Job data drags down US, European bourses

MARKET OUTLOOK

- US: US markets fell sharply at the end of the week due to a disappointing August employment rate report which raised fears that the current housing crisis will spread to the rest of the US economy. Shares from banks, food and staples retailing, insurance and telecom services were lower week-on-week, while semiconductors, energy, real estate and technical software outperformed the market. From a technical point of view, Friday's session has triggered further decline potential, as daily indicators are turning bearish, calling for a larger correction this coming week.

- EUROPE: European markets slumped on Friday following poor US non-farm jobs data. Shares from utilities, construction and materials, chemicals and food and beverage pushed markets down while stocks from basic resources, oil and gas, technology and automobiles and parts managed to gain. Technically, the past week's correction should continue as all indexes have broken down their key support levels, calling for a further drop.

COMPANY PREVIEW

Intesa Sanpaolo (EUR 5.212 ; -5.75% ; ISP ; ISP.MI)

Intesa Sanpaolo is scheduled to announce H1 net income of E5.41bn (E1.47bn a year earlier) on Tuesday. A week ago Intesa Sanpaolo agreed to sell its 15.7% stake in Banco del Desarrollo to Bank of Nova Scotia for E120m. Separately, Intesa Sanpaolo and Societe Generale are among the favourites to buy parts of the Eastern European business of Bawag P.S.K. Bank (Wirtschaftsblatt).

Finmeccanica (EUR 20.56 ; -4.42% ; FNC ; FNC.MI)

On Wednesday, Finmeccanica may report H1 results. Last year net income was E564m on revenues of E5.7bn. Last week the Co announced that it's ready to invest in PZL-Swidnik if the Polish government confirms the sale of the Co. In other news, Finmeccanica aims to own a stake of 3-4% in Airbus' A350 plane project. Earlier, Finmeccanica sued General Motors claiming the automaker stole research on electric motors for hybrid vehicles.

Lagardere (EUR 57.53 ; -3.97% ; MMB ; LAGA.PA)

In France, Lagardere will deliver its H1 revenues on the same day. At the end of August the French largest publisher agreed to buy Nextedia for E100m. On August 13, Lagardere sold its regional daily press interests in southern France to the Hersant Media Group for E160m.

Pall (USD 37.11 ; -0.8% ; PLL ; PLL.N)

Thursday, Pall is expected to post Q4 EPS of $0.55 ($0.50 a year earlier) on sales of $614m ($597.3m) after market. Last week, the Co announced that it plans to delay release of Q4 and FY 07 results as it's working to resolve issues uncovered by an internal audit committee (Business Wire). Separately, Pall was recognised as a global leader in innovative filtration and purification technologies in July.

Immoeast Immobilien Anlagen (EUR 8.3 ; -7.68% ; IEA ; IEA.VI)

Finally, Immoeast could publish Q1 net income of E144.8m (E35.7m a year ago) on Friday. At the beginning of August, the Co spent E110m on the acquisition of a building rented out by Telefonica in a Prague office park. Later, Immoeast bought a shopping mall project in Moscow, named 'GoodZone' and due to be finished in 2008 for approx. E450m.