BBVA, Spain's second largest bank, announced Thursday a 34.8% drop in net profit in 2011 as a result of provisions for impairment of its property assets and exceptional charge .
Its net income amounted to three billion euros, a result set back from the expectations of 3.18 billion, according to a Reuters poll of 11 analysts from financial.
The amount of its bad loans declined slightly to 4% of all of its claims, against 4.1% in September.
Manufacturing activity contracted in January in the euro area, for the sixth consecutive month, the burst displayed by Germany was not enough to prevent the depression is prolonged, the figures show the survey by Markit Purchasing Managers with. Although industrial production rose for the first time since July but the level of new orders continued to decline in the region, raising fears that it will take time before the economy the euro area to return to solid growth. In its final version, the index stood at 48.8, slightly better than the flash version (48.7) and in December (46.9). The sub-index of production rose for the first time in July to 50.4, revised from an initial estimate to 50.0, against 47.1 in December. The sector has experienced rebound in Germany, where manufacturing activity in January has returned to growth for the first time in four months. The index rose to 51.0 in January, against 48.4 in December and 50.9 in the first estimate. It has surpassed the 50 which separates growth from contraction. However the activity of the manufacturing sector has deteriorated in France. The PMI rose to 48.5 last month, according to the first estimate (flash) published on January 24. He had registered 48.9 in December.
The French car market resumed its decline in November after a slight rebound in the previous month, the disappearance of the delayed effects of scrappage scheme imposed in particular on sales of small cars.
The new car registrations fell 7.6% last month to 179,160 units, show statistics released Thursday by the Committee of French Automobile Manufacturers (CCFA).
They were up 2.8% in October, thanks to commercial offers to individuals.
The figures quoted in November as raw data to comparable number of working days, in November 2011 that counted as 20 business days in November 2010.The decrease primarily relates to small cars. "
Of the first eleven months of the year, the French car market was down 0.3% from the same period in 2010.
And this decline 4.7% only for French manufacturers, whose share of the passenger car market stood at 56.9% over January to November, down 2.6 points compared to last year.
EARLY 2012 will be difficult
Details of sales by manufacturer confirms the continuing difficulties of PSA Peugeot Citroen, whose new car sales to individuals dropped by 15.4%, a decline twice as large as that of the market.
The Tokyo Stock Exchange started the week up Monday, the speakers are partly reassured about the evolution of the European debt crisis even if they prefer not to push the market too high before an auction to be held in Italy later of the day.
The Nikkei gained 89.23 points (1.05%) to 8,603.70 and the Topix has taken 6.72 points (0.92%) to 735.85.
Italy must award five-year bonds, a first test for the new Chairman Mario Monti.
The market has not reacted much to the publication before the opening of Japan's GDP for the quarter July to September.
U.S. stocks closed up again Friday, the adoption of reform measures by the Italian Senate calm investor concerns about the euro area.
The Dow Jones gained 2.19% or 259.89 points to 12,153.68 points. The Standard & Poor's has been 1.95% or 24.16 points to 1263.85 points while the Nasdaq composite advanced 2.04% or 53.60 points to 2678.75 points.
For the week, the Dow Jones gained 1.4% and the S & P 0.8%. The Nasdaq lost 0.3%.
In Italy, the Senate passed the law of financial stability, a set of austerity measures demanded by the European Union to deal with the crisis. The Chamber of Deputies will vote Saturday on the text.Bank of America gained nearly 3% to 6.21 and JPMorgan Chase & Co 1.65% to 33.28 dollars. The KBW index of bank has been awarded 2.1%.
Nvidia has awarded 3.52% to 14.98 dollars. The graphics chip maker reported quarterly results better than expected thanks to its diversification in semiconductors for mobile phones and tablets.
The new car registrations in France rebounded in October, supported especially by the commercial offers to individuals, announced Wednesday the Committee of French Automobile Manufacturers (CCFA).
After declining 1.4% in September, new registrations in the Hexagon rose 2.8% last month to 176,203 units. The change means in raw data and adjusted for working days in October 2010 and October 2011 were both counted 21 working days.
The PSA Peugeot Citroën registrations fell by 4.5% in October, after -18.4% in September, while those of Renault continued to rebound with an increase of 11.3% last month.
The first ten months of the year, the French market is growing by 0.4%.
The top leaders of the euro area was completed last night. It provides for a discount of 50% of Greece's debt and strengthening of the EFSF to 1,000 billion euros. The details. The European Council President Herman Van Rompuy, Nicolas Sarkozy and Angela Merkel in Brussels.
The top of the eurozone, which ended in the night between Wednesday and Thursday led to a series of measures to resolve the crisis, including the deletion of 50% of the Greek debt to private creditors and the strengthening of the Fund stability in the euro area.Here are the details of decisions taken by all European leaders.
A discount of Greek debt to 50%
Banks and private equity funds that hold Greek debt have agreed to voluntarily relinquish 50% of their claims on the national debt by 2020: specifically, from January 2012, they will exchange their debt obligations Greek against others whose value will be halved. This represents a deletion of 100 billion euros of Greek debt, currently at 350 billion euros. Fund stability in the euro area (EFSF) will bring to these private creditors 30 billion euros in guarantees on these new claims.The plan of 109 billion euros in public aid (EU and International Monetary Fund) for Greece decided on July 21 is replaced by another, amounting to 100 billion euros, until 2014, who s will accompany closely monitored by the creditors of the implementation of reforms required in the country. Athens will have to find 15 billion to reduce its debt through privatization.
Recapitalized banks to the tune of 106 billion euros
Hard equity banks (equity capital and retained earnings) will reach 9% "30 June 2012." To achieve this, "banks will have to appeal primarily to sources of private capital." Until this objective, "the banks should be subject to some constraints on the distribution of dividends and payment of premiums."The European Banking (ABB) was evaluated Wednesday at 106 billion recapitalization needs, which will involve 70 schools. Greek banks are the most concerned (30 billion) before the Spanish banks (26.16 billion) and Italy (14.77 billion).
The EFSF increased up to 1000 billion
The EFSF, currently has a capacity of loan of 440 billion euros, will reach a strike force of about 1,000 billion. Two mechanisms should complement each other for this purpose. The first will be to ensure some of the potential losses of private investors when they buy government bonds on the primary market. The other is to create one or more special funds (special purpose vehicles) to attract outside investors private or public, as emerging markets.The text mentions, without elaborating, "an even closer cooperation with the International Monetary Fund."
The ECB may continue to buy back debt
The governments of the euro area may have to count on the role of the ECB firefighter to support fragile states such as Italy and Spain. Its future president, Mario Draghi, has promised to continue to do so if necessary.
Golden Rules of generalized
The golden rules of a balanced budget will be generalized. Among the measures to strengthen fiscal discipline common EU monetary figure "the adoption by each Member State of rules on passing a balanced budget the Stability and Growth in the legislation, preferably at the constitutional level or equivalent end of 2012, "the statement said.
Highs in the euro area generalized
Highs in the euro area will be held twice a year.They will be chaired, at least initially, by the President of the EU, the Belgian Herman Van Rompuy. A change in the EU treaty is considered.
The option of separate market activities and those of major European banks of deposit will be thinking in Europe, announced Thursday the EU Internal Market Commissioner Michel Barnier, without going so far as to directly question the universal banking model.
This model, championed by French banks BNP Paribas, Societe Generale and Credit Agricole and its major European competitors, is already under pressure in the United States and several European countries, like Great Britain.
"The logic is to identify risks and to face risks at the right level, adequate safeguards," said Michel Barnier at a press conference.
"Is it necessary to go further and move from the segregation of risk and prudential measures to separation, as I see in the report suggest Vickers in the UK or as the Americans wanted to do?"
"I'm not closed to the idea of separation (…) Before going further, I want us to objectively verify all the advantages of separation and the negative effects this could have," he said.
He then observed that the universal banking model, which predominates in Europe, played no role in triggering the financial crisis in 2008 and, in the same way, no model of the Atlantic had not preserved the United States in this crisis.
European officials working on these topics were then clarified that the Commission would not go head on universal banking model but would seek to ensure that the risks inherent in the business market are treated "totally sealed "to protect the activities of deposit.
THE CENTER OF THE PRESIDENTIAL CAMPAIGN
In France, the idea of separation of deposit banks and investment banks – or at least a separation of these types of activities – already among the themes of the presidential campaign.
It is defended not only by the Socialist Party, favorite in the polls, and the left parties but also, on the other side of the political spectrum, the National Front.
The project of the PS in 2012 and states that "we must return to a strict distinction and separation of banking activities of deposit and financial activities," an orientation also defended by the candidate Francois Hollande.
Two of his relatives, former Economy Minister Michel Sapin and the chairman of the Finance Committee of the National Assembly, Jérôme Cahuzac, recently told Reuters support the separation of deposit banks and investment..
French banks, supported by the Bank of France, for their part do not want to hear about this separation.
François Villeroy de Galhau, the network manager at BNP Paribas France had declared the end of September that such a separation would have been of no help when the financial crisis of 2008.
He wanted to show that Northern Rock in Britain was a purely retail bank while Lehman Brothers in the United States was only one bank and investment.
The French Banking Federation was not immediately available to comment on what Michel Barnier.
Bic confirmed on Wednesday its major predictions for 2011 despite the economic downturn and increased competition, both of which affected its sales in the third quarter.
The group aims for its Consumer division (pens, lighters and disposable razors), which generates 85% of sales, growth in annual sales on a comparable basis over 5% and a margin increase from the last year.
But the prospects for the division of advertising and promotional products (APP) are darker: Bic expects a decline in sales on a comparable basis "just under 10%" and a line "similar to that of 2010 ".
In the third quarter, sales of Consumer division rose 3.3% on a comparable basis (exchange rates and constant perimeter) but decreased by 2.1% as reported at 391.6 million euros .The PPA has fallen 10.0% compared to 76.6 million (-17.4% as reported).
The total quarterly revenue and a poster-like growth limited to 0.8% (-5.0% as reported).
In the first nine months of the year, sales to 1.354 billion euros, up 3.8% on a comparable basis (+6.8% for the consumer division, -10.1% for APP ), but fell back by 0.3% as reported in 1354.3 million.
Gross margin for the nine months rose 1.8 points to 49.1% of net sales and operating margin reached 23.5% standard, 3.2 points higher than last year.
"The Consumer activities remains strong despite a challenging economic environment and, most importantly, the group's profitability remains above historical levels," said in a statement the Director General, Mario Guevara.
About APP, he added that "the continued economic downturn and the challenges of integrating this activity was delayed more than we had originally anticipated, a return to growth" and evokes " necessary adjustments, "without elaborating.
In exchange, the action Bic ended Tuesday 65.61 euros. The stock has gained 2.1% since the beginning of the year while the CAC 40 index yields 17.44%.
The stock market rally seen since early October, which is largely based on the feeling that Europe has finally committed to the implementation of sustainable solutions to the debt crisis, seems to be over in fear that the ads promised by early November are not up to expectations.
The German Finance Minister Wolfgang Schäuble, who warned Monday that the European Summit of October 23 would not produce a definitive solution to the debt crisis in the eurozone, has dampened the enthusiasm in the marketplace.
Around 16:30, the CAC 40 and Eurostoxx 50, which is still evolving in the green in the morning after a G20 finance considered rather promising Saturday, both lost about 1.6% as a result of these statements.
Noting that the increase of over 12% in 10 days is largely based on hopes and was made in limited volumes, leaving the door open to great disappointment when announcements, investors do not exclude relapse of the markets in the coming weeks.
"The meeting of G20 finance ministers this weekend confirmed the hopes of the market for the rapid implementation of a plan to end the crisis", says Franklin Pichard, director of Barclays Bourse France.
"Politicians have no room for error in communication.The slightest disappointment lead to a violent reaction to the decline in equity markets. "
Buyers expect the ads to be made after the G20 summit on 3 and 4 November in Cannes: strengthening the capacity of the European Financial Stability Fund (EFSF), bank recapitalization European responses to the financial situation worse than expected from Greece and reform of European governance.
"Although we have a constructive long-term vision of the evolution of sovereign risk in the euro zone, the political difficulties to be expected before reaching a final solution we ensure that the road is bumpy markets," said BNP, however, Paribas Investment Partners.
The management group, which benefited from the rebound to move to underweight on equities, does not "further price drops, as we had this summer seem possible."
ING Investment Management also remains on the defensive, a position with "underweight" on the stock markets in Europe, as well as financial and cyclical stocks.
His actions strategist Patrick Moonen is especially before the uncertainties not only about the size of the bank recapitalization program, but also on the quarterly results, which could also disappointed with the economic slowdown and exchange rate volatility.
"The month of October started a rally based on hopes (…) and positions, but few facts," he said.
Strategists market rate of Societe Generale also believe that "the latest developments are a supporting factor for the risk appetite, although the markets think differently this time."
CONSOLIDATION AT THE OPTION OF ADVERTISING
Investors are more reserved vis-à-vis the commitment shown by Saturday the finance ministers of the G20 to support and rebalance the global economy – with a fiscal consolidation in advanced countries and support for domestic consumption in emerging markets.
"If these promises are interesting, they are very similar to previous ones.There are many positive intentions but little detail on implementation, with the exception of Europeans advancing at a rapid pace, "said François Duhen, strategist at CM-CIC Securities.
From the graphical point of view, analysts estimate that the CAC 40 should stumble on key areas of resistance around 3280-3300 points, then from 3450 to 3500 points, and the Eurostoxx 50 on the area of 2450-2460 points.
"The movements (up to last week) could be extended a little longer, but we expect corrections, or at least consolidation in the coming days," said Valerie Gastaldy, Analyst Day By Day.
Alexandre Le Drogoff, Aurel BGC, agrees that current levels of the market should be the starting point for a correction, to a resistance threshold of 3.060 points for the CAC 40 and 2230 points for the Eurostoxx 50 … unless it announces a new downtrend.
"I see the French market up against the 3280-3300 and consolidate the liking of ads before leaving, especially since we do not see a buying spree at the moment. It's going a little too fast. This is probably not sustainable, "said Frederic Rozier, manager at Meeschaert Private.
However, despite the dismantling forced Dexia, some speakers stressed that the "worst is over", confident in the ability of policies to avoid a systemic crisis as in 2008, after the bankruptcy of Lehman Brothers.