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.

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."

BP confirmed the upcoming resignation of its CEO, Tony Hayward, widely criticized for his handling of the oil spill in the Gulf of Mexico and its replacement by the American Robert Dudley.

This announcement coincides with a special charge of $ 32.2 billion (24.8 billion euros) related to the oil spill, which plunges the accounts of the British group into the red to the tune of 16.97 billion only for the quarter April-June.

"The tragedy of the explosion and damage wells Macondo environments that ensued marked a turning point," said the group's president, Carl-Henric Svanberg after announcing the departure of Tony Hayward.

"BP is a strong company but will now be (…) a different company."

Robert Dudley, 54, currently in charge of the group's activities in the U.S., oversees efforts to contain the oil spill, considered the worst in the history of the United States, which pollutes the region since the collapse of the Deepwater Horizon platform April 20.

He will be based in London after taking office and will sell the direction of the American branch in Lamar McKey, the company said.

Tony Hayward to take its share towards the non-executive of TNK-BP, BP's joint venture in Russia.He will receive compensation equivalent to one year's salary, or 1,045,000 pounds (1,250,000 euros).

Hayward had angered the U.S. administration for having complained of being overstretched since the beginning of the disaster and for having, during his congressional testimony, tried to dodge responsibility for his group.

Excluding costs related to oil spills and other non-operating expenses, BP poster for the second quarter adjusted earnings of the replacement cost of 4.98 billion dollars, in accordance with Reuters based on estimates of 11 analysts.

Adjusted earnings replacement cost excludes gains or losses related to changes in valuation reserves of fuel and is comparable to net income.

In a separate announcement, BP said its asset sales could reach a total of 30 billion dollars over the next 18 months, which could allow it to reduce its debt by between 10 and 15 billion dollars.

The group said it will review its dividend policy once established results for the fourth quarter.

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.

HSBC Holdings announced the acquisition of the retail banking and commercial banking at Royal Bank of Scotland in India, the British bank nationalized virtually continuing its withdrawal from foreign markets.

HSBC announced it would pay a premium of up to $ 95 million (75.8 million) compared to the net asset activity during the closing of the transaction, expected to first half of next year.

The price could be reduced in cases of increased bad debt during the next two years.

Sources had previously said qu'HSBC redeem these activities, which have 1.1 million customers, more than 1,800 employees and 31 divisions in India.The gross value of these assets were worth $ 1.8 billion at end March.

Currently, HSBC has about two million customers and 50 divisions in 29 Indian cities.

RBS, owned 83% by the British government, seeks to refocus on its core business and sold off in recent weeks some of his small business.

The group puts an end to a decade of international development, raising over 2.5 billion dollars by withdrawing more than twenty activities over the past 14 months.

The Autorité des marchés financiers (AMF) announced Wednesday it had exonerated Natixis in an investigation into financial information of the bank in November 2008 at the height of the financial crisis.

In late 2008, the AMF had launched an investigation against the bank owned almost 72% BPCE (People's Savings Bank) after announcing a loss of 234 million euros and information from press reports at the same time a trading loss of one billion euros.

In its decision, the Sanctions Committee of the AMF does not hold grievances against the bank regarding the sincerity and accuracy of its financial information.

"It does not appear that the emergency situation in which it was placed to make before markets opened an initial response to articles in The Tribune, Natixis has disregarded the requirements of accuracy, precision and fairness set out in Article 223-1 of the AMF General Regulation, "reads the decision of the Sanctions Committee.

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.

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.