International Business News

BP announced the sale for 1.9 billion dollars (1.44 billion euros) of its Colombian subsidiary to a consortium of the Canadian Talisman Energy and Ecopetrol, the Colombian national oil company.

This sale is the latest of British Petroleum, which has announced plans to lift a thirty billion through asset sales to offset the costs of the oil spill in the Gulf of Mexico.

BP has already sold last month to seven billion dollars of assets in the United States, Canada and Egypt, the American Apache.It also plans to divest its assets in Pakistan and Vietnam, which could bring him $ 1.7 billion, in the opinion of analysts.

The Kuwait's oil minister said Tuesday that the national carrier Kuwait Petroleum International might be interested in certain assets from BP.

The emirate's sovereign wealth fund owns shares in British company to the tune of 1.75% and on Monday denied media reports that BP had asked him to reach 3%.

BP announced last week a charge of $ 32.2 billion on its second quarter results, due to the spill, but analysts believe the final slate will be much higher.

The International Monetary Fund and the European Union have suspended Saturday program evaluation assistance granted to Hungary in 2008 to enable it to overcome the financial crisis, noting that tough measures must be taken to reduce deficits.

The suspension means that consultations, as the assessment has been completed, Hungary can not access funds that have not yet been used for the loan of 25.1 billion euros earmarked by EU and the IMF.

The negotiations were supposed to be completed by early next week.

According to analysts, the forint, the national currency could fall sharply at the reopening of markets on Monday.The loan from the EU and the IMF now serves as a safety net for Hungary, which is financed on the markets since the end of last year.

"In an environment of increased scrutiny by the markets of government deficits and debt levels, the budget deficit targets previously announced – 3.8% of GDP in 2010 and less than 3.0% of GDP in 2011 – remains a appropriate basis for the necessary process of consolidation and debt sustainability (…) but additional measures will be taken to achieve these goals, "said the IMF.

The new center-right government, based on the April elections, said he wanted to extend the current agreement with the EU and the IMF until the end of 2010 and obtain a new agreement, as precaution, for 2011 and 2012.

The Minister of Economy, Gyorgy Matolcsy said clearly that the government wanted to resume negotiations with its international creditors.

"The government will obviously continue discussions with international organizations, including the EU and the IMF," he said in a statement taken Saturday by the news agency MTI.

'DIFFICULT DECISIONS'

Christoph Rosenberg, who led the IMF delegation to Hungary, said that the international organization requested more details on the budget next year."When we come next time, unless we were coming next week, the government has consistently advanced the budget 2011 and budget will be very important," he told Reuters.

He also said that the IMF had not discussed with the Hungarian authorities for a new funding agreement for 2011 and 2012.

In a separate statement, the EU has indicated that the conclusion of the evaluation had to be postponed and that further consultations would be held.

"Hungary has returned on a path of positive economic growth and record today one of the lowest gaps in the EU.I welcome the commitment of the authorities towards the 2010 target of reducing the deficit, "said Olli Rehn, European Commissioner for Economic and Monetary Affairs.

"However, the correction of the excessive deficit from next year will require difficult decisions, including spending," he added.

Hungary needs to maintain the safety net that provides the loan of the EU and the IMF to maintain the confidence of the markets from which it borrows.The country remains vulnerable to high public debt, which represents 80% of GDP, and its dependence on foreign financing.

"If we do not have the safety net international creditor, it will penalize us where we are most vulnerable," he responded Zsolt Kondradt, analyst at MKB Bank, adding that a decline in the forint is expected Monday.

The Hungarian currency was trading at 282 forints per euro Fridays.

Romania has already had to make tough decisions last month to ensure the disbursement of IMF aid and reassure the markets.

Home sales in Spain rose for the fifth consecutive month in May, according to data released Monday by the Institute of Statistics, a sign of market stabilization.

Housing sales rose 11.9% in May on a year to reach 37,787 units. In one month, the increase is 10.1%.

The Spanish housing market, which had been boosted by lower borrowing rates over the past decade, has collapsed since the start of the financial crisis, affecting the full brunt of the Spanish economy.

At the height of the housing boom, more than 80,000 homes were sold every month.After the bubble burst, this figure fell to touch a low of 29,178 in April 2009.

Despite the recent rebound, the experts polled by Reuters believe that prices will continue to decline in 2010 and during much of 2011.

EADS submitted a bid under a contract for refueling tankers for the U.S. Air Force, according to a source familiar with the matter.

EADS North America and Boeing are competing in this market of 179 aircraft, which could reach 50 billion dollars (39.5 billion euros).

Boeing is expected to submit an offer by Friday, the deadline for submission of tenders.

EADS had no comment.

Fauchon intends to accelerate its development in the Middle East and make tea and chocolate its two main export products, having weathered the crisis and be able to break even.

With a turnover growth of 10% during the 2009-2010 fiscal year ended March 31, to 145 million euros, the luxury grocery relatively well through the crisis thanks to its business functions – which account for 18% of sales and grew 30% over the year – and thanks to Internet sales and business gifts which jumped 40%.

"I think the luxury food took its dimension of sharing and fun available," said Isabelle Capron, CEO of the company, in an interview with Reuters.

In times of crisis, "it differs less the purchase of a flash than a Ferrari," she smiled.

For the current year which started badly with the fall in April air traffic caused by the eruption of a volcano in Iceland, Isabelle Capron said it expects growth of 8%.

In terms of results, the company has managed to balance operational in 2009-2010 and is an operating profit of approximately 5% of sales within three years.

After a slow decline, the famous luxury shopping has been saved from bankruptcy in 2004 by Michel Ducros, company president – son of Gilbert Ducros, founder of the spices of the same name – which has acquired 90% the balance being taken by the management of the company and some private investors.

RENOVATION

Fauchon, shops and aging product line, then made a major restructuring led by its new CEO, an expert on marketing and advertising in schools formed the American Colgate.

"We renovated sites, product lines, image, teams, information systems (…) Everything has been reworked," she said.

Convinced of the power of a brand embodying the 120 years of French luxury food, Isabelle Capron initially wanted to give a new Fauchon strong visual identity made in black, white and fuchsia, while keeping the logo the effects of mirror from the 1930s.

"It should be quite radical and very visible," she says.

The renovation of the store's historic Place de la Madeleine in Paris, this revival has embodied the style codes closer to the fashion of the store.

Black lacquer, pink mirrors and tinted windows, the two shops of the place have also seen their product lines fresh completely redesigned.

To facilitate the transition in its stores, Fauchon opened a bakery and a bar area with caviar, pastries modernized with "collections" of flashes and bright colors for buttons or winks at the news (home sold lightning rainbow on the day of the "gay pride").The catering products are being reviewed while offering self-service will open in September.

If the activity is divided equally between the fresh produce and groceries, the latter, which requires less manpower, offers higher margins and can easily be exported.

TEA AND CHOCOLATE IN FIRST LINE

In the grocery store, what are tea and chocolate (which each accounted for 18% of group sales) that are the subject of attention and should be the engine of international growth.

"We invest in tea and chocolate, our two major providers of business growth and profitable recurring," said Isabelle Capron, inaugurated Monday a new line of chocolates numbered dubbed "Shock Made in F" produced in collaboration with chocolate Pascal Caffet, Best Worker of France in which Fauchon took 33% stake.

Fauchon carries today, 25% of its turnover in France and 50% in Japan, where it is established for decades through a partnership with department store chain Takashimaya but where growth prospects are limited.

To grow, the company looks to the Middle East, which accounts for 15% of its sales and where it intends to open over 20 stores in the next two years, in sales that could reach 30% of turnover within five years.

The appetite of this region in the world for sweet foods makes an ideal target for the confectionery and chocolate.

Besides France, Japan and the Middle East are the only regions in the world where Fauchon has a local manufacturing enabling it to offer fresh produce.Elsewhere, shops selling grocery products that can be exported.

BACK IN CHINA AND THE UNITED STATES

After a setback in China, where the company recently closed a large store opened in Beijing in 2007 – too large, misplaced – Fauchon has opted for a model shop "gifts" to smaller area. She has just opened one in Hong Kong and said to be in contact "advanced" with partners for openings in mainland China.

United States Fauchon also suffered a defeat and closed its shops in New York but wants to expand free "if you can find the right partner".

Russia, very hard hit by the crisis, also has the longer term, among the strategic development zones of Fauchon.

Oracle has announced a net quarterly profit above expectations, this suggests that the recovery of IT spending continues with companies investing in large infrastructure.

The specialist said that professional software maker Sun Microsystems servers – acquired in January while he was in deficit – helped, excluding special items, totaling more than $ 400 million operating profit.

"Oracle is ahead of its roadmap," said an analyst with Piper Jaffray.

The company earned for the fourth quarter of fiscal year 2009-2010 ended May 31 net income excluding items of $ 0.60 while analysts on average expected $ 0.54, according to Thomson Reuters IB / E / S.

Turnover increased 39% to $ 9.5 billion, a level in line with market expectations. Oracle has acquired Sun for 5.6 billion dollars.

"We did better than expected both in terms of sales as net income," said Jeff Epstein, CFO of Oracle, said in a statement.

Sales of new software rose 14% from a year ago to $ 3.1 billion.Three months ago, Oracle had told anticipate a sales growth of between 3% and 13%.

The Oracle President Charles Phillips said the group took "significant market share" in its German rival SAP software in business management.

After finishing down 2.03% to 22.22 dollars on Wall Street, the title of Oracle jumped more than 4% in trading after-hours trade.

The action, however, declined by some 16% since it hit a high of nine in mid-April.

Sales of new homes in the United States has declined more sharply than expected in May and reached a record low with the end of a tax credit related to real estate, official statistics show, adding to fears a slowdown of economic recovery.

These sales fell by 32.7% to 300,000 annualized, against 446,000 (revised) in April, ending two consecutive months of increases.

This is their biggest decline ever in percentage since the launch of this statistical series began in 1963.

Economists and analysts polled by Reuters on average had forecast 410,000 annualized sales figure of 504,000 after the originally announced for April.

Since the buyers had to sign a contract later than April 30 to qualify for federal tax credit, which expired, observers expected a slowdown in new housing last month.

The median sales price of new homes fell 1% between May and April fell to 200,900 dollars. In one year, prices fell 9.6%, evening their biggest drop since July 2009.

Contrary to the myth of the victory of 1998, a course team of France in World Cup-2010 has little chance of boosting consumption and cheer to the French morose for months, analysts said.

"Given the past, there is little chance that there is an impact on the morale of the French," explains Benoit Heitz, chief of the division at INSEE cyclical synthesis. While in 1998, "there was an improvement in consumer confidence in July, when the victory of France, but the improvement trend existed before. At best, it would have amplified the trend already existing" he continues, noting that these good results were anyway mostly related to the fact that the competition was held in France.

But this year the World Cup takes place in South Africa and French morale was already at half mast.This indicator summarizes the views of households on the economic situation and declining steadily since the beginning of the year and has dropped 8 points since January. And the chances of a reversal through the course of the France team is minimal.

"Only a victory in the final could possibly have an exhilarating effect, otherwise it will be marginal," said Alexander Law, chief economist at Global Xerfi. "If we win, it will have a positive impact on consumer confidence, but it is only on their morale.And only if we win, if we lose the first round or even the final, "added Nicolas Bouzou, an analyst at Aster.

Impact on sales of TVs

Whether this improvement would last, "it depends much more on attitudes to austerity plan that results in World Cup," says he, in all cases ensuring that the course would have the Blues no impact on consumption. "At the macro level, it has no impact," he insists.

"Often they say that the victories of 1998 and 2000 have generated growth but this is not the case, growth was already there, also notes Marc Touati, director of Global Equities. "The victory is the icing on the cake.The route of the France team can only be the icing on the cake, and if it does not cake …", continues the analyst.

The World should certainly have an impact on sales of televisions, which France won or not. The GfK account and an increase of 200,000 to 250,000 pieces by this event that will invigorate even more a market already in great shape (8.7 million sales in 2010). Good results could also French "boost sales of textiles, with the Blues jerseys, notes Alexander Law. "But not to be extremely high, especially since the team of France does not enjoy a good symbol of love," he tempers.

An early elimination should not have any effect on consumer sentiment. "The team has qualified in pain, his popularity rating has rarely been so low, so people just say + they knew they were unable +.Unfortunately, the French economy has disadvantages much heavier than the poor performance of its sports teams, "said Alexander Law. Failure" could generate a movement of depression, but temporary, "said Marc Touati of his side.

Further reading: The families that take in France