International Business News

Sanofi-Aventis does not set a limit for lead in discussions with the U.S. biotech group Genzyme, which he formalized this weekend an offer to buy, said Monday the director general of the French laboratory in Echoes.

Sanofi expressed readiness Sunday to pay $ 69 per share in cash, or a total of $ 18.5 billion (14.5 billion euros) to take control of rare diseases specialist.

Asked by the newspaper on the time he has given direction to Genzyme to meet her proposal, Chris Viehbacher said: "It's hard to say since this is a great deal for both parties. "

"The goal now is to meet to discuss," he added."We want to show our determination and seriousness, but not immediately threatening. A lot of time may elapse."

Asked about the production problems encountered by Genzyme, Chris Viehbacher said that Sanofi could help the U.S. group to solve.

"We will certainly have the opportunity to conduct due diligence," said Director General of the French laboratory. "Organic products are difficult to make but we master this technology."

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

Schlumberger, a global oilfield services company, reported Friday in an increase in line with expectations, 33% of its quarterly earnings, strong growth of its land in North America offset the effects of the moratorium on drilling offshore in the Gulf of Mexico.

Net income from continuing operations of U.S. group stood at 818 million dollars (632 million euros) over the second quarter, or $ 0.68 per share, against 613 million ($ 0.51 per share) last year.

Turnover rose 7.4% to 5.94 billion dollars.

Analysts on average had forecast earnings per share of $ 0.68 and revenues of 5.915 billion.

In exchange for pre-market action Schlumberger, who finished at 61.30 Thursday, yielded more than 2%.

The moratorium on offshore drilling in the Gulf of Mexico was decided after the explosion and sinking of the platform Deepwater Horizon, operated by BP, which left 11 dead and is causing the worst oil spill from the history of the United States.

But Schlumberger is less affected than, for example, Halliburton, by stopping the activity in the Gulf of Mexico, this region represents only 5% of its turnover.

Major European stock markets finished higher Wednesday for the first time in over a week, boosted by banks and U.S. companies quarterly results.

The Paris Bourse closed up 0.75% to 3493.92 points.

While the results of their strength tests will be published Friday, banking stocks were among the most requested on Wednesday.The Stoxx index of European banking core values thus gained 1.01%.

German Chancellor Angela Merkel said that resistance tests conducted with European banks to help restore confidence in the financial sector.

The maker of Durex condoms and Scholl sandals SSL International has jumped from his side of 33.45% after the announcement of its takeover by the British household products and health Reckitt Benckiser for 2.5 billion pounds ( 2.97 billion euros).

The corporate failures have continued to decline in France in June to register down 7.9% on the entire second quarter compared to the same three months of 2009, according to data published on the news website score3.fr business.

The Observatory for the failures identified score3.fr 13,189 openings procedures from April to June against 14,326 a year earlier, a decrease of 7.9% followed a modest decline of 1.8% in first quarter .

On June alone, the failures are the number of 4677, a figure higher than in May (4310), but down 7.2% compared to 5039 cases in June 2009.

"The improvement is particularly noticeable in the areas most affected by the crisis, namely real estate (-30.4%), manufacturing (-21.2%) or construction (-10.9 %), "said Score3.fr, which belongs to the group of business services Pouey International.

Agriculture and fishing have also seen their bankruptcies decline sharply compared to June 2009 (-44%) but some areas remain, however, the sentence, like business services and administrative support (14.4% ), accommodation and food (+3.2%), or transport failures which rose 1.4% compared to June 2009.

After several positive months, financial and insurance for their part, experienced strong growth in their failures (6%) in June a year ago. Developments in this sector, however, positive throughout the quarter with an average decline of 3.2% of failures from April to June 2009.

The detailed figures are available on the website www.score3.fr.

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.

The Bank of Korea raised its key interest rate Friday for the first time since the beginning of the financial crisis and reinforced expectations of a further tightening of monetary policy by predicting strong growth and rising inflation .

The Bank of Korea increased by 25 basis points rate previously set at record low of 2.0%, falling into step with its regional counterparts in Australia, India, Taiwan and Malaysia.

Investors were expecting such an initiative for several weeks in light of the growing confidence shown by the authorities regarding the ability of the fourth largest economy in Asia to consolidate its recovery, despite lingering uncertainties in Europe and the United States.

Most analysts polled by Reuters had forecast, however, on a rate hike in August or September.

The won has increased its earnings to grow by over 1.0% on the session against the dollar.The stock market is, they, remained virtually unchanged.

"Governments in Asia seem relatively confident about the economic outlook despite concerns about the potential impact of euro weakness and the short-term downturn in growth by the rapid pace set earlier this year "said Brian Jackson, a specialist emerging markets at Royal Bank of Canada.

"We expect the Bank of Korea will further increase interest rates by 50 basis points by the end of the year, the risks are increasingly tilted to the upside," he adds.

For a chart on the interest rate and inflation trends: here

PROGRESSIVE CURE

The Governor of the Bank of Korea Kim Choong-soo told reporters that the economy had probably increased more than 7% over the same period last year in the second quarter and throughout the first half.

He also said that inflation should reach 3.0% next year, in the middle of the range the central bank's target of between 2.0 and 4.0%, which analysts said could conduct Bank of Korea to bring its rate of 3.0% by the end of this year.

He also reported a sharp rise in housing loans in June after a period of sluggish growth.

"There is no doubt that the basic rate of 2.0% was very low in view of various factors such as economic growth and inflation outlook," the governor said.

Kim Choong-soo was upbeat on global growth while highlighting the budgetary problems in Europe that it deems the main risk, adding that further turmoil in financial markets were possible.

The tightening of monetary policy the central bank should be gradual as the institution has ensured that its policy would remain accommodative.

"As the policy rate is still very low and the pace of tightening is very gradual, it is still support for the economy and the market impact will not be negative," said Lee Sung Kwon, an economist at Shinhan Investment Corporation.

This is the first increase in interest rates in South Korea since August 2008 and their first change since the beginning of last year.

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.

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.