Inflation and growth concerns dent US stocks

MARKET OUTLOOK

- US: US markets were under pressure last week due to concerns about rising inflation and slowing economic growth (November CPI rose 0.8% month-on-month compared to the 0.6% expected and 0.3% the previous month, while November PPI year-on-year growth was 7.2%, the fastest rate since November 1981). Earlier, the Fed cut interest rates by 25 basis points to 4.25%. Almost all sectors lost ground week-on-week. Only shares from telecom services and energy managed to close on a positive note. From a technical point of view, the bias remains bearish and a further decline is expected.

- EUROPE: European markets also had a difficult time last week. Stocks from basic resources, banks, automobiles and components were under pressure, while stocks from oil and gas, media, personal and household goods sectors managed to close broadly flat. Technically, European indexes are below key support levels. Downside acceleration is favoured.

COMPANY PREVIEW

Thomas Cook Group (GBp 285.5 ; 15.01% ; TCG ; 0)

On Tuesday, the Thomas Cook Group is expected to report FY pre-tax profit of E332.6m on revenues of E11.6bn. At the end of last month, the group anticipated doubling operating profit to E620m over three years. At the beginning of November, Thomas Cook said that FY07 profit had almost met its forecast thanks to more travelling orders from Scandinavian and French customers.

Goldman Sachs (USD 210.67 ; -3.31% ; GS ; GS.N)

On the same day, in the US, Goldman Sachs Group will post Q4 EPS of $6.63 ($6.59 a year earlier). Two weeks ago, the group's unit received European antitrust approval to acquire a stake in Sintonia. In the same period, the group and Cargill's private equity unit together sold the UK's natural gas fired power plant at Teesside. About a month ago, Goldman Sachs announced a plan of raising a new hedge fund with $4bn-$6bn.

Oracle (USD 21.2 ; 0.28% ; ORCL ; ORCL.O)

Wednesday, Oracle Corp is scheduled to deliver Q2 EPS of $0.27 ($0.22 last year) on sales of $5bn ($4.16bn). At the beginning of this month, the Co acquired Moniforce to take advantage of its programs. In November, its $6.7bn offer for BEA Systems was rejected. Not long before, Oracle planned to launch a product to allow its customers run a variety of programs on a single server computer.

Immoeast Immobilien Anlagen (EUR 7.29 ; -5.81% ; IEA ; IEA.VI)

Thursday, Immofinanz is seen posting Q2 net income of E206.5m. Several weeks before, the Co applied for a regulatory approval of its property acquisition project from Bawag PSK Bank worth E500m. In the middle of November, Immoeast bought the Atrium Park development in Budapest at the total cost of appx. E100m. Earlier, the Co's shareholders approved a dividend payout programme of withdrawing E150m from FY07 profit to pay E0.33 a share.

Walgreen (USD 36.59 ; -1.4% ; WAG ; WAG.N)

Finally, Walgreen will deliver Q1 EPS of $0.44 ($0.43 a year earlier) on sales of $14.14bn ($12.7bn) on Friday. Last month, the Co announced that a high target for store growth may not be suitable for the Co. At the beginning of November, Walgreen acquired two pharmacies from TabSafe Prescription Services. In the same period, the Co offered AARP's members a discount, including at least 20,000 health and beauty products through a new catalogue and website.