Business News & Financial News

The trade deficit of France widened to 4.18 billion euros after 3.72 billion in July (revised) the previous month, according to data CVS / CJO published Wednesday by Customs.

Eight economists polled by Reuters had expected on average a deficit of 4.0 billion euros, with estimates ranging from -3.0 to -4500000000.

The remainder of June was revised to 3.718 billion from the $ 3.796 billion announced in the first estimate, one month ago.

In the first seven months of the year, the cumulative deficit CVS / CJO trade of France stood at 28.454 billion against 24.397 billion for the corresponding period of 2009.

Exports FOB data CVS / CJO emerged to 33.678 billion euros against 33.037 billion in June

The imports amounted to 37.858 billion 36.755 billion against the previous month.

In July, France has sold its 30 Airbus reported 2.002 million euros against 26 aircraft to 1,719,000 euros in June

Germany has emerged on the same month of July in a trade surplus of 12.7 billion euros after 12.4 billion the previous month, according to data released earlier in the morning by the Federal Office of Statistics.

In contrast, German exports have registered an unexpected fall in July, the first in three months, falling 1.5% in seasonally adjusted data from the previous month.

Safran will decide in the coming days to make a bid on Zodiac and, where appropriate, offer a significant premium to shareholders of the aerospace supplier, said Monday the Tribune, citing inside sources.

No hostile bid will be made, the newspaper said, while the offensive Saffron comes a month after an initial rejection of the leaders of the Zodiac.

"Considering that we have more than one in two chance, we'll go, if it has less than one in two chance, wait. This folder will always feel in six months a year," told the newspaper an internal source of saffron.

A spokesman declined to comment Safran information immediately.A spokesman declined to comment Zodiac.

Around 11:25, the action was progressing Zodiac 13.01% to 49 euros on the Paris Stock Exchange after reaching a high of 53.4 euros earlier in the morning.At the same time, Saffron retreated 1.66% to 19.01 euros.

Saffron is able to offer a premium of 30-40% compared to the current course, says the Tribune, the equivalent of the highest historic title in 2007, to 58 euros.

Safran is ready to bring the family shareholders of Zodiac in its capital, the newspaper said, which would dilute the share of the state, now a shareholder group to 30%.

Citing "multiple sources," the newspaper wrote that the family Domange shareholder Zodiac up 9.28%, is not ready to sell, unlike the Peugeot family (5% of capital) who would be willing to cede Units.

Safran will do this for an offer to allow shareholders to retain the family tax benefit they have obtained by signing a pact Dutreil "six years ago and through which they receive a tax exemption on capital of 75%.

In prior postings to the families, Safran said his project is an acquisition of Zodiac, but that it could be achieved by exchange of securities and merger in order to preserve the fiscal pact, The Tribune wrote.

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

DuPont publishes a quarterly profit nearly tripled thanks to a double digit growth in sales in its five main business segments.

The number three of the chemistry in the United States has achieved during April-June net profit of 1.17 billion (900 million euros), or $ 1.26 per share, against 417 million (41 cents / share) on the corresponding period last year.

Excluding items, earnings were $ 1.17 per share.

Financial analysts had expected earnings of 93 cents per share according to Thomson Reuters I / B / E / S.It was not clear immediately that this consensus is comparable to published results.

The quarterly revenue rose 25.6% to $ 8.62 billion against 8.27 billion expected by the market.

DuPont revised upwards its forecast range for the full year, saying it now expects earnings per share (EPS) of 2.90 to 3.05 dollars excluding special items, against 2.50 to 2.70 far.

The market consensus gives an annual EPS of 2.64 dollars.

The action DuPont, one of the 30 stocks in the Dow Jones gained 2.1% in pre-market transactions, to 39.80 dollars.

Wall Street could fall this week in a market upturn phase, but will require a new set of quarterly results convincing to feed the stock market rally that started in U.S. last weekend.

The markets have been digesting macroeconomic statistics found disappointing and pessimistic comments from Federal Reserve Chairman Ben Bernanke on the U.S. economy, but the announcement of strong quarterly results by companies suggest a brighter future.

But this week, others are expected quarterly publications such as the oil company Chevron, DuPont chemist or the aircraft manufacturer Boeing.Good news would reassure investors.

Investors have had to readjust their forecasts for the economy with the latest statistics that portend a slowdown in the pace of recovery.

These data have also created divisions in the markets about the possibility of a new recession.If the concerns of a return to "W" began to fade among investors, publications positive would result in rising markets.

FIGURES OF THE GROWTH EXPECTED

"All indicators continue to signal growth, simply we are not moving as quickly as when we came out of the recession, which is totally logical," said Michael O'Rourke, chief market strategist at BTIG LLC, adding that the downward phase of the contract is completed.

He considers in particular that the beginning of July should be the low point of annual contracts.

Analysts hope to cheer the quarterly results this week after figures better than expected and forecast annual improvements announced last week by industry groups.

But the economy remains crucial. The series of publications macroeconomic expected this week will also be particularly monitored to determine the strength of the U.S. economic recovery.

The Fed should publish its Beige Book Wednesday on the economic conditions, while the figures for new home sales will launch the week Monday.

On Tuesday, it is the Standard & Poor's / Case Schiller home prices and consumer confidence, which will be followed, before investors only look the next day on orders of durable goods.

But it was the day Friday with the first estimate of gross domestic product (GDP) U.S. second quarter to be expected this week.

The Franco-Dutch Unibail-Rodamco, faced with a lackluster economic environment, will make the cash to shareholders to try to offset the stagnation of its results.

The leading European commercial real estate offers and distribute 1.8 billion euros in cash to shareholders, or 20 euros per share in respect of a return of capital, "he said Wednesday in release.

This operation, which takes the form of a refund procedure premium contribution, roughly the amount of sales, net of acquisitions made since the merger in 2007 between Unibail and Rodamco, the company said.

Unibail-Rodamco has sold four billion euros of assets since the merger and purchased 2.4 billion euros.

The transaction will be subject to an extraordinary general meeting on September 8 for a payment on October 12 and will be funded by four billion euros in credit lines.

Meanwhile, the company said it benefited from renewed investor interest in quality real estate assets to accelerate asset sales and further focus on its biggest shopping malls.

In seven months, Unibail-Rodamco has sold 1.2 billion euros of assets, with an average premium of 9% compared to their appraised values.It plans to sell another 500 million by the end of the year and 2.5 billion by 2012, the Netherlands, but also in France, Spain and Scandinavia.

The land group aims to reduce the number of shopping centers from 95 to 60 by 2012.

NO IMPROVEMENT FOR HIGH

This strategy of refocusing the group on its greatest asset and most cost reflects the uncertainty about the future growth and household consumption.

"I see no reason for a big improvement in overall consumption, but our schools should do better," said Guillaume Poitrinal, CEO, a few journalists."I'm not optimistic about the economic situation in France, but our particular positioning can help us gain market share," he added.

Some analysts also see it as an uncertainty about the continued recovery in property prices.

"Having to pay a special dividend and accelerate disposals may mean that the company does not believe too much in pursuit of the rising property market," commented one of them, who would not be identified.

The company has not yet abandoned its development projects and plans to invest 1.5 billion euros by 2015 to modernize its existing facilities and 5.7 billion for new projects, of which 1.3 billion are actually incurred.He did not rule out further acquisitions.

After the transaction, Unibail will remain the land the least indebted in Europe with a debt ratio increased from 31% to 40%.

Standard & Poor's revised after the announcement, his outlook on the company, which went from stable to negative, while confirming her an "A" long term "A-1 'short-term, and Fitch, which replaced Moody's at the request of the group has assigned a grade "A" long-term debt IDR (issuer default rating).

RESULTS NO SURPRISE

For the first half of 2010, Unibail-Rodamco has published a recurring earnings per share of 4.70 euros, up 0.4% in the first half of 2009, with net rental income of 624 million, down 1 6% (+0.4% at constant perimeter).

Its net asset liquidation stood at 131.00 euros per share, up 2.2% from late 2009 its assets increased by one billion euros to 23.3 billion, ending a two- year decline in the value of its assets.

According to a consensus calculated by the editor of Reuters estimates from a dozen analysts, estimates ranged to 4.51 euros for recurring earnings per share and 130.06 euros for the net asset value (NAV ).

The property has confirmed its growth target of zero to 2% of its recurring earnings per share in 2010, including the impact of capital repayment, after rising 7.1% in 2009, mainly because of low indexation of rents.

The single European property to be included in the Eurostoxx 50, with a market capitalization of 12.5 billion euros, closed up 2.79% in the Paris Bourse to 140.100 euros before the publication of these figures.

Since the beginning of the year, the security loses 8.8%, after rising 44% in 2009.

Business start-ups have increased by 1.0% in June to sign up 43.2% over 12 months, according to figures released Tuesday by the INSEE.

In June, the INSEE counted 24,182 new businesses in seasonally adjusted data (+18.4%), a figure which rises to 50,508 by counting the self-entrepreneurs, the figures for the latter being in the raw data.

The lower number of new self-entrepreneurs in June was offset by higher self-creations out contractors, "said INSEE in its statement.

In May, the number of new non-auto business had increased by 2.7% to 20,426.Including these, INSEE had counted 50,021 designs.

Year over year the last three months, the cumulative number of creations in the second quarter 2010 was up slightly compared to second quarter 2009 (+2.1%). The sectors that contribute most to this increase were the construction and industry, noted INSEE.

In the first six months of the year there are 200,313 requests for creations under the self-contractor.

The statute, which simplifies administrative procedures and is fiscally advantageous, has attracted 320,000 people its first year and the Secretary of State for Trade Herve Novelli in hopes as many this year.

The release can be found at www.insee.fr

The World Trade Organisation has postponed the publication of a report on an action by the EU against the United States regarding subsidies granted to Boeing.

The progress report was published as a confidential WTO panel on the cons-procedure initiated by the Europeans was due July 16, two weeks after the decision of the international institution holding illegal subsidies received by Airbus from European governments.

"I can confirm that the president did speak with the parties concerned and said that because of the complexities of the case, there would be a delay in publishing the report," said Keith Rockwell, spokesman for the WTO.

The United States and Europe accused each other of illegally subsidizing their respective aircraft manufacturers.

Next week will be loaded in statistics but the employment figures, to be published Friday, are probably those expected with more anxiety on Wall Street.

Economists expect 110,000 job losses in June, a large part due to the fact that the government has sent home half of those hired by acting for the census.

The unemployment rate is expected to 9.8% against 9,7% in May

Without a net growth of employment, the U.S. economy likely to frown, the consumer limiting his spending to the minimum necessary.Consumer spending accounts for two thirds or less of GDP.

Two other indicators, among the many to be announced, are also of interest to Wall Street: consumer confidence in June (Tuesday), scheduled withdrawal from May, and promises of real estate sales in May ( Thursday).

The latest indicators published in real estate suggests that the recovery in dock because of the expiry of measures for first-time buyers.

"The truth is that the recession is not over, either a relapse or a straight line without growth, it is anyway probably more real than all the noise around the recovery," said Carl Birkelbach (Birkelbach Investment Securities).

On the whole week, the Dow Jones lost 2.94% the S & P 500 3.65% and the Nasdaq Composite 3.74%.Since the beginning of the year, the Dow lost 2.73%, the S & P and Nasdaq 3.44% 2.01%.

HIGH VOLATILITY, NARROW FLUCTUATIONS

The agreement reached Friday morning in Congress on financial reform is also to be considered a good place for U.S. President Barack Obama urged the world to emulate the United States during the G20 summit in Toronto .

He is likely that volatility will be higher next week, fund managers adjust their portfolios at the end of the quarter.

The volumes tend to fall before long weekend of Independence Day, a factor which may in turn increase volatility.

To the extent that July 4 falls on a Sunday, the U.S. markets will be closed tomorrow.

This promise may be times tense for traders focused on technical elements that the S & P has been able to hold above its 200-day moving average during the week.Some investors believe that a movement below this threshold is a bearish signal.

For Michael Sheldon (RDM Financial Group), the margins of fluctuation of the market will probably narrow in coming weeks.

The next week also see some results of companies, Monsanto and Micron Tech among others, as a prelude to the flood of quarterly results which go off from mid-July.

As usual, Alcoa, one of the Dow 30 stocks, will open fire on July 12.

Corporate profits of the S & P are expected to increase by 26.8% in the second quarter, according to Thomson Reuters.

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.