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.

Eiffage yesterday confirmed its forecast of sales for 2010 thanks to the growth of its backlog and achieved a 40% jump in net profit group share biannually.

The eighth group of European construction and concessions generally expected that sales suffer in 2010, and 2009, the reluctance of public procurement, while the branch motorway concessions observes it, a gradual recovery its activity.

"For now, we have been heavily affected by margins than they were at the top of the previous cycle in 2007, but we do not know when they ascend," said CEO Jean-Francois Roverato at a meeting analysts.

He noted that the shift of the French market over the last ten years, to concessions and public-private partnerships (PPP) would generate a "return to better fortune" in some time."The question is when," he added.

Eiffage, best known for the Millau Viaduct and the future stadium of Lille, has achieved a net profit after minority interests of 70 million euros in the first half thanks to the reduced cost of debt.

The operating profit has however declined by 2.6% to 412 million, within the scope of the downturn in work due to a climate of increased competition.

Alongside Eiffage, Bouygues has raised its annual target of revenue, thanks to TF1 and real estate, while still waiting for a 5% decline in construction.

Vinci, the world leader in construction and concessions, has published its interim results next to expectations, particularly thanks to the improvement of traffic conditions.

NEXT ISSUE OF THE OFFER OF WITHDRAWAL ON APRR

Eiffage, owner of motorway networks APRR (Autoroutes Paris-Rhin-Rhone) and Area (Rhone Alps), has already published July 30 in sales for the second quarter, emerged up 2.2% to 3.547 billion euros.

The company said that the outcome of a bid withdrawal filed on APRR Eiffarie early July by the joint venture between the Australian Eiffage and Macquarie would be published on September 24.

The offering will enable Eiffarie hold 100% of APRR and will be accretive to net income of the group in 2010, says Eiffage.

PRPA reported Friday a net profit increase of 16.3% on back of recovery in traffic, especially trucks.

The group is held June 30 to 26.3% by its employees and 20% by the Strategic Investment Fund (ISF), the float is 35.7%

The action Eiffage closed down 1.34% to 35.99 euros on Tuesday, giving a market capitalization of 3.24 billion euros. It has lost 8.5% since the beginning of the year.

The trade deficit of France fell to 3.796 billion euros from 5.179 billion in June (revised) the previous month, thanks to increased exports find their level two years ago, according to data CVS / CJO published by Customs.

Throughout the first half, the deficit totaled 24.544 billion against 22.928 billion during the first six months of 2009, a decline due mostly to the increase in energy costs.

Six economists polled by Reuters had expected on average a deficit of 4.5 billion euros in June, with estimates ranging from 4.0 to 4.9 billion.

The remainder of May was revised to 5.179 billion from the $ 5,500 billion announced an initial estimate a month ago.

Exports FOB data CVS / CJO surged to 33.016 billion euros against 29.948 billion in May, reaching their highest level since August 2008.

Imports amounted to 36.812 billion euros against 35.127 billion the previous month.

In June, France sold its 26 Airbus reported 1,719,000 euros for 19 aircraft against 1,050 million euros in May

Schlumberger, a global oilfield services company, reported Friday in an increase in line with expectations, 33% of its quarterly earnings, strong growth of its land in North America offset the effects of the moratorium on drilling offshore in the Gulf of Mexico.

Net income from continuing operations of U.S. group stood at 818 million dollars (632 million euros) over the second quarter, or $ 0.68 per share, against 613 million ($ 0.51 per share) last year.

Turnover rose 7.4% to 5.94 billion dollars.

Analysts on average had forecast earnings per share of $ 0.68 and revenues of 5.915 billion.

In exchange for pre-market action Schlumberger, who finished at 61.30 Thursday, yielded more than 2%.

The moratorium on offshore drilling in the Gulf of Mexico was decided after the explosion and sinking of the platform Deepwater Horizon, operated by BP, which left 11 dead and is causing the worst oil spill from the history of the United States.

But Schlumberger is less affected than, for example, Halliburton, by stopping the activity in the Gulf of Mexico, this region represents only 5% of its turnover.

STMicroelectronics said they expect any slowdown in new orders, after a first half that exceeded expectations, but the difficulties of the ST-Ericsson joint venture have disappointed for the second consecutive quarter.

The European leader in the manufacture of semiconductors published Thursday adjusted earnings of 18 cents per share, which was entered in above expectations, and said providing a sequential increase of its turnover included between 2% and 7% in the third quarter.

"We see today a strong flow of new orders, there is no slowdown," said Group CEO Bozotti during a conference call.

Around 10:10, the title fell by 2.57%, to 6.56 euros, compared with a stability of the sector index of technology stocks.

Several analysts have cited the poor performance of ST-Ericsson, the joint venture between STMicro and Ericsson, to explain this decline.

"The continuing recovery is confirmed in this publication, except for the ST-Ericsson joint venture, where the situation continues to worsen," said one trader.

The subsidiary had already, at the publication of the first quarter, overshadowed the strong performance of STMicroelectronics, and many analysts continue to believe that the recovery of this subsidiary is the main weak point of the Franco-Italian.

"ST-Ericsson is in line with its restructuring plan. A major transition can not be achieved overnight (…).We remain committed to this JV, "said Carlo Bozotti.

The subsidiary has seen its sales drop sharply, while it tries to reposition its product offering, overshadowing the first positive effects of restructuring on the profitability of the JV.

STMicroelectronics has published a turnover up 8.9% sequentially to $ 2.53 billion, while the Reuters Editorial was counting on average quarterly sales of 2.513 billion dollars, on Based on estimates of 14 analysts, and earnings per share of 14 cents, according to 12 estimates.

The group, which had raised its forecast for the end of April the market for semiconductors, has confirmed an expected growth of 20% in 2010.

The Bank of Korea raised its key interest rate Friday for the first time since the beginning of the financial crisis and reinforced expectations of a further tightening of monetary policy by predicting strong growth and rising inflation .

The Bank of Korea increased by 25 basis points rate previously set at record low of 2.0%, falling into step with its regional counterparts in Australia, India, Taiwan and Malaysia.

Investors were expecting such an initiative for several weeks in light of the growing confidence shown by the authorities regarding the ability of the fourth largest economy in Asia to consolidate its recovery, despite lingering uncertainties in Europe and the United States.

Most analysts polled by Reuters had forecast, however, on a rate hike in August or September.

The won has increased its earnings to grow by over 1.0% on the session against the dollar.The stock market is, they, remained virtually unchanged.

"Governments in Asia seem relatively confident about the economic outlook despite concerns about the potential impact of euro weakness and the short-term downturn in growth by the rapid pace set earlier this year "said Brian Jackson, a specialist emerging markets at Royal Bank of Canada.

"We expect the Bank of Korea will further increase interest rates by 50 basis points by the end of the year, the risks are increasingly tilted to the upside," he adds.

For a chart on the interest rate and inflation trends: here

PROGRESSIVE CURE

The Governor of the Bank of Korea Kim Choong-soo told reporters that the economy had probably increased more than 7% over the same period last year in the second quarter and throughout the first half.

He also said that inflation should reach 3.0% next year, in the middle of the range the central bank's target of between 2.0 and 4.0%, which analysts said could conduct Bank of Korea to bring its rate of 3.0% by the end of this year.

He also reported a sharp rise in housing loans in June after a period of sluggish growth.

"There is no doubt that the basic rate of 2.0% was very low in view of various factors such as economic growth and inflation outlook," the governor said.

Kim Choong-soo was upbeat on global growth while highlighting the budgetary problems in Europe that it deems the main risk, adding that further turmoil in financial markets were possible.

The tightening of monetary policy the central bank should be gradual as the institution has ensured that its policy would remain accommodative.

"As the policy rate is still very low and the pace of tightening is very gradual, it is still support for the economy and the market impact will not be negative," said Lee Sung Kwon, an economist at Shinhan Investment Corporation.

This is the first increase in interest rates in South Korea since August 2008 and their first change since the beginning of last year.

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 Autorité des marchés financiers (AMF) announced Wednesday it had exonerated Natixis in an investigation into financial information of the bank in November 2008 at the height of the financial crisis.

In late 2008, the AMF had launched an investigation against the bank owned almost 72% BPCE (People's Savings Bank) after announcing a loss of 234 million euros and information from press reports at the same time a trading loss of one billion euros.

In its decision, the Sanctions Committee of the AMF does not hold grievances against the bank regarding the sincerity and accuracy of its financial information.

"It does not appear that the emergency situation in which it was placed to make before markets opened an initial response to articles in The Tribune, Natixis has disregarded the requirements of accuracy, precision and fairness set out in Article 223-1 of the AMF General Regulation, "reads the decision of the Sanctions Committee.

More than six in ten French (63%) feel negatively action of Nicolas Sarkozy since 2007 on social policy, against 34% positive, according to a CSA poll published Cap Friday, June 4 by the Journalists Association of social information (AJIS) and DomPlus. When they think about the action of the President of the Republic since 2007 in social policy, 29% of the French as "very negative" and 34% "fairly negative", while 3% are "very positive" and 31 % "fairly positive". They have been 3% did not comment.

Read about our investigation: Why Sarkozy's policy is so unpopular

When asked specifically about various fields is in terms of purchasing power that the French seem most critical: More than three quarters (76%) perceive the action of the Head of State as "rather negative", only 18% consider it "somewhat positive".For a majority of French, is also rather negative opinion on the fight against unemployment (68% against 27%), the fight against poverty (69% against 26%), the incentive to work harder (60% cons 36%), dialogue between management and unions (57% against 30%, 13% did not). Concerning the effectiveness of the minimum service in transport during strikes, the action is seen as "rather negative" to 48%, against 40% (12% did not).

About the pension reform, only unions inspire "somewhat confident" a majority of French people (54% against 42% who have "not much confidence"), according to the poll. In contrast, over two thirds (67%) were "not much confidence" in the patronage of the reform, against 26% experiencing more confidence.At 64%, the French have not much confidence in Nicolas Sarkozy to reform, against 32% who tend to trust.

The leftist opposition also inspires rather not trust a majority of French, but to a lesser extent (55% against 38%). Of the decisions taken by the President to deal with the crisis, 49% of French people consider them bad, against 47%. Nearly one in two French (49%) said the French company less united than three years ago, while 37% say "neither more nor less" and 11% supportive.

The survey of the CSA institute and Cap for Ajisai DomPlus and was conducted by telephone 19 and May 20 from a nationally representative sample of 1,000 persons aged 18 years or older, constituted under the quota method.