News – Business & Economi

Merck reported a quarterly results better than expected thanks to strong demand for its treatment fighting against diabetes, arthritis or AIDS.

Excluding items, profit U.S. lab amounts to 86 cents per share while analysts polled by Thomson Reuters I / B / E / S had forecast 83 cents.

In total, net income fell to 752 million or 24 cents per share.In the second quarter of 2009, it was 1.56 billion or 74 cents a share.

Merck has taken control of his compatriot Schering-Plough in November for $ 41 billion.

For the year, Merck now expects EPS of 3.29 to 3.39 dollars per share, excluding special items, a slight adjustment from its previous forecast of 3.27 to 3.41 dollars.

In pre-market, Merck was down 2.2% to 34.29 dollars.

The World Cup effect past the French household consumption of manufactured goods fell 1.4% in June and fell 0.9% on the entire second quarter, posting INSEE.

The disappointing figures, well below expectations, suggest a decrease in consumption of all households in the second quarter, including services and supply, which would be a first for two years.

Twenty-three economists polled by Reuters predicted an average increase of 0.2% in June, with estimates ranging from -1.8% to +1.0%.Initially announced at 0.7%, May's increase was revised to 0.6% after a decline of -1.4% in April.

Since the beginning of the year, spending on manufactured goods have registered only two months of increases in March and May The decrease of 0.9% over the entire second quarter followed a 1.9% decline in first.

"The consumer was dynamic in the last quarter of 2009 was considerably weakened when it has always been the mainstay of the business in France.It is a real concern, "said Dominique Barbet, economist at BNP Paribas.

In June, it is the consumer electronics and clothing that have seen their sales drop, taking over auto sales down sharply in early years after the decline of the "scrappage".

After a jump of 6.4% in May, largely due to purchases of televisions before the World Cup in South Africa, the post of home furnishings fell 3.6% in June, biggest drop since November 2002.

For the sole property of consumer electronics, the decline was 3.7% after a surge of 12.4% in May

DROP IN THE CAR Dyked

Spending on textiles and leather have in turn fell 5.0% in anticipation of summer sales that began June 30, five days later than in 2009, but this schedule gives hope for a rebound in July.

For the quarter, the home furnishings rose 3.0% but textiles and leather down 2.8%.

The decline in car sales for its part was contained in June (0.0% after -0.3% in May and -9.2% in April) but the decline reached 8.4% in the quarter, after already a fall of 11.5% in the first quarter.

The 0.9% decline in spending on manufactured goods in the second quarter fears of a decline in overall consumption, for the first time since the second quarter of 2008 when it fell by 0.1%, said Dominique Barbet.

Purchases of manufactured goods account for about one quarter of total household consumption of goods and services, which is much less volatile statistics and published quarterly in the national accounts framework.

In the first quarter, it had stagnated (0.0%), lower than 1.9% of purchases of manufactured goods was offset by an increase in individual consumption of energy.

INSEE, in his memo on the economy published in June, sees yet remain stalled in the second quarter before a rise of 0.3% in the next two quarters.

"The stabilization of consumer sentiment was announced yesterday is quite encouraging, but the outlook remains weak and not with this level of consumption we can expect 1.5% or 2.0% growth," observes the economist of BNP Paribas.

"Household consumption in manufactured goods grows with a horizontal trend since the first half of 2007, although movements in the car drove the second half of 2009," said Philippe Waechter, director of economic research at Natixis Asset Management.

"In relation to a consumer confidence still low, reflecting concerns about jobs and taxes, we can not imagine a rebound coming and it will penalize significantly the growth momentum in the second half."

Philips has released better than expected results for the sixth consecutive quarter and raised its margin target, but not so far succeeded in convincing the market hoped for more.

Around 9:15 GMT, the Dutch electronics group fell by 2.91%, to 24.175 euros after plunging 4.3% in the first exchanges to form when the largest decline of the Amsterdam Stock Exchange.

Victor Bareno, an analyst at SNS Securities, said that the published results did not reflect "the significant increase that Philips had reported in previous quarters.

The group recorded a profit before interest, taxes, depreciation and amortization (EBITA) of 527 million euros in the second quarter, against 118 million euros last year and 486 million euros expected.

Its turnover stood at 6.2 billion euros and net profit to 262 million euros, higher than the 241 million euros expected.

Analysts had warned before the publication of Philips that investor expectations may be too large.

"The magnitude of the excess (of analysts' forecasts) compared to the previous five quarters is somewhat less strong," said Jan Hein de Vroe, an analyst at ING.

Eleven of 13 analysts surveyed by Thomson Reuters StarMine SmartEstimates lowered on average by 22.6% their earnings expectations over the past 30 days, while the stock has gained almost 7%.

The Dutch consumer electronics was confident of being able to exceed its margin target of 10% EBITA before exceptional items this year, while previously thought just to reach this goal.

The European leader in consumer electronics has reduced the cost during the crisis and the beginning of economic recovery, which helped to generate profits even in difficult times.

Philips has hoped to exceed its savings target on its structural costs in 2010 to 700 million euros.

Most members of the Federal Reserve have lowered their growth forecasts at the last meeting of the Monetary Policy Committee of the Fed FOMC minutes showed 22 and June 23 on Wednesday.

They also felt they should be prepared to take further steps to support the economy if economic conditions continue to deteriorate.

"Drawing the consequences of changes in the financial context, most participants have slightly lowered their forecasts for growth," the minutes show.

"The Committee will consider whether to adopt more supportive measures if the weather deteriorates."

Meanwhile, the Fed will continue to evaluate the methods currently available to it to drain a huge volume of loans it has injected into the financial system, says the U.S. central bank.

The Fed officials have lowered their growth forecasts for 20,110 to a range between 3% and 3.5%, whereas it previously predicted a rise in gross domestic product from 3.2% to 3.7% in May last.

The Federal Reserve expects the unemployment rate between 9.2% and 9.5% in the fourth quarter, more or less what it provided in its previous estimates.

The reflections of the Fed have weighed on the Treasury bill yield to thirty years, investors anticipating a continuation of interest rates at current levels until at least the end of the year.

"This suggests that rates will stay low for long enough and, if necessary, the Fed will try to invent new ways to support the economy," said Ward McCarthy, chief economist at Jefferies & Co.

The general tone adopted by the Fed is tinged with caution, the Fed merely saying that the recovery is underway.

It reiterated its promise to keep interest rates at a level close to zero for an extended period.

The Paris Bourse is stabilized in early trading Monday, after making its biggest weekly rise in a year last week.

The sentiment in the markets is nevertheless supported by the publication of a better than expected trade surplus in China and the prospect of good results season, which begins tonight in the U.S., with Wall Street after Alcoa.

Around 9:32, the CAC 40 index showed a decline of 0.14% to 3549.44 points, after opening at 3562.70 points (0.23%) and increased by 6.16% last week.

Banks weigh on the trend with a decline of 2.5% of Dexia, Credit Agricole 1.7%, 1.6% of BNP Paribas and Societe Generale 1.3%.

Zodiac Aerospace wins 1.85% to 40.520 euros after rejecting a merger offer from Safran (-1.7%).

Seb largest increase SRD wins 5.8%, while Goldman Sachs raised its recommendation from neutral to buy.

Other major European markets are closely irregular: London lost 0.02% while Frankfurt gained 0.12%. As for the European indices, the EuroStoxx 50 yields 0.15% and 0.11% Eurofirst 300.

The Euro drops to 1.257475 dollar against 1.2639 the day before the end of the day, while a barrel of U.S. light crude yields 52 cents to 75.57 dollars.

Marc Touati, Associate Director of Global Equities

This topic is more socially and economically. In the current crisis, it is even very controversial, very "dangerous". We must therefore take tweezers in the formulation of the analysis to avoid offending the spell …

I. The model of solidarity to the French: the world's best

Originally the solidarity model, also called French social model may appear as the best in the world. Its basic principle is: high public spending and high tax burdens, but in exchange, through redistribution, greater solidarity and hence less inequality, less unemployment, less poverty and more comfort- be economic.

II.This model of solidarity no longer works

Sadly, the last ten years, this model is fraying, as far as public spending increases more and more (56% of French GDP in 2009), the tax burden is among the highest in the world. Despite this extravagant strategy, growth, structural decline, unemployment is around 10% sustainable, poverty rate increases (14% of French people living below the poverty line), including the widening inequalities in income and health and funding of the retirement pay is more assured. So the French model of solidarity is more effective.

Conclusion: how to find a more effective model

This is where the controversy settled: that it must also increase public spending and taxes.If this solution is certainly easier, it is not credible: it no longer works for 20 years and is a runaway. We must therefore stop veiling the face: the only way to make solidarity in France resides in the ability of the latter to the high growth. To achieve this, we must reduce the tax burden for all, make it as fairer, while lowering the inefficient public spending, including operating expenses.

Jean Paul Betbeze, director of studies of the Credit Agricole

Introduction: The word solidarity is one of the most important part of our vocabulary, one of the most sensitive too, because it is at the crossroads between economic and social. He asked how "to society", that is to say, how to combine growth, efficiency, distribution, justice.The issue of solidarity is today more acute because the growth is not at the rendezvous. This leads to questions about growth (innovation, the company …) and the terms of the distribution of wealth, with the idea that certain expenses, sometimes called Solidarity, were too high and / or have not contributed to growth, as might have been expected.

I. The French social model, an exception

Solidarity meeting in fact a set of situations. For one third of expenditure, are shocks that have affected people, health first, another third are economic shocks, mainly unemployment and its consequences for a third and third is the evolution costs associated with aging. Shock people, economic shock and the shock of aging are the sources of expenditure solidarity.It is necessary to study their relevance, legitimacy and, where possible, their effectiveness. Looking in effect say that young people can not but be struck by the solidarity they restricted themselves to considering. The family, themselves and their friends and cronies. Altogether, they and their entourage. This sends the idea, positively, that the best solidarity begins at home and his family (training, job search and lifestyle), but also that state support, social activities are increasingly counted in First the conditions of retirement and old age support. Truth and realism.

II. There can be no solidarity without growth

So we must find ways to live together solidarity and growth, after some excesses were committed and at the inability to continue as before.It can therefore be, in any event, solidarity without legitimacy, without transparency, without verification. That is no explanation for it, without penalty to the excesses or misrepresentation and – increasingly – without education, training, to avoid any shocks. Economic solidarity corresponds to the current difficulties of the job. Unemployment is the brand, but also retirement (since the nonworking are partly taken into account). But support to individual entrepreneurs (with tax benefits) are also a de facto solidarity. A total of solidarity that we measure is often posterior to the problem, it must be proactive. It must be less than a correction, compensation of a preparation: training throughout life support mobility.Solidarity in the event of sickness is also essential, but it can not avoid the growing support in people themselves. Lifestyle, sports, medical conditions are independent of a reduction of medical risk and provide an old age happier, longer and less dependent on solidarity.

Conclusion: Overall, we must squarely address the solidarity at the intersection of economics and welfare, by making clearer the economy (transparency, fairness, efficiency), the general benefit of society.

The chairman of the Democratic Movement (Modem) Francois Bayrou late Monday about the case Bettencourt, who has "not observed" in France "the glass wall that should separate the private affairs of public affairs" criticizing the "mixture".

See also: Dangerous Liaisons Eric Woerth and Liliane Bettencourt

"Historically, for years in France we did not meet the glass wall that should separate the money matters, private affairs, public affairs," said Mr Bayrou on RTL.

"There is too much complacency, we are constantly in the process of accepting that there is a immixion a mix" between public and private sectors, emphasized the member of the Pyrenees-Atlantiques."There is caution needed when you are in a great public service," he also said about Labour Minister Eric Woerth whose wife works for Florence Liliane Bettencourt.

Pirates of plays published by the website Médiapart Woerth suggested that the couple would have been aware of alleged tax evasion of the heiress of L'Oreal.

In an interview Sunday Mediapart, MEP Eva Joly (Europe Ecology), former judge Financial, said that Mr. Woerth should resign. "It is not unusual to ask a minister to be perfect! (…) In a normal democracy, the resignation is required," she said.

On Saturday, the deputy Arnaud Montebourg PS was also found on the website of the Express that keeping the government of Mr Woerth "prevent that the truth. "We have a budget minister (Mr portfolioWoerth May 2007 to March 2010) at the same time treasurer of the UMP, whose wife works to organize the tax evasion of Mrs. Bettencourt, "he was accused.

A virulence forced Eric Woerth-cons to attack the next day. "Now, enough is enough!" My wife will file a complaint against Mr. Montebourg (…) We can not say anything on anyone, "he blasted the" Grand Rendez-vous " Europe 1-Le Parisien.

"I do not know the finances of Mrs. Bettencourt, I have no information on any tax evasion and I gave no instruction of any kind whatsoever to the tax office, he has also defended in the Journal du Dimanche.

"My wife worked for three years in the company that manages the assets of Mrs Bettencourt. It is not an employee and CEO of this company," said Mr.Woerth, adding that "it's been over a year she wants to leave, of course she is going to leave for reasons of personal disagreement."

Labour Minister, who leads the pension reform, received support from his colleague of Higher Education, Valerie Pecresse, itself cited in bootlegs. She saw "an attempt at destabilization.

On the side of the Elysee, the special adviser Henri Guaino said he imagined "not a single moment" Eric Woerth "may have committed a wrongdoing." "In any event, Ms. Bettencourt has offshore accounts or not and whether or not it tax evasion, I do not see how this relates directly to Eric Woerth," he said on I-Télé .

The gas price for individuals is expected to rise 9.5% on 1 April, Wednesday said a source familiar with the matter in accordance with the application of a new method for calculating their evolution. The Commission for Energy Regulation (CRE) is expected to meet Thursday to consider a proposal to this effect of GDF Suez, the source said, confirming a report in the daily Le Figaro. CRE Suez and GDF have declined comment.

Under the new rules for setting regulated rates, intended to make developments more predictable, the government sets an annual schedules determining the framework within which the price of natural gas. GDF Suez is then responsible for proposing increases or decreases in rates within this framework.CRE approves or rejects the proposal submitted by the private group through a binding opinion.

The role of the CRE is limited to verifying the correct application of the formula for calculating the cost of supply of GDF Suez, which takes into account the level of crude oil prices, oil and exchange rates. The proposed tariffs are regulated mainly by GDF Suez (ex-Gaz de France) but also by 16 local suppliers, such as Gaz de Grenoble, Energy Services Occitan, the Municipal Board of Réole, etc..

List of values to follow Wednesday on Wall Street.

* ADOBE SYSTEMS. The software company announced Tuesday the results of the first quarter of its 2009-2010 fiscal year better than expected and also reported predictions of the second quarter exceeded expectations.

In meeting pre-market trading, the title leapt from 6.1 to 37.35 dollars after closing Tuesday at 35.22 dollars.

* LENNAR.The fifth U.S. real estate developer has significantly reduced its quarterly loss, and assured to be on track to return to profit this year.

The group based in Miami (Florida) recorded a loss of 4 cents per share for its fiscal first quarter, against a deficit of 98 cents per share, a year ago.

In exchange for pre-market title, which closed Wednesday at 17.06 dollars, advanced by 3.8%.

* GENERAL MILLS.The food group has published on Wednesday quarterly profit beat expectations, helped by sales of its new products such as Cheerios cereal Chocolate and attention paid to the company reducing its costs.

General Mills, which also produces the Yoplait yogurt, posted earnings per share (EPS) of 96 cents for its third fiscal quarter ended February 28, cons EPS of 85 cents a year earlier. Excluding this exceptional earnings were 97 cents, while analysts had forecast EPS of 93 cents.

Closing price: 73.57 dollars

* DELL.The world number three PC is a turnover of five billion dollars in China in 2010, said Wednesday its CEO Michael Dell.

Closing price: 15.22 dollars.