Consumer spending in U.S. households rose 0.4% and revenues by 0.2% in July, show statistics released Monday by the Commerce Department.
Consumer spending and showing the strongest gain in four months, receiving a slight increase in revenue.
The figures for consumption and income showed an unchanged rate in the month of June
Economists and analysts polled by Reuters had forecast an average increase of 0.3% of consumer spending and incomes in July.
The savings rate was 5.9%.
After the publication of these figures, futures on the S & P 500 have cut their losses.
The New York Stock Exchange opened down sharply Friday after the release of monthly statistics of employment in the United States, generally poorer than expected.
The U.S. economy has destroyed 131,000 non-farm jobs in July, mainly because of the end of temporary contracts linked to the census, and the private sector hired less than expected.
Economists and analysts polled by Reuters on average expected destruction of 65,000 jobs.
A few minutes after the start of trading, the Dow Jones lost 0.7% to 10,600.59 points, the Standard & Poor's 500 gave up 0.72% to 1117.69 points and the Nasdaq in 2273 yielded 0.83%, 99.
The persistence of high unemployment (the rate remained unchanged at 9.5% last month) is seen as an obstacle to sustained recovery and statistics on Friday are likely to feed fears of a prolonged weak growth or a relapse into recession.
"What it mostly means is that our economy is stagnating.We are not creating jobs, or it should be the case now, "said Wayne Thomas, head of analysis at John Thomas Financial.
The statistics of the labor market may affect the speech will keep the Federal Reserve after its monetary policy meeting next Tuesday, even if the market anticipates no change in interest rates.
Among the main contributors to the decline of the Dow are industry groups such as 3M (-1.2%) and Boeing (-1.4%).
Among the few values increase in the index, gained 1.3% Kraft Foods after its results.The number one food in North America has published a quarterly profit above expectations and raised its target to reduce costs after the acquisition of Cadbury.
American International Group took over 3.5% after its own results and the announcement of the opening of discussions for an early withdrawal of the state capital.
The Nikkei ended down 0.23% Wednesday, penalized by concerns about the strong yen and doubts over the sustainability of U.S. economic recovery.
The Nikkei lost 21.63 points to 9,278.83 and the broader TOPIX, sold 2.9 points (0.35%) to 829.35.
While studies suggest that the Chartists fall posted recently by the Japanese stock markets draws to a close, the lack of enthusiasm shown by the indicators U.S. leaves investors hungry.
The other major concern is the expectations raised by the publication Friday of the test results of resistance experienced by 91 European banks.
For values, trading companies sector has experienced a painful session after the publication of an article revealing that Daiwa Securities Nikkei was likely to report a loss for the period April to June due to instability markets after the crisis of European sovereign debt.
Daiwa Securities dropped 3.46% and its rival Nomura Holdings fell 3.81%.
Pason Group meanwhile plunged 5.77%, the investment group of employees who predicted an annual loss due to the hardness of the labor market.
The chances of achieving economic growth of 2.5% in France in 2011, as required by government depart according to a Reuters poll of economists, who consider the measures of fiscal consolidation in Europe will weigh on demand .
Seventeen economists polled by Reuters expect, thereby increasing the gross domestic product by 1.3% next year (median forecast), against 1.7% in a poll conducted in April equivalent.
The median forecast for 2010 is 1.3% against 1.4% in April.
"The austerity measures in France and neighboring countries will weigh on demand and we expect a decline in consumption and investment in a number of European countries," said Maxime Lemerle, an economist at Euler Hermes.
Economists now expect that consumer spending, a pillar of French growth, will increase by only 1.1% in 2011, when they expected 1.4% in April.
Over two thirds of French exports to Europe by the weak demand in the region should weigh heavily on trade, according to Maxime Lemerle, which forecasts growth of 1.1% of GDP in 2011, a cons, 8% previously.
The government expects growth to reach 2.5% annually between 2011 and 2013, which would help reduce the government deficit from 8% in 2010 to 6% in 2011, 4.6% in 2012 and 3% in 2013 .
Slower growth could lead to additional measures to reduce the deficit or raising taxes.
"If we have less growth, certain expenses will tend to increase as those related to employment. So I think they might have to raise taxes a bit," said Dominique Barbet, economist at BNP Paribas.
The Economy Minister Christine Lagarde said she would not rule to revise the growth forecast for 2011 after the publication in mid-August GDP figures for the second quarter.
His counterpart on the Budget, Baroin, said the deficit reduction targets were met, although growth was below forecast.
The government plans to reduce the deficit to 6% in late 2011, 40 billion euros less than in 2010.According Baroin, 15 billion will come from the extinction of the recovery plan, saving 14 billion and 11 billion of revenue increases.
Wall Street has ended sharply higher on Tuesday, posting a sixth win in a row, in response to results and forecasts of Alcoa aluminum companies.
Alcoa reported Monday better than expected quarterly results while revising upwards its forecast for global demand for aluminum.
Alcoa shares closed up 1.2% to $ 11.
"The fact we think this trend (solid results) will contribute to re-confirm the risk in the market," said Peter Cardillo (Avalon Partners).
The Dow Jones gained 1.44% to 10,363.02 points. The S & P 500 has been 1.53% to 1095.29 points.The Nasdaq Composite Index advanced 1.99% to 2242.03 points.
The S & P has gained over 5% last week, the highest weekly gain this year and scholars eagerly awaiting the results of companies to see if this rally is justified.
But the decline in volumes worries some analysts. The volume on Monday fell to a new low of six months, observes Scott Fullman (WJB Capital Group). He also noted a decrease in the total volume of options.
Low volumes generally pass to denote a lack of conviction of investors.The summer period, however, may also explain the slowdown.
Statistic of the day was the trade deficit widened in May to its highest level since November 2008.
The Apple stock has yielded 2% to 252.11 dollars, after the site specializes Consumer Reports had indicated that he did not recommend the iPhone 4, his tests have confirmed a loss of signal when the handset is required to somehow.
Action Research In Motion, maker of the Blackberry competitor, has instead increased from 3.35% to 55.6 million.
Intel, which was to publish its quarterly after the close, gained 2.14% to 21.01 dollars.
The auction site eBay jumped from 4% to 21.02 dollars.
And even if it is pursued by XPRT Ventures company which is claiming nearly four billion dollars in damages for alleged infringement of six patents related to the development of related payment systems such as PayPal.
Iberia announced it has signed a merger agreement with British Airways, a combination that will create the world's third largest airline.
The Spanish company affixes his signature to a text that defined last April, one week after her British counterpart said it had reached an agreement to cover the deficit of 3.7 billion pounds of its pension scheme .
The transaction, which will see shareholders of British Airways to 55% of all new, must still be endorsed by shareholders, which is expected in November.
Iberia has also an exit clause for three months, always linked to its assessment of the ability of BA to the deficit of its pension system, a point already in the past failed to derail the proposed merger .
"Iberia has three months to leave the project from the time the agreement (signed between British Airways and managers of pension funds) is subject to the regulatory authority of British pensions," said Iberia.
Inflation in Germany slowed slightly more than expected in June according to first estimates released Monday, a move that could fuel concerns about possible deflationary risks threatening the euro area.
Consumer prices rose 0.9% yoy according to preliminary federal statistics, whereas their increase had reached 1.2% in May
Economists polled by Reuters last week had forecast an average price increase of 1.0% over one year.
This slowdown is largely due to lower gas prices, said the Federal Office of Statistics.
From month to month, inflation in Germany remained stable at 0.1%.
"The German economy appears to have avoided a deflation proper form but was still struggling to collect inflationary pressures," said Carsten Brzeski, economist at ING Financial Markets.
The slowdown in inflation in June coincided with the debate on the impact of German austerity plan on the other countries of the euro area.
Chancellor Angela Merkel presented in early action expected to generate 80 billion euros in budget savings over the next four years, in order to achieve by 2013 the German structural deficit within the limits set by the EU European.
Across the eurozone, inflation should slow to 1.5% yoy in June, against 1.6% in May
Details of the German statistics show that consumer prices calculated at European harmonized standards (HICP) remained stable in June compared to MayOn a year they show an increase of 0.8%, against 1.2% in May
These figures could provide an argument with officials of the European Central Bank (ECB) who argue for a continuation of measures to support the economy.
"We expect German inflation (annual rate) will end the year close to zero and there is some probability that it returns into negative territory," said Jennifer McKeown of Capital Economics.
"While many peripheral economies of the euro area are moving toward a long period of deflation, the ECB has every reason to maintain an attitude of a dove," she adds.
The first estimate of inflation over the past month is calculated based on published data from six Länder.The annual inflation has slowed in each of them in June
The Paris Bourse is distributed downward and fell below 3,600 points on Thursday mid-morning, the fears surrounding the sovereign debt of the euro area resurfacing and penalizing bank stocks.
In addition there are comments from the Federal Reserve of the United States, acknowledged Wednesday that a U.S. economic recovery faltering.
A significant gap between the yields (spreads) of debt Greek and German revived fears about the euro area.
The CAC 40 index, which opened in rebounding, losing 1.17% to 3599.27 points at 10:55, the next support lying at 3580.
BNP Paribas (-4.19%), Societe Generale (-3.01%), Dexia (-2.73%) and Credit Agricole (-3.05%) recorded the largest declines the CAC 40.
"The market fell because of Greece, the spreads diverge. It's affecting the banks," said a vendor.
Other major European markets have also turned down.
Raoul Sachs, edited by Dominique Reynolds
Boursorama reported net earnings were down 64.65% to 8.2 million euros in first quarter 2010, marked by higher marketing expenses and the lack of appreciation of assignment.
Specialist banking and online brokerage subsidiary to 56% of Societe Generale, said that the decline in net profit is 11% excluding special items, that is to say, outside the capital gain 14 million euros on the sale of Bank in Spain Self recorded in 2009.
Of the top three in the year, revenues Boursorama expand 5.5% to 48 million euros, while operating expenses rose by almost 15% to 35.7 million because of strong higher marketing expenses.
In February, Hugues Le Bret, the new CEO of the company, had expressed a wish to accelerate the development of Boursorama in online banking with the aim of increasing the number of openings bank accounts.
In the first quarter, new accounts have been multiplied by 2.4 over the first three months of 2009, with 15,810 new bank accounts.
The company intends to further consolidate its market share in online banking with the launch this month of an advertising campaign throughout France.
"While maintaining our fixed costs under control, we decided from the beginning of the year to enhance our strategy of winning through, inter alia, to increase our marketing spend," advised Hugues Le Bret, cited in the statement.
As it grows more in the online bank's new management wants Boursorama balancing company revenue by decreasing the share of income from trading.
The Socgen, parent Boursorama, has also indicated in late April that the results of its subsidiary since January 1 are recorded in its retail banking division in France and not in the asset management business, banking private and investor services as before.
General The Company publishes Wednesday its first quarter results. The consensus reached by the editor of Reuters expects a net profit of 614 million euros against a loss of 278 million a year earlier.
The action Boursorama closed Monday at 9.23 euros, giving the company a market capitalization of nearly 806 million euros.
Swiss bank UBS announced a net profit of 2.2 billion francs (1.5 billion euros) in the first quarter of 2010, after a loss of 1.98 billion francs in the same period last year.
Analysts polled by Reuters on average expected a net profit of 2.02 billion francs.
The bank had warned the markets before its general meeting that it anticipated a positive result before tax "of at least 2.5 billion francs.This post finally rises to 2.81 billion for the period under review.
On this occasion, the school had indicated that the net outflow of money in all activities had been "significantly lower than the fourth quarter of 2009.
UBS, which included a net outflow of 8 billion francs in wealth management and Swiss Bank, has reported a final amount of 8.2 billion.
The bank anticipated output of 7 billion in Wealth Management Americas and 3 billion for its asset management, and withdrawals have finally amounted to 7.2 billion and 2.6 billion respectively.
The investment bank has marked her return, earnings before taxes have tripled to 1.19 billion francs from 297 million a year earlier.The segment of trading bonds, currencies and commodities (FICC) has quintupled its revenues to 2.17 billion against 496 million a year earlier.
The equity ratio improved to 16% at end March 2010 against 15.4% at end December 2009.
"We are well positioned to achieve our medium term," said CEO Oswald J. Grübel, quoted in the statement.
UBS expects a gradual improvement of the results of asset management and asset management, adding that the net outflow of capital would be "relatively moderate in the coming time."