Unions Strike in Greece Ahead of Vote Tomorrow

Arthi Gupta
28 Jun, 2011
New York City

The European indexes declined ahead of the austerity measures vote in Greek parliament. Greek unions call for a two-day strike. Carrefour received offer from Brazil-based Gama to form a strategic partnership.

[R]1:30 PM Frankfurt – The European indexes declined ahead of the austerity measures vote in Greek parliament. Greek unions call for a two-day strike. Carrefour received offer from Brazil-based Gama to form a strategic partnership.[/R]

World markets traded cautiously ahead of austerity vote Wednesday. Investors tiptoed back to market as Greece faces a 2-day strike as lawmakers debate austerity measures conditions.

The Greek parliament began debating a series of austerity measures yesterday centered on tax increases and spending cuts. European lawmakers and regulators are voicing optimism on the vote but measures are unpopular in the deeply divided nation.

Greece will only receive additional financial assistance if it strictly implements austerity measures, European Central Bank Executive Board member Juergen Stark said in an interview with German daily Die Welt on Tuesday.

“There is only this Plan A. Greece must implement the austerity program, the parliament will vote on further saving measures over the next few days,” Stark said.

A 48-hour general strike is taking place in Athens today to protest against the austerity measures and unions are demanding that measures do not get the parliament approval.

Germany''s import price index increased 8.1% annually in May compared to the 9.4% growth recorded in April, data released by the statistics office showed.

In Paris CAC-40 Index gained 22.94 or 0.64% to 3,819.49 and in Frankfurt DAX index edged lower 8.38 or 0.12% to 7,099.52.

Carrefour Gets Offer from Gama

Carrefour SA, the French retailer received a proposal from Brazil''s Gama to form a strategic partnership that would combine the assets of Carrefour and those of Grupo Pão de Açúcar, in an equally-owned joint venture.

This strategic partnership would create the largest player in the Brazilian retail industry.

Royal DSM Acquires C5 Yeast Co.

Royal DSM N.V. agreed to acquire C5 Yeast Company B.V. from Royal Cosun. Financial details of the acquisition were not disclosed.

The acquisition will allow DSM to combine C5 Yeast Co.''s business with its own advanced yeast and enzyme technologies for second generation biofuels, further increasing its leadership position in this field.

Gainers & Losers

Compagnie de Saint-Gobain SA rose 0.25% to €41.56 after the French construction materials maker announced the acquisition of the public company Alver by Verallia, the Packaging Sector of the Saint-Gobain Group.

Sanofi SA gained 0.91% to €53.26 after the French drugmaker appointed Peter Guenter as Senior Vice President, Europe.

Siemens AG fell 3.80% to €89.26 after the German engineering company estimated third quarter net income from continuing operations would increase slightly from prior year''s around €1.4 billion and revenue will probably exceed the prior-year figure of €17.4 billion.

Furthermore, the company plans to expand its market share in emerging markets, citing ""enormous"" demand for its solutions in such regions.

Cairn Energy Plc climbed 1.49% to 389.30 pence after the oil and gas explorer made adjustments to the agreement with British metals and mining firm Vedanta Resources Plc for the stake sale of its Indian unit.

Standard Chartered Plc increased 2.14% to 1,573.00 pence after the UK bank estimated double digit growth in profit before tax over the first-half of 2010.