Business News & Financial News

News Corp. has been beneficial in the fourth fiscal quarter thanks to strong performance of its cable networks and advertising revenue growth of its newspapers.

The media company posted a profit of 875 million, or 33 cents per share for the quarter ended June 30, against a loss of 203 million (eight cents per share) a year ago when News Corp recorded a asset impairment charge.

Turnover rose 5% to 8.11 billion dollars. The Thomson Reuters consensus I / B / E / S gave a turnover of 8.05 billion.

Action News Corp. gained 2.9% to 14.25 dollars after the close of Wall Street, in response to these results.It grew by 12% since the beginning of the year, while the S & P movies and entertainment took 8% in the same time.

Rebound in advertising revenue and lower costs led to a growth in operating income by 20% in the press in the U.S. and internationally. The operating profit of its cable division has increased 31%.

In contrast, there was decline results from the satellite television and commercial services, and loss of the digital divide, including social network MySpace.

Major European stock markets ended near their highest of the day and even down to Frankfurt and Zurich, investors remain concerned about the apparent fragility of economic recovery following the announcement of job destruction in the United States that many more 'Early in June

The Paris Bourse ended the session up 0.25% to 3348.37 points. However in the week, it sold 4.87%.

The U.S. economy has destroyed 125,000 non-agricultural jobs in June, according to Labor Department statistics, a figure slightly higher than expected.This is the first time since the beginning of the year that the U.S. economy is destroying jobs.

Moreover, following the division of Accor effective Friday, with the IPO of his ex-services division, became an independent entity called Edenred, it has jumped almost 30% compared to the reference price announced Thursday, while Accor has dropped from 4.64% to 23.53 euros.

In turn, Dana Petroleum has gained 22.34%, after being approached for a takeover, a possibility which has benefited other values in the oil or oil-related UK, as Premier Oil, Cairn Energy and Tullow Oil who gained 5.18 to 7.91%.

On the downside, Sanofi-Aventis has yielded 2.42%, according to press reports suggesting a proposed acquisition in the U.S. could reach 20 billion dollars.

The French consumer confidence deteriorated in June for the fifth consecutive month, reflecting their concerns about public finances and pensions, according to the monthly survey published by INSEE.

The summary indicator of households' opinion on the economic situation fell to -39 from a point at its lowest since May 2009.

It reached down nine points since January and the index is 21 points below its average since the inception of the survey in 1987.

"It can not be merely a melancholy passenger since the index is in sharp decline since the beginning of the year, indicating the growing concern of the French on the country's economic situation" said Alexander Law, an economist at the institute Xerfi.

The survey was conducted among about 2,000 households from May 29 to June 17 in the midst of preparing the pension reform and government announcements on fiscal consolidation but before the cons-performance of the Blue world.

Households have an opinion on virtually stable financial situation, past and future and the opportunity to make major purchases.

Renewed worries ON UNEMPLOYMENT

But they are much more pessimistic about the evolution of living standards and report renewed concerns about unemployment.

The balance of opinion regarding the future standard of living continues to decline in June (2 points from May and 19 points since January) and households think again that the standard of living past has declined (-3 points Compared with May after four months of stability).

While the number of unemployed has risen again in France in May, households are more likely to anticipate an increase in unemployment (5 points).

After falling from 8 to 89 between January 2008 and June 2009, the balance of opinion regarding the outlook for unemployment is down and has stayed at around 65 points, well above the average long period ( 33 points), INSEE said.

In contrast, households believe that past inflation has remained stable and they do not expect higher prices.

"Undoubtedly, the French consumer is in great danger," warned Alexander Law.

"Gradually, all its drivers are switched to red: the scrappage in the car was dismantled, inflation is rising and unemployment has further increased.Turning point of rigor that was initiated in the Hexagon (as elsewhere in Europe) not help matters in the case.

For Alexander Law, "we must draw a cross in 2010 in a contribution worthy of the name of consumption growth, so that this component has assured itself between 50% and 100% of the economic expansion of France for nearly a decade.

"Without additional support, GDP growth hardly reaches 1% this year, so it should be at least double that for hope to create sustainable jobs," said Alexander Law.

Next week will be loaded in statistics but the employment figures, to be published Friday, are probably those expected with more anxiety on Wall Street.

Economists expect 110,000 job losses in June, a large part due to the fact that the government has sent home half of those hired by acting for the census.

The unemployment rate is expected to 9.8% against 9,7% in May

Without a net growth of employment, the U.S. economy likely to frown, the consumer limiting his spending to the minimum necessary.Consumer spending accounts for two thirds or less of GDP.

Two other indicators, among the many to be announced, are also of interest to Wall Street: consumer confidence in June (Tuesday), scheduled withdrawal from May, and promises of real estate sales in May ( Thursday).

The latest indicators published in real estate suggests that the recovery in dock because of the expiry of measures for first-time buyers.

"The truth is that the recession is not over, either a relapse or a straight line without growth, it is anyway probably more real than all the noise around the recovery," said Carl Birkelbach (Birkelbach Investment Securities).

On the whole week, the Dow Jones lost 2.94% the S & P 500 3.65% and the Nasdaq Composite 3.74%.Since the beginning of the year, the Dow lost 2.73%, the S & P and Nasdaq 3.44% 2.01%.

HIGH VOLATILITY, NARROW FLUCTUATIONS

The agreement reached Friday morning in Congress on financial reform is also to be considered a good place for U.S. President Barack Obama urged the world to emulate the United States during the G20 summit in Toronto .

He is likely that volatility will be higher next week, fund managers adjust their portfolios at the end of the quarter.

The volumes tend to fall before long weekend of Independence Day, a factor which may in turn increase volatility.

To the extent that July 4 falls on a Sunday, the U.S. markets will be closed tomorrow.

This promise may be times tense for traders focused on technical elements that the S & P has been able to hold above its 200-day moving average during the week.Some investors believe that a movement below this threshold is a bearish signal.

For Michael Sheldon (RDM Financial Group), the margins of fluctuation of the market will probably narrow in coming weeks.

The next week also see some results of companies, Monsanto and Micron Tech among others, as a prelude to the flood of quarterly results which go off from mid-July.

As usual, Alcoa, one of the Dow 30 stocks, will open fire on July 12.

Corporate profits of the S & P are expected to increase by 26.8% in the second quarter, according to Thomson Reuters.