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Market Update

Greek Government Faces Shake Up After Vote, BHP Writes Down Assets


Author: Nigel Thomas
ticker.com
Last Update: 2:04 PM ET July 15 2015

4:00 PM Frankfurt Prime Minister Alexis Tspiras government may fall after the latest debate fracture the coalition. Aker Solutions net plunged 46%. AGA Rangemaster agreed to be acquired by U.S.-based Middleby for 129 million. BHP writes down $2 billion in its U.S. onshore petroleum business.

European markets edged lower as Greece prepares to approve the latest agreement with international lenders.

At least 30 members of the ruling coalition are expected to vote against the accord, however Prime Minister Alexis Tspiras is expected to win the backing of opposition members.

The governing coalition is so fractured after the Tspiras made turn around and accepted all the conditions offered by the lenders but rejected by the popular referendum only a week ago.

The latest agreement calls for pension and tax reforms and streamlining of bankruptcy laws and widening tax net, that many believe will not be enough to revive the Greek economy.

Greece in the past has failed to implement majority of reforms demanded by international lenders. And asking more of same in exchange of additional $95 billion over the next three years is not expected to solve the problem.

After five years of three bailouts totaling $300 billion, Greek economy has contracted 25% and jobless rate is over 24% in a nation of 10 million people.

In London trading, FTSE 100 index edged down 2.24 to 6,751.41 and in Frankfurt the DAX index gained 0.3% or 36.16 to 11,553.04.

In Paris, CAC 40 index rose 0.4% or 18.23 to 5,050.63.

ASML Holding NV increased 2.8% to 96.82 after the Netherlands-based semiconductor equipment maker reported net sales in the second-quarter ending on June 29 edged up to 1.65 billion from 1.64 billion in a year ago period.

Net profit in the quarter declined 7.3% from a year ago to 369.7 million compared to 398.7 and diluted earnings per share decreased to 0.85 from 0.90.

ASML forecasted net sales for the third-quarter in the range of 1.5 billion to 1.6 billion and a gross margin of around 45%.

Aker Solutions ASA declined 5.6% to 39.34 kronor after the Norway-based said revenues in the second-quarter ending in June decreased 1.2% to 8 billion kronor from 8.1 billion kronor in a year ago period.

Net income in the quarter plunged 46.1% from a year ago to 209 million kronor compared to 388 million kronor and diluted earnings per share slipped to 0.73 kronor from 1.41 kronor.

AGA Rangemaster Group Plc surged 19.9% to 182.25 pence after the U.K.-based kitchen appliances maker agreed to be acquired by the U.S.-based Middleby Corporation for 185 pence per share or about 129 million in cash, representing a premium of 77% to the closing price of June 16.

BHP Billiton Plc gained 1.7% to 1,257 pence after the U.K. and Australia based mining company announced a write down of its U.S. onshore petroleum business for about $2 billion after-tax for fiscal 2015 after developing a gas field in Texas is deemed to be more complex and expensive than previously expected.

BHP also estimated to produce 255 million barrels of oil equivalent in second-quarter to June.

Moneysupermarket.Com Group Plc rose 0.8% to 292.50 after the U.K.-based financial services provider said revenues in the first-half ending in June soared 18% to 143.9 million from a year ago period.

The group is schedule to release its interim results on July 30.

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