Business News & Financial News

LVMH wipes one of the largest declines in the CAC 40 stock market Friday morning, a victim of profit taking after the publication of its annual results, after winning more than 21% since mid-December .

Stakeholders believe however that the title could quickly resume colors, these results with 2011 confirmed the good resistance of luxury to the crisis, with prospects for the year 2012 found very reassuring .

At 11:00, the title fell by 0.87% to 125.25 euros in a volume of nearly 455,000 pieces, or 41% of its average daily volume the past three months, while the CAC 40 is stable.

"These are profit-taking. The results are very good. LVMH has proven its strength in non-crisis and crisis. The title should rebound quickly (upwards), "said one trader

. LVMH has published annual results up sharply, signing new records through the acquisition of Bulgari, and once again demonstrating the resilience of luxury to shocks in the economy

….. …. "LVMH is a history of strong growth and fits well with the themes of our strategic team for 2012 (quality, sustainable growth, large capitalization, strong balance sheet)," said Thomas Chauvet, an analyst at Citi

. But he wonders if time is not ripe for the title of a break in a context of weak growth

. "After the 15% increase in luxury and LVMH shares, with limited potential for earnings growth in short term, we see only modest upside potential for the course, "he said. 

"Like the rest of the sector (with the exception of Tiffany), LVMH shares performed well since the beginning of the year, supported by stronger growth than expected in its sector fourth quarter, a favorable exchange rate developments and an appetite for stocks with high beta (volatility). Despite positive comments from CEO of LVMH, the action probably warrants a pause, "says Antoine Belge of HSBC

. Analysts already largely positive on the title, welcome the absence of growth deceleration in the fourth quarter and in January, several of which have raised their forecasts for 2012 and their price target

. "We note the strong momentum in the fourth quarter by region and by industry, the figures being very close to those of the third quarter, "wrote Thomas Mesmin, an analyst at CA Cheuvreux, which raised its price target from 19% to EUR 150

… …… "Management remains optimistic for 2012 and reports a good start to the year, particularly in Asia (Chinese New Year) and the United States. Local demand in Europe continues to grow, which is a very reassuring, "he says

. Oddo Securities also raised its price target on LVMH, which rose from 140 to 146 euros, and its estimate of 2012 net income, noting that the EBIT for 2011 published is 3% above the market consensus

. In a note on LVMH entitled "Crisis? What Crisis ", Natixis Securities is also its price target, going from 140 to 147 euros, and confirmed its recommendation to buy

……. .. "The fourth quarter exceeded expectations ends the year in style and confirms the excellent level of business despite the current depressed. The strengths of the group (unique portfolio of brands, global presence) will play back full in 2012, "wrote analysts at Natixis in their daily note

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The party of the presidential majority proposes the opening of branch agreements on legal working hours. For the head of the UMP, Jean-Francois Cope, the output of 35 hours is "inevitable." The national secretary of the UMP Jean-Francois Cope

The UMP will propose at its convention, which opens Tuesday, the opening of branch agreements in areas where the 35-hour "lasting problems arise," said Tuesday the Minister for Ecology Nathalie Kosciusko-Morizet on LCI. "Our position, which will be presented tonight is to give the possibility to open branch agreements. There are branches in which lasting 35 hours pose problems despite the flexibility that we have done," said Ms Kosciusko-Morizet.

Nathalie Kosciusko-Morizet did not specify which areas were specifically concerned, however, saying that all branches should be able to open negotiations."But there are areas where it is more complicated than others, where the division of labor is much less homogeneous than in others," she said.

In an interview published Tuesday in La Voix du Nord, the Secretary General of the UMP Jean-Francois Cope said that "the crisis, the output of 35h is inevitable, since it secures the purchasing power" .

General Motors announced Monday the retirement of Nick Reilly, current head of the European activities of the group and its replacement next year by Karl-Friedrich Stracke.

The latter will take office as president of GM Europe on 1 January while retaining his current position as CEO of Opel.

General Motors had appointed in March the former head of engineering at the head of the European manufacturer Opel.

With 5.12 billion euros of order intake in 2010, the French arms exports experienced a sharp drop from the previous year, when they had reached 8.16 billion, announced Wednesday the Departments of Defense and Foreign Affairs.

In a "difficult situation", France has retained last year's fourth largest exporter behind the United States, Britain and Russia, reads the report to Parliament on the exports of arms of France in 2010.

The main customers of France were Saudi Arabia, Brazil, India and Malaysia.

In the preamble to the report, the defense minister, Gérard Longuet, welcomed a "success" of France in a crisis.

He sees an encouragement "not to relax our efforts and to continue our work for our exports to strengthen the industrial and technological base defense of our country and preserve the 165,000 jobs that the industry has."

Over the period 2006-2010, the Middle East is the top destination for exports with 27%, followed closely by Latin America 25%, thanks to contracts with Brazil.

Asia represents 18% of the market, and expected success with India could advance this figure in years to come.Finally the percentage of world market share in Europe is 17%.

The contract for the sale of two ships Projection and Command (BPC) Mistral class in Russia for an estimated $ 1.2 billion was signed in June, and is not accounted for in 2010 .

The two helicopter carriers are built by the French shipyard DCNS, contractor on the contract, and STX, in collaboration with OSK.

DCNS, a public company, is controlled to 25% by the defense electronics group Thales.The Korean group STX, owner of the shipyards of Saint-Nazaire, is also involved in the construction of the Mistral.

As for the ongoing negotiations with several countries including Brazil and the United Arab Emirates to sell for the first time outside the Rafale combat aircraft from Dassault Aviation, they have not yet been completed.

Over the decade 2001-2010, the United States, Britain, Russia, France and Israel have shared 90% of the arms market.

List of values ​​to follow on Wednesday at the Paris Bourse.

* BANKS. The International Monetary Fund is considering taking part in a special investment vehicle that would be created by the European Financial Stability (EFSF) but has not yet taken any decision, officials said Tuesday the euro area.

* PSA Peugeot Citroën has revised down its forecast Wednesday after the third quarter of 2011 marked by lower volumes and increased competition on prices in Europe.

* AIR LIQUIDE confirmed target improvement in net profit in 2011 "in a normal environment," despite a slowdown in sales growth in the third quarter, still worn by the emerging markets.

* Bouygues.Morgan Stanley initiated coverage of the value with a board underweight and a target price of 32 euros.

* Saint-Gobain confirmed its 2011 objectives despite the deterioration in economic conditions which could lead to slower growth in the fourth quarter of the group.

* STMicroelectronics.Kepler Capital Markets lowered its recommendation on the way to reduce, retain cons.

* Ingenico found that the turbulence in the economy does not question its forecast for 2011, thanks to particularly strong sales growth in emerging countries and Europe, but the manufacturer of payment terminals has remained silent of 2012.

* MERSEN confirmed its 2011 objectives, supported by strong solar activities and Asia, but expressed cautious for 2012 due to economic climate remains uncertain.

* LAFUMA confirmed its performance targets for 2010-2011 following a growth of 1.7% of its turnover in respect of the fiscal year.

After the leak on the proposed closure of two blast furnaces in Liege, Belgium, Lorraine ArcelorMittal employees are concerned about their future. Employees of ArcelorMittal at the entrance of the site of Florange, September 9, 2011.

Article first published on LExpress.fr

In shock. Back Thursday night in Lorraine, Edward Martin, the CFDT delegate of ArcelorMittal Florange, found the words to shout his anger. "At noon, I was unable to speak," he admits. Hours earlier, he was still in Luxembourg, following a meeting of the EWC's No. 1 global steel industry. Meeting at which management claimed to have nothing to say to the union representatives, while in Belgium, the Walloon region have learned announced the closure of two blast furnaces in Liege. "The Belgian colleagues were crying," said Edouard Martin.Both blast furnaces were arrested temporarily. Florange such as: one ceased operations on July 6, the other on October 4. "How to extend credit to the word of Mittal who say one day it will not close and decide the opposite the next day? Edward Martin gets carried away. Eric Besson does not doubt the word of Mittal? It is more naivety is complicity! "

A Florange, fear is escalated after the announcement that hit the site of Liege. The area has already seen the closure of the steelworks in Gandhinagar in 2009. Teams know that ArcelorMittal wants to improve the productivity of blast furnaces and focus activity on large-capacity facilities, located by the sea, more profitable (Fos and Dunkerque in France, Ghent, Belgium, Bremen, Germany , Gijon, Spain).Seven sites in Europe are now involved in the activity stops, France, Belgium, Germany and Spain. On September 23, at the investor day in London, the management of Mittal announced an "optimization plan assets of € 1 billion" in the old continent.

"We wondered where it would find one billion, one begins to understand, but this is not enough, loose Edward Martin, furious. We always used the same refrain, the temporary closure. Until punch in the stomach the final decision. It is sure that with the presidential election, it would make a bad impression to announce closure of Florange. But what will happen there in June 2012? ". Segolene Royal after a fortnight ago, François Holland a week ago, Jean-Luc Mélenchon which is Florange this Friday, October 14. "But we are disgusted by the silence of French and European authorities, denounced Martin.Libya is saved, we save the banks, and we? We will not let them kill Florange. For thirty-three years I worked here. This plant is ours. In 1992, there had been 1.5% of payroll to pay for a new galvanizing line. They killed Gandhinagar, they will not kill Florange. Angry? Today, it is not anger, it's disgust. "

Maple Group, a consortium of Canadian financial institutions, said Thursday it was extending until Oct. 31 its hostile bid of 3.8 billion Canadian dollars (2.7 billion euros) on TMX Group, the operator of the Toronto Stock Exchange.

The consortium, composed of the four largest banks, pension funds in four of the country and one of the largest life insurers in North America, also said he continued to work to get the go Green regulations for its offer of 50 Canadian dollars per share.

TMX and the London Stock Exchange had agreed to merge earlier this year before the LSE does not waive lack of sufficient support from shareholders of TMX.

Gold was well on Monday to undergo its biggest drop in three days the last 28 years, investors are turning away from commodity markets to protect themselves from the potential impact of a default on the remaining Greek countries in the euro area.

"Gold is one of the few assets that remained in positive territory this year (…), so when investors are looking for money, they sell assets that have underperformed.Basically, gold is a victim of its own success, "wrote in a note Edel Tully, an analyst at UBS.

The price of spot gold was trading at 1,623.19 dollars per ounce to 11:25 GMT, down some 3%.

During the last three days, gold has fallen nearly 10%, its biggest decline in this time interval since February 1983.

"This shows that in times of extreme stress, there is no adequate substitute for liquidity," said Tom Kendall, an analyst at Credit Suisse.

Gold has dropped more than $ 100 last Friday's rebound against the greenback and rumors of liquidation of positions by large hedge funds.

The lack of consensus for a solution to the crisis of sovereign debt in the euro area has pushed gold to new heights this year, reaching more than 1,900 dollars per ounce.

"The increase in the volatility of gold prices was a clear indication that gold was no longer a low-risk assets," said Nic Brown, on commodities strategist at Natixis.

Greece, which bends under the weight of its debt, should go ahead with the reforms advocated by its international donors at risk of serious consequences, said the governor of the central bank of Greece, George Provopoulos.

"Either we proceed immediately to implement significant structural reforms and monitor the dynamics of the debt or we face a dramatic situation," said Greek central banker in an interview to the newspaper "Sunday Real News".

For the man who sits on the Board of Governors of the European Central Bank (ECB), the realization by the firm BlackRock Solutions for an audit of the loan portfolios of Greek banks should help them to regain access to market financing.

European shares opened slightly lower Tuesday, extending the trend of the previous day, while Standard & Poor's lowered its credit ratings on Italy, where the market nervous, fearing a lack of Greece.

Banks are again in the first line, after a report in the Financial Times that the German group Siemens withdrew 500 million euros in a major French bank to transfer them to the European Central Bank (ECB) two weeks ago .

At 9:07, the CAC 40 index down 0.33% to 2930.23 points.

The London Stock Exchange lost 0.47%, 0.22% Frankfurt and Milan 1.05%.

The Euro Stoxx 50 was down 0.27%.