Hot Economic News Releases

The plan to support the U.S. economy contributed 4.5% in real gross domestic product in the second quarter of 2010 and allowed to deliver up to 3.3 million people in employment, said Tuesday Budget Office Congress (OBC).

The CBO estimates, a bipartisan agency, believes the support plan, whose effects are challenged by the Republican Party, has prevented the economy contracted between April and June

Economists polled by Reuters expect the revised figures, which will be released Friday, show that GDP grew at an anemic pace of 1.4% in the second quarter, less than the 1.7% increase announced in the first estimate.

The CBO also estimates that support plan has put between 1.4 and 3.3 million jobs in the second quarter.

The total cost of the plan to support the U.S. economy should come out to 814 billion dollars while the CBO anticipated amount of around 862 billion dollars from a previous estimate.

BNP Paribas publishes a net profit increase of 31.2% for the second quarter, above expectations, thanks to a sharper than expected decline in provisions for bad loans, offsetting lower revenues from its market activities.

The second bank in the euro zone by market capitalization, after Spain's Santander, said in a statement that recorded a net profit of 2.105 billion euros in the quarter ended June 30, with net banking income up 11 , 8% to 11.17 billion.

His provisions for risk of loss on the credit fell by 53.9% to 1.08 billion euros.

The consensus of the writing for Reuters on average expected a net increase of only 8% to 1.7 billion euros and provisions were down 36%.

BNP Paribas also said to be "ahead" on its program of synergies from the integration of the Belgian bank Fortis acquired last year, with 402 million euros of synergies on a target of 900 million.

In corporate finance and investment, the decline in profit before tax is also less than expected at 16.4% in the second quarter against 20% expected by the market.

Elsewhere in Europe, Swiss banks UBS and Credit Suisse have also announced last week the quarterly results above market expectations.

The German group Deutsche Bank's side recorded a drop in supplies.

The European banking sector has benefited in recent days a series of good news.

The results of stress tests that have been submitted 91 banks in the European Union and the announcement by the Basel Committee that it would make its proposed regulations have indeed helped to allay investor concerns about the soundness of sector balance sheets.

Since the beginning of the year, the benchmark Stoxx 600 European banks rose 0.36%. The action of BNP Paribas has cut its losses recently but it is still in decline of 5.7% since 1 January.

Societe Generale, the second French bank by market capitalization, reports earnings on Wednesday.

Boeing released a quarterly earnings above expectations but down from last year due to lower deliveries of aircraft.

The U.S. group, world number two sector behind Airbus (EADS) has achieved in second quarter net earnings of $ 787 million, or $ 1.06 per share, against 998 million ($ 1.41 per share) a year earlier.

Financial analysts had expected a profit of $ 1.01 per share according to Thomson Reuters I / B / E / S.

The quarterly revenue fell 9% year on year to 15.6 billion dollars.

Sales of the division of civil aviation has dropped 12% to $ 7.4 billion aircraft deliveries declined by 9%.Boeing Commercial Airplaines recorded 88 orders for the quarter and 20 cancellations.

The backlog stood at 3,304 civil aircraft late June, for a value of 252 billion dollars.

The turnover of the defense business has declined in parallel from 8% to $ 8 billion, mainly due to lower volumes in the Network & Space Systems branch.

Net sales of Boeing Capital has dropped 3% to 162 million.

Mizuho Financial Group, Sumitomo Mitsui Financial Group and Mitsubishi UFJ Financial Group can view each more than 100 billion yen (885 million) profit for April-June period, reports the Nikkei newspaper.

The newspaper claims that large Japanese banks have grown their results for their fiscal first quarter thanks to their trading operations, while recording lower losses on bad loans through a smaller number of large bankruptcies.

Mizuho, which posted a loss of 4.4 billion yen for the period April to June 2009 due to losses on the CDS (credit default swaps) should post a profit of around 150 billion yen for the same period this year with its trading, the Nikkei wrote.

Sumitomo Mitsui Financial Group should in turn generate between 150 and 200 billion yen profit, against a profit of 72.7 billion last year, the newspaper said without citing sources.

Mitsubishi UFJ Financial Group for its part should record a profit of more than 100 billion yen, against 75.9 billion a year earlier, writes the Nikkei.

Banks are under pressure to improve their credit operations, while long term rates are at their lowest level in five years, also highlighted the daily.

The International Monetary Fund (IMF) intends to increase its lending capacity of 750-1000 billion dollars to prevent future financial crises, the Financial Times.

The organization wishes to enter into agreements to advance on a case by case basis with member states, rather than offering loans under certain conditions, the newspaper said without citing sources.

"Even during periods of crisis, a large fund that can take massive can help prevent crises," explained Dominique Strauss Kahn, IMF managing director, in the columns of the Sunday edition of the FT.

"The fact that the decreasing financial role does not mean we can do without a big fire power (…) A fund of 1.000 billion is a wise prediction," he says.

South Korea, which currently chairs the G20 group, hopes to convince its partners to approve the draft at the next summit of the organization, to be held in November in Seoul, says the author of the article.