Business News & Financial News

The slide in equity markets was confirmed in the U.S. where the indices showed pronounced declines Thursday in the wake of European stock markets and in response to the publication of an indicator credence to the claim of an economy at a standstill .

The New York Stock Exchange ended down 4.31%, the Dow Jones industrial yielding 30 512.76 points to 11,383.68 points.

The S & P-500, wider, lost 60.27 points, or -4.78% to 1200.07 points.

The Nasdaq Composite fell on its side of 136.68 points (-5.08%) to 2556.39 points.

The volatility index, sometimes called fear index, jumped 35.41%.

"There is a major correction," said Joseph Cangemi, managing director of BNY ConvergEx in New York.

The S & P 500 posted its worst performance since a meeting on February 10, 2009.

The discussions in Washington on controlling the fiscal deficit through a reduction in public spending and the publication of unemployment figures are bad to fear a new market into recession the world's largest economy.

The jobless claims in the week to July 30 fell by only 1,000 units compared to the previous week during which they had registered at 401,000 (revised from 398,000).

The remarks by the President of the European Central Bank Jean-Claude Trichet, who believes that the latest data indicate some deceleration in the pace of economic growth, have also produced a negative effect on the markets.

The fears weighing on demand had a negative first groups related to energy and raw materials.The S & P energy and materials that have plunged over 6% each.

The title General Motors sold 4.34% after publishing its results.

The action also AIG tumbled 6.34% as the group publishes its results after the close of Wall Street.

A reverse trend, the giant U.S. food Kraft Foods announced plans to split into two separate companies, while posting better than expected results and raising its forecast for 2011.

All these ads allowed under Kraft to break his fall and yield only 1.5% after jumping nearly 3% earlier in the session.

Faurecia has identified its goals Tuesday in 2011 after a first half marked by strong growth as the automotive supplier will maintain the second half through its investments outside Europe and in countries at low cost.

The specialist for exhaust systems and car seats, including the manufacturer PSA owns 57.4%, achieved a consolidated turnover of 8.15 billion euros in the first six months of the year, a up 19.4%.At constant scope and exchange rates – it has gained particular outside the specialist German automotive Plastal – the growth was 15.5%.

Faurecia's operating profit rose 57% to 340 million, giving a margin of 4.2% against 3.2% a year earlier, and net income, group share, increased by 82% to 185.8 million euros.

"With the strong growth recorded by the group in the first half and improved profitability (…), Faurecia is now a year ahead of its business plan 2010-2014 presented in June 2010," said the equipment in a statement."Growth should remain strong in the second half in all regions and medium term supported by a high level of acquisition of new programs."

In a presentation to analysts, Faurecia said to expect in 2011 a new record in terms of new contracts expected between 13 and 14 billion euros against 13.1 billion in 2010.

The group also raised to 450 million its investment objective for this year, against an initial assumption of 350 million.On behalf of the profitability and international expansion, priority is given to low cost countries, where investments will increase by 89% against 16% for countries where the cost base is higher.

Faurecia has 42 industrial projects under way, eight in Central America and the North – including five in Mexico – twelve in the European area – including nine in Eastern Europe, Russia and Turkey – and twelve in China.

ONE YEAR AHEAD OF PLAN

As part of its strategic plan in the medium term, the equipment is a turnover of 16 billion euros by 2014, driven by an expected average annual growth of 12%, 8% organic growth.Faurecia is also an operating margin of 4 to 4.5% in 2012 and then 5 to 6% in 2014.

In June 2010, he had also set a goal of doubling the share of sales outside Europe makes it to 42% within five years, against 23% in 2009.In the first half, the share of sales – excluding monoliths for catalytic converters that Faurecia bought out – carried out in Europe reached 34%.

For the year, the Group has revised upwards its target of consolidated net sales to 15.7 to 15.9 billion euros, against 14.8 to 15.3 billion expected so far, an increase from 13.8% to 15.2% compared to 2010, and refined to increase its target for operating profit to 620-650 million euros, against a previous range of 580-640 million.

"The results are in line with consensus," said JP Morgan Cazenove in a note."The forecast EBIT is revised up slightly, but remains in line with consensus, while the increase in capex reduced cash flow prospects."

Faurecia has revised down to 100 million euros its forecast net cash flow in 2011, against 200 million euros expected so far.

The action Faurecia closed Monday at the Paris Stock Exchange to 30.34 euros, giving a market capitalization of around 3.2 billion euros. Since the beginning of the year, the stock jumped 40%.

According to Bercy, the index of the quality of care in the state services has been improving by three points in the second quarter. The overall index of satisfaction of users reaches 81%. Event officials in Paris in January 2009.

The quality of public services is improving, with an index up slightly to 81% (1% compared to March 2011), as the third barometer made by the Department of Budget and released Monday. The general revision of public policies (RGPP), resulting in the non-replacement of an official two retiring, aims to improve the quality of services. To evaluate this, indicators have been established in hundreds of services and users from 3000 to measure the reception, processing of service and claims processing.

According to Bercy, the index of the quality of care in the state services has been improving by three points to 57% (against 54% in March 2011). However, it is down sharply for replies to emails within five working days to 49% (-11 points), for referral to the right service to 62% (-7) or responses to a phone call least five rings in 77% (-3). For treatment approaches, the university and employment center are good students: 61% of first vows satisfied (17%) in the direction of the university, and 95.5% (+9.5%) unemployed compensation within 15 days.

The process to obtain a passport in less than two weeks (91%) or housing assistance within 15 days (83%) increased by one point over March 2011.Eight other indicators remain stable: 77% of patients (to a target rate of 80%) are covered in less than four hours emergencies, the average response time of police in case of attack is 13 minutes, 85% of people retiring received a record of career fair.

Applications for correction to tax are satisfied, 95% a month to month and the average time for reimbursement of care leaves by social security remained stable (3.3 days per mail, 10 days for paper).

Nearly 200,000 managers should be recruited this year, up 18% year on year, but fears a slowdown in APEC in 2012. Nearly 200,000 managers should be recruited this year as APEC.

New breath of optimism on the use of frames: the number of hires will increase by 18% in 2011 compared to last year after rising 15% in 2010, with a total of almost 200,000 recruits. "The trend on the labor market framework should remain on the rise in the second half of 2011" and throughout the year, 194,600 executives could be hired, "exceeding the forecast six months ago for business," of only 181,000, said in a statement Jacky Chatelain, executive director of the APEC, the Association for the employment of executives who publishes these figures on Wednesday.

These figures confirm a good momentum already started in the first quarter of 2011, but the movement might not last.The increase in recruitment could then slow down to 8% in 2012, 5% in 2013 and 6% in 2014 before starting to decline by 1% in 2015, according to these forecasts. Recruitment would be weakened by "investment companies that should not regain the strength he had in the past," said the APEC provides an evolution "hit" of growth.

Low employment growth

The economy may "encounter headwinds" associated with "sovereign debt crisis of some European countries" and also inflationary and fiscal impact, she believes."The contours of economic growth, low employment seem to be emerging" new hires who are constrained by the willingness of companies to "restore" their productivity, "deteriorated during the crisis" of 2008 – 2009, the study said.

Finally, the year 2015 was "marked a plateau for hiring managers in a market that lacks strong enough levers," said the APEC. In addition, new legislation on retirement and the employment of seniors, as well as the economic context, would encourage more frames from position before retirement, notes the study.

EuropaCorp, the production company of Luc Besson announced Thursday a loss of 30.2 million euros for 2010-2011, mainly due to the failure of the international two items of the saga "Arthur and the Invisibles "and the costs associated with the reorganization.

The group of film production and distribution, established in 1999, table, however a return to growth "sustainable and profitable" due to the increased presence of international films and lower overhead.

"The realization of the strategic action plan allows us to renew our confidence in the goal of returning to profitability for the year 2011-2012," said Group Chief Executive Christopher Lambert in a statement.

The studio, who has produced "Taxi," "The Fifth Element" and "The Transporter", introduced in May a three-year strategic plan which should enable him to return to profit after exceptional losses Arthur saga.

"This plan led in particular to the increase in the share of recurrent and our international sales," said Christophe Lambert.

The studio recording the rise of television production, which in 2010-2011 accounted for the first time to revenue, amounting to 16 million euros, or 9% of 178.7 million euros income group.

Around 24:30, the action is up 2.85% to 3.97 euros on Thursday, bringing its market capitalization to about 80.6 million euros.The title has sold nearly 12% since the beginning of the year, after losing about 30% in 2010.

To compensate for the cessation of Libyan oil exports, the 28 IEA member countries agreed Thursday to draw 60 million barrels in strategic reserves. Panic, markets loosen. But was not the intention? Traders work on oil prices in the New York Stock Exchange

Members of the International Atomic Energy Agency (IEA), which includes industrialized countries, will draw 60 million barrels of oil in their strategic stocks to compensate for the cessation of Libyan exports, said Thursday the Director General of the Nobuo Tanaka organization. The 28 member countries of the IEA will make these volumes in the market for an initial period of 30 days, said Mr. Tanaka at a press conference in Paris. The first barrels extracted from the strategic reserves should reach the market from next week.

According to the Agency, the events in Libya have deprived the market in late May of 132 million barrels of crude oil. But the seasonal increase in demand expected this summer could exacerbate the lack of supply, she believes. Beyond the circumstances, the Agency also shows careful not to upset the "fragile recovery" of the global economy, on which the surge in prices since November poses an "unacceptable threat".

This will be the third time in the history of the IEA, created after the 1973 oil crisis, that such action is taken. The members of the organization had already put to their stockpiles after the invasion of Kuwait and Iraq in 1990 after Hurricane Katrina struck the U.S. in 2005.

Active participation of the United States

Specifically, the United States will participate in this effort by 50%, European countries for 30% and 20% for Asian countries. The U.S. Department of Energy confirmed in a separate statement that it would draw 30 million barrels in reserves, currently at a "historically high" of 727 million barrels. The United States is prepared to dig deeper into their strategic oil reserves if necessary, beyond the measures announced Thursday in coordination with member countries of the IEA, has also said a U.S. official. The amount of oil that the U.S. will put on the market 30 million barrels, accounts for "less than 5%" of its strategic stocks, noted the official to show that his country still had a wide latitude .

For his part, "France will contribute in proportion to its consumption, or 3.2 million barrels, equivalent to about 2% of French strategic stocks," he said in another statement the Minister of Energy Eric Besson .

The current collapse

Immediately investors were relieved of their positions on oil. Once this announcement, oil prices, which was already moving down sharply, in fact, have accelerated their plunge, sealed by the prospect of the arrival of a large volume of oil on the market. The courses and loose more than 8 dollars in London and close to $ 6 in New York. Around 2:10 p.m. GMT (4:10 p.m. in Paris), a barrel of Brent North Sea crude for August delivery fell 7.61 dollars in London at 106.60 dollars, after getting off a few minutes earlier to 105.72 dollars, its lowest level since May 6In New York, a barrel of "light sweet crude" (WTI) for the same term let go for his 5.02 dollars to 90.39 dollars, after touching 89.69 dollars, its lowest level since Feb. 21.

A surprise decision to lower prices?

For some this would have the sole purpose of lowering oil prices considered too high in a still fragile economy. "The IEA has totally taken by surprise investors with the decision, which is an attempt to lower prices" too high in the eyes of the consumer countries, Myrto Sokou analysis, analyst at broker Sucden.

The IEA, she believes she was forced to act because of the failure, on June 9 in Vienna, the countries of the Organization of Petroleum Exporting Countries (OPEC) to agree on an increase in their quotas production, set in January 2009 to 24,840,000 barrels per day.Recently, Saudi Arabia, however, had indicated its intention to increase production to ease tensions on the market. As a justification, Mr. Tanaka said that the IEA had been in "close contact" with Saudi Arabia and that the initiative was to "ensure the transition" to the finish on the market of Saudi barrels, and thus "avoid the risk of shortages in the short term."

French production of electricity could decrease by nearly 10% this summer in the event of a combination of a heat wave and a persistence of the current drought, said Thursday RTE (electricity transmission).

The balance between supply and demand of electricity, however, presents a risk "low" for the entire summer, the group concluded in its analysis forecast for the summer season.

"On average, lower production in the scenario 'Heatwave' is estimated at 11,300 megawatts (MW)", the equivalent of the average production of 10 nuclear reactors, said RTE.

To ensure balance between supply and demand, "it may be necessary to import up to about 6.000 MW in late September, says he, or 50% more than during the summer of 2010.

The sheer volume of imports is "compatible" with the capacity of border trade, "he assures.

The situation could be more tense if the conjunction between drought and heat waves simultaneously affected several neighboring countries of France, also explains RTE.

RTE says that "a sustained heat wave episode, characterized by temperatures above 7 degrees C at normal temperatures, would lead to both reduced production and increased consumption."

At peak daily consumption, around 13.00, a rise of one degree Celsius of temperature induces an increase in consumption of about 500 MW, which is explained by "the increasing use of appliances air conditioning and ventilation during the afternoon, "according to RTE.

With a plume of about twenty km altitude, the eruption of Grímsvötn fears of a paralysis of the European sky. This is the most active volcano in the country, with nine eruptions between 1922 and 2004, four since 1996.

If it is him, so his brother. The eruption of a volcano in Iceland caused the closure of airspace throughout the island on Sunday and fears of a paralysis of the European sky, as in April 2010. Should we prepare for the cancellation of 100 000 flights and anger than 8 million passengers?

It's not the name but Eyjafjöll Grímsvötn. Located beneath the Vatnajökull glacier in southeast Iceland, it has erupted Saturday. This is the most active volcano in the country, with nine eruptions between 1922 and 2004, four since 1996.

This eruption is the strongest in its first phase, which was recorded on the volcano since 100 years, the Icelandic authorities.It sparked a huge plume of smoke rose to an altitude of about twenty miles.

Specialists optimistic

The European organization of aviation safety Eurocontrol announced that the ash cloud would reach the north of Scotland on Tuesday and could hit western France and northern Spain on Thursday if emissions continue unabated.

But on Sunday the plume varied between 10km and 15km in height he was 10km early evening, and the eruption has decreased in intensity compared to the early hours.

To really threaten the European sky, "you have the rash currently remains as strong as the two days. Or at least the last two eruptions of this volcano, the eruption of ash did not last as long "said the meteorologist Oli Thor Arnason.

"We do not believe the eruption will also remain high more than a few days," confirmed the geophysicist Tumma Magnus Gudmundsson, University of Iceland. The rash may already be turning into eruption of lava, "but it's not confirmed yet," said Oli Thor Arnason, stressing that "more lava meant less ash.

Eruptions usually shorter and fair winds

The eruptions of Grímsvötn are generally short, for the previous four days and ten days to one before, against several weeks for Eyjafjöll in 2010.

Airport authorities Icelandic (Isavia) closed on Sunday morning the country's airspace until further notice. Iceland is on the road to some transatlantic routes, but only for flights to or from the island were canceled Sunday.

Unlike what happened during the eruption of Eyjafjöll a year ago, the winds are relatively weak and do not blow to Europe.

Sunday night, "above 20,000 feet (7,000 meters) the cloud of ash was heading north. Closer to the ground, he went south, southwest and approached Reykjavik," noted Oli Thor Arnason. According to him, however, these ashes "n'effecteront probably no way international air traffic because they are too low."

SMEs want a real bank support to grow and want their relationships with bankers are gaining fluency, La Tribune reported Tuesday, citing a survey conducted by the Ifop CGPME and the Association of Chartered Accountants on Taxation , new markets and financing.

The vast majority of CEOs surveyed (61%) consider effective in reducing delays in obtaining bank loans through a procedure for companies with fewer than 20 employees to complete their file by internet funding loans below € 25,000, writes the daily.

A new agreement allows Oseo and Siagi (mutual guarantee company crafts and outreach) to endorse the EIRL (individual entrepreneurs with limited liability) to 80% of the amount of loans up to 300,000 euros.

The survey shows that 66% Ifop leaders are sympathetic to this new device guarantees. "This measure makes sense only if banks do not claim the supplement," says The Tribune, however Bricard Agnes, President of the Bar Council of Accountants.

The Paris Bourse opened higher Wednesday, supported, like other European markets, with quarterly earnings in the United States considered solid, like those from Intel, boosting optimism in the market for European publications .

At 9:23, the CAC 40 progressed from 1.43% to 3964.38 points.

As for values, STMicroelectronics wins 4.24% to 8.24 euros and the fastest rise in the CAC 40 in favor of Intel's forecast, which aims a turnover higher than expected in the second quarter .

Peugeot recorded a gain of 3.59% to 28.145 euros after the publication of its turnover in the first quarter and confirmed its objectives, despite the announcement of Japan's impact on group results.

Other major European markets also rose, London and Frankfurt, respectively, advancing 1.37% and 1.65%. Of the European indices, the EuroStoxx 50 wins and 1.28% Eurofirst 300 is 1.12%.

The euro rose 0.57% against the greenback at 1.4418 dollar.

A barrel of U.S. light crude gained 0.77% to 109.11 dollars.