*  Oil up on Gustav, down on gas inventories
*  Drinks company Diageo cuts profit target
*  Continental finds new use for tyres

France is still reeling from the financial turmoil. Its biggest retail
bank, Credit Agricole, revealed more heavy write downs and a 94 percent drop
in second quarter profit to just $112 million from $2 billion a year earlier.
Meanwhile second-tier Natixis sank to a loss of $1.5 billion from a profit of
$1.5 billion a year ago. 
   
But despite poor results from the French banks, financials - led by a
rebound by Credit Agricole - helped European indices higher and combined with
better than expected data from the U.S. the FTSEurofirst 300 was up almost one
and a half percent. 

Tropical Storm Gustav had sent the price of oil towards $120 a barrel but
crept down after U.S. gas inventories came in higher than expected. But 
investors are still monitoring the storm which is forecast to regain hurricane
status as it approaches the Gulf of Mexico, home to a quarter of U.S. crude
oil production and 15 percent of its natural gas output. 

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Another storm is brewing in the drinks industry. Diageo the No.1 alcoholic
drinks group, cut its profit target due to an economic slowdown and rising
input costs. The London-based maker of Johnnie Walker whisky, Smirnoff vodka
and Guinness beer met forecasts with an 11 percent rise in annual earnings but
the group said weakening economies in Europe prompted it to cut its operating
profit growth target for next year from nine to seven percent.
  
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Automotive markets are also feeling the strain, but tyres to brakes company
Continental AG has found an inventive way of pushing their product. A recent
study they commissioned suggests that the average Briton carries the
equivalent weight of a real car tyre around their waistline - around 10kg - so
they have linked up with a fitness club to create this innovative workout.
Continental, which last week let Schaeffler become their major stakeholder,
admit markets are weakening but remain upbeat about sales in Russia and
Eastern Europe and are sticking to their earnings guidance of $38.8 billion
this year.

Stefanie McIntyre, Reuters