Wall Street remains cautious before the employment figures

After the euphoria of Wednesday, the U.S. markets continued their momentum but at a slower pace frantic Thursday. At the close, the Dow Jones ended up 0.49% at 10,320.10 points, the Nasdaq is 1.06% at 2200.01 points while the S & P gained 0.91% at 1090.10 points.

No big movements, the indices have stagnated at these levels throughout the session. Investors have also learned a pleasant surprise on the side of the job today. Entries weekly unemployment, against all expectations, declined slightly in the United States during the week to August 28, at 472 000 478 000 cons last week, according to the labor department. Economists had expected jobless claims averaged 475,000.

Other good news: the promise of real estate sales have rebounded in July.The index of sales agreements rose 5.2% compared to June, when the 79.4 economists had expected a decline of 1%. The decline in June was revised down slightly, to -2.8% against a 2.6% previously announced.

Statistics mixed

But in the meantime, investors learned that nonfarm productivity had declined much more sharply than expected in the second quarter to post its sharpest decline since the third quarter of 2006. Productivity has contracted at an annual rate of 1.8%, instead of a contraction of 0.9% initially announced. Although expectations were counting on a decline of 1.9% over the period April to June, this review again cast doubts on the markets.

Moreover, the increase in orders received by U.S. factories in July was weaker than expected.These have increased – after two consecutive months of decline – from 0.1% to 409.5 billion dollars while economists were expecting an increase of 0.3%.

"It has a low volume of trade, economic indicators rather positive, so it is easy to push the market upwards," said Scott Marcouiller, Wells Fargo Advisors. "It does not happen much on the market," said Lindsey Piegza, FTN Financial, noting the hesitation of the indices during the session. Caution is still required before the publication of the very important report on employment and unemployment in August, tomorrow, Friday, payday loans easy.

Note that on the foreign exchange market, the euro is up slightly against the dollar, but only to increase its gains amid anxiety.

Burger King flies

On the side of values, the automotive sector should stand today.The month of August has actually been the worst for U.S. auto industry since 1983. Sales declined 21% to 11.47 million vehicles. Ford Motor (0.86% to 11.71 dollars) has reported a sales decline of 11%. General Motors, which is preparing an offering of securities to reduce by nearly 61% of the state capital, reflecting a drop in its sales by 25%.

Always on the side of values, the U.S. computer giant Apple (0.74% to 252.17 U.S. dollars) has unveiled the updated version of its iPod portable should be very surrounded. The Apple brand has also significantly lowered the price of its Apple TV boxes, for playback on a television screen high definition video from a computer.

Burger King (25.08% to 23.59 dollars) has formalized its takeover by 3G Capital at a price of $ 24 per share.The total transaction is valued at four billion dollars (3.12 billion euros).

Warren Buffett has filed a formal offer to repurchase its Berkshire Hataway (+0.38% to 81.22 dollars) for the 19.9% stake it does not already own in Wesco Financial (unchanged at $ 363 ).

General Electric (0.80% to 15.13 dollars) and Westinghouse Electric might spend ten billion dollars (7.8 billion euros) in total to build two nuclear reactors in India, Financial Express reported Thursday.Citing unidentified official sources, the newspaper said the two projects are being finalized in preparation for the planned visit in November, U.S. President Barack Obama.

HP (1.20% to 39.68 dollars) announced Thursday it had raised its takeover offer for 3PAR (2.43% to 32.86 dollars) to $ 33 per share, valuing the company Storage Data to 2.4 billion dollars. In the process, Dell (1.98% to 12.36 dollars) refuses to bid and withdraw from the race.

The Paris Bourse is expected to continue its downward

The macroeconomic announcements from the U.S. weighed heavily on the Paris Stock Exchange in August. The poor sales figures for housing (the lowest since 1995) have hit the Cac 40, which has plunged Tuesday on the 3500 points with a drop of 1.75%. Return to the Green should be difficult on Wednesday. Especially as new indicators are expected in the U.S., in addition to the unemployment figures in France in July. The real estate overseas, thermometer world's largest economy, will still be in the spotlight with the publication of the FHFA index of house prices and numbers of new home sales for July. Before the opening of Wall Street, markets will also monitor the numbers of orders for durable goods last month.

This Wednesday in Asia, fears of a relapse of the new global economy have sealed the evidence.Wall Street had already set the tone with a fence net decrease of 1.32%.

As for currencies, the euro traded at 1.2638 in the morning the dollar.

Publications resume

In terms of values, many trucks will publish their results quarterly and half in this weekend.

Today before the market opens, Edenred, the old branch of prepaid services group Accor became autonomous, has reported an operating income of 155 million euros in the first six months of the year, down 7.1%. Turnover rose 3.8% to 461 million.But the group is very conservative forecasts, the growth in issuance volume yet to be affected by rising unemployment in Europe.

L'Oreal and Sperian publish their half year results after market close.

The Polish government has short listed five offers to buy the 51% stake in state power company Enea on Tuesday said the Treasury Department, without specifying the identity of Suez and GDF would candidats.EDF on ranks according to media reports. Only EDF confirmed it had made a preliminary offer.

Scor has been a change of recommendation by Fitch. The broker has raised its outlook on Tuesday its debt rating of reinsurance group to "positive" cons "stable" and kept at "A" rating from its long-term debt of the group.Fitch said the decision including the prudent investment policy conducted by SCOR and the diversification of its risks.

Auto: sales of "Big Three" climb

"The recovery is slow but it is there." On Tuesday, the director of U.S. sales of General Motors (GM), Don Johnson, was optimistic. Exited bankruptcy in July 2009, restored and relieved of some of its debts, the manufacturer claims for the month of July sales in the U.S. rose 5.4% year on year to 199,692 units. Off Hummer, Saturn and Pontiac, being closed, and Saab, sold to the Dutch Spyker, sales of the first American manufacturer reached 199,432 units, up 24.6% year on year.

In detail, the Cadillac and Buick brands saw sales increase by respectively 142% and 137%. In contrast, Chevrolet, which represents the bulk of group sales with 139,916 units sold last month rose more slowly (12% on a year). The manufacturer announced the transition of its sales jumped 22.2% on a year in China last month.

Ford, the second of the Big Three, has published sales up 5% to 166,092 units sold on American soil. This increase remains well below the 13% expected by the markets awarded the title in stock (-1.44% to 12.97%). The increase is mainly attributed to the addition of trucks (+27.4%). Sales of the Ford Focus for example, have plunged nearly 30%.

The third U.S. manufacturer, Chrysler, reported an increase in sales of the same order: 5% year on year to 93,313 units, driven by the success of the new Jeep Grand Cherokee (54%). The 2011 version of this model was launched only two weeks ago. This is the first new model since the release of the bankruptcy group in June 2009."The vehicle has good national and international journals", says sales manager, Fred Diaz.

Toyota and Honda fall

The Asian competitors are not far behind. The South Korean Hyundai and Kia in particular have seen their sales increase by 19% and 21%. Japanese ad for Nissan's share of sales up 14.6%.

By contrast, Toyota saw its shipments drop 6.8% in the United States to 169,224 units. Honda also reported performance against the trend, with a decline of 5.6% of new car registrations last month.

Reassured

Analysts said the figures show an upturn for the industry according to figures from June which had emerged down compared to May "After the June data, everyone had said that, finally, the sector was not yet out of.Now, it appears that this month was a hiccup, "has said Al Castignetti, commercial director for the Nissan brand to the U.S. market.

On July alone, the American automotive market is expected to exceed the million new vehicles sold. On an annualized basis, analysts on average expect a market to 11.4 million vehicles in July, against 11.2 million a year ago and 11.08 million in June

ALSO READ:

"GM is considering a return on the stock market this year

Novelli creates a commission on sales buoyant

Final figures will not be available before school, but this last day of summer sales, the Secretary of State for Trade Herve Novelli wished to reiterate its appreciation for this vintage 2010, one year better than the two previous Both declined. Visiting a temple Parisian trade, Galeries Lafayette on Boulevard Haussmann, the minister reiterated that the period of the balance which has just passed an average increase in turnover of between 5% and 15%.

Apart from e-tailers (Sarenza, Brandalley …) announced on Tuesday that rates of double-digit growth for the period, many professionals do not share the enthusiasm of Herve Novelli.The Federation of clothing stores (FEH) regretted that such an influx of customers from the first two weeks have calmed down a lot, accusing the floating balances, these balances traditional free-off period – established by law to modernize the economy in 2008.

"I heard here and there a number of criticisms concerning the treatment of sales", said the minister explained that the decision to introduce these additional weeks of balances had not been taken lightly and was the result of months consultation. Nevertheless, he announced the creation of a commission before 15 September 2010 to review progress on this measure for any amendments. Issue which does not entail, for now, its membership.

Echoing the complaints of his guest of the day, Philippe Houze, chief executive of Galeries Lafayette, Herve Novelli also Secretary of State for Tourism has benefited from his visit to criticize the mayor of Paris. Bertrand Delanoe has indeed refused classification of the Boulevard Haussmann department stores and in tourist areas, preventing their opening Sunday.

Extolling the benefits of overseas customers which is keen to encourage the arrival, the Minister expressed his disappointment, and denounce the importance of the shortfall caused by this decision. "We must understand the economic and tourism sector", he said, recalling that the vast majority of Parisians (70%) would not oppose the opening of large stores in the area on Sunday.

ALSO READ

"The summer sales have not recipe

And if too many killed balances balances

Sharp rise in occupational diseases in 2009

The business risk insurance professionals has released its report for the year 2009. The number of accidents has decreased by 7.5% over the previous year, with 651,000 accidents reported. The frequency of accidents fell to 36 accidents per thousand employees, is historically the lowest level. The daily Les Echos who interviewed Stephane Seiller the director of this branch of the health insurance crisis is largely responsible for this decline in the number of accidents. Unemployment and decreased activity in sectors such as construction and metallurgy – 20% of salaried workforce today against 36% in 1950 – explains in particular the improvement. Stéphane Seiller also highlights the increasing prevention efforts.

Bond 9% of occupational diseases

The report is rather more pessimistic about the illness.Despite rising unemployment, they jumped 9% -13.5% a year over the last decade – to reach 50,000 new cases. Almost all of this increase is explained by taking better account of musculoskeletal disorders (MSDs) such as tendonitis and herniated discs … which account for 80% of disease. Better recognition by the French system, but also the consequence of the transformation of labor. The tasks become more routine and stress are the main contributors to the increase in these disorders. The handling of chemicals also cause the progression of certain cancers.Social Security today conducting actions to better detect them.

ALSO READ:

Nearly three quarters of employees say they suffer at work

"Occupational diseases: MSD explode in France

"Musculoskeletal and psychological disorders leading occupational diseases

Three finalists for the ISP

Since announcing the departure of Gilles Michel DG Strategic Investment Fund (ISF), a few weeks ago, its main shareholder, the Caisse des Depots, is activated to find a replacement. Brigitte Lemercier, the headhunter mandated, would have considered up to 80 sheets grantee, including nearly half of unsolicited applications.

The Board of Directors of the ISP has agreed on a list of finalists. According to several sources, the CDC and the State will have to decide between Thierry Moulonguet, former CFO of Renault, now special advisor to Carlos Ghosn, Jean-Yves Gilet, CEO of Arcelor's stainless steel industry while Bruno Deschamps, who has just left the venture capital company 3i low rates payday advance.Until recently, the name of Jean-Dominique Comolli, former chairman of Altadis, was on that list, reduced to three names recently. If the timetable is respected, the verdict must fall next week.

Eurotunnel candidate for Folkestone-London line

According to information gathered from WanSquare bank, Jacques Gounon, Eurotunnel's Chairman, has received approval of its board of directors for the auction as part of the privatization of the high-speed London-Folkestone .

It was mandated to participate, with the support of several partners including Goldman Sachs, the redemption of an amount between 1.5 and 2 billion pounds. The terms of the auction should be known Tuesday.

The British government announced in 2009 the privatization of the railway line linking St Pancras International in London to the Channel Tunnel. Eurotunnel had declared his intention to stand.

Indeed, the design of this line is based on a technology very similar to that used for the Channel Tunnel, both in civil engineering for the rails, signage, power or control system and communication.

Corporate bonds, an alternative to shares

lefigaro.fr / jdf.com – Bonds they still remain deprived of interest to investors relative to bonds?

Eric Pictet – Ask borrowers what they think of Russian loans! The risk is never where you think it is. Investors believe that a state can not go bankrupt, but who would have thought that Russia in the late 1990s and Argentina in 2001 would have to default on their external debt, that Greece would be in big trouble. States are less likely to bankrupt the companies – there are fewer, but the consequences are serious both economically and socially.Personally, I prefer to be paid with a coupon of 8% to 9% in seven years in a fund with hundreds of companies rated BB / B buying a loan to ten years of a State debt at a rate of less than 3%.

And compared to actions?

Corporate bonds are better adapted to periods of uncertainty as shares. The capital gain is limited, but the coupon is more regular and higher than the dividend. The risk capital action is 100%. This is not the case of an obligation because the creditor has collateral. The recovery rate is about 30% to 50%. The profile of this asset class is suitable for investors who want to gradually increase their exposure to higher-paying assets, without having to expose themselves to greater risks of stock markets.

Since the beginning of the year, European equities, for example, dropped 15% while corporate bonds rose by 3.52% respectively on the segment investment grade and 5.67% on the "high yield "(bonds with a high risk, Ed). Investors fear less for the company credit for their results. If an investor were to lose money with corporate bonds in the next twelve months, it probably would mean that the shares have lost 30% of their value. Corporate bonds are much less affected than shares, for any period of recession coupled with deflation.

Emissions of corporate debt have experienced a slump in the month of May This will he continue in the second half?

In 2009, emissions have been a record 180 billion dollars.The broadcasts in May 2010 were only $ 6.9 billion as rising demand has slowed the coupon amount of emissions. However, since the beginning of the year, the total emission displays a record 117 billion dollars. These amounts do not constitute additional debt for companies but largely from the refinancing of existing programs or bank debt.

At Muzinich, you are mainly positioned on bonds rated BB / B Why?

Bonds rated BB / B, ie just below the bonds' investment grade (securities rated borrowers between AAA and BBB-, corresponding to a low risk, Ed) can be considered as an alternative to actions. In an uncertain economic environment, the coupon received (currently between 8% and 9%) is a useful cushion to better absorb the cuts.Historically, the correlation with the market share is 50% with a volatility almost twice lower. We believe that an investor in this asset class, except external shock, should get a return of 6% to 11%.

What areas of focus?

We make a detailed analysis of each issue and we select companies able to generate sufficient cash flow to repay interest and term refinance. In Europe today, we are exposed on the cable sector, environment, services and under exposed to the construction, automotive and airlines.

Aid to Greece in five questions

• What is the plan?

The total amount loaned to Greece for three years, is 110 billion euros. The International Monetary Fund will lend 30 billion, 80 billion European states. For the first year alone, the total amounts to 45 billion euros.

Countries in the euro area will lend at a rate of about 5%, well above that at which they borrow their own markets. They must therefore, ultimately, make money with this operation. Assuming that Greece will repay many loans.

• Is it enough?

It is still uncertain. "The loan size is substantial and should fill most of the financial needs of Greece," say economists at BNP Paribas, which predict a total requirement of about 120 billion euros.Rumors from the German Ministry of Budget, Greece would need more than 150 billion euros.

Still, the plan means, Athens will not return to tap capital markets before the first quarter of 2012, according to the Greek Finance Minister George Papaconstantinou.

But everything depends on the success-or failure of the austerity plan set up by Athens. If public spending is poorly controlled, then the budget deficit will fly, Greece will take over, the debt will increase. The deficit will worsen if the recovery is also softer than expected. So the rescue plan would prove insufficient.

• When will funds be disbursed?

It was one of the obsessions of the markets before the official announcement of the plan. Greece was indeed an urgent need for funds: it must find eight billion euros by May 19It should eventually find them without worries thanks to the quick release of the aid by major contributors that are notably France and Germany.

Many states have approved the plan this week (or are about to do), such as Belgium, Portugal, the Netherlands, Italy, Cyprus, Luxembourg and Austria. France has voted the text on the night of Thursday to Friday. The outcome of the vote is no doubt right and left supporting the rescue plan. In Germany, after much wrangling, the plan should also be voted on Friday.

Italy, part of major contributors, will decide the payment by decree and may publish it immediately if needed. Same in Spain.• • •

• • • Other States show less eagerness, such as Slovakia, who refuses, or Ireland, Finland and Slovenia.

• Is it risky to lend to states in Greece?

to believe the rating agency Standard & Poor's, the most severe, Greece 23.08% of risk of default within three years. This is reflected in its 'BB +' rating assigned to it by the agency.

But "if European countries lend to Athens is that they do not believe the risk of default," said Jesus Castillo, an economist at Natixis. The European Central Bank, as the International Monetary Fund believes that a default is "beyond question".

However, "if repayment problems appeared after three years, the loans could be extended," said during the debates in the National Assembly Chairman of the Finance Committee Jerome Cahuzac.to believe the MP, who auditioned Budget Minister Francois Baroin, the latter "has not ruled out a rescheduling of Greece against the eurozone countries since it was envisaged that such debt is not repaid at maturity of three years, but later ".

• How a State debt can borrow to lend to another debt?

Spain and Portugal, being attacked by the markets and in financial difficulty, will lend to Greece respectively 9.79 billion and 2.06 billion euros.

Not to worry, according to Jesus Castillo, "they always have access to the market to finance", in contrast to Greece. Spain has also successfully raised 2.345 billion euros on Thursday at an average rate of 3.532%. Although lower than that at which it will lend to Greece.The Greek operation should be profitable for both countries of the Iberian Peninsula.

On the other hand, the loan granted to Greece will not fill the deficit under Maastricht. For France, the loan will weigh initially 3 billion euros over the budget deficit, it will not affect the deficit calculated by Brussels, by Representative Charles de Courson related remarks Bercy.

The debate on financial reform will begin

The Republican senators voted to open discussions with the chamber after blocking the debate for three consecutive days. Financial reform desired by the U.S. President Barack Obama and intended to prevent another financial crisis, would be the most important sector since the Great Depression. The Democrats want more regulations on stock markets and restrictions on derivatives, widely criticized for the crisis. The tougher regulatory worries Republicans.

Barack Obama gave a speech yesterday in Illinois calling for implementation of the reform loan cash advance no fax.The discussion should begin today and could last at least two weeks.

Symbolic of this financial speculators, Goldman Sachs is seeking a way out of his side after his questioning by U.S. regulators. The investment bank is in talks with one of his clients to agree on compensation due to losses on receivables-backed debt, in the heart of the controversy is the establishment.

ALSO READ:

The financial reform blocked U.S.

"Obama criticizes Wall Street and defends his reform