news blog from Sharell

European shares lower as French banks hit

Tue, 18 Oct 2011 12:01:52 -0400

“It is difficult to know what the future will be for banks,” Louise Cooper, market analyst at BGC Partners, said. “Banks’ liquidity positions are not great. They have such enormous loan books and need a massive amount of funding everyday.”The FTSEurofirst 300 index provisionally closed down 0.5 percent at 960.87 points.

UPDATE 1-Danone Q3 growth slows, confident for 2012

Tue, 18 Oct 2011 02:48:21 -0400

* Keeps 2011 goals, confident about 2012* CFO sees Q4 trends broadly in line with those of Q3By Dominique VidalonPARIS, Oct 18 (Reuters) - French food group Danone said on Tuesday that softening commodity prices, robust growth in emerging markets and the expected benefits from the integration of Unimilk in Russia made it confident for 2012.The world’s largest yoghurt maker, whose brands include Actimel and Activia, also kept its full-year 2011 outlook, though it reported slower sales growth in the third quarter due to sluggish dairy sales in Russia and the United States.Chief Financial Officer Pierre Andre Terisse told a conference call that he expected fourth-quarter trends to be “broadly in line” with those of the third quarter.Meanwhile, commodity prices — notably milk and plastic — were currently on a “softer trend”, he said.”We stand by our full-year targets for 2011. Danone is in very good shape, with operations in Asia, Latin America and Africa/Middle East continuing to post robust growth,” Chief Executive Franck Riboud said in a statement.”In Russia and the United States, we are working to strengthen our leading position, and our performance in Western Europe remains good,” he added.Danone, which also makes Evian water and Milupa baby food, said it still expected to grow underlying sales by 6-8 percent this year, having achieved 5.9 percent growth in the third quarter, slightly above analysts expectations of 5.6 percent.It also reiterated its forecast for an increase of around 0.2 percentage points in its like-for-like 2011 operating margin.Difficulties in Russian dairy and the loss of market share in U.S. dairy were largely responsible for a well-flagged sales slowdown from 8.7 percent growth in the first half.Third-quarter sales reached 4.805 billion euros, a reported rise of 10.5 percent and in line with the 4.808 billion average of estimates in a Reuters poll of analysts.

Bank of America selling NYC building stake- report

Mon, 17 Oct 2011 19:15:45 -0400

Spokespersons for Bank of America and Brookfield declined to comment.Bank of America, which agreed to to buy Merrill at the height of the financial crisis in 2008, has been reducing its space in the building. The Charlotte, North Carolina, bank has a tower in Midtown Manhattan that officially opened last year.The sale is the latest move by Bank of America to shed assets as it looks to build capital to meet new international standards and to cover mortgage losses.

UPDATE 5-New iPhone on sale, fans buy in tribute to Jobs

Fri, 14 Oct 2011 03:17:36 -0400

* Critics rave about phone’s voice control, otherwise no revolution* Users report glitches with iOS 5 operating system, iCloudBy Michael Perry and Mayumi NegishiSYDNEY/TOKYO, Oct 14 (Reuters) - Apple Inc’s new iPhone went on sale in stores across the globe on Friday, with fans snapping up the final gadget unveiled during Steve Jobs’ lifetime, many buying the phone as a tribute to the former Apple boss.Hundreds queued around city blocks in Sydney and Tokyo to get their hands on the iPhone 4S, ahead of store sales in Germany, France, Britain and North America.”I am a fan, a big fan. I want something to remember Steve Jobs by,” said Haruko Shiraishi, waiting patiently with her Yorkshire terrier Miu Miu at the end of an eight block queue in Tokyo’s smart Ginza shopping district.The new model looks similar to the previous iPhone 4 but has an upgraded camera, faster processor and highly regarded voice-activated software, which allows users to ask questions.Australian Tom Mosca, the first to buy the phone in Sydney, said he would ask his new white iPhone: “Where’s Steve?” Many Apple fans believe the phone was called iPhone 4S to mean “for Steve”.Apple CEO Tim Cook and his executive team hope the first device sold without their visionary leader at the helm will protect them against a growing challenge from the likes of Samsung Electronics .The South Korean firm, Apple’s arch-rival with smartphones powered by Google’s Android software, expects to overtake it as the world’s biggest smartphone vendor in terms of units sold in the third quarter.The iPhone 4S — introduced just a day before Jobs died — was dubbed a disappointment because it fell short of being a revolution in design, but glowing reviews centred around its “Siri” voice-activated software have helped it set a record pace in initial, online sales orders.In Tokyo, 24-year-old Ryosuke Ishinabe said: “I just wanted the newest iPhone. I want to try out iCloud.”Despite the enthusiasm at Apple stores, the launch was marred somewhat by widespread complaints this week on the Internet about problems downloading iOS 5 — the latest version of Apple’s mobile software.There were also problems with iCloud, Apple’s online communications, media storage and backup service formally launched on Wednesday, with users reporting glitches such as losing their email access.Those concerns pale compared to the problems for rival Research in Motion , which has been grappling with an international outage of its Blackberry email and messaging services for several days.JOBS SHADOW OVER iPHONE LAUNCHThe vast majority of the iPhone 4S buyers at the Sydney store appeared to be existing Apple customers, many having bought the original iPhone and its subsequent upgrades. Only one out of 10 people surveyed by Reuters was a new Apple customer.”I have been waiting for the iPhone 5 for a long time. But since Jobs died, I wanted to make sure I had a new iPhone with some advantages over the old,” said iPhone devotee Mark Du, concerned over future Apple gadgets without Jobs in charge.Apple fans in Sydney and Tokyo made sure Jobs was part of the iPhone 4S launch, with flower, candle and photo shrines to the late Apple boss erected outside the stores.Underscoring the enthusiasm for the new phone, Japanese mobile carrier Softbank Corp had to temporarily stop contract applications after its computer system was overwhelmed with more requests than it had expected.Apple said it did not release sales figures on launch day, so gauging initial sales is difficult. Apple said it had taken more than 1 million online orders in the first 24 hours after its release, exceeding the 600,000 for the iPhone 4, though that model was sold in fewer countries initially.Some analysts expect fourth-quarter iPhone shipments to reach 30 million or more, almost twice as much as a year ago.Apple’s fifth-generation iPhone uses chips from Qualcomm Inc , Toshiba and a host of smaller semiconductor companies, according to repair firm iFixit, which cracked the device open on Thursday.APPLE SOFTWARE CRITICISMApple’s iOS 5 software became available this week and is intended to upgrade older phones and enable new features such as better Twitter integration.But glitches with the new iCloud service and mobile software sparked a chorus of user complaints.”This would be a great time for like, Samsung or something, to take out a sponsored ad,” user Ryan James Kirk tweeted.The iPhone — seen as the gold standard for smartphones — is Apple’s highest-margin product and accounts for 40 percent of its annual revenue.Analysts point to several factors in Apple’s favor: a $199 price that matches up well with rival devices; availability promised on more than 100 carriers by the end of 2011, far more than its predecessors; and glowing reviews.In a sign of how tough the competition is, two doors along from the Sydney Apple store, Samsung has been selling its new Galaxy SII for only A$2 to its first 10 customers each day, prompting Samsung fans to also camp out on the footpath.

UPDATE 1-Alcatel moves closer to Genesys sale - sources

Thu, 13 Oct 2011 10:16:36 -0400

Two of the people said on Thursday a transction was close, while a third person said that, while talks were ongoing, there was no guarantee a deal would be struck.The Financial Times had reported a sale of the business would be announced for as much as $1.5 billion in the coming week.Genesys, which sits within Alcatel-Lucent’s enterprise division, sells software for the operation of call centres and video conferencing and is attractive for high margins.Permira had been in exclusive talks to buy the business since July, but exclusivity came to an end in September, sending Alcatel-Lucent stock down and raising doubts about an eventual deal. [ID:nL6E7161N5}Permira’s proposal was selected because it was seen as carrying less risk. Industrial players Avaya and Cisco bowed out earlier in the bidding.Gores Group, a Los Angeles-based private equity firm and Siemens Enterprise Communication had also been looking.Alcatel-Lucent and Permira both declined to comment.

Arrival of Cuba offshore oil rig delayed again

Wed, 12 Oct 2011 17:46:26 -0400

* Project has raised environmental fears in FloridaBy Jeff FranksHAVANA, Oct 12 (Reuters) - The arrival of a Chinese-built drilling rig set to explore for oil in Cuban waters has been delayed again and is not expected to reach the island until the second half of December, sources close to the project said.The delay is the latest of many as communist-run Cuba awaits the start of a project it hopes will give a shot in the arm to its struggling economic system.The massive Scarabeo 9, which set sail from Singapore in late August, had been expected in Cuba by early November, but was slowed by problems not unusual for a newly built rig going to its first drilling operations, people close to the project said this week.The late December arrival means the first well, to be sunk in 5,600 feet (1,700 metres) of water off Cuba’s northern coast, may not be started until January, the sources said.They warned that further delays were possible as the rig makes its journey halfway around the world after it was built in Yantai, China, and completed in Singapore. It was said to be currently off the coast of West Africa, although reports about its location varied.Cuba had hoped to begin exploring for oil in its part of the Gulf of Mexico several years ago, but the project has been put off by construction delays and other issues.The high-tech rig belongs to Saipem, the offshore unit for Italy’s Eni SpA, and has been contracted by Spain’s Repsol YPFfor the Cuba project, which is the island’s first major exploration offshore.It will be used to drill at least three wells, two by Repsol in a consortium with Norway’s Statoila unit of India’s ONGC, and another by Malaysia’s Petronas in partnership with Russia’s Gazprom Neft.After that, plans for the project, which has been cloaked in secrecy, are not clear, but may depend on the success of the first three wells, a diplomatic source said.If oil is found, it will take at least three years to begin production, said the local manager for one of the companies involved.BALM FOR CUBAN ECONOMYCuban officials have not said much publicly about the offshore exploration, but make it clear in private conversations that oil would help their troubled economy.Opponents of the Cuban government fear oil will be the salvation of the communist system, which President Raul Castro is trying to preserve with economic reforms. But that will depend in part on how much oil, if any, is found.Cuba has said it may have 20 billion barrels of oil in its 43,000 square miles (111,370 square km) of the Gulf of Mexico, while the U.S. Geological Survey has estimated 5 billion barrels, the figure more broadly accepted in the oil world.Cuba oil expert Jorge Pinon, a former president of Amoco Oil in Latin America who is now at Florida International University, said the most likely prospect if oil were found was that it would be a field closer to the USGS estimate.Owing to the fields and the probability they contain heavier oil, he thinks only 30 percent to 40 percent of the reserves can be produced.”If they find 5 billion barrels, you take 40 percent of that and it’s 2 billion barrels,” Pinon said.The contracts with international partners call for Cuba to get 60 percent of the oil, which based on a 25-year reservoir life, would equate to about 131,000 barrels a day.That amount may or may not assure the survival of the Cuban system, experts said, but would bring solid economic and political benefits, including a better balance sheet for the cash-strapped island and oil independence.Cuba now gets 92,000 barrels a day from socialist ally Venezuela to help meet internal demand, but Venezuelan President Hugo Chavez is battling cancer, raising questions about how much longer the program will last.The Cuban wells have raised environmental concerns because they will be about 60 miles (96 km) from Florida, twice as close to the state as drillers are allowed in U.S. waters.A blowout like BP experienced last year off the coast of Louisiana could douse both Cuba and Florida with oil.To alleviate concerns, Repsol will follow through on an offer it made to invite U.S. Coast Guard officials to inspect the rig when it reaches Trinidad and Tobago, sources said.