14 Feb 2009
Feb. 12 (Bloomberg) -- Stocks in Europe and Asia declined and U.S. index futures slipped as Electricite de France SA and Diageo Plc posted disappointing results and investors speculated U.S. measures won't revive the global economy.EDF, the biggest operator of nuclear reactors, and Diageo, the largest liquor maker, fell more than 4 percent. Mitsubishi UFJ Financial Group Ltd., Japan's biggest lender, lost 3.5 percent as U.S. Treasury Secretary Timothy Geithner said he needs time to work out details of a bank-rescue plan unveiled Feb. 10.
The MSCI World Index dropped for a third day, losing 0.5 percent at 8:10 a.m. in London. The gauge of 23 developed countries had rallied 5.8 percent in the previous five days on optimism that global stimulus packages, a financial-rescue plan from Barack Obama's administration and interest-rate cuts would help lift the U.S., Europe and Japan out of recessions.
"There isn't a miracle solution," Sebastien Korchia, a fund manager at Meeschaert Asset Management in Paris, which oversees about $2.6 billion, said in a Bloomberg Television interview. "It will take time. The market is worried."
U.S. stocks gained yesterday as lawmakers debated a $789 billion plan to revive the economy. U.S. House and Senate lawmakers agreed on a compromise late yesterday, a smaller bill than originally approved by both groups.
Europe's Dow Jones Stoxx 600 Index slid 1.3 percent. The MSCI Asia Pacific Index lost 1.5 percent as Daikin Industries Ltd. slumped on a profit forecast cut. Futures on the Standard & Poor's 500 Index lost 0.6 percent.
EDF, Diageo
EDF slid 4.5 percent to 33.96 euros after saying 2008 net income fell to 3.4 billion euros ($4.39 billion) because of costs associated with regulated power rates and lower industrial demand amid the economic slowdown.
Diageo slipped 6.5 percent to 849 pence. The company said full-year operating profit will rise 4 percent to 6 percent, less than a previous forecast for as much as 9 percent growth.
Mitsubishi UFJ fell 3.5 percent to 468 yen in Tokyo. Toyota Motor Corp., which makes 37 percent of its sales in North America, dropped 2.9 percent to 3,050 yen.
Daikin, the biggest Japanese maker of air conditioners, fell 5.6 percent to 2,105 yen after cutting its profit forecast by 59 percent for the year ending March 31 as the slumping global economy dragged sales.
Rexel, ABB
Rexel SA lost 5.7 percent to 4.85 euros. The world's largest distributor of electrical equipment posted a 63 million-euro net loss for the fourth quarter, hurt by falling volume sales and a drop in the price of copper.
Rexel said it expects a "significant" drop in volume sales and prices in 2009, suspended its dividend and said it will cut operating investments by 25 percent. The company expects savings this year of 110 million euros.
ABB Ltd. added 2.4 percent to 15.97 francs. The world's biggest builder of electricity grids said fourth-quarter profit fell 88 percent to $213 million after booking $870 million in provisions for a cartel probe and cost-reduction expenses and an asset sale boosted year-earlier earnings. Analysts surveyed by Bloomberg estimated profit of $122 million.
Swiss Reinsurance Co. surged 5.1 percent to 19.9 francs. The world's second-biggest reinsurer said Jacques Aigrain resigned as chief executive officer after record losses forced the company to seek capital from investors including Warren Buffett.
