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Europe slides, techs dip
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December 15, 2000: 12:17 p.m. ET
Microsoft's profit warning hits tech stocks; chemicals up on consolidation
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LONDON (CNNfn) - Europe's main bourses closed lower Friday, dragged down by weak software shares after a profit warning from industry leader Microsoft and fresh losses on the U.S. Nasdaq.
London's benchmark FTSE 100 index fell 80 points, or 1.3 percent, to 6,183.8, with fiber-optic component maker Bookham Technology (BHM) leading the decliners with a 9.8 percent drop.
 The late trading Xetra Dax index in Frankfurt dropped 1.2 percent, or 75.56 points, to 6,394.39, led lower by Europe's biggest software maker SAP (FSAP), which tumbled 7.3 percent.
The blue-chip CAC 40 in Paris slipped 1.1 percent, or 66.11 points, to 5,828.72, with index heavyweight France Telecom (PFTE) off 4 percent and six of the top eight losers coming from the so-called "new-economy" sectors of technology, media and telecom.
In other European markets, Amsterdam's AEX index was down 2.3 percent, Zurich's SMI fell 0.8 percent, and the MIB30 in Milan slid more than 2.1 percent.
The broader FTSE Eurotop 300 index, a basket of Europe's largest companies, shed 1.8 percent, with the software and computer services segment 5.3 percent lower.
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U.S. markets fell sharply midday Thursday. The tech-laden Nasdaq composite tumbled 3.3 percent to 2,638.12, while the blue-chip Dow Jones industrial average lost 1.4 percent to 10,522.56.
Tech shares were the leading decliners across European markets, as investors digested an earnings warning after the close of U.S. trading by software power Microsoft (MSFT: Research, Estimates).
In the currency market, the euro strengthened to 89.83 U.S. cents from 89.20 cents in late trading in New York a day earlier. The European currency earlier rose as high as 90 cents -- for the first time since the Group of Seven (G-7) industrialized nations intervened to support it on Sept. 22 -- amid signs of slowdown in the U.S. economy.
"It's just a reflection of general concerns that the U.S. (economy) is heading towards a hard landing rather than a soft landing," Jeremy Hawkins, chief European economist at Bank of America, told CNNfn.com.
The latest profit warning from Microsoft was just the "icing on the cake" to trigger selling in tech stocks, he said.
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European high-tech companies took a spill after Microsoft's news, but pared early losses. In London, software firm Sema (SEM) shed 8.3 percent and Internet security company Baltimore Technologies (BLM) lost 6.9 percent.
French technology consulting firm Cap Gemini (PCAP) dropped 5.2 percent in Paris, and consumer electronics company Thomson Multimedia (PTMM) was 2.8 percent lower, while telecom-to-construction firm Bouygues (PEN) fell 5.4 percent. German electronics and engineering company Siemens (FSIE) dropped 1.7 percent.
Among telecom equipment makers, Ericsson fell 3.7 percent. A report in French business newspaper l'Agefi said the Swedish company was in talks about handing control of its cellular-phone handset unit to Japanese electronics heavyweight Matsushita Electric Industrial. The Swedish firm's handset business has depressed overall profit as it fell behind rivals such as Finland-based market leader Nokia. Ericsson declined to comment. Nokia lost 5.4 percent and Britain's Marconi (MONI) dipped 3.1 percent.
Nycomed Amersham (NAM) dropped 5.4 percent after the British maker of diagnostic imaging products said it was delaying the initial public offering of its 55 percent-owned life sciences unit AP Biotech until after the end of February. The Nasdaq listing had been slated for the end of 2000.
Nycomed also said sales growth at AP Biotech had been "held back" in the second half by delays in introducing new analytical technology.
Drug company Glaxo Wellcome (GLXO) slipped 2.1 percent and merger partner SmithKline Beecham (SB-) dipped 2.8 percent.
Drug sale an upper for BASF
 BASF (FBAS), Europe's biggest chemicals company, rose 1.3 percent after it said it was selling Knoll Pharmaceuticals to U.S. drug maker Abbott Laboratories (ABT: Research, Estimates) for $6.9 billion. Rival Bayer (FBAY) gained 2.1 percent, but Schering (FSCH) jumped 3.6 percent, to top the Dax Xetra in Frankfurt.
Outside London's FTSE 100, British chemicals maker Laporte (LPRT) surged 16.2 percent after agreeing to a £1.4 billion ($2 billion) cash takeover. The buyer, Germany's Degussa-Huels (FDHA), shed 3.6 percent in Frankfurt.
Among media shares, in Paris broadcaster TF1 (PTFI) fell 3.1 percent and missile builder-to-magazine publisher Lagardère (PMMB) dropped almost 6 percent. In London, publisher Emap (EMAP) slipped 5.6 percent and broadcaster Granada Media (GME) shed 6.6 percent.
And in a step towards trans-Atlantic arms industry cooperation, French group Thales, formally known as Thosmon-CSF (PHO) and U.S. defense giant Raytheon (RTN: Research, Estimates) said on Friday they would form a 50-50 joint venture in air defense and ground-based radar. Thales shot up 3.4 percent in Paris.
-- from staff and wire reports 
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