Business & Financial News

BP Plc has announced it is in discussions with the state oil company Rosneft Russia about a possible agreement.

According to the television channel Sky, Rosneft is expected to make a sizeable contribution in BP. A source close to the case, it indicates that the agreement under discussion would focus on joint exploration in the oil by the two companies in Russia and elsewhere.

BP confirms in talks with Rosneft on a possible agreement, "said a spokesman in a statement sent by e-mail.

The new CEO of BP Bob Dudley is holding a press conference Friday at 2100 GMT at group headquarters.He was in Moscow for a meeting the day "routine" with Russian Prime Minister Vladimir Putin.

Bob Dudley was forced to flee Russia in 2008 after leading the Russian company TNK-BP, which BP owns 50%.

Bob Dudley, who was the boss at the creation of TNK-BP in 2003, was forced to resign because of what he called a campaign of harassment by the billionaire oligarchs joint shareholders of TNK-BP.

In exchange the United States, BP rose more than 3% by end of session.

Banco Espanol de Credito (Banesto) said Thursday net profit down 18% for 2010, mainly because of higher bad debts.

The group posted net earnings of 460 million euros for 2010, while analysts predicted 471 million euros.

The net interest income group decreased by 4% compared to 2009, and 11% in the quarter to $ 375 million.

Bad loans of the bank also increased to just over 4% in late December, against 3.8 in late September.

Banesto, 88% owned by Santander, has set aside during the year one billion euros for bad loans.

The Paris Bourse started on a rebound Tuesday as Wall Street ended the day well above its low of the day and Alcoa started the season with better than expected results.

After being seriously affected by the eve of fears a return on sovereign debt, the CAC 40 index shows a gain of 0.63% to 3826.07 points to 9.30.

Alstom wins 3.4%, biggest increase in the CAC 40, boosted by Morgan Stanley raised its recommendation on the track this morning, "weighting in line" to "overweight" and its price target from 35 to 52 euros, according to traders.

Saint-Gobain is 2.45% while that HSBC has raised its recommendation on the title of "neutral" to "overweight".

Banks bounce, Credit Agricole (+2.5%) in the lead, after being attacked the night before. SocGen has raised its recommendation on the title, "hold" to "buy" with a view to improving its results. BNP Paribas gained 2% while SG raised its price target from 61 to 67 euros.

Other major European markets are also on the rise ahead of London and Frankfurt 0.9% from 0.38%. Of the European indices, the EuroStoxx 50 wins 0.55% and 0.6% Eurofirst 300.

The euro remains under $ 1.30 and is trading at 1.2938 / 40 against 1.2947 the previous day, while U.S. crude was steady at 89.21 dollars a barrel.

Renewed concerns about the finances of Portugal forced the Europeans to go back to the plate on Monday to deny rumors of imminent aid in Lisbon that weigh on markets.

Investor nervousness is heightened by government bonds scheduled this week in Portugal, Italy and Spain.

"(…) The possibility that Portugal or another member country (having recourse to the European financial stability) is not envisaged at this stage, "said Amadeu Altafaj, spokesman for the European Commission at his usual briefing.

Like other European politicians, he was asked about reports that a European source reported Sunday of a growing pressure on Lisbon from France, Germany and other countries the euro area so that the funding request Portugal to the European Union and the International Monetary Fund (IMF).

Berlin and Paris, added the source, want to ensure that the debt crisis of the euro area, which has already forced last year Greece and Ireland to have recourse to international assistance, do not spread to other countries.

Wolfgang Schäuble, Minister of Finance of Germany, responded by saying that Germany does not require anyone to seek assistance from the European financial stability (FESF).He added that the interests of Berlin was to defend the euro.

A spokesman for the German finance ministry had said earlier that a possible EU support in Portugal was not on the agenda of the meeting of EU finance ministers next week.

The Spanish Minister of Economy Elena Salgado for his part that Lisbon did not need to seek help from the European Union because, she said, the state is fulfilling its commitment to control public expenditure .

HIGH RISK AUCTIONS

Around 1330 GMT, the pan-European FTSEurofirst 300 stock index fell by 0.7% and the euro was changing just above $ 1.29 after touching a new low of 1.2860 to four months in the morning.

The index's flagship Lisbon Stock Exchange fell by 1.6% while the title of largest Portuguese bank, Millennium BCP, yielded 3.5%.

In general, the European banking industry dug its losses on the stock market.

On the bond market, the premium demanded for holding sovereign debt rather than German or Italian Spanish rose in anticipation of the expected emissions by Rome and Madrid.

"The crisis of sovereign debt returns to the front of the stage (…) There is considerable concern among policymakers about the crisis, which only reinforces the fears of market participants," said Niels From, analyst at Nordea.

The spread between the Spanish and Portuguese bonds to ten years and their German equivalent has reached its highest since December 1, respectively 273 and 442.

The yield spread between the debt securities of Italy and Belgium on one side and the other German Bunds has also widened to their highest in over a month.

As regards Belgium, the spread with the Bund is risen above 141 basis points, approaching its highest since the inception of the euro hit late November to 142 bps.

The investor anxiety concerning Belgium, one of the most indebted countries in the euro area, focusing especially on the protracted political crisis in the country without a government since elections in June

King Albert II has asked the government in charge of current affairs, headed by outgoing Prime Minister Yves Leterme, a draft budget for 2011 even stricter than that defined with the European Union.

The holding company Fimalac expected to announce in the coming days the purchase of the 49% stake in the group of hotels and casinos owned by Accor Lucien Barriere, wrote Friday Wansquare site.

At 14.45, the action does not lose more than 0.46% to 33.785 euros, while it is trading at less than 33.700 just before the news.

"The market will certainly love this story for Accor, Lucien Barrière is considered a thorn in their side," said one trader in Paris."This is not huge in financial terms but is clearly positive in terms of perception management if he can get out of Lucien Barriere at a price small, but reasonable," said one trader in Paris.

Accor and Fimalac would not comment on these reports and Lucien Barriere declined to comment immediately.

Accor, which took over most of the group's debt at the output of the activity of prepaid services, Edenred, is engaged in a process of asset sales.

However, in late September, the hotel group had to cancel its proposed IPO of Lucien Barriere, lack of investor interest.

Since the failure of this initial public offering, Accor has repeatedly reaffirmed the holding of the fourth Global hotel group in Lucien Barriere was not strategic and that "various options for disposal" were under consideration.

Recovery in the bottom of the range of 16.10 to 19.60 euros, which had been set for the IPO of the group of hotels and casinos, would value the 49% to 282 million euros, according to estimates analysts in September.

"If the sale price is between 280 million and 300 million euros, the market should still applaud this agreement," said another trader in Paris Friday.

The press recently quoted CVC Capital and a Goldman Sachs fund as potential candidates to the repurchase of such participation.

December has resulted in many U.S. retailers by sales below market forecasts, the cold and falling consumer spending after the feast of Thanksgiving affecting the sector.

Groups such as Macy's, Target or American Eagle Outfitters have thus missed the consensus.

"The turmoil will persist," said David Bassuk, managing director of consulting firm AlixPartners.

"The consumer is still very sensitive to price changes, however minor.It still seeks to do business. "

Some distributors, however, blamed the disappointing weather that hit the country soon after the start of the holiday season.

"We recorded better results than before the snow falls.It is indisputable ", told the group's boss Terry Lundgren at Macy's CNBC.

Other factors weighing on the sector, unemployment, stagnant always just below 10% in the U.S., and indebted households who are reluctant to spend.

Analysts predicted for December increased an average of 3.4% of sales of the 28 distribution groups, targeted by Thomson Reuters, for stores open at least a year.

A number of comparable store sales for the Macy's Group rose 3.9%, up less than estimates of 4.5%, and the group has not raised its profit forecast, which was back in action 2.4% at 15.30 GMT.

The title was also sanctioned by Gap investors, falling 7.2%, the group that reported a decline in sales at comparable number of stores.

Costco Wholesale group only gained 0.3% on the stock market, despite a 4% rise in sales, but lower than expected.

Wet Seal (-13%) reported an unexpected decline in sales, as well as American Eagle Outfitters, posting a sales decline of 11% and lowered its profit forecasts.

The sector index from Standard & Poor's has gained 23.4% in 2010, but has changed little since early December, reflecting fears of a slowdown in consumer spending.

For analysts, only profit forecasts could support up during the distribution sector.

According to the Nobel prize for economics, the path chosen by the austerity of Europe, under pressure from the markets, will delay the crisis.

The fund supports the euro area, decided by the countries of the European Union, "while essential (…), is a stopgap measure for the small country being attacked," said the Nobel Memorial Prize 'economist Joseph Stiglitz in the newspaper Libération dated Wednesday. The fund must extend beyond 2013 the system with temporary relief of 750 billion euros has been set up in the emergency in May and has already intervened to support Greece and Ireland.

However, "risk remains" for the eurozone, according to Stiglitz. "Uncertainty is the same as six months ago. We knew then that Ireland would experience a violent crisis. We knew that the necessary reforms for the long term viability of the euro area should be made," adds there.And if "Spain was lucky to enter the crisis with a budget surplus and a low percentage of debt relative to gross domestic product" and that Italy, "very in debt, was able to limit its budget deficit "The situation" remains fragile, "said the economist.

He said that "if Europe is weakening further, the noose tightens. And the anxiety will grow" on the ability of countries attacked cope with their debts. Now, says Stiglitz, "the path chosen by the austerity of Europe, under pressure from the markets, will delay the crisis, weakening the most vulnerable links in the euro area and EU" . According to him, "the ideology of free market, allowing financial bubbles, binds the hands of politicians."

"Many European leaders have not understood the need to address the regulatory system and deliver the energy of the finances, who knows nothing about the economy, what to do," says there. And does it hold, "the euro, for lack of appropriate policies and institutions balanced (…), may disappear."

The manufacturing activity hit its 17th month of growth in December in the U.S., further evidence of the strengthening economic recovery in the country, according to the index of industrial purchasing managers released Monday.

This index, calculated by the Institute for Supply Management (ISM), was 57 for the month of December, against 56.6 in November and 56.9 in October.

The 57 analysts and market economists polled by Reuters had forecast an index to 57.

The new orders component, which prefigures the evolution of the activity for the months ahead rose to 60.9, against 56.6 in November and 58.9 in October.

This job has instead declined.She stood at 55.7 against 57.5 in November.

The ISM index is calculated from a survey of 350 industrial companies.