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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Greece still has no government. The risk of bankruptcy and the issue of leaving the euro area is raised again. Result: the stock prices fall and investors flock to German bonds, even if they yield nothing. The Eurogroup meeting will be devoted to Greece and Spain

After a difficult week, the stock markets reopened on Monday sharply lower against the backdrop of prolonged political stalemate in Greece, epicenter of the debt crisis, while be held a meeting of the Eurogroup.

Monday morning, Paris was losing more than 2% in early trade, London 1.33%, 1.31% Frankfurt. In Milan (-2.02%) and Madrid (-2.47%), the decline was more pronounced after banks have announced they will place new provisions because of subprime mortgage they hold in their portfolios. The day promises to be difficult, while "the risks to the euro area are still very real," said Chris Weston of IG Markets.

More than a week after the parliamentary elections, Athens still has no government. But the prolonged absence of government raised concern among investors in a delay or suspension of financial aid promised in Athens to enable it to meet repayment dates and ensure payment of arrears.

Monday, the Greek President, Karolos Papoulias, will try to snatch a coalition government during the final meeting between the country's political leaders. But many observers believe the country is moving towards new elections in June as the positions between pro-and anti-austerity diverge.  

Another sign of market nervousness, the 10-year rate of German bond (Bund) fell Monday morning at their historic low (1.47%). The political situation seems to push investors to turn to these securities deemed safe. "Investors plébiscitent increasing security even if the debt did their German report anything," said Nordine Naam, bond strategist at Natixis. He added: "Fears of an output of Greece of the euro are strong and, in case of persistent political deadlock in that country, the Bund interest rate expected to fall further in the coming days".

It was in this tense situation the finance ministers of 17 member countries of the euro area shall meet this afternoon in Brussels. A signal strength should be sent to Athens, to push the Greek authorities to put in a faster end to this in-between chaotic. Spain will, too, part of the program. The Spanish Minister of Finance, Luis de Guindos, will try to reassure, giving an overview of the reforms that Madrid will set up to consolidate its public finances. Is that Spain is in the viewfinder markets. The rate of its 10-year government bonds is back above 6%.

French banking stocks opened sharply down Monday on the Paris Stock Exchange, after the results of parliamentary elections in Greece and the presidential election in France.

In early trade, the shares agricultural, heavily exposed to Greece because of its local subsidiary Emporiki weighed down by losses, falling nearly 6%.

BNP Paribas and Societe Generale fell by more than 3.5%, underperforming the European banking index down by 1.18% at the same time. 

In Greece, voters, angered by the recession and austerity, were heavily penalized Sunday the two main parties, New Democracy (ND, right) and the Party Socialist (PASOK), and offered to the radical left a spectacular breakthrough in the risk of boosting debt crisis and questions about maintaining their country in the euro area.

In France, Socialist Francois Hollande, who plans to reform the banking system to protect customer deposits and make the market less risky activities, has won Sunday's presidential election, marking the return of the left in power.

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.

CaixaBank Monday agreed to buy Banca Civica to 1.97 euro per share, valuing the latter 980 million euros, said on Monday close to the matter.

A second wave of consolidation is currently at work in the Spanish banking sector, many banks needing fresh capital to cover losses related to the break at the end 2007 a real estate boom a decade.

The newspaper Cinco Dias reported on Monday that would propose CaixaBank 2.2 euros per share Banca Civica through a share exchange transaction valuing the target at 1.1 billion euros .

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 number of referrals to the Ombudsman of energy increased 14% in 2011. At issue: payment difficulties. The Ombudsman proposes to introduce a general truce breaks from November 1 to March 15.

The cases of fuel poverty rose sharply last year in France, as a result of the crisis and rising energy bills and gas, says National Energy Ombudsman in his 2011 report published Tuesday. The Ombudsman, an independent administrative authority which began operations in 2008, saw its number of referrals increase by 14% last year, in 8044, it said in its annual report, up a bit weaker than the explosion recorded in previous exercises.

But of that total, the number of cases related to payment difficulties has increased by 80% compared to 2010, and represented over 15% of all referrals, calculated the Ombudsman. "The economic crisis and rising energy prices have compounded the problem of fuel poverty", that is to say, struggling to pay their electric bills or gas, and pushed more and more income households to seek mediation, the institution said. The Ombudsman recalls in passing that the regulated gas prices rose 25% in two years, and those of electricity by 8%.

The Ombudsman also proposes measures to better fight against the rise of fuel poverty, considering the schemes (such as social tariffs for electricity and gas, whose allocation has been made automatic for all eligible households ) insufficient, even if they are "in the right direction." It proposes the establishment of a general truce breaks from November 1 to March 15 for all consumers, on the model of the winter break of evictions (a truce energy cuts already applied but only for some consumers), and the establishment of an "energy check", which may be substituted for social tariffs.

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%.

PSA Peugeot Citroen does not exclude the future of cross-shareholdings with its new partner General Motors, which will take 7% of its capital as part of the alliance unveiled last week by the two groups.

The strategic partnership between the first French car manufacturer and the largest U.S. and world provides a common purchasing and the further development of common platforms.

The operation was not accompanied by an exchange of equity interests, as is often use to seal such a reconciliation, but a stake in GM in one way PSA, through a capital increase of one billion euros from the French group. 

"Now the time for us is probably not advisable to start with cross-participation because we need money to develop projects in which we invest with GM," de ; clared Philippe Varin, CEO of PSA, during a press conference at the Motor Show of Geneva.

"Nothing is excluded for the future, but it will not change the content of our alliance," he added.

Another big merger between two manufacturers, the Renault-Nissan has built from 1999 on equity cross – Renault now owns 43.4% of Nissan, Nissan 15% of Renault. The enlargement of the alliance in 2010 to Germany's Daimler was also accompanied by an exchange of capital, but more symbolic than at 3%.

"We think we cross-holdings are the best way to cement the win-win spirit of collaboration between the teams," said Carlos Tavares, Executive Director Officer of Renault, interviewed on Tuesday announced an alliance with its competitor.

"PSA as GM have a challenge in Europe in terms of their industrial overcapacity, both having the same problem I wonder how they will learn from each other to solve , "he added. 

COMPLEMENTARITY ON FUTURE PLATFORM

Philippe Varin declined Wednesday to discuss the implications of future common platforms for staff and two groups of plants in Europe. The first vehicle produced by this new architecture is programmed for 2016, which means starting construction next project.

The chief executive of PSA simply repeated today, the alliance had no impact on PSA overcapacity in Europe, a problem that the group intends GM solved separately in two years.

"This is a problem that every European competitor must address, it is not just a question for PSA, is a question for all European manufacturers," added Philippe Varin.

"It depends, for each manufacturer, the life cycle of its models. We, like others, will make decisions in a timely manner, "he added

. In the range of PSA, both models fueling questions about the future of sites that produce the Peugeot 207, produced in Madrid, near the end of life. Then comes the Citroen C3, also made in Madrid but also in Aulnay-sous-Bois, where management refuses to discuss the post-2014.

On the type of vehicle that will launch the first platform PSA-GM, the French group simply noted that the small car B segment, which includes the new Peugeot 208 presented e for the first time in Geneva, the alliance would draw on the expertise of the French group, while another segment of the priority of the alliance – the D, that of road – the U.S. would bring more.

PSA relies on this combination to continue its strategy of moving upmarket and internationalization of its sales, the financial difficulties that appeared last year against a backdrop of falling sales in Europe were likely to hinder . 

"The alliance allows us not to delay some projects that we would have been forced otherwise to delay," said Philippe Varin.

PSA has always perform 50% of its sales outside Europe in 2015, and two-thirds in 2020.

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.