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Market Update

Air France January Traffic Eases 1.7%, Rolls-Royce Wins Defense Contracts

Author: Nigel Thomas
Last Update: 11:01 AM ET February 09 2015

4:00 PM Frankfurt – Air France KLM group passenger traffic and load factor in January declined. Endomines profit plunged 28% to 35 million kronor but revenues jumped 10%. Quantum Pharma climbed on positive outlook. Rolls-Royce won three contracts worth $442 million.

European markets opened sharply lower and quickly dropped to as low as 2% after Greece and Ukraine talks dominated headlines.

Market sentiment was weak at the opening after Prime Minister Alexis Tsipras on Sunday confirmed that his government has not abandoned its plan to demand a rollback of austerity plan required as a part of international bailout.

In London trading, FTSE 100 index fell 0.5% or 36.59 to 6,816.85 and in Frankfurt the DAX index declined 1.6% or 172.45 to 10,673.94.

In Paris, CAC 40 index dropped 1.2% or 55.14 to 4,635.89.

The ASE Index in Athens dropped as much as 6% and market indexes in Italy and Spain declined more than 2%. Greek banks plunged more than 10%.

Greek 10-year bond yield increased three full points to 21.65%, the largest one-day increase in three years.

The bond market tensions rose as at least six governments bonds are scheduled to raise at least 19 billion euros.

The Netherlands is planning to raise as much as 3 billion euro bonds maturing in 2020 on Tuesday and Portugal is planning to a debt offering of as much as 1.25 billion euros of bonds expiring in 2025.

Separately, German Chancellor Angela Merkel was negative on the likelihood of ending Ukraine crisis in the immediate future.

Russia’s Foreign Minister Sergie Lavrov said at a conference in Munich, Germany that the U.S. sending arms to support Ukraine will deepen the crisis.

Air France KLM SA dropped 2.8% to €7.18 after the airline company said traffic in January dropped 1.7% on Asia weakness and group passenger traffic fell 0.1% with a 0.8% increase in capacity.

The total number of passengers jumped to 1.4% to 6.19 million.

Total load factor in January slipped 0.8% to 82.4% from 83.2% in the same month a year ago.

For the month, total group traffic declined marginally to 18.95 billion revenue pax-kilometers compared to 18.98 billion a year ago month.

Endomines AB soared 8.5% to 050 kronor after the Sweden-based gold miner said revenues in the year ending in December jumped 9.6% to 173.6 million kronor from 164.1 million kronor a year ago period.

Net profit in the year plunged 28.1% from a year ago to 35.2 million kronor compared to 63.3 million kronor and earnings per share slipped to 0.25 kronor from 0.49 kronor.

The company said total gold production in the fourth-quarter declined 16% to 179.3 kilogram but for the year dropped 4% to 761.9 kilogram.

Plant Impact Plc surged 7.9% to 36.28 pence after the U.K.-based specialty nutrition product developer said group turnover in the first-half ending in January more than double to £2.5 million from £1.2 million a year ago period.

The agricultural bioscience forecasted net profit for the period swung to £0.2 million compared to loss of £0.5 million a year ago period.

Quantum Pharma Plc climbed 4.1% to 100.44 pence after the U.K.-based medical product and device maker said the board estimates adjusted EBITDA and adjusted profit-before-tax for the year to be “comfortably ahead of market expectations.”

Rolls-Royce Holding Plc slipped 1.4% to 899.50 pence and the U.K.-based aerospace and defense contractor won three contracts of about $442 million to produce and support LiftSystems for F-35B Lightning II aircraft.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc