News & Financial Advice

Wall Street opened sharply higher Friday in reaction to the publication of monthly U.S. employment considered reassuring.

A few minutes after the start of trading, the Dow Jones gained 1.18% to 10,441.65 points, the Standard & Poor's 500 index 1.31% to 1104.36 points and the Nasdaq Composite 2234.05 1.55% points.

The Dow 30 stocks were in green.

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

The markets will also monitor closely the figure of the ISM index of activity in the services sector at 14:00 GMT.

Home Depot, the world of DIY and interior design, gained 2.44%, boosting its progression before, which had already ranked at the top of the largest increases in the Dow.

On the Nasdaq, as Take-Two Interactive jumped to 15.71% after the publication of quarterly results better than expected and the recovery of group forecasts.

The number of unemployed in Germany fell in August to its lowest level since November 2008, thus establishing the conditions for continued growth in household spending needed to recover more balanced economy.

The Federal Labour Office said on Tuesday a drop of 17,000 job seekers in seasonally adjusted data (SDA) between July and August, whose number was reduced to 3.193 million.

This decline is however slightly less than that envisaged by economists to Reuters, who had anticipated a decline of 20,000.

In July, the decrease in the number of unemployed was 21,000 according to revised figures, against 20.000 originally announced.

The unemployment rate remained steady in August, and in line with expectations at 7.6% of the workforce.

On the employment front, Germany seems to fare better than its European partners, since the rate of unemployment in the euro area remained unchanged in July at 10%.

The German government has also been criticized by other countries, including France, who believe that Berlin does not enough to stimulate domestic demand, which would be favorable for exports of country partners.

"SUCCESS STORY"

"The impressive performance of the labor market can become a real success story if it eventually leads to a recovery in private consumption," said Carsten Brzeski, of ING Financial Markets.

"This is not only the decline in unemployment bodes well for private consumption but also job creation. Since the beginning of the year, the trend in employment is still growing," says he.

Berlin, however, reflected in an austerity plan intended to save 80 billion euros over the next four years.

"The U.S. economy is very bad right now," he told a press conference Heinrich Alt, the Federal Labour Office.

"There are a lot of risks.Until now the trend is stable but we can not ignore that the situation is more fragile than other periods of recovery. "

Economists estimate that slower growth should however not too cripple the labor market, while in the second quarter of the German economy grew at its fastest pace since the country's reunification in 1990.

"The economy will not be able to maintain these high growth rates. The pace will slow in the fall and next year.But the slowdown will not be strong enough to have a significant impact on the labor market, "says Eckart Tuchtfeld, Commerzbank.

In unadjusted data, the number of unemployed fell from 4,000 in August to 3.188 million against 3.192 million in July for an unemployment rate unchanged at 7.6%.

The Federal Office of Statistics for its part announced that the number of people working in Germany had increased from 40,296,000 in June to 40.305 million in July.

* Chart the evolution of unemployment in Germany:

r.reuters.com/nec48n

Lindt & Sprungli has increased its net profit in the first half but remains cautious for the year 2010 because of the volatile commodity prices and foreign exchange.

Net income was posted at 24.8 million francs (18.8 million euros) in the first half, almost tenfold from 2.7 million achieved a year earlier, said Tuesday the Swiss chocolate.

Analysts polled by Reuters on average expected 20.4 million.

"Despite the excellent results of the first half of 2010, Lindt & Sprungli sticks to what it was made public in March 2010, the company said in a statement, citing an economic environment not yet fully consolidated and conditions still volatile.

It confirms expected this year organic growth of 5% to 7% and operating profit (EBIT) of 300 to 340 million francs.

The EBIT after exceptionals jumped by 40.7% in the first half, to 33.9 million francs, against 26.8 million expected by the market. Turnover increased 7.9% to 1056.6 million (against 1.043 million expected), after 979 million in the first half of 2009.

In value terms, the group notes that most of the chocolate market grew moderately in the first half, while in terms of volumes, it continues to see a certain stagnation.

Wheat prices on the Chicago market gained nearly 8% in plenary on Thursday, near their highest level in two years, following the announcement by Russia to stop its exports of cereals.

The current drought in Russia, one of the worst in the history of the country, devastated crops in several regions, which causes several days a soaring wheat prices on international markets.

Investors are afraid that pressure on this market over the coming months in the absence of a major world exporters.

FAO, United Nations Organization for Food and Agriculture, on Wednesday reduced about 4%, or 25 million tonnes, its forecast for world wheat crop for 2010.

If it considers that the offer is sufficient for now, she warned that "if the drought in the Russian Federation continues, this could pose problems for winter crops in this country, with potentially serious implications for deliveries World wheat in 2011 and 2012.

The benchmark price of wheat in Chicago jumped 82% since June 9

On Thursday, panic buying of investment funds and traders on the Chicago Board of Trade (CBOT) also focused on corn and soybeans, which gained 2.6% and 0.8%.

Russian Prime Minister Vladimir Putin said Thursday the suspension of exports of cereals and processed agricultural products between August 15 and December 31, a decision that applies to contracts already signed.

He has confirmed information previously reported by Russian news agency Interfax, which had triggered the wave of purchases.

"The announcement of Putin panicked everyone (…).Nobody knows how far we could go, "said Paul Haugen, Vice-president of Newedge USA.

At midday in the U.S., the futures contract on wheat for September delivery gained 60 cents, its highest increase allowed to 785.75 cents, the highest level these last 23 months by the maturity nearest market.

DISTORTIONS

"I would not be surprised if it took 60 or 70 cents extra, even more during the next session," said Joe Bedore, the brokerage firm FC Stone in Chicago.

Kazakhstan, another major wheat producer in the Black Sea basin, said anticipating a fall of 35% of its harvest and study by the end of a request from Moscow to reduce its own exports.

International trading giant Cargill said he expected that such trade barriers distort the global wheat market.

In the European market Euronext, the benchmark November contract on wheat milling peaked Thursday at 236 euros before ending the session at 223.25, up 6.8% on the day.It was up nearly 60% since late June

Wheat has not yet regained its record levels of 2008, when prices in Chicago had exceeded 13.30 dollars a bushel, boosted by fears of a global food crisis.

Some analysts also believe that the current increase is overstated, noting the high level of global supply after two consecutive years of record crops.

The absence of Russian wheat in the coming months could also benefit other major exporters, U.S. or Europe.

"A Case of Russian exports would distribute maps of the international wheat market," said one European trader."This would open up enormous opportunities for new sales in Western Europe and the United States."

But the rise in food prices may be exaggerated, says a French professional, for whom the market is driven by purely financial factors.

"When the market (Chicago) won a dollar in four days, not for fundamental reasons," said he. "The decline, if it occurs, will be equally severe."

Manutan announced Friday that its sales had increased 9.3% in third quarter 2009-2010 to 132.9 million euros, the group has enjoyed an upturn in all regions of Europe where it is present.

Of the first nine months of the year offset, net sales rose 0.2% on a constant basis and 18.7%, taking into particular account the integration of Local Businesses Camif, acquired in March last.

"The end of the first nine months of activity marks the return to growth in aggregate group," commented Manutan in a statement, without giving targets for the current year.

Offer Pigasse-Bergé-Niel got the endorsement Monday of the supervisory board of the World allows both parties to enter into exclusive negotiations to resume and recapitalization of the newspaper said Monday the company director of the editors of World.

France Telecom announced earlier in the day that it would withdraw its offer of resumption of the World after the supervisory board, with the competing offer Friday received strong support from employees every day.

Two meetings were held in the afternoon.The supervisory board of the World Ltd has approved 13 votes for and 5 abstentions, while the supervisory board of the World Partners and Associates, which owns 60% of the World Ltd, has voted with 11 votes with 9 abstentions, told Reuters Gilles Van Kote of the Society of Editors of the World.

The latest version of the legislation on the reform of financial regulation has been adopted Friday by a committee of Parliamentarians American.

To be finally ratified, the text must still be approved by the Senate and the House of Representatives, then be subject to presidential signature by July 4.

U.S. legislators have therefore put a stop to the proposed overhaul of financial regulation in the country, having reached agreement on new restrictions on banking activities and proposed a compromise on the issue of derivatives.

It was around midnight at the U.S. negotiators Democrats have managed to find a first ground on the two thorniest issues of the bill.

The two clauses in question are intended to protect the banks' assets in risky activities of proprietary trading, causing the financial crisis of 2007-2009 which resulted in a deep recession and have led the state to fly to the rescue of the banking sector.

The Democrats were under pressure to complete their work within the next few hours, before President Barack Obama becoming engaged in discussions with leaders at the G20 summit in Toronto this week-end.

After 15 hours of intense negotiations, Democrats have finally agreed on a modified version of the so-called "Volcker rule" designed to restrict trading on own account and prohibit banks or the least strictly regulate their involvement in hedge funds and private equity investment.

MODEL TYPE

This relaxation would allow such banks to invest up to 3% of their total Tier 1 capital, core capital in hedge funds and private equity investment.

The project oversight of the derivatives market has however more trouble for lawmakers.This market 615,000 billion has to exacerbate the crisis and led to such a rescue of 182 billion dollars of public money for the insurer American International Group.

Democratic Senator Blanche Lincoln has reached a compromise with Treasury representatives aimed at forcing banks to divide their swaps which will also offer the opportunity to reach a wider variety of house swaps.

After hours of negotiation, other Democratic lawmakers have finally reached its position.

Dozens of Democrats in the House of Representatives, saying it would strengthen offshore activities, threatened to vote against the entire bill if continuation of this proposal.

Carrying out such a bill would be for Democrats a victory on the legislative front, after the health reform passed this year, more significant than the midterm elections will be held in November.

If the purpose of this bill, which has nearly 2,000 pages, is to avoid a global crisis similar to that which began in 2007, it will create a strong contrast constraints on the banking sector and could deprive him of several billion dollars in revenue.

Wall Street has launched major maneuvers to sink the project, despite a growing popular protest criticizing the bank failures and bonuses of executives. The Democrats had to suppress their ambitions, however radical overhaul so as not to deprive the votes of parliamentarians "centrist".

The European Commission has condemned the French Bolloré to pay a fine of 21 million euros for price fixing in the market for carbonless paper.

The Commission fined Bolloré fined 22.68 million euros in December 2001 but the company had appealed to the European Court of Justice annulled the decision in September 2009 for procedural issues.

"The Commission has re-adopted the decision by correcting the procedural error that led to the cancellation of the 2001 decision," the EU executive said in a statement.

It has reduced the original amount of the fine to reflect the cooperation of Bolloré.

The Nobel Prize in Economics Paul Krugman attacked in an interview published Monday in Germany's unofficial candidate to head the European Central Bank, saying that naming Axel Weber present a "substantial risk (…)" for the euro. Asked by the newspaper Handelsblatt in an appointment of the current president of the Bundesbank to take over from Jean-Claude Trichet, Mr. Krugman replied: "The risk for the euro area would be considerable."

Economist criticizes Dr. Weber, one of the favorites to head the ECB, interested only in the fight against inflation even if it means endangering growth. "The risk of contagion (problems) from Greece to Spain and Portugal to Italy would be much greater with a president so conservative for the ECB," he saidKrugman, recognizing not personally know the owner of the Bundesbank.

Weber is concerned about inflation even when there is not, "he joked, adding:" If you are looking for someone who wants a 0% inflation even when the unemployment rate is 13 %, Weber is your man. " "The ECB must become much more flexible and aggressive. His conservative politics is primarily due to the sensitivity of Germany", he also analyzed.

Unlike the American Fed, the ECB has a clear mandate to preserve price stability, and not to support growth. Mr. Krugman also criticizes implicitly the direction of German economic policy, now focused on fiscal restraint. "This is not the time to be worried about the deficit", said the Nobel Prize, in line with recent remarks by U.S. President Barack Obama.