Business & Financial News

Japanese gross domestic product increased by 1% from January to March compared with the previous quarter, helped by a rebound increase in consumption, for reconstruction after the earthquake of March 11, 2011 and some improvement in exports, according to government statistics released Thursday.

On an annualized basis, GDP was up 4.1%, above economists' expectations (3.5%), against 2.2% for the U.S. over the same pe riod.

First announced in fall of 0.2%, the economy finally stagnated between October and December.

Consumption, which the Japanese economy depends to 60%, increased 1.1%, while economists expected a 0.8% increase, thanks to subsidies the purchase of fuel efficient cars. 

Consumption contributed 0.7 percentage points to quarterly growth and public investment to 0.3 points.

Economists expect a Japanese GDP growth of around 2% during the fiscal year that began in April, with a gradual recovery of the U.S. economy and the work reconstruction in the northeast of the archipelago devastated by the earthquake and tsunami of March 11, 2011.

"Consumer spending and public investment have brought the economy, with demand for automobiles supported by government incentives and investment supported by supplementary budgets that followed the earthquake , "said Yoshimasa Maruyama, chief economist at Itochu Economic Research Institute. 

"So if they are government policies that are behind this quarterly growth, can not have say it reflects a strong economy."

The yen, which remains a strong currency poses risks in the medium and long-term competitiveness of Japanese products and hinders exports.

Europe, one of the major markets of Japan, parallel to continue mired in crisis and the European consumer behavior does not bode well for Japanese exports.

"I monitor the situation in Europe carefully, because it interferes with the movements of foreign exchange market. We will take strong decisions against excessive movements on the foreign exchange market, "said Japanese Economy Minister Motohisa Furukawa

…. ….. Economists expect growth of 1.0% in the first quarter is a peak in 2012. Their median forecast of growth shows an increase of 0 , 5% early in the second and third quarters and 0.4% during the last three months of the year

.

Samsung Electronics posted record quarterly earnings of $ 5.2 billion (3.9 billion) by selling over 20,000 per hour Galaxy smartphones in the first quarter, beating Apple and iPhone.

The South Korean group was pleased with Nokia as the world's largest maker of mobile phones, after 14 years of rule by the Finnish group, today distanced the smartphone market .

Samsung has sold around 93.5 million mobile phones in the quarter January to March, more than a quarter of those sold worldwide, including 44.5 million smartphones, according Strategy Analytics. It controls and 30.6% of the global market for smartphones, against 24.1% for Apple, which sold 35.1 million iPhones in the first quarter.

"Samsung and crush their main rivals Apple and the smartphone market is likely to become a two-horse race," said Neil Mawston to Strategy Analytics.

Samsung will launch next week in London the third generation of its flagship model Galaxy S. The group hopes to see its sales boosted by the Summer Olympics, he is one of the first sponsors.

Apple said this week that its iPhone sales 4S had led to quintuple its quarterly revenue in China. But on this first global market of mobile telephony, the group remains at the apple behind by Samsung, which is already allied with the three main TV operators coms in the country.

The operating profit of Samsung in the first quarter nearly doubled to 5,850 billion won (3.9 billion euros), after reaching 5,300 billion won in the previous quarter .

After the announcement of these results, the action Samsung surged 2.9% to a record high of 1.38 million won (1,200 dollars).

The group also competes with Sony and LG Electronics on the TV market, Toshiba and Hynix in the memories SK and LG Display the segment of flat screens. 

Its earnings in semiconductors has been more than halved, to 760 billion won, due to falling prices of memory cards, but its activity in the tee ; léviseurs and appliances has generated 530 billion won against 80 billion a year earlier.

Samsung and LG Electronics compatriot among the few TV manufacturers in the world to make profits and gain market share in favor of including the use of 3D and OLED displays.

Sony, Panasonic and Sharp expect their side to show a combined loss of $ 21 billion during the fiscal year that just ended.

Labor costs in Germany rose at the slowest rate of any European Union over the past decade, said Tuesday the Federal Office of Statistics , emphasizing the positive effect of wage moderation.

The cost of one hour of work in the private sector rose 19.4% between 2001 and 2011 in Germany, which is half that in France, where the cost jumped 39.2 % over the same period, well above the European average of 36.1%.

The moderate wage growth, which started from a high base, helped Germany to remain among the top exporting economies in the world and to remain competitive . 

"The moderate wage growth in recent years has made possible a positive development (…). Many new jobs were created and existing jobs are been protected, supporting consumption, "said the director of the Chamber of Commerce, Martin Wansleben.

In 2011, German employers paid an average of 30.10 euros for each full hour of work in the private sector, well above the average for the EU to 22.80 euros.

Belgium shows labor costs the highest in the region at 39.30 euros per hour while Bulgaria has the lowest, to 3.50 euros.

Executive Director International Monetary Fund (IMF) Christine Lagarde said Wednesday that member countries pledged to provide a total of at least $ 316 billion of priesthood ts to the fund to hold the debt crisis in the euro area.

"We have promises for more than $ 316 billion and I have more in the bag," said Lagarde.

The IMF said in January will increase its financial resources of $ 600 billion to guard against any spillover of the crisis of European debt. But obtaining firm commitments at meetings of the IMF, World Bank and G20 at the end of this week in Washington, might be difficult.

The United States including that they would not participate in these efforts. Canada has estimated that Europe had sufficient funds. Other countries, including China, Brazil and Russia expressed readiness to contribute to the financial effort but if they get in return more of the voting rights in IMF.

Christine Lagarde said last week that it was possible that the IMF has required fewer resources than he thought a few months ago, the economic and financial risks are being mitigated ; s. These resources could be increased from 400 to 500 billion dollars, an amount less than $ 600 billion initially cited, told Reuters several G20 leaders.

The gas leak on a Total deposits in the North Sea will be expensive to French oil group, but the situation seems out of proportion to the oil spill in 2010 in the Gulf of Mexico after the explosion of a BP platform.

Analysts polled by Reuters, the cost for Total could be limited to $ 150 million (113 million) if the leak was quickly clogged, or otherwise be at least $ 10 billion if the platform of the Elgin-Franklin field eventually explode.

Total has not ruled on Tuesday that the repair takes several weeks or up to six months, and keen Wednesday the exact cause of the leak. 

The prospect of a distant deadline for resolving the industrial crisis, the worst that Total has seen since the sinking of the Erika in 1999 and the explosion at the AZF factory in 2001, brutally brought down the stock market as Tuesday. The stock has lost 5.96%, leading to the Group's market capitalization plunge of about six billion euros.

Total lost the title still nearly 1% to 38.23 euros on Wednesday afternoon.

"Although it is far too early to make a reliable assessment of the impact of the leak (…) for Total, one can estimate a minimum cost of 150 to 200 million dollars in the best case (limited to two weeks off) or even more if the current situation was to last several months, "CM-CIC Securities.

While the field of Elgin-Franklin alone accounted for 2.5% of total production in 2011, the intermediary also assesses the shortfall for the group between 3 , 6 and 5 million per day shutdown of operations. 

LESS STRICT LAWS IN THE UK

Drilling a relief well could cost him only $ 44 million, assesses his side Exane BNP Paribas.

Analysts at Bank of America Merrill Lynch, if an explosion had finally held, "the impact could reach $ 10 billion" for Total.

This amount includes the loss of deposits and the platform and nearly deus billion to clean up environmental damage, but excludes any fines.

Most observers point out however that the situation on the Elgin-Franklin field is not nearly as critical as that of the Deepwater Horizon, in the Gulf of Mexico, including the explosion and sinking had made eleven dead in April 2010 and resulted in a serious oil spill. 

In total, the British BP has had to make provision for $ 37.2 billion deal with the consequences of this accident.

While nine million barrels of crude oil escaped from the Macondo well drilled on behalf of BP after the accident, analysts point out that only gas and products "light" is e ; chappent the Elgin wells, which should significantly reduce pollution.

Some further notes that the economic activity of the British coast is less important than the U.S. states bordering the Gulf of Mexico and the United Kingdom has not yet introduced legislation involving sanctions as severe as those imposed by the United States in case of water pollution.

"We do not expect major Total incur fines or provisions that must pass (…) As important as those of BP in the case of Macondo, "estimated the Exane BNP Paribas analysts

." This kind of accident is often unpredictable and difficult to resolve. Nevertheless, we think the probability is low to see the leak reach crisis proportions comparable to Deepwater Horizon, "he wrote on his side Fitch ……. According

.. rating agency, Total should maintain its AA credit rating even in the event of complete closure of the deposit of Elgin.

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.

India has formally followed the lead of China Thursday asking its airlines to refuse to participate in the program of the European Union to tax carbon emissions in the air transport, confirming what was said a senior Indian official told Reuters.

"While the European Union ordered the Indian carriers to submit the details of their aircraft emissions by 31 March, no company due to the fact the government's position" , said Ajit Singh, Minister of Civil Aviation.

"Therefore, the imposition of a carbon tax is not an issue," he said in a letter.

The European Commission was not immediately available for comment information. 

The opposition of India in the exchange system of emission quotas for greenhouse gas (ETS) could jeopardize the chances of New Delhi to reach an agreement, being born in ; negotiation, free trade with Brussels.

China first allowed its air transport sector to participate in this program.

Since 1 January, all airlines flying from airports in the EU are subject to a trading system of emission quotas for greenhouse gas (ETS).

A company failing to observe these rules is liable to a tax of 100 euros per tonne of carbon emitted quota allowed. The EU ban of up to serve European airports.

China has suspended the purchase of Airbus representing $ 14 billion because of the dispute with Brussels over the carbon tax. India is also a major customer of Airbus.

Airbus officials, airlines and European engine wrote last week in the Old Continent's political leaders urging them to resolve the dispute caused by the introduction of this carbon tax.

Boeing has supported Airbus in this matter, despite the bitter legal battle being waged for years the two aircraft manufacturers about the legality of state aid received to develop their planes. 

"It is no Airbus and Boeing, this is what is most beneficial to our customers and how the industry as a whole can reduce its carbon footprint," said ; Reuters Jim Albaugh, CEO of the Civil Aviation Division of the U.S. group.

"In my opinion, the European ETS is not the right approach. It must be suspended and we must work with the ICAO (aviation agency of the United Nations) to establish regu international rules that everyone can see. "

The objective of the British government to eliminate the budget deficit within five years is still valid, said Wednesday the finance minister, presenting a tight budget for the third consecutive year.

This budget, however, reduce the income tax and to accelerate the reduction of corporate tax (IS). These measures will be funded from the taxation of banks and wealthy landowners.

George Osborne added that the UK economy should avoid recession, says a new anticipate an acceleration of the recovery next year.

The growth rate of the UK economy is projected at 0.8% this year to 2.0% in 2013 to 2.7% in 2014 to 3.0% and the next two years.

The OBR had planned in November to 0.7% growth this year, 2.1% in 2013 and 3.0% in 2015 and 2016.

In terms of fiscal measures, the tax bracket of 50% for taxpayers whose annual income exceeds 150,000 pounds (180.000), introduced by the previous Labour government, will be reduced to 45% from April 2013, a move that will cost a maximum of 100 million pounds, said the Chancellor.

The minimum tax is increased to 9205 pounds of annual income (11,000 euros), an increase higher than expected, from April 2013 also.

The rate of corporation tax will be narrowed down from 26% to 24% next month and to 22% by 2014.

To fund these measures, a stamp duty of 7% will be levied on sales of land and property, above the two million pounds. In addition, the bank tax will be increased to 0.105% effective January 2013, so that the reduction of the SI does not benefit the banks.

DECREASE IN LOANS

The Office for Budget Responsibility (OBR) of the government projects a decrease in net borrowings to bring them back to 21 billion pounds for the year 2016-2017 as they totaled 126 billion over the year 2011 to 2012.

The new projection of the OBR is somewhat more optimistic than in November, when Chancellor of the Exchequer had to extend the package of austerity beyond the e elections of 2015.

The public sector debt and must reach a peak of 76.3% of GDP in 2014-15 before falling. 

"We are well positioned to meet this mandate and eliminate the structural current account deficit by 2016-2017," said the Chancellor of the Exchequer to Parliament on the occasion of the budget.

However, this deficit has reached record levels in February, reflecting a lower tax revenues and higher public spending.

Only a narrow majority of 15 out of 29 economists polled by Reuters had expected Tuesday that the coalition government to succeed in reaching its target of reducing the public accounts in balance, in structural terms at the horizon 2016-2017. 

They were 23 to consider that the debt ratio would have declined by that date and provided only a 25% probability of risk for the country to lose its precious triple-A, against 27.5% during a similar survey a month ago.

The Office of Debt Management announced that its part of the state debt would total 167.7 billion pounds in the 2012-2013 biennium, or about ten billion pounds less than when the previous year.

A Reuters poll gave 180 billion.

The Norwegian sovereign fund, the first equity investor in Europe, on Friday urged European leaders to fully address the structural problems of the old continent, but said he voted against the restructuring program of the Greek debt.

Presenting its results in 2011, the Government Pension Fund Global (GPFG), fueled by oil and gas bonanza of the Nordic countries, said he would prefer re a solution to the Greek case which does not favor some creditors over others.

"We voted against for reasons of principle," he told reporters Yngve Slyngstad, CEO of Norges Bank Investment Management (NBIM), a division of the Norwegian central bank manages the SWF. 

"As long-term investor, we believe it is important to stick to principles."

He stressed that the exchange process of debt expected in the second aid plan for Athens had not put all creditors on the same plan since the European Central Bank (ECB) received a preferential status.

The fund has also stressed the need to solve the current difficulties of the old continent.

"Because more than half of the fund is invested in Europe, it is very important to us that the authorities manage to solve their enormous monetary and structural challenges", a de ; Yngve Slyngstad clared in a statement.

The fund had 3.NOK 312 billion (439 billion) at December 31, against 3.055 billion kronor in late September.

The share of the fund invested in equities reached 58.7% at the end of last year, against 55.6% at the end of the third quarter. Yngve Slyngstad said the fund held 2.25% of the total market share in Europe.

He reported the purchase of more than 150 billion kronor (19.8 billion) of European values ​​on the second part of 2011.

In the fourth quarter, the fund posted a return on investment of 4.4% in the fourth quarter, ending on a positive note one year 2011 where the return on investment has reached -2.5 %, a loss of 11.4 billion euros.

In the third quarter, the return on investment reached -8.8%.

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).