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European Stocks Including BP May Fall; BHP, Daimler May Advance

By Adria Cimino

Oct. 4 (Bloomberg) -- European stocks including BP Plc may decline after the company said trading in the third quarter was ``significantly impacted'' by hurricanes Katrina and Rita, and after U.S. shares slipped yesterday.

Mining stocks such as BHP Billiton and Rio Tinto Plc may gain as prices of copper and gold rose. Carmakers such as DaimlerChrysler AG might advance after sales in the U.S. increased in September.

October futures on France's CAC 40 Index lost 1 to 4629 as of 7:10 a.m. in London. The U.K.'s FTSE 100 Index may slip 1.5 to 5500 and Germany's DAX Index might decline 7 to 5075, according to Cantor Index, a betting firm.

BP, Europe's biggest oil company, said it expects production to be lower than that of the second quarter. BP sees hurricane costs of more than $700 million in the third quarter. American depositary receipts of BP slipped 0.5 percent from the shares' close in the U.K. The Bank of New York European ADR Index lost 0.2 percent to 132.90.

The Dow Jones Industrial Average lost 0.3 percent in the U.S. yesterday and the Standard & Poor's 500 slipped 0.2 percent, as evidence of a pickup in manufacturing and raw-material prices suggested the Federal Reserve will continue raising interest rates.

``The slight dip on Wall Street looks to spill over on the open,'' Matthew Buckland, a trader at CMC Markets in London, wrote in a note.

Copper futures in New York rose to a record $1.76 a pound, extending a rally that began in May. Copper for three-month delivery climbed as much as 1.6 percent to $3,830 a ton in London. Gold advanced from a four-day low in Asia on an increase in buying by jewelers.

ADRs of BHP, the world's biggest miner, added 1.4 percent from the shares' close in London. ADRs of Rio Tinto, the third- largest, gained 1 percent from the stock's close in London.

U.S. Vehicle Sales

DaimlerChrysler, the world's fifth-largest automaker, may rise after September sales of Chrysler and Mercedes-Benz vehicles in the U.S. rose 3.7 percent from a year ago to 193,108.

Bayerische Motoren Werke AG, the world's largest luxury-car maker, may also advance after U.S. vehicle sales last month gained 1.6 percent from a year earlier to 15,609 vehicles, boosted by demand for new models such as the revamped 5-Series and 3-series cars.

Porsche AG may slip. The most profitable carmaker said U.S. sales in September fell 9 percent from a year earlier to 2,144 vehicles because of declining demand after Hurricane Katrina and Rita hit the U.S. Gulf Coast and fuel prices surged.

BASF, Kudelski

BASF AG may gain. The world's largest chemicals maker plans to raise prices on all the company's North American products because of a surge in costs for energy and other raw materials. The increases will occur as soon as contracts allow, BASF spokesman Bob Guenther said from Florham Park, New Jersey.

Deutsche Telekom AG might advance. The mobile-phone unit of Europe's biggest telephone company, T-Mobile, signed a multiyear marketing agreement with the U.S. National Basketball Association, becoming the league's official wireless-services partner.

Kudelski SA may climb. The world's No. 1 maker of security cards for digital pay television said after the market closed that it expects a record year at Ticketcorner after the unit won new customers in Germany and Austria. Ticketcorner signed more contracts in 2005 than in any other year since it was founded in 1987, it said.

Latecoere SA may increase. The French maker of doors for Airbus SAS and Empresa Brasileira de Aeronautica SA said first- half profit rose 25 percent from a year earlier to 11.1 million euros, as plane makers delivered more aircraft.

Ahold, Boots

Royal Ahold NV may increase. The owner of Stop & Shop and Giant stores may be interested in buying parts of Albertson's Inc. and will report its first annual profit since 2001, Chief Executive Officer Anders Moberg said in an interview. He ruled out buying all of Albertson's, the second-largest U.S. supermarket company. Moberg said he's had no contact with Albertson's CEO Larry Johnson. Boise, Idaho-based Albertson's put itself up for sale last month.

Unaxis Holding AG might advance. Europe's third-largest maker of semi-conductor equipment acquired a maker of precision motors from France's Snecma SA to expand its unit that makes equipment for space exploration.

Boots Group Plc may slip. The owner of the largest U.K. drugstore chain had its Baa1 long-term credit rating put on review for possible downgrade by Moody's Investors Service, which cited uncertainty regarding the effect of its merger with Alliance Unichem Plc on the future debt-protection measures of the proposed merged entity. The company announced yesterday it will merge with Alliance Unichem in a stock transaction valued at 3.16 billion pounds ($5.55 billion).

Asian stocks rose, led by exporters, after the dollar strengthened, boosting the value of their overseas sales. The Morgan Stanley Capital International Asia-Pacific Index, which tracks more than 900 stocks in the region, added 0.5 percent. The Nikkei 225 Stock Average advanced 1 percent.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.

Last Updated: October 4, 2005 02:19 EDT

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