LONDON (AFX) - Here are the top stories on AFX News

US economy grows slower than expected in 4Q

WASHINGTON (AP) - The economy grew at a sluggish 2.2 percent pace in the final quarter of last year, much slower than initially estimated, the government reported Wednesday in the sort of unusually large revision that has happened only seven times in the last 30 years.

The latest reading on the gross domestic product released by by the Commerce Department came a day after stocks on Wall Street and around the globe took a nosedive and showed the economy in a considerably weaker state than the government first estimated. It had initially reported the expansion in the last three months of 2006 to be at a 3.5 percent pace. The principal reason for the new, significantly lower estimate: Businesses tightened their belts amid fallout from the troubled housing and automative sectors.

Bundesbank chief signals further ECB rate rises

FRANKFURT (AFX) - Bundesbank president Axel Weber signalled that the European Central Bank was

set to further raise its key interest rates, which are already at a five-year high point.

EADS unit Airbus confirms 10,000 job cuts, output shifts; seeks partners

PARIS (AFX) - European Aeronautic Defence and Space Co (EADS) unit Airbus confirmed it will cut 10,000 jobs, shift aircraft production lines and seek partners for some facilities that it may sell in the long run.

Announcing details of a long awaited revamp, Airbus said it will have a 680 mln eur provision in the first quarter in connection with the job cuts. A senior official said this means there will be no provision in the full year 2006 results.

Merck sees Q1 EPS at 0.58-0.64 usd, raises FY estimate to 2.40-2.55 usd

LONDON (AFX) - Merck & Co., Inc. said it anticipates reported first-quarter EPS of 0.58-0.64 usd. Excluding restructuring charges related to site closures and position eliminations, it sees first-quarter EPS at 0.63-0.67 usd.

The guidance does not reflect the establishment of reserves for potential liability relating to litigation over the controversial Vioxx painkiller.

Munich Re posts record FY profit on favourable climatic environment

MUNICH (AFX) - Muenchener Rueckversicherungs AG said full year net profit rose to a record 3.536 bln eur from 2.751 bln a year earlier, exceeding the 3.400 bln forecast by analysts, as the insurance industry was largely spared major losses from natural catastrophes.

The company said it will propose a dividend of 4.50 eur per share for 2006, up from 3.10 in 2005.

Bayer to cut 950 jobs at Bayer Schering Pharma’s Berlin ops

FRANKFURT (AFX) - Bayer AG said it will cut 950 jobs at its Bayer Schering Pharma’s Berlin operations as part of its plan to achieve the previously announced synergy potential of 700 mln eur per year from 2009.

Bayer said that out of the total, 350 staff will take early retirement or other similar packages.

Agfa-Gevaert FY net profit 15.0 mln eur vs net loss 19.3 mln eur

BRUSSELS (AFX) - Belgian imaging technology company Agfa-Gevaert NV posted full-year net profit of 15.0 mln eur, well above analysts’ expectations who had predicted a net loss of 47.6-99.0 mln eur, against a loss of 19.3 mln eur in 2005.

Sales for the full year came in at 3.401 bln eur against 3.308 bln eur in 2005, also outstripping analysts’ expectations at 3.249-3.391 bln eur.

Australia’s Centro acquires US property trust New Plan for 3.4 bln usd

SYDNEY (XFN-ASIA) - Centro Properties Group and Centro Retail Trust have agreed to buy US-listed real estate investment trust New Plan Excel Realty Trust Inc for about 3.4 bln usd, Centro said in a statement.

Centro said it will pay cash of 33.15 usd a share cash for New Plan, which specializes in convenience retail property. Its portfolio comprises 467 properties, including 453 shopping centers in 38 US states and 14 other real estate assets.

Euro zone Jan HICP up 1.8 pct yr-on-yr vs 1.9 provisional

BRUSSELS (AFX) - The euro zone’s harmonised index of consumer prices rose a final 1.8 pct year-on-year in January, revised down from a provisional estimate of a rise of 1.9 pct, EU statistics office Eurostat said.

The HICP rose 1.9 pct year-on-year in December.

UK Feb consumer confidence index down 1 point to -8 - GfK/NOP

LONDON (AFX) - Consumer confidence fell slightly in February as Britons became more pessimistic about the UK’s general economic situation, a leading pollster found today.

In its monthly survey, GfK/NOP said its main headline consumer confidence index fell one point to -8 from -7 in January, whereas analysts polled by AFX News were not expecting any change in the index.

HBOS FY pretax profits up 19 pct, ahead of forecasts

LONDON (AFX) - UK bank HBOS PLC unveiled a better-than-expected 19 pct increase in full-year profit, helped by strong sales of savings and investment products, and a robust performance from its international division.

HBOS, the UK’s fourth-biggest bank, said pretax profit for the year to Dec 31 2006 came in at 5.706 bln stg, up from 4.8 bln stg last year. Analysts had expected profit fo 5.430 bln stg, according to a consensus forecast supplied by the company.

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