Retail sales are backed up against all odds by 0.3% in Germany in July, posting a second consecutive month of decline in monthly, announced Tuesday the Federal Office of Statistics.
Over a year, retail sales rose 0.8%.
Analysts polled by Reuters had expected a monthly increase of 0.5% and an increase of 1.4% over one year.
The Japanese consumer prices fell in July for the 17th consecutive month on an annual basis, a sign that deflation remains entrenched in the archipelago and Nippon will be difficult to fight for the government.
Tokyo seeks the method that will curb the rising yen, which this week hit a high of 15 years against the dollar and a high of nine against the euro, threatening to bring down a recovery that based on exports.
But the strong yen is likely to complicate efforts by the Japanese government to fight deflation.
Japanese Prime Minister, Naoto Kan, said Friday that reporters would act when necessary on the issue of the strong yen and he would meet the Governor of the Bank of Japan Masaaki Shirakawa on his return from a trip to the abroad.
Naoto Kan also said that excessive currency fluctuations could threaten financial stability and hoped that the BoJ would take the appropriate measures in terms of monetary policy.
Decisions will be made August 31 on these issues.
The Interior Ministry announced Friday that consumer prices, which include fuel costs but not those of fresh products, fell 1.1% yoy in July according to the median forecast of the market. In June, they were down 1%.
"TWO OR THREE YEARS OF DEFLATION"
"Given the appreciation of the yen, exports will plunge and temporarily slow the economic recovery in Japan.Japan will remain in deflation for the next two or three years, "said Takeshi Minami, chief economist at Norinchukin Research Institue.
Investors are betting on an intervention by the Bank of Japan to ease monetary policy in the country.
"The BoJ could expand its refinancing tools next month, but the effect on interest rates in the short term will be limited.She needs to take bolder decisions to fight deflation and the rising yen, as increasing outright purchases of government bonds, although it is very unlikely to happen, "said Takeshi Minami.
Two other indicators released Friday offers a contrasting vision of the Japanese recovery.
The unemployment rate adjusted for seasonal variations fell 5.2% in July against 5.3% in June while the median forecast was 5.3%, according to figures from the Ministry of Internal Affairs.
Household spending has in turn increased by 1.1% in July over a year in real terms, less than the market forecast of an increase of 1.3%.
For a chart comparing the evolution of consumer prices in Japan, the United States and the euro area, click on link.reuters.com/pum57n
News Corp. has been beneficial in the fourth fiscal quarter thanks to strong performance of its cable networks and advertising revenue growth of its newspapers.
The media company posted a profit of 875 million, or 33 cents per share for the quarter ended June 30, against a loss of 203 million (eight cents per share) a year ago when News Corp recorded a asset impairment charge.
Turnover rose 5% to 8.11 billion dollars. The Thomson Reuters consensus I / B / E / S gave a turnover of 8.05 billion.
Action News Corp. gained 2.9% to 14.25 dollars after the close of Wall Street, in response to these results.It grew by 12% since the beginning of the year, while the S & P movies and entertainment took 8% in the same time.
Rebound in advertising revenue and lower costs led to a growth in operating income by 20% in the press in the U.S. and internationally. The operating profit of its cable division has increased 31%.
In contrast, there was decline results from the satellite television and commercial services, and loss of the digital divide, including social network MySpace.
In attempting to seize the biotech Genzyme, Sanofi-Aventis hopes to enter a segment long ignored by major pharmaceutical companies, one of rare diseases.
It would appear that the giants of the industry think that investing in this field can be a good way to increase margins, complete the range of products and at least partially offset the impact of competition from generic.
Pfizer and GlaxoSmithKline have already tried the adventure but the offer from Sanofi on Genzyme – which could turn around 14.3 billion euros – would be by far the most advanced.
Genzyme is the world leader in treatments for rare diseases.He realized in 2009 a turnover of around 4.5 billion dollars from drug dealing rare inherited disorders such as Gaucher and Fabry disease.
"Genzyme has demonstrated to all that the market for rare diseases can be quite profitable," said Gary Pisano, a professor at Harvard Business School and a specialist in biotechnology.
These drugs for rare diseases, so-called "orphan" can reach astronomical prices and yet are rarely rejected by insurance companies.Cerezyme, blockbuster treating Gaucher disease developed by Genzyme, is an annual treatment cost of over $ 200,000.
This is one of the drugs most expensive in the world and represented the last year a turnover of 1.2 billion dollars.
NEW PERSPECTIVES
They are new opportunities opening up for big pharmaceutical companies that are themselves, most often, little to offer in terms of experimental medicines.
"The era of 'blockbuster' seems gone," says Kevin Gorman (Putnam Associates). "In rare diseases needs to look far the greatest."
Gaucher disease and Fabry disease are characterized by an enzyme deficiency that can cause irreparable damage or even lethal to the organs.Treating such diseases is not accessible to all laboratories and even the big pharmaceutical companies are not equipped to start from scratch in this field.
Design in this field of rare diseases, clinical trials, control of complex manufacturing processes and finally market drugs in highly targeted markets, this requires a special skill mastery that Genzyme to perfection.
Yet, one case of infection occurred at the site last year Genzyme Allston Landing in Boston, led to a shortage of two key drugs and led to a sharp drop in results and a diving action.
Sanofi hopes to capitalize on woes Genzyme to buy cheap.It offers 69 dollars per share, according to sources familiar with the matter, much less than the $ 80 where work is changing before disorders occur manufacturing end of 2008.
According to sources, it is unlikely that Genzyme accepts less than 80 dollars per share. This can be explained by the fact that Genzyme is an asset as rare as the diseases it treats.
It is not likely to be subject to generic competition soon.It has also more than 20 years of experience in the relationship with patient groups in the organization of clinical trials and reimbursement management and regulatory issues.
NOT EASY TO COPY
"The reasons why large groups are eyeing this segment reduced threat of generic products, products that can be expanded to other areas and prices," said Dominic Valder, an analyst at Evolution Securities.
Traditionally, the big pharmaceutical companies focus on drugs prescribed by GPs in a large population of patients with chronic conditions like diabetes, depression, ulcers or cholesterol is too high.
These medicines are made from molecules that can easily replicate génériquiers.
The biotech drugs are on the contrary from protein complex. They are prescribed by specialists for patients in small numbers. They are not easy to copy.
Some heavyweights pharmacy try their luck but so timidly.For Patrick Vallance, head of research at Glaxo, the strategy aims to improve the returns to research and development focusing on areas where the probability of success are greatest.
Glaxo has taken a stake in the Japanese and JCR Pharmaceuticals has entered into an alliance with privately held Prosensa, leading to the launch of a Phase III clinical trial in the second half and bearing on Duchenne muscular dystrophy.
Pfizer has acquired worldwide rights to an experimental treatment for Gaucher disease developed by Protalix BioTherapeutics, which if approved, would compete with Genzyme's Cerezyme.
The U.S. stock markets opened on a negative note Friday as investors show some nervousness before the publication of the results of resistance testing taxed at 91 European banks.
A few minutes after the start of trading, the Dow Jones yielded 0.28% to 10,293.16 points, the Standard & Poor's 500 index 0.44% to 1088.89 points and the Nasdaq Composite 0.51% to 2234.45 points.
Losses are limited by satisfactory business results and publication of European statistics reassuring, especially in Great Britain and Germany.
Microsoft and Ford have published better than expected, the reaction of titles respectively 0.23% and 3.31%.
In contrast, the Citigroup opens down 1.71% to 4.02 dollars, the U.S. Treasury prepares to sell 1.5 billion shares to reduce state participation in the U.S. bank, gained during the rescue group.
Electrolux reported an operating profit below expectations for the second quarter and reaffirmed its forecast of a rise in demand this year in its main markets.
Operating income was 1.5 billion kronor (157 million) excluding exceptional items, against one billion kroner in the second quarter of 2009.The 17 banks and brokerages surveyed by Reuters had expected a net profit of 1.6 billion kronor for the period Apr-Jun 2010.
At 7:36 GMT, yielded 5.0% to 158.70 kronor on the Stockholm Stock Exchange.
"The demand for appliances on the group's main markets should be growing during 2010," the Swedish group in a statement.
The second largest manufacturer of household appliances has been forced to sharply reduce its costs to cope with the slowdown in consumption last year but said its main markets had continued to recover in the second quarter.
Electrolux said the North American market had risen for the third consecutive quarter after 13 quarters of contraction.
"At the industry level, the supply of aircraft destined for the United States in the second quarter would have increased approximately 10%," the group said.
"The entire European market has stabilized during the quarter, with major markets such as Germany, France and Sweden showing positive trends," he added, while noting that southern markets Europe had suffered a sharp slowdown over the period.
'The demand in eastern Europe has increased somewhat, further stated Electrolux.
The U.S. stocks have ended without major trend Wednesday as investors wondering about the tone set by the Fed in the minutes of the last meeting of its Monetary Policy Committee.
The Federal Reserve said that its members should be prepared to adopt new measures to support the economy if the environment deteriorates.
See Fed talk about slowing down and hear that she may have to provide more support and cash undoubtedly shaken the markets, "said Bruce Zaro, chief investment strategist for Delta Global Advisors.
The Dow Jones, which includes the thirty most important values of American industry, was up 0.04% to 10.366.72 points, the S & P 500 index fund managers, dropped 0.02% to 1095.17 points.
The Nasdaq's side showed signs of resistance, clinching 0.35% to 2224.84 points, thanks to technology, supported by better than expected results released Tuesday by Intel. The title of the Informatics Group closed up 1.67% to 21.36 dollars.
Investors have also learned the consequences of the publication of statistics showing that business inventories had risen less sharply than expected in the United States in May while sales fell for the first time since March 2009.
The S & P showing variations of values related to consumption has dropped 0.54%.Abercrombie & Fitch has lost 0.83% to 35.93 dollars while JCPenney yielded 0.86% to 22.99 dollars.
The bank has also been the subject of intense clearances pending the results of resistance testing is suffered by 91 European banks.
The KBW index of sectoral sector fell 1.61%.
A reversal of the trend, GlaxoSmithKline closed up 1.76% to 36.35 dollars after the positive vote from the Food and Drug Administration on a diabetic, developed by the laboratory.
The CEO of BP's Tony Hayward met with officials of the Abu Dhabi Investment Authority (Adia), one of the largest SWFs in the world, said an official source of United Arab Emirates (UAE).
A UAE source told Reuters on Tuesday that BP had approached sovereign wealth funds to find a strategic partner to preserve it from any takeover attempt as it is mobilized by an oil spill that has caused the Gulf of Mexico.
Tony Hayward has made various "options" at this meeting, added the official source, without being more explicit.
Adia was not immediately available for comment.
A Saudi financial daily reported Wednesday that Saudi investors wishing to enter the capital of BP at 10% to 15%.
A delegation of these investors will travel to London to begin a dialogue with BP, said al-Eqtisadiyah, the main financial newspaper in the kingdom, without citing sources.
Action BP has lost more than half its value since the oil spill that began last April.
The British oil giant said it hoped to raise 10 billion this year to finance a fund for cleaning $ 20 billion that had opened under pressure from Washington.
Action BP earns 4.17% to 360 pence in morning.
The French consumer confidence deteriorated in June for the fifth consecutive month, reflecting their concerns about public finances and pensions, according to the monthly survey published by INSEE.
The summary indicator of households' opinion on the economic situation fell to -39 from a point at its lowest since May 2009.
It reached down nine points since January and the index is 21 points below its average since the inception of the survey in 1987.
"It can not be merely a melancholy passenger since the index is in sharp decline since the beginning of the year, indicating the growing concern of the French on the country's economic situation" said Alexander Law, an economist at the institute Xerfi.
The survey was conducted among about 2,000 households from May 29 to June 17 in the midst of preparing the pension reform and government announcements on fiscal consolidation but before the cons-performance of the Blue world.
Households have an opinion on virtually stable financial situation, past and future and the opportunity to make major purchases.
Renewed worries ON UNEMPLOYMENT
But they are much more pessimistic about the evolution of living standards and report renewed concerns about unemployment.
The balance of opinion regarding the future standard of living continues to decline in June (2 points from May and 19 points since January) and households think again that the standard of living past has declined (-3 points Compared with May after four months of stability).
While the number of unemployed has risen again in France in May, households are more likely to anticipate an increase in unemployment (5 points).
After falling from 8 to 89 between January 2008 and June 2009, the balance of opinion regarding the outlook for unemployment is down and has stayed at around 65 points, well above the average long period ( 33 points), INSEE said.
In contrast, households believe that past inflation has remained stable and they do not expect higher prices.
"Undoubtedly, the French consumer is in great danger," warned Alexander Law.
"Gradually, all its drivers are switched to red: the scrappage in the car was dismantled, inflation is rising and unemployment has further increased.Turning point of rigor that was initiated in the Hexagon (as elsewhere in Europe) not help matters in the case.
For Alexander Law, "we must draw a cross in 2010 in a contribution worthy of the name of consumption growth, so that this component has assured itself between 50% and 100% of the economic expansion of France for nearly a decade.
"Without additional support, GDP growth hardly reaches 1% this year, so it should be at least double that for hope to create sustainable jobs," said Alexander Law.
Bourbon has unveiled a new plan for the period 2011-2015 which includes the sale of its fleet of 16 bulk carriers and other non-core assets for a total of 500 million Euros.
The specialist maritime services to the offshore oil announced in a press release that it has signed an agreement to sell its Bulk with the American Genco Shipping & Trading Ltd for 545 million dollars (440 million euros).
As part of its strategic plan, Bourbon also wishes to invest two billion dollars (1.62 billion euros) in the construction of 80 supply vessels and 64 vessels transporting personnel to operate in 2015 a fleet 600 vessels dedicated logistics services in the continental offshore and deep offshore.
The offshore fleet amounted to 357 ships by end of 2009 and 99 are now in command in the context of its previous strategic plan.
"The bulk current activity will continue to a lesser extent and without the contribution of a fleet that is owned," said the CEO of Bourbon, Jacques de Chateauvieux, during a conference call."This is not disturbed our ability to meet the expectations of our customers."
Jacques de Chateauvieux has also indicated that the sugar activities of Bourbon in Vietnam, among other things, would be sold in addition to bulk carriers.
Apart from sales, financing the new investment program will be provided by changing the payment terms of vessels during construction, 75% of the price now being paid on delivery, as well as a 12-year loan of 400 million dollars granted by the China Exim Bank.
CASH FLOWS FROM POSITIVE in 2013
"The combined effect of generating cash flow from operations, disposal of assets in 2010 and the new payment policy should allow vessels a ratio of debt to equity of less than 0.5 and a ratio net debt / EBITDA of less than 2 by 2015.Bourbon and generate positive cash flow from 2013 onwards, "added the company.
Bourbon also said that its dividend policy would be to distribute approximately 40% of its consolidated net income.
After an average growth of 28% of the activity of its offshore division between 2002 and 2009, the new plan Bourbon displays a target of 17% average annual growth between 2011 and 2015.
The company is also concentrating on increasing the availability rate of the fleet with a goal of 95% against 92% today, and a decline in the index of its operational costs by 4% rate constant 2015.
Bourbon is also a ratio for 2015 gross operating profit (EBITDA) on revenues of 45% for offshore and an EBITDA ratio on capital employed of 20%.
It plans to recruit 5,000 people who join its 7,000 employees.
