(Adds futures, company news, details)
LONDON Aug 25 European shares were likely to open sharply
higher on Monday, with sentiment improving after comments by European Central
Bank President Mario Draghi raised expectations of further policy easing by the
Draghi, speaking at a global central banking conference in Jackson Hole,
Wyoming, said late on Friday the bank was prepared to respond with all its
"available" tools should inflation drop further.
"Draghi made headlines after suggesting further stimulus could be on the
way. He feels action may be needed to boost demand in Europe, and this will see
markets start to price in probability for further stimulus in the near term," IG
strategist Stan Shamu said in a note.
Also in a speech at the Jackson Hole conference, the Federal Reserve's chair
Janet Yellen laid out in detail why she feels the unemployment rate alone was
inadequate to evaluate the strength of the jobs market and why the central bank
needed to move cautiously on raising rates.
At 0652 GMT, futures for the Euro STOXX 50, Germany's DAX
and France's CAC were 1.1 to 1.2 percent higher.
However, trading volumes were likely to be thin as the UK market was closed
for a public holiday on Monday.
In mergers and acquisitions news, Roche Holding has agreed to buy
U.S. biotech company InterMune for $8.3 billion in cash, marking the
latest multibillion-dollar deal in a consolidating pharmaceutical sector.
And Airbus is considering a sale of its 49 percent stake in
submarine supplier Atlas Elektronik as part of a reshuffle of its military
business, German newspaper Die Welt reported on its website on Friday, citing
industry sources. Airbus declined to comment.
> DOLLAR IN DEMAND AS STIMULUS TALK DOGS EURO, YEN
> &P 500, DOW END LOWER AFTER UKRAINE TENSION ESCALATES
> NIKKEI REBOUNDS AS EXPORTERS GAIN ON WEAKER YEN; INSURERS SUFFER
> TREASURIES-PRICES REBOUND AFTER FED CHAIR YELLEN CAUTIOUS ON LABOR
> EURO STUMBLES TO LOWEST IN ALMOST A YEAR ON DRAGHI DOVISHNESS
> GOLD HOLDS NEAR 2-MTH LOW ON FIRM DOLLAR, TALK OF U.S. RATE HIKE
> HANGHAI COPPER HITS HIGHEST SINCE EARLY JULY AS CONSUMERS RESTOCK
> BRENT EDGES DOWN NEAR $102 AS SUPPLY, DOLLAR WEIGH
MACROECONOMIC DATA/EVENTS (GMT) :
0800 DE Ifo Business Climate
1345 US Services PMI
1400 US New Home Sales
Roche Holding has agreed to buy U.S. biotech company InterMune Inc
for $8.3 billion in cash, marking the latest multibillion-dollar deal in a
consolidating pharmaceutical sector.
Airbus is considering a sale of its 49 percent stake in submarine supplier
Atlas Elektronik as part of a reshuffle of its military business, German
newspaper Die Welt reported on its website on Friday, citing industry sources.
Airbus declined to comment.
The paper speculated Thales could launch a fresh approach if Airbus decided
to sell its stake, having lost out in 2005 due to political resistance to a
foreign firm becoming part-owner in a German defence business. Thales declined
Spanish builder ACS is pushing ahead with the sale of its renewable energy
assets, valued at around 3.1 billion euros (4 billion US dollar), online
newspaper El Confidencial reported on Monday, citing financial sources.
It said the company was also exploring a potential listing of the division.
Spain will hold off on selling more of its controlling stake in lender
Bankia until the results of Europe-wide bank stress tests in October,
Economy Minister Luis de Guindos said in an interview published on Sunday.
The United States has approved anti-dumping duties against South Korea and
other producers of steel pipes for the energy sector, a victory for domestic
producers hoping to benefit from a boom in the U.S. shale oil and gas industry.
Vallourec was among those who filed the complaint, and a company spokeswoman
welcomed the ruling.
Swiss drugs industry supplier Lonza Group AG is courting the financial
backers of biotech firms to help secure a steady stream of projects and offset
some of the volatility of outsourced production contracts, a senior executive
said. For more, click on
Germany's Economy Ministry has approved plans by defence group Rheinmetall
to deliver a tank assembly plant to Algeria, according to a reply sent by the
ministry following a request from a member of parliament.
The bank was sued for $250 million on Friday for allegedly ignoring red
flags that a colourful British entrepreneur, the late David Elias, was
committing fraud through an investment vehicle he controlled.
French commercial satellite launch company Arianespace - of which Safran is
a 10.6 percent shareholder - said it was looking into why two satellites for the
Galileo global positioning system launched over the weekend went into incorrect
French shopping mall operator Klepierre, which is set to buy Dutch group
Corio to create Europe's biggest pure-play retail property company, said the
companies were making "good progress" on preparations for the offer. Klepierre
expects to submit the offer to the Dutch market regulator "shortly" and by Oct
The company remains confident about business in China, even though growth in
the country has slowed, board member Martin Brudermueller told German magazine
He added the group had suffered a slight delay in reaching its target of
locally producing 75 percent of the chemical products it sells in the
Asia/Pacific region by 2020, adding the share was currently about 60 percent.
CAR PARTS SUPPLIERS
Three German car parts suppliers have been told by China they can no longer
manage their Chinese units independently but need to form partnerships with
local peers, the chief executive of auto parts maker ElringKlinger
told a German paper, adding ElringKlinger was not affected.
Utilities Enel, A2A and GDF Suez Italia have shown interest in buying E.ON
Italia's 800,000 commercial customers, according to the Sunday edition of
business daily Il Sole 24 Ore. E.ON Italia is trying to sell its domestic assets
because low power and gas demand is depressing returns.
German pilots' union Vereinigung Cockpit said late on Friday it had decided
to launch industrial action against Lufthansa after labour talks failed to
produce an agreement.
The German steel and industrial group confirmed it plans to save 500 million
euros ($660 million) by consolidating the procurement activities of its various
business units, the group's chief human resources officer told German newspaper
Rheinische Post. Related news
(Reporting by Atul Prakash; Editing by Francesco Canepa and Anand Basu)