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" .

The debt crisis has led to Monday a new onset of fever in the markets, powered by a warning from Moody's with respect to France and by the failure of U.S. lawmakers to agree on reducing the deficit .

Even the clear election victory of the Spanish right, Sunday, was not enough to reassure investors, anxious about no firewall is sufficient to prevent the spread of the crisis of sovereign debt.

The risk premium for holding debt Spanish, Italian or French rather than German securities was up in the afternoon, Moody's has highlighted the risks posed to the "triple A" of France increased sustainable financing costs.

The New York Stock Exchange closed up 0.25% Friday, the Dow Jones 30 Industrial winning 29.66 points to 11,800.39. The S & P-500, wider, lost 0.22 points, or 0.02% to 1215.91.

The Nasdaq Composite fell 15.38 points his side of (0.59%) to 2572.61

These data are likely to vary even slightly.

Cigarette packs will cost on average 30 cents more starting Monday. This should bring 600 million euros to the state in one year.

Cigarette packs will cost on average 30 cents more starting Monday in France, a 6% increase sought by the government should have little effect on consumption, but that will bring 600 million euros a year in State to Safely smokers will find it in a package less than 5.70 euros in their tobacconist. For the first time, the Marlboro (the best-selling package with nearly 25% market share) will pass the bar 6 euros to 6.20 euros.The government has allowed manufacturers to revise their prices, anticipating an increase in minimums of perception which must be passed by Parliament in the law on financing of Social Security.

This increase was announced by Prime Minister Francois Fillon, in late August, when presenting the plan anti-government deficit. It should bring 90 million euros this year and 600 million in a full year.

Taxes are 80% of the price of a pack of cigarettes. Most (over 10 billion euros in 2010) goes into the coffers of the social security system. Fillon also announced a further increase of 6% in 2012, without specifying the date. This is the third consecutive year that the cigarettes in the fall recorded such an increase (30 cents per pack), well above inflation.However, sales have never declined so far in the same proportions.

54.8 billion cigarettes sold in 2010

Thus, it has sold 54.79 billion cigarettes in 2010 against 54.98 in 2009, a mere drop of 0.3%. At the same time, the amount of rolling tobacco rose from 7257 to 7598 tonnes (+4.7%). In total, sales of tobacco (including cigars) increased by 0.14% by volume, according to figures from the observatory of drugs (OFDT). Again this year, cigarette sales in late July had declined by only 0.6% in volume compared to 2010.

Value, because of previous price increases, the market is increasing by about 5%. Growth shared by the state (almost 13 billion euros in 2010, including 2.5 under the VAT), tobacconists (8.2%) and manufacturers and distributors (11.8%). The anti-smoking groups believe that any increase less than 10% has no effect on consumption.The Office of Tobacco Prevention (OFT) ironically on Monday up seeing an "application" of the state "to the tobacco industry for agreeing to increase by more than 100 million profit."

Tobacconists and manufacturers recall their part that a sharp increase has an effect on sales in tobacco shops, without lowering consumption, since it encourages smokers to buy abroad or from resellers on the sly. A study of Customs estimates that 20% of cigarettes smoked in France are not purchased in the network of tobacconists, but fraud (5%) or legally (15%) in the neighboring European countries (Belgium and Spain) where the package is sell up to 30% cheaper.

These purchases, which exploded after the sharp increases in tobacco prices in 2003/2004, affecting particularly border trade, result in financial compensation from the state to tobacconists.A parliamentary report issued in early October to the Minister of Budget, recommends "a convergence of prices of tobacco in France and in neighboring states," but also "to reflect on the taxation of rolling tobacco" for "contrecarrrer the substitution effect for each increase in the price of cigarettes. "

European shares closed Friday up and recorded a third straight session of gains, as Wall Street made by U.S. jobs figures better than expected in September.

"The employment report for this month is also surprisingly good as last month was surprisingly bad. The labor market remains weak and the Fed should not be impressed by this report, which suggests an EQ3 (a third cycle of purchasing government bonds) at the FOMC meeting of November 2, "said Rob Carnell, economist at ING Financial Markets.

The CAC 40 index gained 0.66% to 3095.56 points but under the highest of the day (3126.0) after nearly 8% over the previous two sessions.For the week, the index rose by 3.81%.

London has been 0.23%, 0.54% Frankfurt and Milan 1.29%. The pan-European Euro Stoxx 50 index rose 0.81%.

"The European stock markets appear to initiate a phase of stabilization, as the actions of several sectors (banking, insurance, oil, utilities, telecommunications). This reflects the extremely low valuations of these securities," said Vincent Guenzi, strategist at Cholet Dupont.

Axa (5.10%) finished at the top of increases in the CAC 40, followed by Total (2.85%) and Peugeot (2.56%).

Carrefour (-3.66%) registered the largest decline of the CAC on profit taking.EADS lost 3.32%, hit by the rise of the euro, which fell from 1.3190 dollars late Monday at 1.3485 late Friday afternoon, the day after the announcement of new measures support to banks by the ECB.

In the bond market, the performance of the German government bond (Bund) and 10 years has reached 2%.

Philips reported new measures of cost reductions on Tuesday due to weak demand for its products, an ad that has boosted the title of the Dutch in early trading before it turns into a context of new sharp fall in European shares.

One who is both a world leader in lighting, one of the top three global manufacturers of hospital equipment and the European leader in consumer electronics is affected by higher commodity prices, from budget cuts in the Health and by sluggish consumer spending.

Philips said it had increased to 800 million its goal of cost reductions, which represents a 60% increase compared to $ 500 million announced in July.

The group also expressed confidence in its ability to meet financial targets for 2013, despite the uncertainties surrounding the global economy.

By 10:35 GMT, Philips yielded 0.78% to 12.13 euros after gaining about 7% in early trade. However, the value is better than the AEX index of the Amsterdam Stock Exchange (-1.6%) and the index grouping the European values ​​of consumer goods and luxury.

The Justice Department considers the requirements for rating mortgage products related to the crisis "subprime". This investigation was launched before the rating is downgraded by S & P U.S. The rating agency Standard & Poor's has lowered a notch Friday, August 5 sovereign rating of the United States, from "AAA" to "AA +".

The U.S. Justice Department is investigating about the view that Standard & Poor's focused on asset-backed mortgages whose collapse led to the 2008-2009 financial crisis, said Thursday night a source close to the .

Investigation launched by the deterioration of the American note

The survey – which according to the source is trying to distinguish between what the S & P analysts wanted to do and what they were told to do – was launched before the rating downgrade does the United States at the beginning months.

The Justice Department has also conducted a survey of Moody's, one of two main competing S & P on the notes she had assigned to structured products during the crisis, said another source. Asked by Reuters by telephone and e-mail, a spokesman for Moody's could not be reached immediately.

The Securities & Exchange Commission (SEC), Constable of U.S. financial markets, has also opened an investigation into the possible role of S & P, a division of McGraw-Hill, in the crisis, said the first source.Representatives of the SEC and Justice Department have declined comment.

Notes biased on subprime loans?

The New York Times had first reported the investigation of S & P focused on whether the agency had assigned the notes to dozens of biased asset-backed home loans before the financial crisis broke out in 2008. The Justice Department was interested in cases where S & P analysts want to assign notes to some of these assets before being contradicted by leaders of the agency, said the daily.

A spokesman for S & P noted that among the principles guiding the action of the particular agency were "analytical independence and objectivity", adding that the company had taken steps to strengthen the implementation of these principles ."In recent years, S & P has received several requests from various government authorities regarding asset-backed U.S. mortgage. We have cooperated and continue to do so," said the spokesman.

It is currently unclear whether Fitch (Fimalac group), the third major rating agency, is also being investigated by the Justice Department. Neither Moody's or Fitch have lowered their ratings on the United States.

With Reuters.

The airport operator BAA UK should proceed with the sale of London Stansted and one of those it has in Scotland, has finally decided the UK Competition Commission.

In a report released Tuesday, the CC confirmed the decision already taken in March and dismissing the appeal made by the Spanish Ferrovial, which controls BAA.

"The CC concluded that the sale of the airport is fully justified and that passengers and airlines will always earn more competition (…) despite the government's decision to exclude the opening of new avenues in London airports, "detailed the commission in a statement.

She added that the sales process should be initiated within three months.

This decision puts an end to a standoff two years between BAA and the CC, since it had ruled in 2009 that due to its dominant position in the UK market, the operator had to sell its London airports Gatwick and Stansted and one of its Scottish airports.

BAA Gatwick has sold to Global Infrastructure Partners for 1.5 billion pounds (1.70 billion) in October 2009.

The operator, which also owns London's Heathrow Airport, one of Southampton in southern England and the Scottish airports of Edinburgh, Glasgow and Aberdeen, said study its possible use vis-à-vis the decision of the CC.

"This decision would affect our company that invests heavily in British jobs and growth," said BAA in a statement.

U.S. stocks ended down Tuesday for the third session in a row, after a day of ups and downs, investors remain worried about the situation in Europe.

The Dow Jones has given 0.47% or 58.88 points at 12,446.88 points, while the Standard & Poor's 500 gave up 0.44% or 5.85 points to 1313.64 points and the Nasdaq composite fell by 0.74% or 20.71 points to 2781.91 points.

The downgrade of Ireland by Moody's late in the session completed to convince investors to remain cautious.

Markets have a time pretended to be gaining ground after the minutes of the last monetary policy meeting of the Fed, some officials of the central bank has raised the possibility of new measures to support growth.

"The Fed gave us a little pep, but the problems of Europe prevails at present", says Steven Roge, Roge & Co manager in Massachusetts.

On the Nasdaq, the technology has been particularly affected by the new home from Novellus Systems. The company, which manufactures equipment for the production of semiconductors, said he expected that orders continue to decline. Novellus fell 11.2% to $ 31.75.The semiconductor index dropped 2.9%.