News & Financial Advice

Wall Street ended Thursday on a stable note, after having fluctuated within a narrow range throughout the session, reacting according to the results of companies in the moment but investors throughout remained on the sidelines, on the eve of the release of employment statistics from January.

In contrast, the Nasdaq was up, driven by the specialist Qualcomm semiconductors.

Statistic of jobless claims was an auspicious omen for the employment figures on Friday. The weekly jobless claims fell in the United States during the week to January 28, at 367,000 against 379,000 (revised) the previous week.

Economists expect 150,000 new jobs in January from 200,000 in December, with an unemployment rate that would not move to 8.5%.

Investors have not reacted more, it seems, the intervention of the President of the Federal Reserve before a parliamentary committee. Ben Bernanke said that the European financial crisis continued to threaten the U.S. recovery and the Federal Reserve will do whatever it takes to prevent it penalizes world's largest economy.

The Dow Jones lost 11.05 points (0.09%) to 12,705.41. The S & P 500 gained 1.45 points (0.11%) to 1325.54. The Nasdaq Composite Index is 11.41 points (0.4%) to 2859.68.

The technology continued to outperform the market. Qualcomm has registered its highest level in 12 years after the quarterly that easily beat the consensus. The stock has gained 1.96% to 60.73 dollars.

The values ​​of health have instead included in the red after quarterly results released by the pharmacist Merck (-0.49%), the insurer Cigna (-3.39%) and Medical equipment manufacturer Boston Scientific (-4.1%). The sector index lost 0.41%.

Merck said on Thursday quarterly results better than expected, thanks to lower spending on research, while providing a profit in 2012 more or less stable compared to 2011, in anticipation of the arrival of its lead drug generic, anti-asthmatic Singular.

The food group Sara Lee and Kellogg have also mounted after the announcement by both companies to better than expected quarterly results and confirmation of their annual forecasts in spite of significant changes in progress.

Kellogg took 2.6% and 4.36% Sara Lee.

The Financial Markets Authority (AMF) French said Wednesday it has sanctioned two investment management companies, ADRs and Alternative Leaders France France, for failures of control and monitoring related to massive fraud orchestrated by Bernard Madoff until 2008 .

The fines amounted to 300,000 euros and 150,000 euros EIM France for Alternative Leaders France (ALF), the AMF said in a statement.

The exhibition of these two companies to the Madoff fraud was at the time of the revelation of it, from 63.5 million to three million ADRs and for ALF, said the AMF.

The London Stock Exchange could launch a trading platform for SMEs in France provided that the incumbent operator, Euronext, or the authorities do not object, said its managing director Xavier Rolet in an interview published Thursday by The Tribune.

The London Stock Exchange began informal discussions in this direction, said Xavier Rolet, adding he had no deadline for now.

"We were contacted by French companies, which were probably disappointed by the abandonment of the SME market by the incumbent operator, Euronext," said the leader.

The 17 countries in the euro area could introduce a tax on financial transactions, even if other states of the European Union are opposed, said German Finance Minister Wolfgang Schäuble.

The German Finance Minister Wolfgang Schäuble estimates that 17 countries in the euro area could introduce a tax on financial transactions, even if other states of the European Union are opposed, in an interview published Monday in the Financial Times. The euro area could be used to test the effectiveness of such a tax and thus convince the United Kingdom to join it, according to Mr.Schäuble hopes that an agreement on the issue at the G20 summit on Thursday and Friday in Cannes (south-eastern France).

The United States and Canada, but also China and Russia have opposed such a tax, new version of the "Tobin Tax" advocated for years by associations fighting against poverty, and that Paris and Berlin are now calling their wishes. The Europeans have agreed to implement this tax in Europe and the European Commission should make proposals to this effect soon. But within the EU several countries are opposed, as the United Kingdom who fears for his financial center of London and Sweden.

European banks may need more than 100 billion euros of fresh money to the crisis of sovereign debt, said Saturday in Ireland, on the eve of a meeting between Nicolas Sarkozy and Angela Merkel should be largely devoted to the recapitalization of the sector.

Illustration of the urgency of the matter: Paris and Brussels talks continued Saturday for an orderly dismantling of Franco-Belgian group Dexia, the first European victim of the bank debt crisis.

Germany and France have so far given conflicting discourses on the best way to strengthen banks weakened by the devaluation of their holdings of sovereign debt of countries "devices" in the euro area and by the recent turmoil in the markets Financial.

Paris would prefer to use the European Financial Stability Fund (EFSF) to recapitalize their own banks, while Berlin insists on booking this instrument of last resort actions, such as support to Greece.

The International Monetary Fund (IMF), meanwhile, estimates that the capital requirements of banks could reach 200 billion euros, the equivalent of half the resources of EFSF.

The Irish Finance Minister, Michael Noonan, said Saturday that the necessary capital to strengthen banks' balance sheets could come from different sources but the overall bill would in any case heavy.

"I think everyone agrees that far exceed 100 billion (euros)," he told reporters on the sidelines of an economic conference in Dublin.

"I know some of the major German banks with which I myself have discussed plan to raise money in the market, so there will be a private financing. Other banks would have EFSF funds. Others depend on their government to provide capital, there will be many ways to do this, "he added.

EACH SETTING THE CONDITIONS

Some officials believe that forcing many major financial institutions to accept public funding would not make the best use of European resources.The banks, themselves, fear that this strategy branding some of them and inflame tensions in the markets.

The German daily Frankfurter Allgemeine Zeitung (FAZ) reported Saturday, citing financial sources, that the first five French banks would be willing to receive 10 to 15 billion euros invested by the French state on condition that Deutsche Bank, a number Germany is also increasing its capital.

The CEO of Deutsche Bank, Josef Ackermann, is opposed to any entry of the state capital of his group and he ruled out a capital increase.

A spokesman for Deutsche Bank reiterated Saturday that double principled position and declined to comment further.

Nicolas Sarkozy, who received Saturday the Executive Director International Monetary Fund (IMF), Christine Lagarde, to arrive in Berlin in mid-afternoon on Sunday for a meeting and a working dinner with Chancellor Angela Merkel.

Their discussions will be devoted to the preparation of the G20 summit in Cannes in early November and that the European Council and summit of the euro area provided 17 and 18 October, while Seventeen still struggling to implement the new mechanisms supposed to solve the debt crisis.

In Slovakia, in fact, the various parties in the ruling coalition Saturday remained at odds over ratification of the Europe Agreement of 21 July which provides for the strengthening of EFSF, one of the smaller parties placing conditions on his support.

Slovakia and Malta are the last two countries in the euro area has not ratified the agreement in July that some regional leaders believe already passed.

The German finance minister, Wolfgang Schäuble, has acknowledged in an interview with FAZ that Europe may have underestimated the resources needed to reduce the burden under which plunged Greece.

"The risk is high to see this crisis about a further escalation and spread," he added.

A view shared by the Greek representative at the IMF, for which the financing needs of Athens will be higher than current estimates.

"This lack of funding will be covered either by an increase of 109 billion loan decided on July 21 or by a private debt restructuring," he told the Greek daily Imerisia.

Thales plans to sell part of its services activities and the name of GFI Informatique circulating as potential buyer, said on Tuesday a union source, confirming a report in Les Echos.

The electronics and defense could be separated from his division "Business Solutions" specializing in large scale integration projects from hospitals in Paris.

"There is a project on 'Business Solutions' management said they were approached for this activity," the source said union Thales.

The name of GFI Informatique has advanced the hypothesis of interest Logica, cited by Les Echos, being more of a "rumor," she said.

A spokesman for Thales declined to comment, as did a spokeswoman for Logica.GFI Informatique, person was not immediately available for comment on the report.

The action Thales wins 3.09% to 24.835 euros to 3:50 p.m., in a market up strongly, gaining 4.7% the SBF120.

The IT services division of Thales, who directed last year 81 million euros in sales and employs approximately 500 people, is part of Thales Services most exposed to competition and further from the heart business of Thales, said a close case cited by Les Echos.

The newspaper said two others, those of outsourcing and agencies in the regions, between them representing more than 300 million in revenue and 3,000 people, could also be offered for sale.

Of such sale will take place when discussions continue between Thales and Safran on a possible asset swap in the defense, which would require the payment of a cash payment by Thales.

Activities that may be made by Safran are indeed valued at 650 million euros in turnover, while those of Thales would represent, according to press reports, that 200 to 300 million turnover.

A year after a break, Safran and Thales had announced in May, have resumed talks on an exchange of assets in the defense, under pressure from the state, their common shareholder that seeks to reduce duplication in a rapidly budget reduction.

The euro rebounded frankly Monday at midday, as equity markets driven by banking stocks after opening sharply lower, thanks to hopes for the European Central Bank cut its interest rates for support the economy.

The ECB is the only one of four 'major' world's central banks to have begun a cycle of rising rates, falling twice since April. The easing of inflationary pressures reinforces those who believe that the ECB will be forced to ease monetary policy because of sluggish growth.

"The ECB does not undertake to advance and rate cuts can not be excluded.It all depends on future developments, "said Ewald Nowotny in the morning, a member of the Governing Council of the ECB.

The euro, which hit a new low in eight months against the dollar and a 10-year low against the yen, is back above $ 1.35 in favor of speculation the ECB and a Ifo business climate in Germany better than expected although declining.

The anticipation of a share of the ECB also feeds a rebound in oil prices.Brent, who had fallen below 102 dollars, is trading around 104.80 dollars a barrel and U.S. crude, which had been reduced to just above 77 dollars, rose above $ 80 a barrel .

The Ifo economist Klaus Abberger Institute said he expected a return of the refinancing rate of the ECB to 1% – against 1.5% now – while stressing that it is difficult to anticipate when the decline could intervene.

This perspective has somewhat overshadowed concerns about the debt crisis in the euro area and the difficulties of European leaders at the curb.

On equity markets, the Paris Bourse takes about 3%, as the Frankfurt Stock Exchange, supported by the values ​​of the insurance and banking, respectively, whose indices resumed about 6% and 4.7% .

The U.S. Treasuries and German Bunds were down in response to buoyant equity markets, but caution is still required and the predominant feeling is that this decline will be only short-term bond markets.

The index futures suggested Wall Street now open sharply higher as they gave a sharp decline in market early in the day.

Eurobond BELIEVED "inevitable"

Asian stock markets were down sharply over yet, as investors once again stung by the fact that the EU leaders' discussions, especially concerning the strengthening of EFSF, have resulted in anything concrete.

Europe has once again been called to beef up Sunday its response to the debt crisis that afflicts him, asking the International Monetary Fund including more action from the European Central Bank.According to the IMF, the ECB is indeed the only player strong enough to "scare" the financial markets.

"As long as political leaders have not developed a long-term solution to address the debt crisis, the short-term outlook for copper and equity markets will remain negative," said Ong Yiling analyst Phillip Futures.

Klaas Knot, Member of the Board of Governors of the European Central Bank (ECB) on Monday called for the creation of an independent budgetary authority to impose sanctions on countries in the euro area with a high deficit.

He also finds "inevitable" the introduction of euro bonds common to the euro area.

PSA Peugeot Citroën could reduce up to 10% of its workforce in France by eliminating temporary positions against the expected slowdown of the European car market, write Friday Les Echos and La Tribune, citing union sources after a meeting between Group management and its unions.

Last week, at the motor show in Frankfurt, chief executive of the manufacturer, Philippe Varin, announced an acceleration of cost reductions to cope with the uncertain economic environment in Europe and increased competition in the segment of B C3 cars.

He then mentioned an adjustment from temporary workers and subcontractors.According to the Tribune of Friday, nearly 10,000 temporary positions, or nearly 10% of the group in France, would ultimately threatened.

Asked about the figure, a PSA spokesman said it was "far too early to tell," noting that the working groups set up by Philippe Varin would make their work in October.

PSA employed in late June in the automotive industry 81,240 people, with an additional 10% of temporary workers.

"The willingness to reduce the volume of temporary workers is not good news for employment, particularly among youth," said the CFDT Metallurgy in a statement."This policy will have a direct impact on working conditions, especially for those most vulnerable."

Eric Besson, Minister of Industry, said that one should not rush to draw conclusions on possible job cuts coming at PSA.

"Do not cry wolf when there is no wolf," he said on Canal +.

"Let them wonder about the consequences of the crisis on their future and take steps to remain competitive, surprising and shocking," he added.

500 PERMANENT PENDING

Faced with the rebound in demand after the crisis of 2008-2009 and the success of several new models of the group, such as the Peugeot 3008 and Citroën DS line, PSA has increased its staff of French 1.600 people between December 2010 and June. But faced with economic uncertainty reappeared this summer, the group has suspended its recruitment plan, except strategic functions.

"In terms of staff, we have a temporary drive that represents 10% of the workforce in France, plus subcontractors in large numbers, there were elements of flexibility, plus the mobility agreement, So we are in a situation that is not comparable to 2008, "said Philippe Varin during a press conference in Frankfurt.

In October 2010, PSA has identified 980 jobs to disappear, of which 700 have already been subject to a mobility agreement.For others, the process of management jobs and skills (GPEC) signed in April 2010 and expiring on 30th of this month has been extended until the end of the year Thursday at the CEC.

On this occasion, the unions again sought assurances on the future site of Aulnay-sous-Bois (Seine-Saint-Denis), redundant 300 people since the decision of the night shift in October 2010.But PSA still refuses to comment on the post-C3, saying only that the plant will produce even this model in 2014 and the post is "define".

Regarding the site of spare parts of Melun-Sénart (Seine-et-Marne), which is scheduled to close since the group decided to Vesoul (Haute-Saône) the central store, 180 people are still give their response to the proposals of mobility that has made their PSA.

Total announced Wednesday the acquisition of a 40% interest in five licenses offshore Lamu Basin, Kenya, to develop its presence in exploration and production in the countries of East Africa.

The transaction is subject to approval by the Kenyan authorities, the oil group said in a statement.

The field of operation, located off the Lamu archipelago, covers an area of ​​more than 30,500 square kilometers in water depths between 100 and 3,000 meters.

Total has recently engaged in the exploration and development of reserves of Lake Albert, Uganda, and was selected to develop exploration activities in Tanzania.

Corporate loans remained strong in July in France, rising 4.7% after rising 4.9% in June, according to figures released Friday by the Bank of France.

These are loans to SMEs that grew the most (5.9% and 8.3% for SMEs in a group), as real estate (+8.0%).

Loans to large companies have found a growth of about 2% (against 1.3% yoy in June) and those granted to holding companies and administrations have slowed (+0.5%).

The funds mobilized slowed to 3.8% from 7.6% in late June, a decline linked to the sharp decline in the volume of mobilized a company that completed an acquisition, said the Bank of France.

In contrast, the funds made available have accelerated 5.0% after 4.1% in late June