US & World News

Wall Street ended higher Tuesday, the minutes of the last meeting of the Federal Reserve has confirmed that the central bank was preparing to flood the market liquidity to support economic recovery.

Officials of the Federal Reserve felt at their meeting last month that the fragile recovery in the United States could lead to "long time" to ease monetary policy, this report shows.

He reassured investors, who base for several weeks much of their hopes on the prospect of a new phase of quantitative easing of monetary policy.

While the meeting began in the red, the Dow Jones posted a closing gain of 10.06 points or 0.09%, to 11,020.40. The Standard & Poor's 500 took 4.45 points (+0.38%) to 1,169.77 and the Nasdaq Composite rose 15.59 points (0.65%) to 2417.92.

The S & P 500 rose by 11.3% since early September and last month's performance is one of the best made by the NYSE for 10 years.

"It seems that the Fed is approaching a new phase of quantitative easing," said Michael Sheldon, chief strategist of RDM Financial.

"The Fed has essentially put itself back on the wall in the sense that the market expects to see action in one form or another.The only question is' how much and when? "

The dollar, which progressed in early trading against a basket of six major currencies of reference, has erased its gains and gave up nearly 0.2% at the close of market shares.

NEWS OF M & A IS MOVING

Fluctuations in the greenback in recent weeks a growing influence on the evolution of the shares.

Besides the concerns about the minutes of the Fed, the decline in early trading was also driven by news reports from China confirming the higher reserve requirement imposed by Beijing to six major banks to prevent overheating economy.

The apparent approach redemptions of bonds by the central bank was subsequently promoted especially financial stocks: JPMorgan Chase (1.74%) American Express (1.58%) and Bank of America (+2 , 81%) are in the lead of the main contributions to the progress of the Dow.

In the news of mergers and acquisitions, Pfizer has won 0.52% after announcing the acquisition of King Pharmaceuticals for $ 3.6 billion in cash.

Action King jumped 39.4% to approximate the price of 14.25 dollars donated by Pfizer.

Avon Products rose 4.2% after an article in the British Daily Mail describing him as a potential target and evoking the interest of L'Oreal.

Apple has once again offered support to the Nasdaq, gaining 1.08% after raising by Barclays for its price target.

Starbucks took 4.4% after the flattering comments of several analysts on its strategy and diversification.

Intel, the world leader in semiconductors, gained 1.7% in after-hours trading after closing in response to the publication of its quarterly results. The title ended the session on a gain of 1.07%.

Industrial production in France stagnated unexpectedly in August, reflecting the slowdown and the fragile economic recovery.

Twenty-four economists surveyed by Reuters had expected an average increase of 0.3% in August, with estimates ranging from -0.5% to +1.0%.

The increase of industrial production for the month of July compared to the previous month was revised down to +0.8% against +0.9% in the first estimate.

Manufacturing output, which is to say, but excluding energy with food included, also remained stable after revised upward to 1.2% (+1.4% in the first estimate) the previous month.

"These figures highlight the fragility of economic recovery in France," said Alexander Law, chief economist at the Institute Xerfi.

During the three months to late August from the previous three months, production in manufacturing declined by 0.1% and in the entire industry by 0.3%.

"The post-crisis rebound has indeed withered and not a mere coincidence: the demand still hesitant, especially since France does not benefit as Germany's most dynamic export markets" he says.

German industrial production was registered in August was well above expectations with an increase of 1.7% from the previous month.

"The rest of August could well foreshadow a more difficult year-end for the industry," warns Nicolas Bouzou, economist Asterès analysis bureau.

"In the first half, the French industries have benefited from an exchange rate of euro / dollar less negative, the rise of the single European currency will degrade our price competitiveness outside the euro area is precisely where our export potential would be the strongest, "he adds.

The stagnation in industrial production in August, however, contrast with recent increases in exports of manufactured goods (+1.2% in value month on month in August after 1.7% in July) and the recovery in business climate indicators during the summer, "said Frédérique Cerisier, an economist at BNP Paribas.

"After the break recorded in August, the activity should start to grow in the coming months, in line with survey data which are still favorable," said she.

In level, the manufacturing output is still less than 8% below its average level of 2008 before the outbreak of the crisis, is also Frédérique Cerisier.

Wall Street has ended sharply higher Friday, closing above 11,000 points for the first time in five months, the figures below expectations of employment in the U.S. in September which reinforced expectations of a further easing of monetary policy of the Federal Reserve.

The scenario of increased use of the Fed to "quantitative easing", mainly asset purchases financial markets, supporting the equity markets for several weeks now, amid indicators sending the thesis of a slowdown recovery.

The U.S. economy has destroyed 95,000 non-farm jobs last month, the fourth consecutive month of falling employment and the unemployment rate remained unchanged at 9.6%.

"It's almost as if the market expected bad numbers to try to strengthen the case for the Fed's commitment to quantitative easing," said Scott Marcouiller, head of technical strategy for Wells Fargo Advisors.

Tempering somewhat the hopes, the Fed chairman of St Louis, James Bullard said the central bank would face difficult decisions at its next meeting in early November.

Alcoa has contributed to the increase in the overall market, gaining 5.66%, the largest gain in the Dow, after the publication of its quarterly results above consensus and comments broadly optimistic about the improving economic .

A number of aluminum in the United States has opened on a positive note the quarterly earnings season on Wall Street.

INDEX OF FEAR fell 4%

Most of the values related to agriculture have also benefited from soaring futures prices for corn and soybeans are forecast by the Ministry of Agriculture (USDA) showing that the corn crop could be well below current expectations .

The Dow Jones ended the session with a gain of 57.90 points, or 0.53% to 11,006.48 points, its first close above the symbolic threshold of 11,000 points since May 3

The Standard & Poor's 500 took 7.09 points (0.61%) to 1,165.15 points and the Nasdaq Composite rose 18.24 points (+0.77%) to 2401.91 points.The benchmark index of the Nasdaq had not finished more than 2,400 points since May 13

The CBOE volatility index, often called "fear index" fell 4% on the day.

Over the entire week, the Dow was up 1.63%, the S & P 500 and Nasdaq 1.65% from 1.31%.

The S & P construction equipment and agricultural machinery has gained 2.6% on the day.In the area, Deere & Co. has awarded 4.8% and 3.6% Agco.

The Reuters Jefferies CRB index of commodities, he, was up 2.7%, helped by the weaker dollar.

Genzyme gained 0.54% after their rejection by Sanofi-Aventis to reports that the French group has suggested that it might raise its hostile bid.

Other value for JC Penney took 2.69% after the announcement of the rise in capital, 16.5% of Pershing Capital, the activist investor William Hackmann.

Renault announced Thursday it had placed the bulk of his shares in Volvo at a price of 93 kronor, a long-awaited operation to be used first to reduce the debt of the diamond manufacturer.

The total amount of the transaction amounted to 28.2 billion kronor, an indicative amount of 3.013 billion euros, he said in a statement.

At the Bourse de Paris, Renault shares hit a nine-month high in early trading after the announcement, posting its largest gain since March 2009 in volume fed.

Around 10.45, the stock gained 6.4% to 38.8 euros.

"It'sa good deal, the group will reimburse a portion of its debt in return largely the nails and the risk attached to Renault will be reduced," said Philippe Barrier, industry analyst at Societe Generale. "The idea is to return to investment grade to borrow at better rates."

Renault remains with Fiat one of the most indebted carmakers, he says.Like his compatriot PSA, it has also been repaid a third of the public lending of three billion euros allocated to address the crisis of 2008-2009 and neither group seems to want to wait until the term of credit in 2014 to pay the balance.

"According to our estimates, the company's net debt should be reduced to 1.8 billion euros, or 'gearing' of around 9% against 27% previously," commented analyst at Nomura in a note research."The rating agencies should respond positively."

The manufacturer said Wednesday night that the transfer of securities Volvo serve to reduce a debt that the group would like to see short-term fall below three billion euros.

Renault is rated "Ba1" by Moody's and "BB" by Standard & Poor's, in category "junk" in both cases.

30 June, net debt of the automaker was 4.7 billion euros, down 1.3 billion a year.

MARGIN FOR EXPANDED TO OTHER PROJECTS

Renault sold 302,915,940 shares B Volvo, which carry less voting rights than Class A shares, to institutional investors, whose identity was not disclosed.This band represents two thirds of its holdings in the Swedish group, representing 14.9% of the capital and 3.8% of the voting rights.

Following the transaction, Renault remains shareholder in Volvo with 6.8% stake in A shares and 17.5% of voting rights.

At 93 euros, the price of the offering represents a discount of 4.2% over the last closing price of Volvo (97.05 SEK) on Wednesday.In several notes released Thursday, analysts point out that the transaction should be accretive to earnings per share in 2010, but could be dilutive in 2011 due to lower contribution to the result of Volvo, Renault

Since the publication of strong financial performance in the spring amid recovery in commercial vehicles, the truck manufacturer has seen its shares bounce back, while reviving the idea that Renault could take the opportunity to sell all or part of its participation in the Swedish group to become more interesting fare.

At the close of Wednesday's action manufacturer of heavy trucks posted a gain of 58% since the beginning of the year.

CMC-CIC questioned to date on the timing because Renault could continue to wait while the recovery of the truck market is still in its infancy.

"In the current state of affairs, it is difficult to believe that this sale is an anticipation of a bad Q3 and Q4," wrote analysts at CM-CIC in a note."However, it is possible (it allows) Renault to speed up the development of its product plan, either in the electric vehicle that could ultimately prove more costly than expected, in the conventional thermal vehicles, or more likely again, to seize an opportunity of partnership with GM capital "during the next stock market reintroduction of manufacturer in Detroit.

Renault made no secret that he would retry the American venture with General Motors, but the group's CEO, Carlos Ghosn, said last week that conditions were still not satisfied.

"That's a lot of sense because there are lots of synergies," he said at the Paris motor."But these synergies are realistic at the moment there is an appetite on both sides (…) For now, there is an appetite on one side, so it nothing happens. "

Graphic on the market performance of Renault here

Wall Street reacted strongly to the publication of a macro-economic indicator better than expected and the decision by Bank of Japan (BoJ) to relax a little more monetary policy to stimulate the economy.

The Dow Jones industrials gained 30 1.80% to 10,944.72 points. The S & P-500, wider, took 2.09% to 1160.75 points.The Nasdaq Composite Index advanced 2.36% on his side at 2399.83 points.

The S & P 500 has reached its highest closing level since May 12

The investor optimism was further reinforced by the prospect of the Federal Reserve quickly follow the lead of the Bank of Japan, Ben Bernanke, the Fed chairman, who in fact said Monday night that new asset purchases could lead to further ease the financial situation.

"Central banks around the world continue to use the tools at their disposal to further liquefy the system," noted Craig Peckham, technical analyst at Jefferies & Company.

The S & P 500 broke through the ceiling 1.150 points, which had been the top of its latest range of fluctuation in time, which could trigger a new round of increases.

Following very strong growth recorded in September by Wall Street, investors are more likely than usual to be sensitive to such technical factors.

The Bank of Japan has set the tone for the session, market participants have welcomed the decision by the BoJ to reduce interest rates to zero and create an intervention fund to buy assets.

According to the monthly survey from the Institute for Supply Management (ISM) index of service sector activity rose to 53.2 last month against 51.5 in August and 52.0 expected in average by economists and analysts Reuters.

As for values, Walgreen, First American drugstore, closed up 2.63% to 33.98 dollars after reporting an unexpected increase in sales on a comparable basis in September.

The group registered a 0.4% increase in sales at its stores open at least a year, against a decline of 1.1% proposed by analysts.

The building materials sector has been a driving force of the rising day, with an increase of 2.79%, the mining Freeport-McMoRan has increased by 4.56% to 91.21 dollars.

Opel announced Monday that its assembly plant in Antwerp was closed by the end of the year, after failing to find a buyer.

General Motors, Opel's parent company and owner of the plant, announced in January that this site, which then employed 2,600 people, would close in 2010. The U.S. automaker had then remove 8,300 jobs in a context of declining demand in Europe.

GM had said then that the plant, whose numbers have since been reduced by half could be saved if an investor was found by the end of September.

"Pursuant to our restructuring plan, we will continue production in Antwerp until the end of the year.After that, production will cease and the plant will be closed, "said Opel.

In a statement issued earlier, the union ACV-CSC Metea, wrote that GM had found that no potential investor did not meet its conditions for resuming the site.

Antwerp will be the first major European auto plant to close its doors since the cessation of activities in 2006 from the Peugeot factory in Ryton, Great Britain, and the Opel plant in Azambuja, Portugal.

Safran announced Friday a framework agreement under which it intends to acquire SNPE Energetic Materials (EMS) and its investments in subsidiaries, in a transaction which it considers an enterprise value of 296 million euros.

In a statement, the specialist aerospace, defense and security said he hoped to finalize this transaction in the first half of 2011.

Safran, who has wanted for several years to get their hands on the assets of solid propulsion SNPE, particularly used for the Ariane rocket, will also resume the 50% stake in EMS Roxel and 40% in Regulus.

A total of activities involved in the transaction generated a turnover of approximately EUR 270 million in 2009, says Safran.

The group must now obtain the necessary regulatory approvals and the assent of the Committee on investments and transfers.

Bercy had said last September 13 have signed the decree allowing the transfer of SNPE and its subsidiaries to the private sector, necessary for a possible takeover by Safran.