Business & Financial News

The new CEO does not rule Eiffage sale or closure of loss-making subsidiaries to consolidate the early resumption of the performance of the construction group observed in the first half.

Peter Berger, the designated successor of the president and founder of the number five European construction and concessions Jean-François Roverato, also announced for the energy division Forclum a savings plan to reduce by 3 to 4% overhead by 2013-2014.

"We will, on public works sectors, particularly energy, continue and even intensify our efforts and recovery plans so that the performances, which are stabilized, can go up significantly," said Peter Berger in a meeting with analysts.

"I do not exclude in particular on non-strategic subsidiaries deficit repeatedly stops or transfers," he added.

Eiffage, whose margins were negatively impacted in recent years by economic conditions and difficulties in the execution of certain contracts, including hospitals, also assured that he would in future be more selective in order intake .

"We anticipate a marked increase in free cash flow, the best three years, and therefore reduced our net debt due to a combination of debt reduction highways that will continue and the sale of certain assets that are PPP mature, "added Peter Berger.

RESUMPTION OF ACTIVITY CONFIRMED

Eiffage end of June showed a net debt to total 14.42 billion euros, 13.6 billion of debt lodged in the concessions.Autoroutes Paris Rhin Rhône conducted in the first half to three bond issues, the first step in the process of refinancing debt in February 2006 when privatisaton of French motorways.

"We will begin September 13 and 12 talks with banks to begin the process of refinancing Eiffarie and APRR, our goal is to finish the first quarter of 2012, that is to say again in advance before the final deadline is early 2013, "continued Pierre Berger.

Eiffage confirmed its objective of a return to growth in its turnover this year in view of a first half marked by an upturn after two consecutive years of contraction over the same period.

The group identified the first six months of the year an EBIT of 451 million euros, up 9.5% thanks to strong margin growth in the concessions. Its order book grew by 5% year on year.

In contrast, bond issues made by APRR in the first half came to adding to the financial burden of the company, bringing to 43 million euros against 70 million a year earlier net income, group share, a drop of 38 6%.

Prior to publication, the action Eiffage closed up sharply (7.48% to 33.90 euros), giving a market capitalization of around three billion euros. Since the beginning of the year, the title has sold about 4%, after declining 16% over the whole of 2010.

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.

European shares ended down Thursday after three sessions in a row to rebound in the wake of Wall Street, where the departure of Executive Steve Jobs of Apple weighs on the coast.

The CAC 40 index finished down 0.65% at 3,119 points, after gaining 1.6% up in volumes that have accelerated shortly after the opening of Wall Street to finish at a level of 102% of their average last three months.

Other European stock markets, London has lost 1.44% and 0.25% Milan. Victims of several rumors, including one referring to a general ban on short sales in Germany denied by Berlin, Frankfurt fell 1.71%.The pan-European Euro Stoxx 50 index yielded 0.98% after opening up 0.6%.

On Wall Street, the S & P 500, Dow Jones and Nasdaq lost 1.1 to 1.2% at 6:17 p.m..

"The market plays to be afraid before Bernanke's speech tomorrow.The question is whether the Fed chairman will have the means to announce something solid while the United States are in a liquidity trap, "said Yves Marc, seller actions at Global Equities.

ADJUSTMENT SHOULD CONTINUE TO BACK

As for values, the bank (0.58%), the only growing sector, have benefited from the investment of $ 5 billion (3.5 billion) of Berkshire Hathaway in Bank of America.

This investment could be the harbinger of a more massive return of investors to the market this autumn, says Fabrice Cousté, CEO of CMC Markets France.

In Paris, Crédit Agricole jumped 4.81%, moving up and the top 40 increases in the ACC after publishing quarterly results better than expected, loads of Greece finally being advanced by less important.

"The adjustment of the markets continues and it seems likely that this adjustment continues in the fall," warned in a note Philippe Mimran, head of securities at managements UFG-LFP.

"The bond markets have clearly voted for a depressed economy, with real rates marginally positive German and American frankly negative," he adds.

The downturn in equity markets was also reflected in the yields of bonds rated.The performance of the 10-year German Bund dropped below the 2.2% to 2.179% against 2.188% yesterday.

That of the French OAT with the same maturity has returned around 2.86% after flirting with 2.95% in session, following the announcement of measures to improve public finances by the Prime Minister, François Fillon.

Oil prices have closed up Monday, while Brent has however declined, while the progress of the rebels Libyan suggests a possible resumption of oil exports of the country.

On the Nymex, the contract to September U.S. crude (WTI), which expired at the end of the session, ended with a gain of $ 1.86, or 2.26% to 84.12 dollars a barrel.Brent has in turn sold 26 cents, or 0.24% to 108.36 dollars.

Italy's Eni, which was the main foreign producer of oil in Libya, is back in the country, while the entry of rebels in Tripoli Libyan suggests a possible resumption of exports of oil.

Tanks and snipers in the Libyan Army struggled Monday morning to withstand the assaults of the rebels in the capital, where thousands of opponents of Gaddafi celebrated the imminent end of a free reign began in 1969.

Before the outbreak of the uprising in Libya, the country, a member of OPEC produced about 1.6 million barrels per day (bpd), nearly 2% of world production.

The titles of French Total, OMV of Austria and Eni have closed up 2.25%, 5.14% and 6.33%, the market hoping for a return to the situation prior to the insurgency.

The Stoxx Europe 600 index of oil and gas sector was up 1.28% on his side.

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.

The European regulator of financial markets (ESMA) announced Thursday the ban on short selling in Belgium, France, Italy and Spain from Friday, August 12.

The Esma has also said it will prove tough on breaches of proper functioning of the market and will strongly encourage States to prevent such behavior.

Hitachi and Mitsubishi Heavy Industries has started negotiations for a merger, it was learned Thursday from three sources familiar with the discussions.

The negotiations, which have not been officially confirmed despite press leaks, cover a reconciliation of the two industrial activities in the field of energy generation and development of power systems "intelligent" ("smart grids") , the sources said.

Mergers are often seen in Japan as a last resort for firms in difficulty, but analysts point out that a strategic combination would enable Hitachi and Mitsubishi to achieve economies of scale to overcome the strong yen and win competitiveness.

"If the merger is confirmed, it would be very positive news for the Japanese industry, because companies would not get competition in the conquest of foreign capital projects, which would increase their chances while supporting the economy countries, "said Kiyoshi Noda, a fund manager at MU Investments.

Hitachi, the leading Japanese electronics industry but also a player in nuclear energy, posted its first net profit in five years on the year ended in March, after losing about $ 14.3 billion (9 , 99 billion euros) over the past ten years.

For its part, Mitsubishi Heavy Industries, a supplier of power plants and aerospace equipment from Boeing including Areva and continues to incur losses on its shipbuilding activities and aviation.

A merger of two industrial conglomerates would create the second largest player in the heavy equipment behind General Electric, with a turnover of about $ 150 billion.

Thursday at the Tokyo Stock Exchange, Hitachi ended up 1.73%, while Mitsubishi Heavy jumped 3.44%.

This new warning shot has been extensively discussed at Wednesday's meeting between President Barack Obama and congressional leaders to try to find a solution. But despite four consecutive trading days, the positions of Democrats and Republicans still seemed difficult to reconcile.

The Republican majority in the House of Representatives refused to raise the ceiling of the federal debt without drastic cuts in spending to deal with an unprecedented deficit. Barack Obama wants to support these measures of higher taxes for the wealthy. What his opponents refuse.

Exchanges seem increasingly tense even if the minutes are different. According to a Republican consultant, speaking on condition of anonymity, M.Obama "has warmed up" and insisted that a comprehensive agreement is reached, after the head of the Republican majority in the House, Eric Cantor was proposed to raise the debt ceiling several times. A counselor Democrat, while acknowledging that Mr. Obama, impatient face as we approach the August 2, said "it's enough," denied that the president abruptly left the room.

The same source, Barack Obama warned his Republican opponents that he would veto a deal that would raise the debt ceiling in the short term. Negotiations should resume Thursday afternoon.

Earlier Wednesday, the president of the U.S. central bank (Fed), Ben Bernanke, warned that failure to pay would create "huge problems" for the country and a "major crisis" in the world."It requires both raising the debt ceiling that would allow us to avoid a default" payment, but "as we take serious steps to change the trajectory of our unsustainable fiscal situation" in the long term, said Bernanke before the Committee on Financial Services of the House. "I think these two objectives can be achieved."

G20 countries have adopted in Paris on Thursday a plan of action to fight against the high volatility of prices of agricultural products, announced the French minister of Agriculture Bruno Le Maire.

Meeting in Paris, their agriculture ministers agreed to "concrete, specific and ambitious" on topics such as the increase in world agricultural production, market transparency, or physical management of food crises, he said at a press conference.

They also called for stronger regulation of derivatives and futures markets in agricultural products, which is under review by the finance ministers of the G20, using tools like "setting position limits ex ante, "he said Bruno Le Maire

Carrefour said on Thursday the appointment of Christmas Prioux to head its operations in France and Thomas Hübner Martin to head its operations in Europe, indicating that the results of the first semester in France were below our expectations.

The distributor said in a statement that its chief executive Lars Olofsson "continue to oversee operations of Carrefour in France."

Christmas Prioux (51 years), who has spent his entire career at Carrefour, replaces with immediate effect, James McCann, who was fired by the group in May for performances deemed insufficient.

After leading hypermarkets in France, Christmas Prioux was notably responsible for Carrefour in Colombia, Spain and the region of Southeast Asia.He had just been appointed executive director in May for Europe.

Carrefour had justified the eviction of the beginning of May by James McCann disappointing performance in this key country which accounts for more than 40% of its turnover but when it loses market share.

Thomas Hübner Martin, 53, Swiss citizen, meanwhile replaces Vicente Prius, party in the Canadian Loblaw. He made a career in the food industry and distribution, including at Metro Cash & Carry International.