Morgan Stanley reported earnings slightly higher than expected

The U.S. bank Morgan Stanley on Wednesday reported a 54 percent increase in quarterly revenue, slightly surpassing market expectations.
Morgan Stanley reported aernings and  revenues of 8,000 million dollars, while analysts had expected U.S. $ 7.926 million, according to Reuters Thomson I / B / E / S.
The bank posted a profit of $ 1.09 per share, including special items.

 

Morgan Stanley profit

The entity's shares rose 2.4 percent in pre-market opening.

U.S. stock futures rise, gaining strength results season

The stock futures rose on Monday in a sign that the S & P 500 could rebound from its worst slide in three weeks, as the quarterly earnings season gains strength. Investors are watching the numbers of firms in the second quarter for signs about the strength of economic recovery last week after receiving weak indicators.

On Friday, U.S. stocks plunged after a drop in consumer confidence and disappointing levels of income of the conglomerate GE and Citigroup Inc and Bank of America Corp. this week, 122 companies in the S & P 500 are expected to report quarterly results.

"What we really have here is a market that is trying to assess how much it has slowed the economy and what this means in terms of future growth of earnings," said Peter Cardillo, chief market economist for Avalon Partners in New York. Futures on the S & P 500 rose 2.4 points, while the Dow Jones industrial average advanced 39 points and Nasdaq 100 climbed 2.25 points.

Around 3.8 million Italians living in absolute poverty

Italy has 3.8 million people in poverty "absolute", representing 5.2 percent of the population, according to the report "Poverty in Italy in 2009" published today by the Italian National Statistics Institute (ISTAT).

Istat considers that a person is below the absolute poverty line when their purchasing power does not reach "the minimum expenditure necessary" to acquire "essential goods and services for a family to get a minimally acceptable standard of living."

The agency set the minimum at 983 euros this year, 17 euros less than in 2008.Istat also noted that the poverty rate "relative" is at the 10.8 percent of households, ie 7.8 million Italians.

This situation is exacerbated by the families residing in Sicily, Campania, Basilicata and especially Calabria, all provinces in southern Italy.

With respect to absolute poverty incidence, it has increased in those households headed by a person who works for someone else (from 5.9 percent to 6.9 percent), while it has declined in those where the head family is a self-employed (from 4.5 percent to 3 percent).

Poverty "absolute" is more prevalent in large families, with three or more children, whose rate is at 9.4 percent, families where no member is working (33.8 percent) and those in charge a person seeking employment (26.7 percent).

The report, conducted during 2009 on a sample of 23,000 families, has confirmed that the numbers remain stable compared to previous years.

Russia calls on Germany to help it modernize its economy

Russian President Dmitri Medvedev on Thursday called on German companies to become more involved in modernizing Russia's economy, during a visit by German Chancellor Angela Merkel to strengthen bilateral cooperation.

Merkel took second visit to Yekaterinburg (in the Urals, central Russia) is clarified to require the murder of Russian activist Natalia Estemirova human rights, perpetrated a year ago and had shocked the world.

But the economy was the main focus of the interviews between the two leaders, regardless of the "Petersburg Dialogue", a discussion forum devoted to the development of bilateral relations, especially trade.

"I hope that German companies have long experience in this field in this endeavor" of modernization in Russia, said Medvedev told businessmen from both countries, highlighting the restructuring of companies in Germany after the reunification of the country in 1990.

Medvedev invited German companies to invest in Russian companies, which have so far low foreign participation.

"I hope that German companies involved in the modernization of the companies which are interested in, considering my decision to reduce the number of strategic companies," he said.

Medvedev announced in June that the number of Russian companies deemed "strategic", and in which the state was obliged to hold a stake would be reduced by 80%, opening the door to greater foreign participation in the Russian economy .

"Given the association strategy in the economic area, I think the prospects in this area are not too bad," Medvedev said on the other hand, Merkel met for the fifth time in so far this year.

The "strategic alliance" between Russia and Germany should include railways, aviation and energy industries, according to the Kremlin.

These agreements include an agreement between the Russian railway company RZD and the German industrial group Siemens, for a total of 2,800 million dollars and the delivery of 200 regional trains.

Merkel traveled to Russia together with 25 large German companies as part of a tour that will continue in China and Kazakhstan.

Germany is Russia's largest trading partner, and both countries are partners in the Nord Stream pipeline project, which will unite under the Baltic Sea and will supply Russian gas to Europe.

U.S. Congress about to give Obama the Wall Street reform

The Senate on Thursday to pronounce on the further reform of financial regulation in the U.S. since the 1930s, in a vote that put an end to a long debate in Congress and President Barack Obama will provide a crucial legislative victory.

The final text of more than two thousand pages of the law, "Dodd-Frank" - the name of its principal authors, Senator Chris Dodd and Rep. Barney Frank - was designed to try to prevent another crisis like that of 2008 that precipitated the U.S. economy into the abyss.

President Obama, personally involved in the ongoing reform debate this for almost a year, once again encouraged the Senate on Tuesday to act "quickly" so that they can sign it into law next week.

A first vote on closure of the debate took place on Thursday morning, and the final vote could come quickly if the Republicans gave up to thirty hours of debate that should follow every vote closing.

"We will finish this bill" this week, said Tuesday to the press the head of the Democratic majority in the Senate, Harry Reid.

The text, which seeks to extend regulatory control to whole sections of finance which escaped him, notably the creation provides a body of financial consumer protection within the Federal Reserve (Fed), and prevents the rescue large financial institutions at the expense of taxpayers.

The House of Representatives has approved on 30 June by 237 votes to 192 the final text common to both chambers, the result of intense negotiations bicameral.

Earlier this week the Democratic majority, which controls 58 seats out of 100 in the Senate, was the accession of three Republicans - Olympia Snowe, Susan Collins and Scott Brown - which enabled him to gather the 60 votes necessary for approval text.

But the other 38 Senate Republicans are determined to mark their opposition to this bill, noting in particular that gives too much power to regulators, which failed to prevent the financial crisis.

When the unemployment rate remains historically high in the United States in about 10%, Obama and Democrats have criticized Republicans for months before the midterm elections in November because of his opposition to reform.

The adoption of this reform will be a second major legislative victory for Obama this year, after the reform bill of health coverage in March.

Among the other highlights of the proposed measures include a provision for better control of the vast market for derivatives traded mutual agreement. These tools were speculative in the center of the latest U.S. financial crisis.

The text also contains a measure called the "Volcker rule" by the name of Obama's economic adviser, Paul Volcker, whose idea is to keep commercial banks away from the "temptation" to take risks to focus on their activities credit.

The project also creates a supervisory board of financial stability. However, the reform was watered down by last-minute commitments. Commercial banks may for example continue to market certain investment products.

Brazil stocks, currency fall with external spaces after U.S. data

The bag and Brazil's currency fell on Wednesday, affected by external mood after disclosure worse-than-expected U.S. retail sector. The benchmark index of the Bolsa de Valores de Sao Paulo, the Bovespa, lost 0.32 percent to 63479.46 points, which returned some of the gain of 1.15 percent on Tuesday.

The financial remittance of the session was 4,700 million reais (U.S. $ 2.664 million), below the average of 6,500 million reais verified so far this year. July was the month with the rotation of the Bovespa in the year, with an average of 5,100 million reales to the 13th. In May the busiest month so far this year, the average transaction amounted to 7,300 million reais. "Today the market continued movements outside a lot," said Newton Rosa, chief economist at SulAmérica Investimentos.

"The outside was very volatile. At one point (the influence) came from the results of companies such as Intel, which led the market in the morning. Then reported retail sales data (U.S.), which were lower than expected by the market, "he said. The U.S. retail sales fell 0.5 percent in June, more than expected.

Later, the Fed revised downward the estimate of economic expansion and projected growth of gross domestic product (GDP) up 3.5 percent in 2010. In the local market, shares of mining company Vale lost 0.65 percent to 38.30 reais, while Petrobras oil company closed about stability, to 27.30 reais.

The titles of the steel industry were the most influential in the fall of the index, most notably those of the Usiminas steel plant, which tumble down 3.08 percent. Some of the titles were the biggest gainers of local retailers, such as Lojas Renner, which jumped 4.47 percent.

The real, meanwhile, has depreciated 0.63 percent, affected by external suspicion after the release of the fall in U.S. retail sales.

The real closed trading at 1.762 / 1.764 per dollar in the interbank market, then recovered 0.68 percent on Tuesday. Globally, the dollar fell 0.34 percent against a basket of reference currencies. ($ 1 = 1.764 reais)

Specialists predict that global economy will slow

The global economy will slow in the coming months as China and the United States reduce its rate of expansion and governments around the world are trying to sort out their finances, polls showed on Wednesday, Reuters More than 600 economists.
However, it is expected that several Asian economies such as India and South Korea have better performance than expected this year than was thought a few months ago, which highlights the disparity of global economic recovery from the financial crisis and deep recession.

Reuters polls produced around the world in recent days show cuts to projected U.S. growth in coming quarters and expect the Fed will not raise interest rates until next year.

But at a general level, economists are still optimistic about the global outlook. The estimate for global growth was revised upward to 4.2 percent this year and 4.0 percent for 2011, slightly better than the estimate in a survey made three months ago.

Analysts also agree that the quarter just ended was a stronger expansion than expected, so the slowdown in the second half of the year could have a painful contrast, even when things pick up again in 2011.
"Globally, things are slowing but (...) the slowdown comes from what appears to be stronger levels of growth during the second quarter than many expected," said Dominic Wilson, director of macroeconomic research at Goldman Sachs in New York.

"The more complex issue is how far to trust a higher than expected growth outside the United States," he said.

The result is made known at a time when U.S. companies begin their season with solid earnings reports reports.

The probability of seeing a slowdown in growth coupled with benign inflation levels, implying that major central banks that interest rates remain at record lows, as the U.S. Federal Reserve and European Central Bank will keep them free changes until next year.

However, many central banks and have raised, such as South Korea, Canada, Sweden and New Zealand, and is likely to tighten policy again this year, perhaps several times in some cases.
In China, the third largest world economy, growth is expected to cool gradually as the Government withdraws its economic stimulus package implemented during the crisis. Despite this, its economy would see a 10 percent expansion this year and 9.0 percent in 2011.

However, there have been clear signs of a slowdown in global growth, especially in the last round of indices for the purchasing managers in the private sector, both for manufacturing to the service sector.
High unemployment remains one of the greatest risks to the recovery around the developed world, putting pressure on family budgets, weakened by the financial crisis and now face higher taxes in several countries.

According to the survey, the U.S. unemployment rate averaged 9 percent or more in every quarter except one, the horizon of the forecasts. Is expected to fall by 8.7 percent in the last three months of next year.

Unemployment is expected to remain around 10 percent in the euro area as well, where many governments have adopted austerity measures put under pressure to the labor market if the private sector is not strong enough.

World's richest man buys gold mine

Carlos Slim bought a mine Goldgroup Mining

The Canadian mining company Mining Goldgroup selling sales reported to Frisco, part of Grupo Carso (owned by Carlos Slim), El Porvenir project for U.S. $ 25 million.

The same is a gold project and is located in the Mexican state of Aguas Calientes.

It should be noted that Carlos Slim is the richest man in the world with U.S. $ 53.500 billion, according to Forbes magazine.

Oil touches the 78 USD pushed by falling U.S. crude stocks

Oil prices neared the $ 78 threshold on Wednesday, boosted by the announcement of a major lower-than-expected crude stocks in the U.S..
Around 1600 GMT, a barrel of North Sea Brent for August delivery traded at $ 77.44, up 79 cents on Tuesday's close.

At the same time, the West Texas Intermediate (WTI, designation of "light sweet crude traded in the U.S.) for July delivery rose 75 cents and stood at $ 77.90 on the New York Mercantile Exchange (Nymex).
After a break in the morning, oil prices continued on Wednesday with their progression in line with the increase of more than two dollars on Thursday.

Black gold prices were boosted by news that U.S. crude stocks fell for third consecutive week as announced by the Department of Energy (DoE).
Crude stocks fell 5.1 million barrels (mb) to 353.1 mb in the week ended July 9. Analysts surveyed by Dow Jones Newswires forecast a decline of only 1.2 mb.

By contrast, gasoline stocks rose 1.6 kb to 221.0 kb, where analysts expected to hold steady, held back a stronger rise of crude oil.
For analysts at Barclays Capital, the surplus stock that remains in the U.S. and Europe should decline rapidly, thanks to a progressive rapprochement between supply and demand.

Therefore, "the prices should go up," estimated, adding that the WTI in New York could reach $ 84 the smear in the third quarter and $ 87 in late 2010.

U.S. shares rose slightly after Intel results

Investors also awaited a statement from the Federal Reserve later on Wednesday about the outlook for the U.S. economy.The negative figure of the day was that U.S. retail sales fell for the second month in June dragged down by weakness in auto dealerships and gas stations, a reminder that the economy continues to face problems.

Other data showed that U.S. business inventories rose 0.1 percent in May, slightly less than the 0.3 percent increase had been expected.
Shares of Intel, a Dow component, climbed 3.57 percent, a day after reporting better than expected results.

Its figures allayed fears of a slowdown in business spending on technology.
'The gains have been much better than expected, but weak sales suggest that people expect a slowdown in the second half, said Bruce Bittles, chief strategist at Robert W Baird Nashville.

The Dow Jones industrial average rose or 0.32 percent, at 10396.24. The rate of Standard & Poor's rose 0.31 percent to 1098.72 and the Nasdaq Composite index advanced 0.79 percent, to 2259.85.
The Fed's economic forecast will be released along with minutes from its latest monetary policy meeting.

Some officials estimate that the Fed will cut forecasts for U.S. economic growth, in line with recent reductions in Wall Street economists.
"It is problematic if the Fed is concerned about the slowdown in the second half of the year, but profits have been removed from the scene a second recession, which was on everyone's lips, creating a deep pessimism," said Bittles.

Spain: VAT tax rises to reduce the deficit

The increased value added tax (VAT) took effect on Thursday in Spain, as part of government efforts to limit the public deficit, while the Spanish economy for weeks is under scrutiny of the institutions and markets financial, to doubt its soundness.

VAT increased by two points, from 16% to 18%, prices of many products such as appliances, leisure products and alcoholic beverages.

From 7% to 8% in food, soft drinks, hotels and catering.

Products called "first necessity" (rice, eggs, bread, fruits and vegetables) are not affected by the increase.

This increase in the VAT comes into force to coincide with the first day of summer settlements, through which traders expect to delay the first negative effects on sales.

The VAT hike was announced in September by the Socialist government of José Luis Rodríguez Zapatero and approved by parliament in December.

The measure, along with others taken by the government, will help solve the "grave and tremendous" deficit problem that has now Spain and credibility with the markets, said Thursday on the radio RNE Secretary of State for Finance, Charles Ocaña.

The government approved in May a harsh austerity plan 15,000 million for 2010-2011 and with it hopes to reduce the public deficit, which reached 11.2% of GDP in 2009 to 3% in 2013.

The VAT increase will have a "limited" in the pockets of the Spanish, according to Ocaña.

According to Spanish media, representing an average annual increase of 300 to 350 euros in the family expenditure.

Car construction companies fear a negative impact and anticipated an average reduction of 30% of sales in the second half, due to a combined effect between this increase and the end of subsidies from the government, which helped to increase sales in the first half .

Wall St falls apart in the worst quarter since the collapse of Lehman

U.S. stocks fell on Wednesday at the end of a disappointing second quarter, in another low volume session as investors found little reason to be at risk to conflicting economic data.

Wednesday's session ended like many others during the quarter, with a last-minute sell-off due to buying interest waned and investors sold the worst performers in the worst quarter since the crisis hit market the collapse of Lehman Brothers."He removed all the garbage on the side of the boat," said Peter Kenny, managing director at Knight Equity Markets.

"If I had a little extra boost, they would be able to sell these things a little more expensive and would not have this kind of pressure at the end of the day," he said.The Dow Jones industrial average fell 96.28 points, or 0.98 percent to 9774.02 points. The Standard & Poor's 500 lost 10.53 points, or 1.01 percent to 1030.71 points.

The Nasdaq Composite fell 25.94 points, or 1.21 percent to 2109.24 points.

In the second quarter, the Dow Jones lost 10 percent, while the S & P 500 and Nasdaq is down about 12 percent due to concerns about sovereign debt in Europe and the sustainability of economic recovery in United States .

The S & P fell below the 1,040 points it had held since February, which come in a technical correction to the low suggesting that there could be a further decline in the next five months.

Technology shares were among the hardest hit, in a session in which the roles of Google Inc shed 2.1 percent to $ 444.95, and Apple Inc lost 1.8 percent, to 251 , $ 53.

Data published on Wednesday showed business activity in the Midwest grew slightly more than expected in June, but a report showed weakness in private sector employment, a critical part of economic recovery.

The index of oil services sector of Philadelphia was among the few that stood out, with an increase of 0.02 percent, helped by an increase of 1.8 percent in the shares of Baker Hughes Inc, to $ 41.57.

The index has fallen 20.3 percent in the quarter, and 22.4 percent from BP Plc's oil spill in the Gulf of Mexico.

Dollar extends losses, plays at least seven months against the yen

The dollar fell on Thursday to a seven-month low against the yen, amid a general decline because investors tried to curb their losses because they suspect about the dollar's lowest level of the year. The dollar fell to a floor of 87.79 yen, its lowest level since December 2009, according to Reuters data.

The loss of the greenback against the yen led to the dollar index, which measures its performance against a basket of six currencies of reference, sank to its session low of 85.516 at the same time, the yen climbed across the board by its status as a refuge currency, taking the Australian dollar to lose nearly 1 percent on the day at 73.35 yen