Europe stocks little changed after four-week rout
By Bloomberg
European stocks were little changed, following their longest streak of weekly losses in more than a year, as mergers-and-acquisitions activity offset worse-than- estimated financial results.
Nutreco NV jumped 38 percent after SHV agreed to buy the fish-feed maker. SAP SE lost 4.1 percent after the world's largest supplier of business-management software cut its full- year earnings forecast. Royal Philips NV slid 2 percent after third-quarter sales and profit missed analysts' estimates.
The Stoxx Europe 600 Index rose 0.1 percent to 319.03 at 8:23 a.m. in London. The measure reached its lowest level of the year last week after an eight-day slump, its longest losing streak in 11 years. European equities lead a global rout that erased as much as $5.5 trillion from the value of shares worldwide as concern over the region's economic recovery re- emerged, amid speculation that the European Central Bank's stimulus measures would not be enough to spur growth.
The benchmark index rebounded on Oct. 17, posting its largest rally since November 2011. That day, ECB Executive Board member Benoit Coeure said the central bank will start buying assets within days. He will speak in London today.
Standard & Poor's 500 Index futures added 0.2 percent today, while the MSCI Asia Pacific Index rallied 2.1 percent.
M&A Activity
Nutreco climbed 38 percent to 38.87 euros after SHV, a Dutch company with investments in oil exploration and transport, agreed to buy the maker of Skretting fish feed for about 2.7 billion euros ($3.4 billion).
Spirit Pub Co. jumped 7.7 percent to 98 pence. The owner of more than 1,200 U.K. outlets including Chef & Brewer and Flaming Grill is on the verge of being acquired by competitor Greene King Plc after saying it's willing to recommend a sweetened 723 million-pound ($1.2 billion) bid.
Tesco Plc added 3 percent to 179.8 pence after the Times said that private equity firms may be interested in acquiring its Asian business. Afren Plc advanced 3.8 percent to 101.2 pence after the Sunday times reported it may face a possible offer. Adidas AG rose 5.9 percent to 57.86 euros after the Wall Street Journal said a group of investors is planning to bid about 1.7 billion euros for its Reebok unit.
SAP dropped 4.1 percent to 51.79 euros after saying non- IFRS operating profit will be 5.6 billion euros to 5.8 billion euros this year. In July, it had predicted 5.8 billion euros to 6 billion euros. New software license sales, an indicator of future sales potential, fell about 3 percent to 952 million euros. Analysts had estimated 967 million euros on average.
Philips slipped 2 percent to 21.62 euros. Earnings before interest, taxes, amortization and one-time items fell to 536 million euros in the third quarter, less than the 554 million euros projected by analysts. Sales of 5.55 billion euros also missed estimates.
Deutsche Lufthansa AG lost 1.8 percent to 11.46 euros as its expects a pilot strike to affect flights. A union in Germany called for its members to stop working because of a disagreement related to retirement benefits. The strike will also affect long-haul flights from Germany, according to a statement.