French cite need to aid Airbus
The French government will take “all necessary measures” to end the crisis at Airbus parent company EADS, Prime Minister Dominique de Villepin said Wednesday, a week after EADS shares plunged 26 percent on news of further delays to the A380 superjumbo.
“There are urgent decisions to be taken and they will be taken,” Villepin told lawmakers.
“The government has decided to take all necessary measures so that EADS gets on top of its production delays and supplies its customers under the best possible conditions.”
The French government owns 15 percent of European Aeronautic Defence and Space Co., but under current company statutes operational decisions are left to the group’s private shareholders, the French defense and media group Lagardere SCA and German carmaker DaimlerChrysler AG.
EADS shares rose 6.5 percent on Tuesday after Villepin and Finance Minister Thierry Breton said the government was seeking changes to the company’s management and ownership structures. On Wednesday, the stock was down 3.2 percent at 20.77 euros ($26.24) in Paris.
•Merrill Lynch & Co. has asked some of its brokers to answer a questionnaire that asks whether they plan to jump ship to other firms.
The “present employee interview questionnaire” contains 11 questions probing whether the brokers have been in touch with other firms about job opportunities and asks them to promise not to recruit customers if they go.
“Have you told any firm that you intend to join that firm?” asks the questionnaire, which requires brokers to sign their name. “The firm would like you to remain in our employ. Will you make a commitment to stay?”
Jennifer Grigas, a spokeswoman at Merrill said the questionnaire is being sent to financial advisers to gain general feedback and is sometimes being sent as well to employees in other areas of the firm.
•FedEx Corp. reported a 27 percent increase in fourth-quarter earnings Wednesday, raised its profit forecast for the coming year and saw its shares rise more than 5 percent.
The company earned $568 million, or $1.82 a share in the quarter ending May 31. That was up from $448 million, or $1.46 a share, a year ago. Revenue grew 10 percent, from $7.72 billion to $8.49 billion.
The results easily beat Wall Street expectations. On average, Wall Street analysts surveyed by Thomson Financial predicted earnings of $1.77 a share on sales of $8.42 billion.