Business News & Financial News

Pflimlin Etienne, President of the Mutual Credit, announced Monday he was resigning his post at the head of the French mutual bank.

"I decided, for personal reasons, to end my functions as president of the National Confederation of Credit Mutuel, and the Federation of Credit Mutuel Centre Est Europe," he wrote in a statement released to the press by Credit Mutuel.

The banking group, in its statement, said that Michael Lucas, the current CEO of the Credit Mutuel will replace Stephen Pflimlin as President from October 14.

Previously, a source close to the group's management confirmed to Reuters that information revealed by the newspaper Les Echos.

"Yes, there is a press release that starts tonight at 18 hours, but I think I'll try to move forward," said the source had told Reuters.

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

Royal Bank of Scotland (RBS) has agreed to sell nearly 2.4 billion euros of its majority stake in its subsidiary WorldPay payment systems to two private equity funds, the latest step in its restructuring plan .

After Friday increased its quarterly results, RBS said it would sell 80% of its business Global Merchant Services, which oversees WorldPay to Advent International and Bain Capital in a transaction valuing the company up to 2.03 billion pounds (2.4 billion euros).

Advent and Bain were in exclusive talks for this operation since late July, had said last month a source close to the matter.Analysts had estimated the amount of the transaction between two and 2.5 billion pounds.

The two companies capital that they are looking to develop activities WorldPay and added that they could conclude other acquisitions.

RBS will however keep a stake of about 20% in WorldPay.The added value generated by this transaction would be approximately 850 million pounds and increase the solvency ratio "core Tier 1" bank by about 30 basis points, the bank said.

"A NEW IMPORTANT STEP"

RBS will receive an initial cash payment of £ 1.7 billion once the deal is finalized and could obtain additional 200 million depending on performance WorldPay.

"The sale of Global Merchant Services is a new milestone in the restructuring program the company," said chief financial officer, Bruce Van Saun, in a statement.

Around 4:45 p.m. GMT, RBS yielded 0.38%, to 51.8 pence in London Stock Exchange, outperforming the Stoxx 600 index, however, brings together the main European banking stocks, which retreated at the same time by 0.74%.

This occurs after the Wednesday of the sale of 318 branches RBS UK counterpart Santander for about 1.65 billion pounds.

Before announcing the sale of WorldPay, the bank reported Friday in an increased profit in the second quarter due to recovery of its loan portfolio and improved its net interest margin, while bad debts Ireland remain problematic.

Several European banks such as HSBC, BNP Paribas and Barclays, have reported strong results this week in favor of a reduction in expenses related to bad debts, but some investors are questioning their prospects.

"THE PERFORMANCE IS A LITTLE LIGHT GBM"

RBS, for its part reported an operating profit of 869 million pounds for the quarter ended June 30, after a profit of 713 million in the first quarter.

The retail banking and commercial banking at RBS have seen their net banking income increased during the quarter but the division of investment bank GBM has had difficult times with a 31% drop in GDP over the first quarter.

"The performance of the GBM is a bit light, but the plus side, the British retail banking seems to be doing well," said Joseph Dickerson, an analyst at London brokerage firm Execution.

RBS said it had seen no return of the investment bank in July, which is fueling fears that the sector does not meet the expectations throughout the year if the soft trend in May and June is confirmed.

"July is generally consistent with the trend of the previous two months," said Stephen Hester. "If customers, uncertain, remain on the sidelines, there is less money in the investment bank."

Impairment losses accounted for 2.49 billion pounds in the second quarter, against 2.68 billion in the first.Excluding the gain on the recovery of its own debt, the bank posted a net income of 250 million pounds, down from the first three months of the year.

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.

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.

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.

The action marked rise in BP was Monday at the London Stock Exchange, the oil group has ensured that the containment dome set up the leaking wells in the Gulf of Mexico allowed to siphon off most of the oil 's them escape.

The UK has added a new capture system, to recover most of the dispersed oil would be ready in mid-JuneIt also revised upwards the cost of cleaning the oil spill, now the order of billions of dollars.

Action BP gained 2.7% to 445 pence at 11:18 AM.

BP said Sunday that the dome had helped siphon off the equivalent of 10,500 barrels Saturday, while the leak is estimated between 12,000 and 19,000 barrels per day.

"Finally we see some positive news for BP," said Peter Hitchens, oil analyst for Panmure Gordon.

Another analyst said that if BP is able to recover most of the oil in the coming month and a half, he will have less difficulty in avoiding a fall in the first quarter dividend.This decrease is claimed by some U.S. politicians.

The oil company also said that there was no change in its policy of exploration and production as a result of the spill.

"The exploration and production activity is a long term one must first make all investigations and draw all the lessons," said Clive Christison, one of the leaders of BP.

The British oil giant BP has already spent 1,250 billion dollars trying to contain the oil spill in the Gulf of Mexico, "he said Monday, indicating also be collected Saturday a total of 10,500 barrels after the installation of a funnel flight.

Between 3 and 5 June, BP and 16,600 barrels of oil collected with this new device.

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The amount advanced by the group does not include $ 360 million promised for the construction of artificial islands to Louisiana, he said.

"The optimization (device) continues and we hope to improve the collection in the coming days, but it will be some days yet before we can evaluate the success of this attempt at containment," BP said in a statement.

BP also said it was too early to quantify the total costs of the oil spill caused by the explosion late April of the platform Deepwater Horizon, in which 11 employees were killed.