LONDON/PARIS (Reuters) – Europe’s banks are expected to post sharp profit falls in second quarter results as they count the cost of the debt crisis and try to anticipate the impact of the Libor interest-rate rigging scandal on the industry.
The European economy is heading towards recession, making companies nervous about issuing stocks and bonds. Trading has slowed and this has hurt investment banking, typically the most lucrative part of a bank’s business.
PARIS, July 24 (Reuters) – Faurecia, Europe’s
biggest maker of car interiors and exhausts, warned its
full-year profit would be weaker than expected, knocked by
falling car production in recession-hit Europe, still key to
Faurecia’s fortunes despite efforts to diversify.
Tumbling European auto demand has hammered automakers
including Faurecia’s parent company PSA Peugeot Citroen
, which has announced plans to shutter a factory and
cut thousands of jobs.
PARIS (Reuters) – Credit Agricole (CAGR.PA: Quote, Profile, Research, Stock Buzz) is in exclusive talks to sell its Cheuvreux brokerage unit to financial services group Kepler Capital Markets, in the French lender’s latest move to shrink its investment banking business.
Credit Agricole, which has been cutting jobs in its investment bank, had been looking for a partner for Cheuvreux since Chinese group Citic Securities (600030.SS: Quote, Profile, Research, Stock Buzz) dropped plans to buy a 20 percent stake.
PARIS, June 29 (Reuters) – Just three months ago Vivendi’s
veteran chief executive Jean-Bernard Levy, under fire
for a slumping stock price, said asset sales were “not taboo”.
Now that he’s quit, the group could be looking at a more
dramatic shakeup than he could have imagined.
Video game maker Activision Blizzard and Maroc
Telecom head up the list of candidates for sale,
analysts and bankers said, but his successors could now mull a
Murdoch-style split or even the sale of the SFR telecoms unit
which Vivendi grabbed control of just a year ago.
PARIS (Reuters) – Carrefour (CARR.PA: Quote, Profile, Research, Stock Buzz), Europe’s biggest retailer, is selling out of Greece in a sign companies are finding it increasingly difficult to do business in a country where demand has plunged due to a debt crisis and whose future in the euro is at risk.
The French group said on Friday it was selling its stake in a Greek joint venture to local partner Marinopoulos, which will become its franchisee.
ATHENS/PARIS, June 14 (Reuters) – Greek lender Emporiki,
majority owned by French bank Credit Agricole, said on
Thursday it was to transfer shares in its Albanian, Bulgarian
and Romanian units to its parent, completing a process that
started in 2009.
The move was the latest sign Credit Agricole is moving to
minimize any impact from a Greek exit from the euro, which
analysts have estimated could force a roughly 5 billion euro
($6.3 billion) writedown because of its exposure to Emporiki.
PARIS/BEIJING, June 8 (Reuters) – By thinking of applying
for a banking licence, EADS is dusting off a plan once
designed to make it look as powerful as U.S. behemoth General
Electric Co – but which in today’s crisis just looks
attractive as a way of safeguarding its cash.
Departing Chief Financial Officer Hans Peter Ring surprised
European finance and industry last week by floating the prospect
that the world’s second largest aerospace group could transform
itself into a bank. The reason? The Airbus parent is now more
creditworthy than some of its crisis-hit lenders.
PARIS, June 5 (Reuters) – Legendary French banker Antoine
Bernheim, a master of high European finance and a fixture at
companies from Christian Dior to Le Monde, died on Tuesday, aged
His death was announced by Vincent Bollore, another French
entrepreneur who was his frequent ally in boardroom battles at
Italian insurer Generali, where Bernheim ended up serving as
chairman for nearly a decade.
PARIS, June 4 (Reuters) – Everything looked normal at Credit
Agricole’s Argentine banks on a May Friday a decade
ago – as normal as could be expected in a country grappling with
a banking crisis after defaulting on its debts.
There were rumours of trouble afoot but that was hardly
surprising when panicky customers had been emptying cash
machines and lining up at branches to cash their paychecks.
Regulators insisted nothing was amiss.
PARIS (Reuters) – Sanofi reported positive results from a late-stage trial of its Aubagio multiple sclerosis drug, bolstering its chances of approval by regulators as it seeks to catch up with a fast-selling oral treatment from rival Novartis.
Sanofi said it found that a daily dose of the treatment, one of two multiple sclerosis drugs it has in late-stage development, reduced the rate of relapse by 36 percent compared with a placebo.