The European financial markets have closed lower Monday, investors still fearing a slowdown in the global economy, but the exchanges were, however, supported by numerous mergers and acquisitions in progress.
The Paris CAC 40 index finished the session with losses, yielding 20.43 points (-0.58%) to 3487.01.
Trade volumes were particularly weak during this meeting due to a holiday in Britain.
The pharmaceutical values showed the strongest gains, taking Sanofi-Aventis 0.66% after the rejection of its proposal for redemption by Genzyme.
Intel announced on Monday the takeover of the division of components for mobile equipment of Germany's Infineon Technologies for $ 1.4 billion, pushing back the title of the latter 3.69% at closing.
Other declining value, the title Safran lost 2.3%, the group had denied preparing a bid for Capital of Zodiac, whose title has however jumped 10.45%.
Essilor International on Friday confirmed its 2010 targets in the light of a first half marked by a rebound in sales and a sharp rise in net profit excluding exceptional items.
The world leader in ophthalmic optics said he was always on full year growth of 5 to 7% of its turnover and a stable operating margin over the rate of 18.2% achieved last year, excluding currency effects, acquisitions and strategic change IFRS.
"In the second half of 2010, in a context of renewed activity still fragile, Essilor will pursue the strict implementation of its strategy of growth based on new products, geographical expansion, acquisitions and organic conquer the environment range, "the company said in a statement.
Turnover rose 15.8% to 1,926.8 million euros in the first six months of the year, an increase of 5.9% excluding currency and strategic acquisitions.The Group's contribution margin – operating profit before share-based payments, restructuring costs and impairment of goodwill – came out in turn to 347.5 million (+15.2%), or 18.0% of turnover.
"This is broadly in line with my expectations, the guidance is unchanged, the activity in the U.S. looks a little worse than expected, but overall everything is online, perhaps there will he then some profit taking this morning, "said one industry analyst on condition of anonymity after the value.
The Essilor share opened down slightly from 0.22% to 48.09 euros, giving a market capitalization of about $ 10.3 billion.Since the beginning of the year, the title took 15.5%, after rising nearly 25% throughout 2009.
AN ALLOWANCE amputated NET
Essilor has continued in the first half an acquisition strategy by which it intends to strengthen in particular the emerging markets, with a total of 13 new partnerships. The period was marked in particular by integrating FGXI, a global eye preassembled "readers" and Signet Armorlite, producer and distributor of glasses of the Kodak brand, consolidated in March and April
Net income, Group share, declined by 1.3% to its 197.5 million euros, reflecting a provision of 41.5 million euros for the fine imposed by the German Competition (Bundeskartellamt) for cartel formation in optics.Essilor has filed two appeals which are suspensive payment of the fine.
Excluding this provision, the adjusted net profit stood at 238.8 million euros, an increase of 19.3% from one year to another.
Essilor has continued since the end of the semester its repurchase of shares on the market for an aggregate of 33.7 million euros. The group also conducted on July 2 at remboursemnet the balance of convertible bonds not yet converted. The bond issued in 2003 and is now mature longer listed on Euronext Paris.
The group also sold its stake August 9 history 15% in Group Sperian Honeywell, as part of the tender offer of U.S. conglomerate on the French specialist in personal protective equipment.The more consolidated capital gain, estimated at 27 million euros, will appear in the accounts of the second half.
Lagardère was shown on Thursday determined to see Canal + France go public by March 2011 because of disagreement on the sale of its 20% stake in Vivendi, the controlling shareholder group of pay TV.
Shaken last spring with a campaign of shareholder activist Guy Wyser-Pratte, the media group accelerates the sale of its minority, who constitute a conglomerate discount to its stock price.
Arnaud Lagardère, general partner of the group inherited from his father, was more cautious for the next big sale expected by analysts, that of its 7.5% remaining in the group of aerospace and defense group EADS.
During the presentation of interim results of his group, Arnaud Lagardere seemed more eager than ever to clean up these minority, among which 25% of Amaury, the owner of Parisien and L'Equipe, and 42% of media group Marie Claire.
He particularly stressed his determination to introduce Canal + France in stock while analysts saw it as far a new negotiating tactics of Lagardère, began several months in a poker game with Vivendi, which owns the remaining 80%.
"We go through the process (…), we will not turn on the road," he said during a conference call during the half year results.
GO QUICKLY TO CANAL +
Arnaud Lagardere wants to move quickly to avoid being caught by the tender provided during 2011 for the rights of Ligue 1 for the period 2012-2016, during which an initial public offering by Canal +, the main stakeholder, would the least sensitive.
The chief financial officer Dominic D'Hinnin, responsible for leading the operation, said that if it was not buckled before the end of the year, should wait until March because investors would know the results of Canal + in 2010 before committing.
Lagardère values in its accounts its 20% interest in Canal + France to 1.5 billion euros, or the proportional value of sales options exercised this year by TF1 and M6, which together held 15% of Canal + France.
Analysts doubt that Lagardère, which has no option, can achieve such a valuation at an IPO.
Under a shareholders agreement forged in 2007 when the merger between CanalSat and TPS, without an agreement between two parties on the price of participation, Lagardere could sell its shares on the market.
The Figaro had been reported that Vivendi had refused an offer of 1.35 billion euros Lagardère. Neither group had reviewed the information.
Vivendi has not made any proposal when we gave them (our) money.Their response was: we prefer to keep our money and invest in telecoms, "said Dominic D'Hinnin.
MORE TIME TO LEAVE OF EADS
Regarding EADS, the equation is more complicated. The action has returned 27% since the beginning of the year to close at 17.95 euros on Thursday, but still low and many analysts are convinced that Lagardere will not sell to under 20 euros.
Arnaud Lagardere also said he wanted to first ensure that the program of the future Airbus A350 was well underway before leaving the group's capital.
"There may be delays, or maybe not, we know nothing," he explained."But to be in position to sell those shares in EADS, we want to be 100% comfortable with the development of this aircraft, which means a little more time."
He added that he had the green light from the French government to withdraw and that the issue of the French-German balance in the capital of EADS was not within its jurisdiction.
"I do not expect sales at the end of this year, but if we have an opportunity, it is clear that we will seize this opportunity," he added.
Arnaud Lagardere also said that his discussions with Marie-Odile Amaury, which owns the namesake newspaper group, for a withdrawal had not been completed, while hoping to achieve in 2011, see this year.
He argued that a sale of the Parisien and Aujourd'hui en France, refocusing the group on the organization of sporting events and L'Equipe, increase conflicts of interest with Lagardere, also present in this area Marie-Odile Amaury placed in an "awkward position".
"It is important that we sell," he said. "We're trapped in a company we have no control and which we do not draw virtually no dividend".
The Japanese Minister of Finance has honed his arguments Wednesday on the strength of the yen after the Nikkei newspaper had reported that Tokyo would consider unilateral intervention on the foreign exchange market if speculators push the yen upwards.
While it should meet in the day Prime Minister Naoto Kan and other members of the Government, the Minister of Finance Yoshihiko Noda told reporters that he would intervene appropriately whether to do so, speech he had not taken up.
"When necessary shall have to act appropriately," he said in response to a question about the evolution of the yen.
Market participants, however, questioned the ability of unilateral intervention to contain the strong yen, which hit a high Tuesday of 15 years against the dollar and nine years against the euro and weighs heavily on the Stock Exchange Tokyo which closed Wednesday at a low of 16 months.
"The dollar fell to 83 yen, the probability of intervention has increased, but it would take more than intervention," said Kiichi Murashima, an economist at Citigroup Global Markets.
"This must be accompanied by an easing (of monetary policy) of the BoJ (Bank of Japan) to have any effect."
DOUBTS ON MEASURES TAKEN the radical
The soaring yen and the decline of the Tokyo Stock Exchange have increased the probability of announcing a further easing of monetary policy the Bank of Japan before its next meeting on interest rates scheduled for 6 and 7 September, Reuters said sources familiar with the matter.
Speculators doubt however that the BoJ is ready to take drastic measures.
"If they really want to do something about the yen (…) they must create the conditions to anticipate inflation," said Martin Schulz, senior economist at Fujitsu Research Institute.
"But I do not think the BoJ will move in that direction."
While it took nearly 10% since the beginning of the year against the greenback, against which it was trading around 5:45 GMT at 84.28 dollars, some investors believe the greenback could fall to a record high against the Japanese currency, at least 80 dollars.
So far the Japanese authorities tried to contain the strong yen by simple oral statements, the Minister of Finance stressed on Tuesday the growing irritation of Tokyo against the Japanese currency rise.
Now, about Yoshihiko Noda had the opposite effect to that intended, because dealers have so wanted to test the determination of Japanese authorities to stem the yen's appreciation.Why he decided to get tough on Wednesday.
EMERGENCY MEETING
Tokyo should be difficult to convince the United States and Europe to join its efforts on the foreign exchange market, weakening their own currencies being favorable to their exports.
Yoshihiko Noda declined to comment on rumors suggesting a possible meeting with Secretary of U.S. Treasury Timothy Geithner. The U.S. Treasury has not made any comments.
Japan is no longer intervened on the foreign exchange market since 2004.But the situation is becoming even more worrying than the Japanese export growth slowed to an annual rate in the fifth consecutive month in July.
According to an estimate of Nomura Securities, every increase of one yen against the dollar will result in a decrease of 0.9% of current earnings of major Japanese manufacturing groups for fiscal year 2010-2011, which will close in March.
According to sources close to the situation, the most likely scenario is that the BoJ will increase the size, or prolongs the duration of its mechanism of short-term financing in place in December.
The Nikkei newspaper wrote Wednesday that the BoJ intends to take further monetary easing and could do so in the context of an emergency meeting.
Concerns persist about the state of the U.S. economy have overshadowed the optimism caused by the slight recovery evident on the face of mergers and acquisitions, leading U.S. stock indexes finished down on Monday night.
The Dow Jones closed with a loss of 39.21 points, or 0.38%, to 10,174.41.The Standard & Poor's 500 largest, fell 4.33 points, or 0.40%, to 1067.36 while the Nasdaq Composite ended down 20.13 points (-0.92%) to 2159 63.
The technology has largely underperformed other sectors, driven down by Hewlett-Packard and Dell are waging a fierce battle to take 3PAR, data storage specialist.
HP closed down 2.03% to 39.04 dollars and Dell lost 1.08% to 11.94 dollars, while 3PAR has jumped 44.62% to 26.09 dollars.
These offers are in addition to announcements made last week by Intel that is preparing to resume McAfee and BHP Billiton who covets the Canadian expert potash Potash.
On Monday, sources have reported that Campbell Soup paying serious attention to the British United Biscuits.
Campbell Soup took 0.70% 36.90 dollars.
As the CEO of 3M, he announced Monday that his group would invest about two billion dollars in acquisitions in 2010, double its previous estimate. 3M closed up 0.52% to 81.08 dollars.
"Setting the background of the phenomenon of mergers and acquisitions, which has very little seniority, due to the weakness of economic statistics," said Bucky Hellwig, Vice President of BB & T Wealth Management .
Analysts also point out that activity on the front of M & As is explained primarily by the willingness of companies to generate profits through cost savings rather than through growth in sales.
18.15: Final Questions of the President: "There is a bank that claims 5 billion euros. What does that mean to you?" "I am conscious of having gone too far, but things do not happen as simply as this does mean that Societe Generale, defends Jerome Kerviel. "Were you made to be traded?" "Probably not, answers Kerviel. At the time, I thought was made for it, because I brought money. "Was there not a way out of it before it explodes?" "It's hard to say, according to ex-trader, which repeats at every he has never hidden. I acted in full sight of everybody. Everything is known and all means in the trading rooms. "Have you no submissions to make? This is the last boom that I tend … We know all about you?" Yes. "There is no mystery Kerviel?" No. It remains none the wiser …
6:06 p.m.: Kerviel was called to the bar."Who are you then, Mr. Kerviel, questioned the president? "My goal was to earn money in the bank" tirelessly answered the trader. It is still "sorry" for having suffered some people, like shareholders. But without the backing of his superiors Kerviel could have done nothing. Okay, but why Societe Generale would she let you do, the response president? Kerviel answers beside the point: "I do not know what degree of knowledge of my superiors." She adds, "I have not been able to circumvent all the controls. Conclusion of the presiding judge: "It is difficult to get you out of your way to change your point of view."
6:04 p.m.: Last question of the defense Button: IEC you know, the bad bank Société Générale? Evasive answer. "The issue is not really there." "I'm sad Master Metzner," concluded Daniel Bouton.With these words, the hearing is completed. Bouton leaves the room.
5:45 p.m. button explains to judges the arbitration function. "Banks are not what Jerome Kerviel tried to do," he pleads. Metzner did not give up its prey so easily. How come no one has responded to various warnings about Kerviel operations? For Button, it is obvious that should have been "fuck Kerviel at the door when the first warnings were issued." Mr. Dumas is accused of blowing the answers to Button. The discussion gets heated. Mr. Metzner has indeed evoke the suicide of another trader in the summer of 2007. For the lawyer the two cases are inextricably linked. Button indignant.
5:35 p.m.: Olivier Metzner continues on his questions.Including the most important: how Societe Generale could she not see the amount of these commitments "stupid"? For Button, one must distinguish between what was seen – and for now no one has proved that Kerviel's superiors were aware of what-should be seen ..
5:12 p.m.: For 20 minutes it is the shareholders' lawyers who have succeeded at the helm. They ask how Societe Generale could compensate its shareholders. Button, "unfortunately," says he can not do anything because it "is not responsible for any" innuendo, certainly not that. As his doctors told him when he was very ill, "you are not responsible for the crisis of Lehman, the banking crisis in the U.S. and now the Greek crisis".It can "reassurance", especially today, the General Socciété will remind, Button, who is not to much.
5:04 p.m.: Kerviel did not meet the wishes of Button. Prosecutors asked him if two and half years after the fraud he is determined to make excuses. He does not refuse them openly, but does not give up. "Of course I recognize mistakes, encouraged by my superiors" Kerviel replied. "50 billion euros you did not lose your cool, slice the prosecutor.
16h50: Button gets to tell his nights. In a strange dream Kerviel admits that he lied, and admitted that no member of the hierarchy has not pushed to defraud. And in this dream, Kerviel explained why he did it. He explained to the tens of thousands of employees of Societe Generale, who also are entitled to answers …A question remains: is it that there is a case where Kerviel's positions had been winning? For Button, of course not. The bank relies on the confidence that gave him his staff. The former CEO is trying a bit of humor. With 1.4 billion won, "the bank might be able to save the souls of young débousselés of trading rooms. Button Kerviel admits to still the tip of talent, and even a "capacity to conceal quite exceptional". With sympathy and physical, it was impossible to be suspicious, finds the former boss of the SG.
The European financial stability, to assist Member States in the euro area experiencing solvency problems, became fully operational Wednesday after weeks of uncertainty about the ratification of its Statute.
European fund, which can now raise up to 440 billion euros with the security of countries in the euro area, is part of an overall mechanism developed in the emergency early May, during the debt crisis of the European and capable of raising up to 750 billion euros with the involvement of the IMF.
The mechanism became fully operational on August 4 when Italy has confirmed its commitment to provide its guarantee for any loans issued by the Special Purpose Vehicle (SPV or "mutual fund assets"), said the representatives of the European Stability financial (FESF).
'I am pleased that Member States of the euro area have reached the final stage in the development of FESF, said in a statement Klaus Regling, Director General of the fund.
"The FESF is now fully operational and can if necessary, issue bonds with the assistance of the Office of the German debt, which would be guaranteed by member states of the eurozone."
No financial score has yet been assigned to the SPV, based in Luxembourg.This step constitutes an essential element for the cost it would have to agree to issue debt, if ever he has to do.
The funds should in theory receive the maximum "AAA" by the major rating agencies, the same rating as that assigned to debt securities issued occasionally by the European Commission with support from EU Member States.
END OF THE PROCESS OF RATIFICATION
The mechanism of financial stabilization, which had been agreed by Heads of State and Government of the eurozone at a special summit in Brussels on May 9, would then be transposed National in each participating state.
Its application has been suspended, however long the ratification of Slovakia, who was crossing a tense election period in which the issue of financial support to Greece's participation in the stabilization fund arose as European.
The new Slovak Minister of Finance appointed in early July has finally ratified the European Agreement on July 16.The surprise of the notification without approval of Italy August 4 marks the end of the process of ratification of 16 member states of the euro area.
After the recovery of financial markets, halting the fall of the euro and the favorable report of the EU and the International Monetary Fund on Greece, it is possible that the Fund, whose life is in principle limited 3 years, will ultimately not used.
Zurich Financial Services, Fourth European insurer, has seen its profits decline by 10% in first half as a result of provisions for defective mortgage loans and an increase in claims, including the earthquake in Chile.
The net profit of down 16% to $ 1.64 billion in the first half, against $ 1.97 billion during the corresponding period of 2009, Zurich Financial announced Thursday, said in a statement.
Operating profit activities (Business Operating Profit, BOP) declined 10% to 2.23 billion against $ 2.55 billion.
These declines are attributed to 330 million of provisions recorded in the second quarter in commercial real estate in Great Britain and Ireland.
In the first quarter, the group had recorded $ 200 million because of the earthquake in Chile.
Total depreciation amounted to 763 million during the first six months of 2010.
Zurich Financial has, however gains in net capital investment and depreciation of 418 million.
As usual, ZFS did not provide guidance for the full year.
The combined ratio deteriorated to 98% at end June 2010 against 96.2% a year earlier, and return on equity has deteriorated to 11.5% after 17.6%.
The solvency ratio has however improved to 232% at the end of the period under review.
Business volumes have expanded from 3% to 34.9 billion dollars, and 1% in local currency.
Mitsubishi UFJ Financial Group (MUFG) is planning to resume participation of BNP Paribas in a Chinese joint venture asset management for 50 million dollars (38.2 million euros), we learn two sources familiar with the matter.
This would allow the first Japanese bank to enter the Chinese market for the management of funds, estimated at 237 billion euros and could exceed 765 billion euros in five years, according to consulting firm Z- Ben Advisors.
BNP Paribas and MUFG will submit the draft to the Chinese authorities before the end of the month, after rejecting an initial application for minor technical reasons, "said one source.
Once disengaged from SYWG BNP Paribas Asset Management, BNP Paribas will hold only one license for fund management in China and thus in keeping with rules set by Beijing, which prohibit foreign companies from holding more than one license in that market .
VERY ATTRACTIVE OFFER
Over thirty foreign institutions, including JPMorgan, Credit Suisse and Morgan Stanley, have formed joint ventures in fund management in China, while groups such as Aberdeen Asset Management and T. Rowe Price are looking to break into this market.
MUFG has prevailed over a dozen other candidates for the takeover of parts of BNP, among whom were Japanese Nomura Holdings and Britain's Ashmore Group.
The offer of the Japanese for 33% of BNP Paribas is a ratio of prices on assets under management of approximately 10%, against a normal value of 5%, thus making the supply of MUFG very attractive.
SYWG BNP Paribas was established in 2004 by BNP Paribas and the Chinese broker Wangguo Shenyin & Securities Co, which owns two thirds of the capital.
The joint venture had 10.4 billion yuan (1.2 billion euros) in assets under management at the end of June, 0.49% of the market, against 0.9% at end 2009.
After this assignment, BNP Paribas will not have more than a joint venture in China Fund Management, Fortis Haitong, which manages about 40 billion yuan of assets, or 2% of the market.
