Hot Economic News Releases

Ebay announced Friday that the Court of Appeal of Paris asked to pay LVMH 33 million euros in the American group in the context of infringement case between the two companies.

The online auction site had been sentenced in June 2008 by the Commercial Court of Paris to pay a total of 38.6 million euros to repair luxury group for dissemination and distribution of counterfeit perfume out of approved circuit.

Ebay does not detail the decision of the Court of Appeal but the Chief Executive in France, Yohan Ruso, said in a statement that the injunction against the U.S. group has been "reduced in scope" .

LVMH believes his side that "the principle of responsibility, this decision confirms the decision of 30 June 2008 by the Commercial Court of Paris.

The group emphasizes that the Court condemns eBay to pay $ 5.7 million in damages and interest and open "the possibility for applicants to hire additional remedies in foreign courts for compensation for damage suffered in their territories.

The Commercial Court had held late June 2008 that eBay had committed "serious misconduct by failing in its obligations to ensure that its activities do not generate illegal acts."

Despite the appeal of eBay, the court ordered the provisional enforcement of financial sanctions.

It was the first trial of this magnitude on the sale of branded products on the internet. The court had held at first instance that the auction site could not hide behind the fact that he was only putting in connecting buyers and sellers.

Before LVMH, Hermes also had won a ruling against eBay but for a sum much smaller. The site had been convicted by the Tribunal de Grande Instance de Troyes to pay 20,000 euros in damages to luxury goods group in the Rue St. Honore.

Commercial judges had sanctioned the sale of counterfeit goods from eBay imitation leather goods from Louis Vuitton and Dior Couture clothing.They had also sanctioned the sale of authentic fragrances and cosmetics brands Dior, Kenzo, Givenchy and Guerlain, on the ground that LVMH had not chosen this diffuser.

Vivendi said Wednesday anticipate an increase in its annual results for 2010 and maintaining its dividend to 1.40 euro for the year, after posting better than expected performance in the first half, notably at SFR and Universal Music.

The first group of European media and entertainment market capitalization said in a statement anticipating a growth in adjusted operating profit (EBITA) in 2010 – instead of a "slight" growth before.

It also provides a higher adjusted annual net income higher than the 2.585 million generated in 2009.

Vivendi has released the first-half EBITA of 3.243 million euros, up 11.9% and a turnover of 13.982 million, up 6.1%.

The 12 analysts polled by Reuters drafting average expected EBITA of EUR 3,099.5 million and a turnover of 13.833 million.

The company posted an adjusted net income biannual 1,526,000 euros, up 4.0%

SFR, which accounts for nearly half the turnover of the group reached EBITA of 1.368 million euros, against 1.302 million expected by analysts, with sales up 1.8%, more stronger than expected.

Canal + has reached an EBITA of 486 million euros, up 3.0%, against 463 million expected, but with a turnover more moderate than expected.

Lagardere announced last Thursday that he intended to complete by March 2011 the IPO of 20% of Canal + France held 80% with the balance.

UMG, the first record label world, shows a fall of 24.6% of its EBITA less than expected at 159 million euros, against 149.5 million anticipated.

Vivendi also raised the forecast of Brazilian fixed-line operator GVT, its latest acquisition and its smallest division, now anticipating increases of 34% of its turnover and 44% of its adjusted EBITDA – 29% and cons 35% previously.

GVT has done in the first half turnover of 444 million euros and an EBITA of 98 million.

The Vivendi shares closed Tuesday up 1.24% to 18.41 euros, giving a market capitalization of $ 22.8 billion. It has lost 11.5% since the beginning of the year, against an increase of 5.3% of the pan-European media index.

Coface, which announced Monday a further improvement in results due to the recovery of its performance in the insurance authorized by a decrease in claims and believes that its results any credibility to public offerings.

The credit insurer, 100% subsidiary of Natixis, the subject of strategic thinking since last February in BPCE, parent company of Natixis on his future within the banking group.

Commenting on the results of Coface published on Monday its chief executive, Jerome Cazes, said at a press conference that discussions had not been completed and that there was "no urgency".

However, he said "feel that the scenario of a public offerings in 2011 is gaining credibility with the results" the first half.

The credit insurer is considered unlikely scenario of recurrent growth under the policy followed by recovery in the United States and China and the dynamism of world trade, and expects a further improvement in claims in the second half.

"This situation (macroeconomic) can anticipate the second half a further improvement in claims, continued cost control and growth turned positive in its turnover," notes Jerome Cazes.

The company saw its second quarter results continued the recovery started in the last quarter of 2009, with operating income of 31 million euros after a loss of 76 million a year earlier and a positive result of 24 million in the first quarter of year.

PERFORMANCE ASSURANCE

Driven mainly by the insurance, which rebounded thanks to a decline in claims, despite a turnover fell 2% at constant rates to 303 million euros while the ratio claims fell to 59% in the second quarter, against 63% in the first.

Coface's objective is a loss ratio between 45% and 50% in the next 18 months as well as productivity gains three points per year.

Operating income from insurance activities has reached 31 million euros, against a loss of 126 million a year earlier and a positive result of 24 million in the first quarter of 2010.

In services, where sales fell 8% to 65 million euros, operating profit was halved to six million euros while in factoring it increased to 10 million EUR cons has a two million earlier, on sales up sharply (+21% to 29 million euros)

Net profit stood at 20 million euros, against a loss of 37 million a year earlier and a profit of 15 million in the first quarter.

Shareholders' equity improved to 1.311 million euros, signing up 21% from the end of 2009 and 11% from the end of 2007, before the outbreak of the financial crisis, mainly driven by the capital increase occurred at Natixis first quarter.

As part of its strategic plan 2010-2012, after which Coface is a net profit of 250 million euros, the group also wants to become a rating agency that specializes in financial firms.

In response to criticisms of credit insurance during the crisis, the company has introduced a free access to its insured ratings to their clients.

The first Boeing 787 Dreamliner should be shipped in the first quarter of 2011 because of a delay in availability of engines, said Friday the aircraft manufacturer.

The delivery date for the Dreamliner has been delayed, as these engines are necessary to the ultimate test flights, will be available until the fall, said Boeing.

The U.S. group is working with Rolls-Royce for faster delivery.

Last month, Boeing announced that the first delivery of the aircraft could be delayed into the early weeks of 2011, due to a series of difficulties.

However, the group said on Friday that the new schedule would not impact on the group's financial forecasts.

The testing schedule of flights will actually preserved Boeing said.

We knew the salaries of civil servants threatened by pension reform. But the government also plans to "freeze outright index point" of wages in the public service, which sets about 80% of salary for civil servants, understands the newspaper Les Echos. And until 2013.Wage negotiations, which open Friday could even jeopardize the 0.5% long planned for July 1.

Also read on the subject: Austerity: those who will drink

Secretary of State for Public Service, George Tron, has nevertheless delivered Tuesday, as pesonnel in favor of maintaining the increase July 1, which had been recorded during the last negotiations three years. "J 'I like Eric Woerth (Labour Minister), tend to think that when a commitment is made, it is good policy to keep it, "he said before adding that while" it is all not adjudicated "and that" several scenarios are considered.

In contrast, the gel appears to be non-negotiable for the period 2011-2013. "You can not ask a staff effort, just as all the French, and automatically catch the fly.The question of the contribution rate is not mentioned in salary discussions, this has nothing to do, "said the Secretary of State for Public Service for Echoes.

The pension reform provides for a gradual alignment of contributions from the public over the private, the rate should increase from 7.85% currently to 10.55% in 2020. An increase of 0.27% per year. Rising wages would be a way to limit or even maintenair purchasing power of public servants.Meanwhile, these leaks could fuel the action on Thursday against government plans, whose intensity could influence the final decision.

According to Les Echos, it could attempt to sweeten the pill by putting forward measures and targeted wage clause "good fortune" that would revert to freeze possible if growth better than expected.

Tuesday afternoon, the Labour Minister Eric Woerth has sought reassurance by stating that the state "will not decrease the salary of civil servants". He added: "The remuneration of an employee, not only point to the index, because they always say, X%. This is the point index," but " there is a second part of the remuneration that is the evolution of employee remuneration in a grid. It is about 2% per year, average increase of purchasing power, "he said.

If freezing point index, "the purchasing power of employees fall by nearly 7% in three years" because of the risks of higher inflation, responded Jean-Marc Canon, Secretary General CGT officials.

The Paris Bourse continued its consolidation Wednesday despite a series of good results of the CAC 40 falling in the wake of Wall Street reacted negatively to the latest figures on the eve of consumption and the U.S. real estate.

At 9:28, the CAC 40 index shows a decline of 0.38% to 3733.14 points after losing 0.12% on Tuesday.

Investors will pay attention this afternoon at the United States publication of the ADP employment survey and the ISM services.

EDF wins 4.1%, highest increase in the ACC after the announcement of an increase in electricity tariffs from 15 August.These price increases are in the top end of market expectations.

Societe Generale, which opened up 3%, gaining 0.8% after posting better than expected results for the second quarter with a decline in its provisions and a stronger than expected growth in revenues.

Nexity yields 2.3%, largest drop in the SRD. Christine Lagarde, Minister of Economy, has announced a zero-interest loan to replace the enhanced tax credit on the loan interest.

Other major European markets are also down: London and Frankfurt lost 0.8% 0.52%.As for the European indices, the EuroStoxx 50 yields 0.62% and 0.67% Eurofirst 300.

The euro is stronger after a break of recent days and is trading around 1.3205 dollars, as U.S. crude, which trades at 82.16 dollars a barrel.

U.S. stocks opened lower after the announcement of a sharper than expected slowdown in economic growth in the U.S. in the second quarter.

In the first exchanges, the Dow Jones lost 0.8% or 80.53 points to 10,386 points while the Standard & Poor's 500 index yielded 0.9% or 10.25 points to 1090 points and the composite index the Nasdaq fell by 1.2% or 27.41 points to 2224.54 points.

The U.S. economy slowed sharply in the second quarter at an annualized rate of 2.4% against 3.7% in the first quarter, according to figures published Friday in the first estimate by the Commerce Department. The market was expecting growth of 2.5%.

On the values front, Merck was down 1.6%.The pharmaceutical company has yet reported Friday in quarterly earnings above expectations.

Chevron was down 0.8% despite a profit tripled in the second quarter.

Norsk Hydro believes that the aluminum market may have reached its highest level this year in the second quarter and maintained its forecast of growth of 12% of its markets upstream and downstream in 2010.

The Norwegian producer of aluminum has made a profit before interest and taxes (EBIT) current of 1.1 billion kroner (137 million euros) in the second quarter, after losing 618 million kronor last year on same period. Analysts polled by Reuters had expected a profit of 900 million kroner.

"The numbers are very solid," said Samir Bendriss, an analyst with Pareto."They are particularly successful in the upstream activity, with higher prices, higher volumes and lower costs than expected."

The group assigns him, this performance to increase its volumes, the strength of its margins and tight control of costs.

"We still anticipate that demand in our major markets upstream and downstream will grow by about 12% in 2010," he said.

However, Norsk Hydro estimates that the global market for aluminum is oversupplied despite the recovery in demand linked to the moderate recovery of economic growth.

"There are many elements that suggest that the second quarter will be stronger in 2010", said group general manager, Svein Richard Brandtzaeg, at a press conference.

The group said world demand for primary aluminum, excluding China, has increased in the second quarter to an annualized level of consumption of around 24 million tonnes, while production outside of China increased 25 million tons on an annualized basis.

"Demand should be stable in the third quarter but with a normal seasonal decline," said Norsk Hydro.

The Norwegian group also warned that its results for its underlying activities of alumina (aluminum oxide) and raw materials are expected to fall in the second half after a solid six months, due to an expected drop courses alumina and rising costs of bauxite.

"The decline (will be) following the expected decline in margins," the group said.

Around 9:45 GMT, was virtually unchanged at 34.96 crowns.

Weak retail sales in France since the beginning of the year raises concerns for household consumption, but without calling into question the prospect of a mild acceleration of growth in the second quarter.

INSEE said on Friday down 1.4% of household spending on manufactured goods in June after an increase (revised) 0.6% in May, which was only the second of the year.

Throughout the second quarter, they fell 0.9% after falling 1.9% in January-March.

Purchases of manufactured goods only represent about a fifth of consumer spending on goods and services, including food, a statistic that is much less volatile and released only on a quarterly basis.

Household consumption has stagnated in the first quarter and is still waiting INSEE stalled in second quarter net sales to be known on August 13 during the initial results of the national accounts.

Some economists, like Dominique Barbet from BNP Paribas, now does not preclude a decline in household consumption, which would be a first since the second quarter of 2008.

But, he says, the strength of industrial production and exports expected to "save" the growth in the second quarter, it expects to 0.4% or 0.5% after the meager 0.1% the first three months of the year.

"That said, the outlook is still quite weak and not with this level of consumption we can expect 1.5 to 2.0% growth per year," he adds.

Bercy, it remains serene by estimating it would take a 0.3% or more of household consumption to speak stall."Nothing like on the radar", make sure there in the entourage of the Minister of Economy Christine Lagarde.

CONCERN FOR THE FUTURE

Regarding industrial production, it was not until August 10 to hear the numbers of the second quarter, but May's increase (+1.7% and +0.5% for the only manufacturing) was a good omen.

Already, the quarterly business survey released Friday by INSEE showed that the request to industry has made significant progress on these three months, but prospects are less favorable then.

"We had a sort of dichotomy between demand indicators that are not extraordinary, except perhaps for export, and offer those who are supported, as shown by surveys from INSEE" observes Dominique Barbet

He added: "The concern is more for the future."

Nick Kojucharov, Europe economist at Goldman Sachs, the link between low spending on manufactured goods and consumer confidence, which has faltered significantly since the beginning of the year.

"That does not mean that the recovery derailed in France – surveys and industrial production are trending up – but that French consumers, who strongly supported the request at the beginning of the recovery, now is the key" says he.

Down nine points since January, the consumer confidence indicator calculated by INSEE has stabilized at -39 in July, its lowest level since May 2009.

The decline in household spending in June is in large part to the launch late summer sales, June 30 instead of June 25 in 2009.

This contemplates an upward correction in July, but only temporarily according to economists.And anyway, "the fact that consumers have stopped buying clothes from three months to wait for the summer sales is not really what we might call a positive signal to private consumption, observes Olivier Gasnier of Societe Generale.

The high level of unemployment, worries about tax and the evolution of the purchasing power of households should continue to curb consumption, he adds.

If the support of replenishment orders and exports fades at the same time, the prospect of slower growth in the third quarter will be inevitable, confirming the slow recovery.

In its last forecast in June, Insee expecting 0.4% growth in the third and fourth quarter, after +0.5% in April-June, a pace sufficient to meet the government target of 1.4% on year.

The European Union announces it will appeal the conviction of the World Trade Organization (WTO) on subsidies provided to Airbus.

Airbus and Boeing accuse several years to receive public funding they deem illegitimate.

On 30 June, a panel of WTO experts found some illegal European subsidies provided to Airbus, a subsidiary of EADS, giving due in part to a U.S. complaint filed in 2004.

The appeal against this decision the EU will be filed before a special meeting of the Dispute Settlement Body of WTO, says a source close to the case.

The meeting, which started at 10:00, was convened at the request of the United States in the adoption of the June decision by the panel of experts, which would have forced the EU to end in 90 days to grant British, German and Spanish on the A380.

"This issue is too important to allow misinterpretations Group of Experts (DSB) without challenge," the EU trade commissioner Karel de Gucht, in a statement.

The call of the EU must be treated within 90 days, according to WTO rules.

In the day Wednesday, a lawyer for Boeing reported confidence in Boeing regarding this procedure.

"We are confident about the outcome of this appeal, as we were when the U.S. had opened the proceedings," said Robert Novick, a member of the firm WilmerHale.

"We are confident that the outcome of this appeal will be known by the end of the year."

A complaint against the European American aid mechanisms to Boeing would be decided on July 16, but the decision has been postponed to mid-September.

Louis Welsh, CEO of EADS, has held this postponement unfair.