News & Financial Advice

EADS announced that it is more of its objectives in 2010, reinforced by the recent trade performance of Airbus, its flagship division.

The European aerospace and defense, however, reported first-half results down, therefore including exceptional negative currency effects.

During the period January to June, the adjusted operating profit – before interest, taxes, goodwill and exceptional items – EADS fell 54% to 406 million euros.Net income decreased 51% to 185 million while turnover was up 1% to 20.3 billion euros.

The evolution of exchange rate weighed on operating profit adjusted to 550 million euros.

In the second quarter alone, adjusted operating income down 51% to 323 million euros, net profit plunged 61% to 82 million and revenues fell 3% to 11.35 billion.

For this period, 14 analysts polled by Inquiry Financial Europe AB anticipated adjusted operating profit of 285 million euros and a net profit of 146 million and a turnover of 11.25 billion.

Given the high level of orders placed at Farnborough Air Show in July, Airbus now believes it could end the year with over 400 gross orders when he was 300-400 commands at beginning of year.

Deliveries should be on their side on some 500 aircraft (498 in 2009) and the manufacturer plans to increase the production rate of its single-aisle aircraft from 34 units per month at present to 40 units per month from the first quarter of 2012.

Penalized by a more difficult environment, the helicopter manufacturer Eurocopter for its part should register a level slightly lower than shipments in 2009.

EADS now expects to post revenues of more than 44 billion euros in 2010 on the basis of one euro to 1.35 dollar but maintains its objective of operating income adjusted to about one billion euros.

When presenting its first quarter results, the company said it expected to reach a turnover "broadly stable" – he had totaled 42.82 billion euros in 2009 – on the basis of a euro to $ 1.40.

Ingenico posted a net income multiplied by more than two in the first half thanks to the increase in transactions in Europe and raised its sales target.

The specialist in payment terminals is now 805-815000000 euros in turnover for 2010 while the group was counting on sales until now included in the top of the range from 790 to 805,000,000.

Its net profit was for the first half of 2010 to 11,200,000 euros, an increase of 133% compared to last year, returning to levels comparable to early 2008, while its net sales reached 395 million, up 10% over the first six months of 2009 on a comparable basis.

"The return to positive momentum in the second quarter we can see our goal of increasing revenue and our target operating margin adjusted for 2010, said Thursday in a statement Philip Lazarus, CEO of 'Ingenico.

The adjusted operating margin target of between 12.5% to 13% is thus maintained for 2010, same as the EBITDA margin between 16% and 17%.

The group had also exceeded its expectations for adjusted operating margin, which stood at 9.3% against a target level "comparable" to 8.6% in first half 2009 pro forma.

The Group's organic growth was driven by its performance in China, Germany and France.Ingenico has continued its acquisition strategy by taking control of both companies in the areas of services related to payments, Transfer To to Singapore and First Data Iberica in Spain.

On the historic market of payment terminals, the main competitors remain Ingenico Hypercom and VeriFone Americans.

At the close Thursday, as the group finished down slightly from 0.1% to 19.40 euros, bringing its market capitalization to nearly $ 950 million.

Luxottica, the world leader in eyewear, has announced a 30% increase in net income and an increase of 13.8% of its turnover in the second quarter and said it was confident for the second half.

The Milanese group, which owns brands including Ray Ban and Oakley, said in a statement that its wholesale division has achieved the best performance in its history, its operating margin reaching 24.1% against 22.5% a a year ago.

"These results provide an excellent base to look with confidence towards the second half of the year," said in a statement the CEO Andrea Guerra.

Luxottica has made the quarter April-June net profit of 150.1 million euros, exceeding the consensus estimate of analysts Thomson Reuters I / B / E / S, which gave 145.3 million.

He said that sales were particularly strong in emerging markets and the U.S., its largest market.

In a presentation accompanying the results, Luxottica said track to achieve its annual targets. In April, he had said it expects growth of about 5% of its annual turnover.

The industrial conglomerate 3M reported a 43.2% jump in net profit in the second quarter, above expectations, due to strong demand from emerging markets.

The U.S. company, which manufactures both the Post-It notes, Scotch tape as films used in flat screen displays a profit of $ 1.12 billion or $ 1.54 per share for the period April to June, One result cons of 783 million or $ 1.12 per share in the second Quarter 2009.

Analysts on average forecast EPS of $ 1.48 according to the consensus established by Thomson Reuters I / B / E / S.

Turnover rose 17.7% to 6.73 billion dollars according to the forecast given by the company in late June

For 2010, 3M now expects earnings per share excluding items between $ 5.80 and 5.65 and a growth of between 13% and 15% excluding acquisitions against a previous range of 10% to 12%.

The Minnesota company said however that the decline of the euro against the dollar could weigh on its results in the second half.

The players in the credit market begin the second half hoping to disappear or at least diminish the negative impact of the crisis of sovereign debt in the eurozone, which has largely contributed to the resurgence of risk aversion in the second quarter.

This crisis, which does not seem to have exhausted all its reserves, has hurt all risky assets, starting with the shares losing 7% to 19% since the beginning of the year in Europe.

Corporate bonds (corporate credit) have also suffered, premiums (spreads) having substantially eliminated.But they broadly maintain performance of 3.6% since the beginning of the year, while government bonds from all countries, took 2.4%.

"The second quarter of 2010 defeated the job right the first quarter due to the escalation of the crisis of sovereign debt.Risk aversion has increased rapidly, all assets have suffered (…) Credit spreads have strayed far beyond their level of early 2010, "credit strategists explain the General Society in their quarterly report.

Also taking stock of the quarter, analysts of Raiffeisen Capital Management noted that the credit offers "indisputably positive returns" to the beginning of the year.

But they add that with the sharp decline in bond rates – including German rates that serve as reference in the euro area – linked to the flight to quality stocks, "the potential of absolute return is now very limited."

"The high yield bonds (high yield bonds), the positive fundamentals, seem more attractive," they say.

Groupama Asset Management, as Societe Generale predicts a slowdown of the economy, promote investment grade credit and approach "stock picking" for high yield.

TIGHTENING OF SPREADS

Amund Asset Management, a leading European asset management, which is more optimistic about global growth, also favors the credit.

The sovereign crisis has largely closed the secondary credit market. The primary market, which had started on a flying in January led by financials, has been almost nonexistent from mid-April but has shown signs of lethargy output.

"The market recovered slowly and now spreads are improving.We believe that sovereign issues have less impact on the market and the spreads will be tighter at the end of the year compared to levels earlier this year, "say the strategists of Societe Generale.

After a very active quarter on the primary market, they are reviewing their forecasts down significantly from private bond issues to take into account also the small traditional activity in the third quarter.

They now expect 110 billion on non-financial corporate issues in 2010, or 55% less than in 2009 which was a record year where businesses, faced with tighter bank credit due to financial crisis, have use the market to restore their balance sheets.

They no longer need as use the market given the low investment costs, a lack of mergers and acquisitions and the continued improvement of treasury already abundant.

Societe Generale brings its projected emissions of senior debt of financial companies from 200 to 150 billion euros for 2010, against 152 billion in 2009. For emissions of subordinated debt, the forecast is reduced from 33 to 20 billion euros, against 17 billion in 2009.

Wall Street fell nearly 1.5% on Thursday because of concerns about the state of the economy after the lukewarm assessment of the Federal Reserve on the pace of recovery in the United States.

The Dow Jones 30 industrials surrendered 1.41% or 145.64 points at 10,152.80. The S & P 500 is broader, lost 18.35 points, or 1.68%, to 1073.69.The Nasdaq Composite fell on its side of 36.81 points (-1.63%) to 2217.42.

The U.S. stock market has also suffered from the approach end of the legislative process of the radical overhaul of financial regulation, which should translate into lower profits for banks.

It is likely that the Democrats will retain bargaining provisions to severely restrict the activities of the banks own account, and some of their investments, not changing the text at the margin.

JP Morgan Chase and Bank of America have respectively lost 2.21% to 38.03 dollars and 2.66% to 15.02 dollars while the S & P financials grouping yielded 2.07%.

The good statistics of the day – orders of durable goods fell less sharply than expected enrollment and weekly unemployment fell more than expected – were enough to overshadow the comments of the Federal Reserve recognizes the fragility of economic recovery U.S..

"There has been little good news this week and reformed the financial system has further obscured the situation," said Alan Lancz, president of Alan B. Lancz Associates.

In terms of values, as Dell has lost 6.44% at 12.93 dollars, the investors had not been very convinced by the growth strategy announced in the day by the manufacturer of micro-computers.

Officially, the subject is not on the table. For its pension reform, Nicolas Sarkozy ruled out the possibility of reaching the level of pensions – and thus to contribute to today's retirees. However, the idea is more in tune with the times. The economist Patrick Artus and militates in favor of a form of redistribution from older to younger. As the founding Terra Nova, near the PS, it is about to publish a report on the mind-blowing subject. One of its main proposals: align the tax on retirement assets that, while it is now lower.

An idea supported by a growing number of experts. This is the case of Bruno Palier, a researcher at Cevipof and pension specialist: "The rate of the CSG paid by retirees is 6.6% against 7.5% for assets. Align the two already bring in three billion euros per year.The advantage of such a reform, according to the economist: it would spare the poorest pensioners, exempt from income tax, who do not pay either the CSG. "It is quite unfair to say they will tighten the rules only for those who will in the future, while the system is very generous to pensioners today," notes Francois Legendre, an economist at the center of Employment Studies and author of numerous works on pensions.

It must indeed distinguish reforms necessitated by the longer life expectancy than those imposed by the arrival at the age of retirement for many generations of post-war. "Baby boomers French have not taken the necessary measures to ensure the funding of their pensions. It is not normal that this weighs on active today.From this point of view, a transient increase in the CSG of retirees is defensible, "said Antoine Bozio co-signer, Thomas Piketty, of a proposed radical overhaul of the French pension system. According to this expert, the question does not arise if the baby boomers French had at the time they were active themselves, fed a pension reserve fund, as were the Swedes do, and even American …

See also: What you should know about pension reform

Nicolas Sarkozy has once again ruled out any increase in compulsory levies to finance the pension reform, but confirmed that efforts would be applied to high income and capital income, Monday, May 10 at the sides.

"There is (…) two solutions that do not seem desirable: touch the pensions of retirees and believe, as so often in the past that rising tax burden would be the answer to all our problems," said M . Sarkozy during his opening statement released by the presidency.

"It would in fact reduce the living standards of the French and penalize growth.I am deeply convinced that a demographic challenge must first demographic responses "such as delaying the age of retirement or increasing the contribution period, he added, referring the issue of pensions, though not the agenda of the Social Summit.

Labour Minister Eric Woerth had mentioned last week, one of the tracks government work, an increase in resources for Old Age Solidarity Fund (FSV), mainly fueled by a fraction of revenues from the CSG (Contribution Sociale generalized).

Nicolas Sarkozy has once again vowed on Monday to trade unions and employers that the planned reform would be "fair", confirming such an "additional financial effort high income and capital income.

The Head of State also confirmed that Eric Woerth made public next week a "guidance document which will indicate the principles set for the reform, which will be a new stage of comprehensive cooperation."