Top Economics News

The second Japanese bank, Mizuho Financial, reported Tuesday a fall of 80% of its net quarterly profit, mainly due to a decline in the value of his stock portfolio. </ p> Net income for the quarter October to December fell to 16.3 billion yen (162 million euros), against 80.3 billion yen in October and ; December 2010, according to Reuters calculations based on the results of nine months. </ p> Nikkei index falling by over 13% between April and ; December, banks have had to spend significant provisions on the value of its shares in listed companies. </ p> The results are also affected by a charge related to a change in tax law.</ P> For the year, Mizuho maintains its net profit forecast to 460 billion yen, up 11% over the period 2010-2011 while the market expects 427 billion yen, according to the consensus Thomson Reuters I / B / E / S. </ p> The first Japanese bank, Mitsubishi UFJ Financial, is to publish its results on Wednesday. </ p > <p> third Japanese bank Sumitomo Mitsui Financial Group (SMFG) said Monday net income stagnant under its third quarter. </ p> Action Mizuho has gained 17% since its low point of eight years moved in November, while the Nikkei index gained 8% at the same time. Mitsubishi UFJ Financial Group (MUFG) is up 10% and 20% of SMFG. </ P>

Exchanges in the euro area have closed down sharply Friday, with the G20 summit concluded its work without any major decision, and especially without a concrete solution to the debt crisis in the eurozone.

In Paris the CAC-40 lost 2.25% to 3123.55 points. For the week, it yields 6.72%. The other major European markets also ended down: London and Frankfurt lost 0.33% 2.72%. Of the European indices, Eurofirst 300 finally lost 1.02%.

The Wall Street players show the same skepticism, resulting in losses of more than 1% for the three major Dow Jones, S & P 500 and Nasdaq Composite, despite the employment statistics rather positive.

"The G20 has not entered into by major decisions. It was a big problem with Italy," says one vendor."There is no visibility," he said, adding that the new EU stability "is not forthcoming."

Alexandre Le Drogoff, technical analyst at Aurel BGC, said the "bear market" comes back and that "the current decline in prices should lead to lower annual test" (2693 for the CAC 40, 1935 for the Eurostoxx 50).

The euro transplanted nose against the dollar and appears on course to acknowledge its biggest weekly loss since mid-September, traders in the largest remaining uncertainty about the bailout of Greece in preparation for the vote of confidence.

The Bund future was up, taking advantage of the lack of commitment of the G20 countries on strengthening the participation EFSF, especially after the statements of German Chancellor Angela Merkel.

European leaders are determined to act in a coordinated response to the crisis in the euro area, said Wednesday the executive director of the International Monetary Fund, Christine Lagarde.

On the eve of the G20 summit in Cannes, the former French Finance Minister acknowledged that could occur in spurts, a thinly veiled reference to the surprise announcement of a referendum in Greece, but it ensured that the determination of the Europeans was decisive.

When working at B20, which brings together representatives of world's largest companies, in Cannes, she explained that global growth was slowing, but she persisted.

She added that the downside risks weighing on growth, suggesting a negative interaction of financial and economic, as well as the risk of social unrest.

About the crisis in the eurozone, "I've never seen so much determination and will to act in a coordinated manner," said Christine Lagarde.

"You will see (reactions such as) 'but what does it speak? What have we seen two days ago?' Of course, things are not smooth, sometimes in fits and starts major, "she added.

"But what matters is what was decided on October 27 in the morning (…) and what will count tomorrow, in the days, weeks and months, it is the resilience and determination of the partners the euro, European partners, "added Christine Lagarde.

Core values ​​to take on Wall Street Thursday.

* Chevron announced Thursday a 3.8% increase in its quarterly dividend, which will reach 81 cents per share.

* RAYTHEON published adjusted earnings of $ 1.39 per share for the third quarter and a turnover of 6.13 billion, against a consensus Thomson Reuters I / B / E / S of 6.38 billion of dollars.

* Procter & Gamble announced Thursday an increase in sales in the first quarter of fiscal year and an earnings per share in line with analysts' expectations.

With $ 21.9 billion, the revenue exceeds the consensus Thomson Reuters I / B / E / S, which included 21.53 billion dollars.

Earnings per share was announced at $ 1.03, as expected.Turnover was up 14% to $ 1.68 billion (1.66 billion expected, on average).

* BMC SOFTWARE, which develops business software, announced an adjusted earnings per share of 87 cents against 81 cents expected for the second quarter of fiscal year.

Revenues also exceeded expectations, with 556.3 million against $ 540.4 million expected.

* AETNA – The third group American Health Insurance has reported a profit higher than expected for the third quarter due to a small number of claims.

Earnings excluding items rose to $ 1.40 per share.Analysts on average expected $ 1.15.

Net income stood at 490.4 million dollars against 497.6 million a year earlier. The turnover, however, fell 0.7% to 8.48 billion dollars.

* LAZARD – The investment bank saw its net profit fall by 2% in the third quarter versus the same period in 2010 due to lower revenue from business advisory and asset management.

Net income was $ 62.7 million, or 49 cents a share, against $ 64 million (51 cents) a year earlier.

The German Government has almost halved its growth forecast for next year, reduced to 1% against 1.8% auparavan.

After several economic research institutes, the German government has significantly revised down its growth forecast for next year, noting the slowdown in the economy under the weight of the financial crisis in Europe. Berlin now expects growth of Gross Domestic Product (GDP) by 1% in 2012, nearly half its previous estimate of 1.8%, said Wednesday sources close to the government. This forecast should be formalized Thursday by the Ministry of Economy.

The reduction comes as no surprise. Signs of a slowdown in the dynamics have increased recently. The latest business survey, the ZEW, which measures the expectations of analysts and institutional investors, reached Tuesday its lowest level since December 2008.The Ministry of Economy considered himself last week that the risks had "significantly increased" for the first European economy, strong exports. Germany suffers from weaker growth in its European partners, which absorb 60% of its exports.

The main economic research institutes predicted the country in their autumn report, which is the basis for forecasts of Berlin, a decline in GDP in the fourth quarter 2011, followed by stabilization at a low level. The export will not contribute to growth next year, they warned.

Strong last year after the terrible recession of 2009, German growth has largely continued this year and should reach 2.9%, putting Germany in the forefront of Europe.

German manufacturers of cars, machine tools and chemicals filled their order books since last year, and "the companies still much to do to fulfill their orders," Analysis Carsten Brzeski, economist at ING, "this time, they are much better prepared to face a crisis of Lehman type ". The recession following the collapse of U.S. investment bank in 2008 had occurred in a phase of over-capacity of German industry, breaking net momentum.

In the area of ​​machine tools, high of about one million employees and a major exporter, the production growth should slow markedly course next year, warned Tuesday the federation VDMA, but at 4%, remain fully is honorable.

The sequence of events for the German economy, that is "an anchor of stability and growth in Europe" in the words of its Minister of Economy, will very much depend on the outcome of the debt crisis.

EU leaders promise solutions in the coming weeks, and the business press them to do so. But if the remedies proposed were not sufficient to stem the crisis, "the German economy would be penalized more than expected, and would fall into recession," predicted institutes last week. The export collapse, consumer confidence, yet relatively untouched because of a strong labor market, would be reached, and the banking crisis handicap investment, according to worst-case scenario.

Total discovered gas and oil off the coast of Norway, announced Thursday the Norwegian Petroleum Directorate.

According to preliminary estimates, this discovery is to be between 19 million and 101 million barrels.

The discovery was made in the Norwegian Sea, about 8 miles west of the oil and gas Norn.

"The development of this discovery will be considered in conjunction with other deposits in the region," said the Norwegian Petroleum Directorate said in a statement.

To dig the well that led to this discovery, Total was allied with Norway's Statoil, authorities said.

Belgium, Luxembourg and France came Thursday to the heart of the negotiations on their respective participation in the rescue of a new Franco-Belgian bank Dexia, expected to lead discussions in a few days to a dismantling of the group ordered.

The Belgian government has warned Paris that Belgium did not intend to bear alone the financial burden of the rescue of the old world leader in financing local authorities, the first victim of the banking crisis of sovereign debt in the eurozone.

"It is clear that a very sensitive and crucial element in the negotiations, it is fair burden sharing," said Yves Leterme, Belgian Prime Minister in charge of current affairs, radio RTL.

If he declined to go into details of the negotiations, he recalled the nature "systemic" Dexia for the banking system.

His finance minister Didier Reynders also stressed the need for a balanced sharing of effort."Yes, we do not want to be alone with the whole group on our hands," he told reporters before a meeting of a small cabinet in Brussels.

"Do not forget that not only support the Belgian bank but it must continue to fund all the past, and we will not do it alone," said Didier Reynders, stating that it would begin negotiations with France after obtaining a government mandate.

In France, neither the Ministry of Finance or the Treasury or the Bank of France was immediately available to comment on the progress of negotiations on Dexia, whose board of directors to be held Saturday .

REDEMPTION FOR DEXIA BIL

Luxembourg has for its part that it was negotiating the acquisition of the Luxembourg subsidiary of Dexia, Dexia Banque Internationale à Luxembourg, with the help of an international investor.

The Minister of Finance of the Grand Duchy, Luc Frieden, said that negotiations on the resumption of Dexia BIL were in an advanced stage and could be finalized before the end of October, without specifying the identity of the investor.

With the statements of the Luxembourg authorities, the Dexia has suddenly turned down.

At 13:00, the action gave up 0.90% to 11.66 euros after

open up like other European banking shares.The European banking index progressed by 3.2%.

"This should generate a capital gain, which is positive.However, Dexia BIL is certainly rich in deposits, the sale of the blow will not ease the problems of financing the group, "said one trader in Paris.

The rescue plan could weigh on public finances of France and Belgium, already undermined by the crisis, and trigger negative reactions in public opinion.

The scenario being considered involves a backing of the main activities of Dexia in France at the Caisse des Depots (CDC) and the Postal Bank.

In Belgium, the plan could be realized by a partial nationalization of the retail or split it into a separately listed entity.

For the rest of the group, a "bad bank" would be set up to manage a large bond portfolio and an asset disposal program would be launched.

France and Belgium must commit to provide guarantees for the financing of the bond portfolio.

The New York Stock Exchange ended down 1.61% Wednesday, the Dow Jones industrial yielding 30 179.79 points to 11,010.90.

The S & P-500, wider, lost 24.32 points, or 2.07%, to 1151.06. The Nasdaq Composite fell on its side of 55.25 points (-2.17%) to 2491.58.

It would be more optimistic. But this week, what looked like vile premonitions markets began to be realized. Back to the bad news that destabilized the stock markets. A trader at the New York Stock Exchange, September 22, 2011. The Fed and the IMF say they fear a recession

If grants are all black is that they painted a very grim future. The IMF had laid the groundwork earlier this week by revising down its forecast strong global growth, and considering the "worst case scenario", a recession in major developed countries that would eventually weigh on emerging markets.While the IMF does not make his case a priority – rather table it is growing very soft, the risk has become more consistency Wednesday with what the Fed's emphasis on "continuing weakness" of the labor market United States and the "significant risks" associated with "pressure on global financial markets." This pessimism was immediately stunned the markets. And the more they learned that private sector activity in the euro area was recorded in September, its first decline in two years. And that manufacturing activity had declined in China. If even the Middle Kingdom began to fail …

The failure of Greece is similar

Athens is back to the wall. For the loan of 8 billion euros of its creditors and avoid failure in October, Greece has agreed to a new "social massacre" which includes a tax on income from 416 euros per month.Moreover, the second aid plan in advance of July 21 at idle. Europe seems unable to speed up, as shown by the peak in Poland last weekend. And despite the talk of intentions, the scenario of the failure seems inevitable. Greek media have raised the idea on Friday the government to cancel 50% of the debt. Which would lead to a loss of 25 billion euros for Greek banks, most of which have just been degraded by Moody's. The announcement was immediately denied by the government. Until when?

Standard & Poors downgraded the debt rating Italian

This is a first for the boot, Standard & Poor's downgraded the rating on Monday of the Italian debt. This decision did not sway the markets, which expected, but investors fear the domino effect.Growth prospects of the country are particularly likely to be sealed by the new austerity plan of 54.2 billion euros. In turn, Moody's announced that it would degrade Italy "in the coming months." Rome is not the only "lame duck" of Europe. Portugal, already qualified for a loan of 78 billion euros, is in trouble after the discovery of an undeclared debt 1, 68 billion euros. As for Slovenia, she saw the note be degraded by Moody's on Friday. Only Ireland, recovering, doing well with the announcement Thursday of a 1.6% growth in the second quarter. Rare enough to be highlighted …

Brussels acknowledges the need to recapitalize banks

After weeks of procrastination, public authorities have come to settle international: Some European banks will be recapitalized.After Christine Lagarde, who launched the attack late August, the EU has abdicated this week. The IMF, which recommends that banks can recapitalize directly from EFSF, it is estimated that 300 million bill from the Greek crisis for the banking sector. According to the British press, 16 banks have failed those tests fail to stress – be in the viewfinder of EBA (EBA). But the French, who are yet in the heart of stock market panic, would not be affected. Such as Germany and Spain, France is reluctant to inject new funds to banks on the pretext that they are not facing a crisis of solvency but liquidity. If, as apprehensive markets, Greece is lacking, and that Italy and Portugal a restructuring of their debt, they will not escape.

The United States deplored the European fiscal discipline

The more one goes into the crisis and is more visible: the states are powerless to solve the problems because they are unable to agree. For weeks, markets expect strong political positions. Instead, the summits are linked together without any serious decision is taken. Just this week, the Ministers of Finance of the euro area have found themselves in Poland, and Washington for the opening dinner of the G20 finance. But each time, markets would have found that the more anxious. In addition to the severe lack of European governance, the divisions seem more and stronger on one side and across the Atlantic. The United States to Europe including blaming his fiscal discipline, almost incompatible with the maintenance of growth. A conundrum that nobody wants to decide.Not even the IMF, very poor matchmaker. On Thursday, Christine Lagarde has merely conceded to each other, supporting Barack Obama's plan for employment (447 billion), and commending the efforts of countries involved in the decrease of budget deficit …

Operation Twist Fed is pschitt

The markets had placed too much hope in the meeting of the Fed's Sept. 20. They had been dreaming that her boss, Ben Bernanke, went out of his hat and decisive action to support the U.S. economy. Whereby they have had the formalization of the launch of Operation Twist. This is for the Fed to exchange $ 400 billion in Treasury bonds against short-term securities with longer maturities. The objective of this hocus-pocus giant is to influence the rate of long-term interest to encourage business investment and private individuals.Problem, it is an indirect incentive does not offer assurance of effectiveness. In addition, if the technique is clever, it reveals above all the lack of leeway for the Fed can not lower its rates or already virtually zero, or purchase of new Treasury bills. In other words, after the operation Twist, the U.S. central bank is disarmed. What is worrying the markets.

American values ​​have appreciated Friday for the fifth consecutive day, on hopes that Europe finally managed to resolve its debt crisis.

Investors, however, warned that a strong back down was to be expected if no concrete solution does not materialize.

Present in Poland at the Ecofin meeting, Treasury Secretary Timothy Geithner urged European leaders to use leverage to multiply the response capacity of the fund "euro area", the EFSF, several sources reported high rank.

However, no agreement has emerged on what to do.

The Dow Jones closed up 0.66% or 75.91 points, to 11.509.09 while the S & P 500 gained 0.57% or 6.90 points at 1216.01.

The Nasdaq was awarded for its 0.58% (15.24 points) to 2622.31.

For the week, the three indices gaining 4.7%, respectively, 5.4% and 6.3%, accounting for the Nasdaq its best week since July 2009.

"Many questions remain unanswered, which means that the situation will remain fluid enough," said Mark Luschin, head of investment at Janney Montgomery Scott in Philadelphia.

"All we have to win the last five sessions may disappear."

As for values, Research in Motion, maker of the BlackBerry, has plunged 18.99% to 23.93 dollars, a day after announcing a sharp drop in quarterly profit.