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

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Even before the inauguration of the second Socialist president of the Fifth Republic, the president of MEDEF multiplies the signals conciliatory address.

Laurence Parisot and Francois Hollande said on Friday, already engaged in consultations with European leaders, was right to put the topic of growth on the table.

"We want to work to ensure that as soon as possible our country finds the path of sustained economic growth," she said on RMC and BFM-TV. "We have some impatience to meet the government or the president."

The chairwoman of the main French employers' organization believes, however, should not oppose this issue to that of fiscal discipline, which was one of the axes of attack of the outgoing president Nicolas Sarkozy against Francois Hollande during the presidential campaign.

"Obviously we need, all European countries today, methods, disciplines to manage our budgets," she said.

One position it defended in an interview with Les Echos, in which she wondered, however, also on how to complete the "budget package" signed in January by 25 of the 27 countries of the European Uni ; enemies by a "growth package". 

"We must also ask how to create a confidence shock that would be a growth shock without exacerbating the deficit," said the president of MEDEF. "In other words, we support a growth initiative, a 'compact growth' but not renegotiate the 'tax compact'."

It is in this context a series of proposals – hire a general review of European policies, define priorities in infrastructure to be financed by public-private partnerships or "project bonds" – bonds related to investment programs, etc..

CALL TO THE ECB AND BERLIN

"The chamber is clearly European. We join the call by Jacques Attali and Pascal Lamy for a government and an economic growth of European budget ", says she

……. .. The former collaborator of François Mitterrand and the current Director General of the World Trade Organization are deemed close to the Socialist Party

.. Laurence Parisot ……. Les Echos also develops in any argument that would not have denied the candidate Holland

. "We want Europe to have a clear doctrine and assumed in terms of competitiveness, that is better coordination between monetary policy, fiscal policies and an investment policy that could be decided at EU level, "she said. 

The chamber also wants the European Central Bank "to make sure that the euro is not so high against the dollar, which depends on interest rates but also the speech of his pre President ", and that Germany," who has no interest that the euro zone into recession, has a more cooperative approach and a policy based more on demand ".

These convergences with the program of Francois Hollande do not erase important differences, including the fate of the pension reform, corporate taxation and a possible "boost" to the minimum wage (SMIC).

But on these subjects, Laurence Parisot is rather conciliatory. She says well prepared to discuss the calculation of the minimum wage, wants the introduction of such a minimum wage in Germany and does not reject the idea of ​​framing the high salaries in the public enterprises.

CONTACT

"I can not tell you if a scale of 1 to 20 is good or not," she told BFM-TV and RMC. "But (…) I expect a lot from the President on this point (…) There is a balance to find." And estimate, again, that Francois Hollande is right to put the subject on the table, "because it is the social bond is at stake."

She confirmed on BFM TV and RMC officials that Medef already working with employees of successor Nicolas Sarkozy, who takes office Tuesday.

"I myself have met several members of the team of Francois Hollande," she added. "We are sweeping all subjects and at the same time (…) we are already working with the unions."

During the campaign, the candidate Holland announced his intention to convene in mid-July a national conference for growth and employment.

"The approach of Francois Hollande on social dialogue is very much that we have long advocated," said in Les Echos Laurence Parisot, who even considers "interesting" sound idé e of "generation contract". 

Nicolas Sarkozy, after betting on dialogue with unions to ensure social peace, has only had its share of stops during the presidential campaign to denounce the "intermediate bodies" charged tied up and threaten to appeal directly to the "people" by means of referendum.

Vallourec has revised downwards its growth forecast Thursday in turnover this year after beginning the exercise penalized by a demand remained weak markets as electrical energy and the automobile.

The producer of seamless steel tubes are now waiting for the current year to grow by about 5% of its turnover, while initially provided an increase of order of 10%.

In the first three months of the year, sales came out at 1.199 million euros, up 4% from first quarter 2011 but a contraction of 23% over the last quarter of 2011.

Its operating profit margin stood at 12.7% at end-March 2012, against 16.4% in the fourth quarter and 17.7% in Q1 2011. 

"What we see today is that the macroeconomic environment in Europe remains very uncertain and demand in markets outside oil and gas remains low," said Olivier Mallet , CFO of Vallourec in a conference call.

"(Demand) is well below our expectations at the beginning of the year," he added. "And if there was a slight rise in orders since January, it is below what was expected and visibility remains limited."

The group warned last February, on the occasion of the presentation of its annual results, expect a further decline in margin in 2012 due to the costs of de ; boot of his new plants.

Vallourec says still expect a "slight improvement" of its gross operating margin over the next three quarters, reaching a 15% margin over the full year.

At the Paris Bourse, the Vallourec share price closed before the quarterly earnings release, to 42.865 euros, up 1.46%.

Lafarge will continue in 2012 its price increases, to reduce its debt and its asset sales, in a context of increasing global demand for cement which supported its first quarter results.

The world's leading cement, who is currently refocusing on the job and on the concrete and aggregates while leaving the plaster continues to anticipate for the year increased 1 to 4% demand for cement due to emerging countries, where it now generates 60% of its sales, and even Europe, especially in the South.

It is right to catch up on prices, particularly favorable to the margins of the group Lafarge anticipates a more moderate cost inflation in 2012 and 2011. 

"Price increases passed successfully at the beginning of the year confirm our optimism on prices for the entire year," said Chief Financial Officer Jean- Jacques Gauthier during a teleconference.

He also expressed confidence to proceed to a further increase in August in the U.S. cement.

Lafarge has maintained its estimate of the market in 2012 despite weaker business in Greece on the one hand, and despite the rebound in the U.S. on the other. Jean-Jacques Gauthier said that the North American market, the group wanted to wait safely in the second quarter before rising to possibly refine its current forecast of demand for cement, between -1 and +2%.

"The main figures should receive a positive reception, especially in light of recent pressure exerted on the action," said Goldman Sachs in a note.

Around 11:30, the title Lafarge is 3.2% to 30.92 euros, after a day earlier to 31.80. At the close of Thursday, title, posted a gain of 10% since the beginning of the year, after -42% in 2011.

OVER ONE BILLION EUROS FOR TRANSFERS OF ASSETS IN 2012

Lafarge posted first quarter revenues up 5% to 3.35 billion euros, slightly above the consensus reached by the editor of Reuters ; estimates from eight analysts who gave $ 3.3 billion.

The EBITDA increased its share to 8% and operating profit by 28%, while net income, group share, showed a loss of 44 million euros , -29,000,000 against a year earlier, reflecting restructuring charges corresponding in particular to the 500 job cuts brought worldwide as part of the reorganization of the group. 

Excluding these charges, Lafarge has emerged over the period with net income of 18 million euros.

Lafarge intends to reduce by at least 400 million euros this year and costs limited to EUR 800 million investment as part of its debt.

In the first quarter, the group's net debt, largely inherited from the acquisition of Orascom in 2008, declined by 13% year on year to 12.4 billion euros . One quarter to another, it is clear, however, up 3%, a trend linked "to normal seasonal variations in working capital (working capital needs)," said Lafarge.

To seek "significant" this debt in 2012, the group also to give one billion euros in assets, of which 71 million were performed on the quarter.

Jean-Jacques Gauthier said that Lafarge would exceed the figure of one billion, but without saying how much.

Both activities are the subject of rumors of transfers, the plaster in North America, a trade balance which the group is almost released last year, and cement in South Africa. Lafarge must also achieve significant asset sales in Britain required by the Competition Authority to give its green light to the proposed joint venture between Lafarge and Anglo American.

"It is not impossible that these divestitures can be made in 2012," said his side the CEO of Lafarge, Bruno Lafont, during a teleconference .

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.

Bad news on the economic front: the activity in the services sector began to turn to contract and morale deteriorates entrepreneur. The recovery will be anemic. French executives come to the business district of La Defense

The significant recovery announced by Nicolas Sarkozy is struggling to emerge. Instead, the slump continues, whether in industry or in services. The private sector activity has indeed registered the largest decline since 6 months, according to a first estimate of the PMI index released Monday by the firm Markit. The index "flash" composite of overall activity in France has contracted from 48.7 points in March to 46.8 points in April, below the 50 points that mark a contraction in activity. This decline reflects a sharp deterioration in performance of the services sector, whose activity fell for the first time in five months.  

The French industrial morale has degraded him in April compared with the previous month, according to the business survey released Monday by the National Institute of Statistics and Economic Studies (INSEE). The composite indicator of business climate in the industry fell 95 points, against 98 in March and remains below its long-term average set at 100 points.

"Here we have throughout the disappointing figures, downright disappointing side of the PMI surveys," summed Baudchon Helena, economist at BNP Paribas of France. Details of the survey by INSEE in March, which marked a rebound of industrial morale, "let hope for a continued recovery," said she. "I expected better than this: the confirmation of a rebound in confidence of business leaders," adds his colleague Societe Generale, Michael Martinez.  

The overall indicator of business climate in France, INSEE calculated from the responses of CEOs of major industries, is itself almost unchanged in April, to 95 points, with a decline in the building, an increase in retail trade and a stable indicator in services.

An anemic recovery

"In total, still manages to defend the idea that the French economy is now rebounding from a low point that has been the fourth quarter and first quarter. But the strength of this rebound is very very low, "says Mr. Martinez, who expects a decline of 0.1% of GDP in the first quarter, followed by an increase of 0.1% in the second.  

According to Jack Kennedy, the firm Markit economist, "the second quarter of 2012 will be difficult for the French economy, the service activity in April showing a decline in concern while a decline in manufacturing persists." He perceives a "wait and widespread household as businesses at the approach of the presidential election".

An argument that refutes Ms. Baudchon, for whom "the external economic and financial environment always difficult is a good explanation of the new shift in the PMI surveys in France and Germany".

Sector by sector in the industry, the survey by INSEE mask disparities and it appears that the decline is mainly due to the vehicle with the past activity "would have contracted sharply" and metallurgy.  

A table overshadowed by the automobile?

The overall order books and foreign French carmakers are down sharply while that "given the personal perspectives of production, the activity could fall further in coming months," said INSEE.

"Outside the car, which suffers from the end of certain tax provisions and the European context with overproduction on a European scale, we nevertheless confirmed that production recovered slightly and the personal perspectives of production are well oriented ", says Mr. Martinez.

The current account deficit of France widened in February to 5.0 billion euros from 4.4 billion in January, show figures released Thursday by the Bank of France .

The trade deficit in goods rose to 6.6 billion euros against 5.8 billion a month earlier.

Trade in services have in turn generated a positive balance of 1.3 billion euros after 0.7 billion in January.

The balance, positive income decreases to 2.6 billion euros from 3.1 billion in January.

The deficit in current transfers remained stable at 2.3 billion euros.

The financial account was positive at EUR 15.8 billion in February from -2.8 billion in January. 

French direct investment abroad stand at 1.5 billion euros from 4.1 billion a month earlier, while direct investment by non-residents in France rose to 2.6 billion after $ 0.9 billion in January.

Portfolio investments are the source of capital inflows to 18.5 billion euros "mainly due to purchases by non-residents of securities (public and bank) issued France ", according to the Bank of France, after trips to 23.4 billion in January.

The residents have reduced their holdings of 0.3 billion euros (-21.3 billion in January after), while non-residents have made purchases , height of 18.8 billion (-2.1 billion in January after). 

Other investment outflows display of 6.3 billion euros from 26.7 billion of inflows in January.

European shares move in a disorganized mid-session after opening up while Wall Street is expected to have eased slightly.

In Paris the CAC 40 was down 0.15% (-4.99 points) to 3,418.82 points. In Frankfurt, the DAX rose 0.29% and London, the FTSE is virtually unchanged. The pan-European index Stoxx 50 was down 0.40%.

The index futures point to a New York opening spreads from Wall Street while the purchasing managers' index for manufacturing (ISM) will be published at 1400 GMT.

In Paris, Total continues to rebound and earn 1.27% after the announcement that British authorities will receive Monday representatives of the company to consider a proposal to send a team of experts on its platform of Elgin in the North Sea which had to be evacuated due to gas leak. The revelation of the leak on March 26 led to a drop of nearly 7% of Total's share price, the last week, despite a rebound of a , 06% Friday after the announcement of the termination of a flare which casts a risk of explosion of the installation.

PSA Peugeot Citroen fell by 3.77% after announcing a fall of 33.2% over twelve months of its new car registrations in France in March, while Renault sells 1 76% after a decline of 29.8% over the same period against -23.5% for the whole French market.

Cimpor jumped nearly 9% in mid-session after the announcement Friday by the second group of Brazilian Camargo Correa construction of its intention to launch a bid for 68.1% capital of the Portuguese cement that does not already own. 

Originally worn by an official index of purchasing managers in China better than expected and reassuring thought on the growth of the first Asian economy, some European equity markets are ironed in led by the red squares of the peripheral countries of the south.

Information from press reports that the Bundesbank planned to take over the paper in several countries, including Portugal, have weighed heavily on the places of southern Europe, before being denied by the Institute of German issue.

The acceleration of the contraction of manufacturing in the euro area in March, reinforcing fears of a recession within the bloc while the slowdown has spread to Germany and France, has also affected the trend.

This is a Rupert Murdoch angry that went against the attack Thursday against the "enemies" who accuse his media group News Corp. to have hacked his rivals, calling them "aristos and conservatives "finding their privileges of the last century.

Already weakened by the scandal of illegal wiretapping in Britain, News Corp. is in the center of new allegations made in Britain and Australia that a subsidiary of would have had the mission of promoting piracy of pay TV channels competing.

The Australian Financial Review reported Wednesday that News Corp. had made use of Operational Security, a subsidiary established in the mid 1990s, to sabotage its competitors. The Panorama program, broadcast earlier this week in Britain by the BBC, had already reported similar suspicions.

Operational Security was a branch of NDS, a subsidiary of News Corps specializes in signal encryption, a crucial activity for pay-TV channels.

News Corp. as NDS, exit from the orbit of the Murdoch group, pitted categorical denials to the allegations.

"It seems that each of our competitors and enemies accumulate lies and slander," wrote Rupert Murdoch on his Twitter account Thursday, adding that the response was being prepared and would be severe. 

News Corp., whose activities span the spectrum of media and whose power is said to be able to make or break political careers, is subjected to very high criticism since the scandal broke wiretaps in Britain who notably led to the closure of the tabloid News of the World last summer.

But faced with these new charges, Murdoch, who confessed last July to a parliamentary committee having lived "the most humiliating day of his life", seems to have opted for a response from any other type .

Always on the microblogging site, he believes his "enemies have different aims" but they are "the worst old aristocrats and conservatives who want to preserve the status quo of the last century with their monopolies ". For a staunch Republican such as Murdoch, "aristo" comes under heavy insult.

THE BBC AND MAINTAIN THEIR AUSTRALIAN FINANCIAL REVIEW INFORMATION

But the BBC, which was repeatedly in trouble with BSkyB, whose News Corp. owns 39% stake, maintained Thursday the revelations of the magazine Panorama.

"We received the letter and have knowledge of NDS by News Corp's rejection of the revelations of Panorama. However, emails released this issue have not been manipulated, contrary to claims that NDS, and nothing (…) does not minimize the evidence released es in this issue, "said the public channel

. At the opposite, the Australian Financial Review, property group Fairfax Media, chief rival of Murdoch in the Australian press, has also maintained its information

. "Fully secured to the extraordinary investigation Neil Chenoweth, "the journalist who released the information, Michael Stutchbury, editor of the Australian Financial Review, said the newspaper was" in no way motivated by any desire either to harm a rival financial group that manages the Financial Review ". "We only cover a case and publish what we found," he said.

No evidence uncovered by the BBC as the Australian Financial Review to suggest that Murdoch or any senior executive of News Corp were not aware of practices lent to NDS.

According to the Australian Financial Review, Operational Security reportedly recruited hackers to decipher codes or access cards provided by pay TV competitors to their subscribers. These codes were then distributed on the black market via "yes cards" to monitor programs encrypted channels without paying a penny.

The Australian Financial Review, which suggests a shortfall amounting to millions of dollars, said particular rely on 14,400 emails retrieved from the hard drive of a laptop that used it Ray Adams, responsible for Europe NDS Operational Security from January 1996 to May 2002.

Monday, a report broadcast by the BBC as part of its documentary program Panorama has ensured that NDS hired a consultant to broadcast via its website access codes to ITV Digital, a competitor to Sky TV , chain that belonged to Murdoch. 

ITV Digital, which has accumulated difficulties at launch (rivalry between shareholders, lack of flagship programs, price war with BSkyB), disappeared in 2002.

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%.