European Indexes End Mostly Higher

LONDON

The FTSE 100 closed firmly higher as investors cheered after ENTERPRISE INNS [+29.20%] said it was now eligibe to convernt to REIT status provided some internal restructuring was done. The managed pubs sector was bubbling with double-digit gains: MARSTONS [+17.29%], GREENE KING [+10.37%]. Energy stocks fired up as WTI traded at US$121.80/bbl. Tobacco stocks added to the highs as the market puffed on an upbeat statement from BAT [+1.75%], that featured a 17% rise in 1Q adj dil EPS. The cigarette maker said the year had got off to a great start. INTERCONTINENTAL HOTELS [+3.21%] unveiled forecast-beating 1Q underlying op profit figures and said was in a good position for continued growth. LIBERTY INTERNATIONAL [-2.32%] said for quarter ended 31 March, NAV fell 6.57% to GBP11.81/sh citing unsettled UK property market conditions. OLD MUTUAL [-3.66%] plummeted after Nedbank said it expects lower 1H earnings growth. BAE SYSTEMS [-0.43%] said it was trading in line. INTERNATIONAL POWER [-2.70%] said trading was in line and is to issue a bond. EASYJET's [+3.11%] 1H loss widened as it warned on the oil price, but summer bookings rose y/y. ANGLO IRISH BANK [+5.15%] posted a 17% rise in 1H underlying PTP, but retained 15% FY EPS growth guidance. SAVILLS [+4.38%] said UK, US trading was challenging. RANK [-5.57%] said the smoking ban and adverse gaming rules changes resulted in lower revenue.

PARIS

The CAC 40 [+0.68%] closed higher, with Wall Street in the red. Data-wise, March's pending home sales fell 1%, in line with expectations. WTI is at US$122.06. Locally, LAFARGE's [+5.06%] 1Q core earnings topped expectations - with net income group share up 49% to EUR 150m vs consensus of EUR 122m. TOTAL [-0.39%] posted 1Q08 adjusted net income of EUR 3.25bn, +9% y/y, vs consensus of EUR 3.24bn. ALSTOM [-2.24%] unveiled FY net profit ahead of expectations at EUR 852m vs EUR 547m in 2007. LAGARDERE [+2.38%] reported 1Q revenues of EUR 1.814bn vs EUR 1.79bn consensus. FRANCE TELECOM [+1.82%] tabled 1Q EBITDA of EUR 4.79bn, up 2.8% y/y and broadly in line with expectations. AXA [+1.1%] posted 1Q new Life & Savings sales on an APE basis of EUR 1.939bn, down 6.1% y/y. EDF [-0.33%] reported 1Q08 sales of EUR 18.3bn, up 5.2%, in line with consensus. CAP GEMINI [+2.55%] tabled 1Q sales in line with consensus at EUR 2.185bn, down 1.31% y/y. In other news, a VINCI [+1.37%]-led j/v, including Germany's Hochtief, has won a contract worth US$3bn to design and build the world's longest bridge between Qatar and Bahrain. In the wider market, TECHNIP [+6.14%] climbed on market rumour of interest from US oil services firm Schlumberger. EULER HERMES's [-15.13%] 1Q net consolidated income fell 65.6% y/y. JC DECAUX [+7.24%] posted sales up 1.9% to EUR 482.2m, better than expected.

FRANKFURT

Xetra-Dax [+0.84%] finished Wednesday with firm gains as Wall Street remained unable to break even, with WTI at US$122.06. Earnings results were on top of the news agenda. DEUTSCHE BOERSE [+2.23%] posted 1Q EBITA of EUR 425.8m, up 42% y/y and higher than expected, saying it expected a new record for the year as a whole. COMMERZBANK [+1.63%] made strong gains, along with the banking sector as a whole, despite its 1Q net earnings of EUR 280m falling short of expectations. HENKEL's [+5.47%] quarterly EBIT came in at EUR 320m, down 0.9% y/y a touch lower than expected, on sales down 3.2% at EUR 3.162bn. The strong euro and higher costs weighed. TUI [+0.92%] reported a 1Q u/l EBITA loss of EUR 196m compared to EUR 248m in the red y/y. It added that the separation process for its shipping division was going according to plan. While preliminary figures for the year ended 31 March were broadly in line with expectation, with EBIT at EUR 268m and net profit at EUR 142m. HEIDELBERGER DRUCKMASCHINEN [+9.3%] cautioned that it expected core earnings to decline in its current fiscal year. AIR BERLIN [+1.49%] was well bid after announcing passenger count up 6.5% in April. Finally, disgruntled over the its acquisition of Debitel, UNITED INTERNET [+0.45%] sought a court order to call a shareholder meeting at FREENET [+1.23%].

SPAIN

Spanish shares ended higher, with Wall Street trading lower. March's pending home sales fell by 1% and WTI was at US$121.83/bbl. Of local note, ENAGAS [-0.82%] reported 1Q08 results in line with forecasts, with net profit of EUR 64.8m. Enagas also presented its strategic plan, saying it sees 2008 EBITDA up 7.5% y/y. In further earnings news, CEPSA [-0.36%] said 1Q08 net profit fell 42% y/y to EUR 119m due to lower refining margins and the weaker US$. ADOLFO DOMINGUEZ [-9.19%] took a tumble after revealing net profit in the first two months of the year fell 93.4% to EUR 0.4m. In other news, BBVA [+0.4%] intends to double its investment in China Citic Bank to 10% and in Citic International Financial Holding to 30%, according to ABC. COLONIAL [+1.02%] said the syndicate of banks that have swapped debt for equity have taken three of the twelve seats on the board. TELECINCO [-3.32%] fell as it has paid today a EUR 1.30/sh dividend, and ahead of results tomorrow which are expected to be weak. CINTRA [+2.47%] is also due to report tomorrow. In broker moves, UBS downgraded CATALANA OCCIDENTE [-5.94%] to neutral.

MILAN

Italian equities ended Wednesday's session mildly lower as Wall Street was trading in the red after March's pending home sales fell 1%. Back home, attention was on the 1Q earnings season. LOTTOMATICA [-0.44%] disclosed 1Q net profit before minorities of EUR 55m, up 22% y/y, while sales increased 3% to EUR 449m. BANCA GENERALI [-2.16%] reported a 1Q net loss of EUR 700,000 compared to a net profit of EUR 4.7m for the same quarter a year ago. FASTWEB's [+3.99%] 1Q net loss narrowed to EUR 11m. ITALCEMENTI [-0.4%] posted 1Q net profit of EUR 81.3m while revenues fell 4.5% to EUR 1.3bn. The cement maker expects 2008 operating results in line with 2007. TENARIS [-0.67%] disclosed that 1Q net profit fell 1.8% to US$500m. PIAGGIO [-2.31%] disclosed 1Q revenues of EUR 363.9m [vs cons of EUR 369m]. Away from earnings, La Repubblica wrote that Italy's post office, Posta Italiana, could be interested in acquiring ALITALIA's [-5.0%] cargo business. Moody's cut its outlook for UNICREDIT's [+0.47%] debt to 'negative' from 'stable' after it announced write-downs last month resulting from the global market turmoil. However, Moody's kept its 'stable' outlook for the bank's German unit HVB. In late news, ALLEANZA's [+1.79%] CEO Ugo Ruffolo handed in his resignation today. In broker action, Deutsche Bank cut BANCO POPOLARE's [+0.5%] target to EUR 20.10.