News – Business & Economi

Reinsurers want to remain confident on the evolution of tariffs for 2011, while many observers are predicting a tough year for prices as for the results of the industry.

Like every year, major players in the reinsurance meeting in Monte Carlo to start negotiations on their rates have pleaded for the discipline and ensured that they would not engage in fierce competition, too anxious to preserve their underwriting profitability.

World number one industry, Munich Re, said it successfully maintain stable prices in general during the renewal of his treatises at the beginning of next year.

He also reported some increases in prices after the sinking of an oil platform in the Gulf of Mexico and the earthquake in Chile.

The French Scor, world number five, was also wanted optimistic, recognizing that customers were hard in business.

"We hope that the January renewals will be at prices at least stable or rising slightly," said Denis Kessler Sunday, Group CEO, during a press conference.

But brokers, rating agencies and some industry observers believe that 2011 should believe, for the third consecutive year, result in lower premiums in the reinsurance damage.

FLEXIBILITY

Insurance companies, which transfer some of their risks to reinsurers – including in the coverage of natural disasters – are flexible about the proportion of risk they want to reinsure, by buying less when prices are high, said James Eck , senior credit analyst at Moody's.

"Insurers do not want to pay more and there may be considerable resistance to higher prices," he notes, adding that most insurance companies followed by rating agency plans to buy the same level protection or less this year compared to last year.

The offer also affects reinsurance prices and reinsurers have significant excess capital in order to underwrite the recovery after the financial markets occurred in 2009.

According to some estimates, the industry is over-capitalized approximately $ 13 billion.

"It is over-capitalized so that there is no major disaster," noted Michael O'Halleran, executive chairman of the world's number one insurance broker Aon Benfield.

Chris Klein, head of global markets at the competitor Guy Carpenter, "a loss of 20 to 30 billion dollars could stabilize the market."

Otherwise the rates should continue to erode in 2011, according to industry observers, who also anticipate further pressure on the profitability of reinsurers related to the low yields of their financial assets.

BP announced on Friday postponed a week to publish its third quarter results, a delay the company justified by the complexity of accounting for costs related to the oil spill in the Gulf of Mexico.

BP announced in a statement that the publication of its quarterly results, which generally occurs on the last Tuesday of the month following the quarter end, would be Nov. 2, not Oct. 26.

That decision, said a spokesman, was taken after noting that the group had encountered difficulties to balance its accounts the second quarter in time to meet the usual schedule.

He has however denied any link between this decision and the possible discovery of new losses.

In an internal investigation report released Wednesday, BP dismissed its subcontractors much of the responsibility of the origin and extent of oil spill in Gulf of Mexico.

A BP spokesman defended the integrity of lawyers who supervised the drafting of the report, much criticized by the subcontractor of BP, such as Transocean, the company that operated the platform Deepwater Horizon and the American political .

"Their role was to ensure that the report was legally indisputable," said Andrew Gowers, a spokesman for the group, about lawyers.

Action BP yielded 0.6% in midmorning London Stock Exchange while the pan-European Stoxx 600 index of abandoned oil and gas 0.8%.

EADS is in talks with a small number of defense companies, services and security for potential acquisitions and could easily make a purchase about one billion euros, Louis Welsh said Wednesday, the Director General of European group.

Speaking at the Reuters Summit on aerospace and defense to Washington, he explained that the cash flow of nine billion euros available to the group allowed it to consider acquisitions "reasonable".

"We want to make acquisitions in three areas," said Louis Welsh citing defense, and security services.He added it was important not to move too slowly on this type of case and decided not to miss opportunities.

EADS PRIORITY IS FOR THE USA

"We review a large number of companies to determine who could be our target," said Louis Welsh, adding that the manufacturer's ambition to develop its activities mainly in the United States that represent approximately half of global spending defense.

EADS, which now depends heavily on commercial aircraft, hopes to increase revenues from its defense unit, space and security so that it represents 50% of its total turnover in 2020 against 35% TODAY 'hui.

From the redemption in April 2008 the California company PlantCML, which specializes in security systems, EADS has been cautious in terms of procurement, risk of financial penalties for delays in production and funding requests airlines constituting a threat to the treasury.

The European planemaker has canceled a second proposed acquisition in the U.S. later in 2008, which was valued by its leaders about one billion dollars.

The renewed appetite for acquisitions of EADS comes as the manufacturer has set a target to increase its sales to North America to $ 10 billion by 2020, about a cons 5 billion expected in 2010 and approximately $ 1.2 billion in 2009.

Asked to clarify whether the amount of an acquisition could exceed one billion euros, Louis Welsh said: "A billion is certainly a figure that we can achieve." He added that this amount did not represent a limit or a goal.

Louis Welsh said that EADS was not looking for a major merger with a major player in the defense market.

Air Products and Chemicals announced Monday that its offer was in cash at Airgas to 65.50 dollars per share.

The offer previously was 63.50 dollars per share.The producer of Industrial Gases Airgas had rejected the offer of its competitor in July.

Airgas announced that its board would review the offer and advised shareholders not to react in any way in the immediate future.

Air Products had announced in August that he had spent an amicable agreement with the Federal Trade Commission (FTC) to enable it to pursue its bid for Airgas.

Under this agreement, Air Products is able to redeem Airgas it obtains the approval of a majority of shareholders of the target and if it sells assets.

The group, which could become the industry leader in North America if successful, said its offer valued action Airgas over 50% from its closing price on Feb. 4, the eve of the beginning maneuvers.

Air Products said that the Board of Directors of Airgas had no reason to refuse any negotiation.

The group, which supplies gases such as argon, helium or nitrogen to customers in the sectors of metallurgy, pharmacy and chemistry, Airgas wants to acquire for its network of sales and distribution, and 1500 representatives.

Airgas distributes gas cylinders in the industry and the medical sector and buys most of its gas from Air Products.

Air Products has also declared that in case of rejection of his three candidates for the board, he would give up the transaction and would turn to "other attractive opportunities for growth.

The Scientific Council of indices for the Paris Stock Exchange has decided to withdraw Dexia and Lagardère CAC 40, which will be replaced by Natixis and Publicis, NYSE Euronext said Friday.

Dexia and Lagardere will be included in the index Next20, ante ACC with Edenred and Rhodia, while Atos Origin and Land Regions are withdrawn over Natixis and Publicis.

These decisions will take effect from the trading session of September 20, 2010, said Euronext, which manages the Paris, Brussels, Amsterdam and Lisbon, and the New York Stock Exchange now payday loans.

The Scientific Council of indices for the Paris Bourse meets four times a year.It decides the composition of indices taking into account market capitalization, volume and weight of the share float of securities.

Five values also incorporate the SBF 120 – Bull, Faiveley Transport, Medica, Ruby and Sequana, while six are removed – Beneteau, Bonduelle, French Cement, Euler Hermes, Sperian Protection and Vilmorin.

The Chinese authorities have ordered several public companies to explore investment banks with different options to impede the bid for 30 billion euros of BHP Billiton Potash, it was learned from informed sources directly file.

Following these instructions, the chemicals group Sinochem has held meetings with several banks which include Citigroup, HSBC and Morgan Stanley, said the source.

One option being considered is an alliance between Sinochem and the sovereign wealth fund CIC, said a second source familiar with the matter.

The instructions given by Beijing, which demonstrates that the Chinese authorities take seriously the hypothesis of a takeover by BHP and Potash its possible implications on the price and supply of fertilizer, despite obstacles that would surely meet a cons-offer.

Sinochem has declined comment. CIC could not be reached immediately. The banks mentioned were refused comment.

The sources spoke on condition of anonymity because they are not authorized to speak publicly on the matter.

The decline in unemployment for the second consecutive quarter to hope that France moved into a sustained decrease, said Thursday Economy Minister Christine Lagarde.

The unemployment rate as defined in International Labour Office has declined to 9.3% and 9.7% in France with overseas in the second quarter against 9.5% and 9.9% in the first, announced Thursday INSEE.

"This is good news, especially now that a new repeating itself," said Christine Lagarde told Reuters.

"When is two consecutive quarters, there is reason to believe that not only stabilized but unemployment is perhaps past the right side of stabilization.People come, hopefully in permanently reducing unemployment. "

In a previous interview after the announcement of a decline in the number of jobseekers in Class A in July, 25 August Christine Lagarde had referred to "stabilize" trend that is becoming.

Asked to say at what level of growth in France was able to create lasting jobs, the economy minister said: "It is almost certain it was only 2% of net job creation sustainable, but look at the current period, to 1.4% pace of growth was the net creation of jobs.

"The French economy has created about 60.000 new jobs since the beginning of 2010 when it evolves at a rate of 1.4 to 1.5% growth, so somewhere between 1.5% and 2%, the French economy created jobs .

"What is important is that we can maintain this trend of declining unemployment and net creation of jobs," she added.

The government forecasts economic growth of 1.4% this year and 2.0% in 2011.

Warren Buffett has filed a formal offer for the purchase by Berkshire Hathaway of its 19.9% stake it does not already own in Wesco Financial.

Wesco, which is headquartered in Pasadena, California, is run by Charlie Munger, vice chairman of Berkshire Hathaway.

The transaction in cash and stock should be around 500 million dollars (390 million euros) on the basis of book value at Wesco dated June 30His actual amount will be determined on the basis of the carrying value of the company at the time of the closing of the transaction Warren Buffett hopes that it will happen this year.

In a statement, Wesco said it had established a committee of three independent directors to consider the offer from Berkshire fast cash.There is no guarantee that the transaction is concluded, says the company is mainly active in insurance, furniture rental, and steel.

Warren Buffett, who is aged 80 years, has announced its intention to redeem the remaining Wesco August 26, which has resulted in a leap of 11.8% per share this year.

Wednesday, the stock closed up 46 cents at $ 363, giving the 19.9% stake coveted by Berkshire market capitalization of 514 million.

Berkshire had acquired 80.1% stake in Wesco there are more than 30 years. Charlie Munger, aged 86, is CEO of the group since 1984 and has parallel Vice-Chairman of Berkshire since 1978.