The European Union should exclude public investment calculations of budget deficits and issue Eurobonds to promote growth, said Sunday the chief economist of the Organization for Co ; operation and Development (OECD).

In an interview published in La Stampa, Pier Carlo Padoan believes that the "fiscal pact" aimed at controlling public finances in EU countries should not be renegotiated, everything ruling in favor of new rules on assessment of deficits and debt.

"Capital expenditure should be excluded from the calculation of deficits and debt. Eurobonds should be introduced, "said he, resuming his account the positions of the Italian government led by Mario Monti

….. These two ideas …. are, so far, no takers in Germany, where it is estimated that Eurobonds may be considered before a fiscal discipline is implementation in the euro area

. Pier Carlo Padoan also said that the risk of Greece leave the euro zone increased …

…… "This risk exists and is greater than six months ago," saying that the consequences of default Greece would be "catastrophic", judging the passage "irresponsible" those who minimize the consequences

.

The Tokyo Stock Exchange Tuesday redid some of the ground lost the day before in the wake of the results of elections held Sunday in Europe, although investors say they are still cautious about the dice veloppements future policies.

The Nikkei gained 0.69% or 62.51 points to 9,181.65 and the Topix broader took 4.51 points (0.58%) to 776.57.

Monday, the Nikkei plunged 2.8%, which was its biggest drop in one day of the last six months.

The election, even anticipated by the markets, Francois Hollande to the French presidency but also the outcome of parliamentary elections in Greece, where ; no majority emerges in Parliament, had indeed been a breath of concern on Asian financial markets. 

"We do not yet know what lies ahead for Greece, we do not know what the new coalition will look like (…) and the Nikkei is not likely to surge as these uncertainties remain," said de clared Toshiyuki Kanayama, market analyst at Monex.

The action Marubeni jumped 3.77% after a source said that the fifth largest Japanese trading house was in advanced talks to buy Gavilon broker cerebral ; ales and U.S. energy for some $ 5.2 billion.

Sales of Mercedes-Benz, the brand upmarket Daimler Group, rose only 3.6% in April, due to a sharp decline in sales volumes in China due to the effect a temporary change of models.

In a statement released Friday, Daimler said the decline in China was due to the low availability in this country in April of popular models like the GLK, a mid-road range, which only came out recently its Beijing plant.

"Mercedes-Benz is on track to achieve its target of double-digit growth in China in 2012," it said in a statement.

China has become the main source of earnings growth for German manufacturers. This is the most important market for Audi and BMW.

Sales of Mercedes have involved 104,344 vehicles in April, bringing to 418,246 the number of automobiles sold by the brand since the beginning of the year, an increase of 9.7%.

April is currently the lowest of the year in terms of growth. The rise in worldwide sales of the brand was 5.1% in January from 20.3% in February and 11% in March.

In France, the manufacturing PMI for April is for the eighth time below 50 means a contraction in activity. It is even lower in the eurozone. Germany is also affected. A worker at the assembly plant of Alstom's TGV Reichshoffen.

The activity of the French manufacturing industry remained very depressed in April, very close to its lowest level for 33 months, recorded in March, announced Monday the firm Markit in a final estimate. The manufacturing PMI rose to 46.9 points in April, even lower its first estimate (47.3 points) but slightly higher than in March (46.7 points). Located for the eighth time in the last nine months to below 50 points, it signals a contraction.  

"The weakness of the French manufacturing sector continues in April, manufacturers reporting a decline of particular concern in the volume of new orders," said Jack Kennedy, economist of the firm. Companies, he says, "Yet again, a weak domestic demand, but also report weak sales in European markets". The poor performance of French manufacturing firms resulting from a further decline in new orders in April, with a tenth consecutive month of sales and the contraction rate highest since three years, says the firm.

According to companies surveyed by Markit, this reflects mainly the weak domestic market, the foreign sales down only marginally. Reducing the workload, manufacturers continue to downsize in April, Markit adds, noting a rate job cuts at its highest level since July 2010. The purchase prices have also continued to rise in the French manufacturing sector in April, driven up by fuel prices and raw materials. Rising prices "factory" is however the lowest since three months, due to strong competitive pressures on businesses. The PMI is compiled from a survey of over 400 companies operating in the manufacturing industry in France.

Activity in the manufacturing industry has also contracted sharply in April in the euro area, falling to its lowest level in nearly three years. The PMI rose to 45.9 points in April against 47.7 points the previous month, its lowest level in 34 months. This is slightly lower than the initial estimate of 46 points, the company said Markit. Disturbing fact: the weakness of the manufacturing sector is no longer limited to the most fragile countries in the euro area since the German PMI shows a low of 33 months (to 46.2 points) and that the contraction is accelerating in the Netherlands .

"The manufacturing sector in the euro zone is sinking into a new phase of recession in April, the latest PMI data are consistent with revealing a disturbing decline in quarterly industrial production by over 2%," said Chris Williamson, chief economist at Markit. The origin of this deterioration: the decline of manufacturing, itself weakened by the sharp contraction in new orders. Businesses in the euro area face a weakening of demand in both domestic markets, where the austerity measures put in place weigh on demand and exports.

"Germany has experienced the full this fall in exports, the lower volume of new export orders received by German manufacturers to accelerate in April and causing contraction of German production for the first time since the beginning of year, "said Markit. The future remains bleak. Faced with weak demand in southern Europe, "the sources of growth appear to be limited, unless a strong rebound in exports outside the euro area," said the company Markit said in a statement.

The title Imperial Tobacco gained more than 2% Tuesday morning after the world number four cigarettes announced better than expected results, set a share buyback program of £ 500 million and said he would return to growth in sales.

The British group, owner of West brands, Gauloises, Lambert & Butler, Davidoff and Fortuna, was reached on the six months to end March 1 adjusted earnings per share up 5 3%, 93.1 pence against an average forecast of analysts of 92.7 pence, according to Reuters data. 

Imperial Tobacco, which runs more than 340 billion cigarettes a year, said its performance over the past six months had been laid by the end, both a price war in Spain and destocking in the U.S. and Ukraine.

In the first six months of fiscal 2011-2012, the increase in turnover stood at 3.3%, including 8% in the second quarter alone.

Around 11:23, the action of Imperial Tobacco advanced 2.27% to 25.17 pounds, while the FTSE 100 London Stock Exchange, the only open in Europe in May 1, gained 0.28%. 

Like its larger rival Philip Morris, British American Tobacco and Japan Tobacco, Imperial Tobacco suffered a decline in smoking in developed countries, while compensating for this phenomenon by higher prices and expansion in emerging nations.

The call Wednesday by the President of the European Central Bank, Mario Draghi, the drafting of a "growth pact" strengthens the hand of Francois Hollande, who has made the reborn ; negotiation of European fiscal pact a priority.

The Socialist candidate, favorite in the polls to eleven days of the second round of presidential elections, expected probably not see the Frankfurt Institute think as he does, even if differences There are significant in their theses.

"We have a fiscal pact," said Mario Draghi before the Committee on Economic and Monetary Affairs of the European Parliament in Brussels. "Right now, what stands in my eyes, is having a growth pact (…) So we must go back and make a pact."

To the President of the ECB, it is not to renegotiate the Treaty of European fiscal discipline early March signed by 25 of the 27 countries of the European Union to force member states to reduce their deficits, with the key sanctions, but rather to take a separate initiative on growth.

But Mario Draghi has obviously realized the difficulties faced by several countries in the euro area, Italy and Spain in the lead, who see their plans for fiscal consolidation undermined by the recession. 

The president of Italy, Mario Monti, has said in mid-April that he would now focusing on the growth of austerity policies likely to worsen the plight of Italy.

"Everything, everything, everything we do now must benefit the growth," said the Italian leader. Rome now expects a contraction of 1.2% of the activity for 2012, against 0.4% in its previous forecast, last December.

"SURPRISING RESPONSE"

This is a turning point in the policy pursued by Mario Monti, who defended the austerity since his arrival at the head of a government of technocrats in November 2011.

In a note published analysis of a few minutes after the intervention of Mario Draghi, Barclays Bank stressed the importance of its position.

"It was an amazing response and it illustrates the level of concern of the ECB on the economic outlook in the euro area", can you read. 

Barclays notes that the President of the ECB was the first to talk about the need for a European fiscal pact in late 2011 and it was quickly acted upon.

Mario Draghi has also not hesitated to make enemies in Germany by opening the floodgates of credit to banks to avoid a liquidity crisis.

The remaining question is what could be the future shape of this potential "Growth Pact".

Francois Hollande maintains that it will require, if elected, a renegotiation of the pact to include a budget component growth would take for example the form of Eurobonds to finance major projects, for example in energy. 

But this claim is opposed by many countries, including Germany, where it is impossible to reopen a treaty already signed and ratified by the parliaments of two countries, Greece and Portugal, and more soon.

Dissension ON THE ROLE OF THE ECB

German diplomats have approached Francois Hollande to ask him to withdraw his application, noting it would be easier to Berlin to negotiate a pact for growth if the prior fiscal discipline é ; silent endorsed by Paris.

"Why do you create such a misunderstanding as to the substance we agree?" asked one of them. 

The socialist leader told them that he accepted the whole aspect of deficit reduction treaty but he could not give up a flagship project of his campaign.

"You can not drop this claim," he told them according to a German official that he met and who wants to believe that this is a campaign posture.

Francois Hollande account on the new balance of power that would create his election in the European Union, the first step in his opinion a change of majority in Germany, where e Legislative elections will be held in 2013.

But other claims made by the candidate may make compromise more difficult to achieve. 

The favorite in the polls and is said to favor a rate cut from the European Central Bank to support growth and to direct loans to countries in difficulty, rather than through support for banks .

"I know that the Germans are quite hostile, well it's part of the discussion. If you think it is not necessary to vote and it is not necessary to renegotiate as well stay home, "he said last Friday

While Jerome Cahuzac

. for the Budget with Francois Hollande, said in an interview with Reuters that it could be done without compromising because the statutes of the European Central Bank (ECB), Germany and the ECB believe this écornerait independence of the institute in Frankfurt

… …… "The ECB must act within its core mandate and the Treaty", which assign price stability as a priority. "The limits of the Treaty prohibits monetary financing ( debts of the States). "

ASML has delivered an optimistic outlook Wednesday, saying the popularity of smartphones, tablets and other ultra-thin computers support its sales within six to nine months to come.

As a world leader in engraving machines for semiconductors with a market share of 75 to 80%, ASML passes for a good standard of high-tech sector and investors are closely following its forecast .

"Given the market, we are confident (…) for the rest of the year, we remain positive," said CFO Peter Wennink.

"The chips go directly to things that are currently very popular, is all that is mobile, media, internet and especially smartphones and tablets."

The firm specializes Gartner said this month that it anticipated a 2.5% increase in IT spending the world, at 3,700 billion, while planning before an increase of 3.7%, citing the strengthening dollar and declining public expenditure in the euro area ……. ASML

.. anticipates a turnover of 1.2 billion euros in the second quarter after 1.25 billion in the first quarter and projected sales in the third stable The quarter

. I gave to Reuters sales of 1.209 billion in first quarter

……. Wennink .. said that the outlook for the fourth quarter remained "somewhat uncertain". The value of the backlog was 865 million euros in the first quarter but Wennink finds it difficult to predict what will be the second quarter as orders are received fewer but larger-scale .

This uncertainty beating down the share price, which fell 2.7% to 36.9 euros. She had reached two weeks ago its highest level since October 2000.

"Investors expect an acceleration of ASML orders but has not strengthened in their hopes, perhaps they will now have a cautious attitude," said Philip Scholte, analyst Rabobank.

The Dutch group has also reported net earnings of 282 million euros, compared to consensus building on 278 million.

Prime Minister Francois Fillon, has validated this weekend's decision to notify Thales a contract worth several billion euros for the modernization of tactical radios of the French armies, writing Le Figaro Tuesday.

The contract, three to four billion euros over 22 years, involves the renewal of 33,000 radio systems used by the military, the paper recalls.

The Ministry of Defence had agreed but of Economy objected to the notification of an important contract in its presidential campaign. Matignon has ruled.

Union leaders at Opel-Vauxhall European subsidiary of General Motors and PSA Peugeot-Citroen will hold talks in April to forge an alliance against the two groups and defend employment, said Friday the European Metalworkers Federation (EMF).

Wolfgang Schäfer-Klug, Opel, and Jean-Francois Kondratiuk, PSA, are due April 18 in Brussels with other union representatives to a preparatory meeting before another meeting the end of April which will be attended by delegates from all European sites.

The meeting will be chaired by Ulrich Eckelmann, general secretary of the GEF. Its objective is the creation of a permanent entity that can speak on equal terms with the directions of the two groups.

"The current strategy of the two automakers is to play their respective sites against each other. By creating this alliance, they can increase their scope and include all production sites in this competition, "said Wolf Jäcklein, a member of the GEF ….

….. "We need to step beyond our individual companies and defend us all against this tactic is the key." .. Leaders

…… Opel will present next Wednesday on the supervisory board of the European subsidiary of General Motors a project involving the closure of two plants in Europe to reduce by about 30% production capacity, officials said several sources informed of the discussions within the company. 

PSA Peugeot Citroën, the new French ally GM meets Friday a European group committee three weeks after the announcement of the merger between the two groups, while unions' s question the social and industrial benefits of the project.

Kingfisher said Thursday that new stores and efforts to improve margins would enable it to withstand the difficult economic environment, having performed in 2011 an annual profit up 20% and above the consensus.

The first European chain of DIY stores, owns the Castorama and Brico Dépôt stores in France, has detailed its growth program "Creating the Leader" and said it would open 67 stores during the current year and would test new formats at the client.

The margin improvement will include a centralized purchasing with direct orders from countries with low labor costs like China. 

The annual profit before tax and exceptional items stood at 807 million pounds (968 million) for the year ended January 28, while analysts expected 799 million.

Revenues increased 3.6% to 10.8 billion pounds, while the annual dividend was increased 25% to 8.84 pence per share.

Kingfisher aims to earnings per share of 31.2 pence for the year 2013-2014 against 20.5 pence to 25.1 pence in 2010-2011 and 2011-2012.

Action, up 23% over the last three months, ended at 300 pence Wednesday, valuing the company at 7.2 billion pounds.