Glance-STOCKS NEWS EUROPE-Eurazeo up 7 pct after Europcar results

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15:24GMT 01April2009
Eurazeo surges after Europcar results

French financial holding firm Eurazeo SA surges 7.1 percent after its unlisted car rental unit Europcar says it would not need refinancing before mid-2011.

'This adds to the realisation that overall results for Eurazeo are not as dramatic as the market thought,' says Exane BNP Paribas broker Fabien El Haik.

Shares in Eurazeo dropped nearly 40 percent since January, giving the group a market value of 1.1 billion euros ($1.45 billion). The stock lost more than 60 percent in 2008.

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15:00GMT 01April2009
ECB takes centre stage April 2; eyes also on Monsanto

The European Central Bank's (ECB) interest rate decision, due at 1145 GMT and followed by ECB President Jean-Claude Trichet's news conference at 1230 GMT, will be in the focus on Thursday.

The ECB is expected to cut euro zone interest rates to an all-time low of 1.0 percent in what could be its last rate cut for quite some time.



EUROPEAN COMPANIES

Oce NV Q1

Stolt-Nielsen Q1

Valora Holding FINAL

Barry Callebaut H1

BTG Plc TRADE

Chloride Group PLC TRADE

Treveria Plc PRELIM

Prezzo Plc PRELIM



U.S. COMPANIES

Monsanto Q2

Micron Tech Q2



ECONOMIC DATA/CENTRAL BANKS

0600 GB House prices March

0645 FR PPI February

1145 EZ ECB rate decision

1230 US Weekly jobless claims

1400 US Durable goods February

1400 US Factory orders February



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14:56GMT 01April2009
BME up on March trading data

Shares in Spain stock market operator BME rise more than 6 percent after March share trading volumes show a recovery from February, confirming a more stable trend in daily volumes.

Equity trading accounts for over half of BME's business.

Caja Madrid banking analyst Javier Bernat says BME will benefit from some of the Spanish government's economic stimulus measures in terms of liquidating operations related to the acquisition of assets from the banks or new debt issues backed by the government.

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14:37GMT 1April2009
Devgen rallies on Sumitomo deal

Shares in Devgen rally after the Belgian biotech group says it has renewed a research and development agreement with Sumitomo Chemical.

Under the three year deal, Devgen receives funding for research and is eligible for royalties on products. Devgen's statement did not disclose the value of the renewed agreement.

'In times like these, any source of funding for Devgen is welcome,' says KBC Securities analyst Jan De Kerpel.

The stock trades up 5.8 percent, outperforming the DJ Stoxx European Chemicals Index which is down about 1 percent. Devgen shares remain about 75 percent below their 52-week high of 15.42 euros reached on May 5 2008.

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13:38GMT 1April2009
Sepura higher; Citigroup upgrades

Shares in Sepura gain 3.1 percent as Citigroup upgrades its rating for the radio maker to 'buy' from 'hold' following the firm's trading update on Tuesday.

Citigroup says Sepura's update boosts confidence in the firm's competitive position with it continuing to execute on contract wins despite the uncertainties surrounding the pace of TETRA terminal adoption.

The broker says that Sepura's shares have fallen by around 30 percent since October as contract lumpiness continues to dog financial performance and end-market growth visibility.

Citigroup adds at current levels, it feels Sepura's competitive strength and growth profile outweighs the risk of terminal shipment delays.

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13:26GMT 1April2009
Gem Diamonds falls on results, placing

Shares in Gem Diamonds fall 13.4 percent after the company accompanies full-year results with plans to raise 75 million pounds via a placing, with the cash raised to be used to shore up its balance sheet.

Gem Diamonds swung to an annual pretax loss of $576.7 million, after impairment charges for lower diamond prices and restructuring of $546.5 million, from a profit of $68.4 million in 2007.

Citigroup says Gem Diamonds pre-exceptional pretax loss of $8 million was lower than the broker's forecast of a $7.5 million profit largely due to currency losses of $19 million.

'Given the sudden fall in both prices and volume the diamond industry has been placed on life support,' it says, repeating its 'hold' rating on the stock.

The broker says Gem Diamond's capital raising is necessary in order for the company to weather the storm, and longer term it continue to see value in the company's unique Letseng mine in Lesotho.

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13:27 GMT 01April2009
Telecinco up on merger comments

Shares in Telecinco rise 2.9 percent after the broadcaster's chairman says on Wednesday the company will study possible mergers after a law change on cross shareholdings in the media sector.

'Telecinco could play a part in this process, with (TV channels) La Sexta and Cuatro possible complimentary partners,' said Sandra Sousa, analyst at Espirito Santo.

Sousa notes Telecinco has suficient financial muscle to take part in the a merger process without assuming debt.

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12:26GMT 01April2009
REC falls, Fondsfinans cuts to 'sell'

Shares in Norwegian solar energy firm Renewable Energy Corp. (REC) fall 2.6 percent as broker Fondsfinans cuts its recommendation to 'sell' from 'neutral'.

'Our key concerns are financing, weak demand, falling prices and contracts,' Fondsfinans says in a note.

The brokerage says about 30 percent of REC's contract portfolio is at risk as silicon wafer customers are in a difficult position and may need to renegotiate contracts.

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12:20GMT 01April2009
Generali sinks, hit by S&P downgrade

Assicurazioni Generali, Italy's biggest insurer, is down 4.5 percent, hit by a Standard & Poor's downgrade of its debt, traders say.

The Trieste-based insurer is the biggest loser in the DJ Stoxx insurance index, which is up 0.18 percent.

Standard & Poor's cut Generali's long-term credit rating to 'AA-' from 'AA' on Tuesday and changed its outlook to stable from negative. A Generali spokesman said the move would not change the company's financial plans.

Credit Suisse cuts its price target to 15.70 euros from 18.40 euros and keeps its 'underperform' rating.

'Poor results, bigger dividend cut leave few reasons to own' the shares, it says in a note.

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11:55GMT 01April2009
ViaLogy up; raises stake in Texas well

Shares in ViaLogy Plc rise 6 percent after the provider of sensor technology to oil explorers increases its stake in the Galba Prospect oil well in Texas to 10 percent from 5 percent through the exercise of an option with a U.S.-based explorer.

'Obviously this is good news, but we had not previously been aware that it was an option, so it is something of a surprise,' says Seymour Pierce analyst Derek Brown, who has a 'buy' rating on the stock.

'ViaLogy was forecasting revenue of about $300,000 over the lifespan of the well, based on a 5 percent interest, so about $600,000 now looks possible.'

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11:37GMT 01Apr2009
Silence Therapepeutics falls on lack of deal news

Shares in gene company Silence Therapeutics fall 10.9 percent as investors were disappointed that there were no new announcements on licence deal progress alongside the full year results.

'I think it's just a little bit of disappointment that there's not more of an insight into what deals could be achieved,' says Matrix analyst Navid Malik.

Nomura, which has a 'buy' on the stock, says: 'We had expected more AstraZeneca-like deals to be completed in 2008 and continue to expect them in 2009.'

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11:27GMT 01Apr2009-HSBC firms as nil
paid rights nears end

Shares in HSBC rise 3.3 percent as the last day of trading for its nil-paid rights related to its record 12.9 billion pound fundraising lends support, dealers say.

HSBC's nil-paid rights shares rose 9.2 percent to 154.5 pence apiece as the London listed shares rise to 408 pence aided by short-covering of positions, dealers say. The new shares are being offered to investors at 254 pence each, representing a 38 percent discount to the current price.

HSBC has largely avoided the troubles faced by other UK bank rights issues last year, and take-up for its offer is expected to exceed 90 percent.

'It's one of the quality banks and after waiting a long time for the deal (rights issue) to come, people now seem happy it was the right thing to do,' one dealer says.

The deadline for London investors to take up their rights is 1100 BST on Friday.

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11:27GMT 01April2009
UK rail operators gain on hopes for state help

Shares in Britain's big five rail groups are all on the rise due to renewed hope that the government will step into help those whose franchise agreements were struck at a time when passenger numbers were soaring -- a trend now in reverse thanks to the recession and higher unemployment, analysts say.

'Is it possible the Department for Transport will renegotiate? Yes, it's possible,' one analyst says, on condition of anonymity.

National Express, the firm seen as most vulnerable to a downturn due to its ownership of the London-Edinburgh mainline and high debt, is up 8 percent -- clearing losses made earlier this week.

Stagecoach is up 6 percent, Arriva 5 percent, Go-Ahead 3 percent, and FirstGroup 2 percent.

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11:21GMT 01April2009
Spectrum Inter. up; Arbuthnot initiates

Shares in Spectrum Interactive, the public internet services and managed payphones provider, jump 25 percent as Arbuthnot Securities initiates coverage with a 'strong buy' recommendation after recent interim results.

On Tuesday, the company unveiled pretax profit of 0.7 million pounds for the six months to December 2008, in line with the same period the previous year, with interactive revenues up 17 percent to 4.2 million pounds.

'We are encouraged by the strong profits and positive cash and believe the current cost base can support further increases in revenue,' says Arbuthnot in a note.

The broker notes that Spectrum has been successfully realigning its business away from the declining payphone market, and moving into the WiFi and internet desk markets.

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11:14GMT 01April2009
FTSE Small caps up 0.3 percent at midday

The FTSE Small cap index is 0.3 percent higher in mid session trade, outperforming London's blue chip stocks, which are 0.6 percent lower, but underperforming the FTSE 250 index which climbs 0.9 percent.

Speedy Hire rises 21.5 percent after the biggest tool-hire company in Britain says it has renegotiated its 325 million pound loan facility on revised terms with all its lenders, with broker Altium saying the news is 'positive' and KBC Peel Hunt saying the company is 'well positioned.'

Software firm Innovation Group slumps 31 percent as the company says talks with private-equity firm Carlyle Group about a possible offer have been terminated, with Altium Securities cutting its rating to 'hold' from 'buy'.

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11:09GMT 1April2009-Seat PG halted limit
up as cap hike continues

Italian telephone directories company Seat Pagine Gialle SpA shares are suspended limit up, indicating a gain of almost 29 percent on hopes for completion of its rights issue.

Obstacles to completing the 200 million euros ($264 million) capital increase appear to have been overcome, one broker says.

Seat priced its rights issue last week at a deep discount in a move analysts see as being aimed at preventing underwriter Mediobanca SpA from becoming a shareholder.

Seat shares rose 152 percent on Monday, when the capital hike started, and a further 15.8 percent on Tuesday. The company is selling 226 new shares for every five already held at a price of 0.106 euros each.

The rights are currently trading at around 4.5 euros each, making it cheaper to buy new Seat shares through the rights, another analyst says.

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10:44GMT 1April2009
Bulgari falls, brokers cut estimates

Shares in Italian jeweller Bulgari fall some 3 percent, underperforming Milan's SP&Mib, down 2 percent with two brokers cutting their estimates for this year and next.

Banca IMI downgrades its rating to 'reduce' from hold'.

'For 2009-10, we have cut our turnover and bottom-line forecasts by approximately 3 percent and 30 percent respectively,' it says in a note.

Deutsche Bank cuts its 2009 and 2010 earnings estimates by 22 percent and 12 percent respectively.

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10:23GMT 01April2009
Deceuninck rallies on covenant extension

Shares in Belgian construction products supplier Deceuninck soar 12.1 percent after the company says it expects a deal in early April with lenders and noteholders to extend a standstill of its violated debt covenants until May 31.

Deceuninck revealed previously that it had violated debt covenants, but that it was carrying out talks with lenders, had secured a freeze for its covenants, and would likely refinance its debt and carry out a capital increase in the first half of 2009.

'The conversations concerning a lengthening of the standstill (of violated debt covenants) up to May 31, 2009 are in an advanced stage and it is expected that these can be wound up in the beginning of April,' Deceuninck writes in an annual report published on Tuesday evening in Dutch, translated by Reuters.

Deceuninck's shares have fallen more than 80 percent in the last year.

'This is something that at first sight may be positive, but it doesn't change the problems Deceuninck is facing at the moment - they still need to restructure the debt, and after that have a capital increase,' says Petercam analyst Emmanuel Carlier.

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10:21GMT 01April2009
Kalahari up; Polo increases Extract interest

Shares in Kalahari Minerals gain nearly 11 percent as Polo Resources continues its stake building in Extract Resources, in which Kalahari Minerals has a 38.85 percent stake.

Polo Resources has now taken its interest in Extract to 6.8 percent after it announced on Tuesday that it had raised its holding to 5.7 percent.

'Given the buying by Rio Tinto and Polo on market, we see accelerated value add for shareholders,' says Nick Mellor, Ambrian analyst.

Rio raised its stake in Kalahari Minerals to 15.8 percent on Feb. 17.

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10:15GMT 01April2009
ThyssenKrupp drops as Morgan Stanley cuts price target

Shares in ThyssenKrupp fall 2.2 percent, as Morgan Stanley lowers its price target for Germany's largest steel maker to 11 euros from 16 euros while maintaining its 'underperform' rating.

The brokerage says in a note to clients that the new price target is mostly due to downwardly revised steel price forecasts and lowered management guidance.

It says the company has taken drastic states 'after the recent profit warning and the simultaneous announcement of significant restructuring to cope with the recession.'

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09:55GMT 01April2009
Manitou falls on U.S. Gehl unit

Shares in Manitou fall as much as 11 percent after the French maker of forklifts posts a drop in 2008 net profit and says its U.S. Gehl unit could file for Chapter 11 bankruptcy protection.

'Depreciation relating to Gehl reduces 2008 net profit to 4 million euros whereas the market was expecting 45-50 million and the lack of an agreement with banks relating to Gehl is weighing on the stock,' Portzamparc analyst Aurelien Ripoche says.

Manitou can pursue further talks with its banks over Gehl or let it file for Chapter 11, Ripoche says, adding: 'The best is to find an amicable solution.'

Shares in the company are 3.1 percent lower at 4.70 euros by 0953 GMT.

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09:45GMT 01April2009
Sportech up after submits VAT claim

Shares in betting firm Sportech gain more than 3 percent after the company says it has submitted a claim to Her Majesty's Revenue & Customs to recover 'in excess of 40 million pounds' in overpaid VAT for its Spot the Ball game offered between 1979 and 1996.

'We caution a successful outcome is not guaranteed and the process is likely to drag on for a number of years, but see the claim as yet another positive catalyst which is not, in any way, reflected in the current 5 times P/E, 5 times EV/EBITDA, 15 percent FCF yield valuation,' Investec Securities says in a note.

The broker highlights that the amount could increase to over 100 million pounds including interest.

Investec has a 'buy' rating on the stock.

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09:35GMT 01April2009
Novo Nordisk bounces as drug hopes revive

Shares in Novo Nordisk bounce back 4 percent, after heavy falls on Tuesday, as bullish analysts predict its diabetes drug Victoza should still win U.S. approval, despite tough questions from Food and Drug Administration staff.

Brian Bourdot of Deutsche Bank reiterates his 'buy', arguing an FDA panel on April 2 is likely to recommend the drug, given its unequivocal efficacy and the fact Novo has sufficient data to assuage immediate concerns over cardiovascular risks.

FDA staff, in briefing documents prepared ahead of the meeting, had queried the scope of the cardiovascular data and also highlighted a possible thyroid cancer link.

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09:32GMT 01April2009
Plethora Solutions up on license payout

Shares in Plethora Solutions climb 3.1 percent after confirming an amendment to its license for PSD502 -- a premature ejaculation drug -- with Sciele Pharma Inc which will boost its income in the short term.

The amendment means, Sciele has made additional license payments totalling $13.7 million to Plethora and its debt providers, with the company retaining $7 million.

FinnCap says in a note: 'This is a bittersweet deal: its conclusion indicates that the FDA meeting had a positive outcome as this was a condition of the amendment, and Sciele will now assume all U.S. development costs (thereby cutting cash burn), however Plethora has had to sell the U.S. rights to PSD502 to generate cash.'

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09:15GMT 01April2009
Umicore sinks on on RBS downgrade

Shares in Belgian metals and specialty materials maker Umicore fall as much as 7.6 percent after RBS downgrades it to 'sell' from 'buy' and drops its target price to 12 euros from 17 euros, citing its automotive exposure and the expiration of hedging contracts in 2009 and 2010.

'Umicore has the highest automotive exposure of the sector,' write RBS analysts Pieter Zwinkels and Mutlu Gundogan in a research note, adding that the expiration of hedging contracts will dent Umicore's precious metals services performance in 2012 unless there is a strong recovery in precious metals prices.

Umicore shares are down 7 percent at 12.94 euros, underperforming the DJ Stoxx European Basic Resources Index which is down about 2.7 percent. Umicore has lost about 65 percent from its 52-week high of 37.36 euros hit on May 21 2008.

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09:10GMT 01Apr2009
Regal Petroleum up; funding fears over played

Shares in Regal Petroleum climb 7.7 percent as broker Mirabaud says market fears over group funding and the risks associated with its Ukranian operations have been over played, leading the broker to repeat its 'buy' rating.

Mirabaud says in a note that the chances of a funding shortfall leading to a cutback in costs and drilling activity are less than the current market valuation implies.

Regal has cash of $88 million, which is more than enough to complete the two wells underway in Ukraine, the broker says.

Mirabaud adds that worries over challenging political and economic environment in Ukraine, which is home to the company's core asset base, should ease with the Former Soviet state showing some signs of stabilisation.

Regal's shares hit an all-time low in early March of 25.5 pence.

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09:06GMT 01April2009
GW Pharma up on milestone payment

GW Pharmaceuticals' shares rise 8.2 percent after the company says it will receive 8 million pounds from its Spanish licensing partner Almirall for its cannabis-based medicine Sativex in the next few weeks.

KBC Peel Hunt says the milestone payment demonstrates Almirall confidence in the drug, which treats spasticity in patients that have failed all previous therapies.

The broker repeats its 'buy' rating on GW Pharmaceuticals.

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08:53GMT 01April2009
TUI Travel higher on M.Stanley upgrade

Shares in TUI Travel add 1 percent lifted by an upgrade to 'overweight' from 'equal-weight' by Morgan Stanley with an increased target price of 320 pence, ups from 300.

The broker recommends investors switch to TUI Travel from mid cap peer Thomas Cook Group which it downgrades to 'equal-weight' from 'overweight' with a decreased target price of 270p, down from 290.

Shares in Thomas Cook Group fall 3 percent.

Morgan Stanley says it increases its 2009 forecasts for both UK travel companies following solid trading news so far this year, but remains below consensus on Thomas Cook Group in 2010 due to its higher exposure to the tougher Scandinavian market and as the firm is already approaching peak margins.

The broker says Kuoni looks good value, but says it is a little too early to buy. Kuoni shares in Zurich lose 1.3 percent.

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08:58GMT 1April2009
IPTE slides after profit warning

Shares in Belgian electronics firm IPTE sink after it issued a profit warning after trading on Tuesday, alerting that first quarter 2009 sales would drop 20 to 30 percent from the same period in 2008 and that it expects an operating loss of 1 to 2 million euros for the first quarter of 2009.

The stock trades down 6.5 percent to 1.45 euros, underperforming the DJ Stoxx European Technology Index which is down 1.8 percent. IPTE has fallen more than 85 percent from its 52-week high of May 15 2008.

ING analyst Olivier Van Doosselaere notes electronic subcontracting, IPTE's business, has been one of the industries most affected by the economic slowdown.

'So I think that until we see any potential revival or restocking possibility in their clients, that will be something that keeps people away from investing in IPTE,' says Van Doosselaere, who has a 'hold' rating and 1.50 euro target price for IPTE.

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08:52GMT 01April2009
Speedy Hire up on revised banking facility

Shares in Speedy Hire Plc rise 28 percent to 161 pence after the biggest tool-hire company in Britain says it has renegotiated its 325 million pound loan facility on revised terms with all its lenders.

'Financing has been a major concern for Speedy Hire and it is thus very positive that these have been laid to rest for the present,' Altium's Nick Spoliar says in a note.

Brokerage KBC Peel Hunt, which has a 'buy' rating on the stock, notes the
outlook is still challenging for Speedy Hire but the company is well positioned.

Analyst Andrew Nussey says: 'Tight operational management and exposure to the 2012 Olympic Games should ensure that Speedy emerges as a relative winner from these more challenging markets.'

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08:48GMT 01April2009
UK banks retreat, JPMorgan cuts price targets

UK banks are in broad retreat after sharp gains the previous session, with a downbeat note from JPMorgan adding to pessimism on the volatile sector.

JPMorgan says it expects an increased cost of doing business due to tougher regulation and 'higher market risk/counterparty risk recognition'.

The broker maintains an 'underweight' stance on Royal Bank of Scotland , Lloyds Banking Group and Barclays and cuts its price targets on RBS to 17 pence from 25 pence and Lloyds to 14 pence from 67 pence.

Lloyds is among the heaviest fallers on the FTSE 100, down 5 percent to 67.2 pence, while RBS is down 4.1 percent and Barclays is off 1.7 percent.

Heavyweight HSBC, however, gains 1.1 percent, capping the sector's losses, with the FTSE 350 banking index down 0.5 percent.

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08:25GMT 01April2009
K+S drops on report U.S. govt plan

Shares in K+S fall 3.1 percent lower, making them one of the leading decliners among German large caps as traders point to pressure from a report in Wall Street Journal that the U.S. Agriculture Department plans to idle millions of acres of land and Russian peer Urakali says that the outlook for potash remains unclear.

'Both the uncertain outlook at Urakali and the report on the U.S. Agricultural Department idling fields in the U.S. are putting the shares under pressure,' says Equinet trader Anup Dodia.

The trader notes that Urakali operated at 35 percent capacity in the first quarter and that production dropped 66 percent due to a sharp drop demand for potash.

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08:30GMT 01April2009
Kloeckner & Co drops; WestLB downgrades

Shares in German metals trader Kloeckner & Co fall 3.1 percent in Frankfurt's midcap index after WestLB cuts its rating in the stock to 'neutral' from 'add'.

'The current situation (Q1) -- on which the steel-trader will comment in detail mid May -- provides no indication of an imminent recovery of steel demand or steel prices,' the brokerage writes in a note.

The company on Tuesday released final 2008 full-year figures and refrained from giving an outlook for 2009.

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08:26GMT 01April2009
Carluccio's higher after trading update

Shares in Carluccio's, the Italian restaurant and retail group, jump almost 9 percent after the company says it traded in line with internal expectations in its first-half, with turnover up by 14 percent.

'The balance sheet remains strong, the dividend yield is secure and the free cash flow yield of 17 percent is particularly noteworthy,' says Altium Securities in a note, keeping its 'buy' recommendation on the stock.

The broker says that with the shares trading on a 5 times EV/EBITDA multiple, it sees room for significant upside when cyclical recovery plays gain greater traction.

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07:53GMT 01April2009
Lafarge down as launches rights issue

Shares in Lafarge drop 4.4 percent -- the biggest laggards on the CAC 40 -- after the world's biggest cement maker launches a 1.5 billion euro rights issue at a subscription price for the new shares at 16.65 euros, compared with Tuesday's closing price of 33.89 euros.

'The dilutive effect is dragging down the shares, it's a knee-jerk reaction,' one trader says.

'The transaction will be carried out at a discount of 48 percent to the last quoted share price, excluding the impact of the dividend ... This discount is slightly lower than that of Saint-Gobain,' another trader says.

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07:50GMT 01April2009
UK small caps slip 0.1 percent early

The FTSE Small Cap index are steady in early trade, outperforming blue chips which drop 1.4 percent, while midcaps are 0.6 percent weaker.

Software firm Innovation Group slides over 28 percent as the company says talks with private-equity firm Carlyle Group about a possible offer have been terminated, prompting Altium Securities to cut its recommendation to 'hold' from 'buy'.

Speedy Hire jumps almost 17 percent as the tool-hire company says it has revised a 300 million pounds loan facility with more suitable covenants, and that it expects full-year adjusted pretax profit to meet market estimates.

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07:38GMT 01April2009
SocGen falls as bank sees further writedowns

Shares in Societe Generale fall 4.8 percent --the biggest losers on Europe's Stoxx 50 blue chip index -- after the French bank says it expects additional writedowns of risky assets in the first quarter 'at manageable level'.

'Taking all of the group's comments into account we expect that SG should hover around break-even in Q1. Our current forecast is for a net profit of 61 million euros,' Credit Suisse analysts write in a note.

So far this year, Societe Generale is down 22 percent, while French rivals BNP Paribas and Credit Agricole are up 0.6 percent and 2 percent respectively.

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07:25GMT 01April2009
Vodafone up, Telefonica down on Goldman note

Shares in Vodafone and Telecom Italia are among the top gainers in a weaker broader European market after Goldman Sachs upgrades them to 'buy' from 'neutral'. Goldman also adds the UK mobile operator to its 'conviction buy list'.

Vodafone is up 2.7 percent and Telecom Italia rises 2.6 percent, while Belgacom advanced 2.4 percent after the broker lifts its rating to 'neutral' from 'sell'.

Telefonica and BT Group lose 1.6 and 2.4 percent, respectively after Goldman downgrades them to 'sell' from 'neutral'. The broker also adds the Spanish telecom firm to its 'conviction sell list'.

'We expect rising macroeconomic headwinds in Spain and Latin America will increase concerns about Telefonica's ability to meet its long-term targets and we see limited scope for positive earnings revisions as the year unfolds,' says Goldman Sachs.

Goldman also cut Teliasonera to 'sell' from 'neutral'. The stock is off 0.5 percent, while the DJ Stoxx European telecom index is up 0.8 percent.

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07:31GMT 01April2009
Innovation falls as Carlyle ends offer talks

Shares in software firm Innovation Group slump over 28 percent as the company says talks with private-equity firm Carlyle Group about a possible offer have been terminated, with Altium Securities cutting its rating to 'hold' from 'buy'.

'Clearly this is disappointing news that will send the share price into reverse in the short term,' Altium says in a note.

However, the broker says this should not detract from the fact that Innovation continues to trade well and win contracts, as evidenced by Tuesday's wins.

'We remain of the view that there is inherent value in Innovation Group but we also recognise that the recent stop/start history of approaches may well put other would be suitors off in the short term,' says the broker.

Altium reduces its target price to 8 pence from 15 pence.

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07:27GMT 01April2009
Escada gains on upbeat management comments

Shares in German fashion house Escada rise 6.3 percent to 2.02 euros and top gainers in Germany's small-cap index after the company says in its first-quarter earnings report it thinks necessary capital measures can be realised. Escada said in March it needed to raise additional funds by the middle of its fiscal year to secure its survival.

'The declaration of the company's management sounds more realistic but positive,' says DZ Bank analyst Christian Douglas.

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07:27GMT 01April2009
D.Boerse top DAX gainer as funds' stranglehold slips

Deutsche Boerse shares rise 2.8 percent, topping the DAX leaderboard and outpacing an exchange peer group index, after news late on Tuesday that activist U.S. investment fund Atticus has reduced its stake in the German stock exchange operator to below 3 percent.

The news followed an announcement by Atticus and UK hedge fund TCI that the duo, which together used to own almost one-fifth of Boerse, had terminated their 'acting-in-concert' agreement aimed at boosting shareholder value at Boerse.

'The siege has ended,' says Equinert analyst Christian Muschick, who rates the Boerse stock 'buy' with a price target of 58 euros. 'It thus should become easier for the management to focus on long term development,' he says.

DZ Bank analyst Matthias Duerr reiterates his 'buy' rating and fair value of 70 euros, saying: 'Fears of a possible share overhang from large investors should no longer persist.'

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06:49GMT 01April2009
D.Logistics seen up on dividend announcement

Shares in German logistics company D.Logistics AG is indicated 3.2 percent higher in pre-market trade, after the company announces its supervisory board has accepted the management's proposal to propose a 2008 dividend of 0.07 euros per share.

'The dividend yield of almost 7 percent is remarkable. The share price of D.Logistics has already rebounded slightly over the last two weeks,' Close Brothers Seydler writes in a note.

'From technical viewpoint it would be another driver for the stock price if D. Logistics reaches new 6-month-highs, which are only a few cents away.'

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06:32GMT 01April2009
Vivacon seen plunging on prelim FY results

Shares in German property trading company Vivacon are indicated 18 percent lower in pre-market trade after the company says it expects a net loss of 160-170 million euros ($213.2-226.5 million) for the financial year 2008.

'We see no positive sign at all,' says DZ Bank analyst Hasim Sengul, who rates the stock 'sell'.

'The equity ratio will be at 12-15 percent in our model now, and we think this makes the situation even more problematic,' Sengul says.

A Frankfurt-based trader says the Reuters consensus called for a slightly positive result in full-year 2008.

'The (company's announcement) ... should lead to some more uncertainty,' the trader says.

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06:27GMT April12009
Vienna Insurance set to rise, plans bonus div payout

Shares in Vienna Insurance Group AG are set to rise early after the company said late on Tuesday it plans to pay a surprise bonus dividend as well as its regular payout.

'With an implied 10 percent yield, limited asset side risk and 16 percent 2008 volume growth reported, we see significant upside,' says Citigroup analyst William Elderkin in a note.

Vienna Insurance also reported a 24 percent rise in 2008 profit, boosted by growing premium income in emerging Europe.

Shares in Vienna Insurance, which have lost 10 percent this year, closed up 7.6 percent at 21.63 euros on Tuesday, before the company released its annual results.

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06:21GMT 1April2009
European stock futures point to fall

European shares are set to fall on the first day of the second quarter after gaining strongly in the previous session, with world leaders set to meet at a summit in London to tackle the global financial crisis.

Futures for the Eurostoxx 50, German DAX futures and French CAC futures are down 0.7-0.8 percent.

With a very thin corporate diary, investors' focus will be on macroeconomic matters, such as the euro zone unemployment figures, due at 0900 GMT, and the G20 meeting of world leaders.

U.S. stock futures fall on a media report that U.S. President Barack Obama had determined a prepackaged bankruptcy was the best option for U.S. auto makers General Motors and Chrysler.

General Motors fell 28.2 percent on Tuesday.



No major European and U.S. companies reporting on Wednesday.



MACRO (GMT)

0600 DE Retail Sales

0730 CH PMI

0743 IT Manufacturing PMI

0748 FR Manufacturing PMI

0753 DE Manufacturing PMI

0758 EZ Manufacturing PMI

0828 GB CBI Manufacturing PMI

0900 EZ Unemployment

1100 US Mortgage data

1130 US Layoffs

1215 US ADP Employment

1400 US ISM Manufacturing

1400 US Pending Home Sales

US Car sales, truck sales


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Keywords: MARKETS EUROPE STOCKSNEWS =5

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