News – Business & Economi

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 Nikkei closed up 0.95% Friday, pending action by the Japanese authorities to stem the rising yen.

The Nikkei index closed at 8991.06 points and the broader TOPIX, took 0.96% to 819.62 points.

At midday, the Nikkei had yet descended to a lower conference room of 16 months.

According to Kyodo News, Japanese Prime Minister Naoto Kan was to hold a press conference Friday to outline the measures taken by the government to control the sudden appreciation of the yen.

The exporters, who are particularly affected by the rising yen, have therefore taken the colors, Honda Motor TDK and Advantest winner respectively 1.63%, 2.79% and 1.72% at closing.

The U.S. markets have opened higher on Thursday, reacting positively to an unexpected improvement in the labor market in the United States.

A few minutes after the start of trading, the Dow Jones gained 0.28% to 10,087.98 points, the Standard & Poor's 500 index 0.38% to 1159.29 points and the Nasdaq Composite 2148.66 0.33% points.

The markets were reassured by a larger decline than expected enrollment in weekly unemployment in the United States during the week to August 21, at 473 000 504 000 cons last week.

As for values, Dell noted Thursday his company bid on the data storage 3PAR to 24.30 dollars per share, a superior proposal to that presented by Hewlett-Packard.The IT group has indicated that the Board of Directors 3PAR has accepted his offer.

Titles took Dell and HP respectively 0.8% and 0.75% at the opening, while the title 3PAR lost 1.9%.

The trade deficit of France fell to 3.796 billion euros from 5.179 billion in June (revised) the previous month, thanks to increased exports find their level two years ago, according to data CVS / OCJ posted Friday by Customs.

Throughout the first half, the deficit increased to 24.544 billion against 22.928 billion during the first six months of 2009, a decline due mainly to the increase in energy costs.

The deficit for June was better than expected – economists polled by Reuters expecting an average of 4.5 billion, the lowest estimate is 4.0 billion – and is explained by an increase of 10% exports.

The balance of May has additionally been revised downwards to 5.179 billion 5.500 billion instead of an initial estimate announced a month ago, but nonetheless the highest since October 2008.

Exports FOB data CVS / CJO jumped 10.2% to 33.016 billion euros in June against 29.948 billion in May, reaching their highest level since August and September 2008.

Imports were up to their side of 36.812 billion euros against 35.127 billion the previous month.

In the second quarter alone, exports rose 2.6%, after rising 5.1% the first three months of the year, while imports rose 7.4% after +2.1% within the scope of energy purchases.

SALES OF AIRBUS straighten

Improved trade balance in June was primarily due to exports of transport equipment. France has sold on July 26 Airbus which it earned 1.719 million euros against 19 aircraft to 1,050 million euros in May, combined to deliver a packet.

"The sales of transportation equipment, which fell 1.4 billion euros in May, are better than recover.Outside major contracts, industrial exports are also dynamic, "according to Customs in their commentary.

"Throughout the first half, the resumption of trade undertaken in late 2009 has intensified, not found for all the pre-crisis levels," added the administration.

Of these six months, exports rose 5.9% to 187.0 billion euros, compared with an increase of 3.9% in the second half of 2009.

After two semesters of decline, aerospace sales have rebounded by 10.4%, France has supplied over the period 141 Airbus worth 9.4 billion euros.

Automotive exports have, however, increased only 4.3% after rising by 19.5% in the previous semester when they had received "car scrapping" in most European countries.

The mechanical and electronic equipment, pharmaceuticals, intermediate goods (chemicals, metals), agricultural products and energy products have also been well directed, according to Customs figures.

REBOUND AMPLIFIED

Imports have increased their share from 7.4% in the first half, after +2.1% in the previous six months, mainly due to the depreciation of the euro has made it more expensive energy purchases paid in dollars.

The energy bill was so weighty $ 23.2 billion against 20.1 billion in the second half of 2009.

Excluding energy, the increase in imports is only 5.6%, after +2.2% in the second half of 2009, note Customs.

If it has increased the energy bill, the weaker euro has instead favored exports that show a 10% increase compared to the first six months of 2009.

"In the first half of 2010, the French foreign trade has amplified the rebound started in late 2009 by taking advantage of the upturn in world trade and strong demand from emerging countries," said Anne-Marie Idrac, Secretary of State Foreign Trade, in a statement.

"Exports rose to virtually all trading partners, with particular vigor to China or Brazil," she adds.

Towards Germany, the largest trading partner of France, exports grew by 8.5% in the first half.Those to Spain, however, fell 1.4%, reflecting the difficulties of this country is, after Germany and Italy, the third biggest market for French exports.

The press kit released by Bercy reported encouraging outlook for the rest of the year.

"France will continue to benefit, assuming a stabilization of the exchange rate of the euro, an enhanced price competitiveness, the effects on sales will be realized fully in the second half of 2010 and 2011, especially to large emerging markets, "it reads.

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.

Industrial production in France has strongly rebounded in May, rising 1.7% after falling 0.5% the previous month, according to data CVS-CJO published by INSEE.

Twenty-two economists polled by Reuters had expected an average growth of 0.4% of overall industrial production in May, with estimates ranging from 0.0% to 0.9%.

The April figure was revised to -0.5% -0.3% instead announced a month ago.

Manufacturing output, that is to say, outside energy but with food included, rose 0.5% in May after a revised rise of 0.3% (+0.4% in the first estimate) the month precedent.

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.

European shares ended Friday in a disorganized but the pan-European FTSEurofirst 300 index displays eighth consecutive day of gains.

The Paris Bourse closed on a very slight increase from 0.11% to 3687.21 points on Friday, again its eighth consecutive increase, and shows a gain of 3.770% for the week. In ten days, the CAC 40 bounced 10%.

The index of key European values close to him as a fourth consecutive week of gains, with a gain of 2.53% in five meetings, in a context of a rebound in world stock markets.

The MSCI World Index shows indeed ninth consecutive day of gains.Investors are showing some renewed risk appetite, encouraged by the successful auction of debt on the eve of Spanish and French and European Union decision to extend the "stress tests" to European industry as a whole.

As for European values, the bank has supported the ongoing titles Societe Generale, Credit Agricole and UBS gaining 1.72% and 6.06%.

The title has sold BP 0.63%, after Moody's lowered by three levels of the credit rating of the oil company, which also seek to borrow seven billion dollars to seven banks.

Sales of new cars in France have continued to rise in April, to 1.9% from April 2009, but at a much more slowly, reflecting an impact of declining car scrapping and leaving the uncertainty about the rest of the year.

"This figure is normal. We see a gradual reduction of the effects of scrappage" observes François Roudier, spokesman for the Committee of French car manufacturers.

The spokesman noted "a decline in registrations and orders on new line", small cars that benefited most from the car scrapping. Meanwhile, "we see a rise in average range on some models," he adds.

Carlos da Silva, an analyst at IHS Global Insight, a judge even when the result of April "a little surprising" and speaks of "semi-surprise"."The compact segment is doing rather better than what we expected" while "small cars to fall again mechanically," he notes.

Moreover, "manufacturers have continued to put much money on the table to try to compensate" the premium reduction. They have indeed offered to their customers numerous discounts and promotions. In this context, May will be "a little month of truth," said Carlos da Silva, who expects a decline it expected in April.

"I do not see how that can withstand much more, plus there is not really new models," he said.

French manufacturers are considering a European market decline 9 to 10% this year.1,000 euros last year, the scrapping bonus increased to 700 euro from 1 January, but for vehicles ordered before December 31, the premium remained at its former level for deliveries until the end of March.

This measure was prompted a boom in orders at the end of the year, registrations recorded in the first quarter up 17%. In the first four months of the year, the increase was 12.9% compared to the same period of 2009.

The Minister of Industry Christian Estrosi welcomed in a statement of "the good performance of the market", which "demonstrates the effectiveness of the government strategy of gradual withdrawal of the scrappage scheme".

On 1 July, the scrappage decline further, to 500 euros.

The month of April has been more favorable to French brands, up 8%, as foreign brands, down 4.9%.Of the 190,986 new cars registered last month, the French brands accounted for 56.1% of the market.

The increase was 17.2% for the Renault group and 7.3% for PSA Peugeot Citroen. At Peugeot, we judge that "the effect of scrappage continuous" and "concerns an order for two 206 + and 207," the Director of Commerce France, Olivier Veyrier, said in a statement.