Sales of Johnson & Johnson reduced, but profit recorded a slight growth

The Largest U.S. company to produce consumer goods and medical products Johnson & Johnson has increased its profit by 1.1% yoy in the third quarter thanks to cost cuts and increased sales of medical devices. The net profit of Johnson & Johnson for the period from July to September amounted to 3.35 billion dollars or 1.20 dollars per share, compared to the positive financial result of 3.31 billion dollars or 1.17 dollars per share for same quarter of 2008, cited by Bloomberg. Sales of New Jersey-based company fell by 5.3 percent annually to 15.1 billion dollars. Economists had expected to Johnson & Johnson reported earnings per share of 1.13 cents and sales of 15.2 billion dollars in the third quarter. In April, the leadership of Johnson & Johnson said it would cut 900 jobs at its pharmaceuticals unit after the drug sales fell 14 percent due to cheaper alternatives offered by competitors. For the fiscal 2009 the company expects earnings per share from 4.54 to 4.59 dollars, which is higher than previous estimates. Shares of Johnson & Johnson became cheaper by 2.4 percent to 61.05 dollars per share at the beginning of today's session of the New York Stock Exchange. Since the beginning of this year, the company's market capitalization has risen by 2 percent to 168.2 billion dollars. Johnson & Johnson is a component of one of the oldest stock index Dow Jones IA since 1997, making it among the 30 largest and liquid companies traded on the New York Stock Exchange.

Kraft to attempt to buy Cadbury to 10.2 billion GBP

The U.S. company Kraft has made a bid to acquire British food manufacturer Cadbury products for 10.2 billion pounds. One of the conditions the proposal is to preserve the jobs of the island, including maintenance of plant, purposely closing. The Board of Directors of Cadbury, however, refused the proposal and at present there is no deal, reports BBC. The proposal included Kraft e of 7.45 liras a share, as it should for each share of Cadbury to be paid to 3 liras cash plus 0.2589 shares of the capital of Kraft. Such a price is 42 percent higher than the close of July 3, calculated by the Market Watch. Kraft intentions were to build on already approved products and brands of Cadbury, including over perhaps the most famous product of the company - a series of chocolate Dairy Milk. In this way, you can create a "global leader in the manufacture of snacks, sweets and fast food products. Among the other famous brands of Cadbury chocolates are Green & Black's, pastille Halls, Dentyne and Trident chewing gum, etc.

United States with nearly 70 percent share of arms sales worldwide in 2008

United States accounted for more than two-thirds of arms sales worldwide last year, a survey of Congress, quoted by the New York Times. According to the U.S. study were involved in 68.4 percent of global arms sales in 2008 of U.S. arms sales rose nearly 50 percent annually to 37.8 billion dollars to 25.4 billion dollars in previous 2007 - despite the global economic recession. In this arms trade globally has decreased by 7,6 percent to 55.2 billion dollars - its lowest level since 2005. Italy, which ranks second, has sold weapons to the total amount of 3,7 billion dollars. Russia was third with sales of 3,5 billion dollars - a drastic decline in transactions compared to 10.8 billion dollars, which was concluded in 2007. The study explains the increase in U.S. sales of new large orders from customers in the Middle East and Asia, and with permanent contracts for equipment and maintenance with American customers.

The real test of U.S. markets rally begins

After rising for six consecutive months from March to August this year, stock indices on Wall Street will undergo a real test in this and next week, namely a series of grim anniversaries of the securities market in the U.S. and the strengthening of the activity of market participants after the end of the holiday season. During this week the anniversary of the takeover of troubled mortgage banks Fannie Mae and Freddie Mac by the U.S. government. The managements of both companies, which are granted or guaranteed more than half a million mortgages in the U.S., were freed after having amassed billions of dollars in losses from the collapse of the housing market in the U.S. in 2008. A week later went bankrupt investment bank Lehman Brothers, and Merrill Lynch was bought for hours of Bank of America. Only a series of government interventions failed to prevent panic on stock exchanges. Federal Reserve rescue of the threatened bankruptcy of insurance company AIG, the government developed the first version of the plan to rescue the financial system. One year after those dramatic events on Wall Street and six months despite the strong rally of the indices from the beginning of March, the index of the 30 largest stock companies, Dow Jones IA is still 13.5 percent below its level of September 2008 broader index S & P 500 has reduced its value by 15% and technological Nasdaq Composite was down by 7%, cited by CNN. Historically, September is the most difficult month for Wall Street, because it brought the greatest loss of major stock indices. This week, however, is quite poor in economic data and, moreover, is shorter, because on Monday the stock exchanges in the U.S. and Canada will be closed for the celebration of Labor Day.

Buffett: The last 18 months were "financial dramma"

Billionaire investor Warren Buffett always says he loves to go to work every day. While the global crisis because of his wealth is decreased by about accounting $ 25 billion, it has failed to harm his enthusiasm for work. "The last year and a half was very interesting period. Just a drama. To watch the side was fun, participation in the film - also, however, not in what it causes to people's lives, "Buffett said in an interview with New York Times. As repeatedly in recent months, Buffett pointed out "the film continues to play. "We have not yet overcome the problems. Need to bring back to the stalled economy's normal functioning, "he said. Those quotes are from last week and are now included in the analysis of the investment portfolio of Warren Buffett and its development in the crisis. It states that the billionaire was able to take advantage in the difficult times so, "as some people on Wall Street have managed to do so. The analysis says that when the most frightened investors fled, Buffett has invested billions in Goldman Sachs and General Electric, which has brought him substantial profits. That helped for quite serious negotiating loans to two companies with high yield of 10% for the United States. Buffett's portfolio, however, is often composed of unpopular companies, which hampers the small investor in pursuit of profitability by the positions of the billionaire, says even in the material.

USA Indexes started the session with growth

This week the first trading session in the United States began with the main index increased after the securities markets remained closed on Monday due to the celebration of Labor Day and ended last week on negative territory. Investors took the news with optimism for the unification of the two largest mobile operators in the UK - T-Mobile and Orange. The revival of interest of companies to mergers and acquisitions is interpreted as a positive sign for the economy. At the beginning of this week, another company, but the food industry, attempting to swallow a competitor. U.S. confectionery manufacturer Kraft offered 10.2 billion pounds per British rival Cadbury, which, however, rejected the offer. Shares of Kraft cheaper by 5.2 percent to 26.64 dollars per share on the New York Stock Exchange. Since the beginning of this year the market capitalization of the company, which participates in the index, Dow Jones IA, has fallen by less than the percentage to 39.2 billion dollars. The index of the 30 largest stock companies Dow Jones IA increased by 0.5 percent to 9486.5 points in the first hour of trading. The wider S & P 500 advanced by 0.7 percent to 1023.5 points while the index of companies by the exchange Nasdaq - Nasdaq Composite, rose by 0.5 percent to 2029.1 points. Shares of companies from almost all sectors expensive at the beginning of the session, with the exception of the health sector. Most increased its market capitalization extractive and energy companies, backed by soaring oil and metals.

The third consecutive session of growth for U.S. indexes

The main U.S. stock indexes saw increases on Tuesday, which registered a third consecutive trading session in positive territory. Dow Jones Industrial Average added 0.59 percent to its value to the level of 9497 points. The increase in the Nasdaq Composite went up to 0.94% until 2038 points, where S & P 500 - a 0.88 percent to 1025 points. The profits helped the strong rise in raw material. Oil increased its value by nearly 5 percent, and gold for the first time since February jumped the border from 1000 dollars an ounce, although it ended the session in New York below that level (at 997.90 dollars an ounce). For the good mood of investors contribute to observed in recent days increased interest in large corporate mergers, as evidenced by the unification of the two largest mobile operators in the UK - T-Mobile and Orange, and the experience of U.S. producers of confectionery to Kraft buy British rival Cadbury. Cadbury bid was 10.2 billion pounds, but it was rejected by the company. Shares of Kraft fell during a session on Tuesday to 5.8 percent, at the time of OTC trading higher. Leaves in New York Cadbury did increase its market capitalization by as much as 38%.
The party ran out of the winners and papers of motorcycle manufacturer Harley-Davidson, after Citigroup raised its recommendation on the company to "save" from "sell." Growth in the position amounted to 7.4%. The total market growth was not influenced by negative data on a record decline in consumer credit in the U.S.. Reported a decrease in July was 21.6 billion dollars in the expectation of -3.5 billion.