European Aeronautic, Defense and Space, the parent of Airbus SAS, is in negotiations with BAE Systems about a merger.

FRENCH stocks slid, paced by Axa and Societe Generale.

FRENCH stocks advanced, paced by Essilor International SA after the company reported a gain in first-half sales.

A scandal that has shaken France’s political elite has gained momentum with a report quoting a former secret agent alleging that Prime Minister Dominique de Villepin asked for an investigation into his chief political rival.

Airbus to Eurofighter company EADS posted a €298m loss last year and plans to cut 1,700 additional jobs to help put it on an even financial keel.