BL: European Stocks Advance, Led by Deutsche Bank, Tele Atlas
By Sarah Thompson and Alexis Xydias
Oct. 31 (Bloomberg) -- European stocks rose, heading for a second-consecutive monthly advance, after Deutsche Bank AG said the fourth quarter started well.
Societe Generale SA, France's second-biggest bank by market value, and Danske Bank A/S paced gains by financial companies. Tele Atlas NV jumped 13 percent after Garmin Ltd., the biggest U.S. maker of car navigation devices, said it plans to make a cash offer for the Dutch digital mapping company.
The Dow Jones Stoxx 600 Index added 0.4 percent to 386.4 at 10:30 a.m. in London. The measure has added 2.3 percent this month, its second advance since August.
``European investors are taking heart from Deutsche Bank's strong numbers,'' said Espen Furnes, who helps manage the equivalent of $7.1 billion at Storebrand Asset Management in Oslo. ``This is particularly good for the financial sector.''
The Federal Open Market Committee will announce a decision on rates at 2:15 p.m. in Washington after a two-day meeting.
Asian stocks rose after Denso Corp., Japan's largest auto- parts maker, boosted its profit forecast and Mirae Asset Securities Co. reported earnings more than tripled. U.S. stock- index futures increased.
Benchmarks rose in 10 of the 17 western European markets that were open. France's CAC 40 Index added 0.1 percent. The U.K.'s FTSE 100 lost 0.1 percent, and Germany's DAX was little changed. The Stoxx 50 and the Euro Stoxx 50, a measure for the euro region, rose less than 0.1 percent.
Lower Rates
Interest-rate futures imply 94 percent odds policy makers will reduce their benchmark rate by 0.25 point to 4.5 percent. Policy makers shifted from 5.25 percent last month, prompting a 3.7 percent rise in the S&P 500 since then.
A report today may also show that the U.S. economy expanded at a slower pace in the third quarter, according to the median estimate in a Bloomberg News survey of economists. The Commerce Department release is due at 8:30 a.m. in Washington.
Deutsche Bank climbed 3.6 percent to 92.02 euros after saying third-quarter profit rose 31 percent to 1.62 billion euros ($2.34 billion) as tax credits and gains from asset sales outweighed the first loss at its investment bank in five years. Germany's biggest bank estimated on Oct. 3 that net income would exceed 1.4 billion euros.
Societe Generale, the second-biggest French bank by market value, rose 1.2 percent to 114.57 euros. Danske Bank, the second- biggest Nordic lender, advanced 1.1 percent to 224.25 kroner, adding to yesterday's 3.1 percent gain.
Total, BP
Total SA, Europe's third-largest oil company, and BP Plc led energy shares lower after crude fell by the most in almost three months.
Total, Europe's third-largest oil company, slipped 1.4 percent to 54.9 euros, while BP, the region's second-largest oil company by market value, declined 1 percent to 616 pence. Crude oil fell for a second day, extending its biggest drop in almost three months yesterday, after Goldman Sachs Group Inc. told clients ``to take profits.''
``The oil decline has taken a bit of shine off the energy sector,'' said Simon Denham, managing director at Capital Spreads in London. ``We are seeing a certain amount of selling going on in the industry.''
The Stoxx 600 Oil & Gas index has advanced 13 percent since a 2007 low reached in August, as New York oil prices topped $93 a barrel. The contracts fell 3.4 percent to $90.38 yesterday.
Eni SpA slipped 1.5 percent to 24.83 euros. Italy's largest oil company said third-quarter profit fell 11 percent after attacks in Nigeria and maintenance at fields cut crude production.
Tele Atlas, Sanofi
Tele Atlas NV jumped 3.09 euros to 27.10 euros. Garmin said it plans to make a cash offer for Tele Atlas, trumping a bid by TomTom NV. The indicative offer price is 24.50 euros in cash per share, Garmin said in a PRNewswire statement today. TomTom dropped 9.3 percent to 61.49 euros.
Sanofi-Aventis SA rose 1 percent to 59.86 euros after France's largest drugmaker said third-quarter profit climbed to 1.85 billion euros on higher sales. Analysts had expected 1.71 billion euros, according to the median estimate of a Bloomberg survey. The company raised its earnings forecast for the year.
MAN AG rose 3.3 percent to 122.27 euros. Europe's third- largest truckmaker raised sales, profitability and order forecasts as eastern European economic growth swelled third- quarter earnings. Earnings before interest and tax last quarter added 36 percent to 378 million euros, MAN said today, beating a 349 million-euro median analyst estimate.
GPC Biotech AG tumbled 64 percent to 2.87 euros. The company, whose shares have fallen 59 percent this year because of a setback with its lead drug, is re-evaluating development of the satraplatin cancer therapy after new data showed it didn't improve patients' survival.
`Imminent Bid'
DSG International Plc, Europe's second-biggest consumer electronics retailer, rose 7 percent to 129.4 pence on speculation about a possible bid from Best Buy Co.
``Investors are sensing that DSG is open to an imminent bid, with Best Buy being a vaguely rumored suitor,'' said Martin Slaney, head of spread betting at GFT Global Markets in London.
DSG spokesman Jonathan Brill said the company doesn't comment on ``market rumor or speculation.'' An out of hours call to Best Buy spokesman Brian Lucas was not immediately returned.
Royal Wessanen NV jumped 5.7 percent to 11.41 euros. The maker of Whole Earth health foods rose the most in 3 1/2 years after third-quarter profit almost tripled.
Novo Nordisk A/S dropped 3.4 percent to 589 kroner after the world's biggest insulin producer cut its full-year forecast for revenue growth as a weaker U.S. dollar hurts North American sales.
To contact the reporters on this story: Sarah Thompson in London at sthompson17@bloomberg.net ; Alexis Xydias in London at axydias@bloomberg.net .
Last Updated: October 31, 2007 06:42 EDT
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