Financial News Headlines

The President of Finmeccanica Pier Francesco Guarguaglini resigned, while the Italian advocacy group is the center of a corruption scandal, said on Thursday a source familiar with the matter.

The information was confirmed by the group a few minutes later.

The Board has appointed the current Chief Executive Officer Giuseppe Orsi Group to replace him, the source added which states that it will combine the two functions.

The group is weakened by an investigation into suspicions of corruption that affects some of its most senior officials.

The Italian government is a shareholder of the group of aerospace and defense to the tune of 32% and this scandal is the first figure of political test for the new government led by Mario Monti.

U.S. stocks ended sharply higher Friday as investors welcoming the results exceeded expectations of big names from the coast and anticipating a positive outcome to the crisis of debt in the euro area.

The Dow Jones gained 2.31% or 267.01 points to 11,808.79 points. The Standard & Poor's has been 1.88% or 22.86 points to 1238.25 points.The Nasdaq Composite was awarded 1.49% or 38.84 points to 2637.46 points.

For the week, the Dow rose 1.3%, the S & P 1.1% but the Nasdaq fell 1.1%.

Obstacles remain on the path to solving the crisis in the euro area and major differences still separate France and Germany, but investors appreciate that the leaders of the euro area are set a deadline to Wednesday.

A meeting between Nicolas Sarkozy, Angela Merkel, José Manuel Barroso and Herman van Rompuy will be held Saturday night in Brussels on the eve of the summit of the EU and the euro area on the debt crisis. This meeting will be preceded by a bilateral meeting between French President and German Chancellor.In addition, the principle of a new special meeting of the Eurogroup summit by the euro area on Wednesday, is also acquired.

In addition, the finance ministers of the euro area approved Friday the release of the sixth tranche of aid to Greece. This round of eight billion euros must now be approved by the International Monetary Fund.

This is the third week of up to the S & P, the most since February. The benchmark index fund managers will have to get out of the range 1230 and 1250 in which it tends to evolve.

On the values ​​front, McDonald's reported a better than expected for the third quarter. The value ended with a gain of 3.7% to 92.32 dollars.The index values ​​of consumption has advanced 2.8%.

Honeywell International jumped 5.8% to 51.28 dollars. The industrial group has raised its profit forecast after better than expected quarterly accounts.

General Electric has instead yielded 1.9% to 16.31 dollars. Investors are questioning the lower margin of the power equipment sector industrial conglomerate, in spite of the consolidated results as expected.

The S & P industrials, which includes GE and Honeywell, ended with a gain of 1.9%.

According to data from Thomson Reuters, the 133 companies in the S & P 500 that have released their quarterly accounts on Friday, showed 68% of profits above expectations.

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.

Christine Lagarde calls on Europe and the United States to take measures to raise economic growth, where possible, to address the crisis of confidence affecting the global economy.

"If the U.S. launches a credible medium-term adjustment, there is probably room for abandoning the austerity measures in the short term and introduce measures to support growth," said Executive Director of the Fund International Monetary Spiegel in an interview.

"For Europe, we recommend to countries to adjust their austerity programs in light of a changed situation and to consider measures to fuel growth."

Former French Minister of Economy has created an uproar the last weekend by asking politicians to force European banks to strengthen their capital base, a call she reiterates in the interview given to Spiegel.

Regarding Germany, the largest European economy, Christine Lagarde believes that public finances are recovering well.

"Everything depends on the circumstances, of course. If exports, upon which the German economy collapsed, the government could contrebraquer."

"If Germany stimulate domestic demand, it's good for the German economy and for neighboring countries," she says in response to a question in this regard.

European shares start falling, ending for the most up four sessions in a row, in the wake of Wall Street, in markets nervous before the employment figures in the United States.

The publication of an ISM manufacturing index for August better than expected, but still its lowest level in two years, has awakened the fears of investors about the risk of recession across the Atlantic.

At 9:40, the CAC 40 was down 1.64% to 3212.24 points after returning 5.8% in one go since Monday.

Other major European markets also declines sharply: London and Frankfurt lost 1.6%, which was already losing ground yesterday, leaves 2%.Of the European indices, the EuroStoxx 50 yields 1.78% and the Eurofirst 300 was down 1.41%.

"There is not a measure of uncertainty before the employment figures to be published in the day, while the fact that U.S. markets are preparing for a long weekend encourages traders to reduce their short positions term, "said Camron Peacock, an analyst at IG Markets.

The financial and cyclical values ​​are among the most affected.The sector index banks in Europe lost 2.13% and 2% of the insurers, with a decline of 3.6% Credit Agricole, 3.2% for PSA and 3% for ArcelorMittal.

MAINSTREAM SELLER

Deutsche Bank was down over 3% while, according to The New York Times, the federal agency that oversees the mortgage market in the United States will file a complaint against more than a dozen major banks, the German bank.

From a graphical point of view, Alexander the Drogoff Aurel BGC, sees the EuroStoxx 50 fell to 2.100/2.077 points.

"Our technical reading of the index remains in favor of the bulls failed to significantly prolong the rally and then a return to mainstream vendor," he writes.

The euro is trading at 1.4211 / 12 dollar against 1.4257 the previous day in the afternoon, while U.S. crude yields 51 cents to 88.42 dollars a barrel.

The performance of German government bonds to 10 years down to about 2.09% against 2.16% on Thursday.

The Spanish economy has slowed in second quarter, rekindling fears of a relapse into recession if the country's economy, much worse, in the eurozone were to deteriorate.

Gross domestic product (GDP) in Spain rose 0.2% in the second quarter, as announced in the first estimate, following 0.4% (revised up) in the first quarter, according to figures released Friday by the National Institute of Statistics.

GDP growth stood at 0.7% per year, as markets awaited, and after 0.9% in the first quarter.

The government of Jose Luis Rodriguez Zapatero expects growth of 1.3% per year for 2011, but the consensus of economists appears rather around 0.8%, suggesting that Spain could face more difficulties than expected in the pursuing its objectives of reducing the deficit.

The bursting of the housing bubble and a prolonged liquidity crisis weighed heavily since 2008 on the construction industry, long a pillar of the Spanish growth, but exports and strong domestic consumption have so far allowed the country avoid falling back into recession.

While the unemployment rate approaches 21% and that disposable income declines, some economists, consumption relatively strong in the second quarter could indicate that households are cutting back on their savings.

"Again, this probably reflects the fact that households draw on their savings or save less, and this is obviously not a long term solution," said Ben May, economist at Capital Economics.

"Overall we continue to believe that Spain will at best grow very low on the next two quarters, and it could fall into recession," he adds.

Secretary of State for the Economy José Manuel Campa also said that the goal of a 1.3% growth in 2011 was possible but it could be threatened if the economic slowdown abroad.

"It is possible, but it will be difficult due to external factors," he said.

The Swiss National Bank has decided to step up measures to counter the strong Swiss franc, which it considers "extremely overvalued". The Swiss franc was worth 1.2041 per euro June 29, 2011

The Swiss National Bank (SNB) has decided to step up measures to counter the strong Swiss franc, according to a statement released Wednesday. "Measures taken so far by the NBS show their effects," but "the Swiss franc remains extremely overvalued," said the central bank.

The SNB has "decided to increase again significantly liquidity in the money markets franc" in Switzerland. With this action, the SNB "thus increasing the downward pressure on interest rates money market to continue to weaken the franc" in Switzerland. To this end, the SNB increases the cash in circulation will increase from 120 billion to CHF 200 billion CHF.

In addition, like last week, the SNB will conduct currency swaps additional (trade flows), as it had done at the height of the financial crisis of 2008. The announcement Wednesday is the third intervention by the NBS in a fortnight to fight against the franc fort.

The first dates back to August 3. The SNB had tightened interest rates and indicated it will increase "substantially" liquidity in the money market in Swiss francs. Then on August 10, the Swiss National Bank announced further currency swaps (exchanges of cash flows), as it had done at the height of the financial crisis in 2008.

Wall Street recorded its third consecutive Monday up, taking off after several weeks of volatility in favor of optimism about an early resolution of the debt crisis in the euro area and the acquisition of Motorola Mobility by Google .

The Dow Jones Industrial 30 gained 1.90% or 213.88 points at 11,482.90 points. The S & P-500, wider, took 25.68 points, or 2.18% to 1204.49 points.The Nasdaq Composite Index was up 47.22 points for his side (1.88%) to 2555.20 points.

From the highest of the year reached in April 2009, the S & P 500 is still lagging down about 12%.

"The market has become what technical analysts call oversold for about a week and we are seeing a rebound from these levels," said Kevin Caron, an analyst at Stifel, Nicolaus & Co.

The progression of the day, however, was in volumes lower than those observed on average last week.

The title of the mobile phone manufacturer Motorola Mobility jumped 55.82% to 38.13 dollars after Google announced a tender offer at $ 40 share, valuing the company at $ 12.5 billion (8 , 7 billion).

Google, which is the largest acquisition ever, has earned a share of choices on the smartphone market with its Android operating system, fitted to almost 50% of the combined media worldwide.

But the group suffers from a lack of intellectual property in the wireless telephone in response to Apple's iPhone.The action Google has sold 1.16% to 557.23 dollars.

Also in the area of ​​mergers and acquisitions, Bank of America acquired 7.93% to 7.76 dollars after announcing the sale of its credit cards in Canada and a similar disengagement in the world.

The financial sector has displayed one of the best sector performance, with a gain of 3.24%.

Time Warner Cable has in turn announced the acquisition of cable operator Insight Communications to Carlyle for three billion dollars in cash.

The title of the media group ended down 0.75%.

These operations have somewhat overshadowed the announcement of a contraction in manufacturing activity in August in the New York area for the third consecutive month, the index standing at Empire State -7.72 -3.76 in July after .

Which also supported the rating, it is the expectations of benefits to the crisis of a scheduled meeting Tuesday between Nicolas Sarkozy and Angela Merkel.

But Berlin and Paris have ruled Monday that the question of the possible creation of bonds issued jointly by the countries of the euro area (Eurobonds) was discussed at the third meeting between French president and German Chancellor in the space of two months.

Why the markets are yo-yo? The stock market crash threat he savers? The world will he fall back into another recession? Our responses. Facts: exchanges plunge

For almost three weeks as global stock markets loosen. The CAC 40 has lost 22% since July 22. After a strong rally Thursday, the Paris Stock Exchange Friday widened its losses. Bank stocks were particularly severe since Wednesday because of speculation about a possible loss of the triple A rating of France. Societe Generale, which lost nearly 15% Wednesday, asked the AMF to investigate rumors that she believes she suffered.

See also:

Ten figures to be taken on the stock market crisis Why France French banks worried the markets: the reasons for the panic market crisis: the sequence of events real victims and losers in the wrong stock market crash market crisis: that investors may

The clap of thunder: the loss of "AAA" American

Standard and Poor's downgraded by one notch on July 5 the U.S. debt rating of "AAA" to "AA +". A historic first for the country. In fact, the agreement reached in extremis August 2 to Congress to raise the ceiling of the debt and avoid default has not satisfied the rating agency.It is estimated that the compromise between Republicans and Democrats is not nearly enough to reduce debt astronomical U.S., which reached 14,300 billion.

Given the position in the global economy of the most powerful and safe haven status of the dollar, the main international reserve currency, the S & P's decision could be devastating for the entire global finance. The announcement did not fail to create a renewed tension in the exchanges.Ironically, investors remain confident in the ability of the United States to honor their debts: U.S. borrowing are still very popular and their rates have not risen.

See also:

The United States lost their triple A, what consequences? "You have to detoxify the rating agencies"

The context of substance: the fears of another recession

The markets are worried about the health of the global economy. As well as one side of the Atlantic than the other, the news is bad. United States doubts about the strength of the economy are stronger every day, with the accumulation of worrying signs. There is talk of increasing the risk of the economy falling back into recession, the "double dip recession." GDP grew by only 1.3% in the first half and unemployment remains very high level of 9.1%.But the S & P's decision to degrade the American note is likely to further seal the U.S. economy. For focusing on the debt problem, it prevents the state to implement the fiscal stimulus that would be needed in the short term to strengthen the recovery. So the Fed that holds the ammunition last, that of monetary stimulus. She has pledged Tuesday to keep rates near zero until 2013 and continue to buy treasury bills as those they would hold to maturity.

In Europe, Spain and Italy posted increases of 0.2% winded and 0.3% in the second quarter. France does no better: After starting the year with a bang, French growth was zero in the second quarter and unemployment started to rise.The global recovery is no longer as strong as it appeared in 2010.

See also:

Obama has the means to revive the U.S. economy? S & P precipitates Does the United States into a new recession? Why unemployment in France does not drop

The contagion of the crisis of debt in the euro area continues

The markets are finally tormented by the fear of contagion from the crisis in Greece to Italy and Spain, heavily indebted, and which together account for 30% of European GDP. Therefore, the rates at which these two countries were borrowing at record levels. In fact, the second Greek rescue plan developed in July is still not enough to reassure markets. Although eager to pass the baton to the relief fund, the ECB has once again agreed to put out the fires and expressed its readiness Sunday to buy the debt if the Spanish and Italian investors withdraw.To make matters worse, the note of Cyprus has been degraded by the three rating agencies. According to Fitch, the island now needs a rescue package of the EU.

See also: Spain and Italy do they need a plan to help?

A plan for raising the ceiling of U.S. debt and to avoid a default of immediate payment of the United States could still result in a rating downgrade of the United States within a year or so, said Tuesday Moody's.

The "plan B" Senator Mitch McConnell, considered more as a "plan A" in Washington, seeks to prevent a lowering of immediate note of the United States, said Moody's analyst, Steeven Hess Reuters Dabner an interview.

"But the figures being discussed in terms of a possible deficit emerging from this plan does not seem very important," said Steven Hess."As a result, this plan could lead to a negative outlook on the note."

The United States are rated triple A by all three major agencies, the maximum score.