Orders to U.S. industry rose for the second consecutive month in December, driven by increased business investment.
According to figures released Friday by the Commerce Department, orders for manufactured goods rose 1.1% in December.
Market economists polled by Reuters had expected, however, an average increase of 1.5%.
The November figure was however revised upwards and shows an increase of 2.2% instead of 1.8% initially announced.
Over the full year 2011, industrial orders rose 12.1%, against an increase of 12.9% in 2010.
Excluding transportation, orders rose 0.6% in December after rising 0.5% (revised) in the previous month.
Orders for nondefense capital goods and aircraft, considered a barometer of morale of entrepreneurs and their investment plans, surged 3.1% after falling 1.5% in November.
European markets opened up after the appointment of Mario Monti to form the new Italian government and the cabinet formation Papademos in Greece, which offers fresh hope for a gradual improvement on the forehead of the debt crisis in the area euro.
The government of technocrats being developed in Rome and the national unity cabinet was sworn in Athens are expected to regain some confidence to investors.
"The fact that Italy and Greece have avoided the political vacuum is a good thing. The question is whether the governments of national unity will work", says Katsunori Kitakura of Chuo Mitsui Trust Bank in Tokyo.
The Eurostoxx 50 0.63% progressed to twenty minutes after the start of trade.In Paris the CAC 40 gained 0.58% to 3167.52 points while the Milan stock exchange rebounded 2.1%.
Among banking stocks exposed to Italy and Greece, Credit Agricole, BNP Paribas and Societe Generale rose 2.25%, respectively, 3.66% and 2.12%. UniCredit took 4.42%.
Caution should however be in order before the first real test that will, in the morning, the award of three billion euros of five-year bonds by the Italian Treasury.
The French parliament on Tuesday approved the draft supplementary budget that allows the state to provide guarantees to the restructuring of the Franco-Belgian bank Dexia to facilitate its dismantling.
After the deputies, senators adopted the text finalized last week by a joint committee (WPC) Assembly-Senate.
All groups voted the outcome of the CMP with the exception, both the Assembly and the Senate, communists and the like.
The text of the CMP includes part of the version passed by the Senate, where the left is now the majority.It thus imposes counterparties to support banks.
Credit institutions supported public will not pay bonuses or stock options to their executives and dividends only in securities and not cash to shareholders, these restrictions on 1 January 2012.
The decommissioning plan provides that Dexia France, Belgium and Luxembourg will provide 90 billion euros in guarantees for its financing needs with 60.5% for Belgium, 36.5% for France and 3% for Luxembourg.
During the first reading in the Assembly all voted against the left.The same text, as amended by the Senate Finance Committee where the left is now the majority, was then voted almost unanimously by the upper house.
The chairman of the PS Assembly, Jean-Marc Ayrault, asked Tuesday the creation of a parliamentary commission of inquiry on "the adventures of Dexia and its leaders."
The stock exchanges of Paris, Frankfurt and London have opened up Friday, after falling the previous day as investors hope for feeding a step towards resolving the debt crisis. In Paris the CAC 40 index advanced 0.8% shortly after the opening.
The European banking sector shows some of the strongest performances, gaining 2.4%.
"Investors remain optimistic about a favorable outcome to the debt crisis in Europe.Markets are driven by the hope that the leaders agree on 23 October a viable solution to turn the EFSF, recapitalize the banks and save Greece (…) European leaders could announce release a sum of 940 billion euros to fight against the crisis "Saxo Bank in a note.
At the request of Paris and Berlin, an additional peak in the euro area will probably be held next Wednesday to not only agree on how to maximize the firepower of the European Financial Stability Fund (EFSF), one of the expected by the market to combat the crisis, but also review the new plan to rescue Greece.
The Tokyo Stock Exchange ended down slightly from 0.04%.Title Olympus closed on a new fall of 6.81%, yielding about 50% of its value since October 13.
The euro turned down against the dollar and the price of U.S. light crude continues to rise.
Countries of the European Union agreed Thursday to recapitalize their banks to the tune of 100 billion euros but profound differences between Paris and Berlin on how to reform the fund to support the euro area led them to re- postpone the most important decisions.
This Friday is held an extraordinary meeting of European finance ministers for the summit on 23 October.
BSkyB reported Wednesday a net increase in quarterly profit, sales of additional products to existing customers offsetting the expected decline in new subscriptions.
The FTD British satellite television was the target of a takeover by News Corp., its largest shareholder, until the abortion offensive in July, following the eavesdropping scandal News of the World.
Operating income adjusted for the fiscal first quarter came out better than expected, up from 16% to 295 million pounds (336 million).
Turnover increased by 9% to 1.66 billion pounds, suggesting that the new strategy group, which consists primarily of selling new products to existing customers, seems to be working.
"In difficult market conditions, our movement towards a more broadly based growth and product variety makes us good service," said CEO Jeremy Darroch said in a statement.
The market expected a slowdown in new subscriptions, rising unemployment and inflation in Britain affecting household spending.
During the period from July to September, 26,000 new subscribers joined BSkyB, slightly less than expected by the market and far from the 96,000 new subscribers registered in the same period last year.
"This is not an environment where you can add many new customers through improvements offers TV, but that does not mean that society can not grow and increase its profitability and cash," said Paul Richards, Numis analyst.
By 0800 GMT, the action BSkyB gained 3.26%, while the European sector index media progressed from 0.55%.
Eviction announced by Pierre-Henri Gourgeon Air France-KLM and the takeover of the group by its president Jean-Cyril Spinetta, could be a lifesaving shock to the Franco-Dutch company, hit by financial indicators in the red and controversial management of the disaster of the Rio-Paris.
In this scenario mentioned in the press Monday, Juniac Alexander, former chief of staff Christine Lagarde, not only would the management of Air France, a decision that was already widely expected, but is positioned to take forward direction General of the entire Air France-KLM.
A spokesman for the group declined to comment, confirming only holding a board in the afternoon and the likely release of a statement later in the day.
Pierre-Henri Gourgeon became Group Chief Executive in January 2009, while Jean-Cyril Spinetta, architect of the merger between Air France and KLM, retained the presidency.
The shelving of Pierre-Henri Gourgeon reached in just over three months after its renewal in early July for a four-year term by the shareholders of the group by an overwhelming majority.
"It's a shock. It is a little surprised because Air France is not a company that used to act like that.However, it is rather good news for Pierre-Henri Gourgeon not really good news to analysts, "said one analyst who requested anonymity.
Around 24:15, the title gained 4.4% to 5.753 euros.It has fallen 62% since the beginning of the year, bringing its capitalization to only 1.7 billion euros, underperforming both the largely German Lufthansa and IAG, an entity formed by the merger of British Airways and the Spanish Iberia.
Pierre-Henri Gourgeon and pay the price for its management of the company, which the French state holds 15.7% stake, which is too much debt, too slow to react and too wasteful, including labor costs well above those of its competitors.
According to press reports, Pierre-Henri Gourgeon Juniac Alexander would have required the newly created position of Chief Executive Officer of Air France as Jean-Cyril Spinetta supported the candidature of Lionel Guerin, CEO of Transavia France.
The catastrophe of the Rio-Paris flight in June 2009, the third serious accident suffered by Air France in a decade, has also raised questions about the technical training of its pilots, after publication of the interim report of the Investigation Bureau and Analysts (BEA).
The French Economic Observatory forecasts growth of 0.8% in France in 2012. Pink is the scenario. The black scenario, if the rigor is increasing: a decline in GDP of 0.5%. View the Ministry of Economy and Finance at Bercy.
Three years after the start of the global crisis, the potential for economic recovery of France will be constrained by budgetary savings plans in the country and its European partners, provides for the French Observatory of Economic Conditions (OFCE). Research Center of Sciences-Po expects growth of 1.6% in 2011 and 0.8% in 2012, while the government expects 1.75% per year.
"This performance is particulièrment poor and far from the normal path of an economy in crisis," said the OFCE in a study released Friday.The rebound potential perceived by the OFCE correspond to a growth rate of 3.8% per annum in 2011 and 2012, which would make up for five years after the crisis began accumulating the output gap. France, then regain its unemployment rate in 2007.
But two external shocks will affect such a scenario. The first, soaring commodity prices, will result in a resurgence of inflation in France and limit spending. It will cause a slowdown in its trading partners, reducing their demand for French products. This shock will reduce growth by 1.3 percentage points over the period 2011-2012. The second shock is linked to policies of fiscal restraint led by European countries.
A recession is not excluded
"In trying to reduce their deficits early, too quickly and synchronously, the governments of European countries run the risk of a new downturn," said the OFCE. The unemployment rate in France is expected to increase steadily to 9.3% and 9.7% end 2011 end 2012, according to the institute. "The low cost of capital discourages businesses not yet set up costly and risky projects", the study also points out, "the investment should not be in 2011 and 2012 an efficient link to make permanent the rebound in growth. "
The OFCE is also considering "a darker scenario" if the government would take "whatever the cost to meet its budget commitments' (deficit down to 4.5% of GDP in 2012 and 3% in 2013), with a decline of 0.5% of GDP in 2012.If the other major European countries were to adopt the same strategy, the activity would fall by 1.7% and unemployment was close 11%, according to the OFCE.
Scavengers and transport agents have been on strike for eight days in Athens. They protest against wage cuts under the new austerity plan. Their movement caused the accumulation of tons of garbage in the city. Thousands of "outrage" expressed Sunday, June 19 against the austerity of Syntagma Square in Athens.
Athens was again denied Monday transport due to a 24-hour strike, while tons of garbage piled in the streets after more than a week of mobilization scavengers against wage cuts. No subway, bus, trolley and tram, with only the train interbanlieue running, the main lines of the Greek capital was delivered to huge traffic jams, as on several occasions in recent weeks.
Employees of organizations from the metro and buses, which are manifest in the early afternoon in the center of the capital, protesting against investment in short-cuts and new salary, recently announced by the government, under pressure from country's creditors, the European Union (EU) and the International Monetary Fund (IMF). In turn, municipal employees responsible for waste removal began their eighth day of the strike, while the only landfill in the city remained closed. Torrential rains in the morning had drained the garbage on the roads, aggravating the condition of the streets.
Several government agencies, such as the National Agency for Medicines (EOF), the National Laboratory of Chemistry and the Society of IT Management of Social Security (Idika) were also occupied by their staff.To protest against new measures to cut public sector officials have observed a 24-hour strike Wednesday, the day some 30,000 employees of government departments and public bodies demonstrated in Athens and Thessaloniki (north).
A general strike in the public and private sectors is also scheduled for Oct. 19. The representatives of the troika of the country's creditors (Commission and European Central Bank, IMF) Monday also continued their audit of the Greeks, for the discount provided by 24 October of a report based on which area euro to decide the payment of a portion of eight billion euros, vital to the country always on the verge of bankruptcy.
Tensions in the interbank market have an impact on the real economy. Nearly a third of French banks have tightened their criteria for business loans. And the movement should be extended.
Credit conditions for firms have tightened slightly in France in the third quarter, according to a survey by the Bank of France to the banks, which provide a greater tightening in the fourth quarter.
The balance between the institutions reporting a tightening and those seeing a relaxation reached 28.5 in the third quarter, according to data released Friday. This is the first tightening since the second quarter of 2009.
The hardening observed is almost the same for large businesses (28.8) and SMEs (28.5).The period from July to September, "the criteria for granting loans to enterprises were tightened more than expected in the previous survey," notes the Bank of France. "This hardening, attributed to both balance sheet constraints and bank financing to the rise of their risks, is reported by less than a third of them and spoke mainly in quarter-end," said the institution.
Banks and particularly given the tightening tensions they encountered to finance markets and the prospect of entry into force of the new regulatory framework Basel III said, in favor of a strict control of the size of balance sheets and thus the volume of loans. This tightening of credit conditions has been accompanied by a decline in business demand, more sensitive SMEs (balance -33.2) than large firms (-15.1).
More worrying for the economy, the banks see these two tendencies assert themselves in the fourth quarter.
The last three months of the year, the institutions surveyed foresee a further tightening (net 41.6), the strongest since the third quarter 2008, which corresponded to the financial crisis. The banks provide the same time, a further slowdown in demand for corporate credit (negative balance of 34.6).
Shaken by a drop in subscriptions, the magazine of the National Institute of consumption could increase in the private sector, the risk that its credibility challenged.
While its competitor, the UFC-Que Choisir a hit, the magazine "60 million consumers" has seen its sales plummet by 22% between 2008 and 2011, according to an audit of the accounting firm of MBV & Associates, commissioned by the National Consumer Institute (INC), owner of the title. The erosion is partly due to the termination of a policy of recruiting new subscribers in recent years. Now, to return to profitability, the magazine should flow to 200,000 copies, twice today.result, the UFC-Que Choisir has 420,000 subscribers to 30 million euros in revenue and 60 million consumers of only 100,000 subscribers to 10 million euros.
For MVB & Associates, a status quo would lead to accumulated losses of € 4 million over the next three years, involving the continuity of the title. Conclusion of the firm: the magazine must be backed by the private sector, the only way to inject € 18.5 million for its re-floated. For now, while the parliament is considering a draft law on consumer rights, no decision has been taken and two scenarios are being studied in INC.
Two scenarios under consideration
"Either we are content to mobilize internal resources at the institute who are not fertile and we made a small raise of the subscription.However this can not go very far, "said Francis Amand, president of the board." Either we have a more ambitious recovery and growth capacity, requiring more funding that could come only from a private operator, "he added. A decision could be taken at a board of directors of the INC on 9 November.
The scenario of backing caused an outcry among staff and among some readers, who fear for the independence of the magazine. "Regulators want to get rid of the newspaper." 60 million "can not keep its identity and mission of public service outside of the INC," said Lionel Maugain, staff representative on the board. A support committee was set up by readers and journalists to oppose any backing to the private sector.Thursday, nearly 7,000 people had signed.
"It is difficult to an investor put money in a way that could not provide a lot of sales because the potential reader would think that this title is biased," assured Francis Amand. A charter could also be signed to ensure editorial independence, he said.
"60 million" was founded in 1970 by the INC, who realized that TV shows were not enough to inform the consumer. nitially released under the name "50 million consumers," the magazine is primarily known for its main comparative tests on the appliances. Then he is getting stronger with campaigns that make loud noise on the soaring prices and declining purchasing power, or on the Harms dyes, abuse of trustees and breathalyzers unreliable.A score of journalists working for the magazine, working closely with engineers, lawyers and economists INC.