The reverse will create unprecedented shock

Natural rubber remains essential in the manufacture of tires, if its unequalled resistance to violent shocks. With 8.4 decline Friday, Michelin title seems to have worse cashed that other markets air hole. In fact, even after this trauma, the course remains an increase of 24 over six months, 9 points above the CAC 40, which reflects a good handling. The words of Edouard Michelin at the General Assembly was even more brutally passed that alert sounded two weeks ago with the publication of the first quarter sales, not had clearly not heard. 11 To 15 within its forecast of increase in raw materials, natural rubber head, Michelin had already noted its decrease in visibility: the impact was precisely encrypted in 1 of annual turnover. Confident in its strategy of selective growth, investors to were convinced that, as usual, Michelin the impact on its price and its course had yet won 5. Focusing on the volumes of the past months mediocre Edouard Michelin said only that it will be not so easy. By not amending its 2006 forecast, it emits particularly the inverse of a 'profit warning ". If it is not denied, the demonstration of elasticity will be remarkable. The reverse will create unprecedented shock.

The effect of experience

By some end is taken, the witness at the head of Total passage appears to properly conducted. A man of exploration succeeded strategist of consolidation at the time where the critical issue is to find oil and where companies are especially considered in scholarship on the reliability of their reserves. Christophe de Margerie is a little older than Thierry Desmarest upon her arrival at the Summit, if the unexpected departure of Serge Tchuruk at Alcatel which had accelerated the expected movement. In addition, the Statute of Total leave ten years to the future Director General: that is a correct time, too often neglected. It could discuss the choice of separate branch and non-executive presidency, once more submitted as preliminary, and that seems to depend on the governance of French groups less than a clear doctrine of individual cases. But the fact that Thierry Desmarest consents to shorten the term of Office to which he was theoretically legitimate right this sharing. Rest that is why Total failed to convince the merits of a transition also mastered a Jean-François Dehecq, Chairman of Sanofi-Aventis, which is the principal shareholder with l ' Oréal. Now that Thierry Desmarest and Lindsay Owen-Jones will be, like the other one, more available, it is an estate on which they should instil their experience.

Health of iron and nerves of steel

Hard and cash demonstrations are better than long speeches. Especially when it comes to convince investors. The quarterly published the same day by Mittal Steel and Arcelor bring more water to the mill of Guy Dollé to Lakshmi Mittal. If the profits of one and the other are retreating, in lower proportions that waited, the model of the franco-luxembourgeois better resists the cyclical knocks than that of the indo-Dutch. And the thrill of the application as for prices, which should grow in the next few quarters, allows to expect a very good year 2006 after the exceptional year 2005. And if it included the Canadian Dofasco, which will be consolidated in the second half, the results of Arcelor would be best. What lends the prospect to pay next year same deaf-mute earnings this year. Just as the objective of identifying a gross result of 8 billion in 2008. The abundant cash flow and low debt, EUR 5 billion share buyback plan is also likely to return value to shareholders without harming investment projects. Many elements that show should be a very substantial offer Mittal improvement that Arcelor shareholders are a real financial interest.