RTTNews - The major European markets are set to extend their losses on Monday on the back of extremely weak Asian cues amid concerns about the global economy and corporate earnings.
The economic calendar for Europe is relatively light, with only the Swiss producer and import prices due to be released in the session. On a monthly basis, producer and import prices are forecast to edge up 0.1% in June, following a 0.3% fall in May. Annual decline is seen at 5.4% compared to the 5% decrease seen in May.
Crude oil dropped below $60 per barrel on Friday after the latest International Energy Agency report backed lingering demand concerns. In Asian trading on Monday, the commodity was last trading weaker at $59.17 a barrel, down 1.20% on weak demand outlook.
On Friday, while Wall Street closed modestly lower following the release of a report showing a decline in U.S. consumer sentiment and a profit warning from Chevron, the major European markets lost over 1% each, as heavily weighted energy stocks slipped on declining crude oil prices and investors were worried about forthcoming corporate earnings.
In corporate news, Air France-KLM expects to save $1.8 billion this fiscal year due to the recent decline in oil prices, but the ultimate size of the savings depend on the dollar's exchange rate with the euro, its CEO Pierre-Henri Gourgeon told shareholders on Thursday.
Centrica Resources, a subsidiary of Centrica plc, the U.K.'s largest energy supplier, offered to acquire the remaining 71% stake that it doesn't own in Venture Production plc for 845 pence per share. However, Venture has turned down the proposal saying the offer undervalues the company.
British Airways is currently in talks with institutional shareholders to raise up to £500 million to cut costs and boost its balance sheet, reports suggest.
Swiss specialty chemicals company Clariant expects demand to be between 16 and 20 percent lower in 2009 than last year, the group's CEO Hariolf Kottmann told Swiss newspaper Finanz und Wirtschaft.
Mobile phone network provider Ericsson AB plans to invest $1.5 billion in South Korea over the next five years, its CEO Carl-Henric Svanberg said at a meeting in Stockholm with South Korean President Lee Myung-Bak on Sunday.
Sanofi-Aventis SA has recalled three cough mixtures for babies and children from the French market after traces of a toxic substance was discovered in a bottle, the French health authority said on its website.
Volkswagen AG has raised its offer to take a 49.9 percent stake in troubled sports car maker Porsche to more than 4 billion euros, reports suggest.
U.S. authorities and the Zurich-based bank UBS AG on Sunday filed a motion with the backing of the Swiss government to have their court case on client data postponed to allow for further negotiations.
OSI Pharmaceuticals, Inc. and Genentech, Inc. announced that SATURN, a pivotal Phase III study of Tarceva (erlotinib), met a key secondary endpoint of extending overall survival in patients with advanced non-small cell lung cancer, or NSCLC, who received Tarceva immediately after initial chemotherapy.
Koninklijke Philips Electronics NV reported that second-quarter net income plunged to 45 million euros from 735 million euros a year ago. On a per basic share basis, earnings were 0.05 euros, lower than last year's 0.72 euros.
Cobham plc said it won a US$14.8 million contract from the Defense Advanced Research Projects Agency or DARPA for the Wireless Network after Next or WNaN programme.
Experian plc is on track for the year to broadly maintain margins, grow profits at constant currency and deliver strong cash flow conversion, the company's CEO Don Robert said in an interim management statement for the first quarter ended June.
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