Business & Financial News

The Belgian economy has resumed growth in the first quarter and was not in recession in the second half of 2011 contrary to what was originally advertised, showed particular are released Wednesday.

The Gross Domestic Product (GDP) grew 0.3% over the first three months of the year compared to last quarter. In annual terms, sales rose 0.5%, announced the Belgian central bank.

In the fourth quarter of 2011, the Belgian economy shrank by 0.1%.

However, the central bank has revised its figures for the third quarter GDP, from -0.1% initially announced, to no growth (0.0%).

This means that Belgium did not ultimately experienced a recession, defined as "technical" recession establishes that at least two consecutive quarters of GDP contraction.

In 2011, Belgium recorded an annual growth of 2%, against an initial estimate of 1.9%.

GDP figures for the euro area for the first quarter will be published May 15, along with those of Germany, France, Italy and the Netherlands. 

In the fourth quarter of 2011, the GDP of the eurozone declined by 0.3%.

Saffron flames on the stock market Thursday after announcing strong growth in quarterly revenue, supported by its commercial engine business, and reaffirmed its 2012 objectives and confidence for years to come in light of trends in the market.

The supplier for the aerospace, defense and security sees its title clinch 7.40% to 28.65 euros by 9:55, the fastest increase in the CAC 40.

Safran, whose capitalization reached 12 billion, returned 24% since the beginning of the year.

The group confirmed target for 2012 growth of around 10% of its turnover and an increase of about 20% of its EBIT, free cash flow which should represent about a third. 

The Thomson Reuters consensus I / B / E / S reported for 2012 a turnover of 13.111 billion euros, representing growth of 11.7%.

In the first quarter, the group achieved a turnover of better than expected 3.108 million up 15.9% in raw data, representing organic growth of 7.3%.

It takes advantage of the 15.1% of its business services to commercial engines in U.S. dollars, thanks to the CFM56 product as part of CFM, its joint venture with General Electric to parity.

Saffron continues to expect growth in commercial engine business to nearly 10%, stressing "the fluctuating behavior of airlines inherent in economic conditions deteriorated ". 

MEDIUM-TERM OUTLOOK ENCOURAGING

Group CEO Jean-Paul Herteman said in a conference call to count on an increase in passenger and cargo traffic and the need for newly aging fleets of fuel-efficient in a context of price e rose oil.

Leap engine, successor to the CFM-56, was selected for the A320neo and 737MaX, remotorisées versions of single-aisle Airbus and Boeing, and for the Chinese Comac C919.

Safran reported 378 deliveries of new CFM56 engines in the first quarter – 56 more than the first quarter of 2011. Orders and purchase intentions and the CFM56 Leap totaling 695 units to 19 April, with an order book remained at about seven years of production.

On this basis, Jean-Paul Herteman spread the risk of occurrence of a bubble, a concern emerged after the record garnered orders from Airbus and Boeing in 2011, especially from companies Asian.

"The term bubble is certainly excessive," he noted, recalling that the shifts were still possible orders in the aerospace sector.

"(But) it does not involve sales growth and activity of the profession in the coming years unless major economic cataclysm," he added. 

He thus echoes the comments of Olivier Zarrouati, CEO of Zodiac Aerospace, a company specialized in equipment for aircraft cabins, who did not believe either to emergence of a bubble.

In terms of acquisitions, Jean-Paul Herteman declined to comment on the new interest in Safran for Italian Avio, controlled by private equity funds Cinven alongside Finmeccanica, which owns 14% stake.

John Paul was reaffirmed in February Herteman identify complementarities with Avio in the fields of space and aeronautics. 

The Italian public fund Fondo Italiano Strategico last week showed his interest for a stake in Avio, including an IPO was considered.

Jean-Paul Herteman also said he had signed the April 20 agreement establishing a joint venture with Thales for commercial and technical optronics, combining optical and electronic technology that facilitates including night vision for soldiers.

He added that the proposed JV parity announced just before Christmas was being investigated by the authorities of the staff.

Areva announced Friday an agreement with EDF to provide the public with electrician nuclear fuel assemblies and related services for the years 2013 and 2014.

Financial details of the agreement were not specified.

The fuel assemblies, which confine radioactive material in sealed ducts, are the Centrally? Heart of a nuclear reactor, where fission takes place.

Areva and EDF also agreed to negotiate a framework agreement in the medium and long term on the fabrication of fuel elements.

Wall Street opened sharply lower Wednesday, still within the scope of the minutes of the last meeting of the Monetary Policy Committee of the U.S. Federal Reserve seems to suggest that that new measures to support the economy are no longer topical.

In early trade, the Dow Jones yielded 0.91% (or 120.49 points) to 13,079.06 points. The Standard & Poor's, wider, lost 0.86% (12.10 points) to 1,401.28 points while the Nasdaq composite fell back to 0.89% (27.82 points) to 3085, 75.

This decline, following a decrease of about 0.5% yesterday, comes despite better than expected figures for employment in the private sector. According to ADP monthly survey, the private sector has indeed created 209,000 jobs in March, against 200,000 expected.

But what continues to attract the attention of investors is that only two members of the Monetary Policy Committee of the Fed felt that other measures could be necessary if the Economic activity weakened or if inflation remained at a low level for an extended period.

Support measures implemented by the U.S. central bank was the main catalyst for a jump of 30% recorded by the S & P 500 since October, although improving conditions in the United States, as reflected by the indicators, also played. 

"The minutes of the Fed questioned the certainties of those who thought they could relax without end," said Sal Arnuk, co-head of investments at Themis Trading.

For its part, the European Central Bank has unsurprisingly left rates unchanged at a record low, Mario Draghi, chairman of the ECB, saying it was pre premature to start talking about the withdrawal of the measures to end the crisis.

The title General Electric, Heavyweight Dow Jones down 1.3% to 19.70 dollars after Moody's downgraded the industrial conglomerate from Aa2 to Aa3. 

The action Sandisk falling more than 9% after the specialist NAND chips has reduced its forecast for sales in the first quarter, citing lower demand than expected and conditions unfavorable pricing.

Wall Street finished slightly higher Friday, supported by buoyant energy stocks in the face of surging oil prices, but the gains of the day do not allow the S & P 500 finished the week in the green.

This index, which is the benchmark for fund managers, posted a weekly decline of 0.5%, thus interrupting a series of five consecutive weeks of growth. However, since the beginning of the year, he won about 11%. Compared to a low of October, its progress is more than 25%.

The Dow Jones industrials gained 30 0.27% or 34.59 points, to 13,080.73. The S & P-500, wider, took 4.33 points, or 0.31%, to 1397.11. The Nasdaq Composite Index was up 4.60 point turn (0.15%) to 3,067.92.

For the week, the Dow has sold 1.1% while the Nasdaq posted a gain of 0.4%.

Despite the magnitude of the upward cycle bringing Wall Street for several months, most market participants do not believe the decline this week is the prelude to a more pronounced downturn.

They believe instead that the U.S. stock market should benefit next week cleanings portfolio at quarter end, which are usually fund managers trade shares with the sub- performed against those that have outperformed the market.

"Generally, people are well disposed towards the shares. They are ready to enter the market whenever there is a slight decline, "said Michael Matousek, a broker at Global Investors

.. Rising ……. daily was the fact the oil compartment, with the sector index gained 0.96%

…. ….. This is mainly due to the 1.5% jump in oil prices after the information saying that Iranian oil exports were down in March, the tightening of Western sanctions to against Tehran have led some customers to stop or reduce their purchases of Iranian crude

. values ​​related materials first turn have been supported by the good results of the largest copper producer Codelco. The sector index has been 0.98%.

The new home sales fell 1.6% in February to return to 313,000 on an annualized basis, said the Commerce Department, which has downgraded statistics January, to 318,000 against 321,000 originally announced. Economists polled by Reuters had expected 325,000 sales.

This indicator has sealed property values, the PHLX sector index yielded 0.57%. The action of KB Home fell 8.45% to 10.29 dollars after the number five in the construction of individual houses in the United States has reported a widening of its losses the first quarter.

The title Monster Worldwide has been 7.69% to 10.22 dollars after the agency offers online job, which has a market capitalization of approximately one billion dollars, has says ready to sell all or part of its capital.

Nike reported Thursday a profit above expectations for the third quarter of fiscal offset and an increase in its future orders.

But the title of the sporting goods company has closed down 3.22% to 107.42 dollars.

The U.S. economy created 227,000 jobs in February. The unemployment rate remained at its lowest level in three years, to 8.3%.

The U.S. in February saw another month of massive hiring, confirming the scenario of a widespread economic recovery. The government says the country has indeed created 227,000 more jobs than it removed in February, which is higher than the net balance of 206,000 that gave the median forecast of analysts. Job creation are well above 200,000 for the third consecutive month. The Department has revised upward its estimate of 17% of new jobs in January, to 284,000, and the net hiring in February and is down 20% over the month.

The hires were not enough to lower unemployment, which remained at 8.3%, its lowest level for three years, according to official figures released Friday in Washington. In theory, the strength of job creation should lead to lower unemployment. This has not occurred because the labor force increased as much (0.3% compared to January) that the number of employed persons, according to government figures. The labor force declined in November and December, to rise for the second straight month in February could be a sign of improving labor market and show that the unemployed until then recover discouraged to seek employment. Department figures do not enable to determine at first glance from the increased labor force in February due to the influx of young people on the labor market and those related to the return of unemployed among its members.  

Department figures show that in February, employment increased in all sectors except retail trade, construction and public service. In the latter, job losses, which are the norm for over a year, have slowed considerably since there were only 6,000 per month from December to February, against over 20,000 of September to November. The employment report further states that the average hourly wage increased by 0.1% from January, to 23.31 dollars. On a year, says the Ministry, the increase in hourly wages was 1.9% which remains below its last measure of inflation (2.9% yoy in January).

General Motors announced Monday it will pay 320 million euros to take 7% of French carmaker PSA Peugeot Citroen.

The manufacturer also says that the partnership plans to build at least four common models by 2016.

In a regulatory document sent to the Securities and Exchange Commission, Constable of the American Stock Exchange, General Motors said that the alliance is expected to last 10 years and will be renewed ; unless either party has an objection to this extension. 

Peugeot unveiled last week its strategic alliance with General Motors through which it hopes to save on purchase costs and development , with an entry of U.S. giant in its capital up to 7%.

The alliance will go off if a competitor of GM captured 10% or more of Peugeot, directly or indirectly, the U.S. group says in a statement.

Meanwhile, the partnership may be terminated if the share held by the Peugeot family falls below 15% and a competitor amounts to 5% or more in the French manufacturer.

A clause further provides for an end to the partnership if another automaker acquires 3% of PSA following an agreement with PSA Peugeot or with family.

The construction of the Flamanville EPR will not be delayed despite the defects found on parts used to fix a bridge maintenance of the reactor, EDF said Friday.

"This part is stopped but the rest of the site continues," said a spokesman for the French electricity.

EDF said that additional checks are being conducted on these metal pieces, called "console", to assess the nature and their defects back into compliance.

Originally scheduled for 2012, the commissioning of the 1,650 megawatt reactor, has been delayed twice. It is now scheduled for 2016.

"The activities of the EPR site continue normally and the schedule calls for production of the first kilowatt hours in 2016," EDF said in a note.

EDF, the manufacturer of this third generation reactor designed by Areva, estimated at 6 billion euros the total project cost.

In Finland, where the first EPR is being built at Olkiluoto site accuses five years overdue and should be completed in 2014.

The International Monetary Fund is considering a loan of 13 billion euros to help new international bailout for Greece, according to the Wall Street Journal. IMF Executive Director Christine Lagarde during a press conference in Washington on 6 July 2011.

The International Monetary Fund plans to contribute a loan of 13 billion euros in the new international bailout for Greece, said Friday the Wall Street Journal on its website. "The size of the IMF's contribution has not yet been decided" but the institution currently looking for the money, the newspaper said, citing people familiar with the matter in an article written from Brussels.

The IMF granted in May 2010 a loan of 30 billion euros in Athens, as part of an international plan of 110 billion. It has not been enough to revive the Greek economy, which sank in a severe recession, exploding public debt. Finance ministers from the euro zone must meet in Brussels on Monday to consider whether the conditions exist to implement a second level of support in Athens, including a public component of EUR 130 billion and partial clearing of debt held by private creditors to the tune of 100 billion.

Greek Prime Minister Lucas Papademos, counterparts Angela Merkel and Italian Mario Monti, and French President Nicolas Sarkozy on Friday expressed their confidence in the possibility of reaching an agreement when, after several postponements. February 9, an IMF spokesman, Gerry Rice, stated that before you can obtain a new loan, he was "very likely" that Greece has to undertake "prior actions" to show its commitment to measures required of it to improve the functioning of its economy.

U.S. stocks opened lower Friday as investors took some profits in the absence of final agreement on the issue of Greek debt.

In early trade, the Dow Jones drops 0.8% (107 points) to 12,780.04 points. The Standard & Poor's, larger yields 0.9% (12.50 points) to 1340 points while the Nasdaq composite was down nearly 1% (28.71 points) to 2,898 points .

Greek workers began a general strike of 48 hours to protest the austerity demanded by the creditors of Athens to bail out the country verge of bankruptcy.

The three-party coalition government endorsed on Thursday a new austerity plan, but called the Eurogroup in the evening additional guarantees on the implementation of these measures.

The market now expects Confidence Index Thomson Reuters / University of Michigan. It is expected a slight drop to 74.5 in preliminary data against 75 in January.

On the values ​​front, Yahoo gained 0.3%. Chinese Alibaba plans to withdraw from the Stock Exchange of Hong Kong subsidiary Alibaba.com, as part of a complex agreement that would bring its shareholder Yahoo's cash and a working interest in one entity s group of Chinese commerce.