03.01.2011

Strong market performance on the first day of trading in a calendar year has been a persistant market anomaly. This year was no different and Nordic markets were up very strongly as well. Estonia is now a full Eurozone member and can enjoy having the “the most solid currency in the world” (words of Jean-Claude Juncker on New Year’s Eve to Luxembyrger Wort) as its chosen currency. Speaking of this rock solid currency, Centre for Economics and Business Research (CEBR) listed continuing crisis in Europe with a potential breakup of the Euro as its number 1 prognosis for the year. Their 10 predictions for the year are available for download via the website.

China has announced that it will continue a pilot program to support the purchases gasoline efficient cars in large cities for at least until the end of 2011. Several days ago it was announced that tax breaks for small cars will be discontinued. Chinese Vice-Premier Li Keqiang wrote in an El Pais editorial, that China is a long term investor in Spain and will continue to buy its public debt. Li, who is considered a potential successor to one of China’s top spots in the near future, is visiting Spain this week.

Chinese television reported of a ”breakthrough” made by local scientists at a national research site in the China interior in the field of spent nuclear fuel reprocessing. The re-use of irradiated fuel would, according to the local reports, allow China’s own existing small uranium deposits to be sufficient for 3000 years due to the 60-fold increase in the usage rate of uranium materials. So far the details of the nature of the discovery are not more spesific.

Lundbeck announced an update on the Nalmefene studies. Two of three large phase 3 studies have now completed. ESENSE1 was a 24-week efficacy study and SENSE a 52 week safety study, both including hundreds of patients. Yet to report is ESENSE2, a second 24-week efficacy study. Top-line data analysis shows data in line with previous studies with the product. This would mean good safety profile and statistically signicant efficacy in lessening alcohol consumption. Usually Lundbeck’s policy has been to wait for all the studies to complete until providing updates. This can be seen in context of already marketing the product and possibly due to agreement with the partner of the product candidate Biotie Therapies, for which the results of the studies are absolutely vital for securing additional funding, which it needs before next milestone payments from Lundbeck are due. Lundbeck still expects to file MAA in Europe in the second half of 2011. Lundbeck gained 6.5% today.

Renewable Energy Corporation did land first of those additional multicrystalline wafer sales contract it was alluding to in connection with the last such release. This around 1.1 billion NOK contract with an Asian cell producer will provide activity for three years.

Veidekke received a contract worth 150 million Swedish Kronor from Swedish Transport Administration for bus lanes and terminal to Gothenburg region. Skaraborgs Allehanda wrote that Volvo has fired employees due to negative views expressed about it in Facebook by the workers.

SAS gained around 12% on louder and louder rumours circling around in the pressrooms. This time the story was that there are several large airliners interested in a merger with the company. Finnair has agreed a sale and leaseback of one of its new Airbus A330 planes in a de-risking move. The company says leasing market has now improved.

Carlsberg has agreed to sell Feldschlößchen brewery in Dresden to Frankfurter Brauhaus GmbH. The brewery had been a part of Carlsberg group since the takeover of Holsten. The main product of the brewery is Feldschlößchen Pilsner and it has 172 employees. Carlsberg says the sale is a part of a new effort to focus on five core brands in Northern Germany, namely Carlsberg, Holsten, Lübzer, Duckstein, and Astra. The divestiture will result in around 130 million DKK non-cash loss for Carlsberg. (The company still has a brewery called Feldschlößchen in Switzerland, which is its main focus in that country as Carlsberg has earlier announced closures of other breweries in Switzerland.)

Seadrill is has agreed to purchase two ultra-deepwater semi-submersible drilling rigs currently under construction at the Jurong Shipyard in Singapore for around 1.2 billion USD including project management costs etc. Aker Solutions received a 30 million UD contract for mooring installation contract to FPSO offshore Angola from MODEC Offshore Production Systems (Singapore). Kitron received new orders from an offshore customer totalling 32 million NOK.

Fairstar Heavy Transport signed a contract worth 4.8 million USD with DSME to transport heavy components from Angola to Korea. PA Resources announsed it was awarded German offshore license adjacent to the company’s Danish license. This pushed the stock sharply higher today. Frontline has decided to sell VLCC Front Shanghai (very large crude carriers) for 91.24 million USD. Eitzen Maritime Services announced a contract extension.

Now that we have made it to 2011, specialised software and financial know-how firm Simcorp was able to know that 2010 sales and EBIT will not meet what the company had been projecting, soi t was high time for a profit warning. The company CEO is hoping for a better 2011. The stock started the year with a 6 per cent loss.

Novo Nordisk is launching Victoza in four Persian Gulf States. The stock nonetheless underperformed as more risky investments appeared more appealing to investors. EpiCept has regained Nasdaq complience concerning the market value.