US & World News

The Nikkei closed up 0.57% on Friday, supported by recent U.S. macroeconomic statistics found promising, although its gains have been limited by investor caution before the announcement of monthly figures of employment in the States USA.

The Nikkei index closed at 9,114.13 points and the broader TOPIX, took 0.52% to 823.70 points.

The unexpected recovery of promises in real estate sales and falling jobless claims in the United States has reassured investors about the state of the global economic recovery and leveraged buyouts of overdrafts.

The higher growth forecast of the European Central Bank has also supported the upward movement of the market.

Groups exporters have particularly benefited from this situation. Canon and Sony have taken and 1.28% respectively and 2.39%.

However, the distributor Fast Retailing has lost 1.2% after announcing a decline in August from 9.3% of sales on a comparable basis of its Uniqlo brand.

Oil prices have come down sharply on Tuesday on the New York market, signing their second straight session of declines and displaying the entire month of August, their first monthly decline since May.

The October contract on the U.S. light crude ended down $ 2.78, or 3.72%, to $ 71.92 a barrel on the New York Mercantile Exchange.

At the time of closing in New York, a barrel of Brent crude fell by $ 2.11, or 2.75%, to 74.49 dollars.

Throughout the month, a barrel of crude oil shows a decline of 7.03 dollars, or 8.9%, the largest decline in percentage terms since May

Oil prices are hurt by concerns about slowing growth, weak demand and rising inventories.

"The volatility associated with the end of the month has lowered future today," said Mark Waggoner of Excel Futures.

Traders now await the figures of the American Institute of Petroleum on a weekly inventory in the U.S. that must be disclosed in the evening.

Spanish airline Iberia has reported an operating loss Friday in weaker than expected due to higher demand for passenger transport and air freight to offset the negative impact of the ash cloud of April.

Iberia, which plans to merge with British Airways by the end of the year, said he had lost 72 million euros in the first half, against a consensus at 88 million euros.

"Aside from the expected recovery in air traffic, which has really supported these positive results was the significant improvement in yields," commented Elena Fernandez, an analyst at Ahorro Corporacion Spanish broker.

Yields of Iberia, ie the revenue generated per passenger on each mile flown, grew 7.8% in the first half.

Iberia estimated 20 million losses generated by the interruption of traffic caused by the ash cloud of April.But analysts say the real impact is not necessarily so bad.

"They could also sell tickets more expensive during this period," said Elena Fernandez.

In the second quarter alone, Iberia posted a net profit, ending six consecutive quarters of losses.

British Airways, Air France and Lufthansa said they expect to return to equilibrium at the operational level in 2010.

Title Iberia, which took 35% since the beginning of the year in the hope of a successful merger with BA, was down 0.82%) 2.550 Euros while the Spanish stock market index lost 0 27%.

The turnover of the company grew by 2.8% to 2.23 billion euros in the first six months of the year, supported by a rebound in demand for business class and air cargo, while that net losses were reduced to 21 million euros, the company continues to apply stringent cost controls.

The prediction of analysts polled by Reuters gave a turnover of 2.196 billion euros and a net loss of 41 million.

Schneider Electric has raised its margin target for 2010 after the publication of a double-digit growth in sales in the second quarter thanks to the performance of emerging countries which still support the group in the second half.

In this context, the company says it should achieve in the second half of the year an increase in organic revenue "broadly comparable to that of the first half.

Schneider Electric is now an EBITA margin of around 15.5% before restructuring costs and impact of consolidation of Areva Distribution.

So far, the group anticipated an improvement in EBITA margin of approximately 14% before restructuring costs and impact of integration Areva Distribution, against 12.9% in 2009 and 16% in 2008.

Schneider, the world leader in low voltage electrical equipment and number two for medium voltage, has reported an EBITA before restructuring and integration charges of Areva Distribution of 1.301 million euros in the first half, up 44%.

Its margin is increased 3.6 points to 15.2%.

The net result has been doubled to 735 million euros.

Turnover increased by 10.5% in the first semester of € 8.571 million (6.4% organic), including 4.661 million in the second quarter, organic growth of 10.2%.

Jean-Pascal Tricoire, chief executive of the group, said he has received "the diversification of (its) end markets, industrial markets and data centers were the first to rebound."

He added in a statement that "the new dynamic economies continue their solid with double digit growth.

Schneider Action closed Thursday at 86.4 euros, giving a market capitalization of around 23 billion euros. Since the beginning of the year, the stock has gained about 5.7% after being awarded more than 54% throughout 2009.

Danone issued a first-half operating result slightly better than expected and has carefully noted the objective of sales growth for the full year, considering that the crisis would continue to weigh on European consumption.

The food group, which focuses on further development of emerging markets, now provides that its comparable sales will grow at least 6% when he was previously an increase of at least 5%.

He always bet on an increase in operating free cash flow in historical data at least 10% and stability of its operating margin in 2010 compared to 2009.

"We continue to invest in countries, products and brands with strong potential: Child Nutrition in Asia, fresh dairy products in the United States, Brazil, Russia, where Danone and Unimilk merger provides us with very significant growth opportunities long term, "said Franck Riboud, CEO of Danone.

In a statement, he confirms that water and medical nutrition, the group continues "to identify potential for growth in emerging markets and through new models."

At the same time, Danone has continued its efforts to improve productivity, says its chief executive.

The action Danone, with brands ranging from yogurts Actimel waters of Evian, lost 2.23% to 45.285 euros at 9:38, while the CAC 40 0.93% but took the DJ Stoxx European " Food yielded 1.13%.

Commenting on the first half, Francis Priest, CM-CIC Securities, believes they are "good bill" but noted that Danone "remains cautious on the S2 due to a persistently difficult".

The analyst believes that the decline of the title, which takes place in small volumes, reflects disappointment with the failure to raise the target group at the ROC, which the market had anticipated.

INCREASE IN VOLUME OF THE 2ND QUARTER 8.9%

On a comparable basis, the EBIT of Danone rose 2% on a comparable basis to 1280 million euros over the period January to June, showing a margin of 15.30%.His current net income was up 10.1% to 848,000,000 euros.

Turnover amounted to 4.386 million in the second quarter (+6.9%) or 8.364 million in the half. Excluding the effects of exchange rates (+7.0%) and changes in scope of consolidation (+0.1%), it grew 6.9% on a comparable basis in the second quarter.This organic growth is divided into volumes rising by 8.9% and a decrease in value by 2.0%.

Sales rose only 1.4% to 2,420 million euros in Q2 while they increased by 15.3% to 635 million in Asia and 15.9% in the rest of the world to 1331000 .

The consensus Thomson Reuters StarMine, the operating result was expected of 1.265 million euros (+5%) and turnover of 8.261 million (+9.8%), representing an operating margin of 15.3 %.

The fresh dairy products division, which represents 55% of sales in Q2, increased its sales by 6.6% to 2.436 million euros over the period. On the entire first half, the operating margin of this sector appears to 13.94% (-94 bps).The volume effect was positive at 9.3% but the negative value effect of 2.7% due to price reductions made in several countries, Danone said.

The division "Water" (19% of sales) has seen its sales grow by 4.8% to 828 million while its margin declined 75 basis points over the first half to 13.70%.

Sales of the "Child Nutrition" (19.5% of sales) rose 8.7% to 857 million (margin down 27 bps in the first half to 19.19%).

Finally, those of the pole "medical nutrition" increased by 10.8% to 265 million (margin decline of 86 bps to 19.90% in the first half).

Free cash flow from operations increased 34.9% to EUR 858 million, or 10.3% of sales in the first half, against 636 million and 8.5% of sales from the same period of last year.

In turn, capital expenditures totaled 275 million euros, or 3.3% of turnover. This level is below the annual forecast, ranging from 4% to 5% in sales due to a timing effect, Danone said.

Net debt amounted to 3180 Danone million euros in the first half.

* Danone Graph comparing to its competitors:

here

JPMorgan Chase reported better than expected results in the second quarter with a decline in provision for credit losses, something that gives hope to investors that things return to normal in the bank.

However, the action declined substantially over 2% as investors aggrieved by his assessment of economic conditions.The KBW bank index was weakening even more, 2.45%.

Moreover, the bulk of quarterly earnings from revenue sources that are not stable, such as reduced bad debt provisions, while in some segments, like the conventional mortgage, there are more and more bad debt, which bodes ill for banks such as Citigroup and Bank of America, which publishes Friday.

Income trading at JPMorgan has declined but it is better than expected, which is perhaps a positive sign for banks such as Goldman Sachs Group and Morgan Stanley, who announce their quarterly results next week.

"The results are just adequate and there is a little less than it seems," said Doug Kass (Seabreeze Partners Management).

The outstanding loans of the bank has continued to decline, showing it is reluctant to risk new loans yet.She says she can not yet assess how the reform of financial regulation will affect its accounts, information, precisely, investors were waiting impatiently.

ONE LESS OPTIMISTIC DG

The CEO Jamie Dimon appeared less optimistic about the future than it was in the first quarter, when he said that the economic recovery of the United States could be solid.

"It is too early to measure the improvement that we observe from now" in the consumer credit, which yields "are unacceptable", he has merely stated Thursday.

"We do not know what will happen to house prices and we believe we are not alone," he later told analysts.

The bank reported a net profit of 4.8 billion dollars (3.7 billion euros) or $ 1.09 per share, against 2.7 billion (28 cents per share) for the corresponding period last year.

Net income for the investment bank fell 6% to $ 1.38 billion. The second quarter was marked by markets that have evolved sawtooth, alternating example falls in the stock exchanges with peaks rising in the bond market.

The income earned by the JPMorgan bond, commodity and currency has dropped 28% to 3.56 billion.The bond trading has been a major driver of earnings of all major banks.

The bank posted a windfall of $ 1.5 billion, or 36 cents per share, due to the reduction in provision for credit during the quarter.Excluding this benefit, the result announced by JPMorgan – 73 cents – more than analysts' consensus that emerged at 67 cents per share, according to Thomson Reuters I / B / E / S.

The bank does not renew every quarter this year discount stores but Jamie Dimon said it was the thing that needed to be done during this quarter.

He said that the bank has a solid liquidity, having repurchased $ 500 million of its shares in the first half, but noted that the bank would be more certain of its capital before increasing its dividend.

Many banks want to raise the dividend but regulators see it a bad eye, which makes more likely redemptions.

The bank said its losses on consumer loans, mortgages, credit cards and other debts had declined in the second quarter both compared to the first three months of the year versus the second quarter 2009.

JPMorgan has finally reported a charge of $ 550 million charge related to the British banking bonuses. She had previously launched a warning on that charge, saying it would be an "important" in the quarter.

Aon Corp., the world's first insurance broker, announced Monday it would buy the company for HR services to Hewitt Associates, about 4.9 billion dollars (3.9 billion euros) in cash and stock.

The offer represents Aon Hewitt $ 50 per share, a premium of 41% over its closing price Friday.

The transaction will allow Aon to gain a foothold in the area of human resources and benefits outsourcing and compete and Mercer, a subsidiary of Marsh and McLennan rival.

Aon plans to merge Hewitt with his own business consulting and outsourcing and expects an annual turnover of 4.3 billion dollars for the new entity to be called Aon Hewitt.

Russ Fradin, CEO of Hewitt, Hewitt will lead Aon.

Aon expects the transaction will have a positive impact on its performance in 2011 and 2012 and expects about $ 355 million of cost reductions in 2013, mainly administrative.

It is the second major operation in a year in the area of the board after the merger between Towers Perrin and Watson Wyatt for $ 3.5 billion, which gave birth to the number one global human resources consulting.

Aon intends to fund the acquisition with a bridge loan of 1.5 billion dollars and a bank loan of one billion dollars.

The action of Hewitt jumped more than 30% before the official opening of trading after closing Friday at 35.40 dollars at the NYSE. Aon closed at 38.34 dollars.

More than six in ten French (63%) feel negatively action of Nicolas Sarkozy since 2007 on social policy, against 34% positive, according to a CSA poll published Cap Friday, June 4 by the Journalists Association of social information (AJIS) and DomPlus. When they think about the action of the President of the Republic since 2007 in social policy, 29% of the French as "very negative" and 34% "fairly negative", while 3% are "very positive" and 31 % "fairly positive". They have been 3% did not comment.

Read about our investigation: Why Sarkozy's policy is so unpopular

When asked specifically about various fields is in terms of purchasing power that the French seem most critical: More than three quarters (76%) perceive the action of the Head of State as "rather negative", only 18% consider it "somewhat positive".For a majority of French, is also rather negative opinion on the fight against unemployment (68% against 27%), the fight against poverty (69% against 26%), the incentive to work harder (60% cons 36%), dialogue between management and unions (57% against 30%, 13% did not). Concerning the effectiveness of the minimum service in transport during strikes, the action is seen as "rather negative" to 48%, against 40% (12% did not).

About the pension reform, only unions inspire "somewhat confident" a majority of French people (54% against 42% who have "not much confidence"), according to the poll. In contrast, over two thirds (67%) were "not much confidence" in the patronage of the reform, against 26% experiencing more confidence.At 64%, the French have not much confidence in Nicolas Sarkozy to reform, against 32% who tend to trust.

The leftist opposition also inspires rather not trust a majority of French, but to a lesser extent (55% against 38%). Of the decisions taken by the President to deal with the crisis, 49% of French people consider them bad, against 47%. Nearly one in two French (49%) said the French company less united than three years ago, while 37% say "neither more nor less" and 11% supportive.

The survey of the CSA institute and Cap for Ajisai DomPlus and was conducted by telephone 19 and May 20 from a nationally representative sample of 1,000 persons aged 18 years or older, constituted under the quota method.