International Business News

U.S. stocks finish higher again Friday, the publication of positive indicators for the economy continuing with the monthly figures of employment considered reassuring.

The Dow Jones gained 127.83 points or 1.24% to 10,447.93 points, while the Standard & Poor's 500 took 14.41 points or 1.32% at 1104.51 points.

The Nasdaq Composite was awarded 33.74 points or 1.53% at 2233.75 points.

For the week, the Dow gained 2.9%, the S & P 3.8% and Nasdaq 3.7%.

The S & P index fund managers, has realized its best weekly performance of the past eight weeks.He did not rebound above 1,100 points since Aug. 11.

For the Dow Jones and Nasdaq, it is their best week in the last six.

Equity markets had fallen sharply in August, investors fearing a recession in the fallout world's largest economy.However, information released Wednesday, showing stronger growth than expected in the manufacturing sector in August, sparked a rebound in stock market values to post their biggest gain in eight weeks.

New indicators, including real estate, went in the same direction Thursday and the rebound continued Friday with the announcement of monthly figures of employment.

THE FINANCIAL SOUGHT

The U.S. economy still has destroyed jobs in August for the third consecutive month, but significantly less than expected.In addition, the private sector has created more jobs than expected.

In this context, the announcement of a greater than expected slowdown in growth of activity in the services sector in the United States in August has left investors of marble.

"Equity markets were considered non-negligible probability of a relapse there is now an output of this fear factor," said Mike Dueker, at Russell Investments.

"The recovery will be slow but at least we can count on. This should provide a wind stern values for the remainder of the year."

Sensitive sectors such as business cycle and financial technology have been particularly sought after. The S & P financials gained 2.15%.Goldman Sachs was awarded 5.4% to 147.29 dollars.

Home Depot, the world of DIY and interior design, has gained 1.5% to 29.85 dollars, boosting her up yesterday.

Take-Two Interactive soared 7.34% to 9.50 dollars after the publication of a quarterly profit – investors awaited a loss – and raising expectations of the group.

Campbell Soup has however declined by almost 3% to 36.21 dollars, investors punishing quarterly sales below expectations and a revision of objectives.

Oil prices had closed up on Friday for the third consecutive session on the New York market, as investors were reassured by statements by Fed Chairman on possible new measures to support the economy if necessary.

The October contract on the U.S. light crude closed up 1.81 dollars, or 2.47%, to 75.17 dollars a barrel on the New York Mercantile Exchange.

At the time of closing in New York, a barrel of Brent crude advanced $ 1.70, or 2.27%, to 76.72 dollars.

On the whole week, the contract on crude grew by $ 1.71, or 2.33%, signing up after two consecutive weeks of declines.

The Federal Reserve Chairman United States, Ben Bernanke said Friday that the economic recovery had slowed more than expected and the Fed was prepared, if necessary, to adopt additional measures to support the activity.

Prices were also supported by redemptions of short positions against the threat of tropical storm "Earl", which moves in the Atlantic and could become a hurricane by Sunday.

Concerns over Hurricane Danielle "were however attenuated as it swirls currently above the Atlantic, far from shore, according to the U.S. weather service.

Accor announced Thursday an increase in its target operating profit in 2010 and has unveiled a new debt reduction target.

The fourth global hotel group, a rival giants InterContinental, Marriott and Hilton and Starwood, will report an operating profit of between 370 and 390 million euros this year, sharply up from 236 million recorded in 2009.

Accor, which has reported interim results up, also plans to reduce its adjusted net debt of 600 to 650 million euros in 2010.So far, the company had forecast a decline in its debt of 450 million over the year.

The group had announced in May a program of disposals of hotel assets for an amount of two billion euros over the period 2010-2013.

In the first six months of 2010, gross operating Accor rose 17.4% (13% on a comparable basis) to 833 million euros, showing the gross margin to 29.2%.

The operating profit marked a growth of 120% (109.3% on a comparable basis) to 154 million euros while sales in accordance with what was announced July 21 the company is progressing 4.7% on a comparable basis to 2.84 billion.

Accor publishes its first results since the demerger of its business prepaid, Edenred, July 2.

Accor announced Monday the sale of 48 hotels in Europe for 367 million euros. This decision follows the announcement in early July, the sale to Newrest 60% of its business catering on trains of the Compagnie des Wagons-Lits (CWL).

Accor is also preparing to separate from its 49% stake in the casino group Lucien Barriere.

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 / CJO published by Customs.

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

Six economists polled by Reuters had expected on average a deficit of 4.5 billion euros in June, with estimates ranging from 4.0 to 4.9 billion.

The remainder of May was revised to 5.179 billion from the $ 5,500 billion announced an initial estimate a month ago.

Exports FOB data CVS / CJO surged to 33.016 billion euros against 29.948 billion in May, reaching their highest level since August 2008.

Imports amounted to 36.812 billion euros against 35.127 billion the previous month.

In June, France sold its 26 Airbus reported 1,719,000 euros for 19 aircraft against 1,050 million euros in May

The vagaries of the economic recovery and the prospect of new banking regulations temper the optimism of investors after quarterly results exceeded expectations published this week by several major European banks.

Reversals of impairment greater than expected second quarter have offset the slowdown in investment banking, penalized by the threats of contagion of the crisis of the Greek sovereign debt investors who scalded.

Societe Generale has reported a profit of nearly one and half times higher than expected, and Standard Chartered, which operates mainly in Asia, has released a record result.

Lloyds has returned to the green to the first half thanks to a halving of asset impairments.

However, European banks have not divested of their caution, particularly when faced with the consequences of coming prudential reforms.Although the deadlines for application of solvency ratios so-called "Basel III have been repulsed, concerns remain about them.

"There is fragility in the global economy and nervousness in financial markets," said John Peace, Chairman of StanChart, adding that British banks were particularly disadvantaged by the rules on pay, taxation and financial regulation.

Most European banks which have published their results on Wednesday have followed the trend shown Monday by BNP Paribas and HSBC with a lower level of bad debts.

However, even if SocGen gained 0.6% at the Paris Stock Exchange in the afternoon, StanChart lost 6.3% to the London Stock Exchange.

The quarterly results and the prudence of banks are an excuse for profit taking while the lure investors to the sector had been increased by the publication, July 23, heartening results of resistance tests suffered by banks in the European Union.

The European banking stocks index yielded 1.2% on Wednesday afternoon, after having won over 20% since early July against 10% for pan-European Stoxx 600 index – and nearly 9% since the release of stress tests .

"The results show that emerging markets like China, India and Brazil are areas where we can go to generate meaningful activities," said Ted Huang, a fund manager Pinebridge Asia High Yield in the results of StanChart.

Against the trend, the German Postbank increased its provisions for impairment related to risky real estate loans and has revised downwards its objectives.

Allied Irish Banks The Irish, partly nationalized, has also reported a doubling of losses in the first half while making clear progress towards its recapitalization.

These two facilities join the Italian UniCredit, the first credit agency in Central and Eastern Europe, which was published on Tuesday a quarterly profit well below consensus, hit by a dramatic drop in trading revenue.

PSA Peugeot Citroen, after a first half marked by continued strong sales, think back to a positive operating profit this year despite the difficult months ahead in Europe.

The second European car maker said Wednesday it expected 2010 profit from recurring operations of about 1.5 billion euros after a loss of 689 million in 2009 due wholly to the crisis that hit the area the first half of last year.

"The economic environment has had a significant positive impact in the first half (…) Clearly, this will be less favorable economic environment and will have a negative impact in the second half," warned Philippe Varin, CEO of PSA during a press conference.

PSA Action opened up 1.3% at 25.20 euros on the Paris Bourse, before turning around. At 10:10, the title abandoned 3.32% to 24.05 euros.

"The results are solid and forecasts may reassure, but we wonder if the stock market will not suffer in the second half of the relapse of volumes expected in the automotive business in Europe," wrote analysts at Barclays Capital in a Note."We remain very cautious on the outlook for next 18 months."

PSA has resumed on the first six months of the year with profit from operations, stood at 1.137 million euros after a loss of 826 million a year earlier, with a net profit of 680 million against a loss of 962 million a year earlier.

The first half was also supported by the performance plan unveiled by the group last fall.This plan, which includes cost reductions and income gains, has contributed 854 million euros in operating profit.

Philippe Varin has not ruled out that the goal of contributing 1.1 billion euros to the result of the plan is passed this year.

FOCUS ON INTERNATIONAL

The group's turnover rose by 20.8% to 28.39 billion in the first half, still supported by subsidies still in force and by the success of several new models like the Peugeot 3008 and the crossover sedan DS3 Citroen, which allow PSA to increase its market share in Europe to 14.5% against 13.7% a year earlier.

Registrations of new cars by the first French sales rose 5.5% in the first six months of the year but fell 5.6% on the month of June with the shortness of the effect "scrappage".This was further reduced to 1 July, 500 euros against 700 euros in the first half and 1,000 euros for the whole of 2009.

The loss of aid will be added to the fact that the second half is usually less active than the first for the automotive sector sales, and that the surge in demand in late 2009 with the bonus of 1,000 euros a comparison very unfavorable product from one year to another.

Despite this, the division should be close to self-balance for the second part of the year.

SAP anticipates a decline of 7% of car market in Europe in 2010, slightly less than what he foresaw far.He put forward the emerging countries to find new sources of growth, as China is now its second largest market after France and that it provides a double-digit growth in 2010, and as Latin America where it sees growth significant figure.

To expand its presence in the Chinese market, the group relies on its new joint venture with Chang'An second PSA JV in China, which it expects to receive regulatory approval in early 2011.

The manufacturer hopes to make half of its vehicle sales in markets outside Europe by 2015, against 34% in 2009. The 508 is as such a symbol of the internationalization of PSA.New large sedan planned for 2011, it will be produced in Rennes (Ille-et-Vilaine), but also in China six months later. For the first time, a model for European motorists since its conception has incorporated expectations of Chinese customers.

Agricultural Bank of China (AGBANK), China's third largest bank, has priced its initial public offering dual Hong Kong and Shanghai, which should enable it to raise more than $ 22 billion (17.5 billion euros ) hypothesized high, bigger bet on the market ever.

The first trading day will be held July 15 in Shanghai and Hong Kong the next day. The official announcement of the award is scheduled for Wednesday.

AGBANK, founded by Mao Zedong in 1951, operates a large network of branches in the Chinese countryside and in larger cities.

Three years ago, AGBANK was technically bankrupt.His recovery, after a rescue of 30 billion dollars, has been boosted by the strong growth experienced in the country and the state control over the banking sector.

In Hong Kong, AGBANK sold 25.4 billion shares, representing 8% of its enlarged capital, at a price of 3.20 Hong Kong dollars part, totaling 10.4 billion U.S. dollars, it was reported Tuesday source close to the matter.

The bank had tightened Monday its price range, between 3.18 and 3.38 dollars per share in Hong Kong, against an initial range of 2.88 to 3.48 dollars.

In Shanghai, the price was fixed at the top of its indicative range which started at 2.52 yuan.AGBANK will sell 22.24 billion of yuan-denominated A shares at a price of 2.68 yuan coin, or 59.6 billion yuan (8.8 billion dollars).

In total, AGBANK rise $ 19.3 billion through its dual listing and even 22.2 billion dollars if the over-allotment option is exercised, an event likely in view of the application.

Previously, the largest ever IPO was that of Industrial & Commercial Bank of China with 21.9 billion in 2006.

OFFER 20 times oversubscribed

China International Capital Corp (CICC), Deutsche Bank, Goldman Sachs, JPMorgan, Macquarie and Morgan Stanley are the banks organizing the operation in Hong Kong, with the brokerage firm of AGBANK.

For placing on the market in Shanghai, banks are CICC, CITIC Securities, Guotai Junan Securities and Galaxy.

AGBANK is quoting on the stock market to allow the government to achieve its objective, namely to have the four largest banks in the country publicly traded.

Having for many of them had periods of insolvency, it are now among the largest banks – and companies – in terms of market capitalization.

A source familiar with the matter, it indicates that the offer of AGBANK in Shanghai was 20 times oversubscribed by institutional investors.

In Hong Kong, the institutional demand came from Asia to 4%, 30% U.S. 25% Europe thee, according to sources involved.

Individuals have however shown little enthusiasm in Shanghai, like Hong Kong.

The IPO allotment option included, values AGBANK about 150 billion dollars (nearly 120 billion euros), making it the fourth largest bank in terms of global market capitalization behind ICBC, China Construction Bank and HSBC .

Chaired by Xiang Junbo, headline writer and war hero, AGBANK operates 24,000 branches, employs 441,000 people and boasts 320 million customers.

The price for AGBANK bodes well for the four Chinese banks wishing to raise capital as is the case for Bank of China and ICBC.

The Shanghai stock market has lost nearly 25% since mid-April and fell sharply last week, partly because investors sold shares to participate in the offer AGBANK.

More than six in ten French (63%) feel negatively action of Nicolas Sarkozy since 2007 on social policy, against 34% positive, according to a CSA poll published Cap Friday, June 4 by the Journalists Association of social information (AJIS) and DomPlus. When they think about the action of the President of the Republic since 2007 in social policy, 29% of the French as "very negative" and 34% "fairly negative", while 3% are "very positive" and 31 % "fairly positive". They have been 3% did not comment.

Read about our investigation: Why Sarkozy's policy is so unpopular

When asked specifically about various fields is in terms of purchasing power that the French seem most critical: More than three quarters (76%) perceive the action of the Head of State as "rather negative", only 18% consider it "somewhat positive".For a majority of French, is also rather negative opinion on the fight against unemployment (68% against 27%), the fight against poverty (69% against 26%), the incentive to work harder (60% cons 36%), dialogue between management and unions (57% against 30%, 13% did not). Concerning the effectiveness of the minimum service in transport during strikes, the action is seen as "rather negative" to 48%, against 40% (12% did not).

About the pension reform, only unions inspire "somewhat confident" a majority of French people (54% against 42% who have "not much confidence"), according to the poll. In contrast, over two thirds (67%) were "not much confidence" in the patronage of the reform, against 26% experiencing more confidence.At 64%, the French have not much confidence in Nicolas Sarkozy to reform, against 32% who tend to trust.

The leftist opposition also inspires rather not trust a majority of French, but to a lesser extent (55% against 38%). Of the decisions taken by the President to deal with the crisis, 49% of French people consider them bad, against 47%. Nearly one in two French (49%) said the French company less united than three years ago, while 37% say "neither more nor less" and 11% supportive.

The survey of the CSA institute and Cap for Ajisai DomPlus and was conducted by telephone 19 and May 20 from a nationally representative sample of 1,000 persons aged 18 years or older, constituted under the quota method.