International Business News

Financing costs to be borne by Spain grew strongly at an auction took place Thursday, a day also marked by the confirmation that the country fell into recession and an article by press reports of massive withdrawals of deposits from the fourth Spanish bank.

The Spanish Treasury had to agree to pay a return of around 5% and invest in bonds and three to four years, including an average yield of 5.106% for a security maturing in April 2016 against 3.374% in the last similar operation in March.

"This unfavorable trend seems well established. Ultimately, this increase in performance may lead to a form of intervention outside, "said Richard McGuire, an analyst at Rabobank rate

. Wednesday

, Spanish Prime Minister Mariano Rajoy said that the government may soon find it difficult to fund at acceptable levels …… On

… the secondary market, the yield on ten-year Spanish bonds is around 6.3%, far off the level of 7% who die gered the aid given to Greece, Ireland and Portugal. 

Madrid, however, can take advantage of a rare good news reached the end of the day: the agreement reached with Catalonia, a region that weighs up to 20% of gross domestic product ( GDP) Spanish, a reduction in public spending.

In addition to the current difficulties of the banks, debt regions is considered another major risk factor for Spain, some already see as the next victims of the crisis debt in the euro area.

Last week, the European Commission considered that this debt would be one of the regions of the reasons that would prevent Spain to meet its budget deficit target set for 2012, which is 5.3% of GDP. 

FALLING ACTION Bankia

Earlier in the day, the Spanish government had to disprove the existence of a movement of panic withdrawals from money deposited in the bank in difficulty Bankia, nationalized the week last, the title lost up to 30% following information along these lines.

"It is not true that there is now an exit monitoring Bankia chests," said Fernando Jimenez Latorre, Secretary of Economy, during a press conference. 

For its part, in a notice sent to the Spanish stock exchange authorities, Bankia emphasizes that movements of deposits recorded during the first half of May were seasonal, adding no substantial change in the balance of deposits was not expected in the coming days.

The title Bankia finally ended down 14.08% to 1.422 euro after falling to 1.171 euro in session. The index grouping the European banking stocks yielded 2.36% on its side.

Last week, Spain took control of Bankia, the fourth largest bank, hoping to reassure the markets and stabilize a weak financial sector made by the housing crisis.

In the wake of the nationalization, Madrid has imposed on its banks to increase their reserves to protect themselves from mounting losses on their toxic loans in real estate, while pledging to make a limited assistance to troubled institutions through loans at high rates. 

These measures, however, did not help to dispel investors' doubts about the ability of the Spanish government finally repair the financial system of the country, questions that have aggravated the back of concerns about ; the debt crisis of the euro area, heightened by the political stalemate in Greece.

According to El Mundo, Bankia clients withdrew a few days over one billion euros from their accounts. José Ignacio Goirigolzarri informed the Board of Directors met on Wednesday the funds are withdrawn, the newspaper said.

RECESSION THAT WILL EXTEND

The first quarter of 2012 resulted in a further economic contraction of 0.3%, which, after a decline of similar magnitude to the previous quarter, is officially back in Spain recession, which is technically defined as two consecutive quarters of falling GDP.

"The recession is advancing at a gradual pace, but if we take into account the latest surveys on activity, it seems that the economic contraction will continue into quarters come, "said Tullia Bucco, an economist at UniCredit. 

The Spanish manufacturing sector contracted at its fastest pace in almost three years in April, while the service industry fell for the tenth month of row, according to the purchasing managers' index.

The export sector, the only one that has progressed over the last two quarters, slowed from January to March, the main economic partners of Spain is also experiencing the recession or slowdown.

Although Spain was able to master its accounts, the country is at the forefront if ever Greece, currently in a political impasse, should leave the euro. 

"It's not totally Greece leaving the euro, which is the main issue is the domino effect," said John Bearman, Investment Officer at Thomas Miller Investment.

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Toyota Motor, the leading Japanese automotive, said he expected to experience a substantial increase of its annual operating profit to more than 1,000 billion yen (9.7 billion euros), unprecedented since the outbreak of the financial crisis.

From January to March, Toyota has increased its quarterly profit more than fivefold to 238 billion yen, while analysts expected 223 billion yen.

This increase is partly explained by a gradual return of the group's production to previous levels to natural disasters that have disrupted last year.

Net income for the fourth quarter of fiscal offset has meanwhile risen to 121 billion yen against 25.4 billion last year. 

At a press conference, CFO Satoshi Ozawa has stressed "the extraordinary contribution of cost reduction efforts."

Akio Toyoda, grand-son of the founder of the group, has embarked on a strategy to reduce costs in all segments, Japanese production lines to those of Mississippi, through the design and engineering involved in the creation of new vehicles and equipment.

IMPROVING MARGINS

The aim is to boost margins Toyota and ride the wave of recovery in sales. The group said it expects to improve its margin to 4.5%, against 1.9% last year, allowing it to move closer to its goal of 5% that he wants to wait until 2015.

It is however far from the 7.1% margin posted by Nissan or Honda's 6.5%. It is even less than half to more than 10% of South Korea's Hyundai.

In fiscal 2012/2013 in progress, the group expected to increase its operating profit to 1.000 billion yen, while analysts expect 990 billion. Toyota also predicted a net profit increase to 760 billion yen against 284 billion for the year 2011-2012.

These comparisons are favored by the difficulties encountered last year during which Japan was hit by an earthquake and a tsunami before Thailand, where lies much of its production line, is in turn affected by floods.

Despite the strength of the yen, the main obstacle to its exports, Toyota is committed to build at least 3 million vehicles this year in its factories in Japan, nearly triple production of its local competitors, Honda and Nissan. 

Toyota has also said that its sales in emerging markets were in line with its projects, particularly in China, where sales from January to April will allow him to imagine a million sold annually vee ; vehicles.

Toyota announced in April a new program to reduce development costs by more than 20%, with an emphasis on sharing components.

Action Toyota ended unchanged Wednesday, before the publication of its accounts. She won more than a third since the low hit in late November by the Exchange.

Wall Street fell more than 1.2% Friday, accusing them of this fact its worst weekly performance since the beginning of the year, within the scope of the announcement of a number of new jobs for the month of April far below expectations.

The Dow Jones Industrial 30 yielded 1.27%, or 168.32 points to 13,038.27. The S & P-500, wider, lost 22.47 points, or 1.61%, to 1369.10. The Nasdaq Composite fell on its side of 67.96 points (-2.25%) to 2,956.34.

On the whole week, the Dow has sold 1.4%, the S & P 500 2.4% and Nasdaq 3.7%. The latter two had their worst week since November and December respectively.

Some 115,000 people were recruited in the nonagricultural sector last month, announced Friday the Labor Department, against 154,000 in March and 259,000 in February, two figures it is true revised ; s up (for a cumulative total of 53,000).

Economists anticipated 170,000 net new jobs for the month of April after the 120,000 originally announced for March.

The unemployment rate, calculated from a separate survey, returned to 8.1% of the workforce, against 8.2% in March and 8.3% in February, a level not seen since January 2009 when it was 7.8%. 

Despite this recent positive development, the market players have mostly retained the figure for job creation, which leads them to fear a slowdown in U.S. growth.

At its current level, it is already considered insufficient to significantly reduce unemployment.

The approach of elections in Greece and France and any uncertainties they may have a Europe which still has not put the debt crisis behind it also contributed to stopping the coast.

"Market participants liquidated their positions after the employment figures and should not change posture throughout the weekend," said Frank Lesh, an analyst at FuturePath Trading LLC. 

The energy values ​​were strongly accused the coup after the employment statistics, due to fears of a possible slowdown weigh on demand black.

Because of these fears, the price per barrel of U.S. light crude also fell 4%, from below $ 100 for the first time since February. The S & P compartment of the energy of Wall Street has sold 2.17%.

The action Exxon Mobil sold 1.26% to 84.57 dollars and Chevron that of 2.14% to 103.72 dollars, the two values ​​are among the largest declines in the Dow Jones .

The area composed of values ​​related to utilities, considered defensive in times of uncertainty, is the only one that ended in the green, with a gain of 0.16%.

The action Estee Lauder has lost 5.35% to 60.72 dollars after the U.S. cosmetics group announced earnings guidance deemed disappointing for the fourth quarter of fiscal year and expressed his concerns about the slowdown in China. 

The way LinkedIn has instead won 7.21% to 117.30 dollars after the professional social network has raised its annual results after better than expected first quarter, supported by strong growth in business services.

The action took Dole 7.69% to 9.39 dollars after the distributor of fruits and vegetables said he could split some divisions following a strategic review its activities.

The Commission has categorically denied the information relayed by the daily El Pais, that it was preparing an investment plan of 200 billion euros to boost growth. The European Commission President Jose Manuel Barroso.

The renewed growth in Europe is still debated. The European Commission denied on Monday preparing a kind of Marshall Plan for growth in the EU which would mobilize 200 billion, arguing that the figures quoted by the daily El Pais had no foundation. "The figures are not based on any reality," said Pia Ahrenkilde, spokeswoman for the European Commission, during a press conference in Brussels.  

The Spanish daily El Pais Sunday spoke a kind of "Marshall Plan" at the European level that would be able to mobilize 200 billion of public and private investment for infrastructure projects, renewable energy and technology tip. To believe the newspaper, this initiative includes several tracks already discussed for several months by the Europeans: large European loans (the "project bonds"), an increased role of the European Investment Bank (EIB) and the intervention of European mechanism for financial stability, a budget managed by the European Commission and secured on the Union budget.

Wall Street ended higher Friday, as a result of strong corporate earnings often, especially high tech values ​​such as Amazon. Com and Expedia began to counterbalance the economic indicators for the less mixed lately, like the GDP released Friday.

The Dow Jones gained 23.69 points (0.18%) to 13,228.31. The S & P 500 is 3.38 points (0.24%) to 1,403.36. The Nasdaq Composite gained 18.59 points (0.61%) to 3,069.20.

Over the whole week, the Dow shows a gain of 1.5%, the S & P 500 gained 1.8%, while the Nasdaq 2.3% advance.

The Dow and S & P and enroll their weekly gain the highest since mid-March. For the Nasdaq, is the more substantial gain since early February.

Of the 287 companies in the S & P 500 that have published their accounts, 73% of the students have exceeded the consensus, according to Thomson Reuters data.

The gains of the day, even though moderate minimal, yet allow Wall Street to make its best weekly performance since more than a month.

Growth of the U.S. economy slowed in the first quarter mainly because of declining business investment, although the strength of the automotive market has helped ease the movement.

Another statistic was published on Friday, held better than GDP. 

The U.S. consumer sentiment improved slightly in April to its highest level since February 2011, according to final data from the monthly survey Thomson Reuters -University of Michigan.

Values, Amazon.com and the online travel agency Expedia surged 15.75% respectively and 23.54%, the two companies that reported results Thursday at the higher consensus and having allowed the Nasdaq Composite to register a gain slightly higher than the Dow or S & P.

Procter & Gamble lowered its earnings forecast Friday yearly because of the fragility of developed markets, more aggressive pricing of its competitors on certain products and pressure on prices in Venezuela in particular.

The action yields 3.63%. 

Ford announced Friday a drop in quarterly profit, a result of his difficulties outside of the U.S. market, but the results exceeded the expectations of investors.

The action coward 2.27%.

Chevron released Friday net profit up 4% in the first quarter, boosted by higher oil prices and improved margins in its refining background of declining its oil and gas.

The action ended unchanged.

Merck published Friday quarterly earnings slightly above expectations, boosted by tighter control of costs, but revenue has however disappointed expectations facing generic competition.

The action eventually stationary.

Deutsche Bank announced Thursday a decline in taxable profit in the first quarter, to 1.9 billion euros, due to exceptional charges and trading activity subdued.

A year earlier, taxable income was three billion. The Reuters poll gave it to 2.4 billion euros for the period under review.

The taxable profits of the corporate and securities division, usually the main generator of profits of the bank, declined to 1.7 billion euros against 2.3 billion a year earlier.

The new lawyer's former trader Jerome Kerviel, who was sentenced in 2010 to five years in prison for three farm loss of 4.9 billion suffered by the bank Société Générale ; eral in 2008, renewed the assault of his former company.

David Koubbi me, who just succeeded Olivier Metzner to defend the prisoner for his appeal hearing in June, wrote to the chairmen of the Assembly Finance e and Senate to be surprised that SocGen could receive a tax deduction of nearly 1.7 billion euros in compensation from the e episode.

In his letter obtained by Reuters has learned me Koubbi asks Jérôme Cahuzac Philippe Marini and the convening of a commission on this episode. This request will remain a dead letter at least for now, the Parliament sitting over pending legislative elections in June

But it is a way for Jerome Kerviel, also condemned in first instance to repay 4.9 billion euros, to start the assault on his former company , it has always accused of being informed of their risk practices and turning a blind eye as they pertained.

Koubbi is me in his letter that a tax deduction for exceptional loss is legally possible that if there were no obvious deficiency in the controls. Now this is the case, since the Banking Commission fined 4 million euros to SocGen in 2008 for this failure.

"It seems to me that the allocation of that amount in favor of Societe Generale goes against the established case law applicable to the deduction tax (…) I therefore ask you to convene a committee to inform our citizens, "the lawyer wrote in his letters.

Convicted of embezzlement, forgery and using false and fraudulent intrusion into a system of data processing, Jerome Kerviel, who was also sentenced to ; repay the loss, is currently free and still has not paid, the appeal is suspensive. 

The trial court ruled that he had deliberately violated his professional engagements and hidden the reality of its position in its hierarchy.

The young man admitted pronouncements risk of dizzy from 2005 to 2008 on European equity market indices, reaching nearly 50 billion euros, and camouflaged by other reversals of orders fictitious market, expected to cover the risk.

Unsettled after the announcement of their discovery by the bank, in full rout of financial markets, these positions, which were once largely the beneficiaries, ultimately caused a net loss of 4.9 billion euros.

The unemployment rate in Greece has reached a new record in January to 21.8% against 21.2% in December, said Thursday the department of statistics Elstat, confirming that the measures austerity and the debt crisis continue to weigh on the labor market.

The budget cuts imposed by the European Union and the International Monetary Fund (IMF) to bail out the country has sparked a wave of closures and bankruptcies.

Beginning in April, the unemployment figures are Greek seasonally adjusted.

The average unemployment rate in the euro area was 10.7% in January against 10.6% in December.

Fortunately, the index of construction costs no longer used for rent reviews. It increased by 6.85% over one year to the end of 2011 to reach a record level. A construction of new homes and office buildings in Marseille.

The index of construction costs (ICC) in France continues to climb. It increased by 6.85% year on year to reach 1,638 points in the fourth quarter of 2011, above its record dating from the previous quarter, announced the National Institute of Statistics and Economic Studies (INSEE) on Friday. The ICC, which was 1,624 points in the third quarter of 2011, had previously reached an all time high in the third quarter 2008 to 1,594 points.

Year on year, the CHF increases and 6.85% after rising 6.84% in the third quarter of 2011, 5.01% in the second quarter and 3.05% in the first quarter. Since the law of personal services from 26 July 2005, the ICC is no longer a reference to the rent review during the lease in the private rental market. He was replaced by the benchmark rents (IRL), which is now based on the index of consumer prices excluding tobacco and rents, since the enactment of the law for purchasing power in February 2008 . However, the index of construction costs is a reference for the revision of certain commercial rents, alongside the commercial rent index.

Banca Monte dei Paschi di Siena suffered a net loss of 4.69 billion euros last year and said Thursday it would pay no dividend for fiscal 2011, which is tumbling the stock exchange.

The market was expecting a loss twice as heavy, according to Thomson Reuters consensus I / B / E / S was -2.13 billion.

The third Italian bank, which is restructuring and has also undertaken to reduce the size of its balance sheet, recorded in its accounts for 4.51 billion euros of writedowns in total.

The capital ratio "hard" was 8.5% at end-2011 excluding 1.9 billion euros of bonds guaranteed by the state written in 2009 to strengthen its capital.

At 10:45 GMT, the share was down 8.2% to 0.3314 Euro, by far the worst performance of the European banking sector index (-1.37%). 

The competitors UniCredit and Intesa Sanpaolo also recorded huge writedowns on their fiscal 2011.

But analysts say Montepaschi particularly vulnerable because it has to find 3.3 billion euros of capital by June to comply with new European regulatory requirements.