Wall Street does not go up the slope

The NYSE has attempted to initiate a mini-rebound Thursday. In vain. Economic statistics are still bad on Thursday and Valuers bank saddled the trend. Thus, the Dow Jones lost 0.56% at 12,220 points, the Nasdaq yields 0.16% to 2765 points while the S & P fold from 0.41% to 1309 points.

Yesterday, U.S. markets have taken a double slap (more than 2% losses) with first a series of bad macroeconomic indicators that raise doubts about the health of the world's largest economy. Then with Moody's decision to degrade three notches note of the Greek debt. The rating agency has cooled the financial markets had begun to hope that a solution be found to stabilize the financial situation of the country.

On Thursday, investors do not turn the page of this session was the worst recorded since August 2010.Bad numbers have fallen:

– The weekly jobless claims fell less than expected in the United States during the week to 28 May, against 422,000 428,000 (revised) the previous week, said Thursday the Department of labour.In economists on average expected 415,000 entries in unemployment.

– U.S. inventories of crude oil rose against all odds last week, said Thursday the U.S. Agency for Energy Information (EIA). Crude oil inventories rose 2.88 million barrels to 373.81 million. Economists on average had expected a decline of 1.3 million barrels [EIA / S]. The oil prices were down sharply after the announcement. Ceded $ 1.42 a barrel after a fall already marked.

On the currency side, the single currency continues to rise against the greenback. One euro is worth more than $ 1.44.For their part,

However, non-farm productivity rose more than expected in the first quarter, while unit labor costs rose slightly more than expected, according to the second estimate published Thursday by the Labor Department. Productivity, which measures hourly output per employee rose by 1.8% instead of the 1.6% increase announced in the first estimate. The market expected it to climb by 1.7% over the period from January to March.

Other bad news affecting U.S. banks this time: Goldman Sachs (-1.61%) received a subpoena from prosecutors in New York who want to learn more about its role in financial crisis.In addition Moody's "could reduce" the credit ratings of Bank of America (+0.35% to 11.28 dollars), Citigroup (+0.15% to 39.71 dollars) and Wells Fargo (+0, 28% to 27.02 dollars) on behalf of a hypothetical reduction in state support for large U.S. federal institutions in the country. The rating agency notes that the current notes of banks take account of public aid granted by the Treasury at the height of the financial crisis.

Google and China: Paper

Internet giant Google (+0.25% to 526.93 points) was monitored after the announcement of a hijacking Gmail accounts by hundreds of Chinese dissidents and American officials. While Google suggests a Haker Chinese, Beijing denounced the remarks "unacceptable."

The distributor Costco Wholesale Corporation (+0.12% to 80.31 dollars) has reported a net profit of $ 324 million in the third quarter of 2010-2011 (73 cents per share), up 6% the same period last year. Based on the number of share, earnings were 73 cents. Turnover was up 16% to $ 20.2 billion, with a jump of 12% on a comparable basis.

Limited Brands (-5.48% to 36.59 dollars) has announced a 6% increase in May same-store constant at 717 million dollars. But this figure is below expectations of analysts who had forecast an increase of 7%.

The mining equipment manufacturer Joy Global (3.07% to 88.70 dollars) has reported a profit of 34% to 162 million in the second fiscal quarter, or $ 1.52 per share. Income climbed 19% to 1.06 billion.It's better than $ 1.35 per share and $ 1 billion expected by markets. The group also revises upward its forecasts. It now expects earnings per share between $ 5.60 and 5.30 against 5.10 to 5.40 before.

WPP (-3.78% to 11.95 dollars), the leading global advertising in terms of revenue, announced Thursday an organic growth above 6% during the first four months of the year, thanks including a good performance in the United States.

Market movements in the outhouse

The lines are moving among specialists support the addiction. Fifteen months after its IPO, the third French player in specialist nursing homes and care facilities on, saw the arrival of a new shareholder in its capital. A shareholder not quite unknown in the health sector, far from it, because it is the family holding Ruggieri Batipart already shares amounting to 23.8% of Korian the second major player side sector.

In a statement, said Batipart have acquired from the BC Partners Funds 9.5% stake in Medica. For this, the holding company has spent about 72.5 million. BC Partners, who wanted to disengage from Medica via IPO in February 2010, also sold 18.6% of the group Medica Covéa (mutual insurance: MAAF, MMA, GMF, etc.)..Following the transaction, BC Partners, which had already reduced its stake in March by selling 14.6% stake, holds longer qu'environde 3% of specialist care dependency.

An opportunity to 'rare'

For this operation, Batipart take this particular situation of the round table Medica. "It is rare to have such a big business opportunity in health," says Nicolas Ruggieri, associate director of Batipart. This entry to the capital allows us to strengthen the sector, the second major strategic Batipart, with real estate. " Among the other listed companies, a withdrawal of investors with holdings as large as that of BC Patners (30.5% at the time of the introduction) is indeed unusual.Since health is seen to hold for the long-term investments are generally in the same same horizon.

Investors semblainet share this enthusiasm Thursday in the Paris Bourse, clinching the title Medica 3% in early trade, to 15.3 euros. "This is clearly a long-term investment from Batipart, says Nicolas Ruggieri." Remains to be seen what position to adopt the new entrant later and wants to eventually take over his new participation. "We do not exclude us strengthen, says Nicolas Ruggieri, but we will not do so significantly, if at night floating Medica, who at nearly 55%, is one of the major advantages of this investment" . Today, the largest shareholder Medica is the life insurance company Prédica, with 11.3% of the round.

Side Medica, little reaction on the operation."The arrival of a new shareholder, a priori known for its investment over time, can only be a good thing," confined to explain Bailet Jacques, CEO of Medica. The group should issue a statement in the morning.

ALSO READ:

A year after its introduction, Medica takes its objectives

"The boom in nursing homes

"The private retirement homes based on quality

DSK's arrest revives the debt crisis in Europe

While the Director General of the International Monetary Fund, Dominique Strauss-Kahn, was charged with attempted rape and arrested in the U.S. yesterday as investors worried about the turn that will take the debt crisis in the euro area, especially in Greece. The indictment of Dominique Strauss-Kahn ally of Prime Minister of Greece George Papandreou, arrived in effect at the worst time for Athens. The IMF chief would have had to go in Berlin on Sunday and meet Angela Merkel to discuss a possible new aid to Greece, who won the spring of 2010 using a 110 billion euros, 30 billion from the IMF.This meeting was to take place on the eve of a meeting of the Eurogroup, the Monday night and Tuesday in Brussels, with the main discussions at the agenda of the financial problems that resurface Greece for several days and plaguing the markets, concerned about the risks of bankruptcy of Greece, and the possible contagion to other countries of the euro area.

The IMF will be well represented at the meeting of the Eurogroup, the deputy general manager of operations, Nemat Shafik, who was missionnée to attend. But analysts say the IMF's support to Greece is not as steadfast as Dominique Strauss-Kahn took the reins of the institution.Thus, Eswar Prasad, an analyst at the Brookings Institution told the antenna Bloomberg: "The assumption was that as Dominique Strauss-Kahn remained at the head of the IMF, the institution has not dropped in Europe and continue to support the continent. But the departure of Dominique Strauss-Kahn casts doubt on the intentions of the IMF. "

The IMF board will meet on Monday

Immediate consequence of these doubts, the euro fell to 1.4056 dollars in Tokyo Monday morning, 1.4108 against the dollar in New York Friday night. Against the yen, the European currency eased to 113.61 yen against 113.99 yen.However, shortly after after the opening of financial centers in Europe, the single currency has regained some color, displayed a very slight increase, to 1.4131 dollar.

For its part, the IMF has tried to be reassuring, saying yesterday that he remained "fully functional and operational," after stating that John Lipsky, IMF number two, will the Interim Director General of the institution the time required. The institution must meet its board of directors on Monday to decide the fate of its president at its head.Originally scheduled yesterday the appointment was postponed, the council waiting for new developments to make its decision in this situation that observers deemed "not simple".

ALSO READ:

"DSK must be heard on Monday at 16:30 Paris time

"DSK, rise and fall of a favorite

Two heavyweights of the American Bar Association to defend DSK

The IMF considers the debt of Greece "sustainable"

"Stay there a captain to head the IMF?

Soon relocations from China to the United States

China's competitiveness is being eroded in favor of the United States. Producing in China soon will cost more than 10-15% cheaper than in the U.S. by 2015, reports a study in the Boston Consulting Group (BCG). Taking into account all costs associated with transport and storage, the Chinese advantage will be reduced to less than 10%, even completely canceled, said the U.S. consulting firm. This is mainly because of the progressive narrowing of the gap between industrial wages in both countries.

BCG how he arrives at this conclusion at odds with the traditional discourse of economists? BCG has adjusted the salary cost of the two countries based on the productivity of workers, Americans are more efficient, especially since better-trained than the Chinese. It also took into account the fact that the Chinese currency, the yuan will continue to rise against the dollar in the coming years.BCG analysts believe, after these adjustments, the wages in industrial cities like Shanghai or very dynamic Tianjin will be lower than 30% of those in the United States.

"Because of the lack of skilled labor in China, wages increase by 15% to 20% per year," said Harold Sirkin of Boston Consulting Group in a study published late last week. "We therefore expect that the net cost of labor in industry in China and the U.S. converge around 2015." Before concluding: "We will see many more" Made in USA "these five coming years. "

Americans more productive

While China sees its labor costs rise, the U.S. productivity gain in parallel.More flexible labor code, public grants and favorable agreements negotiated with unions: "Many U.S. states, like Mississippi, South Carolina or Alabama, improve their attractiveness as centers of production to lower cost," says BCG . Some big names in American industry have recently relocated their production to the United States. Caterpillar has recently announced the expansion of a factory production of hydraulic excavators in Texas. About 500 jobs will be created. Previously, NRC had repatriated in 2009 its production of ATMs in Georgia.

Large manufacturers, however, are not going to desert China so far. Goods produced in large scale and require much labor will continue to be produced in China, recognizes BCG.It must be said that the Chinese advantage in terms of cheap labor and unskilled labor remains unparalleled. A study by the U.S. Department of Labor published in April, the average hourly wage cost of a Chinese worker in 2008 represented only 4% of that of a U.S. worker. And only 3% of average wage costs practiced in the eurozone.

The executive employment rebounded with the recovery

Virtuous circle. According to the Quarterly Business Tendency note published today by the Association for the use of frameworks (APEC), the upturn in the market for the employment of executives, up 10% yoy in the first quarter, will persist throughout the year. "This should result in increased recruitment of executives between 3% and 10% on the year," welcomes APEC. More than one in two firms planning to hire at least one frame in the second quarter of 2011, or 10 points higher than last year, and 17 points more than two years ago, during an economic crisis.Levels of recruitment have found their rhythm early 2008.

Graduates or experienced managers

Almost all sectors benefit from this improvement, including industry (59% of companies in this sector have recruited at least one frame during the first three months of the year, or 12 points higher than a year ago) , engineering, R & D (86%), consulting and business services (55%) and computer services (90%). Only construction and medico-social results show lower than last year at the same time, "although the outlook remains favorable to recruit" Apec shade.

If young professionals with several years of experience are always' the prime target for recruiters, "a beautiful part will also be reserved for graduates and highly experienced executives, unloved in recent years.Hiring intentions are regarding the effect on net increase over last year: nearly one in two firms who will recruit in the second quarter and has given his chance at a fresh graduate or a manager over twenty years of experience. Be, respectively, increases of 14 and 11 points in one year.

48 applications per offer

Recruitment target mostly business executives (42%). But the improvement in the industry will also lead to increased recruitment in specialized functions of production sites and technical services such as maintenance, procurement and quality.Technical studies, especially popular in engineering and R & D progress on these six points in one year to reach one in four businesses now.

Replacement of departures (for retirement, resignation …) remains the main explanation envisaged recruitment (41% of cases). But more than a third of companies also cite the development of activity as the main reason for recruitment.

Last sign of a strengthening labor market frameworks: a job entrusted to Apec has generated, on average, 48 applications during the third quarter of 2010. Ten less in a year. Employers are more likely to report difficulties in finding suitable candidates – 61% against 55% last year – even if the trend is still to longer delays in recruitment.The share of hires still being three to six months after the publication of the offer is stable at 23%. And this especially in functions where the offerings attracts fewer candidates: computer (72% recruitment difficult), and R & D studies (68%) and industrial production (67%).

Asian stock markets into negative territory

Asian stock exchanges are again plunged into anxiety. On Tuesday, the difficulties of returning to Japan central concern of investors.

The Japanese Nuclear Safety Agency has raised Tuesday to the maximum level of 7 the nuclear accident at the plant in Fukushima on the scale of nuclear and radiological events (INES). Which is to place the same degree of seriousness that the Chernobyl disaster. Engineers at Tokyo Electric Power (TEPCO), the operator of the plant, still unable to regain control of the site, where a fire was brought under control Tuesday. TEPCO also concerned that the radioactive leaks Fukushima are finally more important than those made during the disaster in Ukraine.

Japan has also been shaken by two aftershocks of the earthquake on Tuesday. The first took place at 8:08 local time, east of Tokyo.According to the American Institute of Geophysics (USGS), the magnitude 6.4 quake occurred 77 km from the Japanese capital. The second, magnitude 6.3, occurred at 2:07 p.m. in the same prefecture of Fukushima, the central location.

The red squares invades Asia

At the Tokyo Stock Exchange, the Nikkei started the day on a sharp decline of 1.20%. He dug his losses to -1.80% in session before rebounding slightly. It finally closed on a decline of 1.69% to 9555.26 points. The broader Topix index dropped 1.62% to its share at 838.51 points.

In addition to concerns about nuclear operations were penalized by the strong surge in the yen against the dollar and euro. The greenback was worth about 83.90 yen at the close of the Tokyo site, or a loss of nearly one yen in a few hours, while the European currency fell nearly one and a half yen to 120.75 yen about.Market participants are also concerned always consequences on business and the economy of Japanese earthquake of March 11.

The rest of the region followed the footsteps of Tokyo. In Hong Kong, the Hang Seng was down 1.33% while in Shanghai, the Shanghai Composite attempts an advanced 0.44%. Note that Chinese operators remain cautious while to be released Friday indcateurs major economy.

In Korea, the Kospi lost 1.26% in Australia, the S & P dropped 1.39% while in India the Sensex 0.97% loose.

Oil falls further

Side of the oil markets, the concern is gaining investors. The market is particularly concerned about the impact of high prices for black gold on the economic recovery. In morning trading, a barrel of light sweet crude for May delivery yielded 1.49 dollars to 108.43 dollars.That of Brent North Sea crude for May delivery lost 1.44 dollars to 122.54 dollars.

"The market fears that, with rising crude oil prices, demand will decline, which will affect the U.S. recovery," said Ong Yi Ling, an analyst at Phillip Futures.

Telecom: Vivendi takes full control of SFR

The negotiations have accelerated over the past week between Jean-Bernard Levy, CEO of Vivendi, and its counterpart Vittorio Colao, CEO Vodafone. The two sides finally reached an agreement Sunday to 7.75 billion euros plus the payment of a dividend of 200 million euros in the first half, Vivendi puts his hand on the 44% stake in SFR it does not already own. The transaction is expected to close in late June 2011. This sum values ​​SFR to 17.6 billion euros, or 6.2 times its EBITDA. A valuation standards-compliant transactions in the telecom sector.

With this transaction, Vivendi finally control the entire second French telecom operator who weighs 12.5 billion euros in sales and has 21 million mobile customers and 5,000,000 fixed customers."For the first time since the creation of SFR in 1987 by Generale des Eaux (Vivendi ancestor) that the second French operator has a single shareholder," said Jean-Bernard Levy, CEO of Vivendi. However, SFR and Vodafone will retain preferential trade agreements for three years. These agreements relate to roaming subscribers of SFR in France and beyond those of Vodafone when they travel to France. The agreement also covers joint management of major international clients no fax pay day loan. "Now more SFR may be present outside of France and develop new services for its customers," said Jean-Bernard Levy. However, Vodafone will not be the operator of Vivendi's holdings abroad as Morocco Telecom and GVT in Brazil. For these operations, "Vivendi will retain management," said Jean-Bernard Lévy

SFR occupies an important place in the Vivendi group.During the years of crisis in 2002 when the group collapsed under 32 billion euros of debt, he found his salvation by acquiring a majority stake in SFR from British Telecom for 4 billion euros. Thus, Vivendi could access the cash flow of its telephone subsidiary, which enabled him to honor the payment of its debt. SFR, Morocco Telecom and GVT, Vivendi telephony is clearly becoming a telecoms group. Its media activities: Canal +, Universal Music and Activision Blizzard are now a minority. However, the group intends to use the cash from SFR to strengthen it.

"Last but not negligible for Vivendi shareholders, this transaction will increase our annual profits of one billion euros, which will allow us to increase the dividend for 2012," promises Jean-Bernard Levy. The current dividend is 1.40 euro.

The economy will rebound after the earthquake

The destruction resulting from the earthquake and tsunami that struck Japan on Friday are still difficult to assess. Nevertheless, for many economists, which provide a parallel with the Kobe earthquake of 1995, the impact of the disaster on Japan's economic growth will in the medium term, positive rather than negative.

While the cost of the quake could amount to several tens of billions of dollars. In the short term, the destruction caused are enormous: infrastructure damaged production facilities at the stop, the areas impacted are placing great weight in the economy. If the worst-affected region, that of Tohoku, north-east coast, only 8% of Japanese GDP, that of Kanto, which houses including Tokyo, by contrast produces 40% of national wealth.

GDP contraction in first quarter

Besides stopping the oil refinery of Cosmo Oil Ichihara, east of Tokyo, the activity of the Japanese nuclear industry, which produces between 25% and 30% of national electricity production, is seriously compromised. Eleven of the fifty reactors are currently stalled, while an explosion in one of two plants in Fukushima, northern-eastern countries, has caused extensive damage and the evacuation of all population within a radius of 20 km.

"The temporary closure of production plants and oil refineries, and the interruption of power plants should have an impact on the country's production. GDP could result in decreased again slightly in the first quarter, "predicted the AFP and Wolfgang Leim, an economist at Commerzbank.

Growth boosted by reconstruction

In the medium term however, the Japanese economy could rebound strongly. Drawing a parallel with the Kobe earthquake in 1995, Takuji Okubo, senior economist at Societe Generale, said that reconstruction should generate an increase in activity, and the need for people to renew their property damaged boost consumption. The sectors of construction, steel and telecommunications sectors should benefit fully from the increased activity post earthquake.

"After the earthquake of 1995, Japan's GDP grew 1.9% in 1995 and 2.6% in 1996, while the average growth of the Japanese economy over this period was 1.5% .Consumption grew 2.2% between 1995 and 1996 against 1.1% on average between 1995 and 2004, "said Takuji Okubo.

Risk on debt

The Japanese bank Nomura, which also anticipates strong growth in the Japanese economy in the medium term, says his side as the stimulus state has played a key role in 1995 to revive the economy. "Immediately after the earthquake, the government passed an emergency budget which has contributed 0.3 points to GDP growth in the second quarter 1995 and 0.5 points in the third quarter. We anticipate a similar response from the authorities, "notes Peter Westaway, economist at Nomura.

The opposition conservative Japanese has already announced its support for extraordinary measures promised by the center-left government.A situation which should not, however, help improve the financial health of Japan, whose debt stood at 200% of GDP. The rating agency Standard and Poor's has also recently lowered the debt rating of Japan, considering that the country's budget deficit will remain high in coming years. But Moody's did its part Friday that the earthquake should not cause a subsequent breakdown of the score attributed to the Japanese debt.

ALSO READ:

"Earthquake: the cost will amount to tens of billions

"MINUTE BY MINUTE – Follow live the consequences of the earthquake

Renault confirms that it paid its informant

The twists in the case of alleged espionage at Renault are continuing. On Wednesday, the manufacturer, speaking through his lawyer Jean Reinhart, confirmed that he paid 250,000 euros to the anonymous informant originally denunciations internally. "We'd be in a range of about 250,000 euros," he said on Europe 1 radio mic, confirming a report in the Chained Duck. This money was given to him by an intermediary, agent of a private intelligence company, which could give them to the mysterious informant in whole or part.

According to the satirical weekly, the source would have received the money between October and December 2010 in exchange for its internal investigation. Duck shackled adds that this person is now claiming 200,000 euros 900,000 euros and still further to provide evidence of what she says. These last two figures were not confirmed by Renault.

The group's lawyer, however, added that for the first time, the builder was ready to unveil the identity of that source. "Renault did not know the identity of the informant. We asked our two security officials, who are alone to know, to deliver his name and address services investigators, "said John Reinhart.

"If injustice has been committed, there will repair"

Tuesday night, other sources claimed that a former military already become a private investigator had received a total of 100,000 euros that had been responsible for redistribution to investigators expected to work on suspicion of espionage. Heard in early 2010 by investigators from the Central Intelligence inside, Michel L, admitted being involved in this case as "biller".

These same sources alleged that the sum of 100,000 euros, "five installments from October to November 2010," passed through his hands. Part of this sum would have been sent to bank accounts in Madrid, whose holders must be identified by investigators.

Renault had originally not wanted to comment on the report of the satirical newspaper, at least not "until the investigation is not over," explained a spokesman. "We want the whole truth comes out and if injustice has been done, there will be compensation," she said just yesterday répétantles remarks by the Director General Patrick Pelata Le Figaro.

ALSO READ:

"Renault management is increasingly isolated

G20: Sino-American game on the yuan

Ben Bernanke, head of the U.S. central bank (Fed), and his Chinese counterpart, Zhou Xiaochuan, stole the spotlight at their colleagues in the euro zone, Japan and the UK ahead of the G20. The leaders of the five banks of issue most powerful nations were invited by the Banque de France to discuss "global imbalances and financial stability." The debate was reduced to a duel to the barbed among central bankers of the first two world powers.

Without ever naming China, Ben Bernanke believes that "the maintenance of currency undervalued by some countries contributes to a structure of global demand unbalanced and unsustainable." The Fed chief stigmatizes those countries with large trade surpluses sustainably.This helped to show "an excess of global savings, which spilled on the U.S. economy, providing a permissive factor in the subprime mortgage crisis, said the Fed chief.

Zhou Xiaochuan acknowledged that China needs to reorient its growth towards domestic demand. But he believes that such a paradigm shift "will necessitate a series of more than ten years, including time to set up a welfare system that encourages the Chinese to save less. As evidence of the shift of services to his country, he "announced the good news: only 10% of new loans now are moving on the sectors of manufacturing industry," he said.

A Sino-American game

The President of the People's Bank of China believes the most "structural measures as price mechanisms", namely the exchange rate of the yuan.He noted that Chinese manufacturers will not want to redirect more than 20% of their production to domestic demand, "They say that exports always relate more than the market."

Two conceptions of economic policy clash. The great American financier believes in market mechanisms. He urged the country's trade surplus' to allow their exchange rates to better reflect market fundamentals. " Chinese consumers, enriched by the reassessment of the yuan, and will buy more foreign products.

For Zhou Xiaochuan, "it seems inappropriate to link the savings rate exclusively to the exchange rate and it is also unrealistic to solve short term problems in the long term," as he explains in an article the Financial Stability Review published by the Bank of France in the G20 (G20 each central banker helped).

The Sino-American game has somewhat overshadowed the performance of the other participants, even if a real consensus has emerged on the need to reduce the imbalances. Otherwise he should fear "the use of protectionism to one or more countries", warns Mervyn King, governor of the Bank of England. Jean-Claude Trichet, ECB president, also fears that "imbalances widened again."Masaaki Shirakawa, Governor of the Bank of Japan, worries about him that "the rigidity of exchange rates of major emerging economies could impact more and more important on the global economy."

ALSO READ:

"SPECIAL REPORT: G8/G20 a challenge to Nicolas Sarkozy

"G20: China rounded corners

And if the yuan was trading as the dollar or the euro

"Currencies: calm before the storm

A G20 to reduce economic imbalances