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.

The October contract on the U.S. light crude ended down $ 2.78, or 3.72%, to $ 71.92 a barrel on the New York Mercantile Exchange.

At the time of closing in New York, a barrel of Brent crude fell by $ 2.11, or 2.75%, to 74.49 dollars.

Throughout the month, a barrel of crude oil shows a decline of 7.03 dollars, or 8.9%, the largest decline in percentage terms since May

Oil prices are hurt by concerns about slowing growth, weak demand and rising inventories.

"The volatility associated with the end of the month has lowered future today," said Mark Waggoner of Excel Futures.

Traders now await the figures of the American Institute of Petroleum on a weekly inventory in the U.S. that must be disclosed in the evening.

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.

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 small vehicles, built on the platform of its Japanese partner Nissan, launched in 2012, he said on the sidelines of a conference on the automobile.

He said that the cars in question are sold under the Renault brand at a competitive price.

The Renault-Nissan is also working with the specialist Indian two-wheeler Bajaj Auto to build a low-cost car to be launched by end 2012.

Marc Nassif has also said he set the objective of selling 75.000 vehicles in India in 2013.

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 PMI services, calculated on the basis of responses from purchasing managers of nearly 2,000 firms in the euro area fell slightly to 55.6 against 55.8 last month, but it is slightly better that 'expected as economists polled by Reuters had expected the average to 55.5.

It is over for the twelfth consecutive month the 50 between expansion and contraction of activity.

If growth slows, firms in the services sector, dominant in the 16 countries using the euro as their currency, appear rather more optimistic about the future, the business expectations index falling up to 68 1 after 66.5 in July.

"The recovery still has some momentum but we will witness a slowdown from the exceptional figures observed in the second quarter," warns Rob Dobson of Markit.

France and Germany, the two largest economies in the euro area, strongly rebounded in the second quarter, but this trend was not found in Spain and Italy.

"THE TAKEOVER COULD BEGIN TO SLOW DOWN"

Activity in the industrial sector has also slowed.The PMI manufacturing index is indeed stood at 55.0 in the first estimate in August against 56.7 in July, while economists polled by Reuters had expected 56.2.

The sub-index of production rose from 58.7 in July to 57.2 in August.

The composite index combines the two sectors, fell to 56.1 against 56.4 expected and 56.7 in July.

"The PMI decline in August in the euro area is a sign that the recovery could begin to slow," said Jennifer McKeown of Capital Economics.

"The decline was mainly driven by declines in the index of the manufacturing sector, particularly in Germany, suggesting that the weakening global demand could affect the resumption of exports, as was feared."

If companies continue to recruit, the pace of hiring slowed slightly from July, as the index of employment in manufacturing rose from 51.1 last month to 51.0 in August.

Economic growth in the euro zone came out at 1.0% in the second quarter, more than expected, but it should slow to 0.4% for the period July to September and 0.3% for the three months year.

ADDICTION TO GERMANY AND FRANCE

Especially, the growth differences between countries in the region have increased compared to previous periods.

"We note that (growth) is highly concentrated in the major nations, it has not extended to other peripheral nations and, in many respects, this gap is widening," said Rob Dobson.

"It's the same as in the second quarter, which saw a solid growth, particularly in Germany and to a lesser extent in France, marking a certain imbalance in relation to performance rather mixed for the Spain, Italy and Greece.So, apart from the two main countries, the situation is average. "

The PMI flash Germany show an acceleration of activity in services and a slowdown in the manufacturing sector, quite contrary to that exhibited by France.

In the euro area, the sub-index of producer prices reached its highest level since October 2008, at 50.3 against 49.4 in July. It is only the second time since October 2008 this indicator appears above 50.

This suggests that companies are now able to pass some of their higher costs to their customers.

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.

The world leader in environmental services has estimated that an operational perspective, the second half might look like in the second quarter, during which the situation has improved for his work "clean".

"The economic recovery is still extremely fragile, it is difficult to decide on the level of commodity prices (…), nor even on the level of volumes we observe in the final months of year.That is why we prefer to be cautious, however, said its chief financial officer, Pierre-François Riolacci, during a conference call.

"In activity cleanliness, it is true that we have observed a reversal between the first and second quarters," he said, mentioning in particular "a tremor on the books" in France and the United States.

"We tend to say that the second half might look like in the second quarter, in which case that we would generally quite favorable."

Veolia has reiterated that it was on the full year free cash flow positive after dividends and an increase in its recurring operating income.

The group also confirmed that it was three billion euros in sales over the period 2009-2011 – from 1.3 billion achieved in 2009 and 766 million in the first half of 2010 – and was continuing the implementation of a savings program overall 250 million for 2010.

VEOLIA-TRANSDEV COULD ENTER STOCK MARKET TO 2ND HALF 2011

Pierre-Francois Riolacci said the group would "do everything to exceed" its savings target and that the transfers could exceed one billion euros this year.

In the first six months of the year, the savings program has contributed to the growth of cash flow (CFO) operational Veolia up to 132 million euros.

The Chief Financial Officer also considered that the proposed merger with Transdev in the passenger could be completed by year end or early 2011.

"The most likely scenario (from the IPO of the new entity) is the second half of 2011.This is our central scenario, "he said.

Veolia in the first half net profit group share of 374 million euros (+69.9%), an operational CFO 1,885,000 (+0.2% at constant exchange rates), operating profit of 1.125 million ( +7.9% at constant exchange rates) and a turnover of 17.177 million (-3.3% at constant exchange rates).

According to the consensus reached by the editor of Reuters, analysts on average expected a net profit of 346 million euros, an operating cash flow of 1.908 million and a turnover of 16.924 million.

Recurring operating income of Veolia appears in turn to 1.078 million euros at 30 June, an increase of 6.6%.

At 9:30, the track was down 1.84% at 21.30 euros while the CAC 40 gained 0.69%. Analysts based in London, "the weak economy continue to weigh on the figures in the second half."

The group's net financial debt stood at 16.027 million euros at June 30th against 15.127 million in late 2009, largely because of an unfavorable effect of foreign exchange of 674 million.

The second French bank by market value after BNP Paribas, says that it achieved a net profit of 1.084 million euros for the quarter ended in June, where the consensus reached by the editor of Reuters expected a general result to 732 million.

His provisions for potential loss on the credit over the period fell by 6% but the rate of decline in the cost of risk is much slower than some of its rivals, reflecting a more cautious speech of SocGen on the strength of economic recovery.

BNP Paribas and British bank HSBC, for example reported Monday in stores near their level before the crisis.

"The economic recovery that began in late 2009 confirmed, but it remains fragile," said Frederic Oudéa, CEO of Societe Generale, said in the statement.

"Especially in Europe, growth prospects remain subdued," he adds.

Penalized by the toxic assets, and author of "profit warnings" on its books of 2009, SocGen tries since the beginning of the year to convince the market of its ability to turn the page on the financial and economic crisis and the of the Kerviel affair.

The new management team led by Frederick since May 2009 Oudéa promised mid-June to double the profits of Societe Generale in two years and is targeting a net profit of six billion euros in 2012 against a target of three billion this year.

The bank is also considering acquisitions but said it does not fund them through capital increases.

Besides the new strategic plan, the results of resistance tests conducted on 91 European banks and the announcement by the Basel Committee's flexibility to draft new banking regulation has been a breath of oxygen to the action SocGen, long shunned by investors.

In the past four weeks, the title, boosted by good news on the European banking sector jumped 40%. Since the beginning of the year, however, still leaves nearly 8% and continues to underperform its benchmark Stoxx 600 European banks.