UPDATE 1-Solvay Q2 oper. profit jumps; upbeat on plastics

AMSTERDAM, July 29 (Reuters) – Belgium’s Solvay (SOLB.BR), seeking acquisitions, rode rising plastics volumes to a 143 percent jump in quarterly operating profit from its plastics and chemicals units and said it expected plastics to remain strong.

Second-quarter recurring earnings before interest and tax (REBIT) from Solvay’s chemicals and plastics units was 194 million euros, beating the average estimate of 143 million euros from a Reuters poll.

Solvay, which produces PVC plastic used in construction and soda ash for glass, had restated REBIT from the two units of 80 million euros in the same period last year. Quarter-on-quarter REBIT rose 54 percent.

“The chemicals sector should realise a recurring operating result in line with that of last year, notwithstanding the price decreases,” the company said in a statement. “In plastics, the volume growth should support sharp REBIT expansion.”

Solvay, which sold its drugs unit to its U.S. partner Abbott (ABT.N) in September for 4.5 billion euros, reiterated its priority this year is to reinvest the cash, but gave no further hint on its acquisition plans.

Group REBIT was 183 million euros, a rise of 1 percent over last year, which included results from its drugs unit.

European chemicals companies have benefited from improved volumes as customers stock up again after the recession, while cost cuts have also helped to improved margins.

Germany’s BASF (BASF.DE), the world’s largest chemicals maker by sales, also saw improved volumes as it reported quarterly operating profit above estimates. [ID:nLDE66Q1HL]

BASF’s German peer Bayer (BAYGn.DE) and Switzerland’s Clariant (CLN.VX) are also opening their books on Thursday. (Reporting by Aaron Gray-Block)

UPDATE 1-Synthes still cautious on 2010 after in-line H1

ZURICH, July 29 – Swiss medical device maker Synthes (SYST.VX) stuck to its guarded outlook for the rest of the year, despite a rise in first-half earnings, as demand for its products slowed in Asia and the United States.

The maker of nails, screws and plates to fix broken bones posted an 11.2 percent rise in first-half net profit to $424.6 million, largely in line with the average estimate in a Reuters poll.[ID:nLDE66L1HF]

“The company does not expect the challenging and dynamic market environment to change in the short-term,” the group said in a statement.

Synthes, which also makes artificial spine discs, expects revenue growth of 5 to 10 percent in local currencies in the second half and the group said it was seeking to reverse the sales drop in its spine unit in North America.

Second-quarter sales rose 6.9 percent in local currencies to $892.2 million in the second quarter.

The company said its gross profit margin slipped to 82.4 percent in the first six months of the year from 83.1 percent in the year-ago period.

Synthes, like peers Stryker (SYK.N), Boston Scientific Corp (BSX.N) and Zimmer (ZMH.N), is facing increased pricing pressures for medical devices as global budgetary measures prompt hospitals to find ways to slash costs.[ID:nN22258939]

The orthopaedic sector has also come under pressure as many patients have decided to defer elective surgical procedures that require out-of-pocket payments. (Reporting by Katie Reid and Oliver Hirt)

Futures point to flat open for European shares

July 27 (Reuters) – European shares were set for a flat open on Tuesday, having hit a five-week closing high in the previous session, and with investors digesting a raft of corporate earnings, including BP (BP.L) and UBS (UBSN.VX).

At 0607 GMT, futures for the STOXX Europe 50 STXEc1 were down 0.1 percent. Futures for Germany’s DAX FDXc1 were flat and those for France’s CAC FCEc1 were down 0.1 percent.

(Reporting by Brian Gorman)

BP says relief well rig back at Gulf spill site

HOUSTON, July 25 (Reuters) – A rig that had been drilling a relief well to plug BP Plc’s (BP.L) (BP.N) Gulf of Mexico oil leak was reconnecting equipment to resume work at the spill site on Sunday, the top official overseeing the spill response said.

Once the last bit of pipe, or casing, is cemented in place near the bottom of the relief well this week, BP will begin a “static kill” the first week of August, retired Coast Guard Admiral Thad Allen told reporters at a briefing.

“Generally the next week will be preps, making sure everything is ready to go,” he said.

The leak remains capped after what was Tropical Storm Bonnie disintegrated over the Gulf on Saturday.

Allen had said the static kill, which involves pumping heavy drilling mud and cement into the well from the top, could start three to five days after the casing is cemented in the relief well.

He said on Sunday that the timeline was “refined and revised” after consultations with BP.

The entire operation was interrupted last week when the storm was bearing down on the Gulf.

While most rigs and ships left the spill site out of caution, ships running underwater robots that provide live feeds of the wellhead stayed and continued to operate, BP spokeswoman Jessie Baker said.

Those feeds showed no problems with the cap, which has shut in all flow from the leak since July 15, BP said.

A pair of Transocean Ltd (RIGN.VX) (RIG.N) rigs had been drilling two relief wells, the second well a backup for the first. BP suspended drilling on the second relief well July 13 so it wouldn’t interfere with the first one.

BP stopped work on the first well July 20 in advance of the storm and put a plug inside to keep it stable until the last round of casing could be installed.

Allen said on Sunday that the casing work will start “sometime in the next week” once the rig reconnects to the well, removes the plug and cleans out the hole.

While the static kill can start once the casing is in place, the relief well will still bore into the blown-out Macondo well near its bottom 13,000 feet (2.5 miles/4 km) beneath the seabed, Allen said.

Kent Wells, BP’s senior vice president of exploration and production, said in an update on BP’s website that the static kill might plug the leak on its own. The relief well will confirm that or finish the job, Wells said.

“Those two work in tandem,” Wells said.

And Allen said on Sunday that BP will still move ahead with assembling a four-vessel oil-capture system that can handle up to 80,000 barrels a day if needed. (Reporting by Kristen Hays; Editing by Eric Beech)

UPDATE 2-BP says relief well rig back at Gulf spill site

HOUSTON, July 25 (Reuters) – A rig that had been drilling a relief well to plug BP Plc’s (BP.L) (BP.N) Gulf of Mexico oil leak was reconnecting equipment to resume work at the spill site on Sunday, the top official overseeing the spill response said.

Once the last bit of pipe, or casing, is cemented in place near the bottom of the relief well this week, BP will begin a “static kill” the first week of August, retired Coast Guard Admiral Thad Allen told reporters at a briefing.

“Generally the next week will be preps, making sure everything is ready to go,” he said.

The leak remains capped after what was Tropical Storm Bonnie disintegrated over the Gulf on Saturday.

Allen had said the static kill, which involves pumping heavy drilling mud and cement into the well from the top, could start three to five days after the casing is cemented in the relief well.

He said on Sunday that the timeline was “refined and revised” after consultations with BP.

The entire operation was interrupted last week when the storm was bearing down on the Gulf.

While most rigs and ships left the spill site out of caution, ships running underwater robots that provide live feeds of the wellhead stayed and continued to operate, BP spokeswoman Jessie Baker said.

Those feeds showed no problems with the cap, which has shut in all flow from the leak since July 15, BP said.

A pair of Transocean Ltd (RIGN.VX) (RIG.N) rigs had been drilling two relief wells, the second well a backup for the first. BP suspended drilling on the second relief well July 13 so it wouldn’t interfere with the first one.

BP stopped work on the first well July 20 in advance of the storm and put a plug inside to keep it stable until the last round of casing could be installed.

Allen said on Sunday that the casing work will start “sometime in the next week” once the rig reconnects to the well, removes the plug and cleans out the hole.

While the static kill can start once the casing is in place, the relief well will still bore into the blown-out Macondo well near its bottom 13,000 feet (2.5 miles/4 km) beneath the seabed, Allen said.

Kent Wells, BP’s senior vice president of exploration and production, said in an update on BP’s website that the static kill might plug the leak on its own. The relief well will confirm that or finish the job, Wells said.

“Those two work in tandem,” Wells said.

And Allen said on Sunday that BP will still move ahead with assembling a four-vessel oil-capture system that can handle up to 80,000 barrels a day if needed. (Reporting by Kristen Hays; Editing by Eric Beech)

BP says relief well rig back at Gulf spill site

July 25 (Reuters) – BP Plc (BP.L) (BP.N) said on Sunday that a rig that had been drilling a relief well to plug the Gulf of Mexico oil leak was back on site and reconnecting equipment to resume work.

The Transocean Ltd (RIGN.VX) (RIG.N) rig “is on location, and beginning the process of reconnecting,” BP spokeswoman Jessie Baker said.

Other vessels that also left the site late Friday in advance of what was Tropical Storm Bonnie also were returning on Sunday, she said. (Reporting by Kristen Hays; Editing by Eric Beech)

Ex Credit Suisse exec says shrink banks -paper

July 25 (Reuters) – The simplest way to regulate the global banking system is to limit the size of bank balance sheets, former Credit Suisse (CSGN.VX) and Dresdner Bank board member Leonhard Fischer told German weekly Welt am Sonntag.

The financial crisis revealed some banks were too big for one national regulator to rescue, Fischer told the Sunday paper.

“All the complex approaches to bank regulation have failed. We have never had as much regulation as today. The upshot is that banks hire a couple lawyers more to circumvent the rules,” Fischer was quoted as saying.

“For me it’s about size. I would limit the size of balance sheets.”

Fischer acknowledged the size limit is an imperfect solution, adding one should not be deterred by the argument that smaller banks would mean fewer loans for the real economy.

Fischer quit Credit Suisse in March 2007 to join RHJ (RHJI.BR) International, a vehicle for private equity firm Ripplewood Holdings. (Reporting by Edward Taylor; editing by Karen Foster)

C.Suisse posts 1.6 bln Sfr net profit in Q2

July 22 (Reuters) – Swiss bank Credit Suisse (CSGN.VX)(CS.N) posted net profit of 1.6 billion Swiss francs ($1.52 billion), above forecasts, and continued to attract money from wealthy clients, the company said on Thursday.

Temasek eyeing benchmark sterling bond sale-sources

July 19 (Reuters) – Singapore state investor Temasek Holdings [TEM.UL] is looking to sell sterling-denominated bonds, its first issue in the British currency, sources with knowledge of the deal told Reuters.

Temasek could do a benchmark issue — which in industry terms is at least $500 million equivalent, sources said.

UBS (UBSN.VX), Deutsche Bank (DBKGn.DE), HSBC (HSBA.L) are likely to be lead managers for the sale, sources said.

Temasek and the banks declined to comment.

“They see sterling as an additional pool of capital for them,” said one of the sources who spoke to Reuters.

(Reporting by Saeed Azhar and Kevin Lim; additional reporting by Saikat Chatterjee in Hong Kong)

S.Korea Woori Bank to sell benchmark-sized bonds -sources

July 13 (Reuters) – South Korea’s Woori Bank, a unit of Woori Finance Holdings Co Ltd (053000.KS), plans to sell benchmark-sized 5-1/2-year bonds at around 320 basis points over U.S. Treasuries, sources close to the deal said.

The deal could be priced as early as Tuesday, the sources said.

Bank of America Merrill Lynch (BAC.N), Deutsche Bank (DBKGn.DE), HSBC (HSBA.L) (0005.HK), ING Bank (ING.AS), UBS (UBSN.VX) and Woori Bank Investment and Securities (005940.KS) were hired to manage the deal. (Reporting by Jun Ebias; Editing by Jacqueline Wong)

Swiss stocks – Factors to watch on July 9

July 9 (Reuters) – The following are some of the main factors expected to affect Swiss stocks on Friday:

ROCHE (ROG.VX)

Roche’s blockbuster cancer drug Avastin has been spurned once again by Britain’s health cost watchdog NICE, this time as a treatment for breast cancer.

For related news, click on [ROG.VX]

ECONOMY [M-CH]

COMPANY STATEMENTS [CNR-CH]

* Ems-Chemie (EMSN.S) achieved significantly higher net sales and a more than doubled net operating income in the first half-year. [EMSN.S]

EQUITY RESEARCH [CH-RCH]

FOR COMPANIES TRADING EX-DIVIDEND, PLEASE CLICK ON:

.EX.S for all Swiss stocks

.EXSMI.S for blue chips

.EXNSMI.S for other stocks

UPDATE 1-HSBC clients in U.S. tax probe – report

HONG KONG/SINGAPORE, July 6 (Reuters) – Some HSBC Holdings (HSBA.L) clients are being investigated by the U.S. Justice Department on suspicion of failing to disclose accounts in India or Singapore, Bloomberg reported on Monday, citing three people it did not identify.

Letters from the Justice Department sent to HSBC (0005.HK) clients did not mention the bank by name, but were directed to people with accounts at the bank, the report added, citing unnamed lawyers.

Gareth Hewett, HSBC’s spokesman in Hong Kong, declined to comment on the case, but said the bank “fully supports government moves for appropriate disclosure by its citizens”, and that it “does not condone or assist tax evasion”.

Two sources familiar with the matter in Singapore said there did not appear to be any concerted investigation by the U.S. Internal Revenue Service into HSBC accounts in the city-state.

Earlier this year, the U.S. government charged several former wealthy clients of UBS AG (UBSN.VX) after the Swiss bank last year admitted to actively helping U.S. citizens evade taxes overseas. Two clients of HSBC were also charged by U.S. prosecutors with concealing $45 million in unreported bank accounts. [ID:nN15258806] (Reporting by Kelvin Soh and Kevin Lim; Editing by Chris Lewis)

UPDATE 1-ABB says won’t match Emerson offer for Chloride

ZURICH, July 1 (Reuters) – ABB (ABBN.VX) said on Thursday it would not match U.S. rival Emerson Electric’s (EMR.N) improved cash offer for British group Chloride (CHLD.L), surprising some investors who expected the Swiss group to up its bid.

On Tuesday, Emerson raised an earlier offer for Chloride by more than a third to 997 million pounds ($1.5 billion) in an attempt to trump the company’s agreed 860 million deal with ABB. The Emerson offer valued Chloride at 375 pence per share. [ID:nLDE65S092]

“While we still see considerable value in the combination of ABB and Chloride and have a high regard for the Chloride management team, we must take a disciplined approach when assessing potential acquisitions,” ABB chief executive Joe Hogan said.

Chloride said on Tuesday it believed Emerson’s offer represented a “superior proposal” and, under the terms of an agreement it signed with ABB, had formally notified the Swiss company of this view.

Chloride shares stood at 386 pence at the close of trading on Wednesday, implying investors expected an improved offer from ABB. A deal with Chloride would have allowed ABB into the $8 billion uninterruptable power supply market (UPS), an area in which it has as yet no significant presence. (Reporting by Martin de Sa’Pinto; Editing by Dan Lalor) ($1 = 0.6645 pound)

Novartis’s Afinitor keeps NET cancer at bay longer

July 1 (Reuters) – Novartis AG’s (NOVN.VX) cancer drug Afinitor more than doubles the time patients with a certain type of pancreatic cancer live without tumour growth, the Swiss drugmaker said on Thursday.

Novartis has already said it plans worldwide regulatory filings this year for the potential billion-dollar seller after the drug met its primary goal in a Phase III study by significantly extending progression-free survival in patients with advanced pancreatic neuroendocrine tumours (NET). [ID:nZAT010885]

Pancreatic NET can grow aggressively and at the time of diagnosis nearly 60 percent of all patients have advanced disease, meaning the cancer has spread to other parts of the body and is more difficult to treat, Novartis said.

Although considered a rare cancer, cases of NET are increasing rapidly and have quadrupled in the past 30 years, Novartis said. The median overall survival rate for patients with pancreatic NET is 24 months and at present surgery and chemotherapy are the only available treatment options for patients with the disease, the group said. (Reporting by Katie Reid; Editing by Dan Lalor)

Swiss stocks – Factors to watch on July 1

ZURICH, July 1 – The following are some of the main factors expected to affect Swiss stocks on Thursday:

NOVARTIS (NOVN.VX)

Novartis AG said it expects to close its buy of a majority stake in U.S. eyecare group Alcon (ACL.N) in the late third quarter or fourth quarter, paving the way for it to take full control of the group.[ID:nLDE65T2IM]

For more, click on (NOVN.VX)

ECONOMY [M-CH]

* June Purchasing Managers’ Index at 0715 GMT

COMPANY STATEMENTS [CNR-CH]

* Meyer Burger (MBTN.S) said it had cancelled a 29 million euro ($35.48 million) contract with Spanish-based Pevafers after steps of a large project could not be carried out as planned due to the global financial crisis.

EQUITY RESEARCH [CH-RCH]

FOR COMPANIES TRADING EX-DIVIDEND, PLEASE CLICK ON:

.EX.S for all Swiss stocks

.EXSMI.S for blue chips

.EXNSMI.S for other stocks

Swiss stocks – Factors to watch on June 15

June 15 (Reuters) – The following are some of the main factors expected to affect Swiss stocks on Tuesday:

Healthcare

UBS (UBSN.VX)

UBS AG’s (UBS.N)(UBSN.VX) prospects hang in the balance this week as Swiss politicians vote on Tuesday on a tax deal that would draw a line under a legal dispute with the United States.

For related news, click on [UBSN.VX]

ECONOMY [M-CH]

COMPANY STATEMENTS [CNR-CH]

* Züblin(ZUBN.S) records solid results in Financial Year 2009/2010 [ZUBN.S]

* Oridion (ORIDN.S) shareholders approve motions at AGM 2010 [ORIDN.S]

EQUITY RESEARCH [CH-RCH]

FOR COMPANIES TRADING EX-DIVIDEND, PLEASE CLICK ON:

.EX.S for all Swiss stocks

.EXSMI.S for blue chips

.EXNSMI.S for other stocks

Zurich mulls Dublin HQ for life assurance -source

LONDON, June 13 (Reuters) – Zurich Financial Services AG (ZURN.VX) is looking to create a single headquarters for its European life assurance business to be based in Dublin and is in talks with the Financial Services Authority (FSA) regarding the move, a person familiar with the matter said.

The Swiss insurer said in an e-mail to Reuters that it “continues to explore ways to streamline its legal structure & optimise its capital efficiency and we have made no decisions about how this will be achieved within our Life businesses.”

Such a move would mirror a similar decision last October by Britain’s second-biggest insurer Aviva (AV.L) to cut costs by centralising its continental European businesses in a holding company in low-tax Ireland. [ID:nLM469492]

Zurich completed a similar reorganisation of its European general insurance businesses 18 months ago. (Reporting by Myles Neligan and Julie Crust; Editing by Louise Heavens)

Risk aversion could hurt JPMorgan’s Q2 -Staley

June 11 (Reuters) – A reduction in clients’s risk appetite could affect JPMorgan’s (JPM.N) second-quarter performance, its investment banking chief Jes Staley said on Friday.

Stocks | Global Markets | Funds News | ETFs News | Financials

“Client activity has reduced. Clients are taking risk off … People are a little more wary, and that may have an impact on Q2, but I think it’s way too early to tell right now,” Staley told reporters on the sidelines of a financial industry conference in Vienna.

Investment banks are experiencing more difficult markets than in the first quarter, and Switzerland’s UBS (UBSN.VX)(UBS.N) on Thursday said it faces weaker second quarter earnings after capital markets turbulence. [ID:nLDE65911O]

Staley said JPMorgan would also be affected by a drop-off in primary issuance and said while the bank had enjoyed market share gains, its top priority was serving clients.

“If you get overly focused on market share you may lose sight of your clients — and that’s the surest way to lose market share,” he said.

“It’s very hard to hypothesise what the economic impact” of proposed derivatives regulation would be, Staley added.

(Reporting by Quentin Webb; editing by Simon Jessop)

Too-big-to-fail issue remains challenge-SNB chief

June 11 (Reuters) – Working out measures to prevent that the failure of a big bank can cripple Switzerland’s economy remains a challenge and new rules on capital ratios and banks’ liquidity are not enough, the Swiss National Bank’s head said.

Financials

“These preventive measures….are not a solution to the problem (of a too big to fail bank),” Philipp Hildebrand told a gathering of Swiss private bankers in Lausanne.

Hildebrand did not comment on monetary policy or the currency, pointing to the central bank’s policy meeting next Thursday.

Hildebrand noted that the total liabilities of Switzerland’s main banks, UBS (UBSN.VX)(UBS.N) and Credit Suisse(CSGN.VX), still represented four times Switzerland’s output, meaning the issue remains a problem that Switzerland needs to tackle.

Switzerland has introduced tougher requirements on capital and liquidity holdings as well as new rules on bankers’ pay.

However, a government commission on the too-big-to-fail issue made further far reaching proposals, which would require the large banks to change their structure so they could be broken up in the event of an insolvency. [ID:nLDE63L1FD]

(Reporting by Lisa Jucca and Robin Bleeker)

RPT-UBS CEO says sees Swiss-U.S. deal on tax data

(Repeats to additional subscribers)

Stocks | Regulatory News | Global Markets

VIENNA June 11 (Reuters) – Oswald Gruebel, chief executive of UBS (UBSN.VX) (UBS.N)L, said he was confident there will be a deal between Switzerland and the United States over tax data.

When asked by reporters whether the Swiss parliament will approve a tax deal with the United States, he replied: “I am confident it will approve it.” Switzerland’s delivery of UBS client data to U.S. tax officials has been delayed after the Swiss lower house last week rejected a Swiss-U.S. deal to solve a tax dispute, triggering a new parliamentary debate. [IDnLDE6570NF]