News Headlines

Boeing has not ruled out Tuesday the possibility of reducing the price of its bid to build 179 tanker aircraft for the U.S. army, a contract estimated at 25 billion dollars (20 billion euros) it argument once again his great European rival EADS.

U.S. Air Force is currently reviewing applications from two groups, due by July 9, and may request further information.

This is the third time that the Pentagon conducts the tender to replace its fleet of KC-135, whose average age is around 50 years.

The contract is for several years among the priorities of capital projects for the Air Force.

The government usually requires a modified offers and if so, "we will respond," said Dennis Muilenburg, head of Boeing's weapons industry, at the summit organized by Reuters on the aviation and defense Tuesday in Washington.

"Our intention is to continue to offer a winning bid," he said in response to questions about the possibility of a reduction of the bid price at the Pentagon."Beyond that, I can not make specific comments until we have no specific requests of our customers."

The tanker is "a national priority and Boeing is ready to respond by taking into account the priority," he added.

Guy Hicks, a spokesman for the North American branch of EADS, has reacted to these remarks by explaining that an "interactive process with the customer" was committed.

"We have submitted a convincing proposal that corresponds to our trade policy," he said in an email. "We have the most capable tanker in existence.Point. "

The Air Force plans to issue its final decision later this fall, theoretically no later than December 20.

Dennis Muilenburg said that Boeing should decide on a possible revision of its offer price based on the interests of all its stakeholders.

"We will make decisions financially responsible," he added.

The first tender for the contract to supply ships failed in 2004 after a scandal that led to prison the number two arms purchases from the Air Force and a former chief financial officer of Boeing.

In 2008, the Pentagon awarded the contract for 179 aircraft to a consortium of Northrop Grumman and EADS, but the decision was overturned after an appeal by Boeing.

Germany wants to sell as soon as possible its stake in Commerzbank, the second largest bank, said German Finance Minister Wolfgang Schäuble in the newspaper Rheinische Post.

"The sooner we're out, the better," the minister said in an interview published in the weekend edition of the German newspaper, adding that the bank had recently posted a "pleasant change .

"We do not intend to retain ownership of Commerzbank for a long time," said Wolfgang Schäuble.

The institution hopes to begin repayment no later than 2012 funds injected by the Stabilization Fund financial markets (SoFFin).

After acquiring a 25% stake in Commerzbank for 1.8 billion euros during the financial crisis, the German government purchased 16.4 billion euros of shares without voting rights of the bank to stabilize institution's own funds.

The Spanish bank Santander has agreed to buy 318 branches from RBS in the UK for about 1.65 billion pounds (1.98 billion euros).

The Spanish giant has also announced it would inject 4.46 billion pounds of capital into its UK business to "support the organic growth and inorganic and finance the reorganization of group companies in the United Kingdom."

Santander is considering an IPO for a portion of its UK business, told Reuters sources familiar with the matter.The product of such an operation would allow it to recover some of his investment.

Santander was in exclusive talks with RBS having long been considered the frontrunner to buy these agencies, which should enable it to develop its activities towards small and medium enterprises.

Santander said the recovery of this agreement could be adjusted to the date of its completion, expected in December 2011.

The price represents a premium of 350 million pounds compared to the net assets, valued at 1.3 billion pounds in late 2009.

"Santander buys assets at very reasonable prices in the countries it already knows where it already has a presence, technological infrastructure, which makes easier the realization of synergies and it brings out a higher return on equity , "said Arturo de Frias, an analyst at Evolution Securities.

The Spanish group made nearly 17% of its profits in Britain, against 22% on the Spanish market of retail banking.

Nokia reported a sharp drop in earnings in the second quarter, increasing a little more pressure on his ailing CEO, Olli-Pekka Kallasvuo.

The Finnish group, which manufactures mobile phones sold in three in the world, proceeded to the quarter two profit warnings and a reshuffle of his leadership when he barely keep pace with Apple in the smartphone.

We learned this week that Nokia sought a replacement for Olli-Pekka Kallasvuo, who has spent more than half his life in the company.It could even be removed from duty as this month, The Wall Street Journal.

A Nokia spokesman declined to say after the publication of results if the Director-General retained the support of the board of directors.

Aged 57, Olli-Pekka Kallasvuo, who is married to a longtime advocate of Finnish group, has called for an end to the rumors about his departure.

"There have been many rumors about my position on myself, in recent weeks and it is not good for Nokia and should be completed one way or another," he said on TV channel CNBC.

At 13:15 GMT, Nokia shares gained 3.2% to 7.215 euros while the Stoxx 600 index of European technology stocks took 1.5%.

"The issue of change management is more important for the course of action that results in time," said Thomas Langer, an analyst at WestLB.

Competition intensifies

Earnings per share excluding exceptional items fell 27% as expected to fall to 0.11 euros per share.

Nokia had warned June 16 that sales and profits of its mobile division would be lower than what was previously anticipated, the group has been forced to sharply reduce its prices to meet competition from the iPhone Apple and phones using Google's operating system.

Olli-Pekka Kallasvuo, who is known as "OPK" within the group, said that Nokia was counting on the N8, its first phone using the new Symbian software, which should give users a superior experience for all other smartphones until been manufactured by the company.

"OPK said that the N8 will bring the best user experience ever experienced with Symbian.This is good but what about this experience unmatched by the competition? That's what matters and we do not think it will be enough, "said Carolina Milanesi, analyst at Gartner.

Nokia said its operating margin on its mobile phone division fell to 9.5% in the second quarter and warned that this trend may continue in the third quarter.

In this case, the group expects a non-IFRS operating margin of its mobile division and service of between 7% and 10% the third quarter of 2010.Nokia also expects that its market share by volume remained stable in 2010 compared to last year.

"What is slightly worrying is the margin guidance for Q3 (…) Now, everything depends of the fourth quarter. Competition is intensifying," said Kulbinder Garcha from Credit Suisse.

The N8, which should be commercialized at the end of the current quarter, will compete with Apple's latest iPhone and google-phones "Samsung and Sony Ericsson in the fourth quarter, which is strategically with the Christmas holidays.

Nokia shares tumbled about 20% since the beginning of the year, sharply underperforming the index of technology stocks which gained 7%.

The U.S. Abbott Laboratories has reported quarterly earnings slightly better than expected, driven by strong growth in sales of prescription drugs, medical devices and nutritional products.

Net income for the second quarter was virtually unchanged at 1.29 billion dollars (one billion euros), or 83 cents per share.

Excluding items, earnings in the quarter rose 13.5% to $ 1.01 per share. Analysts on average expected $ 1.00 according to Thomson Reuters consensus I / B / E / S.

Worldwide sales increased 17.8% to 8.82 billion dollars, a result consistent with the consensus that almost amounted to 8.84 billion dollars.

Sell Picard Frozen wants to seduce his prospective buyers by promising a steady pace of store openings in France, increased its "share of stomach" by the customer and the "seeds of growth" that could include plant in Sweden .

Estimated at around half a billion euros, the French leader in frozen, advised by Rothschild, must convince the private equity funds that focus on the record already with over 850 stores under his belt and a number Business of 1.15 billion euros in 2009, the best in terms of growth is still to come.

Among potential buyers, the names of investment companies as HVAC, Lion Capital, Bain, Eurazeo or Clayton Dubilier & Rice are cited.

The current majority shareholder, the fund BC Partners, has entered the capital in 2004 when the group had almost 600 stores.Some analysts doubt that the expansion of the group, whose range of products ranging from frozen vegetables for basic dishes upscale, can continue indefinitely.

The CEO of the group receives for his part no signs of market saturation frozen.

"There is still potential for more than 300 stores in France", or growth for seven or eight years at the current pace of opening, said in an interview with Reuters Philip Pauze.

The former executive director of Carrefour said they did not fear the "cannibalization" of sales from its stores – unlike what happened for example to the Starbucks cafe – thanks to extensive studies of "geo-marketing.

If the sign to flake advantage in France of a comeback of local shops, it also faces competition from large retail groups such as Carrefour's former owner, who reinvest the inner city through small surfaces.

SHARE OF STOMACH

"We want your food to make purchases at more than Picard in a supermarket at the fish that the local baker or your neighborhood because our competitors were also artisans," says Philip Pauze who should win the "shares stomach "for its customers and ensure the growth of existing stores.

Philip Pauze is currently facing many funds to mount the third LBO (leveraged buyout) in the history of Picard, but already the arguments he rode will expand to fit the fourth in a few years.

"The strategy in the next three years is to continue to develop in France while planting seeds abroad that will generate buzz for the fourth LBO (leveraged buyout)," said he, Assuming that Picard could eventually attract a large distribution group or a multinational agribusiness.

The key to this new step would be to prove that the group can export its model abroad and in several countries.

For if the mark has become essential in urban France, some professionals are questioning his ability to conquer rural areas and especially the rest of Europe.

The company wants to continue its development in Italy where it has 30 stores and aims Turin, Milan and also Rome, "a city that consumes a lot of frozen.

The refrigeration specialist has chosen the North of Europe as a new stage of its expansion and more specifically Sweden, because of the palace "refined" its consumers.

"It is a good market to take more, even if there are not many people, there are 50-60% higher than consumption in France in the frozen," enthuses CEO evoking consumption "huge" country's ice.

Belgium is also seen as a natural market, especially in Wallonia and Brussels, but the market size is limited to the group that there could still open a few stores.

Picard could also try to find their way into North America, with priority given to Canada, because of existing cultural links with the six million French-speaking countries.

The methods of making and release of stress testing banks continued Tuesday to divide the states of the European Union, which will continue discussions on this subject in the coming days.

Meeting in Brussels on the occasion of the monthly meeting of Ecofin, the finance ministers of the Twenty-Seven have reported an agreement in principle to have the greatest possible transparency in the publication of test results but no have not provided clarifications on the exact criteria that will be made public.

"Introducing stress test, which was held this morning and repeated by the Commission, Ministers, Central Bank, it really will give the greatest possible transparency," said the Belgian minister Finance Didier Reynders, on behalf of the six-month presidency of the European Union.

"This is the reason we have confirmed that States were ready to respond with action if necessary to consolidate the position of either institution," he added.

Nearly one week after publication by the Committee of European Banking Supervisors (CEBS) from the list of 91 banks that are under the stress tests and outline the options chosen, the exercise remains unclear.

According to several European sources, several countries have expressed reluctance to publish certain ratios obtained in these tests.

PUBLICATION IN TWO TIME

France, in a contribution to the work of the Economic and Financial Committee (EFC), the body which prepares the meetings of the Ecofin council, has asked these days in particular the question to reveal whether or not the exposure of banks to sovereign debt ., "said one of those sources.

She also stressed the difficulty of harmonizing one institution to another to calculate the ratio of Tier commitments of a bank compared to its equity "hard".

Finally, a ratio to take into account the exposure of banks to a potential liquidity shock is also one of reflection and discussion with other countries, "said this source.

Regarding publication, it will be done in two stages, Didier Reynders said: July 23, the consolidated results of the 91 banking groups will be published then, within two weeks, institutions with branches of other countries will detail the results unbound.

Asked how he decided whether a bank will succeed or not the tests, the Commissioner of Economic and Monetary Affairs, Olli Rehn, has said his side should be that banks are resistant to the criteria individually, but also in whole.

"All this will be covered by stress testing," he said.

These discussions around the criteria for publication are particularly difficult and sensitive because they can greatly alter the ranking between banks need recapitalization and healthy banks.

"Everyone looks at his door (…) And everyone has their own definition of transparency," said one diplomat.

TECHNICAL DISCUSSIONS

Didier Reynders said the CEf had been instructed to continue technical discussions to coordinate and organize the publication of results.

"There is no problem on the selection (criteria).It is simply a problem of coordination, ensuring at the same time to publish all the figures, "he said.

Monday, after a meeting of the Eurogroup, the French Minister of Economy Christine Lagarde, said that several criteria had been detailed by ministers.

"These include situations are very stressed in higher CDS (credit default swaps) and spreads," noted the minister, while noting also that the deliberations and discussions would continue until the eve of publication of results, scheduled for July 23.

"Our work will continue until July 22.There will also Teleconference (finance ministers) that day and the conversations will take place until the last moment, "she said.

Asked about possible bank recapitalization, the minister said several countries had "underfoot", including France, Spain or Germany, which plans to support the sector, introduced at the height of the crisis in late 2008 are still active or can be reactivated.

The European Union has no lesson to receive from protectionism in the United States on the regulation of hedge funds and proposals for cooperation from U.S. authorities on this matter are not acceptable, said Friday Jean-Pierre Jouyet.

In an interview with Reuters, the chairman of the Financial Markets Authority (AMF) also highlighted that the opacity has not declined in recent months and that Europe must address this problem if it does not become dependent on the United States in the matter.

"Americans are willing to cooperate with Europe on the issue of hedge funds since there will be a test or investigation. This is tantamount to limit cooperation between Europe and the United States only to event of breach of rules.It is not enough, "he says.

"There would be no overall supervision agreement between the SEC (U.S. Securities and Exchange Commission) and the new European supervisory authority.The U.S. proposal is not acceptable, "he flies into a rage.

The EU is torn over a year on the directive ISA (Alternative Investment Fund Managers), which aims to regulate the activities of managers of hedge funds and private equity groups in Europe.

Negotiations break down in particular on the question of whether to allow the managers based in third countries to sell their funds via a "European passport" in exchange for registration and more transparent.

The U.S. treasury secretary, Timothy Geithner, was terminated in early April the protectionist nature of regulation envisaged by the EU.

For their part, the Americans are considering similar legislation for the "hedge funds" outsiders, they intend to submit a registration, reporting and tax obligations.

"They therefore exert a monitoring on all the European funds of this type. And we cede to charges of protectionism while on these subjects here, most protectionist measures are taken to the United States.Europe has no lesson to receive from the Secretary of the Treasury in terms of U.S. protectionism, "said former Secretary of State for European Affairs.

RISK OF DEPENDENCE

Jean-Pierre Jouyet further considers that the opacity in financial markets has declined since no one and that Europe must act to avoid dependence on the future of the United States, working to reduce .

"There is no slowdown in the opacity and fragmentation of markets," he said.

"We are no longer able to monitor than half of the transactions," he adds.The other half takes place on unregulated markets, OTC or as big as 'dark pools', European authorized by the Markets in Financial Instruments Directive of 2007.

"That is why the issue of compensation and organization of markets is central.I see that our American friends the deal, probably more quickly and more efficiently than us, "he adds.

He advocates a revision of MiFID, to make up the United States for transparency and market organization.

"It was shot in the foot by the Americans themselves who have noted the issue and are taking back the things in terms of transparency, market organization, etc.." He said.

"The choice is simple: either we reform quickly and deeply this directive is you will end up with a new dependence on the U.S. because we need to adopt their system of organization, compensation, infrastructure since they treat the subject more quickly than us. ".

The Nikkei closed up 2.76% Thursday in favor of upbeat earnings outlooks from State Street, bodes well before the season results, especially as investors consider too the recent decline in spot Tokyo.

The Nikkei gained 256.09 points to 9,535.74 points and the broader TOPIX, took 19.51 points (2.32%) to 861.02 points.

State Street, one of the largest institutional investors in the world, announced that its second quarter results would exceed expectations.

This ad has supported the Japanese banking sector.Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group jumped 3.38%, respectively, to 428 yen, and 2.96%, to 2,679 yen.

The optimism generated by prospects of State Street on the quality of the upcoming earnings season has also benefited the exporters.

The semiconductor equipment supplier Tokyo Electron, the specialist digital cameras Canon, the manufacturer of semiconductor Advantest, and automaker Honda Motor have thus gained between 3.3 and 6.03%.

The Nikkei closed up 0.77% Tuesday, rebounding from a low of seven months in favor of including the maturity of Japanese government bonds on Tuesday, leading investors to postpone the actions, even if caution remains the watchword.

The Nikkei gained 71.26 points to 9,338.04 points and the broader TOPIX, took 10.35 points (1.24%) to 847.24 points, despite the renewed investor caution.

The weaker yen, following the remarks of the former chief economist of the International Monetary Fund (IMF) Kenneth Rogoff, referring to the beginning of a weaker housing market in China that could affect the banking sector and the economy, encouraged exporters.

The semiconductor equipment maker Tokyo Electron, the specialist digital cameras Canon and carmaker Honda Motor have thus gained between 0.42 and 2.19%.