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.

European stock markets have all but closed down Friday, pushing the market to allow Germany to the European Central Bank to guarantee the debt of fragile countries in the euro area. But Berlin and the ECB still refuse it. A passerby looks at the course of the Tokyo Stock Exchange in March 2011.

Most European stock markets ended the week in the red, worried Berlin's refusal to use the European Central Bank (ECB) to reduce fears about fragile states. Paris has lost 0.4%, from under 3000 points, Frankfurt (-0.8%) and London (-1.11%) also won. Madrid and Milan have instead ended in the green (0.5% and 0.2% respectively). In the line of sight of the markets, the refusal to Berlin to call for the ECB to contain the crisis.Political pressures are becoming more numerous and demanding that the central bank relaxed its position to let him play the role of lender of last resort against Europe's most indebted. And put an end to soaring interest rates on debt. The spread between Germany and Spain has exceeded 500 basis points Friday. "As the savior of Italy but also in other countries precarious, there is that the ECB," said analyst Robert Halver Germany, Baader Bank, adding that "it is the only one who can fight against nuclear explosion in the euro area. "

Germany and the ECB opposed to an intervention

Germany, the only country ruled by the strong market is the focus of all eyes. Chancellor Angela Merkel refuses steadfastly calls to relax the policy of the ECB.

Search Valquant expects to triple the share price between 2013 and 2018, the company specializes in financial advisory finding that the attractive valuations and the prospect of a new cycle of rising secular justification to invest in this asset class .

Valquant does not exclude a relapse "serious and imminent threat" of a market still under reconstruction, stock prices remain extremely volatile and the risk remains very important in an economy close to recession.

The analyst firm has also expanded its area of ​​neutrality on the actions between 3100 and 3700 points on the CAC 40 index.

"The shares are cheap or very cheap (…Germany is not as virtuous people think (…) The problem is that we are dealing with a debt that does not generate growth, "he said.

"PERFORMANCE DEPOSIT"

Usually difficult, the month of October was marked this year by the rebound in stock exchanges, the pan-European Stoxx 600 index containing 7.65% after falling by about 18% in the first nine months of 2011.

Cyclical stocks have supported this rebound thanks to a renewed optimism, automotive bouncing from 15.75% last month after a decline of 27.21% between January and September, and the building containing 11 , 64% (-25.88% over the first nine months).

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.

The Tokyo Stock Exchange ended up sharply Thursday, forgetting his concerns over the high yen, in the hope that the Europe Agreement on the night between Wednesday and Thursday will stem the debt crisis.

The Nikkei gained 2.04% or 178.07 points to 8,926.54 and the Topix has taken 2.18% (16.31 points) to 762.79.

The Bank of Japan is also stepped in to buy more assets in the markets, which helped improve investor sentiment.

"There are many unknowns about Europe, and it is now more likely that something disappointing for investors to happen, instead of a positive surprise," said Tomomi Yamashita, fund manager at Shinkin Asset Management .

About values, Olympus has seen a strong rebound after plummeting last few days, taking 23.29% to 1,355 yen.

Olympus gave a press conference defending its mergers and acquisitions Thursday following the resignation of its chairman.

Several major automakers have values ​​slightly outperformed the market: Toyota made 2.22% to 2,584 yen and Honda has awarded 2.75% to 2,393 yen.

In electronics, Sony jumped 5.43% to 1,650 yen, while qu'Elpida fell by 0.6% to 496 yen.

NEC (2.31% at 177 yen) and Softbank (0.91% to 2450 yen) released their quarterly earnings at closing.

The rating agency Standard & Poor's downgraded the sovereign rating Thursday night of long-term credit of Spain by one notch to "AA" to "AA-" with negative implications.

S & P puts forward such weak growth and high debt of the private sector.

In response, the euro has a downward trend in Asian markets opened Friday, but always seems on track to achieve its best performance since the week of January.

"Despite signs of strength in economic performance during the year 2011, we observed an increased risk to the outlook for growth in Spain," said S & P, citing high unemployment, difficult budgetary conditions, the high indebtedness of the private sector and the likely economic slowdown in major trading partners of Spain.

The agency said in a statement to expect that the quality of financial sector assets continue to depreciate.

Standard & Poor's also believes that the reform of the labor market is "incomplete" and therefore constitutes an obstacle to the resumption of economic activity.

"We could lower the rating again if, according to our scenario of decline, the economy is contracting in 2012, if the fiscal situation of Spain deviates significantly from the objectives set by the government or if reforms Additional labor market and other reforms to support growth are delayed, "warns the rating agency.

European shares, which declined during the first hour and a half of transactions, have turned upward Wednesday mid-morning, with the cyclical, in the hope that European leaders would find means to agree on measures to facing the euro debt crisis, despite the "no" of the Slovak Parliament to strengthen the EFSF.

In Paris, around 9:10 GMT, the CAC 40 gained 0.77% to 3177.81 points, after losing more than 1% in early trade. The index has crossed an area of ​​strength identified by analysts graphics around 3130 points.The pan-European Euro Stoxx 50 index is 0.75% and 0.44% Eurofirst 300.

The leaders of the member parties of the Slovak government were to meet Wednesday resigned those of the main opposition party, the Smer to negotiate support for the project to strengthen the European Financial Stability Fund (EFSF), announced a spokesman of the party the majority.

Greece can avoid bankruptcy if itself and the other European countries stick to their agreement to reduce debt, said the President of the European Central Bank (ECB) Jean-Claude Trichet.

The euro hit a high of three weeks vis-à-vis the dollar, the trend had also returned in the hope of a solution to the crisis.Around 11:00, the European currency is trading at 1.3663 / 1.3647 dollars against 66 the previous day in the afternoon.

Cyclical stocks are leading the gains, including mining, driven by the rise in metal prices. The indices of the car gains 2.4%, largest increase sectoral and commodity index 0.7%, while the two indices showed the largest declines in early trading. The bank index is stable.

Greece is expected to remain mired in recession next year, complicating his efforts budget as the country is still waiting for the payment of the next tranche of aid that would allow it to avoid bankruptcy.

The Greek economy will contract by 2.5% next year, following a decline in gross domestic product (GDP) of 5.5% expected this year, according to the 2012 budget proposal sent to the country's parliament Monday.

These forecasts are darker than those used to calculate the final in Athens bailout 109 billion euros, which was banking on a return to a growth of 0.6% next year.

The Greek government admitted Sunday he would miss this year's deficit targets that were assigned by its international donors.Athens anticipates a deficit of 8.5% of GDP in 2011, while the EU and the IMF at the planned 7.6%.

The Socialist government of George Papandreou has already announced new austerity measures to try to reduce the budget deficit next year to 6.8% of GDP in 2012 to an original target of 6.5% .

BANKS COULD PAY MORE

The fiscal slippage of Athens could complicate the ongoing negotiations on the second Greek bailout, analysts said.

"In the political debate in Germany, this will probably be used to request the renegotiation of the entire bailout and greater involvement of private investors," said Holger Schmieding, economist at Berenberg Bank.

If the "troika" of donors in Greece – European Union, International Monetary Fund, European Central Bank – concluded in their report due this month that the financing needs of Greece will be greater than expected due of the recession, banks may be required to contribute more than the discount of 21% in July.

The "troika" continue for the time to peel the accounts of Greece and has not given the green light to the payment of a new tranche of eight billion euros vital to prevent the country from be insolvent soon this month, sources said Monday.

Vice Minister of Finance had previously Oikonomou Pantelis said the discussions were over, but for the most part, the sources that have direct knowledge of the case, they are far from it.

Finance ministers of the euro area (Eurogroup) met in Luxembourg on Monday and they had to do even more pressure on the Greek government to implement more forcefully the reforms planned by the international bailouts.

The second plan, set in July, includes in particular the private sector is participating in a plan to exchange debt at a discount.Athens wants at least 90% of the creditors participating in the project goes forward.

The skepticism seems in order in the markets about the ability of Europeans to stem the crisis in Greece, especially after the latest financial reports of the country.

The country's debt should represent 172.7% of GDP next year against an estimate of 161.8% for 2011, according to the draft budget of Athens. The unemployment rate has meanwhile increased to 15.2% this year and to 16.4% in 2012.

Michael Fuchs, vice president of the coalition CDU / CSU to power in Germany, the case is heard: Greece is indeed bankrupt. "There is probably no alternative for us to accept a deletion of at least 50% of its debt," said he.

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.

Wall Street closed down Monday, the fear of failure to Greece and the doubts about Obama's fiscal agenda led investors to end a rally of a week in New York.

The indices, however, reduced their losses late in the session after a senior Greek officials had to Finance said that Greece was close to an agreement with the "troika" for the payment of the next tranche of aid.

The Dow Jones lost 108.08 points (0.94%) to 11,401.01. The S & P-500 yielded 11.92 points (0.98%) to 1204.09. The Nasdaq Composite Index lost 9.48 points (0.36%) to 2612.83.

The values ​​of energy and finance led the movement.The S & P Energy lost 1.46% in the wake of oil, and that of the Financial 2.74%, following a further sharp fall in European banking.

Investors are disappointed with the overall conclusions of the Ecofin meeting / Eurogroup held at the end of last week in Poland.

"We were not only overbought but we also had 'hoped-on", says Karl Mills (Jurik, Mills & Keifer Investment Partners)."It was hoped that the visit (the U.S. Treasury Secretary Timothy) Geithner in Europe would provide greater clarity but nothing positive has come out and you return to the problems of Europe".

Internally, President Barack Obama proposed Monday a plan to reduce the budget deficit of 3,000 billion over the next ten years, half would come from new tax levied on the richest Americans and corporations.

The Republicans criticize the plan, which raises many doubts about its adoption and implementation.

Values, UBS shares listed on Wall Street has lost 3.11%.The Swiss bank opened an internal investigation into the failure of its risk control system and its leaders are under pressure after a loss of $ 2.3 billion (1.67 billion euros) due to unauthorized transactions of a dishonest trader.

However, Tyco International gained 2.40% after announcing its division into three independent companies listed. Investors welcome this news because each company can take power in their competition to apply for.