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.

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The coming months may have an air of "déjà vu" for Suez Environnement, which is likely to revise down its ambitions, as in 2009, due to the economic downturn and its impact on the volume of industrial waste.

The world number two environmental services will probably have to even make acquisitions and accelerate cost reductions to be closer to its goals 2012-2013, analysts say.

"Given the deterioration in the macroeconomic environment and its impact on the business 'waste', we believe that the group will have difficulty achieving its 2012-2013 horizon," said Julien Desmaretz, at Bryan Garnier.

Building on a "gradual economic recovery," Suez Environnement has announced that it was early 2011, at constant exchange rates, the increases of at least 5% of its turnover and 10% of its gross operating profit (EBIT, EBITDA) in 2011 compared to 2010.

He also said it expects, always at constant exchange rates, on average increases of at least 5% of its sales and at least 7% of its EBITDA over the period 2012 to 2013, he still has goals confirmed in early August .

But growth prospects that loomed earlier this year moved away, especially with the debt crisis in the eurozone, while Europe accounted for 73% of its turnover in 2010 and waste 47 %.

The International Monetary Fund even had to revise downwards in September growth forecast for 2011 and 2012.

"Asset rotation"

"We expect 6% growth in EBITDA in 2012 and 2013.For 2011, it will be fair: there are risks if the T4 seen a collapse in industrial production and prices of recycled materials, "says Yohann Terry, an analyst at Exane BNP Paribas.

While threatening a new credit crunch, the prudence of Suez Environnement on acquisitions and financial profile, however, now appear as assets against his great rival Veolia Environnement, the world leader in the industry.

Just before 2008, Veolia and had instead embarked on a series of acquisitions at the top of the cycle, particularly in Germany, Italy and the United States, which proved to be far less profitable than expected in times of crisis.

The prospects of Suez, however, been a little more pressure with the sale of 70% of Bristol Water in early October for 152 million euros, the group will probably have to make acquisitions of modest size to hope to achieve its objectives.

"The group has not changed its 'guidance', confident in its ability to fill the air hole as part of its policy of rotation of assets.Does this mean that the probability of transaction (s) reasonably sized acquisitions currently under consideration (s) by the management is high? "Questioned in a note to analysts at Natixis.

"We would not be surprised (…), even if its strategic focus is on organic growth," they add.

Julien Desmaretz, Suez Environnement would need to buy at least 650 million euros in assets, enterprise value, to achieve its objectives in 2012.

"Better prepared"

The group may also consider to increase its efforts in saving a lever that allowed him to limit the damage after the crisis of late 2008, while the slowdown in activity in its industrial and commercial customers affected volumes and its margins.

But having already held in February the objectives of its savings program for 2010-2012, which it expects a net gain of RBE 300 million in cumulative over three years, some analysts estimate that Suez Environnement has now limited room for maneuver.

"Given the bad experience of late 2008, management is probably better prepared for a new fall of the economy," notes, however, Yohann Terry.

In terms of dividend, the company said in February that it was an annual increase of about 5% for the years 2011 to 2013, a policy that the economy could again challenge.

"If the growth in consumption expenditure of municipalities, industrial production and commodity prices were to decline, the purpose of dividend growth would probably be revised down due to the impact on EPS and therefore the payout "said Yohann Terry.

Some analysts believe however that the group will continue to better withstand the stock market as Veolia, which has abandoned its goals this summer and in December will detail restructuring measures designed to make it more profitable.

Since the beginning of the year, the action Suez Environnement has lost 25.8% and Veolia has plunged 47%, while the CAC 40 fell by 15.11%.

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.

A new week promises to be tense on Wall Street, where investors are worried about a possible erosion of corporate earnings against the backdrop of the debt crisis in Europe and slowing Chinese economy.

The U.S. stock markets fell more than 2% Friday, signing the third quarter of their worst quarterly performance in three years, and some fear that the benefits of big names backed out because the rating is supported by foreign demand.

Past two years, export sales have averaged 30% of the turnover of listed companies in the S & P 500, allowing the results of many of them to exceed the expectations of analysts.

"If the euro falls, it will have a huge negative impact on companies like McDonald's," Judge Todd Schoenberger, LandColt of Trading.

"I do not expect quarterly results very fast", he adds. The ball must begin quarterly publication October 11 with Alcoa.

In addition, many U.S. multinationals have benefited in recent months the relative weakness of the dollar to support exports.But the euro shows a quarterly decline of more than 7% against the greenback, depriving companies of the damper.

Last major undertaking as to have lowered its profit forecast, Ingersoll-Rand fell by over 12% on Wall Street Friday after the announcement.

Of surprises anyway?

While the S & P 500 fell 14.3% in the third quarter, 1,700 billion in value gone up in smoke, a period of disappointing results could accentuate this downtrend, analysts said.

Most of them have lowered their expectations of results.According to Thomson Reuters data, earnings for the third quarter are expected up 13.3% over the same period of 2010, against an expected increase to 17% in early July.

In this context, investors will closely monitor the economic indicators to try to learn more about the state of U.S. growth.

The employment figures, released Friday, will be eagerly awaited, as well as the ISM index of purchasing managers in manufacturing (Monday) and services (Wednesday).

Still, some strategists believe to possible surprises on the forehead of the results, as Natalie Trunow, Calvert Investment Management.

"U.S. multinationals do not necessarily derive all their additional benefits (European market), and China, the statistics point to a slowdown but not a hard landing," said she.

Others point out that the drastic austerity measures that large firms have emerged after the 2008 financial crisis will maintain their accounts afloat.

"From our perspective, U.S. companies have learned to make a profit in this context (difficult)," wants to believe Hank Smith, chief investment officer at Haverford Trust.

The stock markets in the euro area settle in the green Thursday at midday, driven by financial stocks boosted by a voting majority in the margin of the German Parliament the reform of financial stability in Europe.

However, progress is limited. If the ratification of strengthening the powers of EFSF (European Financial Stability Fund) is acquired in Germany, this vote does not dispel the differences that oppose European leaders on how to deal effectively with the debt crisis in the euro area, report professionals.

Around 12:20, the CAC 40 index, which made the yo-yo in early trading, rises above 3000 points.The index gained 0.84% ​​to 3020.70 points and 3033.38 and 2974.98 changes between.

The euro also benefits the vote in the Bundestag and is trading around 1.3642 dollars against 1.3536 late Wednesday.

In Paris, BNP Paribas (6.27%), Societe Generale (4.67%) and Credit Agricole (3.75%) are leading the CAC 40 increases as the Stoxx Banks (+ 1.92%) is the leading sector gains in Europe.

L'Oreal (-1.48%) shows the largest drop in the Paris index, weighed down by the statements of Reuters Clarins boss who said he is worried about the economy in Europe this year and next year .

"These comments (Clarins) are negative for L'Oreal, which makes 40% of its sales in Europe," said one trader.

Exchanges of Frankfurt and Milan won respectively 0.57% and 1.28%.EuroStoxx 50 index of the core values ​​of the euro area is 0.96%. Outside the eurozone, London yields 0.31%

"We continue to believe that the news of recent days are not particularly encouraging. We are seeing some convergence between the political leaders of the EMU (Economic and Monetary Union)," say the strategists rate of Societe Generale in their daily note .

The performance of the German government bond (Bund) is relaxed to 10 years by 1.0 basis points to 1.97%.

Ipsen, whose sales rose 5.3% in the first half, said Tuesday it had raised its sales forecast for 2011 in favor of a less pronounced decline than expected sales in general practice.

The pharmaceutical company said in a statement that it now expects a decline in sales in general practice between 3% and 5%, against an initial forecast of down 8% to 10%.

Ipsen said target and a recurring operating income adjusted from 190 to 200 million euros for the year.

For the first six months of the year, its recurring operating income stood at 143.9 million euros, up 27.1%, while its consolidated profit rose by 21.4% over the period to 91 , 7 million.

Ipsen also announced it has appointed Susheel Surpal Columbia, a former CFO of Sodexo, the position of executive vice president of pharmaceutical company, in charge of finance and administrative affairs.

In their research note, analysts office analysis Potzamparc have described the interim results of "publication quality that could give color to the title."

"However, there are still key issues to be addressed before proceeding further on the sale of general medicine in France and the future of the production site of Evreux," they said.

Earlier in the morning, Ipsen and Inspiration Biopharmaceuticals announced in a separate statement to have strengthened their partnership in the treatment of hemophilia with the creation of a commercial structure.

"Ipsen and Inspiration will establish and train a sales team highly specialized to become the exclusive network for the marketing of drugs Inspiration brand in Europe," indicate the two groups.

"The sales organization will take the form of a Business Unit Hemophilia backed by the trade organization's current Ipsen," they continue.

VAT reduction, reform of corporate tax … measures that the government hopes will be adopted next week should bring 4.9 billion euros to the state. Spanish Prime Minister Jose Luis Rodriguez Zapatero at a news conference late in July 2011.

Reduction in VAT on the purchase of new housing, reform of corporate taxes and mandatory use of generic drugs, these are the main weapons of the Spanish government, which adopted its new plan Friday to combat the crisis. "The government has approved a reduction in VAT from 8% to 4% for the purchase of a new home," said Jose Blanco, his spokesman, adding that it was an "exceptional measure and temporarily extended until 31 December. "Reform of the corporate tax should bring in 2.5 billion euros and the spread of generics 2.4 billion euros.

The plan, which the government hopes will be adopted next week, should bring 4.9 billion euros in state coffers, while the country is at the heart of a new financial turmoil that threatens the entire area euro. Jose Blanco confirmed that the government would urgently request the convening of Parliament to ensure that "measures be adopted so quickly."

Other measures for future employment

The economy minister, Elena Salgado, said the plan aimed to "support growth" and "generating activity and the recovery of the construction industry", at a press conference at the end Council of Ministers.The reduction in VAT should in particular help to sell many unsold new homes since the bursting of the housing bubble in 2008. The meltdown has precipitated the country into a severe economic crisis, with record unemployment in industrialized countries, with 20.89% in the second quarter.

Elena Salgado said the government would announce measures "to boost employment" at the Second Extraordinary Council of Ministers scheduled for August 26. These ads take place in a context of new financial market meltdown. The Madrid Stock Exchange is taken since late July in a new spiral and fell again Friday to levels not seen since the debt crisis of spring 2010.

Wall Street opened slightly higher Wednesday, taking advantage of the good results announced by the retailer Target, a barometer of U.S. consumption.

Ten minutes after the opening, the Dow Jones took 0.5%, or 56.50 points at 11,462.43, while the S & P 500 gained 0.78% or 9.30 points at 1202.06.

The Nasdaq claiming responsibility for its 0.4% (10.07 points) to 2533.52.

The attention of the U.S. market seems to have diverted from the debt crisis in the euro area, and rising raw materials or of the euro against the dollar appears to reflect an appetite for risk returned.

The release of producer prices for July at 12:30 GMT, had no significant effect on the odds.

Two hours before the opening of Wall Street, the Target Group has reported a quarterly profit up, procurement through the school year has boosted sales in the end.

The title took 5.25% to 51.96 dollars.

Still in the distribution chain Staples office supplies jumped 5.41% to 14.99 dollars after reporting better than expected results and raised its profit forecast.

Dell, however, weighs in on the Nasdaq plunging 6.45% to 14.78 dollars after the disappointing results announced after the close Tuesday.

Wall Street opened lower Monday as investors exercise caution after turning on the conditions on the disbursement of aid to Greece and the warning by Moody's of a possible lowering of the sovereign rating of Italy.

A few minutes after the start of trading, the Dow Jones yielded 0.17% (-20.43 points) to 11,983.93 points, the Standard & Poor's 500 index 0.17% to 1269.29 points and the Nasdaq Composite 0 , 15% to 2612.45 points.

The prevailing uncertainty about the evolution of the issue of Greek debt penalizes financial stocks. JPMorgan Chase flexed to 1.47% and Bank of America gave up 1.3%.

Suntech Power fell by his side of 4.19%.The world's largest manufacturer of solar cells said Monday it plans to produce more semiconductor wafers in-house for up to 50% of its total production capacity of cells.

Nicolas Sarkozy and Angela Merkel on Friday called for a quick solution to the crisis of the Greek debt. The participation of private creditors will be made only on a voluntary basis, said the two leaders after a meeting in Berlin. French President Nicolas Sarkozy and German Chancellor Angela Merkel wants a "quick fix" to the debt crisis of the Greek, the two leaders said after talks in Berlin Friday, June 17, 2011.

German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed Friday to seek a quick solution to help Greece to meet its debt with a voluntary participation of private creditors. "We need a solution quickly," Merkel said, while refusing to give a precise date, like Mr. Sarkozy at a joint press conference in Berlin.

"We want the private sector is involved on a voluntary basis (the bailout of Greece). I want to emphasize this, there is no legal basis for mandatory participation," she said. France, like the European Central Bank (ECB) insisted for weeks on the voluntary participation of private creditors – banks, insurers and investment funds – not to frighten the markets. Germany was much less clear on this point.