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Volkswagen, Schneider
By Balduin Hesse
London, Jan. 22 (Bloomberg) -- European stocks may decline on concern that earnings of exporters such as Siemens AG will be eroded as the euro trades near its highest against the dollar in more than three years.
Schneider Electric SA may drop after the world's largest maker of circuit breakers said fourth-quarter sales fell 8.5 percent as demand slowed in Europe and North America.
Futures on France's benchmark CAC 40 Index fell 12 points to 2987 as of 7:14 a.m. London time. The U.K.'s FTSE 100 Index may fall 15 to 3736 and Germany's DAX might decline 20 to 3850, according to City Index, a betting company.
The Dow Jones Stoxx 50 yesterday slid 1 percent to 2315.19, bringing the five-day retreat to 7.1 percent. A drop today would mark its biggest losing streak since April. The Stoxx 600 Index lost 1 percent to 196.28. The index has lost 2.7 percent this year.
American depositary receipts of Siemens, which gets about a quarter of its sales in the U.S., ended 1.9 percent below their close in Germany. Volkswagen ADRs finished 1.7 percent below the Frankfurt close.
The dollar may fall for a seventh day against the euro after U.S. President George W. Bush said Iraq isn't disarming. A lower dollar erodes the value of sales by European companies in the U.S. once translated into euros, and makes their products less competitive.
The dollar traded at $1.0726 against the euro at 3:49 p.m. in Tokyo, from $1.0721 late yesterday in New York. Earlier it dropped to its lowest level against the 12-nation European currency since October 1999.
Schneider said sales fell to 2.21 billion euros ($2.4 billion) in the fourth quarter. Revenue declined 5 percent in Europe in the fourth quarter, with a 10.5 drop in France, the company said. Sales in Northern America declined 6 percent in the quarter after the slowdown in non-residential construction industry worsened, Schneider said.
TUI AG might decline. Europe's biggest travel company said full-year earnings fell 26 percent as German and U.K. consumers avoided flying following the Sept. 11, 2001 U.S. hijackings and other terror attacks. The company also said it can't give a ``reliable'' forecast for operating profit this year.
By Balduin Hesse
London, Jan. 22 (Bloomberg) -- European stocks may decline on concern that earnings of exporters such as Siemens AG will be eroded as the euro trades near its highest against the dollar in more than three years.
Schneider Electric SA may drop after the world's largest maker of circuit breakers said fourth-quarter sales fell 8.5 percent as demand slowed in Europe and North America.
Futures on France's benchmark CAC 40 Index fell 12 points to 2987 as of 7:14 a.m. London time. The U.K.'s FTSE 100 Index may fall 15 to 3736 and Germany's DAX might decline 20 to 3850, according to City Index, a betting company.
The Dow Jones Stoxx 50 yesterday slid 1 percent to 2315.19, bringing the five-day retreat to 7.1 percent. A drop today would mark its biggest losing streak since April. The Stoxx 600 Index lost 1 percent to 196.28. The index has lost 2.7 percent this year.
American depositary receipts of Siemens, which gets about a quarter of its sales in the U.S., ended 1.9 percent below their close in Germany. Volkswagen ADRs finished 1.7 percent below the Frankfurt close.
The dollar may fall for a seventh day against the euro after U.S. President George W. Bush said Iraq isn't disarming. A lower dollar erodes the value of sales by European companies in the U.S. once translated into euros, and makes their products less competitive.
The dollar traded at $1.0726 against the euro at 3:49 p.m. in Tokyo, from $1.0721 late yesterday in New York. Earlier it dropped to its lowest level against the 12-nation European currency since October 1999.
Schneider said sales fell to 2.21 billion euros ($2.4 billion) in the fourth quarter. Revenue declined 5 percent in Europe in the fourth quarter, with a 10.5 drop in France, the company said. Sales in Northern America declined 6 percent in the quarter after the slowdown in non-residential construction industry worsened, Schneider said.
TUI AG might decline. Europe's biggest travel company said full-year earnings fell 26 percent as German and U.K. consumers avoided flying following the Sept. 11, 2001 U.S. hijackings and other terror attacks. The company also said it can't give a ``reliable'' forecast for operating profit this year.
