Economic Analysis and Indicators

Nokia has waived Tuesday in achieving the objectives it had set a few weeks ago, raising questions about the ability of its new general manager to orchestrate the recovery promised in February.

The action has tumbled nearly 20% in session to reach its lowest level in more than 13 years at 4.716 euros.She closed with a loss of 17.53% to 4.75 euros, while it peaked at 65 euros in 2000.

Nokia, once the undisputed leader of mobile phones, saw its supremacy undermined in recent years, Apple and Google, the latter with its Android operating system burned him with politeness in the smartphone segment.

Nokia remains the world's largest manufacturer of mobile handsets in volume and CEO Stephen Elop has launched three months ago an overhaul of the phone business, which was reflected in particular the adoption of the Microsoft OS at the expense of system Operating Symbian house.

Nevertheless, Nokia said Tuesday that net revenues from services and materials in the second quarter would be "significantly below" its projection made in April, which ranged from 6.1 to 6.6 billion euros .

Stephen Elop, who arrived at Nokia last year to give teeth to the Finnish company, noted that competition was particularly fierce in Europe.

"Android is gaining strength and Apple, of course, is Apple," he told analysts in a conference call, adding that leadership problems had also been damaging for the company in China.

"Given the unexpected change in our projections for the second quarter, Nokia believes it is more appropriate to give annual targets for 2011," the company said, adding he would continue to provide quarterly updates .

Nokia expects non-IFRS operating margin for equipment and services to nearly stalled in the second quarter, instead of 6% to 9% previously expected.

A GREAT LEAP FORWARD?

These new projections imply a loss is probable in the third quarter, analysts say.They add that they also indicate that the position of Nokia in the market is deteriorating faster than expected, especially Asian competitors increasingly strengthening their positions in a market such as China.

"What we find truly amazing is the level at which the markets have fallen, there is now talk of the dead, for a slip is a slip," said Lee Simpson, an analyst at Jefferies.

"I think this level of damage to the shareholder becomes perilous. What can they do to turn things around?"

"It seems that it was his exposure to emerging markets in China mentioned, with competition hitting the low end," observes Morten Imsgard of Sydbank."In the short term, it will shake the company."

Stephen Elop expects to deliver in the fourth quarter of the combined first OS from Microsoft, which has not yet been proven, but analysts fear that Nokia has lost so much ground in the meantime back in the race that is painful.

"Given the internal disarray that this announcement will cause, it was increasingly difficult to imagine that Nokia makes a great leap forward and is tied with the competition in early 2012," said Thomas Langer, an analyst at WestLB. "Investors may be more concerned about the possibility of a dividend."

A month ago, Nokia announced the elimination of 7,000 jobs and outsource its Symbian software to reduce costs.

The Tokyo Stock Exchange finished Monday down 0.18% in a reduced volume of trade, with export values ​​penalized by the rising yen.

The quest for cheap shopping, however, somewhat limited losses.

The Nikkei lost 16.97 points to 9,504.97 and the Topix broader yielded 1.22 point (0.15%) to 823.68.

Because of the close of U.S. markets Monday and investor caution before the release on Friday the unemployment figures in the United States, activity was reduced in Tokyo.

The Nikkei should by then be supported technique above 9,405 points, analysts said.

Action Honda has lost 1.3% to 3.030 yen after the announcement of a program interruption repurchases for cash to save the group, undermined since the disaster of 11 March.

Sony has in turn yielded 2.08% to 2,122 yen.

The number of cases of indebtedness filed in March was up 8.5% from February and by 20% compared to January.

The number of filings with securities commissions of indebtedness has increased by over 20% between January and March, 2010 after a relatively stable compared to 2009, according to figures from the Banque de France (BDF) on Friday.

In March, 23,765 cases of indebtedness have been filed, an increase of 8.5% in February (21,890) and more than 20% compared to January (19,722). The number of accepted dossiers reached 18,224 in March, against 16,385 in February and 14,360 in January.

Between January and March, 65,377 cases were filed in total, against 58,423 a year, an increase of almost 12% over the same period last year.

Over twelve months the number of filings in commission from April 2010 to March 2011 totaled 224,925, an increase of 3.83% over the same period of 2009-2010.

In 2010, 218,102 cases of indebtedness have been filed, a figure very slight increase (0.79%) compared to 2009. Measures related to the debt overhang of the law Lagarde on consumer credit, passed in June, came into force on 1 November.

They provide thus shortening the duration of the roster of national incidents refund loans (FICP) in case of acceptance of a record of indebtedness by the committees.

Registration for the fact FICP prevents the person concerned to obtain new credit.The law also aims to better protect the indebted households while their procedure to succeed, by preventing any retaliation banks or seized by bailiffs.

Ireland does not seek additional time to repay loans from the European Union and the International Monetary Fund (IMF) said Wednesday Prime Minister Enda Kenny.

Some members of his government have spoken out in favor of a debt rescheduling and the Irish Minister for Public Expenditure in early May said that such a solution would be appreciated.

"We do not note will restructure debt, we are not seeking more time. We will overcome this challenge and already we meet the conditions required by the Plan EU / IMF," he said on a radio station.

"So when some people use the word restructuring, they mean that I'm going to take longer to repay, or that I will fail to honor my commitments.Ireland will meet its commitments and Ireland do not restructure. "

The economy minister, tipped to succeed DSK to head the IMF, will on that date if the Court of Justice of the Republic will open or not an investigation against her about the affair Tapie. Christine Lagarde is in the race to succeed DSK to head the IMF.

The Court of Justice of the Republic (CJR) could decide whether to open an investigation on the Economy Minister Christine Lagarde at its next meeting scheduled for June 10, said on Tuesday a judicial source.

This June 10 is just the deadline for nominations to the general direction of the IMF, a position for which the Minister of Economy is approached. Chinese officials, Indian, South African, Turkish and Kazakh are well on the ranks, as well as the Belgian Finance Minister Didier Reynders.

On 10 May, the Attorney General at the Court of Cassation Jean-Louis Nadal has decided to refer the petitions committee of the RGC. He felt that there was indeed evidence to justify opening an investigation for abuse of authority in the matter of the arbitration award in favor of Bernard Tapie in the disputed sale of Adidas by Credit Lyonnais in 1993.

On 10 June, the commission, composed of three judges from the Supreme Court, two judges of the Court and two judges of the State Council, will hold its next meeting. It should then consider appeals lodged against Christine Lagarde, and against the interior minister Claude Gueant, pursued in turn by SOS Racisme to racial discrimination. The petitions committee would give its opinion in the wake.

If the petitions committee did not settle on June 10, the decision is taken on a new appointment a few days or weeks later.

Three hypotheses on the fate of Christine Lagarde

First hypothesis: it considers that there is no basis to open an investigation and no further action. Second option: poorly informed, she asked to be informed of additional documents. Third option: it makes a favorable opinion on the opening of an investigation. Where appropriate, Jean-Louis Nadal then seized during the day or the next day, the board of education.

The latter, composed of three judges of the Court of Cassation, will begin an investigation that could lead to the dismissal of Christine Lagarde and Claude Gueant before the bench of the RGC, judging the crimes committed by members of government "in the exercise of their functions".

Two weeks ago, Attorney General Nadal asked the RGC to open an investigation after "found many reasons to suspect the regularity or legality of settlement by arbitration dispute that may characterize the crime of abuse of authority", misdemeanor punishable by five years in prison and 75,000 euros fine.

In late 2007, Christine Lagarde ordered the appointment of three umpires to adjudicate the dispute between Bernard Tapie in 1993 with Credit Lyonnais in connection with the sale of Adidas.

In July 2008, the arbitral tribunal had sentenced the Consortium de Réalisation (CDR, managing the liabilities of the bank) to pay 240 million euros in compensation to Mr Tapie, plus a hundred million euros of interest and 45 million for pain and suffering.The public prosecutor accuses Christine Lagarde have resorted to arbitration when it was public money and failing to commence proceedings against the award, while the number of specialists are encouraged.

The growth of activity in the private sector in France has slowed slightly in May, partly due to a slowdown in manufacturing, preliminary results showed on Monday of the monthly survey from the Markit Purchasing Managers .

The composite PMI, which includes industry and services, is back to version 60.5 "flash" against 62.4 in April. This last figure marked its highest level since September 2000.

In services, the purchasing managers' index remained virtually stable at 62.8 against 62.9 in April.But declined more sharply in the industry, with 55.0 against 57.5 last month but remains very much in expansionary territory.

Twenty economists and analysts polled by Reuters had expected an average index of 62.0 in services and to 57.0 in the industry.

"The growth reached a peak in manufacturing, reflecting a lower demand in many economies in the world, and France sees slow its export performance," said Chris Williamson, economist at Markit.

The business climate has worsened in April in the industry, according to the latest survey from the Bank of France, while it remained almost stable in services.

Chris Williamson, "the service sector has become the main engine of growth, he maintains a very steady pace of expansion and we could easily see further growth of 0.8% in the second quarter," after the 1.0% the first three months of the year.

Greek bond rate at 10 years has exceeded 16.5% Friday, a new record, while the issue of rescheduling of Greece divided than ever. An employee of the Athens Stock Exchange, April 12, 2010.

Greek long-term rates rose above 16.5% Friday, hitting a new record high while Europeans continue to debate on restructuring the debt of Greece.

In early afternoon, the Greek rate climbed to 10 years to% cons 16.254 15.809% Thursday evening, after reaching 16.546% in the morning, a level unprecedented since the country's entry into the eurozone.

The issue of debt rescheduling Greek divides Europeans more than ever, the European Central Bank (ECB) strongly opposed to this option is no longer ruled by some leaders as the leader of the Ministers of Finance Eurozone, Jean-Claude Juncker.

The ECB has also warned Thursday it could refuse Greek bonds as collateral, waving the threat of a drying up of liquidity for banks. "There is a clear consensus does not consider restructuring hard to say that the return of the Greek market in 2012 is simply not credible. Between these two extremes there are a lot of options to consider" , said Gilles Moec, bond strategist at Deutsche Bank.

For their part, the Greek rates to two years advanced to 24.530% 24.147% against the previous evening.As already yesterday, investors are turning away massive amounts of long-term securities, but retain some short positions in the securities because of their attractive yields.

These disturbances affect other debts fragile in the euro area, but more modestly: long-term rates were at the Portuguese mid-day to 9.028 against 8.907%% Thursday evening and those of Ireland at 10.310 10.228%% cons.

Usually relatively spared and the Spanish 10-year yields also suffered, while local elections are scheduled Sunday they were at 5.465% against 5.383% Thursday.

GDP in the third world power has declined by 0.9% in the first quarter from the previous one because of the sharp drop in economic activity caused by the earthquake and tsunami of 11 March. Naoto Kan has waived his salary as Prime Minister of Japan as the nuclear crisis is not over.

Japan fell into recession in the first quarter of 2011 due to the sharp drop in economic activity due to the deadly earthquake and tsunami of 11 March, drama amplified by the nuclear accident in Fukushima.

The gross domestic product (GDP) in the third largest economy declined by 0.9% in Q1 2011 compared to the previous, a decrease of 3.7% annualized, the government said Thursday

A recession is defined as two consecutive quarters of shrinking GDP.The Japanese economy had already fallen by 0.8% in real terms over the last three months of 2010 compared to previous quarter (-3.0% annualized), according to official figures revised down sharply.

The decline for the first quarter was worse than expected, even if the disaster occurred only at the end of the period. The fall in activity was such that it erased the previous weeks performance.

The sudden reversal was "largely due to the impact of the earthquake," said the Minister for Economic Policy, Kaoru Yosano.

He warned that the Japanese economy to remain weak for some time because of the strength of the shock cashed by the country, but it will not last, "she is strong enough to recover from this ordeal," he said.

The impact of the earthquake, tsunami and the nuclear accident in Fukushima has hurt investment, disrupted shipments in Japan and abroad, is plunging domestic demand against a backdrop of human and material disaster, disorganization , shortage of electricity, sadness and anxiety.

According to detailed data, business equipment spending and public sector investments have declined, as household consumption.

A further decline is also feared for the second quarter because of the extent of damage and disruption caused multiple circuits in logistics and industrial activity, especially as exports are also affected.

Besides the destruction of factories that weaken the capacity of production, radiation leaks from the central hilly Fukushima make suspicious countries importing Japanese products.These force to control or prohibit the entry of certain goods in their territory.

Businesses are confused about them and especially unable to make any predictions for the coming months.

In this context, the recovery is not expected before three months from July to September, when the reconstruction will be more concretely started, before stabilizing in Fukushima expected later this year. Mr. Yosano also acknowledged that he would "not surprising" that the decline will continue in the second quarter.

But he said Japan should still grow by around 1% for the year, thanks to government measures to reinvigorate the country, which lost 25,000 people in this tragedy, the worst since the end of the war.

The Government has estimated at 25,000 billion yen (297 billion dollars) the cost of the disaster of March 11, an amount which does not, however, the impact of radioactive discharges from the plant in Fukushima disaster and suffering from a severe series of accidents.

A first supplementary budget of 4,000 billion yen (34 billion) has already been approved for reconstruction and a second is expected to be decided in the coming weeks.

The Prime Minister hoped that households who have shown restraint considered excessive in the weeks following the disaster, recover quickly morale, enthusiasm and willingness to spend, even though the summer months ahead will be marked by the need to make significant savings in electricity and binding.

Wal-Mart Stores on Tuesday released a stronger than expected rise in quarterly profit, the proper conduct of its foreign operations offset its difficulties in the U.S. where same-store sales decline for two years.

The number one global retailer reported a profit of 3.4 billion dollars (2.39 billion euros) in the first quarter, or $ 0.98 per share, against 3.3 billion dollars, or $ 0.87 per share, a year earlier.

Analysts polled by Thomson Reuters on average expected earnings per share of $ 0.95.Wal-Mart told to wait between 91 and 96 cents per share.

Thanks to a 11.5% increase in sales abroad, the total turnover increased 4.4% to 103.42 billion dollars, exceeding a consensus of 102.93 billion.

But the United States, by far its largest market, Wal-Mart has again declined – by 1.1% – its same-store sales. It is the eighth consecutive quarter of decline. Analysts expected a decline of 1.3%.

Most of this decline reflects the decline in store traffic.The average amount of purchases, it is increasing, especially on the shelves of food, health and wellness.

In the exchange of pre-market title Wal-Mart slipped 0.4% to 55.82 dollars.

Wal-Mart plans for the second quarter earnings per share from continuing operations between $ 1.05 and $ 1.10, against 97 cents in the second quarter of 2010 and in line with forecasts of analysts polled by Reuters, that build on 1.08 dollar per share.

The French and German bank shares were among the sharpest declines in European markets Monday, while the arrest Dominique Strauss-Kahn increases uncertainty about the debt crisis of the euro.

The director of the International Monetary Fund (IMF) and so far poll favorite for the 2012 presidential election in France was accused Sunday of sexual assault, attempted rape and kidnapping by prosecutors in New York.

"In the eyes of investors, the arrest of Strauss-Kahn may possibly delay the processing schedule of the Greek problem.However, the market expects that this issue forward, "said a banking analyst who asked not to be identified.

To explain the nervousness in the sector, it also evokes the meeting of finance ministers of the euro area in Brussels on Monday and Tuesday and passing through the U.S. debt ceiling.

Around 10:50 am, Credit Agricole lost 3.16% to 10.720 euros, Societe Generale 2.23% to 41.260 euros, BNP Paribas 2.41% to 52.320 euros, Commerzbank 4.01% to 3.830 euros and Deutsche Bank 2.50% 41.185 euros.The Bank of'indice yielded 1.05%, largest decline sector in Europe, while the CAC 40 lost 1.22% and 0.95% Dax.

"The European equities began to treat with caution this morning after the affair Strauss-Kahn, who is expected to delay any progress in the European debt crisis," said Christopher Purdy for his part, a trader at Speadex.