European markets fall away

MARKET OUTLOOK

- US: US markets were mixed in a shorter week due to Thanksgiving. Stocks from the real estate, materials, energy and software sectors gained most, while shares in the automobile, commercial and banks sectors were under pressure. Oil prices ended flat, dropping at the Wednesday's stock publications and rebounding just after. The dollar fell to its lowest level against the euro since April 2005. On the major indices, technically we remain cautious, the upside potential is decreasing.

- EUROPE: European markets fell deeply last week even if the Dax, Ibex and S&P/Mib waited for the end of the week to drop. Shares in the automobile, media, retail and insurance sectors lost most, while shares in the basic resources, financial services and technology ended positively. Technically, the risk should remain corrective in Europe this week.

COMPANY PREVIEW

Compass Group (GBp 279.5 ; -2.61% ; CPG ; CPG.L)

Compass Group is expected to announce on Wednesday its FY results. Last year, FY net income reached £37m, EBIT £300m and sales £12.704bln. On November 16, Sodexho Alliance said FY net income rose to E323m from E212m and revenue increased 9% to E12.8bln. The group added that it plans a 27% dividend increase and said operating profit for FY07 should grow 10%.

HJ Heinz (USD 44.36 ; 0.93% ; HNZ ; HNZ.N)

On Thursday before market opens, HJ Heinz reports its quarterly earnings. 2Q/Oct EPS is expected to reach $0.60 ($0.62 a year ago) on a revenue of $2.24bln ($2.34bln). On November 8, the group said that its Board of Directors had approved a proposed amendment to the Co's Articles of Incorporation that, if adopted by the shareholders, will require approval of the election of directors in uncontested elections by a majority vote of shareholders. Currently, Heinz operates under a plurality voting standard, where the directors who receive the most 'for' votes are elected.

Brown Forman (B) (USD 71.7 ; -0.46% ; BF/B ; BFb.N)

The same day, Brown-Forman reports its 2Q/Oct results. The group may release EPS of $0.96 ($0.91 a year ago) on a revenue of $737.1m ($550.4m). On November 16, the group announced that its Board of Directors increased the quarterly cash dividend on Class A and Class B Common Stock 8% from $0.28 to $0.3025. As a result, the indicated annual cash dividend will rise from $1.12 to $1.21.

Thyssenkrupp (EUR 29.13 ; 1.68% ; TKA ; TKAG.DE)

Thyssenkrupp is expected to announce on Friday 4Q/Sep and FY results. Last year, FY pre-tax income reached E1.836bln and sales E42.1bln. Last month, shares of ThyssenKrupp rose to the highest level in more than six years on speculation Nucor will offer to buy the company. In other news, one of the group's unit, Uhde won on November 14 a $550m contract to build a petrochemical plant in Egypt.

Ahold (EUR 7.75 ; -0.13% ; AH ; AH.AS)

Finally, Ahold will deliver its results the same day. The group is seen delivering 3Q net income of E158.5m (net loss of E239m last year) on sales of E10.47bln (E10.25bln). Investors will want to hear about the Co's plan to put its US Foodservice unit up for sale and lower prices at its stores.