Up 22% of the profit of Intesa Q1

Net income of Intesa Sanpaolo, the first retail bank in Italy, grew 22% to 805 million euros in the first quarter, supported by gains on its trading own obligations.

The bank had to spend in provisions for doubtful debts of 970 million euros in the quarter, up 43% over the same period last year, to account degradation of credit quality in the country, hit by a deep economic recession.

Fears of a deteriorating economic situation in Italy, where Intesa makes 80% of its activity, is one of the elements cited by Moody's to justify lowering the massive credit rating of Italian banks Monday. 

Moody's lowered the rating of Intesa Monday to A3, the same level as the Italian sovereign debt.

Intesa announced that its ratio of "core Tier 1", financial strength, was 10.5% at end-March, against 10.1% at the end of last year – one of the highest in Italy.

The bank expects a stable overall operating profit in 2012, excluding special items.

Like other Italian financial institutions, Intesa ended the year 2011 in the red, with a loss of 10.1 billion euros over the years, having moved from significant impairment of goodwill to its balance sheet clean, hard hit by the crisis of the euro.

The title was down nearly 2% in the Milan Stock Exchange.

The Tokyo Stock Exchange finished up 0.23%

The Tokyo Stock Exchange ended slightly higher Monday, China's decision to lower the reserve requirement ratio imposed on banks, a measure appropriate to support credit and economic activity, having taken over the persistence of concerns generated by the political stalemate in Greece.

The Nikkei gained 0.23% or 20.53 points, to 8,973.84. In contrast, the Topix broader, yielded 1.70 points (-0.22%) to 756.68.

China cut Saturday the amounts that banks must hold in reserve, thereby increasing their lending capacity of 400 billion yuan (48 billion euros), a measure taken to e avoid the risk of a sharp slowdown in the second largest economy.

In Greece, the leader of the radical left, Alexis Tsipras, Monday refused to participate in negotiations of the last chance to form a national unity government, paving the way for the organization likely new legislative elections in June. 

Action Nissan sold 1.99%, investors apparently not been impressed with the predictions of the manufacturer, which saw operating profit grow by 28 , 2% this year.

Berlin to a growth pact, but its conditions

The German Minister for Foreign Affairs presented a Friday "Growth Pact" European six-point, while reiterating that Greece should comply with its commitments to fiscal reforms TARY if she would qualify for financial assistance from the euro area and not be excluded from it.

"In Europe, we also want to focus more on growth," said Guido Westerwelle before the German deputies in the Bundestag.

The minister was however opposed to increased spending, saying the pact for growth, particularly desired by the new French president Francois Hollande, was not to imply that " better use of resources "from the EU. 

Guido Westerwelle city "trips financed by Europe in the romantic hotel spas" as an example of waste in Europe.

The minister said the EU should invest 80 billion euros of unused structural funds in projects aimed at stimulating growth and competitiveness.

He also wanted to push the European Central Bank (ECB) to provide better access to credit for small and medium enterprises.

The former head of the liberal FDP, which form a coalition with the Christian Democrats (CDU / CSU) Chancellor Angela Merkel, European growth was linked to a liberal ralisation of domestic and foreign markets. 

Francois Hollande Angela Merkel will meet Tuesday, hours after his inauguration, to discuss the crisis in the euro area and the measures needed to stimulate growth in Europe presqu'entiè ; LY dive into recession – with the notable exception of Germany.

This will be their first face to face interview, while Angela Merkel has avoided meeting Francois Hollande during the presidential campaign, where she supported his opponent Nicolas Sarkozy.

Peter Bofinger, one of five "wise men" who advise the German government on the economy, has also decided Friday to allow more room for countries suffering from the debt crisis. 

"The problem countries kill themselves to save," he told an Austrian newspaper. "We must stop this, even if deficits rise in the short term."

That hides the yoyo market

Financial markets seem to have entered a new phase of instability. This correction is benign or she announces she a new crisis. The responses of Grandrille Xavier, President of Amplegest. Paris Bourse

For three months, financial markets and the States have experienced a real honeymoon. German and Japanese shares rose nearly 20%, spreads have narrowed significantly, from 200 basis points for Italy and Portugal, 170 points for Ireland, 30 points for France. But for two days, it is the fever which prevails. In Spain and Italy, rates on government bonds are strained. And scholarships to play yoyo throughout the Old continent. Analysis of Gandrille Xavier, President of Amplegest

Correction in financial markets is normal?

Only in part. Since late 2011, the CAC 40 was much increased. About 16% until mid March. This increase was driven by two factors. The first is the disappearance of systemic risk through intervention by the ECB provides liquidity to banks. The second is the improved outlook for growth. Last summer, it seemed that Europe would not live through the winter. And then the activity – even if it remains depressed – has grown faster than expected. After a period of rising markets, it is normal to see a correction. We lost 10% of the CAC. It's not a disaster. The problem is knowing what will make markets in the coming months. Will you stay in the same waters or on the contrary, enter a negative cycle?

Exactly. What is your scenario for the future?

The answer is not obvious. But unlike the consensus which considers the correction of the past two days as normal, I'm pretty uncomfortable. The euro area remains a system that does not work. And injections of liquidity by the ECB do not change. We are in a situation where the debt repayment hampers growth. But until there is no improvement economic contagion – that is to say, a generalized rise in long rates – is possible.

Can we implement growth policies to loosen the grip of markets?

It's complicated. Future investments are expensive. We can implement liberalization policies as in the Scandinavian countries. But this type of policy takes time to produce its effect on the economy, in contrast to fiscal austerity. Europe is thus reduced to buying time to let the markets do not become impatient. This is what happened, for example, with its new firewall. But I remain pessimistic for the future. I'm afraid the consensus is do a little too many illusions about the ability of Europe to come out of the rut by itself. It will probably still other attacks markets, other crises to advance.

LIVE. Xavier Bertrand debate-Francoise Gri on youth employment

The Minister of Labour is currently a guest on Expansion and Business Institute for a discussion with Francoise Gri, Manpower France's patron. Follow the live chat with Dailymotion.

In anticipation of upcoming elections, the Institute of Business and Expansion Tuesday, April 10 to receive 8h30Xavier Bertrand, UMP Minister of Labour, and Francoise Gri, President of ManpowerGroup France. They discuss the theme: "Youth employment: how to meet (finally) the challenge?".

The debate is moderated by Beatrice Mathieu, a journalist at L'Expansion. It is broadcast live on Dailymotion. You can also comment on twitter and ask your questions or comments via or via the # debateco. Three questions will be selected and asked Xavier Bertrand on video.

Job creation slows in March in the U.S.

The number of jobs créésa been well below expectations in March in the U.S., which suggests that the Fed has leeway for further monetary easing, although the unemployment rate fell to a three-year low of 8.2%.

The number of jobs créésa was 120,000 in March, reported the Labor Department Friday, the lowest since October 2011.

Economists polled by Reuters expected a number of 203,000 and an unchanged unemployment rate of 8.3%.

Despite the low number of jobs created, average hourly earnings rose five cents per month, while the workweek fell to 34.5 hours against 34, 6:00 in February.

The global air traffic up 9.3% yoy in February

The air passenger traffic grew 9.3% yoy in February but rising fuel prices and the deterioration of the overall business climate are factors of uncertainty for the future, announced Tuesday the International Air Transport Association (Iata).

The numbers at the end of February have benefited the Chinese New Year, Carnival in Rio and a favorable base effect due to the impact of traffic on the Arab spring last year ; re the same period.

"The outlook is fragile. Improving the business climate weakened in February. This will limit the potential for customer growth in business class and implies an acceleration of the freight is not imminent, "said Tony Tyler, CEO of Iata said in a statement

. growth in international cargo was 5.1% on-year slide in February …… Passenger traffic

… grew faster than the available capacity that growth came to 7.3% year on year, which resulted in a better load factor of the devices. The trend was reversed for freight, which has resulted in a rate of capacity utilization of only 50%, IATA said … ……

Nissan and Dongfeng trucks come out of their joint venture

Nissan Motor and Dongfeng Motor Group will split the truck business of their Chinese joint venture for the transfer to the parent of Dongfeng public, paving the way for local production of Renault and Infiniti cars and a possible rapprochement between Dongfeng and Volvo trucks, reported Monday the website sina.com.

The activity of Nissan cars in the joint venture will remain intact, as its agreement with Dongfeng Automobile in small utilities, sina.com said, citing unidentified sources.

The hypothesis of an alliance between Dongfeng and Volvo Trucks is regularly mentioned for years but neither industry has recently reported on the subject. 

To get the green light from Nissan, Dongfeng could allow the Japanese manufacturer to produce its premium brand Infiniti and Renault models as part of their joint venture.

No spokesman for Dongfeng could not be immediately available for comment. A representative of Nissan said the group did not have information about an agreement.

As part of such an agreement, Dongfeng Motor will resume activity heavyweights as of July 1, said article of sina.com. He gives no details on the timing of an agreement Dongfeng-Volvo, nor on that of the production Infiniti and Renault.

Volvo has broken several years ago an alliance with China National Heavy-Duty Truck due to weak sales thereof.

The reforms must be pursued in the euro area, said Draghi

The euro area is beginning to stabilize but his future will depend on the integrity of structural reforms undertaken by Member States, said Tuesday the president of the European Central Bank, Mario Draghi.

The leader, in office since last November, said the inflation risk did not materialize currently within the euro area since the output gap remained, while expressing "determined" to continue the work of his predecessor Jean-Claude Trichet in terms of price stability.

"We are constantly vigilant about inflation risk but this risk does not materialize at the moment," he said during a speech in Paris on competitiveness ;. 

The ECB continues to see signs of stabilization in the euro area which would benefit the member countries to pursue economic reforms, he said.

"We continue to see signs of stabilization although they are shy," said the central banker, before asserting that rates low in the short term together with measures to the sector would support financial growth.

The ECB has held since December two large lending operations to three years (LTRO) for banks for a total turn around of a thousand billion.

Mario Draghi said that banks should do the same to strengthen their balance sheets by retaining earnings and by reducing dividends and bonuses. 

"The strength of bank balance sheets will be a key factor in facilitating their lending activity, their primary mission," he said.

The President of the ECB has however expressed concern about the differences in competitiveness, increasing according to him, among the member countries of the euro area.

According to the ECB, labor costs rose two and a half times faster in countries with balance of payments deficit in countries that accumulate surpluses.

"Member countries must reduce their competitiveness and enhance their own prosperity and stability of the monetary union," he said. 

"If we do not reform all together, and this has been said many times early in the life of the euro, it will be difficult to maintain the integrity of the area ".

Latécoère will hire to meet demand

The aerospace supplier Latécoère will make new hires in 2012 to increase production rates and thus satisfy the growing demand of its large customers are Airbus or Boeing.

At the same time, Latecoere, which employs 4,175 people in nine countries, is still open to industry consolidation.

"We are in a phase of relative privilege where all our customers demand increases in rates," said Francois Bertrand, chief executive of Latécoère at an interview with Reuters. 

Based in Toulouse, the group was founded in 1917, is facing increased rate of production programs Airbus, Boeing and Embraer, while air traffic has increased 6% last year.

"The priority is to manage growth," said Francois Bertrand, adding that the group plans to hire at least 200 additional employees to meet this demand and avoid production delays.

"Currently, the market is booming. The high commands of last year increased its order book and therefore lead to increases in speed. "

Latécoè re projected that its turnover will increase by 10% in 2012, after rising 12% in 2011

. The business, including Airbus accounts for 50% of sales, will continue to expand in North America where it is looking for a new production site. Boeing, the second client (15% of sales, and Embraer) should play an increasingly important Latécoère in the coming years.

Deficit and debt, the company had begun in May 2010 seeking a new shareholder, a search that had failed after the deadline for late 2011.

"In the short term, what matters is the growth management, but the subject of consolidation is still on the table," says Francois Bertrand, adding that an agreement could be reached before the deadline for two to three years announced in November.

"The consolidation will be particularly important in the context of new program launches," he says. 

Latécoère, who has returned to profits in 2010, would merge with one of 15 European OEMs to create a group of at least one billion euros in turnover, Francois Bertrand said.

In 2011, the group recorded a net profit of EUR 6.6 million on a rag business of 520 million euros, while its debt amounted to 370 million, a level that expected to decline by 50 million euros in 2012.

"We returned to a normal situation where our financial resources fit our profile of cash, which was no longer the case from 2008-2009 where large slips were place, "says Francois Bertrand. 

The action Latecoere closed Friday at 11.52 euros (0.17%) showing a market capitalization of 99.187 million euros.