Financial News Headlines

The number of unemployed Germans reached a new record low in October, to 6.5% of the workforce. It increases in numbers against the seasonally adjusted. An employment agency in Berlin

Unemployment has posted a new recession in Germany, in October, on a gross basis, to 6.5% of the workforce. But increased in numbers seasonally adjusted (SA), beating expectations, said Wednesday the Employment Agency. Economists polled by Dow Jones Newswires had forecast a further decline in numbers CVS, the most widely followed by economists as more representative. Overall, however, "the positive developments on the labor market continued," commented the President of the Employment Agency Frank-Juergen Weise.

China on Thursday welcomed the consensus reached in the night by Europeans around a plan to end the crisis for the euro area and expressed his support for the measures announced.

After more than ten hours of the summit, the leaders of the euro area have come in the night from Wednesday to Thursday to reach an agreement on the restructuring of the Greek debt, capacity building fund to support the euro and the recapitalization of banks.

"We hope that this consensus (…) is conducive to boosting market confidence," said the spokesman of the Chinese Ministry of Foreign Affairs during a press conference."China supports the measures taken by the EU to stem the debt crisis."

"China is willing to make joint efforts to safeguard the recovery and growth of the global economy," said the spokesman, noting, without giving details, that Beijing was ready to increase its cooperation with the EU investment, trade and finance.

Chinese President Hu Jintao is scheduled to meet Thursday afternoon by telephone with his French counterpart Nicolas Sarkozy.They will discuss in particular the next G20 summit scheduled for early November in Cannes.

Nicolas Sarkozy had announced last night that China could participate in the creation of a "special vehicle" to multiply the firepower of the European Financial Stability (EFSF), the bailout funds in the euro area.

The Spaniard David Ferrer, seeded No. 3, qualified Saturday for the final of the Shanghai Masters 1000 at the expense of his compatriot Feliciano Lopez, a score of 6-7 (5) 6-3 6-3 .

Ferrer is a first Masters title in 1000, after his failures in the final in Rome in 2010 and in Monte Carlo this year against another of his countrymen, Rafael Nadal, world number one then.

For the title, it will face the winner of Sunday's second semi-final between Britain's Andy Murray, the fourth world and winner of the tournament in Bangkok and Tokyo over the past two weeks, the Japanese Kei Nishikori, who reached for the first time this stage of the competition in an event of this category.

Three parties of the government resigned Slovak and the main opposition party have agreed to support a strengthening of the European Financial Stability Fund (EFSF), TA3 television reported Wednesday.

The leaders of three of the four parties in the coalition government had met earlier with Robert Fico, the opposition party Smer, following the rejection by members of the text EFSF reform and the resignation of the government was liable to the vote.

A new vote in Parliament to be held by no later than Friday, said Robert Fico.

The government accepted the holding of early elections in March 2012 and will remain in the opposition Smer thus far, he added.

Slovakia is the last member state of the euro area has not ratified the plan, which strengthens the powers of the EFSF to fight against the debt crisis. Ratification by each of the 17 member countries is required for its entry into force.

A spokesman of the majority party SDKU had previously indicated that a second vote in Parliament could take place as early as Thursday if an agreement was reached with Smer.

The number of Americans entering the unemployment fell to a low of five months last week, and growth figures for the second quarter were revised upward, leaving the markets expect a recession is ultimately not to fear.

The number of jobless rose to 391,000 last week, against 428,000 the one before, said Thursday the Labor Department. This figure is well above expectations, as economists on average had forecast 420,000 jobless.

The Labor Department noted, however, that its adjustments for seasonal variations may have overstated the decline in enrollment.Revised data will be published next Thursday with the first estimate figures this week.

Commerce has meanwhile announced that growth in gross domestic product (GDP) reached 1.3% in the second quarter, according to final figures.

Its previous estimate was counting on only 1.0% growth.So a return to the first estimate, which already provided 1.3% before being downgraded.

Analysts had expected an upward revision, but not as pronounced, with a final figure of 1.2%.

Consumer spending and the trade figures have finally proved better than expected.

GDP figures "suggest that the U.S. economy entered the third quarter in a position a little better.These encouraging news is reinforced by the decline more marked than expected jobless claims, which casts further doubt on the likelihood of a return to recession, "said Joe Manimbo, an analyst at Travelex Global Payments in Washington.

CAUTIOUS OPTIMISM

Political tensions between the United States the Democratic administration and the Republican side, a majority in the House of Representatives, coupled with the impact of the debt crisis in Europe, have eroded confidence and fears of a return of U.S. U.S. recession.

The cautious optimism of economists now expects a further contraction of GDP will be avoided.Production companies continue to grow because, although at a slower pace since the beginning of the recovery.

In detail, the revised figures show, in fact more of a slower growing economy as a future recession.

Export growth is better than initially estimated at 3.6% instead of 3.1%.That of imports, however, is lower at 1.4% against 1.9%.

The trade deficit is lower, and foreign trade contributed to GDP by 0.24 percentage point.

These data support Wall Street, which evolved up to 1600 GMT, while the dollar went further against the yen and the price of Treasuries retreated.

U.S. debt is regarded as a safe investment and attractive in times of uncertainty, but less coveted when the economy recovers.

All indicators are not provided to green the U.S., and the gloom is still required from contractors, according to a study by the Institute "Business Roundtable" and published on Thursday.

According to the report, the outlook for business had deteriorated for the third quarter, and the number of those planning to cut jobs over the next six months more than doubled, from 11% in the second quarter to 24%.

They are more than 65% against 87% three months ago, to provide an increase in sales and only 32% instead of 61% plan to increase their investments.

PSA Peugeot Citroën could remove up to 10% of its workforce in France against the expected slowdown of the European car market, write Friday Les Echos and La Tribune, citing union sources.

Initially, 115 jobs will be lost on a voluntary basis and 300 temporary contracts not renewed in Aulnay-sous-Bois (Seine-Saint-Denis), an assembly plant in the Citroen C3, whose future after 2014 and threatened, and 180 positions will disappear in Melun-Sénart (Seine-et-Marne), according to Les Echos.

In the longer term, nearly 10,000 temporary positions, or nearly 10% of the workforce in France, would be threatened by the first French car manufacturer, said La Tribune.

"It's far too early to tell," said a spokesman for PSA that number of temporary positions.

At the end of the Central Committee (IAC) held Thursday, the agreement on the management of jobs and skills signed in April 2010 with the unions, which ended September 30, 2011, been extended to December 31, 2012.

The group's management has identified 980 jobs to disappear, said the spokesman, adding that the downsizing of the site of Aulnay came within this framework and that the site of Melun had not been discussed at the CEC Thursday.

Last week, at the motor show in Frankfurt, the CEO of PSA, Philippe Varin, announced an acceleration of cost savings through workforce adjustments among temporary workers and contractors to address the context economic uncertainty in Europe.

Eric Besson, Minister of Industry said that we should not rush to draw conclusions on possible job cuts coming at PSA.

"Do not cry wolf when there is no wolf," he said on Canal +.

"Let them wonder about the consequences of the crisis on their future and take steps to remain competitive, surprising and shocking."

Stock markets tumbled Thursday, weighed down by the pessimistic picture of the U.S. economy compiled by the Federal Reserve of the United States and the indicator of manufacturing activity in China, which suggests that as the economy slows in the second economy world.

European shares open cuts more than 2% in the wake of Wall Street where the S & P 500 yielded 2.94% Friday. Values ​​related to the economic cycle weigh on the trend with a decline of 4.8% for the European sector of commodities.

In Paris the CAC 40 gave up 2.7% to 9.30. The pan-European FTSEurofirst 300 index lost 2.4%, while the German Dax and London FTSE down 2.8%.

In Tokyo, the Nikkei lost 2.1%.The Shanghai Composite ended down 2.8%, the percentage loss the biggest since seven weeks.

For its part, the dollar rose to a seven-month high against a basket of currencies in favor of expectations of rising interest rates in the short term as part of "Operation Twist" announced by U.S. Federal Reserve.

To come to the aid of an activity in decline, the Fed announced Wednesday it is launching a new program of $ 400 billion to increase the share of long-term securities in its portfolio of assets 2850 billion.

The central bank has warned against downside risks "significant" burden on the U.S. economy and cited "a continued weak market conditions of work".

A Reuters poll conducted after these statements shows that the primary dealers of Treasury estimate that only 15% chance that the Fed's attempt to influence long rates gives a real boost to the U.S. economy.

RISK AVERSION

The trend is also impacted by the announcement of a further contraction in September, the third in a row, the index HSBC Purchasing Managers (PMI) of China's manufacturing sector, a statistic that suggests that China can not be be not be the engine of global growth.

"These data come from China to add to the list of negative factors that everyone has in mind: the U.S. economy depressed the yen's strength against the dollar and the euro, the debt problems in Europe, the question a defect or not Greece, "Judge Koichi Ogawa, portfolio manager at Daiwa SB Investments.

The MSCI equity markets in the Asia-Pacific unscrewed 4.5%, falling to its lowest level in 14 months, while risk aversion is felt in the market for raw materials and the currencies of emerging markets.

The Brazilian real and South African rand recorded their worst daily decline since the bursting of the financial crisis in 2008.

Brent crude gave up 1.71% by 0700 GMT, while December copper fell more than 3% to 8045 dollars tonnes, the lowest since November.

In contrast, the U.S. Treasuries are up, return the paper to 10 years are even fell to a new low of 60 around 1.82%.

The yield securities declined significantly after 30 years the ads from the Fed, to 2.94%, a decrease of 6 basis points (bps) Thursday after falling 22 basis points Wednesday.

In France, just before the market opening, the PMI "flash" in the manufacturing industry has shown that the growth of private sector activity in the Hexagon in September fell to its lowest level since the beginning of the recovery in 2009, accentuated the decline in the industry while expanding services was weakening.

U.S. stocks opened higher Wednesday on hopes of resolving the debt crisis in the euro area.

In early trade, the Dow Jones gained 0.3% or 34 points, to 11,135.74 points, while the Standard & Poor's 500 advanced 0.44% or 5.18 points at 1178.05 and the Nasdaq Composite took 0.8% or 20.43 points to 2552.45 points.

The European Commission will soon propose options for the introduction of euro bonds, confirmed Wednesday the European Commission President José Manuel Barroso.

Values, Dell gained 1.9% after the announcement of a new program to repurchase shares representing five billion dollars.

Interparfums, which Tuesday reported a sharp increase in operating profitability in the first half, think revise upward its forecast for annual sales through the backlog of the new Burberry fragrance line launched this fall.

The designer perfumes under license for luxury brands like Lanvin, Van Cleef & Arpels (Richemont Group), Montblanc or Paul Smith, saw operating profit climb 21% to 26.0 million in the first half, for a record margin of 16%, against 14.3% a year earlier.

The company had already published its sales in late July, marked by a sharp slowdown in the second quarter due to lower sales of old lines of Burberry.

"The current order book of Burberry Body prompted us to significantly strengthen our media budgets on the end of the year, which should lead us to revise upwards our goal of annual sales," says CEO of the company, Philippe Benacin, said in a statement.

Interparfums had said in late July to build on annual sales of 350 million euros, after 306 million in 2010, with the launch of new fragrance called Burberry "Burberry Body".

This launch is crucial for Interparfums which carries more than half of its sales with the Tartan brand, generate significant advertising spending will weigh on profitability in the second half.

The stakes are high for Interparfums because the English brand of ready-to-wear, famous for its trench coats, intends to change the dimension in fragrance with a line she has high expectations.

Burberry has also, until the end of the year, an option to buy back its license, an event previously considered unlikely by management of Interparfums.

The company pursues a strategy of diversification, however, thanks to new licensing agreements signed with Jimmy Choo, Boucheron and Balmain, which allows him to ease the burden of Burberry in its turnover.

Net income rose 33% to 17 million euros.

European shares rebounded Tuesday morning after diving the two previous meetings, pending the opening of Wall Street following the long weekend of Labor Day.

Investors also await the publication in the afternoon of the ISM services in the United States.

Around 10:00, the CAC 40 index contains 0.9% to 3027 points, after seeing fluctuated in both directions and tested, as before, the threshold of 3000 points. The benchmark index of the Paris stock exchange has dropped over 8% in two sessions.

"There was an overreaction, perhaps related to the closure of Wall Street.Today, there is a small spring effect, but the session will begin only with the opening of New York and the ISM, "said David Thebault, head of quantitative trading at Global Equities.

Other major European markets will also describe: London is 0.84% ​​and 0.58% Frankfurt. Of the European indices, the EuroStoxx 50 wins 0.7% and 0.7% Eurofirst 300.

Fears of a deepening crisis of debt in the euro area and its impact on the banking system, however, continue to weigh, especially financial stocks.

The Stoxx banks index remains at its lowest in 2009, around 130 points.In Paris, Crédit Agricole lost 1.7% and still Natixis 1.5%.

Gold is sought and is trading at 1873 dollars, after hitting a new record in 1920 dollars and the performance of the German government bond (Bund) 10 years back a little to 1.86%.

The euro recovers against the U.S. dollar, treating around 1.42 dollars.