Financial, Business, Personal Finance News

Paris and London exclude build together an aircraft carrier

France and Britain agreed Friday to pool some of their defense programs, including the A400M aircraft, but have ruled out building an entire aircraft carrier.

The defense ministers of both countries met in Paris to discuss their weapons programs in times of fiscal austerity that strikes the two countries.

'It is logical to examine the issues where we can share the assets rather than acting separately, "said the British minister, Liam Fox."It's a purely pragmatic."

His French counterpart Herve Morin said a series of tracks were considered, including on the A400M transport aircraft, tanker aircraft and naval assets.

On the A400M EADS, he added that cooperation would cover the maintenance, operational maintenance and possible pooling of fleets.

But he stressed that the use of common carriers was not currently planned.

Women's magazines Be and Envy are about to merge

Lagardere Group and Marie-Claire will announce on Friday the merger of their respective women's weekly, Be, Envy, launched in spring, following the slowdown in sales, "wrote Le Figaro.

The announcement comes as the magazine Grazia, the Italian group Mondadori, celebrates its first anniversary, the newspaper said.

Lagardere Active said Thursday it would make an "important announcement" on Friday morning, without further details.

"The proposed merger of two weekly was presented yesterday to the works of two groups," said a source quoted by Le Figaro.

To move into the niche market of women but crowded, Lagardere had decided in March to create the brand Be, both magazine, website, television series, application for the iPhone and web radio.

Lagardère Group owns 42% Marie Claire, one of which minority interests Arnaud Lagardère, general partner of the group, reiterated Thursday night trying to get rid.

"Be" was the first launch of magazine audience Lagardère since 2003. The group, which had invested some 20 million euros rough in launching this new brand, targeted a breakeven within three years.

According to Le Figaro, the approximation of the two week early due to faltering sales.Be seen its circulation fall to 171,397 copies sold in late June against nearly 230,000 at the beginning, while qu'Envy barely exceeded 160,000 at the same time cons over 240,000 at its launch in February.

Nestlé completes sale of Alcon to Novartis

Nestle announced Thursday it had finalized the sale of Novartis's 52% that remained in Alcon for $ 28.3 billion (22.3 billion euros).

Nestle has received a total of 41 billion dollars selling American specialist in ophthalmology, if one takes into account the three stages of disinvestment, namely the initial IPO of 23.25% in 2002, sale of 24.8% in 2008 and the last transaction with Novartis, conducted Wednesday, said the world number one agribusiness in a statement.

Nestle, which had acquired Alcon in 1977 for 280 million dollars, now intends to "significantly reduce its net debt, which amounted to 29.6 billion at end June 2010.

Novartis now controls 77% of Alcon and its later clarified in a separate statement that its initial tranche of 25% had already recorded a gain of $ 200 million for the year.

The integration costs of $ 140 million, spread over three years and will save annual synergies of 200 million dollars, said pharmaceutical group.

This year however, will be impacted by charges of 140 million, including transaction costs.

The acquisition will be neutral to earnings per share in 2010 and 2011 but should be accretive as this year for basic EPS ('core').

Novartis is now looking to buy the remaining 23% but the independent directors of Alcon opposed to the proposed price of 2.8 shares per share Novartis Alcon, which is 15% less than the $ 168 per share paid Nestlé.

Swiss law allows Novartis to adopt such an approach but does not guarantee the success of its offer to minority shareholders.

New fall in unemployment in France in July

The stabilization of the labor market was confirmed in July in France with an increasing decline in youth unemployment and a rise in job vacancies so that the executive is preparing a return to social and political agitation.

The number of jobseekers in category A, which includes those without work and actively seeking employment, fell for the second consecutive month, declining by 14,400 (-0.5%) last month in France, to 2,676,600 people.

He declined 8,600 (-0.3%) in June, which was the second decline year after the March.

By adding job seekers engaged in a Pool (Class B and C), the number of unemployed increased by 0.1%, however in a monthly basis in July (+5.300) for an increase of 8.1% year on year to 3,963,800 people (4,208,300 including Dom).

"It's positive, we have for the second consecutive month falling unemployment.It's an indication of stabilization of unemployment, "said Minister of Economy Christine Lagarde in an interview with Reuters.

"We have a range of indicators is positive and give us hope that this trend early (…) will probably keep", she added, citing the purchase intentions, ocean freight, advertising, the interim, the recovery of stocks, investments and consumption.

"Who says less of job seekers said wages and therefore more consumption and at the level of public finances, less unemployment and thus a situation of public finances Unedic-improved," continued Christine Lagarde while the government is preparing the draft budget 2011 will be announced in late September.

The executive confirmed last week its goal of bringing the deficit of France in 6% of GDP next year despite the lowering of a half-point to 2.0%, its growth forecast economy.

DOWN FOR THE YOUNG, THE RISE FOR OVER 50 YEARS

The upturn on the labor market due to an accelerated decline in youth unemployment.

Job offers collected by job center for their part, returned to the increase.

Among youth under 25 years, the number of unemployed declined by 2.8% in group A compared to June fell by 1.8% in one year.For categories A, B and C, the youth unemployment down 0.2% on month but a 1.8% increase over one year.

Job offers collected by Pole employment grew 3.6% in July in France and show an increase of 12.7% over one year.They were down by 0.6% in June from the previous month increased 7.1% over one year.

The long-term unemployed and those over 50 years, however, continued to grow.

For over 50 years, unemployment has increased by 0.8% in group A (+17.6% yoy) and 1.1% for the three main categories (+17.1% on year).

The number of long-term unemployed – registered at employment center for a year or more – rose 0.8% in July for categories A, B, C with a mass increase that is over one year (+27.6% ).

The detailed statistics also shows that entry to public service employment in Class A, B and C were down 2.4% from June, down 4.4% year on year.

The outputs of the same categories are in the same time remained stable but rose 4.1% over one year. Among them, radiation administrative advances of 7.3% compared to June, the search stops 11.5% and entries on probation by 17%.

The French economy has created 23,900 jobs in the market sector in the first quarter with growth of the economy by 0.1% and 35,000 in the second quarter with growth accelerated to 0.6%.

Unemployment according to ILO will be published Sept. 2 by INSEE. He stood at 9.5% in the first quarter (9.9% in counting overseas departments), the highest since the fall of 1999.

The Paris Bourse ended down 0.24% to 3643.14 points

With the exception of Frankfurt, the European stock markets ended in retreat, investors are showing more hesitant after the session dealing with conflicting U.S. indicators, the Paris stock exchange for ending its declining share of 0.24% in 3643 , 14 points.

The pan-European Eurofirst 300 index closed the week down 0.76% but gained 5.3% on the month of July, its biggest gain in four months.

As for values, the construction sector takes prices back down, falling by 3.89% Lafarge, punishing investors lowering the forecast cement demand for 2010.

Prices, however, were supported by some solid corporate results found.Total and closing up 0.94% after posting earnings growth in the second quarter.

Alcatel-Lucent, which announced on Friday its annual targets, jumped 11.07% on the session.

The title, however, BP has lost 1.81% due to new fears about the evolution of the oil spill in the Gulf of Mexico.

Puma sees an increase in its adjusted operating profit in 2010

Puma anticipates an increase in its adjusted operating profit in 2010 compared to 2009, the global economic recovery had a positive effect on demand for sporting goods.

In exchange, Puma loses 2.6% in the first exchanges in a market up slightly.

The world's third largest industry, behind the U.S. and fellow Nike Adidas, had a first revised upwards its 2010 targets in April.

He then said he planned to grow its annual turnover between 0% and 5% but closer to the bottom of this range, and a growth of at least 70% of its taxable income.He confirmed that goal Thursday.

Consumer confidence has reached a peak of 26 in July in the euro area, which gradually takes shape of the debt crisis but the longer-term prospects remain uncertain.

The adjusted operating profit came out of Puma up 1.7% to 64.1 million euros in the second quarter, slightly below a Reuters poll that gave 69 million.

Turnover increased 2.5% to 615.4 million euros (consensus of 628 million), while net income increased by 16.4% to 44.8 million (consensus: 49.1 million).

The subsidiary of PPR, which also announced Thursday the launch of a share repurchase program, has a PER of 13.7, whereas it is 15.1 to 17.1 for Adidas and Nike, according to Thomson Reuters StarMine.

The action gives 2.3% to 230.45 euros in early morning.

Spir stabilizes its margin despite a further fall in sales

Spir Communication has again suffered in the first half of the decline in sales in the free advertising press, but cost reductions have allowed it to stabilize its margin.

The media group and distribution of printed materials and packages still struggling to develop its model based on formerly free press announcements, but he expects further restructuring to achieve its objective of restoring the balance operational 2010.

Spir has declined by about 10% of its total turnover in the first half to 280.7 million euros, with a fall of 15% of cluster media, press and internet, and 6% of the segment distribution of printed advertising.

"In the context of an advertising market remains uncertain, Spir Communication is continuing its transformation and is maintaining its target for operating profit to breakeven in the year 2010," the group wrote in a statement.

The operating margin improved slightly semester to 1.7% (+0.2 points) thanks to cost efficiencies, including through a plan for adapting the press division, started in 2009, which reduced by 22% operating losses of this segment in the first half.

The group aims to reduce the share of sales made in the traditional activities of the press free to print ads in favor of a growth in Internet sales.

The press had in the first half for nearly 30% of total turnover, against 12% for sales generated by the division of Internet media.

The action Spir stable closed Tuesday at 16.40 euros in a market capitalization of just over 100 million euros.

French banks manage stress tests

French banks BNP Paribas, SocGen, Credit Agricole and BPCE, parent company Natixis, have passed the stress tests conducted by European authorities said on Friday the Bank of France.

In a statement, the regulator said that following the test on a scenario of economic decline worse than expected and a new crisis on the European sovereign debt, the four French banks show a ratio of Tier One financial solvency through 9 3% at end 2011.

In this scenario, which holds a particular hypothesis of two years of recession in the euro area in 2010 and 2011, European regulators demanded that they tested 91 European banks show a ratio of at least 6%.

"This is a satisfactory result, not surprisingly, is quite comforting," said Christian Noyer, Governor of the Bank of France at a press briefing.

Christian Noyer, who is also member of the Governing Council of the European Central Bank, said that the total exposure of the four French banks, European sovereign debt amounted to 240 billion euros at end-March, which accounted for 43 billion in their "trading book" (portfolio of financial assets).

He also explained that a risk of default on sovereign debt of a sovereign state had been excluded from testing scenarios.

To restore investor confidence, the European Union 91 European banks submitted to stress tests to ensure that their capital was adequate to cope with a worsening economic conditions and financial market shocks.

Led by the Committee of European Banking Supervisors (CEBS) and drawing lessons from the debt crisis of Greek, tests have included discounts which reduce the market value of some bonds.

Fears of contagion in Europe of the fiscal crisis of Greece has weighed heavily in recent months on financial stocks.

The sector index Stoxx 600 European banks yields almost 5% since the beginning of the year.

French growth expected at 1.3% in 2011

The chances of achieving economic growth of 2.5% in France in 2011, as required by government depart according to a Reuters poll of economists, who consider the measures of fiscal consolidation in Europe will weigh on demand .

Seventeen economists polled by Reuters expect, thereby increasing the gross domestic product by 1.3% next year (median forecast), against 1.7% in a poll conducted in April equivalent.

The median forecast for 2010 is 1.3% against 1.4% in April.

"The austerity measures in France and neighboring countries will weigh on demand and we expect a decline in consumption and investment in a number of European countries," said Maxime Lemerle, an economist at Euler Hermes.

Economists now expect that consumer spending, a pillar of French growth, will increase by only 1.1% in 2011, when they expected 1.4% in April.

Over two thirds of French exports to Europe by the weak demand in the region should weigh heavily on trade, according to Maxime Lemerle, which forecasts growth of 1.1% of GDP in 2011, a cons, 8% previously.

The government expects growth to reach 2.5% annually between 2011 and 2013, which would help reduce the government deficit from 8% in 2010 to 6% in 2011, 4.6% in 2012 and 3% in 2013 .

Slower growth could lead to additional measures to reduce the deficit or raising taxes.

"If we have less growth, certain expenses will tend to increase as those related to employment. So I think they might have to raise taxes a bit," said Dominique Barbet, economist at BNP Paribas.

The Economy Minister Christine Lagarde said she would not rule to revise the growth forecast for 2011 after the publication in mid-August GDP figures for the second quarter.

His counterpart on the Budget, Baroin, said the deficit reduction targets were met, although growth was below forecast.

The government plans to reduce the deficit to 6% in late 2011, 40 billion euros less than in 2010.According Baroin, 15 billion will come from the extinction of the recovery plan, saving 14 billion and 11 billion of revenue increases.

Santander bought the German commercial banking division of SEB

Santander is one step closer Monday toward its goal of becoming a bank offering a full service commercial bank in Germany with the acquisition for 555 million euros in the division for the subject of Swedish SEB.

Santander seeks to expand its presence in Europe, especially Germany and Great Britain, and the high growth markets such as Latin America.

"Germany is an important market for Santander.This acquisition is an important step towards achieving our goal of being a commercial bank offering a full service in Europe, "said its chairman Emilio Botin said in a statement.

The Spanish bank believes that its ratio of Tier One capital could fall by ten basis points due to the acquisition, the amount is close to 500 million previously reported by sources close to the situation.

According to head of operations in Latin America, Santander, Francisco Luzon, quoted by the Financial Times, Santander plans to strengthen Colombia and Peru, where its market shares are between 10 and 20%.

Around 9:15 GMT, Santander and SEB yielded respectively 0.69% and 0.76%, while the Stoxx index comprising the major European banking stocks lost 0.66%.