International Business News

The Tokyo Stock Exchange finished up 2.25% Friday, the coordinated action announced by major central banks easing fears of a credit freeze in Europe.

The Nikkei took 195.30 points to 8,864.16 and the Topix, broader, ended up 16.37 points (2.18%) to 768.13.

Financial stocks have borne the market after major central banks are expected to cooperate to provide banks with dollar loans to three months to prevent freezing of the money market which would be caused by the crisis of sovereign debt in Europe.

The debate over the possible lack of Greece and the prospect of another banking crisis are precisely the two main topics that will be addressed Friday and Saturday, European finance ministers on the occasion of an Ecofin Council again decisive.

"If the meeting is able to allay the fears of contagion from the euro area and American values ​​continue to rise, the Nikkei could rise above the 9,000 points next week," said Mitsushige Akino, manager funds at Ichiyoshi Investment Management Co.

Guyenne et Gascogne reported Wednesday a loss in the first half, the franchisee of Carrefour have been penalized by its subsidiary Sogara whose accounts were affected by several non-recurring items.

In a statement, the group, which operates hypermarkets and supermarkets in the south-west of France and Spain, said he hoped the goal of an annual output "significantly" positive after a first half he considers disappointing.

"During the second half, the three entities Guyenne et Gascogne (the parent company Guyenne et Gascogne, Sogara and Centros Comerciales Carrefour, Ed) will step up their efforts to reduce distribution costs," the company said.

In the first six months of the year, the group posted a net loss of 1.335 million euros against a net profit of 6.382 million euros a year earlier.

Sogara, the loss amounted to 7.898 million biannual euros, against a profit of 8.026 million euros, was penalized by the difficulties of the consumer electronics sector, which has added a voluntary sacrifice margin due to a policy aggressive promotional explains Guyenne et Gascogne.

"The net result was affected by accelerated depreciation made important part of the transformation of Planet Carrefour stores, as well as a penalty tax on VAT litigation," added the company said that the first half of 2010 was received a substantial capital gain on disposal.

At the Paris Stock Exchange before the announcement of interim results, the action Guyenne et Gascogne ended up 3.35% to 9.76% on the gain since the beginning of the year and more than 590 million market capitalization of the group.

The U.S. stock markets ended the week on a negative note as investors considered disappointing figures sanctioning of the ADP survey on employment aroused fears about the growth in the U.S..

The U.S. economy created far fewer jobs than expected in June and the unemployment rate reached 9.2%, its highest level since December, according to official statistics released Friday.

"This is an appalling record of employment, but that would have caused less surprise.The U.S. labor market will more than a few weeks to get rid of the slow growth of the last two quarters, "said Rob Carnell of ING.

The Dow Jones dropped 0.49% Friday, 62.29 points, to 12,657.20, the S & P 500 benchmark index fund managers, has sold 0.70%, 9.42 points, 1343.80 and Nasdaq, heavily weighted technology, lost 0.45%, 12.85 points, to register for 2859.81.

"If the employment figures are disturbing, it's still better to wait for results before the season to panic," said Phil Dow, RBC Wealth Management.

"In our view, profits and sales should be much better than expected, and with the current valuations, go to the market is very attractive."

Alcoa, as usual, will be the first industrial group to publish its results, then followed by JPMorgan, Citigroup and Google.

The Internet giant has also yielded 2.67% Friday to 531.99 dollars, as reacting to the lowering of the recommendation from Morgan Stanley, had to "market weight", citing concerns over margins .

Other values ​​of the day, the group of internet recruitment Monster Worldwide dropped 3.17% to 14.65 dollars following the release of U.S. employment figures.

Same causes, same effects: the trade deficit of France in May broke the record set the previous month, due to higher imports, especially energy, and relative weakness of exports.

The negative balance of trade balance rose to 7.422 billion euros, after 7.174 billion in April, according to figures released Thursday by Customs.

The first five months of the year, the French trade deficit thus came to 33.4 billion, a figure up 60% year on year and is already nearly two-thirds of the annual deficit in 2010 (51.4 billion).

This rapid deepening can be explained by a combination of French weakness in exports and strong imports.

A 34.2 billion euros in May, exports are still unable to find their average level of the year preceding the outbreak of the financial crisis in September 2008, an average of just over 35.4 billion.

"France is among the major industrialized economies (excluding Japan), which recorded the lowest export growth after the trough of the crisis," said Alberto Balboni economist at research firm Xerfi.

Meanwhile, imports are installed at over 41 billion per month, a level higher than before the crisis.This partly explained by the surge in oil prices, which inflates the energy bill of France.

But this structural factor is not sufficient alone to explain the steady decline in the trade balance: it only amplifies the persistent weakness of French industry for export.

"AÉRODÉPENDANCE"

Thus, while the trade deficit in manufacturing has more than doubled in less than a year (4.8 billion in May), the excess of transport equipment was divided by three and that of the food industry has increased by less than 200 million euros.

Secretary of State for Foreign Trade, Pierre Lellouche, this resulted in competition increasingly fierce global in areas such as rail or nuclear.

"For a long time, the weaknesses of foreign trade in France were obscured by the so-called 'major contracts,'" he told reporters Thursday."But customers of yesterday have become the competitors of today."

For its part, Alberto Balboni of Xerfi, highlights the significant decline in aerospace exports (-6.2% over one month) and he sees "some evidence" aérodépendance 'of France, aerospace accounts for more 10% of French exports and any slowdown in performance has a significant effect on the external accounts of the country. "

In May, France has sold its 21 Airbus reported 1.334 million euros against 26 in April to 1.702 million.

The deficit in April had increased partly because of the purchase by Air France-KLM.In the aftermath, hundreds of MPs had called the airline to choose Airbus rather than Boeing for its next big order, expected this fall.

Even if the services are doing probably better than the manufacturing sector, these figures confirm a sharp slowdown in economic growth in the second quarter, said Dominique Barbet, senior economist at BNP Paribas.

"The growth of gross domestic product in the second quarter (+0.3% at best) should be much lower than the first (+0.9%)," he wrote in a research note.

AirAsia announced Thursday a firm order for 200 Airbus A320neo, remotorisée version of the A320, setting a new record number of aircraft purchased at once by a single airline.

Based on list prices, this command, which Reuters had heard from June 10, representing $ 18.2 billion.

In terms of number of aircraft, it exceeds the record of 180 aircraft that had been prepared the day before by the Indian airline Indigo.

AirAsia, based in Malaysia and the first low cost airline in Asia, with this command becomes the largest customer of Airbus.

In a statement, AirAsia said the European aircraft manufacturer has selected the LEAP-X, manufactured by CFM International, to equip its A320neo.CFM is a joint venture between General Electric and Safran.

Around 11:45, the action EADS, Airbus' parent company, is one of the few components of the CAC 40 to be in positive territory, rising 1.60% to 22.20 euros while the CAC lost 1.09 % and the index values ​​together yields 0.74% European sector.

The title Safran advance its share of 0.24% to 29.17 euros.

"With this landmark transaction, AirAsia has secured its future and meet the huge growth potential in the Asian market," said Tony Fernandes, CEO AirAsia, said in the statement of Airbus.

OVER 1.000 COMMITMENT S FOR THE FAMILY NEO

In value terms, the order placed by AirAsia is the third largest order for Airbus harvested, behind those of Qatar Airways and Emirates, the latter to also announce the purchase of new Airbus on Thursday.

The Airbus is a A320neo remotorisée version of the A320, the aircraft's best-selling by the European aircraft manufacturer, which should enter service in 2015 with the promise of fuel economy by 15%.

Since the beginning of the Paris Air Show, which opened Monday, Airbus reported 817 orders and intentions of orders for aircraft from the A320neo.

For besides that of AirAsia, the airline GoAir has confirmed on Thursday an order for 72 A320neo.

John Leahy, Airbus commercial director, said Wednesday that the bar 1.000 commitments for the plane, taking account of those who had been concluded before the show, was exceeded in 1029.

According to industry analysts, the success of the A320neo is likely to further accentuate the pressure on Boeing for a determination on the future of B737: repowering, as did the Airbus A320 redefining or larger.

The two aerospace giants are engaged in fierce competition for control over the single-aisle aircraft, which constitute the bulk of the world fleet and are purchased in numbers, especially by Asian companies and those offering services to low cost.

Boeing said on Sunday that he did not rush to decide whether it will choose the repowering or designing a new version of its 737, in spite of orders received by Airbus for A320neo.

The U.S. group said it could not announce anything on this issue by the end of 2011.

The French Finance Minister was in New Delhi Tuesday as part of his tour in emerging countries to plead his candidacy. .

The French Finance Minister Christine Lagarde said Tuesday she would have a "lower level of testosterone" to head the International Monetary Fund (IMF) if its bid was accepted.

"If I am elected CEO, I'm plumb as a woman, not necessarily pants, and certainly with a testosterone level that is lower than many in this room today," he quipped with a smile Lagarde.

She was responding to a question on how she would manage the international organization at a press conference in New Delhi after meeting Indian Prime Minister, the Minister of Finance and Chairman of the committee plan.

Considered the favorite, she applied to succeed his compatriot Dominique Strauss-Kahn, who resigned after being accused of attempted rape of a maid in a hotel in New York.

In October 2008 an extramarital liaison with a Hungarian economist of the IMF, which was the direct supervisor, had nearly cost him his job.

After the recent "thunder" from the DSK affair, several French politicians have found inappropriate comments they could be targets during their political career.

The French Minister of Sports, Chantal Jouanno, for example, said she dressed in trousers rather than skirts when she had to go to a mostly male audience.

Dexia said Friday accelerating its asset sales to release securities of States and improve its profitability, which will result in the immediate cost of 3.6 billion euros in the second quarter.

The impact of the sale of Financial Products, its portfolio of purely financial as very risky, will be "partially offset in 2011 by the performance of commercial business, for their part" in line "with the objectives of Dexia, has he said in a statement.

"We let the weight of pure economic activities inherited from the past (…) We will become profitable significantly from the third quarter of this year, "said Pierre Mariani, Chairman of Group Management, during a conference call.

Dexia, which escaped bankruptcy in the fall of 2008 through a bail granted by the Belgian, French and Luxembourg, was forced last year by the European authorities to divest some of its activities in exchange for aid received during crisis.

"They spend a significant provision but reduce their toxic assets and their liquidity needs," said one trader.

Dexia shares was suspended from trading since the mid-morning when met on board, has taken on increased measured at 13.40 after advertising, before accelerating its progress in the afternoon.

Suspended 2.514 euros (3.24%), the title is treated to 2.605 euros (6.98%) at 15.15, compared with an increase of 1.15% of the European sector index increased by hope a softening of prudential standards in the EU Basel III.

STRENGTHENING THE CAPITAL RATIO

The announcement was also well received by analysts.

"Dexia continues to clean up its portfolio and will benefit from the third quarter of this year, which is reassuring.In addition she is released from the guarantee of the state, "Judge David Thebault, head of quantitative trading at Global Equities."She has chosen her day."

The Franco-Belgian financial services, which assigns this transaction the assets of a high risk category and significantly reduces its exposure to U.S. housing market, anticipates that its ratio of Tier 1 capital will remain above 12% the end of 2011.

"This plan leads us to reduce our exposure to the U.S. and improve the long term our liquidity positions," said Pierre Mariani.

To achieve these sales, Dexia password impairment on assets to bring them to market value.

"This is $ 9.5 billion in assets now secured by the states that we'll go to the market value to sell them.This will lead us to abandon the safeguards of the relevant states, "he said.

As part of its disposal plan, Dexia has already sold its subsidiary Slovak investment fund Penta Investments and is currently negotiating the sale of its activities in Israel.

The sale of its insurance activities in Turkey for its part must be completed in the second half of 2011.

On the occasion of the publication of the report Tuesday morning CYCLOPE, the bible of raw materials, Philippe Chalmin, Director, surprises by saying that the surge in commodity prices does not penalize global growth. Traders work on oil prices in the New York Stock Exchange Global growth is sufficiently robust to withstand the new surge in commodity prices?

World prices for raw materials have now exceeded the record levels of 2008. And that shock is matched only one who hit the world in the 1970s. However, I believe that global growth is strong enough to cash relatively easily. Without being too provocative, I would even say that it is finally good news for global growth.The soaring prices of raw materials keeps out of the water savings that would be completely without the pension into trouble. I think Russia and in some oil producing countries. The shock on raw materials can therefore maintain an illusion of growth. Certainly in Europe, this shock should result in more inflation and rising interest rates, which ultimately maintain the rising euro. But let's be honest, the problems of Europe and especially the crisis of European public debts have nothing to do with raw materials. Let us not forget that the country that suffered the strongest shock that is China …and continues to advance on a train to hell in about 10% a year!

What financialization of commodity markets is it responsible for soaring prices?

I keep repeating that financial players who are certainly more and more present on the commodity markets do not price trends. Deepen capital markets can certainly explain the volatility of prices, as we saw recently with the yo-yo oil prices and the positions taken by some large banks, but only the foam on the waves. The best evidence: the commodity markets the most tense (such as those of metals) are also those who are least financialised.

Can we limit the volatility of prices, as would Nicolas Sarkozy?

If regulation is meant stabilization, it was all wrong.It is actually possible to further regulate certain markets, including derivatives to limit speculation, it does not necessarily mean that even limited progress during the surge. It's totally unrealistic!

Falling commodity prices, oil and metals in the lead, led a growing number of fund managers to stay out of the compartments riskier equity markets, which could be the harbinger of a correction on Wall Street.

In recent weeks, investors have come out of cyclical stocks such as energy and basic materials to turn to defensive sectors to more stable growth as pharmaceuticals and utilities.

Market players are increasingly concerned that more shares are valued based on overly optimistic economic forecasts.The recent fall in commodity prices – the price of silver fell 30% – and the comeback of pharmaceuticals in this direction.

Those responsible for the investment policy at Goldman Sachs and Credit Suisse estimate that the results will be better for the actions that are not related to the economic cycle.

Some indicators of the program next week will learn a little more about the health of the U.S. economy, as the Empire State index and "Philly Fed" relating to manufacturing and more data on the real estate sector.

Over the whole of last week, the Dow Jones sold only 0.3%, the S & P 500 and Nasdaq 0.2% remained stable, despite the emergence of concerns about slowing economic crisis.

Specialists, however, are not necessarily agree on the reason for the drop in raw materials.

Some say that near the end of quantitative easing program of $ 600 billion the Federal Reserve, intended to buy U.S. Treasury bonds, helped spark a massive investment into equities and commodities, with creation a bubble in these assets and that the bubble began to burst.

For others, the decline in raw materials is a sign of weak economy.And to quote the copper, used in many sectors of the economy, which has fallen to its level of five months ago.

"MUCH LESS OPTIMISTIC"

Nevertheless, any investor appetite for shares is reflected in the performance of defensive stocks. The S & P 500 defensive stocks and that of utility companies have respectively gained 2.9% and 2.6%.

However, water companies and electricity decreased by 1.5% over one year of their first quarter results. This is the worst performance of the ten sectors of the S & P.

Pharmaceuticals, which were long shunned, are up for seven weeks.They have won nearly 15% since the beginning of the year.

Conversely, the energy sector, down 7.8% over the last seven weeks is the worst student.

Goldman Sachs said "much less optimistic about the short-term actions" and Doug Cliggott, head of equity strategy at Credit Suisse, expects a decline of 10% of the market when the program of quantitative easing by the Fed ( QE2) will end in June.This is already what had happened at the end of the first wave of purchases by the Fed.

EPFR Global, which tracks flows of capital, announced Friday that the funds invested in international equities had recorded their first withdrawal of funds since mid-March.

Small and mid-cap, which generally lead the charge in a bull market began to show a lower outperformance relative to large "capos."The IPO market is showing signs of fatigue after a flurry of arrivals of Chinese companies on the market.

UNDER HIS COURSE INTRODUCTION

The current Chinese Dating Site Jiayuan.com fell for her debut on the Nasdaq, while the social network RenRen, said the Facebook of China, has fallen back all its gains since its IPO and is trading now as the price of introduction.

The CBOE volatility index, the VIX is now at its levels before the financial crisis, which could mean that investors are a little too happy about themselves.

Some say however that the market can still go before the next profit taking. They highlight the good performance of companies in the first quarter.Just under three quarters of companies in the Standard & Poor's reported results above expectations.The S & P distribution has recently hit record highs.

The earnings season is coming to an end in the United States, which is still pending, however, the quarterly performances of Wal-Mart Stores, the leading distributor worldwide.

Given the good performance so far, the results of the first quarter of the components of the S & P 500 that have already announced their figures – just under three quarters emerged at a level higher than expected – more market believe that Wall Street still has some room for improvement before the announced withdrawal.

Peter Lee, technical analyst at UBS, believes that the S & P will go up to 1400-1450 points this summer before declining.The S & P ended Friday at just under 1340.

Ken Fisher, Fisher Investments, which manages in $ 38 billion of shares, believes that high expectations are a sign of a market that was difficult to hover around current levels with movements into and out of each other over short periods.

David Joy, head of investment policy at Columbia Management Investment Advisers, one of the largest fund managers with over U.S. $ 350 billion under management, has reduced its equity investments in the last three months.

He began the year with a modest overweight position in equities, then return to a neutral weighting.

While governments are questioning the means to implement to promote the emergence and development of medium-sized companies in France, a study done poinsur their health after three years of crisis.

The mid-cap companies (ETI), French locomotive of the economy, it has weathered the crisis? According to a study by KPMG and OpinionWay among 250 executives, 44% of them have made over the last three years growth in their turnover, 43% have seen their business stagnate and 13% decrease.

It is in trade, followed closely by the services that patrons have outperformed as 47% and 46% said they had improved their growth over the period. Only 38% in industry. And it is in companies with 1000-4999 employees that the activity has increased the most: nearly half saw their sales jump.

And in the coming months? 56% of employers surveyed are considering an increase in their activity for the next two years, maintaining 42% and 2% lower. 31% of ETI combine recent history of growth and optimistic outlook on their sales. ETI These are typically medium, driven by innovation and the international, regional partnerships registered in, find experts from KPMG.

Engine of Growth? Innovation (29%), streamlining their production processes (29%), not forgetting the international (21%). Because 80% of ETI activity abroad. This has been formalized through contacts made abroad (37%), conquest of new markets (36%) or production abroad (29%).

And what are their brakes? Company officials first mentioned the economy (65%), taxes (29%) and the costs of purchasing and materials (23%). So, in employment, these large SMEs remain cautious. Only 27% plan to increase their numbers within two years and 68% to maintain them. 61% since the tax environment remains unstable in France and 35% administrative procedures too cumbersome.