France's CAC 40 Index Erases 2007 Gains; Renault and PPR Lead the Decline

(Bloomberg) -- French stocks declined, with the
benchmark CAC 40 Index erasing this year's gains. Renault
SA, the country's second-largest carmaker, PPR SA, the
owner of Gucci Group, paced the retreat.

The CAC 40 dropped 62.49, or 1.1 percent, to 5535.40
as of 9:12 a.m. in Paris, taking its performance this year
to a loss of 0.1 percent.


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French Suspicions About Wealth Make Exiles Wary of Sarkozy's Tax Reforms

(Bloomberg) -- Nicolas Sarkozy is rolling out the
welcome mat for thousands of rich French people who fled one of
Europe's most onerous tax regimes. Few may heed his call.

In his first economic act as president, Sarkozy is pushing
a tax law to lure back exiles such as rock star Johnny Hallyday,
64, and members of the Mulliez clan, who control the French
retailer Groupe Auchan SA. The measure will increase exemptions
on the ``fortune'' tax -- the bete noire of rich expatriates --
and cap the total individual tax rate at 50 percent of income.


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French CAC 40 Index Increases; France Telecom Gains on Recommendation

(Bloomberg) -- French stocks rose, paced by
Michelin & Cie. and France Telecom SA.

The CAC 40 Index advanced 19.77, or 0.4 percent, to 5663.73
at 10:45 a.m. in Paris. The SBF 120 Index also added 0.4
percent. The CAC sank 5.3 percent last week for its biggest
weekly loss since the five days ending March 28, 2003.


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Germany warn Siemens on Libya atomic deal - paper

(Reuters) - Germany's Environment Ministry and opposition Greens party have warned Siemens not to take part in a planned French nuclear deal with Libya, Handelsblatt reported.

French President Nicolas Sarkozy signed a memorandum of understanding for a nuclear energy deal with Libya during a visit there last week.


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Accor, Bourbon, Fleury Michon and Klepierre: French Equity Preview

(Bloomberg) -- The following stocks may rise or
fall on the Paris stock exchange. Symbols are in parentheses
after company names. Prices are from the last close.

French stocks advanced, led by Cap Gemini SA and Groupe
Danone SA. Eramet SA surged after a report in Les Echos that
Areva SA may buy a 37 percent stake.


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European Government Bonds Gain on Signs German, French Growth Is Slowing

(Bloomberg) -- European government bonds advanced
for a second day as signs of slowing growth in the euro region's
two biggest economies prompted investors to pare bets the
European Central Bank will raise interest rates again this year.

Ten-year bonds rose, pushing yields down from near a five-
year high, as reports showed German wholesale prices grew at the
slowest pace for two years in June and French manufacturing
declined in May for the first time in six months. Bonds were also
buoyed by speculation yields already reflect the prospects of
further rate increases by the ECB.


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EU Struggling to Find Candidate for Top IMF Post; Poland Nominates Belka

(Bloomberg) -- European finance ministers struggled
to find a candidate for the top post at the International
Monetary Fund, as Poland nominated a former prime minister and
Britain called for an ``open'' selection process.

Poland today put forward Marek Belka, 55, prime minister in
2004 and 2005. Belka became the second declared candidate after
former French Finance Minister Dominique Strauss-Kahn, who
picked up Luxembourg's and Belgium's backing yesterday.


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France's CAC 40 Index Advances, Led by Danone, Michelin, Axa Shares

(Bloomberg) -- French stocks rose for the first time
in six days. Groupe Danone, Michelin & Cie. and Axa SA paced the
advance.

The CAC 40 Index added 47.07, or 0.8 percent, to 5988.74 at
9:12 a.m. in Paris. The broader SBF 120 Index rose 34.76, or 0.8
percent, to 4367.02.


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Niger rebels want greater stake in uranium, oil

(Reuters) - Nomadic rebels who have launched a string of attacks in northern Niger's Sahara desert said on Wednesday they wanted greater control over uranium and oil reserves being sold off to Chinese and other foreign firms.

The former French colony's desert north has long been a hotbed of dissent, largely beyond government control, full of disillusioned, unemployed youths and awash with arms left over from an uprising by Tuareg, Arab and Toubou nomads in the 1990s.


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Sarkozy Says European Carbon Emissions Limits Should Apply to Airlines

(Bloomberg) -- French President Nicolas Sarkozy
said airlines should be subject to limits on carbon emissions to
help combat global warming.

Sarkozy, speaking at an event in Paris today, said proposed
European Union limits must be applied to all airlines, not just
European carriers.


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UPDATE 1-Trelleborg says cartel probe to hit earnings

(Reuters) - Trelleborg said on Tuesday its legal advisors had estimated
the cartel investigations at two subsidiaries in Europe and the
United States might lead to "significant costs of a nonrecurring
nature in gradual stages during 2007 and 2008".




The firm said last month its French subsidiary was one of
several companies being investigated by the U.S. Department of
Justice and EU authorities in connection with an alleged cartel
involving certain types of marine hoses.


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UPDATE 3-France sells 5 pct of France Tel for 2.65 bln euros

(Reuters) - PARIS, June 25 - France sold 5 percent of France
Telecom's capital on Monday, raising 2.65 billion
euros , which the finance ministry said would be
used to reduce the country's debt.




In a statement, the finance ministry confirmed that the
state had placed 130 million France Telecom shares in the
market at 20.40 euros each, and said that after the sale it
still owned 27.4 percent of the French telecom operator's
capital.


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European Stocks Decline; France Telecom, LSE, Akzo Nobel Shares Slide

(Bloomberg) -- European stocks dropped for a third
day, led by France Telecom SA as the French government sells as
much as 3.8 billion euros ($5.1 billion) of the nation's largest
phone company.

London Stock Exchange Group Plc, which agreed to buy Borsa
Italiana SpA on June 23 for 1.63 billion euros ($2.2 billion),
paced the decline after the bourse was put on review by Moody's
Investors Services for a possible downgrade of its debt rating.


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European Emission Permits Rise on Norwegian Demand; French Power Gains

(Bloomberg) -- European Union emission permits rose
from their lowest in a month on speculation demand from Norway
will raise prices across the region. French power gained.

Permits for delivery in December 2008 rose 65 cents, or 3.1
percent, to close at 21.84 euros ($29) a metric ton on the
European Climate Exchange in Amsterdam. They sank as low as
20.60 euros yesterday, the lowest price for the benchmark
permits since May 15.


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Emission Permits Increase on Likely Demand From Norway; Power Also Gains

(Bloomberg) -- European Union emission permits rose
from their lowest in a month on speculation demand from Norway
will boost prices across the bloc, according to an analyst at the
investment-banking unit of Dresdner Bank AG. French power gained.

Permits for delivery in December 2008 rose 56 cents, or 2.6
percent, to 21.75 euros ($29) a metric ton on the European
Climate Exchange in Amsterdam at 1:52 p.m. local time. They sank
as low as 20.60 euros yesterday, the lowest price for the
benchmark permits since May 15.


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PRESS DIGEST - British business - June 19

(Reuters) - Alain Levy, the French head of music at EMI , who was
sacked in January following the latest in a string of profit
warnings by the company, received a 1.12 million pound bonus
last year as part of a total remuneration package of 4.6 million
pounds. EMI said that under the terms of his contract, Levy was
entitled to both a bonus and a pay-off "in the event of his
termination without cause ". He is
also entitled to continue to receive retirement benefits and
other benefits in kind for a year after his sacking.




RUMOUR OF THE DAY


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AIRSHOW-EADS seeks to prove itself as a "normal company"

(Reuters) - The call from French and German executives came on the eve
of the Paris Air Show, where French President Nicolas Sarkozy is
expected to set out his vision for European aerospace amid
doubts over the future of a sensitive EADS shareholder pact.




EADS has been plagued by disagreements between French and
German shareholders, politicians and staff over output delays at
Airbus, which contributed to 10,000 job cuts and slowed down
Europe's largest industrial project, the A380 superjumbo.


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Total shares hit new high on profit, output hopes

(Reuters) - Shares in the French oil and gas giant were up 1.5 percent at 1300 GMT, bringing its rise to 6 percent over the past four days, nearly twice the gains clocked by rival majors Exxon Mobil




and Royal Dutch Shell during the same period.


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France's Consumer Prices Increase at an Annual Rate of 1.2 Percent in May

(Bloomberg) -- French annual inflation slowed to
1.2 percent in May, equaling the lowest since November 1999.

Consumer prices rose by 1.2 percent from a year earlier,
down from 1.5 percent the previous month, based on European
Union-harmonized methods, Insee, the national statistics bureau,
reported today in Paris. From a month earlier, prices rose by
0.3 percent, down from 0.5 percent in April.


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French Stocks Decline, Led by Sanofi-Aventis, Veolia Environnement, Total

(Bloomberg) -- French stocks declined, led by
Sanofi-Aventis SA and Veolia Environnement SA.

Total SA fell as the price of crude oil dropped.


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