Business & Financial News

List of stocks followed Friday the Paris Bourse, where the CAC 40 index lost 0.1% to 3008.86 points to 12.30, after posting a new low for the year to 2,970.10 points early trading as risk aversion is increasing in Europe, Fitch has downgraded Greece Moody's and that of several Spanish banks.

* Many CYCLIC and / or values ​​at high risk of suffering INTERNATIONAL also fears about the U.S. and Chinese growth after the publication of several unfavorable statistics.

Pernod Ricard was down 2.74%, largest drop in the CAC 40, PPR of 2.18%, 1.82% LEGRAND, and CAP GEMINI of 1.63%. The Stoxx European car sector (-1.93%) shows the largest sector decline in Europe.

* The oil services also receding in the wake of oil prices. TECHNIP loose 1.4%, 0.6% MAUREL AND PROM and CGG VERITAS 2.35%.

TF1 * still leaves 4.75%, after pressing an important technical support around 6.60 euros, according to technical analysts. Since the announcement May 15 of its withdrawal from the MSCI at the end of the month, the value lost almost 13%.

* A reverse trend, financial stocks have regained some color after the first exchange in the red, traders citing a report in the Spanish newspaper Cinco Dias that Spanish banks want a ban on sales to ; discovered. In addition, the trade commissioner, Karel De Gucht, said the European Commission and European Central Bank are working on a contingency plan in case Greece should leave the eurozone .

SOCIETE GENERALE advance of 4.75%, largest increase in the CAC 40 and SBF 120, BNP Paribas took 4.08% and Crédit Agricole, who scored early Matiné e a new record low at 2.934 euros, were up 2.73%. The Stoxx index of European banking sector sign up only in Europe (+0.4%).

* ARCELORMITTAL grants to 1.55%. The steelmaker Nucor has announced the acquisition of Skyline Steel LLC, a steel foundation, with ArcelorMittal for about $ 605 million (478 million).

* EDF, which had lost over 3% yesterday, back to 1.78%. Edison (-0.06%), which the French group is preparing to take control, has expressed interest in gas reserves off the Israeli coast.

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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.

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 Defense Ministry said Tuesday it has given to the supplier Thales the first tranche, amounting to 263 million euros, an equipment contract of the French army in next-generation tactical radios from 2018.

The radios of the "Contact" will allow simultaneous transmission and highly secure voice and data for the infantry and armor, the ministry said in a statement.

In a second step, these positions also equip combat aircraft, intelligence and transportation and vessels.

The first installment, devoted to development work, will be notified at Thales Communications in the coming days, the ministry added. 

The contract, which is part of Scorpio French military modernization, especially equip future multi-role armored vehicles (VMBR) called to replace the current armored vehicles ahead (VAB).

According to Le Figaro, the contract of three to four billion euros in total over a period of 22 years had been approved by the Ministry of Defence, but that's the Economy ' objected to the notification of an important contract in its presidential campaign, prompting Prime Minister Francois Fillon to rule in favor of the project.

The Defense Ministry was not immediately available to comment on this point.

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.

Audi, the premium brand of Volkswagen sold 143,500 vehicles in March, a record, or 14.1% from a year earlier, thanks to solid demand from the States U.S. and China.

Over the quarter, the manufacturer sold 346,100 vehicles, representing an increase of 10.8%.

"We started the year 2012 successfully and we anticipate continued growth in the coming months," said in a statement Peter Schwarzenbauer, responsible for sales of Audi.

The deficit narrowed more than expected in 2011. Good news for the future president. But the deficit target of 3% of GDP by 2013 seems difficult to achieve, given the campaign promises made by candidates at the Elysee Palace. View of the Ministry of Economy and Finance at Bercy.

At twenty-three days of the first round of presidential elections, Nicolas Sarkozy may finally assert some good news on the economic front: the public deficit of France was reduced to 5.2% of GDP in 2011, against 5, 7% initially foreseen in the budget law. President, UMP candidate at the Elysee Palace, was granted the first to hear the announcement this morning on Europe 1, grilling politeness in passing at the National Institute of Statistics.

Members of his government were also quick to react. Valérie Pécresse, the budget minister, welcomed an effort "historic". "Never has the government deficit in France has fallen as far from one year to another," Francois Fillon welcomed. "This is the result of both structural reforms that the president and government have undertaken since 2007 and the reactivity of which we have been to take timely steps to preserve our cap facing the crisis, "said the Prime Minister.

In fact, the deficit is indeed historic. It is almost two percentage points of GDP – the deficit was 7.1% in late 2010 – or nearly 40 billion euros. "This is a performance ever," says Jean-Christophe Caffet, economist at Natixis. This improvement comes at a time of buoyant revenue, which rose from 49.5% to 50.7% of GDP, and expenditure restraint, which rose from 56.6% to 55.9% of GDP. The sharp increase in expenses is largely due to strong tax bases and good elasticity of taxes to the moderate growth – 1.7% in 2011.

Taxes on income and wealth have risen by 10% in 2011: the increase in tax revenue comes from both the corporate income tax (8.7 billion) that the income tax (3 , 6 billion) and social contributions (13.3 billion) due to higher payroll. Measures taken in the context of both austerity also had a positive effect: the CSG revenues increased 5.2 billion due to the introduction of taxation over the water revenues of life insurance, VAT receipts were boosted (5.8%) by increasing the tax on insurance contracts and the removal of VAT reduced on triple play.  

The deficit target for 2012 is achievable

Result the tax burden rose 1.3 points to 43.8% of GDP last year, surpassing 2007 levels, while Nicolas Sarkozy promised to lower them. As for spending, they have continued to increase, but it is true more slowly than inflation. Operating expenses of the state, including staff salaries, slowed sharply (+1.6% after +2.1% in 2010), by freezing of the index which is indexed on the salaries of civil servants . Spending inputs have, they, down 1.5% due to very low shipments of military equipment in 2011, and public investment has registered a moderate increase (+1.6%). Ultimately, Jean-Christophe Caffet calculates, "the structural effort of the government is only about a third of the deficit reduction in 2011."

Nevertheless, the result is there. And strength of this success, the executive has even lowered the public deficit target for this year to 4.4% of GDP against 4.5% previously. Given the growth overhang the first half of 2012 to 0.5% according to INSEE – and reduces the effort required this year – 0.8 percentage points of GDP or 16 billion euros -, "this goal deficit is largely achievable, "said Jean-Christophe Caffet. Especially as many measures as part of the austerity plan – increase in VAT reduced from 5.5% to 7%, establishing an outstanding contribution on high incomes, freezing the scale of the income tax, freeze benefits, etc.. – Come fully into force this year.

A boon for the next president to be elected in May and the government that emerges from the polls in June. "The big uncertainty is 2013, warns economist of Natixis, because nothing is known about how the structural effort that will achieve, or about 30 billion euros". France has indeed committed to Brussels next year to bring its public deficit to 3% of GDP. Nicolas Sarkozy and François Hollande, have both confirmed this objective during the campaign. The two favorites in the race to the Elysee to differ only after the UMP candidate promising to balance the budget by 2016 while that of the PS wants to achieve in 2017.

The problem is that Nicolas Sarkozy has not announced anything else, for now, that further measures of reduced spending over the past two years. But it will not be sufficient to reach 3%, especially if growth is still not at the rendezvous. As for Francois Hollande, it provides 25 billion of new spending on the five-year and 40 billion annual tax increases. Increases which will focus on businesses, which may penalize growth. From this perspective, The Economist is right: "Whoever wins on May 6 will adopt a tough stance against the deficit, writes the weekly UK this week. Nicolas Sarkozy will make further cuts in the budget, Despite his promise to protect the French austerity. Francois Hollande will push, if not waived, that many of its spending promises. "

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 activity of the French manufacturing sector has improved slightly in February, according to final results of the survey from Markit purchasing managers published Thursday.

The PMI rose to 50.0 last month, slightly below the first estimate (flash) published on February 22. He had registered at 48.5 in January.

The index found the 50, which separates growth from contraction, after six months in negative territory.

The index of manufacturing production also increased, to 50.8 against 48.8 in January and 51.4 in the first estimate.

That of new orders increased to 48.2 against 45.7 a month earlier (47.9 in flash).

"After having contracted slightly over the last six months, the French manufacturing sector appears to be stabilizing in February, showing an increase in production very marginal and the volume of new export orders increased moderately, "said Jack Kennedy, economist at Markit. 

"The weak demand persists, however, the domestic market while the purchasing price inflation is increasing and reached a high of eight months," he nuance.

"The resurgence of price pressures in a context of weak demand puts businesses in a difficult situation, any attempt to protect margins could result in a further decline in new orders."

The New York Stock Exchange ended down slightly from 0.01% Friday, the Dow Jones 30 industrial yielding 1.74 points to 12,982.95. The S & P-500, wider, took 2.28 points, or 0.17%, to 1,365.74, a closing level since June 2008 unpublished.

The Nasdaq Composite Index advanced 6.77 points on its side of (0.23%) to 2,963.75.

For the week, the Dow was awarded 0.3%, as the S & P 500, while the Nasdaq took 0.4%.