Euronext has become the latest European exchange to acknowledge that it expects weaker results this year, after chief executive Jean-Francois Théodore told analysts it intended to invest €40m ($50m) in new products.

Following a private briefing in Paris at which the €40m was disclosed, Manus Costello, exchanges analyst at Merrill Lynch, cut estimated 2004 earnings by 11.7% and downgraded the company from buy to hold.