Germany Approves EFSF Reforms; Vivendi Net Rises, Carrefour Swings to Loss

Arthi Gupta
31 Aug, 2011
New York City

European indexes rose after German lawmakers approved reforms to the European rescue fund. The euro area jobless rate remained flat at 10% in July. National Bank of Greece swung to first-half loss. Bouygues announced a share repurchase worth

[R]1:00 PM Frankfurt – European indexes rose after German lawmakers approved reforms to the European rescue fund. The euro area jobless rate remained flat at 10% in July. National Bank of Greece swung to first-half loss. Bouygues announced a share repurchase worth €1.25 billion.[/R]

The German Cabinet approved measures to improve the European Financial Stability Facility during a meeting in Berlin today.

The measures were agreed at a European leaders'' summit held on July 21 and include a proposal to expand the capacity of the EFSF to €780 billion from the current €440 billion. The German parliament is due to vote on the measures on Sept 29.

In Paris, CAC-40 Index gained 45.29 to 1.43% to 3,205.64 and in Frankfurt DAX Index edged higher 72.78 or 1.28% to 5,716.71.

Euro-zone Jobless Rate Steady

The euro area jobless rate remained unchanged at 10% in July, according to Eurostat. However, euro-zone inflation was steady at 2.5% in August, flash data released by Eurostat showed.

Separately, Germany''s unemployment decreased 8,000 in August compared to a revised fall of 10,000 in July, Federal Labor Agency said on Wednesday.

Gainers & Losers

Bouygues SA surged 12.4% to €25.93 after the French industrial group said second quarter sales improved 4% to €8.53 billion from €8.21 billion in the previous year. Net profit in the quarter increased 1.7% to €357 million or 1 euro per share from €351 million or 0.98 euros per share in the prior-year quarter.

The company announced a share repurchase worth €1.25 billion at 30 euros per share.

Carrefour SA fell 3.19% to €18.05 after the French grocery retailer reported first-half total revenues grew 2.3% to €40.26 billion from €39.35 billion last year. Net loss in the period was €249 million, in comparison with net income of €97 million a year ago.

L''Oreal SA declined 1.70% to €75.70 after the cosmetics maker reported first-half sales rose 5% to €10.15 billion, from €9.667 billion in the prior year. On a same-store basis, which accounts for stores open at least a year, sales increased 5.2%.

Net profit in the first-half rose 11.6% to €1.467 billion or 2.46 euros a share from €1.314 billion or 2.23 euros a share in the prior year.

National Bank of Greece SA slumped 5.93% to €3.17 after the Greece-based financial institution reported first-half core revenues fell 7% to €2.274 billion from €2.440 billion in the year-ago quarter. Group net loss in the period was €1.310 billion compared to a net profit of €146 million last year.

Vivendi SA gained 3.77% to €16.78 after the French media and telecommunications conglomerate reported second quarter revenues edged up 0.2% to €7.07 billion from €7.06 billion in the previous year. Earnings in the quarter rose 23% to €824 million or 0.66 euros per share, from €669 million or 0.54 euros per share reported a year earlier.