The Industrial company 3M Co, which produces over 55 000 different products, reported third-quarter profit that surpassed analysts’ expectations. Net profit for the third quarter of 3M is 957 million dollars or 1.35 dollars per share in earnings per share of 1.41 dollars for the same period last year. If you exclude certain one-off effects, profit of the company is 1.37 dollars per share, the average Wall Street expectations were for earnings of 1.17 dollars per share. 3M sales fell by 5.6 percent annually to 6.2 billion dollars. Since the beginning of the conglomerate in 2008 was shortened 5 800 jobs in order to optimize the cost. 3M’s shares started today’s session of the New York Stock Exchange to rise from 38 cents to 76.33 dollars. Since the beginning of the year they rose by 33 per cent. While 3M raise profit forecasts for the entire 2009 years of 4,5-4,55 dollars per share. The company’s previous forecast was for profit of 4,1-4,3 dollars per share.
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The main stock indexes in the United States fell in early on the last trading session this week, after the financial results of General Electric and Bank of America disappoint investors, and the index of consumer confidence in the University of Michigan unexpectedly decreased. As a result, Dow Jones IA away from the one-year peak, which subdued during yesterday’s session. Two hours after the start of trading the index of the 30 largest companies on the New York Stock Exchange decreased by nearly 1 percent to 9962.9 points. The wider S & P 500 retreated further to 1.1 percent to 1084.2 points while the index of companies by the exchange Nasdaq – Nasdaq Composite, lost 1.3 percent to 2145.5 points. Financial and technology companies are ranked among the top companies in the losers of the session. The loss of the largest in size of its assets to U.S. Bank Bank of America for the third quarter was greater than expected. Investors ignored the good financial results on Google and IBM, and the rise of industrial production by 0.7 percent in September.
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The largest U.S. bank Bank of America reported second loss within one year. For the period July September financial institution has a negative financial result of 1 billion dollars or 26 cents a share. The last loss was reported for the fourth quarter of 2008. The result of the previous quarter, in contrast to profit of 1.18 billion dollars for the same period of 2008, analysts expect losses to be at the rate of 12 cents per share. The quarterly report will be the last that will be the responsibility of the current CEO Kenneth Lewis, who left the institution at the end of the year because of criticism that suffered after the acquisition of Meriil Lynch. Exactly acquired at the beginning of this year, investment bank has contributed to smaller losses in this quarter because of good results from trading in shares, debt securities and currencies.
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The European stocks today reported the strongest decline in a week following the unexpected drop in investor confidence in Germany. Shares in Barclays fell by 3,4 percent after analyst Meredith Whitney lowered its assessment of Goldman Sachs Group to “neutral” and spoke favorably about the banking sector. Total banking sector represented in the index Dow Jones Stoxx 600 fell with 1,3 per cent. Dow Jones Stoxx 600 fell 1% to 241.94 points as all 19 industry groups in the pan-European index retreated. Analysts commented that, once achieved, high levels of the indexes, any disappointing economic statistics could upset the market. Investors will look for signs of recovery in sales data in corporate reports. The CEO of Deutsche Bank Josef Ackermann told a news conference yesterday that the global financial industry and the economy remained “fragile” because of the risk of corporate bankruptcies and rising unemployment.
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The President of the European Central Bank, Trichet told a news conference after the meeting of the institution that current levels of base rate are appropriate and recent economic data confirms this. At the meeting it was decided to maintain the rate of 1 percent, supported unanimously, he added. According to him, it was noted that good signals for economic stabilization and expects inflation to moderate in positive levels, and inflation stability will be maintained to support the private costs. Trichet said the moderate growth of loans maintain low inflation. In August the annual inflation rate was minus 0.2%. Economic recovery, although expected to be “uneven”, said President of the ECB. He warned that the risk to see if further recovery of tightening fiscal policy. Departure from current policies of fiscal stimulus must be made at a time when the recovery remain
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The Economic recovery in the U.S. reached in recent weeks is not enough to be suspended in government incentives. Now it is essential to reduce the highest level of unemployment of 25 years. This concludes the U.S. Federal Reserve (Fed) at its last meeting. During the project the U.S. economy from the bottom of the planned purchase of various acts by the central bank will not provide a gradual increase of the production capacity in the economy, indicated by the Fed. U.S. central bank also said it will complete its program of buying mortgage securities guaranteed, which is worth 1.25 trillion. dollars at the end of March next year rather than in December, as was the previous period. The best prospect for the economy given by the Fed after the bankruptcy of Lehman Brothers, analysts say, will provide the basis of President Ben Bernanke treasury stocks for a long time to record low levels of primary interest, and not to reduce the size of the planned 2.1 trillion. dollars to support the economy and financial sector.
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Despite his criticism to the U.S. dollar, China is still eager to absorb American government bonds. This actually made for other foreign and U.S. investors, who expect low inflation even if the depreciation of the dollar. Since the beginning of the year, foreign investors have swallowed 43.1 per cent of those issued by U.S. government bonds worth 1.41 trillion. dollars. For comparison, last year foreigners lost 27.1 percent of emissions, which were up 527 billion dollars. Currently 15 percent retreat dollar index against the tip of 4 March does not disturb the auction, organized by the Treasury of the United States, transmit Bloomberg. This indicates that the fund-managers are confident in the soundness of the dollar, as inflation expectations remain fairly low despite the high money supply. Since the beginning of the year the position of China in U.S. government bonds has risen by 10 percent and now exceeds 800 billion dollars. Only in July did the country has made purchases worth 24.1 billion dollars.
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Most stocks traded on major European stock markets tumbled on Friday, the first reduction in four sessions. Pan-European index Dow Jones Stoxx 600 lost 0.48 percent of its value, lowering to a level of 244.92 points. However, the indicator is above 55% recorded in March of bottoms. At regional level, the French CAC 40 fell 0.19 percent, while the German DAX was down by 0.48 per cent. In contrast, the British FTSE 100 managed to record a new increase and grew by 0.17 percent. Among decreasing positions during today’s session ran out of the car companies shares, as investors apparently remain dissatisfied with the displaying of the Motor Show in Frankfurt. Renault’s shares fell by 3.5 percent, while those of Volkswagen fell 6.4 percent.
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The Romanians will have income comparable to the average income in the European Union at the earliest after 40 years. This is indicated by the analysis of rating agency Moody’s, wrote newspaper Adevarul quoted by Focus Agency. “We will have a relatively long period until the benefits are closer to their average level in the EU. This process will continue for a long time, probably about 40 years, “says a report of the agency. In addition, Moody’s believe that the Romanian economy will continue to record growth after the crisis, but at a slower pace than recorded in the period before the recession. Last year, income in Romania amounted to an average 46% of their average level in the EU, which is calculated by comparing the purchasing power – the main indicator of development, says Eurostat.
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The Economy of India marked the first acceleration in the growth of its gross domestic product since 2007, giving a sign that began more lightly to bear the consequences of the crisis. The country’s economy grew by 6.1 percent leeks second quarter compared with same period last year, noted the statistical office in the country after the first quarter increase was 5.8%. Economists had expected growth of 6.2%. The third economy in Asia joined to China and Japan and other countries in the region where he had spent more than 950 million dollars in state funds poured in support of the national economy.
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