US & World News

The U.S. economy grew in the third quarter at an annualized rate of 2.0% against 1.7% in the second quarter, thanks to an improvement in household consumption, according to figures released Friday by the first estimate by the Department of trade.

Analysts and economists surveyed by Reuters had forecast a gross domestic product (GDP) up 2.0%

This figure is not high enough to call into question the assumption of a new program of monetary easing that could be decided by the Federal Reserve at its next meeting on November 2 and 3.However, in view of economic performance, the debate should be more nuanced.

"The economy is in recovery, but at a sluggish pace and it will probably help the Fed in its deliberations on Tuesday," said Hugh Johnson, chief investment officer Hugh Johnson Advisors.

These figures may provide some support to the U.S. government's mid-term election Tuesday, which looks very difficult for the Democrats.

The U.S. economy, emerging from its longest recession since the 30s, grew for the fifth consecutive quarter.However, progress is currently not sufficient to significantly reduce the unemployment rate to 9.6%.

According to economists, only a growth of 3.5% over several quarters, supported by domestic demand and strong exports, could help to lower the unemployment rate.

"Growth is still positive, but it is a bit disappointing. At this stage of recovery, one would have expected a better performance," said Scott Brown, chief economist at Raymond James & Associates.

CONSUMPTION AND STOCKS HAVE WORN THE GROWTH

Consumption, up 2.6%, its fastest pace since the fourth quarter of 2006, has broadly supported growth in the third quarter, adding 1.79 percentage points to GDP. She was in the previous quarter stood at 2.2%.However, they are more imports than domestic production, which responded to the increased demand.

Business investment grew at a rate of 9.7%, after rising by 17.2% during the second quarter of 2010. The recovery in business inventories was particularly helped sustain U.S. growth, adding 1.44 percentage points to GDP, with an increase of 115.5 billion, against an increase of 68.8 billion the previous quarter .

Excluding inventories, the U.S. economy grew only 0.6% over the quarter. On the same basis, it had increased 0.9% last quarter.

Technip reported Thursday of a rise in margins in the third quarter and raised its objectives in this area but also warned that its operations in underwater infrastructures (Subsea) should be less profitable in 2011.

The specialist oil and gas equipment for 2010 is now an operating margin Subsea about 16.5%, against more than 15% previously, and a combined operating margin Onshore / Offshore close to 6% against 5.3% previously.

Its sales target of about 5.9 to 6.1 billion euros, with sales of about 2.6 to Subsea 2.7 billion, however, remains unchanged.

For 2011, the group expects to grow its business and, at this stage on a operating margin of approximately 15% for stable and Subsea Onshore / Offshore.

Around 9:40, the title Technip declined by 0.65% to 59.89 euros while the CAC 40 progressed from 0.46%.

A Paris-based analyst said that the recovery targets for 2010 had been widely anticipated by the market and stressed that the margin guidance for 2011 in the Subsea was below the consensus, which anticipated a level above 16%.

"In terms of outlook, the dynamics of new projects has accelerated in 2010 for the oil services industry even though many of them have been deferred to 2011," said the CEO of Technip, Thierry Pilenko said in a statement .

"There is uncertainty about the schedule for awarding these projects and the competition remains strong in all our markets," he added.

BEST SEATS IN THE GULF OF MEXICO

Technip believes however that "the relative stability of oil prices and the importance of (his) clients to pursue their strategic investments are two engines of development".

"Despite initial fears, the tragic accident in the Gulf of Mexico did not have a negative impact on our business in 2010.Now, our medium-term visibility is improving in this area where several development projects in deep water seem revitalized, "he also said Thierry Pilenko.

At the end of the third quarter, Technip's backlog stood at 8.502 million euros, against 8.018 million in late 2009 and 7.541 million at the end of the third quarter of 2009.

Estimates of the group, about 19% of its backlog is expected to pass over the last three months of 2010.

Technip has been recorded in the third quarter net profit of 103.4 million euros (-4%), an EBIT of 155.7 million (-9.7%) and a turnover of 1.512 million (- 11.6%).

According to the consensus reached by the editor of Reuters, analysts on average expected earnings of 99 million euros, an EBIT of 158 million and a turnover of 1,610 million.

Current operating margin stood at 10.3%, against 10.1% in the third quarter 2009 and 9.8% expected.

On Sept. 30, net cash Technip was EUR 1.357 million against 1.784 million in late 2009 and 1,676,000 at September 30, 2009. Its capital stood at 2.883 million, against 2.717 million at end-2009.

MEPs adopted on Tuesday by 333 votes against 221 the first part of the draft budget law of France in 2011, that revenue.

The text foresees a reduction in government deficit of 7.7% of GDP to 6.0% end 2010 end 2011, the first step in an unprecedented effort of fiscal consolidation to achieve a deficit of 3% in late 2013.

Groups UMP and the New Center voted for the Socialist, Radical and Citizen (SRC) and the Democratic and Republican Left (GDR, and Greens) voted against.

The Assembly would then begin to review the draft law on financing of Social Security (PLFSS) for 2011 and next week, the expenditure part of the budget of France.

The Senate will begin the "marathon" budget on November 18.

Following consideration of the revenue from Members, the deficit of state budget, set at 91.993 billion euros in the original text, was $ 91.620 billion, an improvement of 373 million .

The first part of the draft budget law provides, in particular to bring 5.5 to 19.6% VAT rate on offers triple play combining television, telephone and internet, which will bring $ 1.1 billion euros in state coffers.

The reduction from 50 to 25% tax credit for investment in photovoltaic systems (solar panels) and the elimination of credit overseas, were endorsed.

OF ADOPTED AMENDMENTS

Several amendments to the Finance Committee were adopted, one voted against the opinion of the Minister of Budget, Baroin, which limits the amount of severance benefits, or "golden parachutes" to twice the highest benefits departure in case of dismissal by enterprise agreements or branch.

The pensions 'cap' was limited to 30% of the amount of compensation received last fiscal year for certain corporate executives.

An amendment of the rapporteur Gilles Carrez (UMP) was adopted against the advice of the government, which reduces from 75% to 50% reduction of the solidarity tax on wealth (ISF) for investments in SMEs.

UMP two amendments have also been selected to propose removing all or part of legal aid in cases, for example, improper or dilatory procedure.

The government passed an amendment to remove the bearing from 11 to 20 euros proposed for local authorities by the Committee on Finance, the tariff for parking fines.

The minister, who recalled that this measure falls within the regulatory power and not law, said that the government conduct "rehabilitation required" the amount of such fines by decree.

"It will be 20 euros or a little less," he said recalling that these fines first class had not increased since 1986.

The Assembly was reduced from 1.5 to 0.5% rate of tax on advertising revenues of private television channels as shall have intervened the elimination of advertising during the day on France Televisions.

This rate also includes the amendment passed, was increased to 0.75% – 2% at present cons – for TV other than those broadcast by terrestrial analog, ie DTT channels.

In this first part of the budget, finally, the Assembly on Monday passed the contribution of France to the European Union budget for 2011, a levy estimated at 18.235 billion euros.

The truck manufacturer Scania announced on Monday a higher than expected increase in profit before tax for the third quarter.

The group provides, however, that its sales will grow less than expected, despite solid demand in key markets.

Taxable profit was 3.4 billion kronor (369 million), where analysts expected 2.9 billion crowns.

In the third quarter of 2009, profit before tax was established in Scania to 383 million kronor (42 million).

The title Scania folds from 3.48% to 147 kronor at 7:20 am Monday GMT.

Scania is majority owned by Germany's Volkswagen.

BSkyB reported Friday in quarterly operating profit above expectations, thanks to a number of new subscribers better than expected and a record level of sales, data that argue in favor of raising the offer from News Corp. on British TV group.

The latter was dismissed on June 15 an offer to buy the giant American media, its largest shareholder, while declaring that he would recommend a more generous proposal.

Jeremy Darroch, BSkyB's chief executive, said during a press conference that the group's activities, which is approaching its long-term goal of having 10 million subscribers by the end of the year 2010, had not been affected by the existence of the News Corp. offer.

In June, the number one pay TV in Britain had considered that the offer of 700 pence per share on the table by News Corp. for the 61% stake it did not own was insufficient.

The group then found that he was prepared to recommend an offer to over 800 pence. Given the results of the first quarter of 2010-2011, many analysts believe that News Corp. will have no choice but to resolve to move towards this level.

About 11:00 GMT, BSkyB gained 0.4% to 700 pence while the index grouping the European media was presqu'inchangé values (-0.04%).The course values the group at more than 12 billion pounds (13.5 billion euros).

BSkyB has garnered a total of 96,000 net new subscribers, while analysts polled by Reuters still waiting for 77,000, bringing the total customer base to 9.96 million.

The group posted a net adjusted operating income up 25% to 255 million pounds, against an average forecast of 235 million.

"(…) The results should not be the main driver of stock performance in the short term. We believe that an agreement (with News Corp.) will be found and we see an adjusted price at or above 800 pence per share, "noted analysts at Citigroup, purchase on value, in a research note.

AkzoNobel Thursday was cautious about the prospects of its mature markets after reporting a rise, less marked than expected, 9% of its gross operating profit (EBITDA or EBITDA).

The Dutch chemical group, the world of paintings, has announced an EBITDA (excluding items) of 574 million euros, while seven analysts polled by Reuters had expected an average of 587 million.A year ago, EBITDA was stood at 528 million.

Akzo Nobel, which manufactures coatings for laptops, mobile phones, home, planes and boats, said that the housing market and the construction industry, particularly in mature markets, remained sluggish.

The group added, however, that signs of a recovery in industrial demand, which exceeds the mere phenomenon of restocking, gave reason for hope.

"We are very optimistic about our potential (…) in high growth markets," said Hans Wijers, CEO of the group said in a statement.

The turnover of AkzoNobel has increased 13% over the third quarter.

Chemical groups have solid results in recent quarters in favor of a recovery in demand and improved margins due to cost cutting measures.

Like statements of Akzo Nobel, but experts wonder about the sustainability of this recovery.

PPG, U.S. rival Dutch will also publish its third quarter results on Thursday. Sherwin-Williams, another U.S. rival, will publish his own Tuesday.

Edenred, the former branch of prepaid services group Accor, has raised its annual target for operating profit in 2010 by announcing Tuesday an accelerated growth in the third quarter thanks to the dynamism of Latin America.

Over this period the operating revenue of the group rose 9.5% to 207 million euros.

The issue volume of prepaid titles, one of the key indicators of the sector, meanwhile, grew by 13.7% over the quarter to 3.227 million.

Given these trends, the company raised its target for annual operating 300/330 to 310/330 million despite negative currency impact expected on the South American currencies.

He said that the new official exchange rate of the Venezuelan bolivar has a negative impact of eight million euros for this result.

Moreover, the weakening of currencies in South America, expected to last quarter, should weigh up to three million euros on operating income of the latter part of the year.

CONTRAST SITUATION IN EUROPE

Edenred, which compares to the European level groups catering Sodexo and Compass Group, as well as Mastercard and Visa offers prepaid meal vouchers as well as prepaid cards and insurance company for employees.

During a conference call, Jacques Stern, Chairman and CEO of Edenred said that the trends observed by the group in the third quarter should be confirmed in the fourth.

He added that organic growth remained the priority of the group that does not mean refrained from making small acquisitions.

He stressed that the third quarter was characterized by a contrasting situation in Europe with an early stabilization of unemployment in Western Europe but continued difficulties in Eastern Europe.

In the third quarter, organic growth of operating revenue was 8.6% in France, 3.6% in Europe excluding France under a growth of 16.6% in Latin America.Increases the volume of emission were respectively 3.2%, 6.1% and 22.8%.

The first listing of Edenred occurred July 2, the title Accor subject of a separate listing. The title Edenred closed Tuesday at 15.03 euros (-0.92%), yielding a market capitalization of nearly $ 3.4 billion.

Ford plans to sharply reduce its stake in Mazda, reducing it from 11% to 3% at least, the American manufacturer trying to distance himself from his Japanese counterpart, said Saturday a source familiar with the matter.

Speaking on condition of anonymity, the source added that the brokerage house Sumitomo Corp. and other business partners Mazda had begun discussions to buy the shares offered for sale by Ford.

A final decision on the sale is expected by the end of the year, "the source said, confirming information published by the Nikkei newspaper.

Mazda and Ford have both denied an impending sale of the essential participation in the first second.

"The participation of Ford Mazda remains unchanged.Ford continues to have a close strategic relationship with Mazda and we cooperate in areas where the benefits are mutual, "said the U.S. carmaker said in a statement.

For its part, the Japanese group said through his spokesman that Mazda and Ford had "an agreement to continue their strategic alliance" and that there was "no reason to change that relationship."

In late 2008, Ford has reduced its controlling stake (33%) in Mazda to reduce it to 13%. It was later reduced to 11% in favor of a capital increase of Mazda to invest in hybrid technology in particular.

In January 2010, Mazda has separated from Ford in a joint venture in China.In March, Mazda turned to Toyota to help it develop its first hybrid.

The withdrawal of capital from Mazda has been one of the disposals made by Ford to raise cash and reduce its brand portfolio after a series of acquisitions that have proved unprofitable.

Ford has sold its Swedish brand Volvo Cars to China's Geely in August. The sale of Volvo Cars, attached to the Judgement of the Mercury brand, leaving Ford with Ford brands for mass market and Lincoln for the high end. Brands Aston Martin, Jaguar and Land Rover have been sold.

U.S. stocks ended in a disorganized Friday as investors faced a new set of contradictory.

The Dow Jones has sold 0.29% or 31.79 points at 11,062.78 points, but the Standard & Poor's 500 gained 0.2% or 2.38 points to 1176.19 points. The Nasdaq Composite Index also closed up, 1.37% or 33.39 points to 2468.77 points.

For the week, the Dow gained 0.5%, the S & P 0.9% and Nasdaq 2.8%.

As for new deemed positive, results of Google have supported the Nasdaq.

In contrast, banking stocks have suffered from concerns about the situation of foreclosures.Investors fear that the problem affects not only the profits of banks but also spread to credit markets and the economy in general.

The 50 states have opened on Wednesday a joint investigation into the practices of the mortgage industry, an initiative that could, according to some experts, threaten the recovery in home sales.

"This could be a problem at several billion dollars," said Brian Battle, Performance Trust Capital Partners home. "It could end up being a problem with the financial system as what we experienced in 2008."

Finally, investors struggled to assess what the Federal Reserve chairman.Ben Bernanke said that high unemployment and low inflation were calling for further easing of monetary policy in the United States, but its extent remained to be decided.

Values on the forehead, the KBW index of bank sold 2.37%, down for the third consecutive session. JP Morgan Chase has lost more than 4% to 37.15 dollars and Bank of America Corp. 4.9% to 11.98 dollars.

General Electric, despite rising by 28.8% quarterly profit from continuing operations, ended down more than 5% to 16.30 dollars, its turnover is below expectations emerged.

Google jumped 11.2% to 601.45 dollars.The search engine said Thursday profits and sales significantly exceeded expectations in the third quarter.

The Interactive Week Internet Index AMEX gained 1.89%.

"Google is a company that, whatever happens, do things," said Brian Battle. "But investors need to see evidence that the broader economy is growing. And we did not have it with GE."

Mattel has sold 6.46% to 22.45 dollars. Its quarterly revenue was disappointing.

Moscow is negotiating with France just for his tender on helicopter carriers and has probably reached Spain and South Korea, according to Les Echos on Thursday.

Responses to the tender for this contract estimated at 1.5 billion euros for four PCBs, including two locally manufactured under a technology transfer are expected in early November, said the business daily.

Russia wants to acquire "projection and command" (BPC) Mistral class, French-made to modernize its fleet after the deficiencies revealed by the brief Russian-Georgian conflict in summer 2008 about Ossetia South.

Citing several sources, Les Echos explain that Moscow has probably reached, in addition to France, Spain and South Korea.

The Russian Foreign Minister Sergei Lavrov reaffirmed in early September that his country was conducting negotiations "exclusive" with France on this issue.

An official of the Russian Navy, quoted by Russian news agency Interfax, said late September that Moscow had almost decided to purchase from France of helicopter-carrying ship Mistral class and the call tender was a formality.

Made by DCNS, a public company whose electronics specialist Thales Defence owns 25%, the Mistral is a multipurpose building that can carry helicopters and heavy tanks, or a thousand men.