Sa Des Eaux Minerales Devian Saeme and Danone Inc. | Date: 2014-04-10
News Article | October 29, 2015
Danone rose as much as 3 percent in Paris and Nestle also gained Thursday after China said it will lift its one- child policy, boosting the outlook for sales of infant nutrition. Danone shares advanced as much as 3 percent to 65.16 euros, while Nestle added as much as 0.7 percent to 76.25 Swiss francs in Zurich. Mead Johnson Nutrition Co. rose as high as $83.75 in New York trading, a 5 percent gain. Danone, Nestle and Mead Johnson are among the biggest players in China's $19 billion baby-formula market, which represents about a third of the industry globally. China's announcement is good news for all such companies, according to Pierre Tegner, an analyst at Natixis in Paris. He estimates that baby food in China represents about 7 percent of Danone's earnings.
News Article | October 29, 2015
The foreign-exchange market grabbed the spotlight on the final day of what’s been the best month for global equities in four years. The yen rallied after the Bank of Japan refrained from expanding a record stimulus program, China’s yuan advanced on further steps to increase convertibility and the dollar erased its monthly gain against major peers. The Standard & Poor’s 500 Index slipped as it pared its October rally to 8.3 percent, while the the Stoxx Europe 600 Index trimmed is best monthly advance since July 2009. “We have had some big moves in currencies this week” and the dollar’s decline is “reflected pretty much across the board,” said Michael Sneyd, a foreign-exchange strategist at BNP Paribas SA in London. “We remain positive on the dollar, however, we are cautious over the next couple of weeks because we think data from the U.S. is at best going to be mixed.” Central banks have dominated markets this month, with a weak U.S. jobs report jolting equities out of a summer swoon and sinking the dollar on speculation the Federal Reserve would keep interest rates pinned near zero into 2016. Persistent signs of weak global growth prompted the European Central Bank to hint at potential extra stimulus, while China unexpectedly cut its lending rate. The dollar declined after U.S. inflation and consumer spending figures trailed estimates, damping the outlook for the economy. The Bloomberg Dollar Spot Index weakened 0.4 percent at 4 p.m. in New York, leaving it 0.3 percent lower for the month. The euro climbed 0.2 percent to $1.0993. Japan’s currency strengthened versus the dollar after Friday’s decision to continue expanding the monetary base by 80 trillion yen ($664 billion) a year. The yen added 0.6 percent to 120.54 per dollar. It’s lost about 10 percent of its value versus the greenback since the BOJ increased stimulus a year ago, with most of that occurring before the end of 2014. The yuan climbed 0.6 percent in onshore trading, and 0.3 percent offshore. The People’s Bank of China said it will consider a trial program in the Shanghai free trade zone allowing domestic individual investors to directly buy overseas assets. The S&P 500 slipped 0.4 percent to 2,079.36, trimming the best monthly advance since October 2011. The gauge has rallied 11 percent since its Aug. 25 low and trades above its average price for the past 200 days. “It’s not like the market is falling out of bed, but when you combine that with how much we’ve been up lately, it gives us an excuse to pull back,” said Matt Maley, an equity strategist at Miller Tabak & Co. in New York. “We just had this huge rally -- pulling back is normal and healthy.” Valeant Pharmaceuticals International Inc. lost 16 percent as the drugmaker said it will terminate a relationship with Philidor Rx Services after Bloomberg News reported that the closely associated pharmacy had altered doctors’ prescriptions to wring more reimbursements out of U.S. health insurers. The Stoxx 600 fell 0.1 percent amid mixed corporate results. It still rose 8 percent in October, the most since 2009, after President Mario Draghi said the European Central Bank will consider additional easing in December. The gauge is rebounding from a quarterly rout, led by gains in carmakers, miners and energy producers -- the groups most battered in the selloff. The MSCI All-Country World Index ended Friday little changed. The gauge surged 7.7 percent in October. Japan’s Topix capped its biggest monthly gain in more than two years. The Nikkei 225 Stock Average closed at its highest level since August. A gauge of 20 emerging-market currencies advanced for the first time in six days. Russia’s ruble rose 0.4 percent against the dollar after the central bank left interest rates unchanged for a second month. The MSCI Emerging Markets Index rose 0.1 percent, trimming its first weekly decline in October. The gauge rose 7 percent in October, the most since April. The Bloomberg Commodity Index advanced 0.7 percent to trim a fourth monthly retreat to 0.5 percent. Crude ended below $50 a barrel for a fourth straight month amid a global glut that’s showing no signs of relief. West Texas Intermediate crude futures ended the month on a three-day winning streak, rising 1.4 percent Friday to settle at $46.70 a barrel in New York. Commodities have suffered on excess supply and China’s economic slowdown, with a London metals index set for a sixth monthly decline, and energy companies posting more than $19 billion of writedowns in a week because of low prices. Royal Dutch Shell Plc announced its worst loss in 16 years on Thursday, including $8.2 billion in impairments. Chevron Corp. said it’s cutting about 10 percent of its workforce and scaled back its long-term production target amid the worst oil-market slump since the 1980s. Exxon Mobil Corp. posted higher-than-expected profit as soaring margins on processing oil into fuels blunted the impact of collapsing crude markets. Gold posted the biggest weekly decline since August amid renewed concern that the Federal Reserve will raise interest rates in December. Futures slipped 0.5 percent Friday to settle at $1,141.40 an ounce in New York, after touching $1,138.40, the lowest since Oct. 9. Prices dropped 1.8 percent this week, the most since Aug. 28. U.S. government bonds rose, following a two-day decline. The 10-year yield dropped two basis points to 2.15 percent. Germany’s 10-year yield fell one basis point to 0.52 percent. Treasuries still capped the worst week since August, with two-year note yields surging after the Fed hinted it may raise rates this year. Companies from Microsoft Corp. to American Express Co. and Norfolk Southern Corp. rushed back to the bond market to lock in cheap borrowing costs before the central bank ends its unprecedented zero-rate era. Fed Chair Janet Yellen and policy makers signaled this week they remain prepared to raise their key rate as soon as their next meeting starting Dec. 15, pushing the perceived odds of a rate increase to 50 percent.
News Article | October 29, 2015
Danone rose as much as 3 percent in Paris and Nestle SA also gained after China said it will lift its one-child policy, boosting the outlook for sales of infant nutrition. Danone shares advanced as much as 3 percent to 65.16 euros, while Nestle added as much as 0.7 percent to 76.25 Swiss francs in Zurich. Mead Johnson Nutrition Co. rose as high as $83.75 in New York trading, a 5 percent gain. Danone, Nestle and Mead Johnson are among the biggest players in China’s $19 billion baby-formula market, which represents about a third of the industry globally. China’s announcement is good news for all such companies, according to Pierre Tegner, an analyst at Natixis in Paris. He estimates that baby food in China represents about 7 percent of Danone’s earnings. A committee of China’s ruling Communist Party approved plans to allow all couples in China to have two children, the official Xinhua News Agency said Thursday at the end of a four-day party gathering in Beijing. There’s been a worldwide boom in the flow of baby food to China, with quantities ranging from single cans sold via Amazon.com Inc. to 25 metric-ton orders through suppliers on Alibaba.com. Since a 2008 infant-formula scandal that hospitalized 50,000 babies, the Chinese have sought out foreign-made brands. That’s accelerating now with the development of online marketplace sites such as Alibaba Group Holding Ltd.’s Tmall.com and Taobao. About 30 percent of baby formula consumed in China is ordered via the Internet following a “very, very quick shift” in purchasing patterns, according to Danone Chief Executive Officer Emmanuel Faber. Much of Danone’s European sales growth in recent quarters has come from exporting products to Asia.
News Article | October 30, 2015
Shanghai (AFP) - Family entertainment giant Disney on Friday welcomed Beijing's scrapping of the one-child policy as investors bumped up Chinese "baby concept" stocks, but analysts warned the benefits to companies might be limited. China announced the end of its controversial family planning policy at the close of a meeting of the ruling Communist Party on Thursday, with a communique saying all couples will be allowed two children. On a visit to China, Walt Disney chief Robert Iger said the change was "good timing" for the US company as it prepares to open a theme park in the commercial hub Shanghai. "It was good timing... Obviously kids are good for Disney," Iger told a conference in Shanghai, to audience laughter. The Walt Disney Co. and Chinese partner Shanghai Shendi Group broke ground on the $5.5 billion park in April 2011. The opening was originally planned for this year, and was later pushed back to 2016. But Disney, whose businesses range from movies to merchandise, believes the world's most populous nation has strong potential regardless of the family planning rules, Iger said. "China is a good market, policy change or not," he said. "Yes, we love kids of course, but we love everybody." Other beneficiaries include global dairy-related companies such as France's Danone and Mead Johnson Nutrition of the United States, whose stock prices rose on Thursday after the policy change was announced. A series of food safety scandals in China, including one in 2008 when several infants died and thousands fell ill because of poisoned milk, has driven demand for foreign infant formula brands. The relaxation of the policy comes as China's working age population is shrinking and social tensions are on the rise, and the policy has created a significant gender imbalance given a traditional preference for boys. "The relaxation will likely lead to a higher birth rate in China," UBS Securities Asia said in a research report, but added that the extent of the rise was "uncertain as birth rates in its East Asian neighbours are also very low". "Short-term benefits of the policy relaxation will be limited, as demographic shifts tend to be very long term," it added. Some urban Chinese couples cite the cost of raising a child as a disincentive to having more than one. But entrepreneur Liang Yan, who runs her own store Little Angel selling baby milk powder and clothing in the northern province of Shanxi, welcomed the change -- especially given slowing growth which has forced her to shut two other shops. "More babies means higher demand and more customers," she told AFP. "Who knows what people think of the policy. But after a couple of years, our sales should be able to jump." Stock investors also cheered the news, pushing up listed Chinese companies which offer products for children. Beingmate Baby and Child Food surged by its 10 percent daily limit on the Shenzhen market on Friday, despite previously reporting a first-half net loss of more than 100 million yuan ($16 million). Shenzhen-listed Nappy provider C&S Paper also surged 10 percent in Shenzhen while Guangdong Alpha Animation and Culture, which produces animation and toys for children, jumped 7.87 percent. In Shanghai, milk producer Bright Dairy and Food gained 4.12 percent. But one analyst warned the gains might be short-lived. "The market has speculated on the baby concept for years, but how this policy (change) will actually affect companies is still unclear," Zhang Qi, an analyst from Haitong Securities, told AFP. "The easing of the one child policy might not have such a big effect on the birth rate as it's difficult to reverse the current population structure," he said.