US & World News

The Nikkei closed up 0.57% on Friday, supported by recent U.S. macroeconomic statistics found promising, although its gains have been limited by investor caution before the announcement of monthly figures of employment in the States USA.

The Nikkei index closed at 9,114.13 points and the broader TOPIX, took 0.52% to 823.70 points.

The unexpected recovery of promises in real estate sales and falling jobless claims in the United States has reassured investors about the state of the global economic recovery and leveraged buyouts of overdrafts.

The higher growth forecast of the European Central Bank has also supported the upward movement of the market.

Groups exporters have particularly benefited from this situation. Canon and Sony have taken and 1.28% respectively and 2.39%.

However, the distributor Fast Retailing has lost 1.2% after announcing a decline in August from 9.3% of sales on a comparable basis of its Uniqlo brand.

On Friday a new conditional easing of U.S. monetary policy to a deterioration in economic conditions in the U.S., the Federal Reserve chairman, Ben Bernanke, has tried to appease the "hawks" who favor the Fed the fight against inflation, in order to rally them to his latest position.

This attitude may make it possible to Ben Bernanke to have the support of the Fed in cases of substantial worsening of the U.S. economic slowdown.

"The statistics should convince the most timid members (of the monetary policy committee of the Fed)," said Julia Coronado, senior economist at BNP Paribas.

When the Fed's annual symposium in Jackson Hole, Wyoming, Bernanke has compiled a table Friday gloomy economic outlook and reiterated the tools available to the central bank to stimulate the recovery.

The statements of the successor to Alan Greenspan, however, were more nuanced than those of the central bank on Aug. 10 after its last meeting, which had resulted in new measures to support the economy and credit.

The main decision that day, namely the resumption of redemptions of government bonds in the long term (Treasuries) without further inflate the stock of the central bank, has been widely discussed within the institution.

Some members of the Monetary Policy Committee considered that this decision would give the market the impression that the Fed was closer to a new monetary easing significant than it actually was.

ASSESSING THE RISKS OF A NEW FLEXIBILITY

Leaders of the Federal Reserve also wonder if the recent weakening of the U.S. economy is not just a slump before further acceleration of growth, instead of viewing it as a warning about the ability of growth support job creation.

Purchases of "Treasuries and have sent the wrong signal to the markets, while some criticized the swelling of the institution's balance sheet, increased by more than half since the beginning of the financial crisis in late 2008, to 2,300 billion (1,809 billion euros).

The statements by Ben Bernanke Friday were therefore able to reassure some of the skeptics.

While acknowledging the slowdown in the economy, the Fed chairman said that the conditions for a recovery in growth next year seemed satisfied.

"The president did not prepare the country to a recession" double dip ", stated Dana Saporta, Credit Suisse.

Ben Bernanke also acknowledged that it was difficult to assess the real impact of increased purchases of Treasuries and a lowering of interest rates, already extremely low, which the Fed pays banks for their cash have limited effects.

He also explained that one of the factors on which the Fed will base future decisions would be a further slowdown in inflation, already low, which increases the risks of deflation.

For some economists, the pace of recovery has slowed U.S. and statements from Ben Bernanke augur further action by the Fed in the months ahead.

"The general tone was to 'wait and see', despite showing signs of being not only that economic activity in the United States has returned below its potential growth but also to risk a further slowdown," wrote January Hatzius, an economist at Goldman Sachs in a note.

In outlining the conditions under which the Fed could decide new measures to prevent a relapse into recession, Ben Bernanke has probably facilitated the meeting a consensus around him on the FOMC.

Spanish airline Iberia has reported an operating loss Friday in weaker than expected due to higher demand for passenger transport and air freight to offset the negative impact of the ash cloud of April.

Iberia, which plans to merge with British Airways by the end of the year, said he had lost 72 million euros in the first half, against a consensus at 88 million euros.

"Aside from the expected recovery in air traffic, which has really supported these positive results was the significant improvement in yields," commented Elena Fernandez, an analyst at Ahorro Corporacion Spanish broker.

Yields of Iberia, ie the revenue generated per passenger on each mile flown, grew 7.8% in the first half.

Iberia estimated 20 million losses generated by the interruption of traffic caused by the ash cloud of April.But analysts say the real impact is not necessarily so bad.

"They could also sell tickets more expensive during this period," said Elena Fernandez.

In the second quarter alone, Iberia posted a net profit, ending six consecutive quarters of losses.

British Airways, Air France and Lufthansa said they expect to return to equilibrium at the operational level in 2010.

Title Iberia, which took 35% since the beginning of the year in the hope of a successful merger with BA, was down 0.82%) 2.550 Euros while the Spanish stock market index lost 0 27%.

The turnover of the company grew by 2.8% to 2.23 billion euros in the first six months of the year, supported by a rebound in demand for business class and air cargo, while that net losses were reduced to 21 million euros, the company continues to apply stringent cost controls.

The prediction of analysts polled by Reuters gave a turnover of 2.196 billion euros and a net loss of 41 million.

The irritation expressed Tuesday by the Japanese government to face the rise of the yen was not enough to stem the surge in the yen, which hit new highs against the dollar and euro.

Japanese Prime Minister, Naoto Kan, said he wanted to think about measures to curb the yen's appreciation, taking into account, among other factors, the result of a meeting of central bankers, reported the Jiji Press.

It did not specify which meeting he was referring but central bankers must be found from Thursday to Saturday in Jackson Hole, in the U.S. state of Wyoming.

The Japanese Minister of Finance, Yoshihiko Noda, said his side to the press that Japan would act appropriately to currency movements on the basis of statements of the G7.

Last October, members of the Group of Seven had said currency movements were erratic and excessive negative implications for economic stability and would cooperate as appropriate in this area.

NEGATIVE IMPACT ON THE ECONOMY

The Minister of Finance has used a rhetorical firmer, ensuring close look at the evolution of exchange and believing that recent developments were clearly "unfair".

"The excessive and disorderly developments of the currency could have a negative impact on the stability of the economy and financial system," he said.

The markets have nevertheless interpreted his refusal to comment on a possible intervention as a sign that Japanese authorities are not yet ready to act, pushing the dollar to a new low of 15 years against the yen at 84.34 yen on the platform EBS transaction, and the euro to a nine-year low around 106.14 yen.

"The market will test the ability of the Japanese authorities to intervene, and, unless they take an actual decision, the dollar will move towards the 80 yen.The Japanese economy will suffer greatly, because American and Asian economies slow, "said Paul Robson, currency strategist at RBS Global Banking in London.

Since the beginning of the year, the yen has appreciated by nearly 10% against the dollar, penalized by the rising concerns about the strength of the recovery in the United States.

The Japanese authorities have repeatedly tried to control this increase, fearing that a strong yen would penalize exports and could weaken a fragile economic recovery.

But traders were skeptical about a possible intervention in the markets of Tokyo, and further suggest that coordinated action with partners in the G7 seems highly unlikely.

However, an easing of monetary policy appears to be a possible scenario.

According to sources familiar with the matter, the soaring yen has slightly increased the chance until now very low, before an easing of monetary policy meeting scheduled for September 6 and 7.

But such an inflection remains far from certain because some officials of the Bank of Japan expect to have evidence proving the impact of the stronger dollar on the economy.

"The markets expect an attitude and a more determined response. But they just verbal intervention, and again," said Hiroichi Nishi, general manager of the branch shares in Nikko Cordial Securities.

The British finance minister George Osborne said on Tuesday the introduction of a tax on the assets of banks operating in the United Kingdom, while France and Germany support this measure and prepare to join, at he said.

According to Osborne, the tax on banks' balance sheets will bring the order of 2 billion pounds (2.4 billion euros) per year when it is applied completely. It is expected to set the tax rate to 0.07% with a discount of 0.04% in 2011.

Mr. Osborne, who presented his first budget since the May 6 election, noted that "the failure of banks has imposed huge costs to the rest of society", and was thus "fair" that they are contributing to the economy. "Some have argued we should wait for every G20 introduce such a tax."I think it is neither fair nor reasonable," he said.

A "fair share to reflect the risk" posed by banks

The minister said that "the French and Germans had joined the United Kingdom today by pledging to introduce a tax" on banks' assets."In a joint statement, he said, our three Governments undertake to ensure that our banks make their fair contribution to reflect the risk they pose."

Published on the website shortly after the British Treasury, the Joint Declaration of the French, British and German banking fees "covers much of the ideas raised by Paris and Berlin yesterday in a letter to Canadian Prime Minister Stephen Harper, G20 a few days in Toronto.

"In light of the agreement within the G20, that the financial sector expected to contribute immediately and substantially to pay for expenses associated with government intervention to rescue the banking system – (…) the French, British German and suggest introducing fees based on assets of banks, "said this particular statement.

"The UK tax is announced today, France will present the details of his in the upcoming budget (and) Germany has announced the general framework of a tax credit in late March and will present the bill to the summer, "recalls the text.

It ensures that those three charges "may differ from one another, to reflect economic conditions and tax systems differ from one country to another, but the level of tax take into account the need ensure an equal level of play "between countries, says he.

"The French, British and German want to see fully implement the ambitious program of financial sector reform, the G20 and they look forward to discussing these proposals further with their international partners in the G20 summit on June 24, concludes the text.

The French president Nicolas Sarkozy and German Chancellor Angela Merkel had written in the same direction on Monday Mr. Harper also requesting that consideration be put in place a tax on financial transactions.

Orange, the mobile arm of France Telecom, has begun discussions with shareholders Meditel second operator in Morocco, to acquire 40% stake in it, reported Saturday the weekly News.

The French-language magazine said that discussions between Orange and owners Meditel, CDG and FinanceCom, have reached an advanced stage.

He added that the entry of French capital Meditel could cost 650 million euros.

A senior officer Meditel declined any comment.No representative of CDG or FinanceCom was immediately available for comment.

"France Telecom confirms interest in the Moroccan market, but could not say more now," said a Reuters spokesman for France Telecom in Paris.

On the occasion of the presentation of its interim results on Thursday, the operator has reaffirmed willingness to conduct "a policy of selective acquisition primarily aimed at doubling the turnover of the group on three to five years in emerging markets (particularly in Africa and the Middle East).

Meditel, opposite the Moroccan market to the former monopoly Morocco Telecom, Vivendi is a shareholder, and INWIë owned conglomerate ONA, lost last year's two shareholders weight: Spain's Telefonica and Portugal Telecom Portugal .

Their holdings, 32.2% each, were sold to private groups and Moroccan FinanceCom CDG, a public investment holding, to just under 900 million euros.

At the time, and CDG FinanceCom had not excluded the possibility of bringing a new round of shareholder if it would increase the value of Meditel.They also considered an introduction Meditel the Casablanca Stock Exchange.

Emirates Telecommunications (Etisalat), unsuccessful candidate for the resumption of the shares of Telefonica and Portugal Telecom, has expressed interest in the Moroccan market.

The Dutch chemical group Akzo Nobel announced that it will continue to monitor its costs despite having already reached its 2011 margin target and announced quarterly results exceeded expectations.

Around 7:15 GMT, Akzo Nobel has risen by 3.33% to 45.765 euros, while the index grouping the European chemical values yielded 0.34%.

The first painting company in the world said it had reached its goal in the second quarter EBITDA margin for 2011, set at 14%.

Its earnings before interest, taxes, depreciation and amortization (EBITDA), excluding items, rose to 614 million euros, thanks to rising demand and cost reduction.

The nine analysts polled by Reuters had expected a net profit of 576 million euros. During the same period the previous year, the group had reported an EBITDA of 506 million euros.

"The developed markets remain difficult. The pressures on prices of basic materials and shortages are expected to continue in the third quarter.We will keep a watchful eye on the market environment and the costs will continue to be managed aggressively, "said Chief Executive Hans Weijers, in a statement.

The chief financial officer Keith Nichols said it expected an increase in material prices between 4% and 5% this year but it believes that the situation should start to improve from the end of the third quarter, which should not threaten margins.

Akzo Nobel said it would inform investors of his future ambitions September 28 in London.

In the second quarter, its revenue increased 13% to 3.9 billion euros, exceeding analysts' expectations which projected sales of between 3.58 and 3.8 billion euros.

U.S. rivals PPG and Sherwin-Williams also beat the consensus in the second quarter but they were cautious for the remainder of the year.

His rivals in the Benelux, DSM and Solvay, must publish their quarterly Thursday and Aug. 3, respectively.

Wall Street finished up Friday, ending the week at its largest weekly increase since the beginning of the year when the new season begins Monday results.

The Dow Jones industrial average thirty biggest U.S. has been 0.58%, 58.73 points to 10,197.72, while the S & P 500 index fund managers, has awarded 7.68 points, 0 , 72%, to 1077.93.

Supported by the announcement that Google will be able to resume its activities in China, Nasdaq, heavily weighted in technology, advanced 21.05 points, 0.97% to 2196.45.

For the week, the Dow took 5.3%, the S & P gained 5.4% and the Nasdaq was up 5%.

"Investors are putting their concerns to the background because they expect a good season of results," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco?

"But chances are that next week is volatile. The results could certainly good but the forecasts may not be."

Google announced on Friday that Chinese authorities had renewed his license, a decision that allows him to remain on the largest Internet market in the world.

The Internet portal closed up 2.39% to 467.46 dollars.

Alcoa will open Monday after closing the ball of quarterly results.Experts say the findings by the American aluminum should satisfy investors, even if the decline in metal prices has prompted analysts to revise their forecasts downward. Alcoa has been 2.05%.

A reversal of the trend, Johnson & Johnson dropped 1.37% to 60.54 dollars after announcing that it had recalled more Tylenol and prescription drugs after complaints from consumers.

Retail sales in the euro area rebounded in May after heavy fall in April, despite the credit crunch which has affected consumer confidence, show statistics released Monday by Eurostat.

Retail sales in the 16 countries adopting the single currency rose 0.2% after a decline of 0.9% the previous month (revised from -1.2%), but show an unexpected increase 0.3% over one year, after -0.5% (revised from -1.5%) recorded in April.

Economists polled by Reuters had forecast an average increase of 0.4% a month to month and a decline of 0.3% over one year.

Eurostat said that sales of food, beverages and tobacco rose 0.2% in May and 0.3% compared to last year.

For non-food products, the increase was 0.4% compared to April and 1.0% over one year.

Retail sales fell in Spain in May, their second consecutive month of decline, a trend that could jeopardize the growth of the economy in the second quarter.

This decrease of 1.9% compared to May 2009 when adjusted for seasonal variations made after the fall of 2.4% in April, said the National Institute of Statistics (INE).

This further decline is partly due to segments of the consumer electronics and power.

Retail sales in Spain had increased in March for the first time since November 2007.

The renewed weakness in consumption could undermine the government forecasts a growth in gross domestic product (GDP) in each quarter this year after recovering from recession in the first three months.

"The retail sales figure is wrong and shows that people are worried about the future. The demand is low because people increase their savings," said Mariano Alierta M & G Valores.

"There are many uncertainties and we can expect continued weakness in retail sales until the job prospects are improving."