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.

European banking stocks were up, supported by the results of resistance tests conducted by the European authorities to restore market confidence.

Investors, who had initially criticized the methodology of stress tests conducted by the Committee of European Banking Supervisors (CEBS), believe that exercise helps alleviate fears about the solvency of banks.

Having suffered in mid-morning on concerns about exposure of Deutsche Bank in sovereign debt, the sector index Stoxx 600 European banks is again on the rise.

Around 12:50, the index has risen by 0.41%.

The Societe Generale and ING shares rose 2.97% respectively at 39.12 euros and 3.08% to 7.1280 euros.

The Santander, the first bank capitalization in the euro area remained stable at 10.11 euros after opening up to the Madrid Stock Exchange.

"The stress tests show that the French banks and European banks in general, are more truly threatened by a solvency risk," notes Simon Willis, NCB Stockbrokers analyst financial in a research note.

"It remains for banks to find sufficient levels of profitability, long-term effort that requires strategic reviews of activity and improvements in their organization," he says.

Analysts at Credit Suisse in turn emphasize that the publication of detailed exposure to sovereign debt will enable investors to better understand the needs to recapitalize banks and credit risks in the event of default on the debt of a State.

Of the 91 banks in the European Union subject to the tests, only seven property – five Spanish, one German and one Greek – have failed and could therefore be forced to raise 3.5 billion euros of equity.

Others were successful only just like German or Italian Deutsche Postbank Monte dei Paschi di Siena.

DEUTSCHE BANK ASSENTED

French banks BNP Paribas, Societe Generale, Credit Agricole and BPCE have all passed the test of successful resistance, which allows securities to outperform their benchmark.

BNP Paribas gained 0.86% to 50.22 euros, Crédit Agricole 0.94% to 9.44 euros.

The Franco-Belgian Dexia, which has also passed the tests, scores 2.6% to 3.39 euros.

In Germany, Deutsche Bank, which also passed the tests, is punished by investors for failing detailed its exposure to sovereign debt.The title and yielded 1.24% to 49.13 euros.

The Committee of European Banking Supervisors will also ask the German banks to explain why they did not give details Friday of their holdings of sovereign debt.

In conducting these tests, CEBS and the European Union have sought to ensure that large EU banks had sufficient capital to cope with a deteriorating economy would be worse than expected and new shocks.

Learning from the Greek debt crisis, the tests also incorporated discounts on the value of certain bonds held by banks.

Orpea announced Wednesday an increase of 16.3% of its turnover in the first half and confirmed its full-year 2012.

The manager of nursing homes and clinics completed a first half sales of 470 million euros, representing organic growth of 9.3%.

The group has enjoyed a growth of 17.2% in France, which represents the bulk of its sales.

"Orpea confirms with great serenity, its sales targets for the current year and for 2011 and 2012, respectively 960 million, 1.100 million and 1.225 million euros," says in a statement.

In the second quarter alone, sales rose 16.5%, giving an organic growth of 9.1%.

For the second half, the group, which had in March 28.073 beds, expects the opening of many schools.

The shares closed Tuesday at 31.2150 euros, giving a market capitalization of about $ 1.2 billion.

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.

France Telecom announced that it aims, through its new development plan over five years, 300 million customers by 2015 on all its markets, against 200 million today.

The telecoms group said in a statement it was also planning to hire 10,000 employees in France over the period 2010-2012.

The measures provided for in the new "social contract" of the group in France, intended to respond to the discomfort shown by a series of suicides of his employees, an envelope of 900 million euros over the same period, excluding the expected savings on the program part-time senior citizens and attrition.

"The group's ambition is to return as a spirit of conquest in international development, based on an acquisition policy unchanged, in which no operation 'transforming' is considered.

In emerging markets, it is particularly expected to double revenue within 5 years, has also informed the company.

France Telecom has also reaffirmed that "the conquest of networks" was "its core business."By 2015, it plans to invest two billion euros in the deployment of fiber optics in France, which ensure coverage of 40% of homes and being present in all parts of city by 2012, and all departments by 2015 (including three overseas departments).

The group reiterated its forecast of generation eight billion euros in organic cash flow per year in 2010 and 2011.

The good performance results of listed companies should trump concerns over the sovereign debt of the euro area and allow the CAC 40 index gaining about 1.6% throughout this year, shows a Reuters poll after the losses in the first half.

The benchmark index of the Paris Stock Exchange should close the year at 4000 points against 3939 end 2009, representing an increase of 9.8% from the close of Wednesday to 3642, according to the median estimates collected from 28 analysts and managers.

They have therefore been revised downwards from the level of 4,200 points set by the March survey.

The professionals see the ACC achieve 4200 points in mid-2011, 15% above their closing Wednesday.

Since 1 January, the CAC 40 fell 7.48%, partly due to concerns about the debt of states in the euro zone, whose magnitude is considered a threat to economic recovery.

"The financial situation of companies could target higher but it is true that the economy would suffer from too heavy indebtedness of some countries," said Christian Jimenez, a fund manager and president of Blue Diamond, which sees the CAC 40 4,000 points at the end of December and 4,200 in a year.

After a mixed first quarter, the CAC 40 was on a downward trend in mid-April, hit by fears of a spreading crisis of the Greek debt to other countries like Spain and Portugal.These concerns have also knocked the euro to its lowest level in four years against the dollar.

CONTRARY WINDS

The benchmark index in Paris has plunged nearly 20% in less than two months, as many stock markets around the world.But it has taken over the past two weeks, erasing some of its losses thanks to the relative calm fears about the debt and purchasing cheap stock whose valuation ratios had fallen to their lowest level for over a year.

Analysts and managers also consider the depreciation of the euro as a positive development for French firms, including of course those who make a significant portion of their sales outside the euro area.

But many professionals like to recall that all the headwinds blowing on the Paris Bourse are not appeased.

"There are negative surprises waiting on corporate earnings in an environment of austerity plans for economic growth and very low in the euro area," explains Philippe-Henri Burlisson, director of fundamental managements at Groupama Asset Management.

"Today the consensus forecast 20% increase in EPS in 2011 compared to 2010.This does not seem tenable and will be revised downward, which will result in falling stock markets. "

He added that the possibility of an increase in corporation tax in the context of measures of fiscal consolidation is a threat to businesses focused on the French market.

"The areas most at risk are those related to domestic consumption and those whose production facilities are relocated to escape under a higher tax burden," he adds.

Philip Henry sees Burlisson ACC 40-3400 points at the end of 3500 and mid-2011.

The WTO has ruled that some European financial aid granted to Airbus could be regarded as illegal subsidies and demanded the withdrawal of a portion of them within 90 days, according to a source close to an expert report .

Following this confidential report of a committee of the World Trade Organization made public Tuesday, the aid should theoretically disappear within three months are export subsidies, illegal in all cases, the source added.

Other grants, which, more generally, would undermine U.S. interests must also be removed but the WTO does not set a deadline for doing so, says the source.

This report of a thousand pages will not be released until weeks or months.A copy was sent to both parties involved.

But since the committee has not taken over the whole of American complaints, it is likely that the dispute between Airbus and Boeing is not close to being closed.

In any case, the opinion's expressed Airbus, who contends that 70% of complaints by the United States were rejected by the WTO.

"Airbus is convinced that this battle brought before the WTO (World Trade Organization) could take several more years," says the aircraft manufacturer."As with all trade disputes, resolution will be possible only through transatlantic negotiations.

PREVIOUS LITIGATION

Boeing welcomed the report of the WTO Committee, calling it "landmark decision and good news for employees of the aerospace sector in the United States who have faced decades of competition from Airbus heavily subsidized.

Grants are at the heart of the battle between the two aircraft manufacturers in the market of civil aviation, as estimated by the aerospace companies to 3.000 billion dollars (2.200 billion euros) over the next 20 years.

The United States accuses Airbus of getting a total of 205 billion dollars of soft loans and other aid from the France, Germany, Spain and the United Kingdom over two decades.

Thus, this dispute is by far the most important being that feed international trade.

The European Commission said it had no conclusions to be drawn immediately. "The contents of the report is confidential of course.One thing is certain: we must be careful not to draw hasty conclusions or to declare victory prematurely, "said John Clancy, spokesman for EU trade issues.

John Clancy added, as expected, we would have a clearer picture of the situation after the WTO has issued a progress report in the coming months, a contentious open this time by the EU against subsidies granted to Boeing.

The final resolution of the two procedures, which could still go through a negotiated settlement, will define the market rules of civil aviation, where Airbus and Boeing have order books totaling nearly 1,000 billion dollars in the years come.

The A350 OUTSIDE THE COUP

The Committee of Experts of the WTO had communicated to both parties a progress report in September. The report remained confidential for the most part, considered that the aid given by European governments to Airbus constitute export subsidies undue Had they said a source familiar conclusions.

However, according to source close to the report released Tuesday, the WTO panel ruled that such funding of future programs such as the Airbus A350 was outside the scope of its recent decisions, which implies that trade tensions with Boeing likely to last.

"The future financing of the A350 is in no way affected by the findings of the report submitted today," Airbus also reacted to this."Attempts by the United States to include the A350 in this complaint have been specifically rejected.

European and U.S. officials had given their own interpretation of the report before it is published.Washington said it proves that Airbus had violated the interests of American workers, while Airbus noted that the report was a step in a lengthy procedure.

The most likely outcome is that both sides will probably call each of their side, in two contentious open on both sides of the Atlantic, leading to procedures that could take years.

"Airbus and the EU member states now conduct a thorough analysis of the ruling in order to anticipate any possible review of the decision by the Appellate Body of WTO," Airbus said in its statement.

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.