Business & Financial News

Wall Street closed higher Friday, rebounding after a week of releases, taking advantage of stabilizing oil prices.

But trading volume well below the average casts doubt on the ability of the Exchange which shows an upturn, however, that the Exchange has a strong resilience, say analysts.

The S & P 500 had already finished well above its session low of the day before and analysts were anticipating anyway, and has long been a correction after a rally of six months.

"The market has responded quite well to these disorders (Libya)," said Jim McDonald (Northern Trust).

The Dow Jones gained 61.95 points (0.51%) to 12,130.45. The S & P-500 is 13.78 points (1.06%) to 1319.88.The Nasdaq Composite gained 43.15 points (1.58%) to 2781.05.

Over the entire week, the Dow lost 2.1%, the S & P 1.7% and Nasdaq 1.9%.

Stock markets have suffered this week fears of a severe disruption of oil supply due to riots or protests are increasing popular in North Africa and the Middle East.

These political events have resulted to burn oil prices, sobering prospect for global economic recovery remains fragile and that has weighed on stock markets throughout the week, before this rebound of any weekend Wall Street.

The VIX volatility of the CBOE, commonly called gauge of fear on Wall Street, fell from the shock at the stock market rebound and sells 10.18% to 19.15, ending at least 20 after three days of gains rich.

On the front indicators, the growth of the U.S. economy was estimated initially slower in the fourth quarter, mainly because of declining state investment and lower growth than expected consumer spending show statistics released Friday.

The gross domestic product growth was revised down to an annualized pace of 2.8%, said the U.S. Department of Commerce for its second estimate, against 3.2% originally announced.

Economists polled by Reuters had forecast an average upward revision to 3.3%.

Moreover, U.S. consumer sentiment has reached the end of February its lowest level since January 2008, supported by an improved perception of the labor market, according to Thomson Reuters index / University of Michigan released Friday.

The index finally settled at 77.5 for the month of February, against 75.1 in the first estimate and 74.2 in January. Economists on average had expected an index to 75.3.

Finally, on the side of values, Boeing, which eventually won the contract for "tankers" from the U.S. Air Force, rose 2.18% to 72.3 million.

Toyota said Thursday the recall of some 2.2 million vehicles in the U.S. because of the risk of seeing the car floor mats impede the smooth functioning of the accelerator pedal.

The Japanese automaker said the recall was complete that implemented between late 2009 and early 2010, which brought nearly eight million cars worldwide, mostly in North America, and had seriously damaged the image group.

Toyota said that no accidents had been caused by the defect on the cars recalled.

The announcement comes just over two weeks after a U.S. government investigation concluded that the Japanese electronic vehicle was not involved in cases of sudden acceleration that had prompted the automaker to launch a massive recall .

Approximately 761,000 units of the RAV4 crossover assembled between 2006 and 2010 are concerned, as well as 603,000 4Runner crossovers occurred between 2003 and 2009 and 17,000 Lexus LX 570 from 2008 to 2011.

The group also recalled 372,000 RX 330, RX 350 and RX 400h and Highlander and Highlander HV 397000.

Sarkozy has called for swift adoption of economic sanctions by the EU against those responsible for repression in Libya. But economists have doubts about their effectiveness. Nicolas Sarkozy welcomes Colonel Gaddafi at the Elysee December 10, 2007

The European Union closer to sanctions against Colonel Muammar Gaddafi and his regime against the violent repression, enacting the failure of his policy of rapprochement for years conducted with the Libyan leader. After Finland and Germany, France and Luxembourg are venting their spleen on Wednesday to ask to crack down against the Libyan leader and perpetrators of the bloody repression in the country that has claimed hundreds of lives.French President Nicolas Sarkozy ruled in favor of "meaningful sanctions" from the EU, targeted against the bosses of the regime, and welcomed the suspension of economic and financial relations with Tripoli.

What sanctions?

In addition to a freeze on assets and visa bans against Gaddafi clan, Europe has a potential leverage far more important: the decision of its oil imports from that country. Because on 1.69 million barrels of crude oil produced per day, Libya's exports 1.49, or 85% to Europe. The EU should be able to do without imports, the European Commission said, although the Libyan oil represents over 20% of black gold imports from Ireland, Italy and Austria.

Europe has already suspended Tuesday for his first talks on a partnership agreement with Libya, which started in 2008.

An effective solution?

Most observers are skeptical. Generally, the oil embargoes are not really effective. "We saw with that required for years in Iraq: there has been circumvented by smuggling oil and it did not prevent Saddam Hussein to remain long in power", said Mohamed Ali Marouani, professor of Economics at the University of Paris 1.

Anyway, "the rebel tribes are not waiting for the announcements of European threaten them by blocking exports," says Jean Yves Moisseron, a researcher at the IRD. Sheikh Faraj al Zouway. has in effect said Monday that an Arab satellite channel block exports within 24 hours "if the violence did not cease.

Most importantly, "the timing is absurd, Judge Jean Yves Moisseron. The regime is disintegrating. Gaddafi think only of survival.This is no longer at the stage of interest in questions of sanctions. "

In fact, the threat of an oil boycott loses weight while Gaddafi himself Tuesday ordered the sabotage of pipelines. According to Time magazine, quoting a source close to the regime, the message is supposed to "serve as a warning to rebel tribes: it is me or chaos".

Mohamed Ali Marouani, the priority is not to impose sanctions but to end the bloodshed. "But the sanctions will have a lasting impact on the regime, especially since Gaddafi has reservations." And what can scare him, "it is the threat of international justice and also the use of force to prevent it kills its own people," adds Alvaro de Vasconcelos, president of the Institute of study of EU security.

Why then announce sanctions? "This is political communication.There has been much criticized for his silence during Sarlozy riots in Tunisia and Egypt, said Mohamed Ali Marouani. With Libya, it tries to catch up "

The organization of the French nuclear industry is on the agenda of a meeting of the Council of nuclear policy on Monday at 17:00 at the Elysee Palace, confirmed sources close to the matter.

This meeting, including President Nicolas Sarkozy had apparently considered it a time postponement to early March for reasons of agenda should include a strategic partnership between EDF and Areva.

It was prepared by a meeting of industry stakeholders – Areva, EDF, GDF-Suez, Alstom, plus the Atomic Energy Commission – Friday, around the Minister of Industry, Eric Besson.

According to the sources, the question of a possible combination of EDF and the Chinese reactor project Atmea medium power, developed by Areva and Japan's Mitsubishi Heavy Industries, and the mining strategy Areva and EDF, should be part of the subjects.

The business daily Les Echos also cited the organization of the export sector.

"The only thing I can tell you is (this meeting) is on the organization (…) what was called the team of France's nuclear", for his part, said Eric Besson on France 2.

ESTATE OF LAUVERGEON NOT ON THE MENU

"EDF is important, is the largest producer of nuclear electricity in the world. How could he not play a major role in the chain?" he said."But there are other very important players: Alstom, Areva primarily, GDF-Suez, which is a major producer of global power and would be more so in France nuclear power. So all this must be organized. "

However, are excluded from the agenda of the resale price of nuclear electricity by EDF to its competitors and the renewal of management of Areva, said sources familiar with the case.

Rumors evicting Lauvergeon have circulated regularly since more than a year, against a backdrop of recurrent conflict with the boss of EDF, Proglio.

Nicolas Sarkozy is expected to receive in the days and weeks to come a list of potential candidates to succeed him – his term ends in late June.It is not excluded that "Atomic Anne" make itself part of the list.

"What I say tonight the President (at the meeting of Elysium) will be enlightening," said a source familiar with the matter.

According to business daily La Tribune, Senator Gerard Longuet would UMP candidate.

Chaired by the Head of State, the nuclear policy comprises the Prime Minister, the Minister for Energy and those of Foreign Affairs, Economy, Industry, External Trade, Research, Defence and Budget.

It also includes the Chief of Defence Staff, General Secretary of National Defence and the deputy head of the Atomic Energy Commission.

The French Economy Minister Christine Lagarde said Saturday that the G20 had reached an agreement on macroeconomic indicators to evaluate economic policies.

These criteria include debt and public deficits, savings and investment, trade balance and balance of current investments, "she said after a meeting of G20 finance ministers in Paris.

The final communiqué also mentions the inclusion of exchange rate and fiscal and monetary policy, "she added.

Technip announced Thursday a decline in operating margin for 2010 but said its outlook "positive" and adjusted upward its objectives for 2011.

The specialist oil and gas equipment said in a statement that it expected this year on a turnover of about 6500 to 6700 million euros, against 6.082 million in 2010, when he was simply an earlier growth of its business.

Technip is also an operating margin Subsea (subsea infrastructure) above 15% in 2011 against 16.7% in 2010, the margin sector Onshore / Offshore is expected between 6% and 6.5%, against 6.2% in 2010.

Previously, Technip expected a margin "of around 15%" for Subsea and "stable" for Onshore / Offshore.

For one segment of the "Subsea", sales should reach about 2600 to 2700 million euros this year, against 2.732 million in 2010.

"For 2011, prospects appear favorable for our sector. Oil prices and costs of projects are at levels that make them economically viable most of the developments around the world, which enables our customers to focus on increasing their production capacity, "said CEO of Technip, Thierry Pilenko, quoted in the statement.

"However, competition remains high.Even if we do not observe this significant day of inflation overall project costs, increased costs of certain raw materials increases the risk of inflation for our industry and our customers, "he added however.

MORE THAN 400 MILLION INVESTMENT PLANNED

"Finally the new regulatory arrangements in the Gulf of Mexico as the geopolitical situation in North Africa also add an element of uncertainty to the prospects of the industry."

Around 9:10, the track fell by 0.48% to 72.55 euros while the CAC 40 gained 0.07%.Jean-Luc Romain, an analyst at CM-CIC, spoke in a note to a sales forecast Subsea "a little disappointing, leading to a less favorable mix for Technip's operating margin."

The group plans to invest this year more than 400 million euros, an amount he could see the rise "given the opportunities that present themselves."

The group has already identified four projects: the construction of a flexible plant in Brazil, that of a new flexible pipelay vessel dedicated to Asian markets, expanding its production capacity of steel tube umbilicals and a "strategic position" in offshore wind.

In late December, the backlog of Technip amounted to 9.228 million euros, against 8.018 million in late 2009, reaching its highest level since late 2007.

DIVIDEND UP 7.4%

The band recorded in 2010 an operating profit of 620.3 million (-8.3%), an EBITDA of 777.3 million (-13.7%) and a turnover of 6081, 9 million (-5.8%).

Its net profit, weighed down in 2009 by a provision of 245 million to resolve litigation in the United States concerning a case of alleged corruption in Nigeria has reached 417.6 million euros against 170.4 million in 2009.

According to the Thomson Reuters consensus I / B / E / S, analysts on average expected a net profit of 406 million euros, an EBIT of 612 million and EBITDA of 778 million and a number of 6010 million cases.

The operating margin amounted to 10.2% Technip, against 10.5% in 2009.

The group proposes for 2010 a dividend of 1.45 euros, up 7.4%.

31 December, its net cash position amounted to EUR 1.332 million against 1.784 million at end-2009.

The European Commission believes that the benefits Besson, Robien and Borloo discourage taxpayers from investing in French real estate located abroad. " She sent a reasoned opinion to France.

The European Commission on Wednesday urged France to amend tax assistance devices for investment in new housing for rental purposes, deemed "discriminatory" because a French taxpayer can not receive elsewhere in the EU.

The depreciation provisions are "Périssol (for homes purchased before August 1999), amortization" Besson "(homes purchased between 1999 and 2003), amortization" Robien "(from 2003 through 2009) and depreciation Borloo nine "(acquisitions between September 2006 and December 2009), Brussels says.

They allow owners of new homes for rental located in France and to deduct from their income from property depreciation calculated on the purchase price or construction cost, and therefore benefit from a tax reduction.

However, a French taxpayer who invests in rental housing in another EU "can not benefit from accelerated depreciation, and therefore can not benefit from these tax advantages," said the European Commission.

However, the Commission "considers that these provisions are incompatible with the free movement of capital, a fundamental principle of the EU single market" because they "discourage resident taxpayers to invest in real estate located abroad."

Therefore, it has sent France a "reasoned opinion", the second stage of infringement proceedings.Paris has two months to give a satisfactory reply, failing which the Commission may refer the Court of Justice.

The growth of the French economy was twice lower than expected end of 2010, limiting its rebound to 1.5% throughout the year after a historic decline of 2.5% in 2009.

The gross domestic product (GDP) of France rose 0.3% in the fourth quarter, as the three previous months, preliminary figures show the national accounts published Tuesday by INSEE.

Twenty-eight economists polled by Reuters had forecast an average growth of 0.6% over the last three months of the year, a figure that corresponded to the latest forecast from the Bank of France.Estimates ranged from professionals 0.3% and 0.7%.

INSEE had downgraded the end of December the figures of the second and third quarters, 0.6% and 0.3% respectively.

In Germany, where the recovery was significantly higher than in France last year thanks to the engine of exports, GDP growth reached 0.4% from October to December and 3.5% on the year.

The first estimate of GDP in Italy and throughout the euro zone must be published in the morning.

The details of the INSEE statistics highlights including a negative contribution of 0.8 percentage points to growth stocks in the fourth quarter, firms apparently regained destocking interrupted during the previous two quarters.

Household consumption, it has accelerated, rising 0.9% from October to December compared to July-September, as the investment of non-financial companies (+0.6%).

In contrast, public investment spending fell 0.7%.A decline that reflects the end of stimulus spending, but also advance the INSEE, the impact of weather at the end of the year on public works.

BERCY ALWAYS IS 2.0% FOR 2011

Exports rose 0.8% while imports declined significantly (-1.2%), allowing a positive contribution of half a percentage point of foreign trade to growth.

"Consumer spending has been strong, driven largely by car sales, with consumers benefiting from the scrapping," said Joost Beaumont, economist at ABN Amro.

"The contribution of exports has improved markedly, France enjoying herself as the strong growth of world trade, Asia and Germany in particular."

Despite the disappointment of the fourth quarter, the government, which had expected a 1.6% growth in 2010, up a time to discuss "a large 1.6", maintains its forecast of an acceleration of growth at 2 , 0% this year.

Significantly higher than the estimates of economists: the consensus appears to only 1.5% in the latest Reuters survey last month.

"I hope the first quarter of 2011 will be much better, that's what we expected the Bank of France," said Christine Lagarde on France 2 minutes after the publication of figures from INSEE.

The Bank of France announced last week forecast growth of 0.8% in the first quarter, a forecast that relies on a strong revival of confidence of business leaders, exemplified in recent weeks by several investigations.

Despite the disappointment of growth in the fourth quarter, the 2010 deficit should be below 7.7% of GDP from 7.5% in 2009, said Christine Lagarde."And for 2011, it is important to take our deficit forecast to -6.0% because we absolutely must reduce public spending," she said.

And objectives are even more ambitious for 2012: Financial Stability sent last year to the European authorities expected 2.5% growth and a deficit reduced to 4.6% of GDP, implying a strict budget at least equal to that provided this year, despite the elections, generally favorable to "tax giveaways".

Serge Dassault, honorary president of Dassault Aviation, said Sunday that the Rafale fighter produced by his group suffered the level of the euro in international trade.

"We have a problem is being sold in euros, and if it sells in euros, it sells more expensive in dollar," said Serge Dassault on i> Télé.

"It was difficult because we have a huge competition with the British, Americans and especially the price point of view, it is more expensive, it's true," he added.

"So it's very difficult. We have the best airplane in the world, the Rafale, it was a good weapon system and has been discussed.It'll come, "he said.

Hope to see Brazil buy the Rafale, which has so far never been sold internationally, has thinned this week with the disclosure that he Brasilia prefer the F-18 Boeing .

According to sources familiar with the situation in Brazil, Dilma Rousseff the President determines that the American F-18 is the best of three devices in competition, even if it has not finalized its choice.

Swedish Saab Gripen is also in the running to win this contract for 36 aircraft that Luiz Inacio Lula da Silva, Dilma Rousseff predecessor, would not conclude before he left the presidency on January 1.

The spokesman of the French government, Baroin, and Dassault Aviation said Wednesday their confidence in the possibility for Dassault to win the contract.

Baroin assured that reports of a preference Dilma Rousseff for F-18 had been denied by the Brazilian Minister of Defense and advisers of the President of Brazil.

Dassault Aviation, the contract is neither lost nor won. "The bidding is underway and there is no official announcement from the Brazilian government," he said on Europe 1 a spokesman of the group.

According to Serge Dassault, "was all wrong because to sell the Rafale is a political operation."

"There must have political support.We have now thanks to the president, but it was still a political enemy who (are) the United States who (do) we do everything to sell anything anywhere that lower (their) prices, "Has He lamented on i> Télé.

The proposed merger between Deutsche Boerse and NYSE Euronext has revived concerns about further marginalization of the financial center of Paris, the French authorities said Thursday careful to maintain a substantial activity of the new entity in the market Hexagon.

Deutsche Boerse said Wednesday that in advanced talks to buy Euronext, a transaction, the details should be announced next Tuesday, raising fears that the bulk of the activity of pan-European exchange escapes to Paris, increasing its isolation from Frankfurt and New York.

"The operation (…) gives a loss of influence of the Paris," he told Reuters Jean de Castries, chief executive of Equinox Consulting, a consulting firm specializing in management and organization in the financial sector. "What we see is that in the new entity, strategic decisions will be played between Frankfurt and New York."

"The Paris, she will be follower (…) Within the new entity, Paris will be essentially a commercial office to keep in touch with clients and promote the listing of major French companies.Paris will therefore have an extremely limited role. "

Wishing to avoid such a scenario, the French authorities have said they would be particularly attentive to the evolution of the merger proposal, while the new entity, if formed, will have two headquarters, one in New York one in Frankfurt.

THE FRENCH AUTHORITIES ON THEIR GUARD

"I look at it very carefully and with obvious concerns for safety and stability of markets (…) I look at it with attention also to maintain and develop the value on the French territory," responded Christine Lagarde, Minister of Economy.

The Autorité des marchés financiers (AMF) expressed equally attentive to the preservation of regulatory issues and interests instead.

"The AMF will ensure, along with other relevant authorities, that a fair balance is struck between the various financial centers involved in this project.This is not only a challenge but also industrial control, "said a Reuters spokesman Constable of the French financial markets.

Seeking further clarification on the project, Paris Europlace, for its part, says she will ensure the development activities of the Paris in the new device (negotiation, trading, clearing, or management information systems) and the organization of the future governance of the group.

The weakening of the financial center of Paris has also been noted by a union official who called the authorities to seize the issue.

"POLICIES HAVE A ROLE TO PLAY"

"We let the market organize themselves as they wish, so that policies have a role to play.The political authority should regain control as he has repeatedly promised, "observed Joseph Thouvenel, Deputy Secretary General of the CFTC.

To spare the feelings, some concessions were granted in Paris, while according to other sources, the subsidiary of Deutsche Boerse and NYSE Euronext will be responsible for products based in Frankfurt and one that will deal with actions to be localized New York..

Operations on the cash equities and IPOs and securities issues on the primary market (listing) would be addressed at European level from Paris, told Reuters a source familiar with the matter.

The same source said that the French Dominique Cerruti, executive vice president of NYSE-Euronext and Roland Bellegarde, Deputy CEO of the international equity markets and trading, will retain their positions.

The French platform for trading of securities Universal Trading Platform (UTP) was also retained at the expense of the German Xetra system, do you also claim the same source.

These discussions between Deutsche Boerse and NYSE Euronext occur just after the announcement of a proposed acquisition of the Toronto Stock Exchange by that of London, a move that illustrates the willingness of major world stock operators to reduce costs to compete more and stronger of the new electronic platforms, which diverted for their benefit a significant portion of transactions.

Chi-X, the alternative platform for European equity trading facility (MTF), and was hoisted in a little over three years among the traditional major exchanges like the London Stock Exchange and NYSE Euronext.