as a text book dead cat bounce." 
    The market may get a steer from Purchasing Managers Index surveys for the
euro zone's three largest economies - Germany, Italy and France - and the euro
bloc as a whole, due to be published between 0745 GMT and 0800 GMT.   
    
------------------------------------------------------------------------------
  MARKET SNAPSHOT AT 0616 GMT:    
    
                                               LAST       PCT CHG       NET CHG
 S&P 500                                   1,938.99        0.72 %         13.84
 NIKKEI                                    15320.31          -1 %       -154.19
 MSCI ASIA EX-JP                             503.91       -0.48 %         -2.45
 EUR/USD                                      1.342       -0.01 %       -0.0001
 USD/JPY                                     102.48        -0.1 %       -0.1000
 10-YR US TSY YLD                             2.474            --         -0.02
 10-YR BUND YLD                               1.135            --          0.00
 SPOT GOLD                                $1,291.60        0.28 %         $3.56
 US CRUDE                                    $98.38        0.09 %          0.09
 
  
  > ASIA STOCKS SLIP AS CHINA SERVICE DATA SOURS MOOD            
  > LATE SURGE LIFTS WALL ST; UTILITIES SAG                      
  > NIKKEI EDGES DOWN AS WEAK YEN TREND PAUSES                   
  > YIELDS SLIP AS U.S. INFLATION ANXIETIES DWINDLE              
  > DOLLAR SITS NEAR HIGHS AS RALLY PAUSES, RBA IN FOCUS         
  > GOLD HOLDS BELOW $1,300 AS STRONG DOLLAR, FUND OUTFLOW WEIGH 
  > LONDON ZINC BACK NEAR THREE-YEAR TOP AS INVESTORS EYE METALS 
  > BRENT STEADY ABOVE $105 ON GEOPOLITICAL TENSION              
      
    COMPANY NEWS
    
    BMW 
    The German luxury car maker said its second quarter operating profit rose 26
percent, above forecasts, as new offroad models and strong China sales boosted
earnings. 
    
    TELEFONICA 
    Spain's Telefonica said on Tuesday it had presented a 6.7 billion euro
($8.99 billion) offer to France's Vivendi for its Brazilian unit GVT as it moves
to beef up its presence in the Latin American country. 
    Vivendi confirmed it had received a binding offer from Telefonica TEF.MC for
its Brazilian broadband business, GVT, but said none of its subsidiaries were
for sale. 
    
    CREDIT AGRICOLE 
    France's third-biggest listed bank said it took a 708 million euro ($950
million) hit related to its stake in troubled Banco Espirito Santo (BES)
 that nearly wiped out the bank's second-quarter net profit.
    Quarterly revenue slid 6.1 percent to 3.934 billion euros. That was above
the mean analyst estimate of 3.91 billion, according to figures compiled by
Thomson Reuters I/B/E/S. 
    
    DEUTSCHE POST 
    Deutsche Post said on Tuesday second-quarter earnings before interest and
tax (EBIT) rose 5.7 percent to 654 million euros ($877.7 million), thanks mainly
to its logistics business, while revenues were largely flat at 13.695 billion
euros. 
    
    AXEL SPRINGER 
    The German publisher reported an 8 percent rise in its core profit fuelled
by its digital activities which made up more than half of its revenues.
    
        
    BALOISE 
    The Swiss insurer Baloise said it expects a first-half net profit of more
than 340 million Swiss francs ($375.03 million) when it reports results later
this month, and is poised to hit its financial targets. 
    
    DEUTSCHE TELEKOM, ILIAD 
    Deutsche Telekom has serious doubts about the overall attractiveness of a
bid by French telecom group Iliad for its U.S. mobile unit, despite lower
regulatory hurdles than a rival offer, said two people close to the company.
 
    
    BOUYGUES 
    Bouygues said on Monday that no third party had made an offer for its
telecoms business, days after rival Iliad revealed a surprise $15 billion bid
for T-Mobile US. 
    
    CARILLION, BALFOUR BEATTY   
    British construction company Carillion is planning to approach investors who
also have stakes in Balfour Beatty in the hopes of reviving merger talks to buy
the company, the Times reported on Monday. 
    
    TELECOM ITALIA, PRYSMIAN 
    People's Bank of China has taken stakes of just over 2 percent in
the Italian phone group and the cable maker, a filing by market regulator Consob
showed on Monday. 
    
     ROCHE 
     Roche said on Monday it will buy Santaris Pharma, a privately-held
Danish biotech company that has developed a new designer molecule, for up to
$450 million in cash. 
    
    HOLCIM 
    Holcim Ltd and Lafarge <SA LAFP.PA> gave details on Monday of the
activities they plan to offload in Brazil in order to clinch antitrust approval
for a merger to create the world's largest cement maker. 
    
    BILFINGER SE 
    The German industrial services and construction group said Chief Executive
Roland Koch would quit, taking responsibility for a second cut in its 2014
earnings outlook since end-June. 
    
    INTERCONTINENTAL HOTELS GROUP  
    Activist hedge fund Marcato Capital Management said on Monday that it has
hired Houlihan Lokey as a financial advisor as it seeks to persuade
InterContinental Hotels Group to consider selling itself. 

(1 US dollar = 2.2585 Brazilian real)

 (Reporting By Francesco Canepa)