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.

Nissan Motor announced Wednesday that he still thought to exceed its goal of worldwide sales this year despite fears about the U.S. economic recovery, but he also warned against the effects of the current strength of the yen on its results.

"The stronger yen has a big impact on us.We will adopt measures to minimize cons-impact, "he told Reuters Insider assistant general manager, Toshiyuki Shiga, outside the auto show in Moscow.

He said that the cons-measures envisaged included an increase in imports of automotive components.

"We still do not change our earnings prospects but there are headwinds: the raw material costs rise, the yen appreciates (…) We have taken into account in our budget to a parity of 90 yen per dollar He is now at 83 yen, "he added.

While investors are hoping for a response from the Japanese authorities to contain the strong yen, Nomura Securities estimates that a rise of the yen against the dollar would result in a decrease of 0.9% of current earnings of major Japanese industrial groups fiscal year 2010-2011, which ends in March.

Nissan, the third Japanese automobile manufacturer, hopes to increase its market share globally this year with a growth of about 8% of its sales to 3.8 million vehicles, thanks to new versions of its small city Micra / March in his "crossover" Juke and other new models.

"Based on current trends, we can exceed our goal of global sales (3.8 million vehicles) if the market remains stable but the U.S. recovery is not expected to change very positively," said Toshiyuki Shiga.

Moreover, the CEO of Nissan in Russia, Francois Goupil de Bouille said it expects to double sales of the manufacturer on the Russian market to 100,000 vehicles this year, while all the Russian car market could reach two million units, after falling in 2009.

In late July, the Japanese group, in which Renault owns 43%, maintained its forecast of annual results due to uncertainties surrounding the outlook for global demand, despite the publication of its best quarterly operating profit for over two years.

While the earnings season ends business in the United States, optimism about the earnings outlook for the third quarter gradually eroded as investors fearing that the weak demand reflected by the indicators Macroeconomic weigh on sales and margins of listed companies.

While only a handful of companies in the Standard & Poor's 500 has not yet submitted its accounts, the average growth index of profits in the second quarter stood at 38.4% compared to the corresponding period of the Last year, according to data from Thomson Reuters.

Such performance is unlikely to be equaled in the third quarter.The estimates, which are currently still at the level they were in early July, predicting earnings growth of 24.9% over one year.

"It could well be one of the last quarter for which the results are as good as mine.There is already, for example, they slow down or they're to move downward for 2011, "said Pankaj Patel, analyst at Credit Suisse in New York.

If 75% of the S & P 500 have exceeded estimates in the second quarter, compared to an historical average of 62%, many observers believe that profit margins could well have peaked.

Productivity has in fact declined by 0.9% over the same period, suggesting that companies may well find themselves unable to maintain their level of profitability.

ESTIMATES TOO OPTIMISTIC?

The average margin for the S & P 500 was 8.9% in April-June, against 6.2% a year earlier, according to Howard Silverblatt, an analyst at Standard & Poor's.

The disappointing economic indicators published in recent weeks, particularly on the employment front, began to be integrated into the course: the S & P 500 has a 0.7% drop since July 12, the start of the season results .

"There are many headwinds (…) and if you start to take them into account, we see that some numbers may be too optimistic," said Alan Lancz, president of Alan B. Lancz & Associates, an investment consulting firm.

The second part of the earnings season has been worse than the first.Of more than 2,000 U.S. companies announced their accounts, more than 70% have exceeded analysts' estimates during the first half of the period of publication, but this ratio fell to 66% by the end of the season, according to analysts at the company Studies Bespoke Investment Group.

For the third quarter, the estimates should not change much more until early October.

"Unless exceptional economic event (…) a major change in numbers is unlikely" for at least several weeks, Judge John Butters, head of U.S. monitoring results, Thomson Reuters.

The restatement of financial results of listed companies has been a major driver of the rebound in the S & P 500 from the lowest 12 years hit early in March 2009 and since then, the index rose by 58%.

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.

Several large European companies have released information Thursday surprisingly positive, triggering a sudden resurgence of investor confidence after months of pessimism fueled by the debt crisis and fears of an implosion of the euro area.

With these new found reassuring, have added good indicators for the month of July: further decline in unemployment in Germany and strong growth of economic sentiment in the euro area.

Economists point out however that this resurgence in good mood after the dark days of rumors of a default by Greece and other countries in the euro area should not be forgotten that economic recovery will be gradual given the austerity measures by several governments.

Among the big names who released Thursday, Publicis third global advertising agency, has raised its expectations for 2010 after having exceeded expectations in the first half to gain the favor of budgets and increased costs to its customers.

"Publicis has strengthened during the crisis," said chief executive Maurice Levy to the press.

"We really feel at the end of the economic crisis, or even having put completely behind us," he added.

These words are not isolated.

The Dutch group Randstad specializes in the interim, number two worldwide in its sector, said he did not see any sign of relapse of the economy.Companies are hiring, he said, particularly in Germany and France.

"GROWTH AROUND"

"We are seeing growth everywhere. Even in Greece, we see a normal development. We do not observe any signs of relapse," said Reuters chief financial officer, Robert-Jan van de Kraats.

The American Manpower, which carries the majority of its sales in Europe, acted last week did not see a downturn.

In the pharmacy, the French Sanofi-Aventis posted a higher quarterly earnings expectations – after Friday lowered its target EPS for 2010.His British rival AstraZeneca has posted higher profits.

The European chemical groups that have published their quarterly accounts have emerged Thursday globally strong results in favor of volume growth.BASF, the world first chemist, reported second quarter operating earnings adjusted for exceptional almost doubled to 2.2 billion euros, exceeding the consensus that gave it to 2.03 billion.

In Switzerland, Clariant has raised its annual recovery of the industrial sector and a weaker euro has boosted demand and that allowed him to reach a net profit in the second quarter, well below the consensus, however.

The German conglomerate Siemens Electrical has released an operating profit up 40% for its third fiscal quarter thanks to cost cuts and the weaker euro.

All these new feed more optimism among investors in Europe they appear a little less convinced of the strength of economic recovery in the United States.

The team responsible for global strategy at the UBS bank, raised its recommendation on Europe to "neutral", while she advised previously underweight assets of the region.

UBS said that the Ifo business climate in Germany, a closely watched index, in July recorded its biggest increase in 20 years, growth in gross domestic product in the United Kingdom grew at a rate twice higher than expected second quarter and the results of stress tests performed on the European banks have brought relief.

At the Deutsche Bank economist Gilles Moec wants cautious.

"There is no major change in the table macroeconomic background: we started to slow growth," said he.

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.

France is open to the entry of Japanese group Mitsubishi in the capital of Areva, said Prime Minister Francois Fillon.

"I told the Prime Minister of Japan its wish, the desire to see (…) strengthen the association between Areva and Mitsubishi for the realization, inter alia, a new reactor, the reactor ATMEA and I indicated In particular, France was open to input from Mitsubishi capital of Areva, said François Fillon during a trip to Japan, according to a text sent to the press.

The French nuclear expert working on the implementation of a proposed capital increase of three billion euros, which should mark the entry in its capital of international shareholders.The operation aims to secure funding for an investment program of nearly ten billion euros by 2012.

Sovereign wealth funds from Qatar and Kuwait, as well as Mitsubishi Heavy Industries, are anticipated to participate in this fundraising.

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 Paris Bourse is rising again on Friday after losing 3% yesterday, in expectation of monthly U.S. employment in the afternoon.

Around 9:15 am, the CAC 40 advanced 0.32% to 3350.67 points.

For its first meeting at the Paris Bourse, Edenred sign the largest increase of ACC (which will be removed Monday) and climbed 17.54% to 13.40 euros. For its part, accuses Accor the largest decline and yields 2.74%.

The bank bounce after being battered again yesterday. BNP Paribas wins 1.3%. The group announced Thursday a partnership with BPCE in consumer credit. Societe Generale gained 0.78%, 0.84% and Dexia Crédit Agricole 0.43%.

Sanofi-Aventis lost 0.52%.The group has refused to comment on reports that he would prepare an acquisition in the United States of at least 20 billion dollars.

Other major European markets also rebounded, London and Frankfurt gained 0.37% 0.42%. As for the European indices, the EuroStoxx 50 advance 0.49% and 0.36% Eurofirst 300.

The euro remains stable against the U.S. dollar resumed after about three cents a day and is trading around 1.252 against the dollar.

U.S. light crude oil was unchanged after its withdrawal on Thursday and is treated slightly above $ 73 a barrel.

The effort to reduce tax loopholes, covering five billion euros for the period 2011-2013, may be increased to 8.5 billion euros if the situation requires it, said François Fillon.

At a press conference, the Prime Minister said that "further efforts" would be decided by the government if growth is below its forecast.

The government expects 1.4% growth in gross domestic product (GDP) in 2010 and 2.5% in 2011.

It is too early to consider amending the forecast "for 2011, said Francois Fillon, but stressed that" a rebound "often followed a crisis.