Trading in shares in Europe have opened decrease in leading indexes after the U.S. market and Asia. The results of the meeting of the U.S. Federal Reserve, apparently not met the expectations of bidders. Following the meeting, the Fed renewed incentives of the American economy. She said it planned to reinvest the proceeds of mortgage-backed securities in the purchase of long-term U.S. Treasury bonds. However, players of the stock market were not too happy with these statements and focused on the aspect of fragile recovery of the U.S. economy. Negative market indicators added the U.S. trade balance. In June of 2010. trade deficit rose in May compared with a value up to 49.90 billion dollars (forecast - 42.5 billion dollars).
Against the backdrop of negative news macroeconomics stock trading in the United States reopened a sharp decline in the leading index, which has placed additional pressure on European indexes. Stronger than the rest of the paper hit the banking sector, as well as mining shares, as investors sold their securities for fear of slowing the recovery of the world economy. As a result of the day the French CAC 40 Index dropped to 2,74% - to 3628.29 points, Germany's DAX - 2,10% - to 6154.07 points, the British FTSE 100 - on 2,44% - to 5245.21 points .
British energy company International Power and the French GdF Suez agreed to establish a joint corporation, which should become the largest energy company in the world. Its total generating capacity will reach over 66 GW, and annual income - some 86 billion euros. Under the deal, located in the UK, Turkey and beyond Europe's assets, 35% owned by French government GdF Suez, will be transferred to International Power. Instead, the French company will be in the new company's 70% stake, while the British organization will be the remaining 30%. Corporation will be called United New International Power. Its headquarters will be located in London, while shares - listed on the London Stock Exchange. Shares of French GdF Suez cheaper at 2.82%.
Net profit of Swiss food producer Nestle SA the first half of 2010. increased by 7,5% and amounted to 5.45 billion Swiss francs (3.93 billion euros), whereas a year earlier this figure was recorded at 5.07 billion Swiss francs. Sales of Nestle up to the reporting half-year reached 55.34 billion Swiss francs (39.93 billion euros), which is 5,9% more than last year, amounting to 52.27 billion Swiss francs. Indicator EBIT (earnings minus interest expenses and taxes) for January-June 2010. increased by 13,6% and amounted to 8.38 billion Swiss francs (6.05 billion euros) against 7.38 billion Swiss francs for the same period a year earlier. Quotes of securities of the company fell by 0.19%.
The share price of German tourism group TUI AG, which owns a network of travel agencies and tour operators in Europe, fell to 2.73%. Net loss for the TUI III quarter 2009-2010 financial year was reduced by 98%, amounting to 9.4 million euros, while for the same period a year earlier the company received a loss of $ 470.1 million Euros. The company's turnover for the III quarter of 2009-2010 fiscal year dropped by more than 4% and amounted to 4 billion euros against 4.2 billion euros a year earlier. Gross profit for the last quarter fell by 15.2% and amounted to 330.9 million euros against a similar figure for the III quarter of 2008-2009 financial year, who was at around 390.2 million euros.
