The Russian group Rusal, which is the largest aluminum producer in the world, announced twice larger than expected profit for the second quarter after commodity prices rose this year due to increased demand from rapidly growing Asian economies. For best quarterly results contribute and increase the market value of the share of Rusal in Russia’s largest mining company Norilsk Nickel. Rusal net profit for the three months ended June 30 amounted to 1.02 billion dollars, or 7 cents a share, compared with a loss of 230 million dollars, or 2 cents a share, a year ago. Market analysts predicted a smaller net profit of 393 million dollars. Profit for first half of the year amounted to 1.27 billion dollars compared with a loss of 868 million dollars a year ago. Moscow-based company that is controlled by Russian billionaire Oleg Deripaska, increase its production this year after aluminum rose by more than 50%. Its price has risen to an average of 2,130 dollars per tonne on the London Metal Exchange in the first half of this year from 1,422 dollars per tonne a year ago, according to Rusal. According to company management demand of aluminum in Russia jumped 50 percent this year and another 30% next.
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The French pharmaceutical corporation Sanofi-Aventis announced a public offer to acquire the biotechnology company Genzyme in the amount of 18.5 billion dollars. This happened to a letter by Sanofi expressed disappointment at the refusal of the Executive Director of Genzyme to begin talks on the acquisition. New attempt to pressure on Genzyme comes amid increasing interest of large companies in the sector to new market opportunities offered by biotechnology. Steps have been taken on acquisitions by major players in the sector as Pfizer and Merck. Since 2006, did significant transactions in the pharmaceutical sector are 14, their value is 111 billion dollars, the newspaper reported. This is due to the growing popularity of generics that replace much of traditional medicines. Executive Director of Sanofi Chris Vibaher announced that over the past few months his company is trying to connect with Genzyme, to arrange a meeting for making the offer, but all attempts were rejected. That is why the open letter to all shareholders of Genzyme. Sanofi’s offer is worth 69 dollars per share and was even sent on July 29.
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The major airlines have made a profit of 3.9 billion dollars in the second quarter of 2010 show to the International Air Transport Association IATA. This indicates that the sector is in much better financial position compared to same period last year. Then the 47 largest airlines, the results of which are monitored by International Air Transport Association IATA, registered a loss of 881 million dollars. Main tribute to the strong performance had stable fuel prices and the gradual recovery of demand in recent months. With the strong performance are North America and Asia-Pacific region, the results of European airlines have been supported by sales of assets for 1.3 billion dollars. The profits of the airline companies, increased after the summer season in Europe, Asia and North America, which caused serious profits for the airlines. The companies removed the losses after the Iceland vulcano and realized high increase of the profits, which is also good sign for economy recovery. For the same period last year 47 leading airline suffered a loss of 881 million dollars.
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The Russian billionaire Alexei Mordashov plans to significantly increase its stake in Germany tourist holding TUI, Reuters reported, citing information from Germany antitrust regulators. According to unofficial information from a source close to the businessman, Mordashov (owner of Severstal) plans to acquire 30% of TUI, as this time is not yet out. Russia’s S-Group, which is controlled by Mordashov, began buying shares of the Germany tour in 2007, gradually became one of the largest shareholders with a share of 18%. Another of the largest shareholders – Norwegian investor John Fredriksan, meanwhile, cut its stake in TUI from 19% to 15.7%, but information from his agent he did not intend to sell its shares of TUI to Mordashov. Russian media, recalling that during the ongoing conflict over a year between Fredriksan and senior management of TUI on strategy development and corporate governance, management Mordashov has defended the attacks on the Norwegian investor. TUI Holding owns 141 vessels and operates 237 hotels.
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The maize prices today reached a maximum 14-month global commodity exchanges, Itar-Tass. Today at 13 hours (local time) the price of corn on the Chicago Stock Exchange rose by 2% compared to late last week to 4.45 dollars per bushel (27.3 kg). The main reason are the latest projections by industry experts that provide lower crop of corn than expected in the U.S. (which is the largest producer and exporter of maize in the world) and other countries. The latest data in the regions of the U.S. Midwest growing the most corn, lately there is a shortage of moisture in the soil. Unfavorable conditions for ripening of the main forage crop can be seen in many areas of Argentina and Australia. As a result of that, experts from the World Grains Council does not exclude the possibility of maize crop in the world to be lower than estimated just a month earlier. Last week the World Grains Council revised downwards its forecast for the yield of wheat in the world. Meanwhile, demand side of corn in world markets continues to be significant, mainly due to major floods in China, where huge areas were destroyed with the main forage crop.
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The British crude oil company BP announced Thursday that it will not participate in bidding for a license for oil near the shores of Greenland – a decision which, according to representatives of local authorities is linked to the damaged image of the corporation after the ecological disaster caused by the accident of Deepwater Horizon oil platform in the Gulf of Mexico. “We had information about the license,” said BP spokesman Robert Wine. “We studied the conditions in the preparatory phase and decided not to participate,” he added. Wynne declined to comment on reasons for the decision or to clarify whether it was taken before or after the explosion of the Deepwater Horizon on 20th April. Prime Minister of Greenland, however, did not fail to note that the crash in the Gulf has affected the approach of government to the oil in coastal and shelf companies that the history of candidates associated with safety, certain matters. “Of course we’re influenced by what happens in the Gulf and we know that assume greater responsibility by allowing drilling for oil off the coast,” said Prime Minister of Greenland Kupik Clay.
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Gazprom Chairman Alexey Miller has conducted second round of talks with Energy Minister Yuriy Boyko of Ukraine and Head of the Ukrainian state gas company Naftogaz Ukraine “Eugene Bakulin for a joint venture, Interfax reported on information from Gazprom. The preliminary phase of negotiations for a joint venture took place in late May and then the two companies were not even quite sure whether negotiations will continue. At the end of April, Russian Prime Minister Vladimir Putin officially proposed to create a unified gas holding company between Gazprom and Naftogaz Ukraine. In future joint venture provides the share of Gazprom is depending on the assets that will participate in it. Commenting on the idea of unification of Gazprom and Naftogaz, the President of Ukraine Viktor Yanukovych noted, on the one hand, it is impossible for this to become an equal footing, given that the assets of Naftogaz are far smaller than those of Gazprom, but while the Ukrainian side would not like to play the role it is only a minority partner. After this statement from the Russian side stated that the process of unification of the two gas companies in the first stage can be created joint venture, but only on condition that the next phase will lead to union companies.
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The British banking group Lloyds Banking Group announced that it is withdrawn from the market in Ireland. As a reason for this state financial institution “concluded that the country is minimal growth opportunities,” said Wall Street Journal. The decision of Lloyds, 41% of capital owned by the British government, comes after the closure of the entire network of bank branches to Ireland. It took place in June when 44 branches across the country closed doors. Before the financial crisis, Lloyds has managed to achieve significant gains from the real estate boom in lending, but now the situation in the country is quite different. Because of the crisis leading banks in Ireland are facing huge losses, but three of the largest financial institutions were nationalized. Nationalization because investors fear that the country will need to pour more of taxpayers’ money in the banking sector, which in turn negatively impact on confidence in the stability of Ireland. In recent months, speculation about a collapse of the financial system periodically recruited force, which is reflected in strong growth in the risk premium of Ireland.
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The British banking giant HSBC continued its drive towards expansion in developing countries. This time a financial institution which is among the market leaders in the Asian region has made a step towards the African banking market, reports Financial Times. HSBC’s new acquisition are 52% stake in South African bank Nedbank. However, no official information about the transaction and the price at which it was concluded. According to sources, the newspaper HSBC has managed to acquire a controlling stake in Nedbank after fight with Standard Chartered. Price offered by HSBC, however, was higher and therefore the banking giant was able to conclude the deal. Nedbank is the fourth amount of assets a financial institution in South Africa to share in it have fought and Standard Chartered. The sale is announce for the recovery of the business in Great Britain from the financial crisis and the continue of the high profits and goof financial reports for the business in UK.
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The largest Italian bank UniCredit announced plans to cut 4,700 jobs total in Italy between 2011 and 2013 under the restructuring program of the group. During a meeting with trade union leadership of the financial institution has submitted a reorganization plan to demonstrate the cost structure and the need to decrease. Planned implementation of this plan to start next year. Comments from trade unions, cited by the agency range from shocking message that will not help to improve the difficult climate “promises to rebuild a hard decision. More detailed negotiations on this issue will be held in September. Italian Minister Maurizio Sacconi of Labor has also expressed concern of the bank’s plans and then urged not to take “unilateral” decisions and to negotiate. About UniCredit in Italy employs about 60 thousand people, and their number in the world is 161 thousand from the end of 2008 the group has reduced its staff by about 13 thousand. The bank is having high financial problems.
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