Business And Personal Finance

LVMH has published Thursday the results up sharply, signing new record, reflecting once again the resilience of the luxury sector facing the economic downturn.

The world of luxury, owner of Louis Vuitton, Moet et Chandon champagne and Christian Dior perfumes, saw its sales grow by 16% to 23.66 billion euros, exceeding slightly forecasts (consensus Thomson Reuters I / B / E / S of 23.3 billion) and operating income reached 5.26 billion euros (5.1 billion against expected ), signing up 22%.

The group's organic growth stood at 14% throughout the year and 12% in the fourth quarter alone. 

As usual, LVMH does not give any indication about its outlook for 2012, indicating just have the "best assets to pursue an aggressive growth", as many analysts have revised down their pre visions of organic growth of industry leaders.

The annual net income reached 3.06 billion euros (3.07 billion consensus), up 1%, and the proposed dividend will be 2.60 euros (against 2.1 euros in 2010) up 24%.

After the Swiss Richemont (Cartier, Van Cleef & Arpels) and Britain's Burberry, LVMH confirms the strength of luxury to the crisis, on the strength of demand in the e Mergent and very important tourist flows in Europe. 

The title LVMH closed Thursday at 126.40 euros at the Paris Stock Exchange, advancing and 15.5% since early January, after falling 11.13% in 2011.

Perceived by analysts as the value most defensive sector, largely due to the brand Louis Vuitton, she exchanged with valuation multiples of about 17 times the beneficial ; profits estimated for 2012, representing a premium of approximately 15% of the industry average off Hermes.

PSA Peugeot Citroen expects a contraction of the European car market in 2012 although it is still too early to assess its extent, said Thursday the President of the Executive Philippe Varin.

These remarks were made while the Committee of French Automobile Manufacturers has reported a decrease of 7.6% of new car registrations in November. Data that confirmed the difficulties of PSA, whose sales fell 15.4% last month.

"We will be in Europe, probably negative growth next year.How, we do not know, it's too early, "said Philippe Varin told reporters on the occasion of the inauguration of a new production of three-cylinder engines at its facility in Trémery (Moselle) .

The annual production capacity of the new gasoline engine with smaller displacement will eventually reach 640,000 units per year.

The company said in a statement it had invested 717 million euros since the project began in 2008.

Manufacturers currently rely on the "downsizing", that is to say reducing the displacement of their engines, to reduce CO2 emissions equal power.

The first engines produced Trémery equip the future Peugeot 208 will be sold in the first quarter of 2012.

The OECD slashed its growth forecast Monday for the 2012 United States and the euro area, urging G20 leaders to act quickly to restore confidence and avoid a severe contraction in developed economies.

In a note issued in anticipation of the G20 summit on 3 and 4 November in Cannes, the Organization for Economic Cooperation and Development cut its 2012 growth forecast for the euro area to 0.3% against 2.0% in May and 1.8% against 3.1% for the United States.

She called on G20 leaders to take "bold" to calm market turbulence and show that they can implement structural reforms address the debt crisis.

The OECD estimates that deteriorating financial conditions of the order of that seen during the crisis of 2007-2009 could result in loss of up to 5% of gross domestic product (GDP) of some OECD economies of 'By the first half of 2013.

Conversely, if the measures announced at the EU summit last Wednesday are effectively implemented and that can restore confidence, growth could be better than expected, judge the OECD.

For all G20 countries, the OECD now expects growth of 3.8% in 2012 and 4.6% in 2013, but it will be pulled up by the emerging markets including China (+ 8.6% in 2012 and 9.5% in 2013).

International air traffic has slowed in August compared to July, posting a 1.6% decline in passenger traffic and a decline of 1.3% of freight from one month to another, said Monday the 'International Air Transport Association (Iata).

Although passenger traffic has increased by 4.5% year on year in August, this trend remains below the 6.1% growth registered so far for 2011.

Air freight has declined in August by 3.8% year on year and increased by only 0.2% since the beginning of the year.

"With business confidence and consumer continues to deteriorate globally, there is not much optimism for an improvement next conditions (sector)," said the Director General of IATA, Tony Tyler.

IATA represents 230 airlines and 93% of global air traffic.

Wall Street opened down sharply Thursday, continuing its decline started the day after the grim diagnosis of the Federal Reserve on the U.S. economy, plus a further contraction in activity in the eurozone and in China revives fears a second global recession in four years.

In early trade, the Dow Jones lost 2.6% (292 points) at 10,832 points.The Standard & Poor's, wider, yielding 2.42% (28 points) to 1138 points, while the Nasdaq composite fell by 2.5% (63 points) to 2474 points.

After ten minutes of trading, the Dow's losses widened and lost 3%.

The weekly jobless claims declined in the United States during the week to Sept. 17, at 423,000 against 432,000 the previous week, but they emerged above the consensus (420 000), which does not appease the spirits.

The Fed on Wednesday raised "significant downside risks" on the economy of the United States, before announcing an "Operation Twist" 400 billion dollars to bring down long rates, and support activity.

But Wall Street estimates that only 15% chance that the "Operation Twist" gives a real boost to the U.S. economy, according to a Reuters poll of primary dealers of Treasury.

Fears of a relapse of the global economy have intensified Thursday with the contraction in private sector activity observed in the eurozone and China.

The banking sector also sensitive to economic conditions, still suffers from the decision of Moody's downgrade of Bank of America (-4.4%), Wells Fargo (-2.7%) and Citigroup (-3.9%) on the ground the U.S. federal government may be reluctant to rush to the aid of large banking institutions in difficulty.

United Technologies lost 6.6% after announcing the acquisition of the aerospace supplier Goodrich, whose work jumped 9.8%, an operation that would be the largest acquisition of U.S. industrial giant in 10 years.

Release published Wednesday the details of the debt of French local authorities have signed 5500, the report said, toxic loans from the bank Dexia Credit Local (DCL) between 1995 and 2009.

The daily said that based on a confidential file of the bank, writes that DCL had distributed 25 billion euros for its customers at the height of the "bubble".As estimated by the bank, the additional cost of these loans was estimated at 3.9 billion euros at end 2009, reports Liberation.

"The bank common that ruined 5000", as Libération, which published on its website (www.liberation.fr) a map of the communities adhering toxic loans from Dexia.

Release cites the example of Antibes, which would have borrowed 60 million and 21 million would pay in addition to that amount, or department of the Loire, which is expected to repay 22 million in excess of 96 million toxic loans.

Dexia declined to make immediate comment but a spokesman said the bank did not rule upon "appropriate action in the interests of Dexia and its customers."

The European Commissioner for Economic and Monetary Affairs Olli Rehn said on Thursday that in his opinion, all States in the euro area have ratified the amendments to the bailout fund EFSF to the end.

Olli Rehn, speaking in Wroclaw in Poland is to be held an informal meeting of finance ministers of the European Union (Ecofin) on Friday and Saturday, also said he expected a "serious discussion" on the efforts of Greece during the two days.

The Finnish Commissioner stressed the importance of reaching early agreement on the guarantees demanded quick to Greece by Finland in the second rescue package granted to the country.

A sale of the Company in general management company Amundi is strategically the most sense among the options available to the French banking group to improve its financial situation, say analysts and fund managers polled by Reuters.

The French bank, already forced to leave in early August its financial targets for 2012, said Monday that it would proceed with asset sales and cost reductions to free up four billion euros in additional capital by 2013. CEO Frederic Oudéa said the sale will take place in the asset management, investor services and financial services.

"The bank is in a very bad happening today.She has no choice, she will have to sell the family jewels to pay off debt and improve its capital position, "said Fabrice Cousté, CEO of CMC Markets.

The managers believe that, already in asset management with Lyxor, the Company generally does not need to be also through CAAM, its joint venture with Credit Agricole in which it holds 25%.

Especially since Lyxor Amundi competition and the 'green banking', which holds the remaining 75% of Amundi could enjoy being sole master on board.

"PILL ANTI-TAKEOVER"

"Strategically, Lyxor is closer to core business (investment banking, network, etc.) of the Company qu'Amundi general," notes Frédéric Jamet, Director of Management at State Street Global Advisors France.

"Amundi had a strategic interest in Societe Generale as pill anti-takeover, but now it is not the issue.A rational, logical, would be to focus on activities identified clear and validating the strategic refocusing of the bank, "he adds.

Analysts estimate that as other European banks, Societe Generale is underfunded and needs to raise new funds, while its capital adequacy ratio "hard" (core Tier 1) stood at 6.6% in Scenario macroeconomic worst in recent bank stress tests conducted in Europe, the lowest of French banks.

"Banks need to raise more capital to avoid bankruptcy, especially if exposure to Greece continues to affect markets. A core Tier 1 ratio between 3% and 5% is too low, it must be significantly higher .From 8% this ratio begins to be sufficient, "said Stefan Isaacs, bond manager at M & G Investments.

Another track planned by Fabrice Cousté, SocGen could give Boursorama, which it owns 55% according to Reuters data. Boursorama is valued around 560 million euros in stock, or about 5% of the capitalization of the Company generally.

No one was immediately available at Societe Generale and Credit Agricole declined to comment.

The media group News Corp. and movie has awarded its CEO Rupert Murdoch and son James of large increases in wages, but James said Friday waive his bonus, highlighting the controversy the illegal wiretapping of British tabloid News of the World.

The annual premium, announced Friday, would have increased the compensation of James Murdoch to 73%. His father, aged 80, received a 47% increase, bringing its total earnings to $ 33.3 million.

James Murdoch was to receive a payment of 17.9 million, with the bonus of six million. He will receive 11.9 million.The premium for his father is 12.5 million.

Vice President Chase Carey has seen its fee increase by 16% to $ 30.2 million.

As head of international affairs, James Murdoch is under fire from the media and the public since the revelation of the scandal at New Plays of the World July 4.

That same day, two longtime directors have announced their intention to leave the board. This is Thomas Perkins, who turns 80 this year, and Kenneth Cowley, 76. Jim Breyer, 50, will seek election to the board.

James Murdoch said he would consult with the Compensation Committee "to see if any premium might be appropriate at a later date."

Job creation in the private sector in the United States were below expectations in August, according to the results of the monthly ADP released Wednesday.

It was created 91,000 jobs in August, while the market was expecting 100,000.

The number of jobs created in July was revised down to 109,000, against 114,000 in the first estimate.

ADP Employer Services survey, conducted in partnership with Macroeconomic Advisers LLC, is considered a leading indicator of monthly statistics on employment figures which are expected on Friday.

Economists polled by Reuters anticipate 75,000 new posts in the private and the public, but outside the agricultural sector after 117,000 in July.