US markets flat during quiet week

MARKET OUTLOOK

- US: US markets remained broadly unchanged last week due to a lack of major reports on the corporate front. Stocks from the cons. durables, real estate and pharma. and bio. sectors were under pressure while stocks in the insurance, telecom. services and energy sectors traded on the upside. Oil and gold rose, heading towards their highest level for the year. On the economic front, data showed the US housing market remains fragile. From a technical point of view, the outlook remains weak with further risk lying towards the downside.

- EUROPE: As usual, European markets followed Wall Street's mood with low trading volumes. Shares in the health care, construction and materials and telecommunications sectors fell, whereas stocks within the industrial goods and services, technology and chemicals sectors traded up. Many European markets (Germany, Spain, Switzerland) are closed today, Monday, in addition to tomorrow. European indexes should remain volatile this week, waiting for a lead from Wall Street.

COMPANY PREVIEW

Air France-KLM (EUR 23.85 ; 1.92% ; AF ; AIRF.PA)

Last week, Air-France KLM entered eight weeks of exclusive talks to buy Alitalia. Technically, the stock has been trading in a E22 - E26 range for two months pressured by rising oil prices and concern about slowing economic growth.

Berkshire Hathaway (USD 4685 ; 5.49% ; BRK/B ; BRKb.N)

Last week, Berkshire Hathaway agreed to buy 60% of privately held Marmon Holdings for $4.5bn. The remaining 40% will be acquired through staged acquisitions over a five to six year period for considerations to be based on the future earnings of Marmon. In other news, the Co agreed to buy ING Groep's reinsurance unit for approx. E300m.

Mariner Energy Inc (USD 22.48 ; -1.23% ; ME ; ME.N)

After the close Friday, Mariner Energy said it agreed to acquire in cash additional Spraberry interests in the Permian Basin from an undisclosed party for approx. $122.5m and StatoilHydro's Gulf of Mexico shelf operations for $243m.

Bed Bath and Beyond (USD 29.11 ; -0.1% ; BBBY ; BBBY.O)

This Thursday, Bed Bath and Beyond is scheduled to deliver Q3 EPS of $0.51 ($0.5 a year ago) on sales of $1.77bn versus $1.62bn last year. At the beginning of December, the Co set up its first new location in Richmond Hill, Canada with 34,000 sqft of quality lifestyle merchandise and home furnishings. About two months ago, Bed Bath and Beyond's Q2 profit exceeded the consensus and it announced a $1bn share repurchase programme.

Monsanto (USD 111.25 ; 2.57% ; MON ; MON.N)

On the same day, Monsanto may present Q1 EPS of $0.35 ($0.18 a year ago), while sales are expected to rise to $1.8bn compared with $1.5bn last year. About a month ago, Monsanto announced it would cut carbon emissions from its US operations by 6% or buy offsetting contracts from Chicago Climate Exchange to enhance its reputation. In November, the Co said it expected gross profit to double to $8.5bln in five years because of 'a good outlook' on seed sales.