Business & Financial News

Portugal has announced measures to further savings in order to give more room for maneuver to achieve its objective of a fiscal deficit of 4.6% of gross domestic product (GDP) set for this year, said Friday the Minister Finance.

"As a precaution, the building measures (public accounts) will be strengthened, which will result in an additional impact of 0.8% (GDP)," he told reporters Fernando Teixeira dos Santos.

He spoke just hours before the start of a meeting of leaders of the area to Brussels during which they should endorse the pact as "competitiveness" proposed by Germany.

Portugal is often touted as the next country in the euro area to duty, after Greece and Ireland, call a European bailout fund.

The Portuguese government for its part believes that his budget cuts will be sufficient to enable it to weather the crisis.

JCDecaux reported Wednesday a sharp rebound from its financial results and better as expected operating margin for 2010 but it does not resume paying a dividend.

The French group, who delighted in 2010 instead of world number one outdoor advertising company in the U.S. Clear Channel Outdoor, has announced that it planned organic growth of its turnover to around 6% for the first quarter of this year.

JCDecaux reached last year with an operating margin of 23.6% against 20.4% in 2009, in line with the consensus of the editorial Reuters conducted with ten analysts.

JCDecaux, whose net income group share was multiplied by seven last year to 173.3 million euros, had reported in late January an increase of 9.1% of its turnover at constant constant exchange rates to 2.35 billion euros.

Cash flow generated in 2010 and the decision not to pay dividend puts the group in good position to capture opportunities for consolidation that may arise, "said Jean-Charles Decaux, CEO and Co-CEO, in a statement.

He said that the specialist in outdoor advertising will continue to exercise "diligence and discipline" in evaluating its growth opportunities.

The action of JCDecaux closed Tuesday at 23.7750 euros.

The Bank of France said Tuesday forecast growth of 0.8% of gross domestic product (GDP) of France in the first quarter of this year in its monthly business survey.

The survey on business climate shows a continued growth of industrial activity in February, but at a slower pace than in January, the indicator remained stable 110.

The business climate indicator in services has increased in parallel from one point to 102.

The rate of capacity utilization in manufacturing industry rose by half a point in one month to 80.4%, approaching its long-term average of 82%, under which it operates since the mid- 2008.

Forecasts of industrial foreshadow a trend of slowdown in industrial activity in the coming months, while in services, "the prospects portend a continued growth in the short term," said the BDF.

News Corp., the media group headed by tycoon Rupert Murdoch, would cost 11 billion pounds (12.8 billion euros) to buy BSkyB, said one of the five largest investors of the British group, the Sunday Times.

Fidelity Investments, which holds a 3% share in BSkyB, said in a letter to a group of independent directors, the fair value of the offer was 950 pence per share, with an additional premium for a full takeover, reports the newspaper.

This means that News Corp. would pay about three billion pounds more than its current offer to buy the number one pay TV in Britain.

The group had issued an initial offer of 700 pence a share last summer.

BSkyB's independent directors said they would require an offer of 800 pence. Some analysts said they might even ask for more than 900 pence per share.

Eurotunnel announced Friday a resumption of activity collected in early 2011, after posting a loss as expected last year because they have received all insurance proceeds related to a fire in September 2008.

The operator of the Channel Tunnel has reached an operating margin (EBITDA) of 336 million euros in 2010, up one percent compared to adjusted income last year – and 27% if Excluding the accounting for allowances received in 2009.

Eurotunnel, which has included no compensation to its 2010 results, posted a net loss of EUR 57 million and expects return to profit in 2011 with the conclusion of ongoing negotiations with insurance.

This dispute with the SNCF and Eurostar has contributed to freeze 59 million of expected claims by Eurotunnel.

Analysts on average expected EBITDA of 344 million euros in 2010 and a net loss of 51 million, according to Thomson Reuters I / B / E / S.

The share lost 0.9% to 7.256 euros by 11:50, giving a market capitalization of 3.87 billion, some analysts say disappointed by the lack of dividend increase and the lack of clear prospects.

ENHANCED CASH

The group proposed a dividend of four cents for 2010, as the two previous years.

"It seemed difficult or provocative vis-à-vis the auditors, to propose a dividend increase, while net income was a loss," said Jacques Gounon.

Public company in 1987, Eurotunnel had paid the first dividend in its history for 2008, following its restructuring in 2007 after a troubled financial journey.

The group, which has improved its cash to 316 million euros at end 2010 against 251 million in late 2009, has reaffirmed the objective of gradually improving the amount of its annual dividend, rather than make an exceptional payment to shareholders.

Without acquisition for the group could use its cash to reduce debt, whose nominal value was estimated at 3.7 billion euros at December 31, 2010.

The group intends to maintain its investments close to 49 million euros granted in 2008 and 2009, said Jacques Gounon.

He said anticipated growth of 3% Market Channel passenger in 2011 and subsequent years – a prediction which he described as prudent after an increase of 6% in 2010 – and up 4 to 5% for freight .

Eurotunnel, which says almost insensitive to higher crude prices, which penalizes the planes and ferries, however, has increased its rates this year.

"We are helped by the fuel surcharge that the ferries are forced to pay and we take this opportunity to increase our price," said Jacques Gounon.

Eurotunnel announced in January an increase of 26% of its turnover in 2010 to 736,600,000 euros, with a jump of 29% over the fourth quarter alone, despite the bad weather in December.

Wall Street has finally ended slightly higher Wednesday, the statements of the Federal Reserve said that U.S. economic activity had continued its expansion offsetting the impact of soaring oil prices.

The Dow Jones industrials gained 30 0.07% or 8.78 points, to 12,066.80. The S & P-500, wider took 2.11 points, or 0.16%, to 1308.44.The Nasdaq Composite Index advanced 10.66 points for his side (+0.39%) to 2748.07.

The Dow and the S & P 500 had a moment in the red following a new surge in oil prices after an apparent intensification of fighting in Libya with several areas of the country under air attacks.

But the stock market then stabilized before receiving end of the session a little boost from the Fed, which believes in "beige book" that the U.S. economy continued to expand at a moderate pace during the first weeks of 2011.

"The market players are starting to get used to the new environment (of high oil prices) and realize that there is no short term solution to the factors driving up prices," said Robert Lutts , Investment Officer at Cabot Money Management.

Last week, the S & P 500 was the worst weekly performance charged in fifteen weeks following the sharp rise in oil prices, investors fear that high energy prices will weigh on economic recovery.

The announcement by the firm ADP 217,000 new posts in the private sector in February, higher than expected, was also a factor in support of Wall Street.

These data bode well for the official employment figures to be published Friday.

The technology sector has outperformed the overall rating, supported by Apple, whose title has gained 0.8% to 352.12 dollars after Steve Jobs, the charismatic co-founder of the group was pleasantly surprised experts, interrupting his temporary sick to come to present the new iPad.

Texas Instruments action on his side advanced 3.26% to 36.14 dollars, benefiting from the recovery of JP Morgan on the semiconductor sector.

Yahoo has made 3.29% to 16.63 dollars after being told in advanced discussions to get out of its Japanese subsidiary, a move that would allow the web portal to release eight billion dollars in cash.

Registrations of new cars rose 13.7% last month thanks to strong sales of the Peugeot, Renault and Volkswagen while Dacia brand "low cost" of the diamond group, has lost ground due to problems supply.

French brands in total control 57.4% of the French automotive markets (204,486 units in February), according to figures provided Tuesday by the Committee of French Automobile (CCFA).

These figures confirm the words of Philippe Varin, CEO of PSA Peugeot Citroen, who said Tuesday at the Motor Show in Geneva that 2011 had started a little better than expected for the French automobile market.

The French market is characterized by a much larger share of small cars (scale "economic and lower), which represent 58% of the hexagonal market against 43% on average in Europe.

The best-selling car in the first two months of the year is the Peugeot 207, Renault Clio and before the Megane.

In January, registrations were up 8.2% year on year in January to 185,603 units. On the first two months of the year, registrations rose by 10.8% as well.

Last month, sales of PSA Peugeot Citroën rose by 11.1%, while those of group Renault (Dacia and Renault among others) grew by 13.6%.Dacia sales fall by 8.9% in registrations due to supply problems on the "4×4" Sandero.

"Despite supply constraints still exist, the Renault group achieves a market share of 28.42% on the segment (Cars + utilities) and maintains its goal for 2011: to have a market share at the same level as 2010" , Renault said in a statement.

Among foreign brands, CCFA noted a decline of 31.2% of Group registrations Mercedes while Nissan's rose 51.4%, than those of GM Europe increased by 36.2% and those of the Volkswagen Group of 28.5%.