International Business News

U.S. stocks finish higher again Friday, the publication of positive indicators for the economy continuing with the monthly figures of employment considered reassuring.

The Dow Jones gained 127.83 points or 1.24% to 10,447.93 points, while the Standard & Poor's 500 took 14.41 points or 1.32% at 1104.51 points.

The Nasdaq Composite was awarded 33.74 points or 1.53% at 2233.75 points.

For the week, the Dow gained 2.9%, the S & P 3.8% and Nasdaq 3.7%.

The S & P index fund managers, has realized its best weekly performance of the past eight weeks.He did not rebound above 1,100 points since Aug. 11.

For the Dow Jones and Nasdaq, it is their best week in the last six.

Equity markets had fallen sharply in August, investors fearing a recession in the fallout world's largest economy.However, information released Wednesday, showing stronger growth than expected in the manufacturing sector in August, sparked a rebound in stock market values to post their biggest gain in eight weeks.

New indicators, including real estate, went in the same direction Thursday and the rebound continued Friday with the announcement of monthly figures of employment.

THE FINANCIAL SOUGHT

The U.S. economy still has destroyed jobs in August for the third consecutive month, but significantly less than expected.In addition, the private sector has created more jobs than expected.

In this context, the announcement of a greater than expected slowdown in growth of activity in the services sector in the United States in August has left investors of marble.

"Equity markets were considered non-negligible probability of a relapse there is now an output of this fear factor," said Mike Dueker, at Russell Investments.

"The recovery will be slow but at least we can count on. This should provide a wind stern values for the remainder of the year."

Sensitive sectors such as business cycle and financial technology have been particularly sought after. The S & P financials gained 2.15%.Goldman Sachs was awarded 5.4% to 147.29 dollars.

Home Depot, the world of DIY and interior design, has gained 1.5% to 29.85 dollars, boosting her up yesterday.

Take-Two Interactive soared 7.34% to 9.50 dollars after the publication of a quarterly profit – investors awaited a loss – and raising expectations of the group.

Campbell Soup has however declined by almost 3% to 36.21 dollars, investors punishing quarterly sales below expectations and a revision of objectives.

Oil prices had closed up on Friday for the third consecutive session on the New York market, as investors were reassured by statements by Fed Chairman on possible new measures to support the economy if necessary.

The October contract on the U.S. light crude closed up 1.81 dollars, or 2.47%, to 75.17 dollars a barrel on the New York Mercantile Exchange.

At the time of closing in New York, a barrel of Brent crude advanced $ 1.70, or 2.27%, to 76.72 dollars.

On the whole week, the contract on crude grew by $ 1.71, or 2.33%, signing up after two consecutive weeks of declines.

The Federal Reserve Chairman United States, Ben Bernanke said Friday that the economic recovery had slowed more than expected and the Fed was prepared, if necessary, to adopt additional measures to support the activity.

Prices were also supported by redemptions of short positions against the threat of tropical storm "Earl", which moves in the Atlantic and could become a hurricane by Sunday.

Concerns over Hurricane Danielle "were however attenuated as it swirls currently above the Atlantic, far from shore, according to the U.S. weather service.

The U.S. stocks closed lower Tuesday, penalized by the publication of statistics of home resales already been added to fears surrounding the health of perennials the world's biggest economy.

The Dow Jones closed with a loss of 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 broad, fell 15.49 points, or 1.45%, to 1051.87 while the Nasdaq Composite Index ended down 35.87 points (-1.66%) to 2123 76.All three indexes have ended at levels unprecedented in seven weeks.

Sales of existing homes in the United States in July suffered an unprecedented fall that brings them back to their lowest level in more than 15 years, a deteriorating just confirmed that the U.S. recovery loses much of its momentum.

Shortly before the publication of these statistics, Charles Evans, president of the Federal Reserve Bank of Chicago, said that the risk of a relapse into recession in the U.S. economy had increased in the last six months even if such an outcome is unlikely in his eyes, a recovery "modest" is being said.

Home resales fell 27.2% last month compared to June to 3.83 million units annualized, the lowest level since May 1995, announced the National Association of Realtors (NAR) The American Federation of Estate Agents. Economists polled by Reuters were expecting a much less pronounced decline from 12.0% to 4.7 million.

This statistic has led to a decline in property values.The PHLX Housing Index was down by 1.05%.

"The economic statistics of the day were added to a long list of evidence showing that there is a slowdown in the economy," said Michael Sheldon of RDM Financial.

"Investors were expecting a mediocre statistics, but today's figures have revealed the extent of the disaster."

These events have however not been taken on renewed vigor of the activity on the front of mergers and acquisitions.

Hewlett-Packard and Dell continued to struggle to capture the data storage specialist 3PAR.According to Bloomberg, Dell is preparing to improve its offer after Monday HP has $ 1.6 billion on the table.

3PAR has closed up 3.64% to 27.04 dollars while HP has lost 1.65% to 38.39 dollars and Dell fell 2.97% to 11.58 dollars.

The medical equipment maker Medtronic has also plunged 10.80% to 31.21 dollars after reporting a drop in sales and lowered its forecast.

The announcement weighed on the sector and the Health Sector Index S & P lost 2.03%.

The president and CEO of Hewlett-Packard Co., Mark Hurd resigned Friday after being accused of falsifying expense reports to conceal a "close personal relationship" with a woman working for a subcontractor.

The announcement was made during the dip the world's largest maker of personal computers by 10%, Mark Hurd is credited with having brought HP to the highest level in five years at the helm of the U.S. group.

Mark Hurd will be replaced by Chief Financial Officer Cathie Lesjak who is acting as interim executive director.A committee was responsible for appointing a new CEO.

A colleague outside the group, who had worked on the marketing of HP between late 2007 and fall 2009, contacted the Board in June and accused of sexual harassment Mark Hurd, the group said.

An investigation ensued and concluded that Hurd had not breached the code within the company for sexual harassment.

But the CEO of 53 years, married, kept "a close personal relationship" with the woman without the knowledge of the board of directors, said HP.

"The investigation board has concluded that Mark had demonstrated a profound lack of discernment that has seriously damaged his credibility and was highly prejudicial to his ability to lead HP, and Mark agreed," said Mike Holston, director of corporate legal department.

The departure of the CEO was unanimous, he added.

The group says Hurd submitted "number of expense reports inaccurate" to conceal the relationship with the offending subcontractor, which has itself received compensation and refunds without a legitimate reason.

The sum of her falsified expense would reach 20,000 dollars for travel, accommodation and meals shared with the woman according to a source close to the Hurd's statements on the case, who spoke of a "working relationship".

Another source with knowledge of the case made it clear that this woman was not a major subcontractor.

ANTICIPATED RESULTS

Mark Hurd, known for its rigor in cost reduction, said in a statement that the decision to resign was "painful".

"I realized that on some occasions I have not met the standards and principles of trust, respect and integrity that I adopted at HP," he said.

The shock is brutal for investors, who saw Mark Hurd as the chief of the success of the Informatics Group.Since his arrival at the helm of the group five years ago, the stock price has more than doubled.

"Mark Hurd has a large responsibility in the revival of the group," said analyst Jeffrey Fidacaro.

"His departure will leave a big void at the head of the group."

The now former CEO of HP scored his mark, combining the rigor of external growth strategy, which took shape with major acquisitions as the pioneer of the smartphone or Palm, in 2008, EDS Corp., a leading software houses U.S. 13.9 billion.

Analysts said the place of Mark Hurd will be coveted both externally as internally, where the manager's PC division Todd Bradley and chief strategy Shane Robinson figure are potential candidates.

Hurd's departure, they added, should not affect either the strategic direction of the company or its performance.

The announcement was however immediately reflected on the price of HP has lost up to 10% in after-hours transactions, dropping to 41.50 dollars after the meeting ended at 46.30 dollars.

To cushion the shock, the group decided to bring forward the publication of its quarterly results.

He announced on Friday earnings per share to $ 1.08 in non-GAAP standards for the third fiscal quarter offbeat performance slightly higher than that anticipated in the consensus among analysts polled by Thomson Reuters I / B / E / S consensus forecast of $ 1.07.

The company raised its earnings per share over the year to a range of 4.49 to 4.51 against $ 4.45 to 4.50 dollars previously. The consensus is at 4.49 dollars.

HP also said it expects an annual turnover of between 125.3 and 125.5 billion dollars, while analysts are predicting a figure lower than this range to 124.515 billion dollars.

The International Monetary Fund and the European Union have suspended Saturday program evaluation assistance granted to Hungary in 2008 to enable it to overcome the financial crisis, noting that tough measures must be taken to reduce deficits.

The suspension means that consultations, as the assessment has been completed, Hungary can not access funds that have not yet been used for the loan of 25.1 billion euros earmarked by EU and the IMF.

The negotiations were supposed to be completed by early next week.

According to analysts, the forint, the national currency could fall sharply at the reopening of markets on Monday.The loan from the EU and the IMF now serves as a safety net for Hungary, which is financed on the markets since the end of last year.

"In an environment of increased scrutiny by the markets of government deficits and debt levels, the budget deficit targets previously announced – 3.8% of GDP in 2010 and less than 3.0% of GDP in 2011 – remains a appropriate basis for the necessary process of consolidation and debt sustainability (…) but additional measures will be taken to achieve these goals, "said the IMF.

The new center-right government, based on the April elections, said he wanted to extend the current agreement with the EU and the IMF until the end of 2010 and obtain a new agreement, as precaution, for 2011 and 2012.

The Minister of Economy, Gyorgy Matolcsy said clearly that the government wanted to resume negotiations with its international creditors.

"The government will obviously continue discussions with international organizations, including the EU and the IMF," he said in a statement taken Saturday by the news agency MTI.

'DIFFICULT DECISIONS'

Christoph Rosenberg, who led the IMF delegation to Hungary, said that the international organization requested more details on the budget next year."When we come next time, unless we were coming next week, the government has consistently advanced the budget 2011 and budget will be very important," he told Reuters.

He also said that the IMF had not discussed with the Hungarian authorities for a new funding agreement for 2011 and 2012.

In a separate statement, the EU has indicated that the conclusion of the evaluation had to be postponed and that further consultations would be held.

"Hungary has returned on a path of positive economic growth and record today one of the lowest gaps in the EU.I welcome the commitment of the authorities towards the 2010 target of reducing the deficit, "said Olli Rehn, European Commissioner for Economic and Monetary Affairs.

"However, the correction of the excessive deficit from next year will require difficult decisions, including spending," he added.

Hungary needs to maintain the safety net that provides the loan of the EU and the IMF to maintain the confidence of the markets from which it borrows.The country remains vulnerable to high public debt, which represents 80% of GDP, and its dependence on foreign financing.

"If we do not have the safety net international creditor, it will penalize us where we are most vulnerable," he responded Zsolt Kondradt, analyst at MKB Bank, adding that a decline in the forint is expected Monday.

The Hungarian currency was trading at 282 forints per euro Fridays.

Romania has already had to make tough decisions last month to ensure the disbursement of IMF aid and reassure the markets.

Boeing said that delivery of the first 787 Dreamliner could be delayed until early 2011 instead of the fourth quarter of 2010, flight tests have revealed some difficulties.

Speaking at a teleconference with the press, Scott Fancher, general manager Dreamliner program, however, said the decision to postpone the delivery of first aircraft from All Nippon Airways (ANA) has yet been taken .

"We found some difficulties that challenge our schedule a bit," he said adding that these difficulties were related to issues of "configuration tools".

Around 17:30 GMT, Boeing retreated 0.51% to 64.42 dollars, wiping out a portion of losses just after the announcement of a possible further delay, while the Dow Jones yielded 0.57 %.

If ever the first delivery was postponed again, the behind the original schedule – May 2008 – would exceed two and a half years.

The beginning of the production launch of the plane was delayed five times in three years and the first flight, which occurred in December 2009, had been postponed six times, due to both a lack of parts, problems design and a two-month strike that affected Boeing plants in 2008.

"We want to play the card of caution and say it could be that delivery is delayed to the first part of next year. But at this point, our schedule still provides a delivery by the end of the year "Scott Fancher continued.

Moments earlier, Boeing said it had revised upwards its forecast of orders for new aircraft by 2029, thanks to an increase in the number of LCCs, the replacement of less fuel efficient aircraft and economic recovery.

The U.S. aircraft manufacturer estimates that 30,900 the number of orders over the next two decades, a figure up 6.5% compared to the forecast of 29,000 made last year.

Negotiations on the reform of financial supervision has failed Wednesday and European agreement on the text has been postponed until September, show several European sources.

"There will be no further talks before late August or early September and I think we can say that the talks failed," a parliamentary source said.

"The core issue is Article 6 which concerns the principle of direct supervision exercised at European level by the new supervisors," the source said adding that the objective was to find a consensus with the all states, including Great Britain.

A second source confirmed the report and discussions held that "one or two additional steps the council (of EU ministers) in the direction of the European Parliament would be required to obtain an agreement."

EADS submitted a bid under a contract for refueling tankers for the U.S. Air Force, according to a source familiar with the matter.

EADS North America and Boeing are competing in this market of 179 aircraft, which could reach 50 billion dollars (39.5 billion euros).

Boeing is expected to submit an offer by Friday, the deadline for submission of tenders.

EADS had no comment.

The Nikkei closed up 0.69% Monday, supported by export values.

The Nikkei gained 63.07 points to 9,266.78 and the broader TOPIX took 5.91 points (0.71%) to 836.89.

The export values rebound after a week particularly difficult, during which they were penalized by the rising yen.

Nissan shares closed up 2.14% at 620 yen on good controls to the release of a new utility model sold about a month ago on the Japanese market.

Hitachi Ltd., Mitsubishi Heavy Industries Ltd. and Mitsubishi Electric Corp. were awarded respectively 1.87%, 0.66% and 1.87% at the announcement of a partnership on their activities in hydropower, winner.

HSBC Holdings announced the acquisition of the retail banking and commercial banking at Royal Bank of Scotland in India, the British bank nationalized virtually continuing its withdrawal from foreign markets.

HSBC announced it would pay a premium of up to $ 95 million (75.8 million) compared to the net asset activity during the closing of the transaction, expected to first half of next year.

The price could be reduced in cases of increased bad debt during the next two years.

Sources had previously said qu'HSBC redeem these activities, which have 1.1 million customers, more than 1,800 employees and 31 divisions in India.The gross value of these assets were worth $ 1.8 billion at end March.

Currently, HSBC has about two million customers and 50 divisions in 29 Indian cities.

RBS, owned 83% by the British government, seeks to refocus on its core business and sold off in recent weeks some of his small business.

The group puts an end to a decade of international development, raising over 2.5 billion dollars by withdrawing more than twenty activities over the past 14 months.