Business & Financial News

Since he became head of Sanofi-Aventis, Chris Viehbacher sharpened his appetite for acquisitions, but shareholders of Genzyme, presumed target of the French group, may stay on their hunger if they hope to generate capital gains juicy thanks to him.

The Canada-Germany, aged 50, is no neophyte in the field of pharmacy as evidenced by his resume, rich twenty years in the service of GlaxoSmithKline.

In 2008 he changed his team, taking the head of Sanofi.

Known for his calm and affable, Chris Viehbacher is very popular among investors who see him as a man capable of bring welcome changes to Sanofi.

The skill he demonstrated in the conduct of his career also demonstrates the flexibility necessary in the conduct of business.

While refusing to comment on the speculation Thursday outlining its interest in U.S. biotech expert in the treatment of orphan diseases Genzyme, Chris Viehbacher warned investors that there was no question for him to overpay its acquisitions.

TO THE KILLER SMILE

Sources familiar with the matter raised up to $ 18.7 billion.

Industry observers point out that the target chosen by the employer owes nothing to chance and that the difficulties presented by the record Genzyme are not insoluble.

"On the scale of caution with respect to mergers and acquisitions, it would be at the top," said Ben Yeoh, an analyst at Atlantic Equity.

"Genzyme has something special because the company wants to solve difficulties and industrial might even say an outside would be best placed to do so."

According to one banker, Chris Viehbacher Chartist analyst training, desperate to not reproduce the error committed by the British AstraZeneca, accused of overpaid buy another U.S. biotechnology, MedImmune in 2007.

Upon arrival voila 20 months on the banks of the Seine, where is located the headquarters of Sanofi, he brought in his luggage the Anglo-Saxon in a stronghold of the French industry.

The research and development have been redesigned, increasing from 11 to six the number of R & D departments while setting off many projects.

Some employees do not hesitate to call it a "killer smile" in response to the plan to reduce staff of 4,000 by 2013.

EXTERNAL GROWTH

The pharmaceutical sector is much less critical of him and praised his outspoken and strategies down-to-earth, especially when it comes to placing the external growth among the top three priorities of the group.

For an hour, external development took the form of licensing agreements and small acquisitions in the drugstore, emerging markets or in the field of immunization.

By buying Genzyme, Sanofi pass up a gear, then signing the agreement the largest in its history since its merger with Aventis in 2004.

Such an acquisition would remain within the framework set by Chris Viehbacher has often repeated that it was aimed agreements worth up to $ 20 billion.

Some analysts however, wonder whether such a battle plan does not Chris Viehbacher to cover only the acquisitions of second order.

"I am afraid, if it is limited to that which costs less than $ 20 billion, it can capture a target that will make a difference," lamented Paul Diggle, an analyst at Ambrian Partners.

"Genzyme is not a bad choice, but even if Genzyme returned to full profitability quickly and provides a net contribution, that is not enough to bring to Sanofi growth they are seeking. This is only part of the solution. "

Last year, Chris Viehbacher has flown more than thirty acquisitions for approximately nine billion dollars.For 2010, the counter remains stuck at three billion, leaving a fair amount of scope for an acquisition size.

He is regularly asked by bankers who come to suggest to seize a particular opportunity.

With the impending expiry of many patents lucrative, Sanofi has long been presented as the obvious buyer group smaller than hers.

But Chris Viehbacher took his time, without fail, however, bind close relationships with specialists in mergers and acquisitions advice.

According to banking sources, he enlisted the services of Evercore Partners, JPMorgan and BNP Paribas to prepare his offensive Genzyme.

The Paris Bourse ended slightly higher Wednesday, taking the CAC 40 index 3.96 points, or 0.11%, to 3670.36 after a hesitant session, signing only the positive closing of the largest financial centers in Europe thanks to the good held several financial stocks.

BNP Paribas, Societe Generale and Axa have awarded the three biggest gains of the day, respectively 2.16%, 1.82% and 1.40%

PSA Peugeot has sold 4.1% after the publication of quarterly in which the manufacturer warns that the coming months will be difficult in Europe.

EADS took 2.2% in mid-session increase in response to the recommendation of Barclays Capital, has erased its gains to finish down 0.2%.

In Europe, the FTSEurofirst 300 ended on a decline of 0.13%. Values related to energy have been particularly challenged because of concerns weighing on the resumption of crude demand.

The index of pan-European energy sector lost 0.69%.

The Paris Bourse continued to rise in early trade Tuesday, supported by financials boosted by strong quarterly results of UBS and the flexibility introduced by the Basel Committee requirements for capital.

Around 9:10, the CAC 40 0.75% advance to 3663.37 points.

BNP Paribas (4.12%), Societe Generale (4.88%), Credit Agricole (7.29%) and Axa (+3.3%) are the main contributors to the increase of ACC.

The LSE is 0.42% and 0.58% in Frankfurt. As for the European indices, the Eurofirst 300 0.47% gain.

The euro goes above $ 1.30.

The United States does not provide new tax investigations against Swiss banks, said the U.S. ambassador in Bern in an interview published Saturday by the daily Le Temps.

Swiss bank UBS had been targeted last year by a U.S. survey on clients suspected of tax evasion.

In June, the Swiss parliament has ratified an agreement between Bern and Washington and foreseeing the end of this investigation. Asked by The Times to say whether further investigations were planned, Ambassador Donald Beyer responded that to his knowledge there were none.

"Nothing of the sort referred to my knowledge.The U.S. government appreciates the good faith of which Switzerland has shown upon ratification of the agreement, and its efforts to end its past tax haven, "he said.

In February 2009, UBS agreed to pay $ 780 million and provide confidential data on 280 of its customers to get rid of tax fraud charges.

Bern then agreed to provide banking information on Washington 4450 other UBS customers, undermining the secrecy rules of the Swiss Confederation.

The British economy grew almost two times more than expected in the second quarter thanks to strong rebound in the services sector and the fastest growth in 50 years of construction.

According to provisional statistics from the Office for National Statistics (ONS), the gross domestic product jumped 1.1% on the quarter, its strongest growth in four years.

Over one year it increased by 1.6%, the largest increase in two years.

These estimates far exceed the expectations of economists polled by Reuters had forecast a growth of 0.6% over the previous quarter and 1.1% over one year.

They lead also to ask how long the Bank of England will keep rates ultra low when inflation exceeds its goals.

The service sector recorded its strongest growth in three years with an increase of 0.9%.

The manufacturing sector grew by 1.6%, its strongest growth in more than ten years.

The European Union has appealed the decision of the World Trade Organization (WTO) condemned the subsidies provided to Airbus, extending at least several months the dispute between the Europeans in the United States.

Airbus and Boeing accuse several years to receive public funding they deem illegitimate.

On 30 June, a panel of WTO experts found some illegal European subsidies provided to Airbus, a subsidiary of EADS, giving due in part to a U.S. complaint filed in 2004.

A spokesperson for the WTO confirmed Wednesday that Brussels had hired an appeal just before an extraordinary meeting of the Dispute Settlement Body of the WTO.

The meeting, scheduled to begin at 10:00 am (0800 GMT), was eventually canceled due to the appeal of the EU.It was convened at the request of the United States for the adoption of the June decision by the panel of experts, which would have forced the EU to end in 90 days to grant British, German and Spanish on the A380.

"This issue is too important to allow misinterpretations Group of Experts (DSB) without challenge," the EU trade commissioner Karel de Gucht, in a statement.

THE COMPLAINT OF THE EU STILL UNDER REVIEW

The call of the EU must be treated within 90 days, according to WTO rules.

In the day Wednesday, a lawyer for Boeing reported confidence in Boeing regarding this procedure.

"We are confident about the outcome of this appeal, as we were when the U.S. had opened the proceedings," said Robert Novick, a member of the firm WilmerHale."We are confident that the outcome of this appeal will be known by the end of the year."

Airbus also said he was confident about the outcome of the appeal of the European authorities.

"Today, the appeal gives Airbus hopeful that some of the infringing material will be reviewed and reversed – in particular arguments on export subsidies," he told Reuters communications director of manufacturer, Rainer Ohler.

A complaint against the European American aid mechanisms to Boeing would be decided on July 16, but the decision has been postponed to mid-September.

Louis Welsh, CEO of EADS, has held this postponement unfair.

Hermes International is a strong increase in EBIT in the first half, exceeding the growth of its turnover to 23% emerged over the period.

The luxury group has also raised its target for sales growth for the entire year as it is now up 10 to 12%, against at least 5% expected previously.The slowdown of the other half is attributable to a less favorable comparison based on the second part of the year.

Hermes has done in the April-June quarter, second year, a turnover of 567 million euros, an increase of 19.8% at constant exchange rates.

Throughout the first half, sales came in at 1,074.7 million euros, up 20% at constant exchange rates and 22.8% after taking into account the impact of favorable currency rates.

"The activity was particularly strong in the group's stores and most businesses show strong growth Hermes," the company said in a statement.

Hermes, which will publish its full interim results on August 31, table as an improvement of at least one point of its current operating margin as a percentage of sales throughout the year.

The action Hermes closed Monday at 114.80 euros, giving a market capitalization of more than 12 billion euros. Since the beginning of the year, the stock has gained 23% after a decline of nearly 7% over the whole of 2009.

After a disappointing set of statistics and an unexpected reversal of investor sentiment on the results of the second quarter, Wall Street will be difficult to recover.

The quarterly banking stocks and technology once again dictate the mood of the market during a week marked by an avalanche of results.

But it will be difficult to revive the optimism when the main index tumbled nearly 3.0% Friday.

The minutes of the last meeting of the Monetary Policy Committee of the Federal Reserve has renewed concerns last week, displaying a greater concern on the pace of recovery.

A series of statistics on disappointing consumer confidence and activity in the industry have further cast doubt, investors do not know if we now talk of slump or beginning of a relapse into recession.

"That does not mean that the market can not rebound, but structural problems are there and there is no doubt," said Joe Saluzzi of Themis Trading.

From a technical standpoint, the picture is even more uncertain.The Standard & Poor's 500 moving in a narrow margin after failing to stay above 50 day moving average at around 1090 points.

The Nasdaq composite on his side failed to cross the threshold of the moving average 200 days but has wide support around its 14 days moving average at 2171 points.

For the week, the Dow Jones lost 1.0%, the S & P 1.2% and the Nasdaq 0.8%.

Bernanke heard by THE CONGRESS

Among the results expected in the coming days include 12 companies in the Dow Jones as well as major names in finance including Goldman Sachs and Morgan Stanley and the blue chip sector of technology as Apple, Texas Instruments and Qualcomm.

Second-quarter results should show an increase of 28% over the same period last year, according to Thomson Reuters data.

Investors will also monitor very carefully the statements of Fed Chairman Ben Bernanke during his hearing biannual economic and monetary policy before two congressional committees.

He will testify before the Senate Banking Committee Wednesday, the day when President Barack Obama enact the law on the reform of financial sector regulation.The next day he will address the Financial Services Commission of the House of Representatives.

As for the days to come, is a series of statistics, including real estate, with housing starts (Tuesday) and resale housing (Thursday), but the week will be dominated primarily by the results.

Investors will pay particular attention to turnover in order to detect signs of improvement seen quarterly halftone announced by Intel and Google.

"This is the problem.They have met or exceeded expectations on cost reductions but not on the demand for their products, "said Terry Morris, senior vice president at National Penn Investors Trust Company.

"This must end quickly as the market hoped for an upturn in sales and it does not materialize," he adds.

According to Thomson Reuters data, the 48 companies in the S & P have published their results so far, 75% have exceeded analysts' expectations, 13% and 13% have reached a consensus have failed.

Regarding turnover, 71% of these companies have exceeded the consensus and 29% have missed.

Oil prices have again finished lower on Thursday, oil markets punishing U.S. economic data published in the considered disappointing day.

The crude available in August ended down 42 cents or 0.55% to 76.62 dollars a barrel, having touched 77.66 dollars a time. Brent same maturity, which was to expire eventually were down $ 0.58, or 0.75% to 76.19 dollars a barrel.

The strong performance by Intel Tuesday announced stimulates the entire high-tech sector and several companies have raised their stock price target on the world leader in semiconductors.

The turnover and profits of Intel's second quarter exceeded the consensus as well as its projected turnover.

Intel said it had made was the best quarter since its inception 42 years ago.

Intel's action increased markedly after the close of Wall Street, as well as those of several U.S. high tech companies.It gained 3.76% to 21.80 dollars Wednesday morning.

Results from Intel have positive implications beyond the semiconductor segment, said James Covello, Goldman Sachs analyst, in a note to clients.

"Microsoft, Adobe and VMware should capitalize on customers' investments in both databases and PCs. QLogic and Emulex should benefit from strong growth in servers. Ingram Micro, Synnex and Tech Data are in strong position, with reduced inventories and a current renewal of the PC, "he writes.

"We believe that the strong results from Intel are positive for Apple, Dell, HP, IBM, Seagate and Western Digital," added Maynard Um, an analyst at UBS.

Stacy Rasgon (Sanford C. Bernstein) has raised its target price of 26-27 dollars on Intel.Shawn Webster (Macquarie Research) rose from 20 to 21.20 dollars but it remains "neutral" on the title, wondering about a possible inventory adjustment in the second half.

FBR Capital and Citigroup have both raised their target to $ 32 $ 30 cons.

Thirty-two analysts are buyers on Intel, 14 want to retain the title and three sellers, according to data from Starmine.