Business News & Financial News

The Paris stock exchange resumed on Tuesday the path of decline, concerns about slowing global growth had returned to second place the ads on mergers and acquisitions cause a rebound in European equities Monday.

Around 9:10, the CAC 40 lost 0.95% to 3519.44 points.

Accor (+1.5%) is the only value of the CAC 40 in the green after the group announced the sale of walls 48 of its hotels in Europe, allowing it to exceed its debt reduction targets for 2010.

Lafarge (-3.9%) shows the largest decreases of ACC. Bank of America-Merrill Lynch lowered its recommendation from neutral to underperform.

London fell by 0.7% and Frankfurt 0.63%.The European indices, EuroStoxx 50 and 300 Eurofirst yield more than 0.9%.

The dollar is trading around 1.2642 per euro against 1.2635 late Monday.

A barrel of U.S. light crude lost 88 cents to 72.22 dollars.

Lafarge said it had completed the sale of 11.2% of its business in Malaysia under the divestment program initiated by the world's number one cement.

The sale of this portion of Lafarge Cement Berhad, Malaysian (LMCB), the French giant holds indirectly through two subsidiaries, for a net amount of 141 million euros, Lafarge said in a statement.

Following this, the group will remain the principal shareholder of LMCB with a 51%, against 62.2% so far, and will retain management of the business.

Lafarge in May confirmed its target of selling 300 to 500 million euros of non-strategic assets throughout 2010.

In 2009, he has conducted more than 900 million euros from divestments as part of a package of measures to strengthen the company's financial response to the crisis, including reducing debt inflated between late 2007 and in late 2008 by acquiring the Egyptian Orascom.

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

Airbus said it was pursuing "greater good" talks with European states on the financing of the A350, its new long-haul, saying the talks were in no way affected by the opinion issued Wednesday by WTO on subsidies to the aviation industry.

"(…) The A350 is not affected by the outcome of the WTO. Together with the four states, we are moving at full speed, "said Rainer Ohler, communications director of Airbus, a subsidiary EADS, in an e-mail.

"The completion and timing of the announcements are the responsibility of States.Thus, we can not make any comment on that, "he added.

Justices of the World Trade Organization have inflicted a blow Wednesday to scathing EU ordering him to remove certain export subsidies provided to Airbus.

In his report of more than 1,000 pages, the "special" WTO believes that Airbus could launch a series of civilian aircraft thanks to subsidies from the EU and member states that are France, Germany, Spain and the United Kingdom. Without this aid, Airbus has been a society very different and much less powerful, the report said.

Hungary will have to cut spending by about one to 1.5% of its gross domestic product (GDP) to fulfill the goals set by the International Monetary Fund (IMF) and the European Union (EU) this year but the Countries must also revive growth, said Monday the Minister of Economy.

Through several interventions aimed at calming investor fears, Gyorgy Matolcsy said that Hungary will stick to its objective of a fiscal deficit of 3.8% of GDP.

Speaking on CNBC, the Hungarian Minister of Economy said that there had been a number of failures in communication last week and added: "It is absolutely clear that Hungary is not Greece" .

On Saturday, the Hungarian government had already said to stick to its target of 3.8% deficit to GDP ratio in 2010 and was then considered "exaggerated" the official statements that had contributed to a downturn on the eve of Scholarships and a weaker euro.

"We will stick at 3.8% budget deficit this year, it was agreed with the IMF and the EU and accepted by the government and there is no doubt about it, we will stick to this figure "said Gyorgy Matolcsy.

"On the one hand, it is clear that austerity plan was not necessary. On the other hand, no recovery plan for the budget is considered.We will reduce budgetary spending and we will increase revenues and is the action plan of the new government. "

He also reiterated the government's plans for a tax cut, which does raise some questions among analysts about the ability of Budapest to meet its target budget deficit of 3.8% of GDP this year.

INVESTOR Perplexed

"We can not help being perplexed when the Hungarian authorities speak of a much larger budget deficit than expected and at the same time they exclude austerity measures and instead promise of tax cuts," said Lars Christensen, an analyst at Danske Bank.

Investors also continue to be skeptical since the early exchanges, the Budapest Stock Exchange fell more than 5%, while the euro continued to trade at least $ 1.20 and the forint vis-retreated à-vis the euro.

Bank stocks such as OTP Bank and FHB are particularly challenged, the first yielding 4.55%, after having lost 10%, while the second lost 3.41% at 7:30 GMT.

According to the Hungarian press, the Hungarian government could tax the banks to achieve its economic goals.

Gyorgy Matolcsy said on CNBC that by the end of May, 87% of the annual target budget deficit has already reached.

Most economists believe that Hungary is in a stronger position than that of Greece, its deficits and debt levels are not as high as those in Athens.

In fact, the Hungarian government debt has reached about 80% of GDP in 2009, against 133% for Greece expected this year. Budapest also has a surplus on current account last year and reduced its budget deficit to 4% after significant reductions in its spending.

However, the government nonetheless began Saturday a three-day meeting. The announcement of a program of measures is expected by the end of the day.

Gyorgy Matolcsy noted in particular a proposal for the removal of 20% of the 58 different categories of taxes.He hoped that a radical program of tax cuts three years could be launched this year.