While the euro lost ground and European government bond prices fell and yields rose on Monday, the European markets otherwise seemed to take France’s “no” vote on the European Union constitution on Sunday in stride.

Even Turkey, which had seen its economy affected by speculation that a rejection of the constitution by France would delay its application for entry into the EU, fared remarkably well after the president of the European Commission said that the outcome would have no effect on talks toward membership in the EU.

The Turkish lira advanced 0.3 percent in relation to the US dollar to 1.370, and the ISE National-100, Istanbul’s main stock index, rose 2.2 percent to 24,977.78. In Europe, yields on the 10-year Bund were up 0.3 basis points to 3.319 percent.

Meanwhile, equities markets rose on analysts opinions that not having a constitution would not materially affect the operation of the European Union.

The FTSE Eurofirst 300 was up 0.5 percent to 1,106.79, while in Paris the CAC-40 ended the day at 4,134.87, a rise of 0.1 percent. The euro fell 0.9 percent against the US dollar to a seven-month low.

The Dow Jones Industrial Average was up 0.8 percent to 10,537.60 on Thursday, led by a 3 percent rise in shares of American International Group to $55.71.

The rise in AIG’s shares came after the announcement that the attorney general of New York had filed a lawsuit against the company and two former executives.

The Nasdaq was higher as well, buoyed by gains in the semiconductor sector. The Nasdaq composite gained 1 percent to close at 2,071.24. Semiconductors were aided by the release of a report by IC Insights that predicted that worldwide sales of computer chips would rise by 4 percent this year. Shares in Intel, the world’s largest chipmaker, gained 1.4 percent to $27.37. The S&P 500 was also up, 0.6 percent to 1,197.66.

The markets were helped by an upward revision of first-quarter gross domestic product growth figures. The new figures say that the US economy grew by 3.5 percent last quarter. This is up from the previously reported 3.1 percent.

The new figure was still a bit below the expected 3.6 percent growth, but at least one analyst said that a higher number would have indicated that the recent interest rate hikes by the Federal Reserve were not doing what they were supposed to do for the economy.

Homebuilders found the new figures especially good news because they mean that it is less likely that the Fed will begin to raise interest rates at a faster pace. Home construction and financing group Toll Brothers was their shares rise 6.7 percent to $91.50.

Investors took the bad news more seriously than the good news in Europe on Wednesday as the equities market fell slightly after rising into positive territory earlier in the day as good earnings reports took second place to an Ifo report that higher unemployment numbers and lower consumer confidence had driven business sentiment down for the fourth month in a row.

The pharmaceuticals sector had its problems, as Roche lost Tuesday’s gains to profit-taking, closing at SFr154.50, while shares in Serno were down 0.6 percent to SFr775 on warnings from the US Food and Drug Administration that the company’s multiple sclerosis drug could cause heart damage.

In the energy sector, however, OMV, the oil and gas group, rose 5.3 percent to €270.10 as its first-quarter operating profits were reported to have risen by 223 percent on acquisitions and profits from higher oil prices.

Spanish oil company Repsol gained 1.2 percent to €20.18 on news that it was negotiating with First Calgary Petroleums to enter into a joint venture to develop Algerian national gas resources. In addition, Norsk Hydro gained 1.2 percent to NKr514, while Statoil was up 0.9 percent to NKr112.25.

At the close of the day, the FTSE Eurofirst 300 had retreated 0.1 percent to 1,094.89.

Media and publishing group Bertelsmann has entered into a joint venture with Liaoning Publishing Group to distribute books to retailers throughout China.

Bertelsmann also has business relationships with other Chinese book companies, including a partnership with China Science and Technology Book company and a joint venture with Beijing 21st Century Book Chain, a national private book retailer.

The state retains tight control of publishing in China, but the opening of wholesale and retail book, newspaper, and periodical distribution to foreign investors was announced by the government last year.

The new venture, Liaoning Bertelsmann Book Distribution, will be based in the northeastern city of Shenyang and is worth Rmb30 million ($3.6 million). Liaoning Publishing will control 51 percent of the new company.

At first, the venture will focus distributing Chinese-language books, but it might eventually also distribute English-language books.

Equities markets in the eurozone were down on Tuesday, while London and New York were mixed and Asia, with the exception of the Tokyo markets, had a positive day.

Profit-taking ruled in the eurozone as the FTSE Eurofirst 300 fell 0.1 percent to 1,095.92. Advances in the oil and pharmaceuticals sectors were not enough to balance losses in telecommunications.

In London, the FTSE 100 fell 0.2 percent to close at 4982.5, while the FTSE 250 did better, climbing 0.21 percent to 7001.7. The mining sector did well, but Vodafone, the world’s largest mobile phone operator had its worst day in a year.

In the United States, the Dow Jones Industrial Average was down 0.2 percent to close at 10,503.68. However, the S&P 500 was up slightly to close at 1,194.08, while the Nasdaq was up 0.2 percent to 2,061.612 on a rising semiconductor sector.

The Tokyo markets were lower on weakness in the steel sector. The Nikkei 225 fell 0.2 percent to close at 11,133.65 and the Topix index was down 0.1 percent to 1,136.32. In Hong Kong, the Hang Seng index was 0.2 percent higher to close at 13,719.32, but volume was very low as investors awaited the results of several upcoming Chinese initial public offerings.

In Singapore, the Straits Times index rose 0.1 percent to close at 2,175.20 as technology stocks went higher. However, at one point in the day the index was up 0.7 percent, which was a 9-week high. The technology sector helped Taipei as well, as the weighted index there closed up 0.4 percent to 5,909.10. In Sydney, the S&P/ASX 200 rose 0.6 percent to close at 4,102.0.

Equities markets in Tokyo rose on Monday despite the fact that some heavy industry firms saw losses after news that they were suspected of engaging in bid-rigging in relation to bridge construction projects.

The positive movement of the markets came on news of a better-than-expected earnings report form Mizuho Financial Group, Japan’s biggest bank when ranked by assets. Friday’s good performance by Nasdaq in New York also helped.

The automotive sector saw gains, with Toyota rising 0.8 percent to close at ¥3,920 and Isuzu gaining 1.2 percent to sit at ¥257. Isuzu’s positive result came after its announcement on Friday that it would increase its involvement in Chinese light truck manufacturer Qingling Motors.

Shares in Mizuho were up 1.4 percent to ¥499,000. Technology stocks followed Friday’s New York results and advanced in Tokyo, where Sony was up 2.2 percent to ¥4,120, while Canon closed at ¥5,790, 0.7 percent higher.

The Nikkei 225 was up 1.1 percent to close at 11,158.65, and the Topix index advanced 0.7 percent to 1,137.69.

London equities markets ended both the day and the week up on Friday. The FTSE 100 was up 0.2 percent, closing at 4,971.8 for the day, with an overall rise of 1.8 percent for the week. The FTSE 250 was up 0.1 percent to 6,934.3 on the day, to bring the week’s gain to 2.1 percent. 2.7 billion shares were traded on Friday.

Meanwhile, in Europe the FTSE Eurofirst 300 was up 1.4 percent for the week to close at 1,092.68, a one-month high. Much of the Eurofirst’s success for the day rested on technology stocks. In New York, mid-day trading saw the markets slightly down for the day.

The Dow Jones Industrial Average had declined by 0.4 percent to 10,447.60, the S&P 500 was down 0.3 percent to 1,187.29, and the Nasdaq Composite was 0.2 percent lower to 2,037.90. However, the Dow seemed to be heading for a 3 percent rise on the week, while the S&P 500 was expected to end the week 2.9 percent higher, and the Nasdaq seemed to be positioned to close 3 percent higher for the week. These trends would give Wall Street the best weekly performances it has had since November.

In Tokyo, the markets were down on Friday. The Nikkei 225 fell 0.4 percent on the day to close at 11,037.29, while the Topix index declined 0.1 percent, closing at 1,129.81. Performance in Tokyo was at least partly a reaction to the decision by the Bank of Japan to temporarily ease its liquidity targets. Some analysts said that the move could be the first move toward a tightening of monetary policy, but the nation’s finance minister said that policy change was not being contemplated.

All regions in Asia saw gains in their equities markets on Thursday.

Factors in the gains included positive results in New York, falling oil prices, and data indicating that inflation is stable in the US.

Hong Kong’s market was the smallest gainer on the day as the Hang Seng index rose 0.5 percent, to 13,698.93.

Investors’ mood was subdued by rises in domestic interest rates when HSBC, Hong Kong’s largest bank, raised its prime interest rate 50 basis points and other banks soon followed suit.

Technology stocks were a factor in Singapore, as the Straits Times index had its first positive day in five sessions as it rose 0.6 percent to 2,167.27. In Taipei, technology stocks were also a factor as they helped volume improve. The weighted index up 1.4 percent to 5,970.71. Sydney post ed a five-week high, rising 1.4 percent to 4,044.5.

Tokyo markets had their best day since the beginning of the year. The Nikkei 225 was up 2.2 percent to 11,077.16 and the Topix index gained 2 percent to 1,131.42. Export-oriented stocks did especially well. Gains by importers helped the composite index in Seoul to rise by 2.3 percent to 952.09.

London’s markets were up on Wednesday, with a volume of 3.1 billion shares traded. The FTSE 100 rose 1 percent to close at 4,949.4. This was it’s highest close in a month.

The FTSE 250 was up 0.4 percent to 6,857.0. A recovery in the mining sector was one of the biggest factors in the day’s good performance.

In Europe, the Eurofirst 300 was up 1.2 percent to close at 1,087.27, a one-month high. The technology sector performed strongly, and so did the chemicals sector. Steel was also strong.

The markets in Tokyo were mixed on Wednesday. The Nikkei 225 closed 0.1 percent higher at 10,835.41, the first time in over a week the Nikkei showed a gain for the day. For seven days before, the Nikkei had fallen a total of 3.3 percent. The Topix index, however, fell 0.2 percent to close at 1,109.19.

Meanwhile at mid-day in New York, mild inflation figures and new earnings reports saw the Dow Jones Industrial Average rise 1.3 percent to 10,467.03 for its third positive day in a row. The S&P was up 0.1 percent to 1,186.91, and the Nasdaq Composite was up 1.4 percent to 2,032.27 on mild inflation figures and new earnings reports.

Trade was slow on the London equities markets on Tuesday with only 2.8 billion shares changing hands, but it was a positive day overall with both the FTSE 100 and FTSE 250 showing gains overall.

The biggest winner on the FTSE 250 was PHS Group, the workplace services company, which was up 11.7 percent to 98p after it announced that it had been approached with a bid offer.

Yell Group, a yellow pages publisher was up substantially with the announcement that it is expanding into the United States. Yell has purchased TransWestern Holdings, which publishes directories in California and Texas, in a deal worth £829 million. Yell was up 4.3 percent to 415p.

Asset management group Schroders was up even more, with a 5.6 percent rise to 727p on higher-than-expected first quarter data and the news that it was considering “external investment opportunities.”

Amvescap, another group in the asset management sector and also said to be looking for merger partners, was up 1.3 percent to 309 p.

The FTSE 100 closed 0.3 percent higher at 4,898.5 and the FTSE 250 ended the day up 0.4 percent at 6,830.7.

In the equities markets on Monday, New York opened on to positive movement, but European and Japanese markets were mostly down.

In Tokyo, new concerns about political matters in China and amid worries about gross domestic product data due out Tuesday, the Nikkei 225 fell 0.9 percent to 11,045.29, while the Topix index was down 1 percent to 1,133.66.

The FTSE Eurofirst 300 was down as well, to 0.4 percent, to 1,073.37 as a result of falling crude oil prices. The oil sector fell pretty much across the board.

Meanwhile, in early trading in London, the FTSE 100 fell 0.2 percent to 4,877.7, while the FTSE 250 was up 0.1 percent to 6,802 due to falling global commodity prices and light trade. Mining companies too a particular hit.

Meanwhile, at mid-day in New York, The Dow Jones Industrial Average had risen 0.6 percent to 10,197.69, while Nasdaq was up 0.3 percent to 1,983.51 and the S&P 500 was 0.5 percent higher to 1,159.56.

Despite these gains, the US oil sector was down on falling crude oil prices. Exxon Mobile, the largest US oil producer, was down 1.5 percent to $52.91, while oil refiner Valero Energy was the biggest loser on the S&P 500, declining 5.5 percent to $58.38.

On the strength of a positive quarterly report, Telefónica opened up 0.8 percent Monday at €13.38. Spain’s biggest telecommunications group and the world’s third largest telecom, reported that its net profits rose 36 percent in the quarter ending March 31, to €912 million ($1.15 billion). The company’s revenues rose 17 percent on the quarter, to €8.3 billion, mostly due to its purchase of 10 Latin American mobile phone companies from BellSouth last year.

The company has predicted that revenue will grow 12 to 15 percent this year, putting the first quarter well in front of expectations. Telefónica currently has 131 million subscribers around the world, including 3.5 million broadband subscribers. These broadband subscribers helped the company post a rise in sales of 6 percent in its fixed-line division despite strong competition from other providers. Profits also benefited from job cuts in Telefónica’s Spanish
fixed-line division.

Investors in Japan reacted negatively to several reports that were released after the markets closed on Tuesday to send the market down on Wednesday.

The biggest loser was toiletries and textiles maker Kanebo, which has been suffering the fallout of an accounting scandal. On reports that the Tokyo Stock Exchange will likely delist it, Kanebo fell 15.3 percent to ¥533.

Softbank, an Internet company, reported that it has had its fourth annual operating loss in a row, sending its shares down 1.95 percent to ¥4,020. NTT DoCoMo, Japan’s largest mobile phone operator, reported its first decline in operating profits. This news sent its shares down by 1.2 percent to ¥168,000.

Gamemaker Konami also reported lower profits for 2004-05, and blamed the decline on Japan’s falling birthrate. The report sent Konami’s shares 1.3 percent lower, to ¥2,260.

Not all the news was bad, though. Electrical machinery manufacturer Sumitomo Heavy Industries reported that it enjoyed a 40 percent rise in net profits in 2004-05, which brought them a record profit of ¥22.79 billion. The news sent the company’s shares up 3.1 percent to ¥465.

All this combined to send the Nikkei 225 down 0.3 percent to 11,120.70, while the Topic fell 0.4 percent to 1,145.30.

A report from the Institute for Monetary and Economic Research, a think-tank sponsored by the Bank of Korea, South Korea’s central bank, has found that private equity funds have done little for the nation’s banking sector even as they have contributed to the country’s financial stability.

Due to this finding, the Institute has advised the South Korean government to only sell its stake in South Korean banks to other banks and not to private equity funds.

Public antagonism in South Korea toward US funds makes the report look like a further dig against foreign private investment funds, but in fact the report advises against selling to any private funds, domestic or foreign.

Much of the resentment toward such foreign funds has to do with the fact that when they sell their interests in South Korean banks, they very often handle the transactions through tax havens and therefore make very large profits and do not pay any tax on those profits to South Korea.

But the information set out in the Institute’s report makes it seem that the main issue is really cost efficiency, which is determined by a bank’s expenses over it’s assets.

This, despite the fact that the cost-efficiency data is presented in a form that sets foreign-controlled institutions versus domestically-controlled banks.

The report found that foreign-run banks improved their cost efficiency from 10.7 percent in 2000 to 9.8 percent in 2004, but that Korean-controlled banks improved efficiency even more, from 12.6 percent in 2000 to 8.3 percent in 2004.

European equity markets were generally lower in by mid-afternoon on Tuesday even though performance in the transport and constructions sectors both were doing well as higher oil prices and a slow start on Wall Street both took a toll.

The FTSE Eurofirst 300 fell 0.7 percent to 1,074.37, while Xetra Dax declined 0.8 percent to 4,256.43 and the CAC-40 was down 0.5 percent to 3,998.48. P&O Nedlloyd, a Dutch container ship group, led the transport sector with a 16.percent rise to €48.47 on reports that it is negotiating a merger with Maersk Sealand, a larger rival.

Moeller Maersk, which spawned Maersk Sealand, was also up by 4.6 percent to Dkr54,500. Fraport, the Frankfurt airport operator, rose 3 percent to €32.75 after a better-than-expected quarterly report.

The construction sector was mostly up as well, with Spanish builder Actividades de Construccion y Servicios rising 2.2 percent to €20.21 after reporting positive first-quarter earnings.

HeidelbergCement was up 0.8 percent to €48.38 and Fomento de Construcciones ye Contratas advanced 1.2 percent to €43.51. Grupo Ferrovial, however, was down 1 percent to €46.11.

The Asian markets saw mixed fortunes on Monday.

The Kospi index in Seoul was down 0.6 percent, to 935.2, mostly over concerns that North Korea would carry out threatened nuclear testing.

Additionally, Hyundai Motors was fell 0.9 percent to Won52,500 and Kia Motors declined by 1.5 percent to Won12,750.

The Taiex index in Taiwan closed even at 4,966.85. In India, the Sensex index in Mumbai rose 0.7 percent to 6,430.67. In Tokyo, the Nikkei 225 was down 0.2 percent to 11,171.32 even as the Topix was up 0.2 percent to close at 1,152.48.

Profit-taking caused Japan Airlines, Asia’s largest airline, to fall 1 percent to ¥297 even though it reported higher than expected profits for the fiscal year 2004/5 and a projected a positive outcome for 2005/6.

The air carrier had warned that profits could be affected by high fuel costs. The fact that the airline’s chairman resigned early amid safety criticisms also had an effect on its performance on Monday.

Other airlines in the region seemed not to be affected by Japan Airlines’ performance and either remained at earlier levels or closed higher.

Heineken, the Dutch brewer, has announced that it will buy Patra, a Russian brewer. Patra is based in Yekaterinburg, Russia’s third largest city.

Russia is the world’s fifth-largest beer market. At the end of the Soviet era, when Mikhail Gorbachev was the Soviet leader, beer was promoted as a healthier alternative to vodka, considered to be Russia’s national drink.

The acquisition increases Heineken’s share of the Russian market to 8.3 percent, up from 7.5 percent. Heineken will buy Petra for an undisclosed amount of cash.

The purchase comes at a time when Heineken has under performed the European beverages sector by about 30 percent for the past three years and continues the company’s practice of acquiring small regional breweries in growing markets.

In 2004, Petra had net profits of $1.2 million on a turnover of $27 million.

The European equities market benefited from good news coming from the United States, ending the week on a positive note. The FTSE Eurofirst 300 was up 2.5 percent on the week to 1,086.5. 0.5 percent of the rise came on Friday.

Events in the U.S. automobile sector also helped the European carmaking sector. Kirk Kerkorian offered cash for 28 million shares of General Motors and both GM and Ford were downgraded to junk status by Standard & Poor’s.

On this news, Fiat shares gained 9.8 percent for the week to end at €5.63. Volkswagen was up 4.5 percent for the week to €33.68, while DaimlerChrysler was up 3.7 percent to €31.47 for the week, and Renault was up 3.4 percent on the week to €66.90.

Meanwhile, in the semiconductor sector, U.S. company Intel, the largest maker of memory chips in the world, announced a forecast of 10 percent sales growth for 2005. The Thursday announcement helped send the European semiconductor sector up. Infineon was up 9.8 percent for the week to end at €7.06 on Friday. This came after the company hit a low of €6.40 on April 29.

The French-Italian company STMicroelectronics rose 3.3 percent for the week to €11.25. ASML, which makes chipmaking equipment, rose 6 percent on the week to end at €11.78. Nokia continued to rise on a good first quarter report and was up 7.1 percent on the week to stand at €13.20.

The pricing of an initial public offering on the London Stock Exchange by Pyaterohka, Russia’s largest grocery retailer, ran into trouble as the company had to close nearly 10 percent of its stores because on outbreak of hepatitis A among its workers.

The chain issued the IPO in hopes of raising at least $598 million by selling 30 percent of its equity. The hepatitis outbreak initially had 109 stores closed, but 87 of them were able to reopen by Thursday, but 22 stores in St. Petersburg were still closed after 55 cases of the disease were confirmed among staff there.

It was believed that the infection stemmed from contaminated hot meals served in staff canteens by an outside caterer. The company, which has stores in Moscow and St. Petersburg, said that the closures would not impact its financial results for the year.

Additionally, those close to the IPO said that there was no effect on the sale of shares in London.

Investors in Brazil seemed to approve Wednesday of the announcement that Casino, the French supermarket chain, will increase its stake in CBD, Brazil’s largest retailer.

Casino will also take joint control of CBD. Preferred shares of the company on the Sao Paulo stock exchange gained 5.7 percent after the news was announced.

The deal, which is costing Casino €407 million ($527 million), will buy Casino a 50 percent share of voting rights in the company as well as a 68.8 percent stake of the capital in the holding company that now controls CBD.

The family of Abilio Diniz, which is the current principal shareholder in CBD, will keep the remaining 50 percent of voting shares. Mr. Diniz will remain chairman of the board of CBO. He will also become chairman of its holding company.

Casino will have equal representation on the two boards and will increase its operational management involvement in the company. It’s direct economic state in CBD will rise from 27.4 percent to 34.4 percent.

Claiming difficulty in dealing with expenses connected to adhering with Sarbanes-Oxley legislation, TV Azteca has announced that it will delist from the New York Stock Exchange.

The announcement Tuesday caused the value of its shares to fall 7 percent in early trading on Tuesday.

The company said that it cost too much to comply with Sarbanes-Oxley, which requires all companies listed on U.S. stock exchanges, foreign and domestic, to provide proof that they have in place internal controls to prevent accounting fraud.

TV Azteca called the legislation “excessive regulation” that was spurred by recent scandals such as those that hit Enron and Adelphia in recent years.

Two other companies controlled by Ricardo Salinas Pliego, the chairman of TV Azteca, will soon hold shareholders’ meetings to decide on delisting those companies as well. One of those companies is the largest electronics retailer in Mexico.

Some analysts believe that Sarbanes-Oxley is not the real issue for TV Azteca and other companies that have delisted from the NYSE in light of the fact that disclosure provisions in Mexican securities laws are moving in the same direction as U.S. law.

The move by Salinas Pliego’s companies come as Salinas Pliego and TV Azteca stand accused of securities fraud in both the United States and Mexico.

China has approved the sale of state holdings in certain select companies.

The program is a trial that will include a small number of companies, according to the China Securities Regulatory Commission.

This is the third try at resolving the problem of the sale of state holdings in Chinese companies, after unsuccessful attempts in 1999 and 2001.

The announcement does not say which sectors and companies will participate in the trial program. Rules for the trial take effect immediately and include a requirement that the commission and two-thirds of shareholders must approve the sales.

This has the effect of giving the state veto power over the transactions. In addition, purchasers of the state shares may not sell them in the first year after purchase; after that they will only be able to sell a maximum of 5 percent of a company’s equity in any 12-month period.

The state holdings involved in the trial program amount to approximately two-thirds of the equity in businesses that have a stock market value of $400 billion.