European Trading

Europe's Energy Plan

2007-01-08T14:22:00.000Z

In 2 days, the European Commission will reveal it's plan for alternative energies, that has already fueled an increase in wind turbine and solar energy power plants all over the continent.

You can read some information on today's article:

the European Commission is presenting an energy "roadmap" on Jan. 10 that aims to steer the bloc’s 490 million people in a different direction.

The policies, of unprecedented scope, will carry a plain warning: High and volatile oil prices, surging demand, unreliable supplies and global warming compel Europe to reconfigure its energy supply before it’s too late.

read the rest here

Europe eclipses Wall Street

2006-12-27T05:03:00.000Z

As seen in the news:

Boom-time Europe eclipses Wall Street Shanny Basar and Heidi Moore
The balance of power is shifting across the Atlantic at top US investment banks

''Many of the longstanding barriers to doing business in Europe have started to disappear. The myth of the single European market is gradually becoming reality, while the progress of Europe’s emerging economies has gathered steam. ''

''Bear Stearns, widely seen as the most American of the bulge-bracket banks, has seen its non-US operations become more profitable than its domestic business, according to Hecht. He said Bear Stearns’ overseas operations have grown to $1bn (€760m) in annualised revenues and the firm plans to get 25% of its revenues internationally, compared with today’s 13%.''

Original article in Financial News online

German jobless rate falls

2006-12-01T13:05:00.000Z

After four painful years the recovering Germany economy finally creates enough employment, pushing the latest jobless figures below 4 million.
One of the late signs of a recovering economy is the improvement of the labour market, much like we saw in the 2003-2004 economic recovery in the USA.

The unadjusted unemployment rate is now nine point six percent.

The Federal Labour Agency claims the data means the labour market has turned, and that Germany is now one of the industrialised world's fastest growing economies.

Spain's GDP up 3.8 %

2006-11-23T21:03:00.000Z

One more example of the thriving Spanish economy, and the effects of booming tourism growth.

Spanish gross domestic product in the third quarter grew 0.9 percent from the second quarter and 3.8 percent on the year, according to data released Wednesday by the National Statistics Institute.

Spain's economy is one of the Europe's fastest growing for over a decade, due primarily to strong internal consumption and 'Bubbling' housing market. The IBEX, Spain's stock market, is one of the top world performers in developed countries, and should bring even more promise to all South European Economies.

Other European stories:

A New Labor Law for Europe?

The European Commission will debate minimum rights for non-standard workers and how labor laws should reflect the changing definition
The European Commission will on Wednesday (21 November) launch a public debate on whether the EU needs new labour laws to define a 'worker' in the EU or minimum rights for workers with non-standard contracts.

In Business Week, read the rest here

NYSE, Euronext bid gaining approval

2006-11-21T02:43:00.000Z

The Euronext / NYSE merger seems each week closer, and looks like it won't take many more weeks for us to see the deal being closed.

Europe: NYSE sees Euronext bid gaining approval

"We're hoping in a couple of weeks that will be clarified for everybody," Chai said at an investor conference in New York that was broadcast on the Internet. "Ultimately, I do think we'll get there. I don't think that will slow us down."

NYSE Group plans to schedule a shareholder vote next month on its cash-and-stock bid for Euronext, which is now valued at $13.6 billion. Deutsche Börse's decision to withdraw its bid for Euronext on Wednesday cleared the way for NYSE Group.

...

Euro-zone growth slowed

2006-11-16T01:51:00.000Z

The economy in the EU euro-currency area grew by 0,5% in the last quarter, below the forecast of 0,7% and down from 0,9% in the second quarter.

We had less than expected growth in Germany and Italy, and grow in EU seems to have peaked, for this year at least, even if it is without rising inflation, that is expected to be 2,5% this year.

But since we live in a global economy, the performance of the U.S. economy in this next quarter will eventually boost Europe's growth. So the slowing growth is somewhat related to a more global slowdown in the economy.

The big surprise (or maybe not) is the fact that Spain remained even in the last three quarters with a 0,9% growth in each, maintaining the relatively strong GDP figures.
No big news here since Spain is now being chosen by international investors for the great performance of their markets, and is sided in performance with China.

Vestas Wind Systems

2006-11-13T11:56:00.000Z

Vestas Wind Systems is one of the biggest in wind power industry, Denmark-based company
engaged primarily in the development, manufacture, sale, marketing and maintenance of wind power systems that use wind energy to generate electricity. Its product range includes land and offshore wind turbines capable of generating between 850 kilowatts and 4.5 megawatts as well as Supervisory control and data acquisition (SCADA) products. This Company is operating internationally.

With a record growing wind energy market in 2005 and probably beating that record this year, Vestas Wind Systems is not only turning profitable this year, but is showing a greater expansion to big market-potential countries like China

Gary Greenberg, a global-investing specialist, recently named Vestas Wind Systems as on of the companies with the most promising alternative-energy technologies.

The current stock-market value might be well priced but if we look into the long-term potential of this company along with the rising net profit margin there is a strong probability that the stock will continue to trend higher in the next months.

Portugal Set to Install 48 Windfarms

2006-11-13T11:37:00.000Z

2005 was a record year in wind energy growth

In terms of new installed capacity in 2005, the US was clearly leading with 2,431 MW, followed by Germany (1,808 MW), Spain (1,764 MW), India (1,430 MW), Portugal (500 MW) and China (498 MW). This development shows that new players such as Portugal and China are gaining ground.

Portugal seems to show some promise in wind and solar energy growth for the next years.
In the news:

The Eolicas de Portugal consortium, in which ENDESA owns a 30% stake, has won the Portuguese government's concession to install windfarms with a total capacity of 1,200 MW. The Eolicas de Portugal project entails investment exceeding Euro 1.5 billion [US$1.9 billion] between 2006 and 2011 and the installation of 48 windfarms with capacity of between 20 and 25 MW at a variety of sites throughout Portugal.

The Eolicas de Portugal project will generate over 1,800 new jobs, and involve the development of an industrial estate in Viana do Castelo with a planned total surface area of 135,000 square meters. The facility will consist of the production facilities required to guarantee the integral production of a new ENERCON wind turbine model, the E-82, for the consortium, with a production capacity of 180 wind turbines/year and 600 poles/year.

Full article here

The countries with the highest total installed capacity are Germany (18,428 MW), Spain (10,027 MW), the USA (9,149 MW), India (4,430 MW) and Denmark (3,122).

Spanish Stocks Boom

2006-11-09T17:25:00.000Z

There is an on-going real-estate boom in Spain, that we have already talked about last week in this blog.

Investors aren't missing any opportunities and are pushing prices higher, not only in properties but in the country's stock market. And with a reason, with an economic growth forecast of 3.7% this year, Spain is on the lead of the developed European Union countries.

"There is an aggressive capitalist spirit running through many Spanish companies," says Robert Tornabell, a banking and finance professor at ESADE Business School in Barcelona. "And it is pushing them to enter Europe and buy."

Madrid's Ibex 35 index performance is now above 30%

European Trading will continue tracking the Spanish markets, meanwhile check the Business Week article

Germany's DAX composite

2006-11-09T00:43:00.000Z

Germany is the biggest economy in the EU, with the highest % GDP in Europe and an excelent performance in the stockmarket this year.

Although the DAX index generally follows the US markets, it's still one of the indicators that Europe's economy is growing, leaving behind some of the worse years during the recession.

Germany companies are the best example for anyone who wants solid returns with established and known companies in the whole world, but the best but risky performance probably comes from Eastern Europe's Emerging Economies.

We will review some of the best German companies along with their stock market returns. Check it here in the European Trading Blog.

European News

2006-11-09T00:34:00.000Z

Some Europe News:

EU rebukes Turkey but will not suspend membership talks

The European Commission issued a critical report on Turkey Wednesday, stopping short of suspending EU membership talks now but telling Ankara to make progress on Cyprus within five weeks.

"The commission will make relevant recommendations ahead of the (14-15) December European Council (EU summit), if Turkey has not fulfilled its obligations," the European Union's executive arm said in its report.

...

NYSE and Euronext merger

2006-11-07T04:10:00.000Z

The New York Stock Exchange (NYSE) has agreed to buy the pan-European Euronext exchange, creating the first transatlantic stock market and possibly opening up the idea of new mergers and the possibility of a new global exchange.

What are the gains to the causal investors? The changes to the products offered, the infrastructure or the innovations?

There are still many questions regarding the practical effects in the global capital markets, but surely there is still much to be talked about.

European Trading will update and comment more on this subject as soon as the events of the merger come in in the next weeks/months.

Meanwhile here is one of the first news articles of the whole announcement: BBC News | Business

Europe's ETF

2006-11-04T01:37:00.000Z

... There has been a proliferation of ETFs in Europe to the point where they now outnumber the ETFs in the US ...

Exchange-traded funds (or ETFs) are open-ended collective investment schemes, traded as shares on most global stock exchanges. Typically, ETFs try to replicate a stock market index such as the S&P 500 or Hang Seng Index, a market sector such as energy or technology, or a commodity such as gold or petroleum.

This is topic about ETFs that track European Stocks and Markets.

I'm still working on a list of these products that are traded in European Financial Markets like Euronext, but there are already plenty of these easily tradable stocks in NYSE and NASDAQ stock markets.

European ETFs are the best choice to make small investments in diversified Euro Stocks, and with even lower costs than the usual investment funds available at so many Europe's Banks.

In case you are still confused, ETFs are stocks that track a specific index or group of stocks, industries or even commodities.

For more information about ETFs check out the Wikipedia entry: http://en.wikipedia.org/wiki/Exchange-traded_fund

Or check ETF Trends, with comprehensive news about European ETFs:
ETF Trends Europe

Here is a small ETF list of European Markets:

iShares S&P Europe 350 Index (ETF) (Public, NYSE:IEV)

BLDRS Europe 100 ADR Index (ETF) (Public, NASDAQ:ADRU)

iShares MSCI Sweden Index (ETF) (Public, NYSE:EWD)

Europe 2001 HOLDRS (Public, AMEX:EKH)

Vanguard European ETF (Public, AMEX:VGK)

iShares MSCI Belgium Index (ETF) (Public, NYSE:EWK)

iShares MSCI France Index (ETF) (Public, NYSE:EWQ)

iShares MSCI Germany Index Fund (ETF) (Public, NYSE:EWG)

iShares MSCI United Kingdom Index (ETF) (Public, NYSE:EWU)

Find more ETFs in MSN Money ETF list

AMD's help from Europe

2006-11-02T20:48:00.000Z

Afterall there are still many reasons not to offshore 'hitech' jobs outside of Western Europe. One of these stories comes from AMD and Germany:

AMD's Secret Weapon: Dresden's Skills

The U.S. chipmaker has enjoyed big success since moving to Germany, where highly skilled workers keep innovation and efficiency high

AMD, Dresden

Intellectually Competitive Edge

The ability of AMD's 3,000 workers in Dresden to ramp up production of new chip designs quickly has been crucial in allowing AMD to gain ground on chip giant Intel (INTC). AMD has boosted its share of the market for desktop and workstation microprocessors to 27% from 18% a year ago, according to Arizona-based Mercury Research.

Read the full article here

Ascari European Race Car

2006-11-01T13:44:00.000Z

Ascari, the same company that is creating the fastest car in the UK, have revealed details of their newest project. Called the A10, this is a 600 bhp, road-going version of Ascari's Spanish GT Race Car.

So far, a single yellow example has been completed and is being extensively tested before the regular production version is revealed in 2006. Engineers at Banbury, and the exclusive Race Resort Ascari racetrack, are committed to ensuring this 220mph supercar delivers world-class performance similar to other independents such as Pagani, Koenigsegg and Mosler.

Power will come from a modified BMW M5 engine with a six speed manual as standard or a sequential gearbox available as an option. With its wide carbon fibre body and matching fixed rear wing, the A10 more dramatic compared to the KZ1 it's based off.

You can read more about this on BusinessWeek's article Europe's Newest Supercar
And Concept Carz info.

--- In The European News:

British Report Backs More Carbon Trading

Commissioned by Britain's government, an economist's report on climate change calls for the global expansion of the European Emissions Trading Scheme

The European Emissions Trading Scheme (ETS) should be expanded on a global scale, according to a landmark UK report on the costs of climate change that also calls on the world to act now or face dire consequences
...

---

Deutsche Bank's 3Q Profit Rises

By MATT MOORE AP Business Writer
© 2006 The Associated Press

FRANKFURT, Germany — Deutsche Bank AG said Wednesday that its third-quarter net profit rose by 25 percent, helped by gains that included an insurance settlement related to the Sept. 11 terrorist attacks, even as its trading revenue fell.

Germany's biggest bank earned euro1.24 billion (US$1.57 billion) in the July-September period, compared with euro991 million a year earlier, better than the euro1.04 billion (US$1.32 billion) that analysts polled by Dow Jones Newswires had expected
...

Euro inflation

2006-10-31T16:10:00.000Z

The European Union has the world's largest economy, larger than the United States of America according to the International Monetary Fund.
But Europe is still behind US in term of economic growth and unemployment.
The European Central Bank(ECB) rate policy settings may be too tight, but at least these low figures can make the lower economic growth seem better.

Euro inflation continues to cool

Lower oil costs helped push headline eurozone inflation down to 1.6% in October, official data shows.

Annual inflation for the 12 nations using the euro fell from 1.7% in September, the EU Eurostat agency said.

The European Central Bank (ECB) has set a 2% inflation comfort zone and raised benchmark interest rates to 3.25% this month to tackle rising consumer prices.

Check the rest of the article at BBC News

Nokia enters car navigation market

2006-10-31T16:02:00.000Z

Nokia enters the GPS Wars with Route 66's Software against other manufacturers like Tom tom's varied product offer.

HELSINKI (Reuters) - Nokia unveiled on Monday its first dedicated personal navigation device, the Nokia 330 Auto Navigation, as the world's top handset maker tries to increase its foothold in the fast-growing navigation market.

The Nokia 330, with preinstalled Europe-wide map data from navigation firm Route 66, is expected to be available in Europe during the fourth quarter of 2006, retailing for 360 euros (241 pounds) excluding taxes.

The 330 does not function as a phone.

Nokia sees navigation as a growth area and already has such functions on some of its more advanced mobile phone models.

Article Here

Portugal

2006-10-29T23:02:00.000Z

Today's topic is Portugal.
We, at European Trading, believe that Portugal can really rise in terms of quantity and quality in the next 5 years.
One former minister said "Portugal creates well, but sells bad". Maybe this tide can be turned with the new ICEP programs (please see www.icep.pt and www.portugalinbusiness.com/), and the good work and good will of both portuguese business and foreign business man.
The cork oak tree is arguably Portugal's finest asset, representing 30% of the world's cork forests and accounting for over half the world's total cork production.

Cases of sucess, such as Compal SA, the company which gives its name to the brand, belongs to the group Nutrinveste SGPS, SA which operates in the sector of juices, tinned vegetables, tomato-based products and bottled water. Founded in 1952, the company focuses its activities on producing high quality fruit juices, a sector in which it leads with a 65% share, as well as tinned vegetables, where it has a 50% share. One of Compal's main commitments is to innovation using a strategy that aims to anticipate the different market trends and which has turned out to be a decisive factor in maintaining and reinforcing its position as market leader. Another of Compal's major commitments is to internationalize the brand, a project that is now starting to bear fruit. In Spain, Compal already has a strong presence in large-scale distribution, positioning itself as a premium brand in the high quality juices and nectars segment and as a fruit specialist. Compal's expansion policy is based not only on Spain but on an entire export infrastructure that covers several points of the globe. Present in more than 30 countries, Compal is currently marketing its juices and nectars in countries as diverse as the UK, France, Switzerland, Luxemburg, Senegal, Ireland, Germany, Estonia, Macau, Hong Kong, Portuguese-speaking Africa (Angola, Cap Vert and Mozambique) and countries with large Portuguese emigrant communities.

The Vicri brand is aimed at the top-end sector and is positioned in the nouveau luxe segment where what matters is image, perception and feel. Combined with high standards of quality and modern design, the aim is to awaken in the consumer a desire and irresistible impulse to buy Vicri. Customers are offered the opportunity to discover new sensations by means of the perception of unique and surprising pieces, produced using luxury fabrics and elaborate and perfect techniques. To wear a Vicri piece is to discover the elegance and sheer daring of being well-dressed. Aimed at the informed consumer who is extremely demanding and has a high level of purchasing power, perfection is an indispensable requirement in manufacture, distribution, retailing, after-sales service and the constant monitoring of customers. More than just selling a Vicri piece, the brand appeals to the customer's emotional attachment and involvement in the concept that originated the product. The values associated with the brand are differentiation, originality, creativity and uniqueness. Of course, high quality in both the luxury fabrics and the manufacture goes without saying. Vicri is a pioneering brand in Portugal, being the only ready-to-wear company positioned in this market segment. In addition to the Portuguese market, the United Kingdom, France, Italy, Spain, the Netherlands and Brazil are its traditional customers where the brand enjoys considerable visibility, with its ranges stocked by the leading luxury retailers such as Biffi, Cascella, Selfridges, Harvey Nichols, House of Fraser, Liberty, Gonzalo Comella and Equus, to mention just a few. The USA and Japan are priority markets for the company where it plans to invest even more in promoting the brand that is already stocked by leading customers such as Oxigénio (USA). Although its ranges are already being marketed in Russia and China, these markets are on the company's list.

Critical Software S.A. supports mission and business critical information systems across diverse markets with customers that include Telecom, Aerospace, defence, industry and government. The company provides full-cycle software engineering services and develops innovative technologies and products for mission and business critical systems, being a world leader in the software segment for reliability-testing by fault injection. The company operates a quality system accredited to ISO 9001:2000 TickIT, is IS15504 assessed and holds EU/NATO Secret clearance, offering outstanding value for money by virtue of Portugal's rare combination of high quality with low cost.
Customers include renowned companies in Europe and worldwide such as NASA, ESA, Siemens, Infineon, EADS, Vodafone, Astrium, Westland Helicopters, Alcatel Space, Eurocontrol, Soporcel, Portugal Telecom, CGD and many others. Founded in 1998, Critical Software is among Europe's 500 fastest growing companies according to BusinessWeek. Based in Portugal, it has offices in the USA and the UK and representatives worldwide.

These 3 cases are a taste of many more. You can check for more on these links:
http://www.portugalinbusiness.com/
http://www.investinportugal.pt
http://www.bportugal.pt
http://www.visitportugal.com

Spain's Coast Building Boom

2006-10-27T21:57:00.000+01:00

By some estimates, as much as 40 percent of all European construction is occurring in Spain.

Spain's Booming Real Estate is just one in many worldwide real estate markets booms.
New luxury hotel/golf resorts, beach scrapers and others, are not only booming in south Spain but in other south European borders like Portugal, Italy and Greece.

By all accounts, Spain has experienced an economic boom over the last decade. It has “continued its prolonged economic expansion” and “weathered the international slowdown” making it “one of Europe’s best-performing economies”.

Economic growth—between 3 and 4 percent a year and twice the European average—has made Spain the world’s eighth-largest economy, up from 16th place 10 years ago. Companies such as the fashion house Zara, phone operator Telefónica, construction giant Ferrovial and real estate developer Metrovacesa have become globally recognised names.

Anyone who is a resident of a country belonging to the EU can buy property in Spain.
And that's what the rich north European tourists are doing, boosting the demand for new construction, whether it's well planned luxury resorts or ugly "concrete hills".

There are of course serious side-effects like corruption, money laundering and a very dangerous real estate bubble that could drag the whole south European market and economies to stagnation or worse.

In a recent article, from The Washington Post:

About 3 million houses have been started or built in Spain in the past four years, including 812,000 in 2005, with as many as half of them along the coast. By some estimates, as much as 40 percent of all European construction is occurring in Spain.

The boom is being fueled partly by the demand of northern Europeans for retirement homes on the Mediterranean. Drawn by the temperate climate, relatively inexpensive housing and the ease of avoiding taxes by conducting business under the table, foreigners now account for 70 percent of the population in some Spanish towns.

You can read the rest of the newsarticle here

More information about the Spain's Coast Real Estate Boom in the next days.

Europe's Hot Growth Companies

2006-10-27T02:26:00.000+01:00

There is a special report on BusinessWeek, about new and groing european companies, from eastern europe startups to luxury italian yachts.

You can check this vast and complete articles in BusinessWeek here:
Special Report: Europe's Hot Growth Companies

Although venture capital is common in USA, in Europe it's just starting, with plenty of new people, ideas and companies ready to take off.
There is an article in BusinessWeek regarding this subject too, in Europe's Young Entrepreneurs.

Check back tomorrow this blog with an article about the real state market in South Europe.

European Economies: German, French Confidence Rose

2006-10-26T00:21:00.000+01:00

Today in Bloomberg:

Business confidence in Germany and France unexpectedly rose in October as lower oil prices and exports to Asia brightened the outlook for economic growth in Europe. Stocks rose to the highest in five years and bonds fell.

By European standards, it is almost a boom, and it looks set to continue for the time being,'' said Holger Schmieding, chief European economist at Bank of America Corp. in London. The Ifo report ``bolsters hopes that the German VAT hike in January will not derail the euro-zone upswing.

Read the rest here.

DaimlerChrysler

2006-10-26T00:18:00.000+01:00

DaimlerChrysler Net Falls Less Than Analysts Expected

By Jeremy van Loon

Oct. 25 (Bloomberg) -- DaimlerChrysler AG, the world's fifth-largest carmaker, said third-quarter profit fell less than analysts estimated as higher earnings at the Mercedes and truck units helped offset a loss at Chrysler. The shares gained the most in 15 months.

Net income fell 37 percent to 541 million euros ($681 million) from 855 million euros a year earlier, the Stuttgart, Germany-based company said today. Analysts surveyed by Bloomberg News had expected net income of 27 million euros. Revenue declined 7.8 percent to 35.2 billion euros.

Chief Executive Officer Dieter Zetsche slashed 9,300 jobs and introduced new models like the S-Class at Mercedes to reverse a slump in sales last year. The turnaround at the German luxury carmaker contrasts with a $1.5 billion loss at Chrysler, whose future became the focus of DaimlerChrysler's conference call when an executive failed to quell questions about a possible sale.

``The company needs to move quite quickly at Chrysler because the operating losses are quite substantial,'' said Peter Braendle, a fund manager at Swisscanto Asset Management in Zurich, which oversees the equivalent of $51 billion and is ``overweight'' in its holdings of DaimlerChrysler shares. ``Mercedes and the trucks did quite well. That seems always to be the case at Daimler, they fix one unit and immediately there is a problem at another one.''

The shares rose 1.74 euros, or 4.2 percent, to 43.23 euros in Frankfurt. U.S. shares gained $2.35, or 4.5 percent, to $54.68 at 4:17 p.m. in New York Stock Exchange composite trading.

You can see the rest of this news on bloomberg

European Trading

2006-10-26T00:11:00.000+01:00

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