International Headlines and Stories

EADS, the European manufacturer announced in a news release its second quarter as a significant decline in profits. With effect from April to June, the result came back 208 million euros to 82 million. At the same time, the turnover was little changed at 11.35 billion (11.73 billion for the same period last year). Over the half, earnings were 185 million against 378 million in billings from 20.308 billion. Reduced to an action, the benefit is 0.23 cents (0.47 cents to end June 2009).

Despite the marked decrease in profits, the group has revised its targets upwards for the whole year. It now expects over 44 billion ors billings. The group also announced a production rate of the A320 increased to 40 per month.

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"The week will be very nervous," Franklin predicted Tuesday Pichard, director of Barclays stock. On the one hand, the low trading volumes (less than 3 billion at the close Tuesday, and just over one billion at mid-session on Wednesday) and other stress tests released Friday at 4:00 p.m. confirm this thesis . Since the beginning of the week, the CAC 40 index opened sharply higher supported by positive results from U.S. companies lose momentum before As the meeting. But on Wednesday, the upward trend appears to continue. At midterm, the CAC 40 gained 1.84% to even 3531, 94 points, well above the 3,500 points.The stock exchanges in London (1.50%) and Frankfurt (1.33%) advance in unison.

On the currency markets, the euro retreated against the dollar, traders were playing the card of caution before the release Friday of the results of resistance testing of the 91 largest European banks. In the morning, the euro was at 1.2867 dollars against 1.2881 dollars the previous day.

Asian stock markets closed on Wednesday in a disorganized, Tokyo lost 0.45% to 9258 points, while Shanghai was slightly higher than 0.06%, within minutes of closing.

Accor, Arcelor-Mittal and banking head CAC 40

On the macroeconomic front, the appointment of the day is undoubtedly the meeting between Christine Lagarde, Minister of Economy and its German counterpart, Wolfgang Schäuble, at 12:45 pm.The two ministers would discuss the release of such stress tests, for which Christine Lagarde said he was "totally confident". These relate to BNP Paribas (3.10% to 48.42 euros), Societe Generale (2.35% to 36.64 euros), Credit Agricole (2.64% to 9.07 euros) and Dexia ( 3.69% to 3.23 euros).

Other values to follow, EADS (2.02% to 16.40 euros), at which place the salon Fairnborough (south London) until July 25.Airbus will easily exceed its target of orders in 2010 and could set up 400 orders against 300 originally planned, said Tuesday John Leahy, marketing director of manufacturer, Reuters Insider.

The European Union has also announced Wednesday it would appeal the conviction of the World Trade Organization (WTO) on subsidies provided to Airbus.

The airlines, including Air France-KLM (1.43% to 10.06 euros) will also follow, while five air traffic controllers' unions have called a strike for Wednesday.

World production of crude steel increased by almost 28% over the first six months of the year, but the pace of growth continued to slow in June: +18% over June 2009. Analysts believe the slowdown will become even more acute in the months to come.Investors follow the impact that this announcement will have on companies such as ArcelorMittal (2.64% to 23.92 euros).

APRR (-0.02% at 53.91 euros) indicated that vehicle traffic had benefited in the second quarter of disturbances air and rail, as well as improved economic conditions. The group has published a quarterly revenue, excluding construction rose 5.8% to 491.5 million euros, with vehicle traffic rose 4.5% in the second quarter, in kilometers traveled.

Accor Laureate Award

The ball of results announcements or turnover continues: after-hours trade, Unibail-Rodamco will present its second quarter results.NRJ Group, Mersen (ex Carbone Lorraine), Cegid Sperian unveil them their turnover in the second quarter.

Accor (5.13% to 24.38 euros) has announced a growth of 5.1% of its turnover in the hotel industry in the first half on a comparable basis.The group earned a higher "backed" by its occupancy rate in the upper and mid-range and higher average prices in France, Germany and the United Kingdom.

The manager of nursing homes and clinics, Orpea (0.91% to 31.50 euros) achieved a turnover of 470 million euros, representing organic growth of 9.3% and confirmed its objectives Annual 2012.

Manitou (5.31% to 12.30 euros), a manufacturer and distributor of material handling, reported Tuesday a sharp rise in quarterly sales, but said the second half anticipate a slowdown in orders and possible impact of delivery on its turnover.

Hi-Media (-24.9% to 3.35 euros), publisher of consumer websites, has warned that its net profit in 2010 would be affected by restructuring.The group now expects an operating profit comparable to that of 2009 (16.5 million euros).

Vetoquinol (+2.4% at 26.04 euros), the veterinary pharmaceutical company, has published a turnover of 138 million euros, up 15% in the first half. The group expects to raise over 200 million euros to pursue its external growth.

Sword Group (4.54% to 24.66 euros) and reported sales of 47.2 million euros in the second quarter, up 7.8% as organic. The services company confirmed its objectives for 2010.

The recovery of steel distributor by IMS Jacquet Metals (1.93% to 29.6 euros) a share exchange transaction is now effective, IMS announced Tuesday a few days after getting the green light European authorities.The current CEO of Jacquet Metals, Eric Jacquet, has been appointed to head the new entity.

CGI Group, specializing in services in information technology and business process management has signed an outsourcing contract with Computer Systems Group distribution of electrical supplies, Rexel (1.82% at 11 , 45 euros). The contract covering a period of six years is 50 million.

How did the aircraft through the crisis?

Experts cabinet Alixpartner highlight the "resilience" rather remarkable aerospace facing a crisis which has "devastated most industries, in the words of Eric Bernardini, Associate Director. After three years of strong growth (+15 to +17%), the slowdown has been severe but the activity remained positive with an increase of 2% in the world. This, in an environment where credit was becoming scarce and expensive.

This resilience reflects the fact that the aviation industry is a long cycle that "smooth" dips and rebounds of activity.When the crisis broke out, the order books are well filled – they are between 6 and 7 years of work with Airbus and Boeing, for example – the U.S. defense budget remains high at over 600 billion dollars and companies will react quickly launching plans for reorganization to optimize their cost base. But the overall increase in activity concealed differences: the regional airline and business aviation have suffered more from the crisis in commercial aviation (aircraft above 110 seats).

What about 2010?

"Do not expect to find pre-crisis levels," warns Eric Bernardini. The first quarter of the year was marked by a 9% drop in shipments compared to the same period of 2009 with 261 aircraft confondues.Cela all categories, while new orders taken are not strong after the fall of 70% of last year.

Several negative factors do not advocate a resumption free. First, the defense budget at best stagnant in the West with a likely decline in the U.S. and cuts already adopted in France, Germany and Great Britain. This marks a break with the period 1999-2009. In ten years, this budget has increased by 167% in the USA, 104% in France, but 181% in Saudi Arabia, Russia 272% and 294% in China. "But in real terms, the EU budget has stagnated, it has instead increased in the rest of the world," the study said.

Then, weak clients in commercial aviation. "With 0.5% margin forecast by 2010, the airline business model is not profitable in the long term," said Thierry Down, Alixpartner partner in the firm.Majors are also increasingly threatened by the rise of new players from the Asia-Pacific region and Middle East policies that lead to acquisitions of new equipment and aggressive pricing as well as the installation in the landscape of low cost.

And in the longer term?

The aviation industry is expected, according Alixpartner remain a growth industry. Thanks to the strength of emerging markets in Asia Pacific and Middle East in the years to come. The study of new aircraft deliveries projected to increase 15% per year by 2028, three times faster than air traffic.

The contract will be subject to strong pressure on prices with the arrival of new competitors in particular on the lucrative segment of the short and medium haul routes.The C-Series from Canada's Bombardier and Mitsubishi MRJ Japanese between 2013 and 2015 and the C-919 Chinese Comac to 2017 (and perhaps also a future large-derived Embraer E-190) will break the duopoly of Airbus Boeing and their A 320 and B 737. The arrival of his new players posed with even more accuité the issue of repowering existing Airbus and Boeing or the launch of new devices.

The pressure on prices will be high on the international defense market, U.S. groups seek growth from outside their borders. And taking probably the way of acquisitions.

What lessons did from the crisis?

Aerospace has been facing the worst crisis of his violent history at a time when she changed her business model.Boeing led the way, followed by Airbus, opting for the outsourcing of whole aircraft to major partners who share the financial risk and industry (risk-sharing partners). The model is not fixed so far, but already he designed a new deal between manufacturers and suppliers of rank 1. "It is evolving towards a model where not only the charges and development will be shared but also the earnings. Some vendors provide penalties for delay if the programs of manufacturers are backlogged. This can be a risky gamble for the supplier but overall, the balance of power balances gradually ", explains Thierry down.

Result: 8.6% in 2009, the profitability of major equipment has become for the first time higher than that of manufacturers that spring to 6.2%.Overall, manufacturers have been penalized by delays in recovery of their new programs (B 787, A 380 and A 400M), which has cost them billions of euros and has weighed on their accounts. Mais ces chiffres globaux cachent à nouveau de grandes disparités et mettent en lumière la faiblesse des acteurs européens par rapports aux géants américains. "In our study, few major European suppliers are well placed. the winners are those who realize a significant part of their business in the United States as the British Cobham, "said Eric Bernardini. The French equipment already handicapped by a structure of costs in euros on a market where the reference currency is the dollar, are particularly poorly placed with margin levels that are almost the double.

It is therefore urgent to organize and optimize its cost structure.Some have understood like a Zodiac, which has returned to acquisitions and has balanced its business conducted in dollars and one conducted in euro. French SMEs are particularly vulnerable because they are too small and no financial base. "Some have understood that they must join forces and others not," note the experts at AlixPartners. In Aerostructures (elements that when assembled form the fuselage of the plane) there is urgency with four players in France (15 in Europe) against the giant American Spirit and subsidiaries of major Japanese companies Mitsubishi and Kawasaki.

Mergers and acquisitions will they return?

Yes, says the study. Especially since they have not stopped but simply slowed during the crisis operations from 238 to 156 between 2008 and 2009. In the first quarter of 2010, we are 51.The Americans who were most active on this front between 2005 and 2009 with 484 operations should continue to play outposts. If Europeans have been rather discreet in number of transactions in the period with the notable exception of Thales, they have been very active if we take the size criteria for acquisitions. Leader in this category, Italy's Finmeccanica. But in none of the categories cited by the study is EADS, the European giant who nevertheless want to ensure complete acquisitions in order to realign its business in the defense and security.

The Aerostructures segment very crumbled, electrical systems and maintenance and repair should experience the largest wave of consolidation, particularly in Europe. In total, the five main players in these three activities controlled only 40%, 40% and 27% market share.

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The garden party at the Elysee was it canceled too late? The caterers will they be reimbursed? Taxpayers will pay the note they? After the announcement of the cancellation of approvals under the Ministries of Interior, Overseas, in the prefectures and sub-prefectures, these issues are on everyone's lips. Especially since the member Rene Dosière (related PS) spoke for the receipt of an invoice 313 618 2009 euros. The debate, then fed by Ségolène Royal in an interview with the Nouvel Observateur, however, is minimized by the main actors of the case.

"There was no cancellation in the legal sense. These are the tenders that have been canceled. Today, nobody can say 'I lost the case, because no one had been chosen "slice Lars Bernard, vice president of Synhorcat, a leading professional trade."So there is no impact because in this profession, we do not prepare anything in advance. A caterer is not Picard, irritated the union representative.

Same story on the side of the Elysee usual caterers. "We were still at the stage of tendering. We filed our application and we expect the answer. We have therefore incurred no expenses, "said Francois Raynier, owner of upscale catering Raynier Marchetti, who denies the passage strengthened its team of 150 people in anticipation of the Garden Party. "150 is our average size," says he.

"From homemade

The prefecture also announced that the cancellations last minute should incur any costs because the buffets are mostly prepared in-house. "We use the kitchen of the prefecture," says one in Rennes.In the Sarthe, everything is "homemade" due to "credit limit". The few jurisdictions involving caterers explain – as is the case in Mayenne – they were still "at the stage estimates.

In the Alpes-Maritimes, the services of the prefecture are in this case state spending "very minimal" to "a few hundred euros": "We're pooling with the city of Nice and the General Council of Alpes-Maritimes limit spending from outside caterers, "says a spokeswoman.

Flexibility

Even if there had been a contract between two parties, there is no fixed schedule for repayment in the profession, making negotiations on a case by case basis between the provider and client Guaranteed payday loans. "It's the law of business but we always find common ground," says Bernard Bras.In case of cancellation, the situation remains manageable, "he assures," It is a profession without visibility. Sometimes some customers confirm the case only 3-4 days before the big day We are accustomed to this kind of situation. "

At the forefront of the controversy, the food critics temper this speech. According to them, traders are well advised not to claim compensation for the expected win lucrative contracts in the future. "It's flattering to prepare the buffet or the Elysee Matignon is a commercial asset, an honor, a good card," says Claude Lebey, editor and author of restaurant guides.

Rebound

The representative of Synhorcat still regrets the loss of activity represented by these cancellations. "We are talking thousands of hours of work.For the Elysee, the decision could also have been taken earlier this year when the budget is fixed ….

For the future, the profession remains optimistic. The idea of a snowball effect of cancellations is scanned. "On the corporate side, which represent nearly 80% of our business, we see a rather significant recovery from last year," says Lars Bernard. "These are not exceptional receptions for when the box is bad, do not 'do too much peter cap'. But when there is a quick turnaround, we must celebrate. This is happening today. " The other big market traders – that of individuals – is also on the mend: "over time, we notice that people continue to celebrate events," notes vice president of Synhorcat. The public sector, the smallest of openings, should be the one to be hit hard.

"End 2008-2009, business has plummeted because of last minute cancellations of contracts. In the worst of the crisis, some professionals have lost 40% activity, ensures Lars Bernard. 2010 is therefore a year of healing. Regarding cancellations, we are entitled to think that this will not be like that all year. "

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The possibility of staff mothers of three children to retire at any age, provided they have completed fifteen years of service, will be removed by the pension reform. 15,000 women each year experience at a cost of several hundred million euros. The purpose of this feature – contested by Brussels sees discrimination against male officers – has barely stirred the objection of the unions. They recognize a hint that these rules "natalist" dating from 1924 are no longer justifiable.

However, the method of extinguishing device is controversial. Women fulfilling the criteria required before 1 January 2012 may still benefit. But the financial conditions will be much less favorable for all those who file their application from 13 July, the day of presentation of the bill in the Council of Ministers.Article 18 provides in effect that from that date, it is the rules of retirement for the year of birth of the mother who count, not those of the year it has fulfilled the two conditions family size and length of service.

Protective provisions

Specifically, "So far, a woman born in 1962 and in 2002, had three children and fifteen years of service, could leave with the rules in force in 2002, before the reform Fillon said Brigitte Jumel (CFDT) . The amount of his pension was then strictly proportional to the number of years of contributions, divided by 37.5 years. If she filed her case on July 13 or after, these are the rules for the 1962 cohort will apply.Consider a calculation 41.25 annuities, with the reform announced last week, and especially a discount for all the missing years, as foreseen by the law Fillon.

The Secretary of State for Public Service does not deny these provisions but ensures that they are actually "protective". It is in effect six months from the filing of the application for retirement and the first payment of pension. And what are the rules valid at the time of liquidation, not when the application is submitted, that apply. That explains the entourage of the Secretary of State George Tron, without this clause "of 13 July," an official who filed his case last May, to go in November – a period when the law on pensions should be entered into force – would have been applied to the methods of calculation less favorable.It is therefore intended, provides the government to "cover" all mothers who wish to leave by the end of the year.

Provide access to fiber optics to every home by 2025. A project championed by Nicolas Sarzkoy in February, which would cost 30 billion euros. If the Secretary of State for the Digital Economy, Nathalie Kosciusko-Morizet, announced Wednesday at the fourth "Focus on the high speed" it had mobilized in 2011, about 7 billion euros over four or five years, it is far short.Recall that the need for public funding is in a range of 8 to 10 billion euros in five years.

Even with two billion euros loan from the general and the possible contribution of European funds for "a hundred million a year," the senator from Eure Hervé Maurey, to prepare a report on the financing of high Speed – the first version will be given to the Prime Minister during June – ruled yesterday that it will be difficult to escape a new tax, either on business or on consumers.

"We must find a tax with the broadest possible base for the rate is as low as possible," he argued.

Traders feel targeted by the tax

This ad is not to please operators, already cooled by the tax on broadcasting.At the outset, the secretary general of France Telecom, Pierre Louette has stepped into the breach at the meeting, suspecting that those "on which the tax will fall are always the same."

As for the alternative operators, represented by the assocaition Aforst, representatives denounced a measure that not n'impulserait development project, contrary to claims Hervé Maurey. This is not by reducing "the ability of investment" is encouraged operators operators, says the group.

In March, Martin Bouygues, head of the eponymous group, has raised its voice against the accumulation of taxes and regulation in general in the area.Its subsidiaries Bouygues Telecom and TF1 suffer, he said during the presentation of its 2009 results.

2 million households connected in 2011

According to Arcep, 80,000 French households currently subscribe to the optical fiber while 800,000 are connected to this technology that provides access to the Internet so much faster than ADSL.

Arcep expects more than two million households in France connected to the optical fiber in the summer of 2011.

Free starting to invest with France Telecom

In an interview with Le Figaro on June 2 last, Maxime Lombardini, the CEO of Free, said that France has a competitive environment for Internet broadband.

He said "France is ahead" in technology."France is at the forefront in Europe, thanks to a very successful framework that enables rapid deployment of fiber networks without digging sidewalks and minimizing interference in the condominium through pooling. "

Note that operators will invest together in the optical fiber. France Telecom has also launched an appeal to its competitors. Free has responded.

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The week begins on an auspicious in most markets in Asia. In the wake of the end of last week, particularly on Wall Street Friday evening ended on a net advance of the Nasdaq, investors approach the week with a mind divided between the few signs of easing from the macroeconomic front – fears U.S. employment, may slow in emerging – and persistence of tensions on the monetary front and Budget – austerity plans, national plan for stabilizing the euro area.

While places of Sidney, Shanghai and the Philippines were closed Monday due to holidays, the Nikkei in Tokyo gained approximately 1.6% to 9861 points in less than an hour of closing pushed particularly by Honda s make the award more than 3%.The group would reach an agreement with its Chinese supplier, enabling the Japanese automaker to resume normal work on Monday after a week of strike.

On the other cities in the region, the benchmark Hang Seng Stock Exchange of Hong Kong reverts to the threshold of 20,000 points to 20,047 points (0.88%). Elsewhere, the Seoul Stock Exchange gained 0.9% while in Bombay, the index yielded 0.8%.

On the foreign exchange market, the euro continues to strengthen. He traded this morning at 1.2183 dollars against 1.2077 dollars on Friday in New York. Against the yen, the euro also asserts upward to 111.91 yen against 110.65 Friday.

The strengthening of the euro leads to crude prices upward.In morning trade in Asia, a barrel of light sweet crude for July delivery gained a little over 80 cents to 74.59 dollars while Brent North Sea, with identical maturity, took 54 cents to 74 , $ 89.

The European Central Bank (ECB) has revised upwards on Thursday the euro zone growth for 2010, but reduced its estimates for 2011. This year, says the guardian of the euro, growth should be between 0.7% and 1.3%, against 0.4% and 1.2% previously. Exports should benefit the business area, "said ECB president Jean-Claude Trichet.

In contrast, growth should be adversely affected by weaker domestic demand in 2011 than originally planned. The ECB now expects growth understood in a very wide range from 0.2% to 2.2%, against 0.5% to 2.5% previously estimated. Probably the negative effect of harsh announced plans in recent days, including Germany and Spain.In this context, inflation is likely to remain "moderate", said Jean-Claude Trichet.

"We believe that the euro zone economy would grow at a moderate pace in an environment (…) unusually high uncertainty", said Jean-Claude Trichet. "The uncertainty and the level of growth is not writing, it also depends on us", European institutions and governments, stressed the central banker faxless pay day loans. The ECB "endeavors to be an anchor, an island of confidence."

The euro, "very credible"

The ECB president also did not comment on the fall of the euro seen in recent weeks. The single currency, he hammered a currency is "very credible".He did not give further details regarding the buyback of government bonds in place last May in order to guarantee liquidity in a market completely frozen. The ECB has bought for 16.5 billion euros of bonds the first week, 10 billion for the second week, then 5.5 billion for the third, said only Jean-Claude Trichet.

The ECB president was pressed with questions about this decision heterodox. Done rare, Axel Weber, the German member of the Governing Council of the ECB, it is even publicly opposed. Jean-Claude Trichet reiterated that there was "a currency, a central bank, a board of governors," and therefore "a decision and an explanation for this decision" .

Finally good news for Airbus and its flagship plane, the A380. The last contract was conducted in January 2009 when Air Austral has ordered two A380 single-class (840 seats eco). Since then … nothing. The contract signed by Emirates giant comes as the program switches from a phase marked by a painful industrial ramp-up phase of maturity and control of industrial processes.

This, ten years after the decision of both industrial policy by France and Germany to launch the A380 as part of the creation of EADS, parent company of Airbus. And two and a half years after the first delivery of the superjumbo to Singapore Airlines, the launch company.In recent weeks, "there's better on the forehead in the euro-dollar, even though its effect will be read in the accounts in the medium term, there is better on a better control programs, production rates will increase (for the A320 and A380, Ed), thereby supporting the generation of cash. The giant command adds a bit more "positive" about the title, "Yan Derocles development, aerospace analyst with Oddo who recently moved to purchase the title.

Price increase expected

Airbus, which had produced and delivered ten A380 aircraft in 2009 (and thirty since October 2007) will double the pace this year. "We have good visibility and for the first time in the first quarter, the program has been consistent with expected costs," said Louis yesterday Welsh, president of EADS.Costs too high, since this year, Boeing will lose money on each aircraft produced no fax pay day loans. But Thomas Enders, the Airbus chief, said that "from 2012, we should begin to win," so that the A380 will contribute fully to the operating result (ebit) of Airbus from 2014 . This, taking as a basis for calculating a euro-dollar parity of 1.30. The evolution of the two currencies in the medium term will be crucial.

In terms of business strategy, Airbus is also a turning point. It should trigger a second wave of orders in conquering new customers.The contract giant Emirates is great, but it comes from a company already convinced by the A380 and Airbus has always maintained in good and bad times.

This contract allows, however, John Leahy, marketing director, put pressure on companies that are slow to make the leap. The delivery of the A380 are now virtually come to an end until 2017. If a company wants the A380, it would have incentives not to expect too much as far as prices go up. But, argues Airbus A380 will be a must. The device has proven its economic and ecological efficiency, as evidenced by the feedback of its first customers. Airbus forecasts a market of 1,500 aircraft by 2030 for very large aircraft. Without rival, the A380 should prevail on this market and be a cash machine on the exceptional duration of the program, or forty years.

Sperian Protection Company, specializing in personal protective equipment, issued a statement Monday announcing the takeover bid (OPA) friendly Menelas France SAS, owned by the investment fund Cinven, is extended until on May 21, 2010. The statement also indicates that Sperian has received other expressions of interest "proposals, serious (…) purchase at valuation levels significantly higher than that of Menelaus France SAS. For analysts of CM-CIC, "everything is possible".

Cinven announced last March 31 a proposed takeover bid at 70 euros per share, valuing the company at 536 million euros. The offer is considered "very generous" by analysts at Natixis, given in particular the good results of Sperian first quarter of 2010 (the organic revenue was up 16%) and developments in the euro dollar-positive group.

The bid has been received Cinven Favoral by the two shareholders of Sperian, Essilor and Dalloz, which together hold 28% stake Sperian easy payday loans. In contrast, the third shareholder, the fund Governance for Owners, which owns 10% stake, had expressed doubts about the offer price, equity and the "treatment of minority shareholders."

The names of two U.S. companies are cited

According to SocGen, a cons-offer could be made by U.S. companies like Honeywell and Kimberly-Clark have "a significant advantage in view of the euro / dollar." Societe Generale expects an offering price of between 80 and 101 euros.

The bank now recommends to "buy" the title Sperian, she previously advised to "keep".Societe Generale is one of over 90 euros on Sperian.

Meanwhile, the title Sperian continued to climb, showing the largest increase in the Paris Stock Exchange on Tuesday to 10.60%. Around 11:30 am, the share rose to 87.04 euros, a price above the offer of Cinven, a market up 1%.