Business & Financial News

Bourbon on Tuesday released the results down in the first half of 2010 due to growth in its operating costs, but said the group still confident in its ability to achieve the objectives of its plan 2011-2015.

As part of its Strategic Plan 2011-2015, the specialist marine services for offshore oil plans to invest two billion dollars in the construction of 80 supply vessels and 64 vessels transporting personnel to operate in 2015 a fleet of 600 vessels dedicated logistics services in the continental offshore and deep offshore.

Over the same period, Bourbon is also an average annual growth in sales of its offshore division by 17% availability rate of its fleet of more than 95% and in 2015 a ratio of gross operating income (EBITDA) on revenues of 45% in the offshore.

Speaking of prospects, the group recalled that "the activities of the offshore market is expected to in the second half of 2010 a recovery of investment of petroleum exploration and in the production and maintenance" and that recovery is already sensitive in West Africa and Asia.

Bourbon also stresses has already ordered 39 vessels Offshore worth 580 million dollars and that its program of asset sales worth 500 million euro, launched the sale of 16 of its bulk carriers should continue with the sale of securities it holds even in the candy company Bourbon Tay Ninh.

The offshore fleet amounted to 357 ships in late 2009.

The group posted a first half net profit group share of 41 million euros (-50.1%), operating profit of 39.4 million (-65.3%), EBITDA of 168.5 million (-2.5%) and a turnover – already published – of 490.4 million (+4.7%).

"In (a) adverse market, the decline in gross operating surplus is explained in particular by the slow growth of revenue growth and operating costs related to the large number of ships entering the fleet "said its CEO, Jacques de Chateauvieux, quoted in the statement.

Bourbon has endorsed the end of July an agreement to sell 16 bulk carriers with the American Genco Shipping & Trading. After the divestitures, the Bulk Division of Bourbon hold his own a cement company and will continue to operate on average 10 to 12 bulk carriers.

Jacques de Chateauvieux told Reuters in early June that the first six months of 2010 constitute a "semester horribilis but the second half would be better, especially in terms of rising rates of use and price.

Infineon announced Monday the sale of Intel's mobile solutions activities (WLS) for $ 1.4 billion (1.1 billion euros) in cash, which will allow the group to strengthen its U.S. presence the component market for smartphones.

The transaction is expected to close in the first quarter 2011, Infineon said in a statement.

Intel said that its side activities acquired the German group would retain their independence.

"The acquisition of the WLS Infineon strengthens the second pillar of our IT strategy, internet connectivity, and allows us to offer a complete portfolio of products," said in a separate statement the CEO of Intel Paul Otellini.

Three sources familiar with the matter have told Reuters that Intel and Infineon were very close to an agreement.

Wireless Solutions Division (WLS) of the German group achieved a turnover of 917 million euros for the last fiscal year ended, about 30% of the total turnover of Infineon (3.03 billion).

In the market for semiconductors for mobile devices, Infineon was far behind industry giants such as Qualcomm, Texas Instruments and Broadcom.Clients of WLS include leading groups such as Nokia, LG and Apple.

Intel, meanwhile, had a weakness to fill in the moving parts: if its Atom range, with some success on the market for "netbooks" entry-level, is virtually absent from the segment of smartphones, the most carrier and the most lucrative market now.

Infineon would instantly have a heavyweight Intel (mobile market) and would win three or four years of R & D (research and development), "he said last week that Flint Pulskamp, an analyst at IDC, while the operation was still mentioned in the conditional.

Intel continues briskly and its acquisition strategy following the announcement of the August 19 purchase of McAfee, a computer security specialist, for 7.7 billion dollars.

Infineon's shareholders should enjoy the assignment because it could pave the way for the payment of a dividend.

The U.S. National leading daily, USA Today, will reduce its workforce and begin a reorganization of its services to take greater account of the digital platforms.

The newspaper, published by Gannett Co., announced Friday his intention to part with 130 of its employees, reported Ed Cassidy, a spokesman for the newspaper.

The announcement comes as the industry press hardly stem the decline in sales advertisements and the number of readers, more and more people turn to Internet for information and smartphones.

Against this backdrop, USA Today has introduced five new departments focused on the digital product development and business.

USA Today, the second American newspaper in terms of importance, has seen advertising revenues fall in recent years. He has sold 520 ad pages in the second quarter against 602 last year to the same period.

BHP Billiton, the first global mining group, announced Wednesday a 47% increase in its half-yearly profits, a result consistent with expectations of analysts supported by the rise in the price of iron ore and copper.

BHP, which last week launched a hostile bid of 39 billion dollars on the Canadian Potash, the world fertilizer, said he was cautious about prospects for the near term indicating an expected slowdown growth in China, its largest market.

Over the period January-June, second half of its fiscal year, BHP Billiton has made a net profit before exceptional items of 6.77 billion dollars against 4.59 billion a year earlier, while 13 analysts polled by Reuters had expected a result of about 6.9 billion.

Aer Lingus has returned to profit in the second quarter despite the impact of disturbance of the European sky, and pledged to defend their independence by continuing to reduce costs until next year.

The Irish airline, which has long dominated the threat of a takeover by Ryanair, posted pre-tax profit of 15.4 million euros in the second quarter, after removing unprofitable routes with U.S. and reducing its workforce and its fuel bill.Last year, the second quarter ended in a loss of 13.8 million euros.

After two fiscal deficit in 2008 and 2009, Aer Lingus said Tuesday its forecast for 2010, the minimum balance, excluding items, although it says it is still too early to make predictions for 2011 in a economic environment as uncertain.

"There is no reason why we can not preserve our independence" has also told reporters Andrew Macfarlane, Chief Financial Officer.

In the first half, Aer Lingus has recorded an operating loss of 24 million euros because of the cost of flight bans caused by the cloud of volcanic ash.This amount is below EUR 93 million loss recorded the previous year.

The group, which wants to reduce its costs by 97 million euros by next year, said he was ready to join a major global alliances concluded between airlines.

Around 1100 GMT, the title was stable while the main Irish index posted a decline of 4.72%.

The pace of growth in the private sector in France has returned to a low of five months in August with the slower growth in services, according to the PMI survey published Monday by Markit Economics.

The increase in new cases suggest, however point to a continued recovery.

The index of activity in services fell to 59.9 in draft form, touching a low of four months, after 61.1 in July.It remains well above the 50 mark, which marks the border between expansion and contraction.

In manufacturing, the index flash has however increased to 54.7, reaching a high of two months, after 53.9 in July.

Economists polled by Reuters on average expected manufacturing PMI to 53.4 and a services index to 60.5.

The composite index – which includes services and industry – fell to 59.0 in August, reaching a low of five months, after 59.7 in July.

The sub-index of manufacturing production rose in August to reach its highest since May to 57.1 from 56.7 in July.

The sharp rise in new business in services as in manufacturing, despite an activity traditionally slows down in August, points to a continued recovery in France, where GDP grew by 0.6% in the second quarter.

The new orders component in the manufacturing sector registered 57.3 in August as against 54.5 in draft final version last month.

The increase in hiring in the services sector in August was reflected in employment growth in the private sector for the fourth consecutive month despite a continued destruction of jobs in manufacturing, although at a slowed.

The price of purchases rose in August as a result of rising commodity prices.Their rate of increase had touched a low of five months in July.

The government Friday lowered its forecast for GDP growth in 2011 reducing to 2.0% against 2.5% previously. He however confirmed its forecast for GDP growth of 1.4% this year and has not ruled out that this figure may be exceeded. However, economists expect a slowdown in growth in the second half with French phasing effects of stimulus measures.

Marc Touati, Associate Director of Global Equities

This topic is more socially and economically. In the current crisis, it is even very controversial, very "dangerous". We must therefore take tweezers in the formulation of the analysis to avoid offending the spell …

I. The model of solidarity to the French: the world's best
Originally the solidarity model, also called French social model may appear as the best in the world. Its basic principle is: high public spending and high tax burdens, but in exchange, through redistribution, greater solidarity and hence less inequality, less unemployment, less poverty and more comfort- be economic.

II.This model of solidarity no longer works
Unfortunately, the past ten years, this model is disintegrating, to the extent that public expenditures increase more and more (56% of French GDP in 2009), the tax burden is among the highest in the world. Despite this extravagant strategy, growth, structural decline, unemployment is around 10% sustainable, poverty rate increases (14% of French people living below the poverty line), including the widening inequalities in income and health and funding of the retirement pay is more assured. So the French model of solidarity is more effective.

Conclusion: This is where the controversy settled: that it must also increase public spending and taxes. If this solution is certainly easier, it is not credible: it no longer works for 20 years and is a runaway.We must therefore stop veiling the face: the only way to make solidarity in France resides in the ability of the latter to the high growth. To achieve this, we must reduce the tax burden for all, make it as fairer, while lowering the inefficient public spending, including operating expenses.

Jean Paul Betbeze, director of studies of the Credit Agricole

Introduction: The word solidarity is one of the most important part of our vocabulary, one of the most sensitive too, because it is at the crossroads between economic and social. He asked how "to society", that is to say, how to combine growth, efficiency, distribution, justice. The issue of solidarity is today more acute because the growth is not at the rendezvous.This leads to the question of wealth distribution, with the idea that certain expenses so-called solidarity have been too high and / or have not contributed to growth, as might have been expected.

I. The French social model, an exception
Solidarity meeting in fact a set of situations. Shock people (health, illness), economic shock (unemployment and social benefits) and shock (pensions) are the three sources of spending solidarity. We must study their rationale, their legitimacy and effectiveness. Looking in effect say that young people can not but be struck by the solidarity they restricted themselves to considering. The family, themselves and their friends and cronies.This sends the idea, positively, that the best solidarity begins at home and his family, but also that state support, social activities are increasingly counted in the first place the conditions for retirement and old age support . Truth and realism.

II. There can be no solidarity without growth
So we must find ways to live together solidarity and growth, after some excesses were committed and at the inability to continue as before. There can be no solidarity without legitimacy, without transparency, without verification. That is no explanation for it, without penalty to the excesses or misrepresentation and without education, to avoid any shocks. Economic solidarity corresponds to the current difficulties of the job. Unemployment is the brand.But support to individual entrepreneurs (with tax benefits) are also a de facto solidarity. Finally, solidarity must be proactive. It must be less than a correction, compensation of a preparation: training throughout life support mobility. Solidarity in the event of sickness is also essential, but it can not avoid the growing support in people themselves. Lifestyle, sport, medical conditions are independent of a reduction of medical risk and provide a happier old age, longer and less dependent on solidarity.
Conclusion: Overall, we must squarely address the solidarity at the intersection of economics and welfare, by making clearer the economy (transparency, fairness, efficiency), the general benefit of society.

Read a copy of Denis Ferrand, Director General of Coe-Rexecode by clicking here

Airbus announced that it saw its aircraft orders more than doubled this year thanks to the Farnborough Air Show which has proved very fruitful in contracts for the European manufacturer.

The subsidiary of EADS but has been part of Dubai Aerospace Enterprise cancellation of orders representing more than 3 billion dollars.

Gross orders of Airbus amounted to 286 at the end of July, more than double the 131 announced in late June.

Airbus shows 245 net orders adjusted for cancellations, which in turn amounted to 27 in July.

The manufacturer also announced to have delivered 298 aircraft since the beginning of the year.

The Farnborough Air Show, held in July in a suburb of London, symbolized in the eyes of many experts out of the recession in the aviation industry.

The European stock markets closed with gains Wednesday, benefiting from the positive impact of the publication of U.S. data better than expected, after a session focused mainly on the downside.

In the Paris Bourse, the CAC 40 index registered an increase of 0.35% to 3760.72 points, including the title borne by EDF, which gained 5.48%, boosted by the announcement of an increase in rates Electricity in France exceeds expectations and the prospect of further price increases.

The bank has weighed on prices, Credit Agricole, Banco Santander, UniCredit, respectively lost 0.79%, 0.34% and 2.75%, as well as Standard Chartered, which sold 5.18% despite the publication of results better than expected.

BMW first automaker upscale world, released on Tuesday a quarterly profit above expectations, thanks in part to the success of its Series 5 and the growth of Chinese demand.

The German poster for the second quarter operating margin before interest and tax of 9.6%, while analysts polled by Reuters had expected an operating margin of only 6%.

"This is the highest level of profitability since 2006," said Max Warburton, analyst at Sanford Bernstein, in a note, adding that BMW, Mercedes-Benz and Audi could enter a new period of record profitability when demand from China and U.S. dollar remains at current levels.

The three major German luxury brands posted higher operating margins to 9% for the second quarter, a year after the worst crisis faced by the sector since the Second World War.

"The crisis forced them to accelerate the reduction of costs. Now they have new models valued by the market, like the BMW 5 Series, Mercedes E Class and Audi A8, and they have for the first time since years of favorable currency effects, "said Georg Stuerzer, an analyst at UniCredit.

"The question is whether demand will remain stable.I think that any economic slowdown would have a moderate impact on high-end automakers, and I expect the second half shows only a seasonal decline in results, "he adds .

BMW's chief financial officer said on a conference call that we should not expect that second half results are as strong as the first, due to seasonal effects and costs associated with modernizing some models.

FORECASTS 2010 considered prudent

At the Frankfurt Stock Exchange, the action BMW gained 4.07% to 43.585 euros at 11.15 GMT, the fastest rise in pan-European Stoxx sector, which then progressed from 1.49%.

The group, which also owns brands Mini and Rolls-Royce, has reaffirmed its earnings forecast and sales for 2010, it was reported in mid-July, predicting an increase of approximately 10% of sales volumes more than 1.4 million vehicles and a higher EBIT margin of 5% in its automotive division.

Second-quarter sales of core automotive group increased by 26.2% over the same period last year to 13.67 billion euros.

The BMW brand delivered 319,946 cars in April to June, or 14.2% more than last year over the same period.Deliveries of the Series 5 show a jump of 23.6%.

"It now seems prudent in light of the results of the second quarter," noted Morgan Stanley in a note to clients.The bank expects that the consensus margin, currently at 5.2%, increasing by about one third.

BMW has also confirmed its 2012 targets, which include an EBIT margin of 8% to 10% for automotive operations.

"We believe that the value remains on track to reach a new peak in terms of profit to seven euros (per share) by 2013," says Morgan Stanley.

The situation of high-end manufacturers contrasts with that of generalists such as Fiat, which should meet shortly difficulties due to the gradual expiration of incentives for the purchase of new vehicles.