Business & Financial News

Wall Street should end the year 2012 on a moderate gain, despite the risks posed by the debt crisis in the euro area in global activity and a U.S. growth likely to remain sluggish, according to a Reuters poll published Thursday.

Analysts surveyed are however optimistic about the economy of the United States and many are in stock price ratios of estimated earnings (PER) historically low a supporting factor for the rating.

All concerned, however, the debt crisis in Europe, who falter world stock markets in recent months.

The Standard & Poor's 500 benchmark for fund managers, should finish next year on an increase of 7.5% to 1340 points, compared to the closing of nearly 1.

The billionaire is the target of a tax adjustment record says Tuesday Médiapart site. The IRS would make him pay including the concealment of twelve bank accounts abroad and the acquisition of the island secret watering. Liliane Bettencourt at the fashion week in Paris, January 26, 2011.

Nearly 78 million euros. This is the tidy sum claimed by the IRS to Liliane Bettencourt said Tuesday the site Médiapart, who had access to the report of the National Directorate of tax audits (DNVSF). "These are the amounts charged (including penalties and fines) under the wealth tax for the years 2004 to 2010 and, under the income tax for the years 2006 to 2009. The Negotiations are underway on this issue, counsel for the heir seeking a reduction in the total amount of this addition, "the site.

Morgan Stanley said Wednesday it posted a profit in the third quarter, supported by an accounting effect that stems from a new valuation of its debt.

The second U.S. investment bank posted a profit of $ 2.15 billion (1.55 billion), $ 1.15 per share against a loss of 7 cents a year earlier.

Net banking income rose 46% to 9.89 dollars.

Excluding a gain of $ 3.4 billion attributed to an adjustment of the value of its debt, Morgan Stanley gained 2 cents a share.This is related to an accounting rule known as an "adjustment to the valuation of debt" (debt valuation adjustements or DVA).

Clearly, the fact of integrating into account the increased risk associated with a reduced commitment required of the holder, thus generating accounting profits.

Before Morgan Stanley, JPMorgan and Goldman Sachs have also used the accounting process.

Forward Exchange, the title of Morgan Stanley advanced 18 cents to 16.81 dollars.

Income from its trading activities more than doubled from the third quarter of 2010 and an increase of 24% over the period April-JuneThis sharp increase reflects the gains attributable to the DVA.

Its asset management segment has meanwhile reached a revenue of 3.26 billion dollars, 5% more than last year at this time, but less than the second quarter.

GNP derived from asset management is in turn stood at $ 215 million, 73% from the third quarter of last year and 67% less than in April-June 2011.

This decline is attributed to losses on investments in its banking business and its activities in real estate.

Power focus on health is a major strategic focus for large food manufacturers, but their ambitions are hampered by regulations become more stringent and consumers more wary of offering is often expensive, analysts said.

The major industry players such as Danone, Nestle and Unilever should nevertheless continue to invest in these foods which the operating margin is much higher than ordinary food, they say.

The taxation of the "junk food" makes this strategy even more relevant.Denmark has introduced a tax on products that contain saturated fats and France wants to introduce a tax on sugary drinks.

The global market for "functional foods", expected to provide a benefit to consumers with diabetes or obesity, is estimated at 150 billion.

"The food chain can no longer ignore the trend nutrionnellement correct.This is an important issue given the aging population and increased diseases such as diabetes in developed countries, "said Isabelle Senande, director of studies at Xerfi.

But, she adds, "given the regulatory, industry think twice before launching."

One analyst, who requested anonymity, believes that for his position "is a condition of survival, not a niche market."But, he adds, "industry groups are becoming more cautious as inflation promises led to a tightening of regulations."

90% OF CASES ACCEPTED

The bifidus yoghurt, dairy products fortified with calcium and omega 3, or branded foods "low fat", "no sugar added" or "high fiber" are subject to strict control of the European Food Safety Authority (EFSA), which ensures that the benefits put forward by the industry are justified scientifically.

Danone, which boasts of wanting to "bring health through nutrition," had experienced a crushing defeat in 2009 yoghurt Essensis that would "feed the skin from within."For its part, Nestlé has had a few days ago to withdraw his drink Nesfluid after only one year of marketing.

The Danone Actimel can show that it "strengthens the body" and that Activia "helps regulate transit in 15 days". The European regulator has however endorsed Danacol "reduces cholesterol" or Densia and Petit Gervais "that help maintain bone density."

At the National Association of food industries, Cécile Rauzy, project quality, nutrition, regrets that the demands of the EFSA is based on criteria "that are not necessarily the field of nutrition but to the pharmacy," the that could "slow the nutrition research."

Of the 2758 claims assessed between 2008 and 2011, the EFSA has delivered 90% of negative opinions.In particular, it rejected all those on fiber because, judging that their beneficial effects on intestinal transit had not been demonstrated.

The EU regulation on consumer information, passed last week and will be published by the end of 2011, require nutrition labeling for all companies.

"This is a major change because of the 10,000 enterprises in the French food industry, 95% are SMEs, many of which have never been labeling or nutritional analysis," said Cecile Rauzy.

BYPASS STRATEGY

Also in 2012, all health claims must be submitted to the French health authorities and the EFSA opinion which must be approved by the European Commission before being published on a register of authorized health claims. Only after the company can rely on it.

For Cecilia Rauzy, this procedure could lead very long "all small businesses, as well as large groups, to question a reorientation of their research."In fact, few major innovations have recently arrived on the shelves of distributors, agribusiness around obstacles by offering natural products with no artificial additives or colorants.

Francis Priest, an analyst at CM-CIC Securities, believes however that "the consumer is willing to pay more for food really good for his health in mature as in the emerging".

With margins of 13% to 18% which gives it a medical food, against 12% for an ordinary product, a company completely marginalizes the impact of the rising cost of raw materials, says the analyst.

In order to develop this market, industry players segments of business or carry out acquisitions.

Thus, Danone has created a division "Medical Nutrition." Nestle it launched last year a division specializing in health encompasses both activities in the nutrition of infants and sick and Jenny Craig, its subsidiary concurrent Weight Watchers. Without complex, the Swiss group has offered in the wake of frozen pizza, Kraft Foods for $ 3.7 billion.

At the same time, 51% stake in Yoplait were acquired for 1.2 billion euros by the American General Mills, while PepsiCo has offered the Russian group of dairy and fruit juice Wimm-Bill -Dann to 4.1 billion euros.

UBS has relieved the market by announcing Tuesday that it still anticipates a modest net profit for its third quarter despite the loss of $ 2.3 billion due to unauthorized transactions a dishonest broker in London.

This estimate includes the cost of 400 million francs (329 million) in restructuring charges, said in a statement the number one bank in Switzerland.

UBS had announced in late August that it intended to eliminate almost 3,500 jobs to save about two billion francs by the end of 2013.

Net new money from wealth management activities should be comparable to the second quarter, the bank added.It recognizes that fraud will impact slightly the BIS tier 1 ratio, but qualifies its position as capital of "solid".

The action of UBS sells 0.99% to 9.99 francs at 10:42, while the Swiss blue chip index lost 1.39% and the index of European bank leaves 3.25%.

UBS was able to register gains on own credit related financial commitments at fair value at 1.5 billion francs.These contributions are "essentially attributable to widening credit spreads during the third quarter," said the establishment.

In addition, the bank recorded a gain on the sale of treasury investments of close to 700 million francs in Swiss Bank & Wealth Management.

Between April and June inflows into the wealth management had reached 5.6 billion, down by half compared to 11.1 billion in the first quarter.

UBS said Tuesday that the estimates had been made at an early stage of the procedure for closing the accounts.The bank, which will release its third quarter results on Oct. 25, said no new update was expected before then.

"Finally a nice surprise after a flood of negative news", analysts said the bank Wegelin in their fax in the morning.But they also believe that the bank will roll up their sleeves to restore confidence.

Sabine Bohn, an analyst at DZ Bank, agrees: "We appreciate that the net inflows are similar to those in the second quarter but we remain cautious, because the loss due to fraud and the resignation of CEO Oswald Grübel resulted in a big loss of confidence. "

Dirk Becker at Kepler Capital Markets, is more cautious: "It is too early to become positive to UBS, while resizing the investment bank will certainly create friction and unforeseen problems."

The favorite candidate in the primary socialist believes that the rising tax burden is unavoidable. The effort must be "shared", he says. François Hollande at a rally in Rennes on 27 september 2011.

François Hollande, the favorite in the polls primary PS, said Tuesday that it would "necessarily" increase the tax burden on Tuesday at a meeting in Rennes, defending his plan to re-create 60,000 jobs in education evening mobilization teacher. "There will necessarily be a rising tax burden," said the elected Corrèze to 2,000 people, noting that taxes, fees and expenses had increased by Nicolas Sarkozy (44% against 43% of GDP according to him) while the head of state promised to reduce the "four points" in 2007.

"If this effort is not shared, there will be no recovery," he added.He lampooned the tax on soft drinks recently proposed by the government: "Why sugar? Why not salt? And the salt tax would be reinvented." The evening of a day of action in education, Francois Hollande has again defended his plan to re-create 60,000 jobs in education in five years: "I prefer a plan for education (to) a plan for prisons "he said, referring to the recent announcement by the Head of State to create 30,000 prison places.

The Greek finance minister ruled out Saturday the event of imminent bankruptcy of public accounts.

"The commentary and analysis about an imminent default or bankruptcy of Greece are not only ridiculous but irresponsible," said Evangelos Venizelos said in a statement.

"All weekend, Greece (…) is the subject of organized attacks by speculators on international markets," he lamented, ensuring also that the cancellation of the visit of Prime Minister George Papandreou United States did not meet any economic emergency.

The head of government, which was scheduled to visit the headquarters of the United Nations and the International Monetary Fund, made a stopover in London when he decided to turn back after a meeting with his finance minister.

"The prime minister felt he should not miss. He wanted to ensure that all commitments would be required of Greece," said Reuters spokesman for the government.

Moody's Investors Service downgraded Wednesday Societe Generale and Credit Agricole up a notch, and extended monitoring of BNP Paribas, adding that any downgrading of the rating on BNP would probably also limited to one notch.

The rating agency had placed the banks under review with negative implications on June 15, citing their exposure to Greece.

Experts had said that the notes were ripe for a downgrade due to higher borrowing costs in the context of sovereign debt crisis of several of the euro area.

In a context of deterioration of refinancing, Moody's said its concerns about the structural difficulties of the profiles of liquidity and financing banks had intensified.

For Credit Agricole, Moody's reduced the rating of the long-term debt and deposits to Aa2 from Aa1, a one notch downgrade and downgraded the Bank Financial Strength Rating (BFSR) to the next level too, C + to C.

Regarding Societe Generale, Moody's Aa2 to Aa3 reduced from the note of the long-term debt and deposits, with a negative outlook.The agency estimates that the impact of monitoring the Bank Financial Strength Rating (BFSR) will be limited to a one notch downgrade.

Moody's believes, however, that Societe Generale has a level of capital sufficient to absorb potential losses it is likely to record its holdings on Greek government bonds.

It added that Societe Generale will remain capitalized at a level consistent with its BFSR, even if the quality of the signature of the Ireland and Portugal were to deteriorate further.

Societe Generale issued a statement following the announcement by Moody's.The bank says it has demonstrated its ability to effectively manage the current situation in the debt crisis in Greece and has taken appropriate measures to strengthen its profile of refinancing.

Societe Generale said Monday it would conduct asset sales and cost reductions designed to release four billion euros in additional capital by 2013.

FRENCH BANKS "KEEP NOTES OF VERY GOOD"

For BNP Paribas, Moody's believes that the first French bank has a level of profitability and capital sufficient to absorb potential losses it may suffer over time due to its exposure to Greece, Portugal and the Ireland.

Moody's continues its review with negative implications for long-term rating and deposits – currently Aa2 – BNP Paribas, but considered unlikely that this under surveillance results in a downgrade of more than one notch.

BNP Paribas said Wednesday it would reduce the size of its balance sheet of about 10% by the end of 2012 and expects to achieve a capital adequacy ratio of 9% under the new banking regulations of Basel III on 1 January 2013.

Following the announcements by Moody's, the French government has reaffirmed the "strong" French banks.

"French banks have withstood stress tests that were very demanding few weeks ago," said Valerie Pécresse, budget minister and spokesman of the government after the cabinet meeting.

"There is no funding problem, or issue credit or liquidity problem for French banks," she said.

French banks are "very strong and keep very good notes," she said.

Radio Europe 1, President of the Financial Markets Authority (AMF) Jean-Pierre Jouyet noted that the cuts of note occurred already anticipated by the market.

On RTL, the governor of the Banque de France Christian Noyer, for its part felt that the situation of French banks was unlikely to deteriorate further after the decision by Moody's.

At the Paris stock exchange, securities of the three banks have opened down sharply after the announcements by Moody's, but have rapidly reduced or erased their losses, with the overall market, thanks to remarks by the President of the European Commission suggesting a forthcoming proposal for the introduction of euro bonds.

French banks are the institutions most exposed to Greece, according to the Bank for International Settlements (BIS).

Earlier this afternoon, the action Societe Generale lost 2.8% and 1.6% gave the BNP.But Crédit Agricole clinching 2%.

Citigroup cut its price targets on French banks.

Honda is recalling about 960,000 vehicles, including urban Fit, to remedy defects in the system of opening and closing windows, the group announced Monday.

No accidents were caused by these problems, said a spokesman in Tokyo.

In Japan, the recall involves Honda Fit occurred between October 2005 and October 2009. This model was also marketed in China and other Asian countries.

The group did not reveal the cost of this operation.

"The average growth in employment over the last four months was less than during the first four months of the year," the ministry.

President Barack Obama must address the Congress on September 8 to present a new government plan to stimulate hiring and boost economic growth, which has stalled since the beginning of the year. According to ministry figures, the only two industries that have actually hired in August, are the business services (28,000 net new jobs) and education and health care (34,000 balance).

Measured in the broad sense, that is to say, by incorporating the so-called discouraged unemployed, a number of other excluded from the official count, and people forced to work part time if you can find a full time job The unemployment rate in the United States rose again by 0.1 points in August, reaching 16.2%

Department figures are bleak in terms of changes in income Americans: the average hourly earnings fell slightly in August compared to July, and over one year's increase is only 1.9 % while inflation was 3.6% over the same period.