Financial, Business, Personal Finance News

The Paris Bourse opens up, up Dexia

The Paris Bourse opens up Wednesday in the wake of U.S. and Asian markets and after a good indicator of growth in manufacturing activity in China.

The CAC 40 index shows a gain of 0.64% to 3786.39 points, after having declined slightly the day before.

Axa has the highest increase in ACC, with a gain of 2%, while EADS loses 1%, affected by the decline of the dollar touched a low vis-à-vis the euro since mid-April.

The euro is trading around 1.3610 dollars.

Dexia, the largest increase SBF120, takes more than 2% after two newspaper articles stating that a merger with La Banque Postale is under consideration.

Vallourec gained 1.5% after having announced the construction of a plant for producing tubes for steam generators in Nansha in Guangdong province in south-eastern China.

Other major European markets also rose: London and Frankfurt gained 0.5% 0.27%. Of the European indices, the EuroStoxx 50 wins and 0.44% Eurofirst 300 rose 0.33%.

The 2011 deficit of the social security under 23 billion, according to Les Echos

The forecast deficit of the general scheme of Social Security in 2011, which will be released Tuesday by the government, will be around 23 billion euros, the daily Les Echos in its Tuesday edition.

For Medicare, the deficit forecast presented to the Committee on Social Security accounts will be just under 12 billion euros, said the business daily.

Meanwhile, the government has validated the savings plan of 2.5 billion for Medicare, he added.

According to Les Echos and Le Figaro, one important measure was dropped in the final stretch: the idea of increasing slightly (0.5 points) co-payments which remain the responsibility of the insured for physician visits, medical tests or physical therapy sessions.

Policyholders will still be utilized. Medicines, including the medical service is considered moderate (blue labels) should see their reimbursement rates from 35% to 30%.

Paris and European shares end sharply higher

Paris and other European stock markets ended Friday rose sharply after the release of U.S. data better than expected.

Markets were also supported by the decisions of Spain to go further in turning around its finances.

The CAC 40 index closed up 1.94% at 3782.48 points, while in New York the Dow Jones gained 11.67% and the S & P 500 1.9% after the release of durable goods orders better than expected in August.

For the week, the CAC 40 gained 1.62%.

London has been 0.93% and 1.84% Frankfurt. Madrid won 2.15%. Of the European indices, the EuroStoxx 50 gained 1.91% and 1.14% Eurofirst 300.

Technip wins contract for 682 million euros in Algeria

Public company Sonatrach announced Thursday it had awarded a contract to French Technip to modernize and refurbish refinery Algiers.

In a statement published on the internet, Sonatrach said that this contract is 67.8 billion dinars, or 682 million euros.

Chinese Sinochem hires consultants to banks Potash

Chinese Sinochem sought the services of several banks in order to thwart the bid of $ 39 billion (29 billion) issued by BHP Billiton on Potash, said on Wednesday sources close to the matter.

Sinochem, specializing in chemicals, has requested advice from Deutsche Bank and Citigroup says it.

The two banks involved declined to comment and Sinochem this information was not immediately available due to a holiday in China.

If the event of a serious offer made by a Chinese consortium remains uncertain, this approach reflects the willingness of China to block BHP by outbidding its offer or by acquiring a blocking minority stake in Potash.

BHP Billiton, which wants to use Potash, the world fertilizer to make its debut on the world market for food, said Monday he did not intend to revise upward its offer to $ 130 per share.

On Tuesday, the CEO of BHP, Marius Kloppers, said he was very worried of a possible competing offer for Potash and indicated that the mining group would withdraw its offer rather than raise it to a level such that the transaction would benefit more shareholders.

Saffron confirmed an agreement for the purchase of L-1

Saffron confirmed Monday the imminent acquisition of U.S. company L-1 Identity Solutions for $ 1.09 billion in cash (834 million euros), an operation that allows it to grow stronger in the strategic security.

By further strengthening its footprint on this "niche" high growth, let alone the United States, the French specialist in the aerospace and defense, engine manufacturer Snecma's parent, hopes to achieve a major operation landmark after redemptions, in 2009, Printrak and GE Homeland Protection.

The transaction, if successful as planned, Saffron also places in a better position in India where the group she hopes one day win a big contract in the issuance and security identification cards.

In recent months, security companies are sought while defense budgets are subject to drastic treatments, fiscal crisis requires. The players in the biometrics industry, identity and cybersecurity are logical targets of choice for major manufacturers seeking growth opportunities.

Safran will propose $ 12 per share to shareholders of L-1, retaining only three of its four main activities, according to a source had told Reuters on Sunday. (See)

The displays offer a premium of 31.2% compared to the average of 30 days of the action L-1.It closed at 9.70 dollars on Friday in New York, valuing the company at 900 million dollars.

Saffron monitor the activities of biometric solutions, securities and secure ID service enlistment of L-1 and integrate to Morpho, its division dedicated security.

"In 2009, these activities generated a turnover of 436 million dollars and had in late 2009, a backlog of 1.1 billion.We buy technology, backlog and the potential, good things have a price, "said Ross McInnes, chief financial Safran, during a conference call.

The officer added that the acquired business should generate a turnover of over $ 530 million and profit before interest, taxes, depreciation and amortization (EBITDA) of $ 100 million in 2011.

At 11:25, the action Saffron signed the largest increase in DTH and gained 4.44% to 20.245 euros on the Paris Bourse.

"The complementary activities between the two groups is certain. And it will help strengthen the leadership of Saffron in biometric security solutions.However, the high price reflects a priori high organic growth of this type of activity, "wrote analysts at CM-CIC Securities said in a research note.

According to several experts, the security market to grow by nearly 15% per annum by 2015.

SYNERGIES

In pre-operation, business counseling to government agencies of L-1 will be sold to BAE Systems for about $ 295 million.

Safran noted that the annual operating synergies are expected to total $ 30 million in a full year and that the transaction will be financed entirely from cash flow, will be accretive from the first year.

"The boards of directors of L-1 and Safran have approved the transaction unanimously.(It) is subject to shareholder approval of L-1 and regulators, including the review of U.S. antitrust authorities, the Committee on Foreign Investment in the United States (CFIUS), "said Ross McIness.

He said the shareholders of L-1 will have to offer at least 50% (plus one share) for the offer.

L-1, born in 2006 the merger of Viisage and Identix companies, achieved a turnover of 650.9 million dollars in 2009 and earnings before interest, taxes, depreciation and amortization of $ 97.2 million.

The chief executive of Safran, Jean-Paul Herteman, for its part, argued that his group was still interested in a rapprochement with the OEM Zodiac in the future.

Zodiac, which has already raised an objection of inadmissibility to the steps of Saffron, decided on Friday to conclude a new pact of shareholders to protect themselves against any hostile takeover.

Crude ends down and lost 3.65% on the week

U.S. light crude oil has closed lower for the fourth straight session Friday on the New York market, impacted by the unexpected fall in the morale of U.S. households according to preliminary results from the monthly survey from the University of Michigan.

The October contract, which expires on Tuesday, ended on a loss of 91 cents, or 1.22%, to 73.66 dollars a barrel.

He had previously traded between 72.75 and 75.25 dollars.

For the week, he dropped $ 2.79, or 3.65%, its biggest percentage drop since the week to August 13.

Upon the closing of the New York Mercantile Exchange, the November contract on the Brent yielded 35 cents (-0.45%) 78.13 dollars.

ArcelorMittal unveils cost savings plan and investment

ArcelorMittal, the world's number one steel company, expects to save two billion dollars by 2012 and further invest four billion dollars in five years, to be more autonomous in the area of iron ore.

The savings it will achieve over the next two years to come largely from improved management and efficiency of its operations, the company said in a presentation posted on its website.

Since the outbreak of the financial crisis, ArcelorMittal has already made three billion dollars in savings, mostly by slashing its workforce.

At a summit organized by Reuters in March, the director of mining group headquartered in Luxembourg had said he planned to raise its iron ore production to 100 million tons in 2015, more than double its production today.

This company should it cost four billion dollars, he said Thursday.

Steelmakers are being pressured more and stronger from the producers of iron, especially since the pricing is now quarterly instead of annually as before.

NAB waives Axa Asia Pacific, AMP concerned, reflects Axa

The Australian group AMP Asset Management said on Tuesday remain interested in buying the assets of AXA Asia Pacific Holdings (APH) in Australia and New Zealand, just after the National Australia Bank announced it had thrown in the towel .

After suffering a second veto of the Australian competition authorities last week, NAB has finally abandoned its bid for AXA APH, ending, in fact, in agreement with the insurance group Axa under which it would buy the Asian operations at NAB its subsidiary AXA APH.

The French insurer said in the morning he had noted the decision of NAB and it "continues to evaluate its options in the context of its growth strategy in Asia".

The veto of the Australian authorities was seen by analysts as a major setback for Axa, raising questions about the group's strategy in Asia.

NAB said that "considering all options, the continuation of this agreement does not serve the best interests of shareholders".

For its part, AMP has indicated, through the voice of his spokesman, that "AXA APH remained strategically interesting to appropriate conditions."

The original plan, once acquired by AXA APH NAB for nearly nine billion euros, that it resells the assets to Axa Asia group, which would have allowed the French to encourage the development of its activities on the markets Asia with strong growth.

At the Paris Bourse, the title Axa retreated 0.8% to 13.19 euros to 12.15, while the CAC is stable, as the European insurance index.

At this price level, the title is down 20% since the beginning of the year, which is mainly due to uncertainties about its development strategy in Asia, while the insurance index advances 2 2% over the period.

Basel III will require hundreds of billions of euros

Banks will need several hundred billion euros of additional capital after the agreement called Basel III to the tightening of rules for their own funds, said Nout Wellink, Chairman of the Basel Committee and member of the Board of Governors ECB.

"I hesitate to give figures because it concerns a very long adjustment period which will take about eight years and that the figures will change over time," Nout Wellink said on Monday at the Dutch radio station Radio 1. "This will be hundreds of billions (of euros)."

"For some, they will keep for years of profits they can use to reward their shareholders, pay premiums.For another part, this will vary from one bank to another, they must obtain financial markets, "said Nout Wellink.