Europe Factors-Shares seen up, euro zone meeting eyed

(Adds futures, details, updates snapshot table)

PARIS, Dec 6 (BestGrowthStock) – European stocks were seen rising on Monday after
comments from the Federal Reserve Chairman Ben Bernanke who said the Fed was
open to pump more funds into the U.S. economy.

On Sunday, Bernanke told the CBS programme “60 Minutes” the Fed could end up
buying more than the $600 billion in U.S. government bonds it has committed to
purchase if the economy fails to respond or unemployment stays too high.
[ID:nN05271909]

By 0735 GMT, futures for Euro STOXX 50 (STXEc1: ) were up 0.1 percent, for
Germany’s DAX (FDXc1: ) up 0.2 percent and for France’s CAC (FCEc1: ) up 0.3
percent.

Investors awaited the outcome of a meeting of euro zone finance ministers,
who face pressure to boost the size of a 750 billion euro safety net for
debt-swamped members in order to prevent contagion in the single currency bloc.

According to an IMF report obtained by Reuters, the head of the IMF
Dominique Strauss-Kahn will call on the ministers to increase the facility and
urge the European Central Bank to step up its purchases of bonds to stem the
crisis. [ID:nLDE6B40EJ]

In a column published in Monday’s Financial Times, Luxembourg’s Prime
Minister Jean-Claude Juncker and Italian Finance Minister Giulio Tremonti called
for the issuance of joint European sovereign bonds, or “E-bonds”, to assert the
“irreversibility of the euro”.

But the idea was rejected by German Finance Minister Wolfgang Schaeuble, who
said in a video interview published on the FT’s website that jointly guaranteed
bonds were not the solution because it would require “fundamental changes” in
European treaties. [ID:nLDE6B40HG]

The euro fell (Read more about the trembling euro. ) back towards channel support ahead of the meeting.

“Talk that the European Central Bank has continued to buy Greek, Spanish,
Irish and Portuguese bonds have helped drive support for the single currency,
but with the Irish due to vote on their budget tomorrow, sentiment towards
peripheral Europe continues to remain finely balanced, and it may not be long
before the stay of execution engineered by (ECB President Jean-Claude) Trichet
last week sees the euro start to slide back.” Michael Hewson, market analyst at
CMC Markets said.

Banking stocks with significant exposure to Eastern Europe will be in focus
after Moody’s Investors Service downgraded Hungary’s government bond ratings to
Baa3 from Baa1, with an outlook “negative”. [HU-RTRS-LEN]

Despite rallying last week, the euro zone’s blue chip Euro STOXX 50
(.STOXX50E: ) index is still down 4 percent from a six-month high touched in
November, as fears of contagion from the Irish debt crisis prompted investors to
book profits.

The index’s next key resistance level is at 2,805.95 points, which
represents the 61.8 percent Fibonacci retracement of the index’s sharp drop in
April and May. On Friday, the index broke above the upper band of a downtrend
channel that had started in early November.

———————-MARKET SNAPSHOT AT 0726 GMT———————-

LAST PCT CHG NET CHG

S&P 500 (.SPX: ) 1,224.71 0.26 % 3.18

NIKKEI (.N225: ) 10,167.23 -0.11 % -11.09

MSCI ASIA EX-JP (.MIASJ0000PUS: ) 558.64 0.59 % 3.29

EUR/USD (EUR=: ) 1.3351 -0.22 % -0.0029

USD/JPY (JPY=: ) 82.88 0.33 % 0.2700

10-YR US TSY YLD (US10YT=RR: ) 2.957 — -0.05

10-YR BUND YLD (EU10YT=RR: ) 2.854 — -0.01

SPOT GOLD (XAU=: ) $1,416.40 0.14 % $2.05

US CRUDE (CLc1: ) $89.68 0.55 % 0.49

———————————————————————–

GLOBAL MARKETS-Dlr wobbles on Fed view, weak data [ID:nL3E6N50B9]

Wall St ends best week in a month; more gains seen [ID:nN03135099]

Nikkei slips as yen recovers, but finds support [ID:nTOE6B501N]

FOREX-Dollar pushes back, market weighs QEII vs euro debt [ID:nTOE6B501I]

TREASURIES-Gain in Asia after data, Bernanke [ID:nTOE6B500Z]

Shanghai, LME copper steady; LME eyes dominant position [ID:nL3E6N6041]

Gold eases after rising nearly 2 pct; dollar helps [ID:nL3E6N602J]

COMPANY NEWS:

RIO TINTO (RIO.L: )

The global miner has made a $3.5 billion bid approach for Africa-focused
Riversdale Mining (RIV.AX: ), sending the target firm’s shares surging 13 percent
and setting up a potential takeover battle. [ID:nL3E6N600F]

HERMES (HRMS.L: ), LVMH (LVMH.PA: )

The family shareholders of leather bag maker Hermes announced on Sunday the
creation of a holding firm with more than 50 percent of Hermes International’s
capital, in a move to defend it against takeover by luxury group LVMH (LVMH.PA: ).
For details, see: [ID:nLDE6B40F6]

WPP (WPP.L: ), PUBLICIS (PUBP.PA: ), HAVAS (EURC.PA: )

Global advertising spending should grow steadily over the next three years
and exceed its 2008 pre-recession peak in 2012, leading media buyer
ZenithOptimedia forecast on Monday. Ad spend should grow 4.9 percent this year
— slightly ahead of its previous prediction of 4.8 percent growth — 4.6
percent in 2011 and 5.2 percent in 2012 and 2013, driven by developing markets
and digital media. [ID:nLDE6B40FA]

VODAFONE (VOD.L: ), VIVENDI (VIV.PA: )

The British mobile telecoms operator is close to selling its 44 percent
stake in mobile phone operator SFR to France’s Vivendi, paving the way for
Vodafone buy back 5 billion pounds ($7.9 billion) in its own shares in 2011, The
Observer said on Sunday. The newspaper said Vodafone was also close to
announcing an 800 million pound deal involving the disposal of its stake in
Polish phone group Polkomtel. [ID:nLDE6B407X]

IBERIA (IBLA.MC: )

Spanish airspace was closed for around 24 hours from Friday to Saturday
after a wildcat strike by air traffic controllers paralysed airports and forced
airlines to ground all flights in and out of Spain. [ID:nLDE6B301W]

SIEMENS (SIEGn.DE: ), ALSTOM (ALSO.PA: )

Siemens has signed an agreement worth more than 700 million euros ($923
million) to supply trains to Eurostar, a source familiar with the situation said
on Friday. [ID:nLDE6B21RQ]

FIAT (FIA.MI: )

Banks are sounding out investors on a possible listing of Fiat’s sports car
unit Ferrari, Il Sole 24 Ore reported on Saturday, citing unnamed financial
sources.

ENEL (ENEI.MI: )

The energy company said it raised a net of 2.4 billion euros from the
listing of its green energy unit (EGPW.MI: ), short of the potential 2.6 billion
euros, as options to sell more shares were only partially exercised.
[ID:nLDE6AO0KK]

ROCHE (ROG.VX: )

A trial of Roche’s Rituxan found that use of the drug in patients with a
type of slow-growing lymphoma significantly delayed the need for chemotherapy
treatment. For related news click on [ROG.VX-E]

AREVA (CEPFi.PA: )

French Industry Minister Eric Besson said on Sunday that the first phase of
a capital raising for Areva was “imminent” and likely to take place within
hours or days. The Kuwait Investment Authority is expecetd to take part.
[ID:nPIS5NE6KN]

DE LA RUE Plc (DLAR.L: )

The British bank note printer said on Monday it had received a preliminary
and “highly opportunistic” bid approach from an unnamed party. De La Rue did not
identify the party behind the bid, although on Sunday Sky News had reported that
De La Rue had rejected a bid from French group Oberthur Technologies.
[ID:nLDE6B506S]

ERICSSON (ERICb.ST: )

Ericsson said on Monday its chairman, Michael Treschow, will be stepping
down in 2011 or 2012 after spending nearly a decade at the helm of the world’s
biggest mobile networks maker. [ID:nLDE6B507Z]

THALES (TCFP.PA: )

The French defence electronics group is weighing taking a 25 percent stake
in Nexter, the French-owned manufacturer of the Leclerc battle tank, with the
aim of eventually becoming its controlling shareholder, according to a report in
Monday’s La Tribune newspaper.

(Reporting by Blaise Robinson)

Europe Factors-Shares seen up, euro zone meeting eyed