some news to cheer you up!
European Stocks, U.S. Futures Gain as Bonds Fall; Dollar Rises
Oct. 12 (Bloomberg) -- European stocks and U.S. index futures rose and government bonds fell as Royal Philips Electronics NV’s unexpected profit bolstered speculation that the economic recovery is gaining momentum. The dollar climbed.
The Dow Jones Stoxx 600 Index of European shares advanced 1.1 percent at 10:09 a.m. in London, building on its biggest weekly rally since July. Futures on the Standard & Poor’s 500 Index added 0.6 percent, indicating the benchmark gauge of U.S. equities may increase for a sixth day. German government bonds declined, with the yield on the benchmark bund rising 1 basis point to 3.2 percent. The dollar advanced against the yen.
Philips, Europe’s largest consumer-electronics maker, posted a third-quarter profit as operating earnings at the consumer unit more than doubled. The results came after Alcoa Inc., the largest American aluminum producer, started earnings season in the U.S. last week with income that beat analysts’ estimates. Federal Reserve Bank of St. Louis President James Bullard said in a speech yesterday that U.S. jobs growth will return this year or next.
Philips helped lead the gains in Europe’s Stoxx 600, adding 6.1 percent in Amsterdam, while energy companies rose with oil. Total SA, Europe’s biggest refiner, rose 1.2 percent in Paris.
Philips posted third-quarter net income of 174 million euros ($256 million). Analysts had predicted a loss of 44.7 million euros, according to 13 estimates compiled by Bloomberg.
Earnings for companies in the Stoxx 600 may rise 3.7 percent this year and 31 percent in 2010, according to analysts’ estimates compiled by Bloomberg. The index has rebounded 55 percent since March 9 as companies from Bayer AG to Philips reported earnings that beat analysts’ estimates and the economic contractions in Germany and France ended.
Russia’s Micex Index posted the steepest gain among benchmark equity indexes worldwide, climbing 2.7 percent to the highest level in 13 months. OAO Lukoil, the country’s second- biggest oil company, led the advance. Crude oil for November delivery advanced 1 percent to $72.46 a barrel in New York trading, gaining for a third day.
Philips beats Q3 forecasts but still cautious
* Q3 EBITA 344 mln euros, nearly double of top forecast
* Cautious for short term
* No structural recovery in majority of end-markets yet
* Shares up 6.5 pct at 1-year high
AMSTERDAM, Oct 12 (Reuters) - Philips Electronics (PHG.AS) (PHG.N) reported better than expected third-quarter results on Monday, boosting its share price as the benefits of its cost-cutting programme took effect, but the company said it had still not seen a recovery in most of its markets.
The world's biggest lighting maker, in the top three for hospital equipment and Europe's biggest consumer electronics producer, said sales fell a comparable 11 percent on a year ago to 5.6 billion euros.
But earnings before interest, tax and amortisation (EBITA) jumped to 344 million euros ($507 million) from 57 million euros in the same quarter last year, beating the average forecast of 109 million euros given in a Reuters poll of analysts as the effects of cost cutting kicked in. [ID:nWEA4500].
The drop in sales was also not as bad as expected, analysts said, although an outright recovery was not in evidence.
"We remain cautious about the short-term outlook in the absence of structural recovery in the majority of our end-markets," Chief Financial Officer Pierre-Jean Sivignon told reporters.
The remarks echo comments made by competitors General Electric (GE.N) and Siemens (SIEGn.DE) that underlying recovery had not yet begun. [ID:nLT536858] [ID:nN28367629]
Philips said last month it saw some early signs of consumer confidence stabilising but Sivignon said visibility in its consumer markets was still very difficult.
"The proof in the pudding will be the selling season," Sivignon said. This is the moment that we can actually see if consumers are there," adding that the moment of truth would be Thanksgiving and Christmas.
Singapore sees recovery continue
Singapore's economy has surged for a second consecutive quarter, continuing the recovery from its worst recession.
Gross domestic product expanded at an annualised rate of 14.9% between July and September, following a revised 22% jump in the previous three months.
Singapore, which is heavily reliant on tourism, trade and finance, said a "clear recovery" was under way.
But it warned that woes in developed nations meant economic activity would remain below pre-crisis levels.
The economy also expanded from a year earlier for the first time since the third quarter of 2008, the Trade and Industry Ministry said. GDP was up 0.8% from the July to September period in 2008.
Despite the growth, Singapore still expects its economy to have shrunk during 2009 as a whole, though this contraction is expected to be between 2% and 2.5% rather than the 4%-6% range previously forecast.