Economic growth concerns unsettle US markets

MARKET OUTLOOK

- US: US markets rose week-on-week but showed signs of weakness on Friday on concern about the pace of economic growth. October housing starts fell to their lowest level since July 2000 and building permits to their lowest level since December 1997. Stocks from the semiconductors, cons. durables and capital goods sectors rose most. Stocks from the banks and energy sectors were under pressure as the yield curve remained inverted for banks and oil prices fell for the energy sector. The upside prevails above the rising 20 day moving averages but we remain cautious about the upside potential. Thursday it is Thanksgiving, so expect market activity to be lower than usual.

- EUROPE: European markets were mixed last week with the Dax, Ibex and S&P/Mib rising while the FTSE 100 and Cac 40 fell moderately. Shares in the technology, telecommunications and construction and materials sectors gained most while shares in the financial services, oil and gas and basic resources fell most. Watch Thursday's IFO data for November in Germany. Technically, a consolidation could occur in Europe this week.

COMPANY PREVIEW

British Land (GBp 1562 ; 2.56% ; BLND ; BLND.L)

British Land is expected to announce on Tuesday before market its 1H results. Last year, net income reached £615m and pre-tax profit £761m. On November 13, a fund managed by British Land bought three retail parks in Italy and Switzerland for more than E153m.

Deere and Co (USD 90.36 ; 3.73% ; DE ; DE.N)

The same day before market opens, Deere and Co reports its quarterly earnings. 4Q/Oct EPS is expected to reach $0.94 ($0.96 a year ago) on a revenue of $4.79bln ($5.11bln). On November 1, Agco reported 3Q/Sep EPS of $0.07 ex-items (LPS of $0.01 expected) while revenue fell 4.3% year-on-year to $1.18bln ($1.14bln). The Co issued FY06 EPS of $1.00 ($0.99 expected).

Credit Agricole (EUR 34.16 ; 2.25% ; ACA ; CAGR.PA)

Wednesday, Credit Agricole reports its 3Q earnings results. Last year, 3Q net income reached E1.13bln. Last Friday, according to newspaper Il Sole/24, Fondiaria-SAI SpA would be close to making a distribution agreement with Credit Agricole. In other news, Emporiki Bank of Greece announced on November 13, 9 mths net income up 39.76% to E94.2m and net interest income reached E540.2m from E471.11m in the same period last year.

Dollar General (USD 15.17 ; 9.06% ; DG ; DG.N)

Dollar General is expected to announce the same day 3Q/Oct EPS of $0.15 ($0.20 a year ago) on a revenue of $2.24bln ($2.06bln). The group reported total retail sales for the October four week period of $683.9m compared with $639.8m last year. For the October period, same store sales increased 1.9%.

KBC (EUR 87.45 ; 0.58% ; KBC ; KBKBt.BR)

Finally, KBC will deliver its results on Thursday. Last year, 3Q net income reached E543m and gross income E2.669bln. On November 9, the group said that it sold KBL Fumagalli Soldan to BANIF for appx. E44m.