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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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.

The bill for French distributors to almost 5 billion euros, or 1.40% of turnover. Flights are committed to 44% by customers, 30.1% and 7.2% staff from suppliers. A stand of Guerlain perfumes in a department store in Berlin.

Thefts from shops are starting to rebound in France between the mid-2010 and mid-2011, rising 2.9% in value, according to a study published Tuesday, pointing a "professionalization" of shoplifting .The study, conducted in 43 countries by the Centre for Research in the distribution (Center for Retail Research, based in England) from 1187 groups to the security company Checkpoint Systems, as the "shrink", that is ie the difference between theoretical and actual stocks, resulting from theft, but also of administrative errors or suppliers.

In France, the bill for the distributors is rising again, to reconnect with a sum amounting to two years ago, 4.9 billion euros, or 1.40% of turnover, against 4.7 billion euros, or 1.36% of sales a year ago. The equivalent, according to the study of an annual tax of 200 euros per household. Retailers believe that the flights are 44% committed by customers, 30.1% and 7.2% staff from suppliers.

The shoplifting is becoming more professional

"Thieves better information more easily thwart the standard features of security and those who get caught are the thieves who are casual, with smaller amounts," he told AFP Cedric Brossard, marketing director for the textile division of Europe Checkpoint Systems. "There is a professionalization of the flight," which becomes "a real job for some people with real orders," he said, citing "a lot of distributors who believe they have experienced an increase in organized crime." "Whenever there is a new product, it may generate a black market," he added.Conversely, he does not think that inflation on food products has had a significant impact on the increase in theft, noting for example that the coffee was already one of the most stolen.

In Europe, the thefts have increased more strongly than in France, 7.8%, but to a lesser extent, or 1.39% of sales of 36.23 billion euros. The average amount of shoplifting it was down 17.5% to 93.85 euros and the flight staff down 27% to 1,381.4 euros. Globally, the flights were up 6.6% to 88.88 billion euros, or 1.45% of sales distributors, against 1.36% a year ahead. Always at the center of envy, products expensive brands and smaller, easier to conceal and to spare."The flights do not give priority to basic necessities," the study said.

Fashion accessories among the most stolen

Among the most stolen items, fashion accessories, food products high-end such as meals and spirits, articles health / beauty products such as shaving and perfume, or technology products, such as MP3 players and smartphones. In Europe, the increase in shrinkage occurred despite an increase of almost 2% to 8.45 billion euros in spending on security and loss prevention, or 0.30% of turnover Distributors. "Those who have limited or theft managed to bring it down have introduced a multitude of solutions, unfortunately there is not a quick fix," said Mr. Brossard.The number of shoplifters and dishonest employees arrested by the distributors of the year under review exceeded 6 million, according to the study.

The unemployment rate in France within the meaning of the International Labour Office (ILO) decreased slightly by 0.1 points in the second quarter to 9.1% on average in metropolitan (9.6% including the overseas departments -mer), according to data seasonally adjusted (SA) Interim released Thursday by INSEE.

The number of unemployed stood at 2.580 million in city, or 37,000 fewer than in the first quarter.

The unemployment rate in the first three months of the year have been confirmed at 9.2% of the workforce in metropolitan and 9.7% with Dom.

In one year, the unemployment rate in France fell by 0.2 points in the second quarter.

The unemployment rate for 15-24 year olds has fallen more sharply in the second quarter than the general population: 21.9% on the mainland, it folds down 0.9 points from January to March and a point in one year.

INSEE no longer publishes monthly unemployment rate since 2006, after a controversy over its methodology.

Eurostat, the statistical agency of the European Union, continues to do so, however, and announced Wednesday a rate of 9.9% for France (Dom included) in July, a level below a tenth of a point the average for the euro area.

UBS plans to eliminate 3,500 positions, including nearly half of its investment banking activities, as part of a plan to cut nearly half its annual costs by the end of 2013.

The bank said last month that it would undertake a restructuring plan when it published the results below expectations.

"The measures announced today will help improve operational efficiency. UBS will continue its vigilance vis-à-vis its costs, while continuing to invest in growth areas," said the Swiss hotel in a statement.

European shares sink their media one after the other against a backdrop of slowing global growth, the President of the European Central Bank Jean-Claude Trichet who failed Thursday to allay concerns.

Since the beginning of the week, the European equity markets have lost about 290 billion euros of their value, two thirds of the 440 billion vested in the European Financial Stability Fund (EFSF), under the influence of fear of relapse the economy and the persistence of the crisis of sovereign debt in Europe.

"There are two important points in the speech of Jean-Claude Trichet that are quite contradictory: the desire to control inflation, meaning that eventually a new rate hike, and the possible injection of liquidity through repurchase obligations, "said Alexandre Baradez, market analyst at Saxo Bank.

Jean-Claude Trichet at a news conference after the monthly meeting of the Governing Council of the ECB has implicitly confirmed the recovery of market intervention, and stressed that inflation expectations in the euro area were remain firmly anchored.

If the part of speech of Jean-Claude Trichet on redemptions of bonds was expected by the market, allowing the index to delete then some of their losses, the talk about inflation is not necessarily what is more appropriate in the current environment, explains Alexandre Baradez.

"Inflation eats away at the debt and rising interest rates would not be appropriate when the level is already high in Europe.We also see that we do not ask this question in the United States, "said he.

THE CAC 40 COULD FALL TO LOWEST OF 2010

After pressing multiple media techniques, markets could even fall even lower.

"The CAC 40 may now fall to its next support at 3,350 points, and then go towards the lower end of the year 2010 at 3287 points," warned Alexander the Drogoff technical analyst at Aurel-BGC.

Moreover, all this should be done in a climate of increased volatility, analysts warn.

"The volatility of the Eurostoxx 50 is too low and this should be corrected," warns Gastaldy and Valerie, an analyst at Day By Day graphic.

"The implied volatilities have been very quiet in recent months, despite the intense agitation of the equity markets. Intermarket arbitrage operations are clearly under way: between the CDS, bonds and equities, and especially so on the Eurostoxx50, "said she.

As for metals, an ounce of gold hit a new side of his most historic 1677.90 dollars in the wake of the conference of ECB President Jean-Claude Trichet.

The euro yield 1.42% against the greenback at 1.4139 dollar.Baradez Alexander points out, however the relative strength of the euro against the dollar, which manages to stay in a range between 1.4150 to 1.43 dollar down without crossing the threshold of $ 1.40.

"On the foreign exchange market, we see that there is a seller of wind shelters currencies (dollar and yen) for the benefit of currency risk. This could be a harbinger of a renewed appetite for risky assets and therefore support equity markets, "said he.

Volvo has maintained its forecast for Friday sales of trucks in 2011 while posting a result almost in line with expectations, which has helped jump title at the opening of the Exchange.

"During the second quarter, sales of Volvo continued to grow as a result of a steady recovery in mature markets and strong demand from emerging markets," said CEO Leif Johansson.

The Swedish group has reported an operating profit up 60% to 7.65 billion Swedish crowns (840 million) in the second quarter, against a forecast 7.67 billion in a Reuters poll.

Volvo still expects to sell this year between 230,000 and 240.000 trucks in Europe, and North America.

It also anticipates a recovery of the Japanese market after a decline of 26% in first half due to the earthquake that struck the country in March.

"Over the year, about 23,000 heavy goods vehicles should be sold in the Japanese market, representing a decline of 6%," announced the group.

Title Volvo opened up almost 5% at the Stockholm Stock Exchange.

Volvo has instead lowered its outlook for its second largest division, construction equipment, a growth of between 20% and 30% growth between 15% and 25%.

"The Chinese market is weakening due to the actions taken by the government to control inflation", said the group, adding that he has also strengthened its dominant position in this market.

Michel Sapin, the Socialist Party national secretary for the economy, said the refusal of registration to vote Socialist in the Constitution a "golden rule" budget. He said the government seeks only to make us forget its responsibility for the explosion of deficits. Michel Sapin, MP PS here in 2002. The Assembly should be adopted Wednesday the bill which provides for constitutional reform to include in the Constitution "framework laws to balance public finances" three-year program budget efforts that France must provide to clean up its accounts. The senators said their content, indicating that they "set as an annual spending limit and a minimum of new measures relating to revenue." Prime Minister Francois Fillon has expressed support for his part Tuesday in a meeting of Congress to vote for this bill.Interview with Michel Sapin, the Socialist Party national secretary for the economy. Why socialists preclude inclusion in the Constitution a "golden rule budget"?

Because it make an extremely serious matter, the recovery of public finances of France, a purely political purpose. It is a communication operation of a government that, since taking office, exploded the deficit. The objective is to the left in difficulty. We will not fall into the trap.

In defense of the government, exploding deficits is it not due primarily to the economic crisis?

Wrong! Only a third of worsening deficits in recent years is cyclical. The remaining two thirds are structural. The government sealed the deficits by cutting taxes for the rich.

Nicolas Sarkozy has recently criticized the socialist project in 2012, which will result in his debt to explode …

This is the first arsonist who wants to believe he is the fire chief! The economic framework of the socialist project provides an inversion of the curve of debt in 2013-2014 and a return to a deficit to 3% of GDP to more or less the same horizon, depending on the situation in France will be the 2012. Our commitments are consistent with current government promises. The difference is how we reduce that debt. We are committed to achieving a socially just, that is to say by ending tax breaks enjoyed by the rich and stimulating growth.

Which candidate for the Socialist primary emblem you best embody this commitment?

One who shows the strongest commitment to the fiscal consolidation is François Hollande.

EuropaCorp, the production company of Luc Besson announced Thursday a loss of 30.2 million euros for 2010-2011, mainly due to the failure of the international two items of the saga "Arthur and the Invisibles "and the costs associated with the reorganization.

The group of film production and distribution, established in 1999, table, however a return to growth "sustainable and profitable" due to the increased presence of international films and lower overhead.

"The realization of the strategic action plan allows us to renew our confidence in the goal of returning to profitability for the year 2011-2012," said Group Chief Executive Christopher Lambert in a statement.

The studio, who has produced "Taxi," "The Fifth Element" and "The Transporter", introduced in May a three-year strategic plan which should enable him to return to profit after exceptional losses Arthur saga.

"This plan led in particular to the increase in the share of recurrent and our international sales," said Christophe Lambert.

The studio recording the rise of television production, which in 2010-2011 accounted for the first time to revenue, amounting to 16 million euros, or 9% of 178.7 million euros income group.

Around 24:30, the action is up 2.85% to 3.97 euros on Thursday, bringing its market capitalization to about 80.6 million euros.The title has sold nearly 12% since the beginning of the year, after losing about 30% in 2010.

The president of OPEC maintains there is no need to put more oil on the market Monday and deplored the initiative in this direction taken by the International Atomic Energy Agency (IEA).

The IEA last week announced the release of emergency reserves, the Organization of Petroleum Exporting Countries had decided earlier not to increase production to compensate for the lack of Libya.This is only the third time that the IEA takes such a decision 37 years of its existence.

"The market is in normal (…) There is no need to increase supply," said Iranian Oil Minister Mohammad Aliabadi, who holds the rotating presidency of OPEC to the end of the year.

He was speaking in Vienna where he met officials from the European Union for an annual exchange of ideas, regularly since June 2005.This meeting could be much more animated than usual, at least behind the scenes, given the divisions within OPEC and tensions between the cartel and consuming countries, especially since the use of reserves.

Mohammed Aliabadi wondered why major consuming countries do not have adhered to the principles of free trade they advocate. "Why do they not respect these principles, it's really a big issue for us.We think prices should be determined by the market itself, "he said.

Iran is one of the OPEC countries to have this month blocked a proposal to increase the production promoted by the Saudis.

The price of Brent crude for August delivery touched a session low of 102.28 dollars a barrel on Monday, down about 10% from its close of Wednesday, the eve of the announcement of the IEA .

"The big problem is that Iran has the presidency of OPEC in 2011 and is a political instrument," said Olivier Jakob of Petromatrix. "The news emanating from the current OPEC is irrelevant because Iran has kidnapped the OPEC and we will have to wait for 2012, perhaps, see OPEC again work as an institution."