News – Business & Economi

Like the European stock markets, Wall Street fell heavily on Tuesday because of a resurgence of fears about the budgetary problems of the eurozone when approaching an important deadline that expects European banks Thursday.

In this concern, which brought down the S & P 500 in a session low of 2010 has added the announcement of the sharp drop in U.S. consumer confidence, a statistic that raises questions about the strength of the recovery U.S. economy.

The Dow Jones 30 industrials surrendered 2.65% or 268.22 points to 9870.30. The S & P 500 is broader, lost 33.33 points, or -3.10%, to 1041.24.The Nasdaq Composite fell on its side of 85.47 points (-3.85%) to 2135.18.

This is the first time since June 9 as the Dow and the Nasdaq finished respectively in the 10,000 and under the 2,200 points while the S & P 500 closed at lowest close since the beginning of the year.

Speakers also noted that the S & P 500 broke through the key threshold 1040.78, which until now was the previous low of 2010, thus raising concerns of a further decline of this index in the short and medium term.

The stock market decline began in Asia, has increased in Europe and has also hit Wall Street, where the financial and industrial stocks were the hardest hit.

The CBOE Volatility Index, also known as "index of fear" has surged 17.69% to 34.13, its highest level since early June

Investors have questioned the soundness of the European banking system before a return of 442 billion euros that banks should proceed with the European Central Bank on Thursday.

U.S. consumer confidence as measured by the index of the employers' organization Conference Board, sank in June after three consecutive months of increases, due to concerns related to employment.

Another sign of concern, the Conference Board has revised downward its leading indicator for China in April: it is up more than 0.3% against 1.7% previously announced.

"Investors are holed up in hiding at the slightest problem. This is not a good sign. They are not being spent – there is no fluidity in the movement of money," said Joe Saluzzi, co-director of trading at Themis Trading.

The KBW banking index plunged 4.43%, with JP Morgan Chase yielding 3.84% to 37.06 dollars, Bank of America 4.4% to 14.57 dollars and Wells Fargo 4.07% at 25 $ 93.

Among the heavy industry, Boeing has lost 6.33% to 63.04 dollars, Caterpillar 5.51% to 60.85 dollars.

Noting a marked turnaround that after months of sluggish demand, Lufthansa is optimistic about his chances to reach its profit target by 2010.

"Despite the first negative quarter and the closure of airspace early April, the developments in recent months has reinforced expectations of a higher operating profit in 2010 than last year," reads a statement released Monday by the airline before a meeting with investors.

In May, Lufthansa had already confirmed its 2010 target of a higher operating profit to 130 million euros generated in 2009.

The company also revised up slightly its forecast for the fuel bill this year, seeing now to 5.3 billion euros against 5.2 billion previously.

About 10:40 GMT, Lufthansa advanced 1.10% to 11.91 euro, making a little more than the index values involving the airline and travel industries (0.57%).

The effort to reduce tax loopholes, covering five billion euros for the period 2011-2013, may be increased to 8.5 billion euros if the situation requires it, said François Fillon.

At a press conference, the Prime Minister said that "further efforts" would be decided by the government if growth is below its forecast.

The government expects 1.4% growth in gross domestic product (GDP) in 2010 and 2.5% in 2011.

It is too early to consider amending the forecast "for 2011, said Francois Fillon, but stressed that" a rebound "often followed a crisis.

The good performance results of listed companies should trump concerns over the sovereign debt of the euro area and allow the CAC 40 index gaining about 1.6% throughout this year, shows a Reuters poll after the losses in the first half.

The benchmark index of the Paris Stock Exchange should close the year at 4000 points against 3939 end 2009, representing an increase of 9.8% from the close of Wednesday to 3642, according to the median estimates collected from 28 analysts and managers.

They have therefore been revised downwards from the level of 4,200 points set by the March survey.

The professionals see the ACC achieve 4200 points in mid-2011, 15% above their closing Wednesday.

Since 1 January, the CAC 40 fell 7.48%, partly due to concerns about the debt of states in the euro zone, whose magnitude is considered a threat to economic recovery.

"The financial situation of companies could target higher but it is true that the economy would suffer from too heavy indebtedness of some countries," said Christian Jimenez, a fund manager and president of Blue Diamond, which sees the CAC 40 4,000 points at the end of December and 4,200 in a year.

After a mixed first quarter, the CAC 40 was on a downward trend in mid-April, hit by fears of a spreading crisis of the Greek debt to other countries like Spain and Portugal.These concerns have also knocked the euro to its lowest level in four years against the dollar.

CONTRARY WINDS

The benchmark index in Paris has plunged nearly 20% in less than two months, as many stock markets around the world.But it has taken over the past two weeks, erasing some of its losses thanks to the relative calm fears about the debt and purchasing cheap stock whose valuation ratios had fallen to their lowest level for over a year.

Analysts and managers also consider the depreciation of the euro as a positive development for French firms, including of course those who make a significant portion of their sales outside the euro area.

But many professionals like to recall that all the headwinds blowing on the Paris Bourse are not appeased.

"There are negative surprises waiting on corporate earnings in an environment of austerity plans for economic growth and very low in the euro area," explains Philippe-Henri Burlisson, director of fundamental managements at Groupama Asset Management.

"Today the consensus forecast 20% increase in EPS in 2011 compared to 2010.This does not seem tenable and will be revised downward, which will result in falling stock markets. "

He added that the possibility of an increase in corporation tax in the context of measures of fiscal consolidation is a threat to businesses focused on the French market.

"The areas most at risk are those related to domestic consumption and those whose production facilities are relocated to escape under a higher tax burden," he adds.

Philip Henry sees Burlisson ACC 40-3400 points at the end of 3500 and mid-2011.

Marc Touati, Associate Director of Global Equities

This topic is more socially and economically. In the current crisis, it is even very controversial, very "dangerous". We must therefore take tweezers in the formulation of the analysis to avoid offending the spell …

I. The model of solidarity to the French: the world's best

Originally the solidarity model, also called French social model may appear as the best in the world. Its basic principle is: high public spending and high tax burdens, but in exchange, through redistribution, greater solidarity and hence less inequality, less unemployment, less poverty and more comfort- be economic.

II.This model of solidarity no longer works

Sadly, the last ten years, this model is fraying, as far as public spending increases more and more (56% of French GDP in 2009), the tax burden is among the highest in the world. Despite this extravagant strategy, growth, structural decline, unemployment is around 10% sustainable, poverty rate increases (14% of French people living below the poverty line), including the widening inequalities in income and health and funding of the retirement pay is more assured. So the French model of solidarity is more effective.

Conclusion: how to find a more effective model

This is where the controversy settled: that it must also increase public spending and taxes.If this solution is certainly easier, it is not credible: it no longer works for 20 years and is a runaway. We must therefore stop veiling the face: the only way to make solidarity in France resides in the ability of the latter to the high growth. To achieve this, we must reduce the tax burden for all, make it as fairer, while lowering the inefficient public spending, including operating expenses.

Jean Paul Betbeze, director of studies of the Credit Agricole

Introduction: The word solidarity is one of the most important part of our vocabulary, one of the most sensitive too, because it is at the crossroads between economic and social. He asked how "to society", that is to say, how to combine growth, efficiency, distribution, justice.The issue of solidarity is today more acute because the growth is not at the rendezvous. This leads to questions about growth (innovation, the company …) and the terms of the distribution of wealth, with the idea that certain expenses, sometimes called Solidarity, were too high and / or have not contributed to growth, as might have been expected.

I. The French social model, an exception

Solidarity meeting in fact a set of situations. For one third of expenditure, are shocks that have affected people, health first, another third are economic shocks, mainly unemployment and its consequences for a third and third is the evolution costs associated with aging. Shock people, economic shock and the shock of aging are the sources of expenditure solidarity.It is necessary to study their relevance, legitimacy and, where possible, their effectiveness. Looking in effect say that young people can not but be struck by the solidarity they restricted themselves to considering. The family, themselves and their friends and cronies. Altogether, they and their entourage. This sends the idea, positively, that the best solidarity begins at home and his family (training, job search and lifestyle), but also that state support, social activities are increasingly counted in First the conditions of retirement and old age support. Truth and realism.

II. There can be no solidarity without growth

So we must find ways to live together solidarity and growth, after some excesses were committed and at the inability to continue as before.It can therefore be, in any event, solidarity without legitimacy, without transparency, without verification. That is no explanation for it, without penalty to the excesses or misrepresentation and – increasingly – without education, training, to avoid any shocks. Economic solidarity corresponds to the current difficulties of the job. Unemployment is the brand, but also retirement (since the nonworking are partly taken into account). But support to individual entrepreneurs (with tax benefits) are also a de facto solidarity. A total of solidarity that we measure is often posterior to the problem, it must be proactive. It must be less than a correction, compensation of a preparation: training throughout life support mobility.Solidarity in the event of sickness is also essential, but it can not avoid the growing support in people themselves. Lifestyle, sports, medical conditions are independent of a reduction of medical risk and provide an old age happier, longer and less dependent on solidarity.

Conclusion: Overall, we must squarely address the solidarity at the intersection of economics and welfare, by making clearer the economy (transparency, fairness, efficiency), the general benefit of society.

The chairman of the Democratic Movement (Modem) Francois Bayrou late Monday about the case Bettencourt, who has "not observed" in France "the glass wall that should separate the private affairs of public affairs" criticizing the "mixture".

See also: Dangerous Liaisons Eric Woerth and Liliane Bettencourt

"Historically, for years in France we did not meet the glass wall that should separate the money matters, private affairs, public affairs," said Mr Bayrou on RTL.

"There is too much complacency, we are constantly in the process of accepting that there is a immixion a mix" between public and private sectors, emphasized the member of the Pyrenees-Atlantiques."There is caution needed when you are in a great public service," he also said about Labour Minister Eric Woerth whose wife works for Florence Liliane Bettencourt.

Pirates of plays published by the website Médiapart Woerth suggested that the couple would have been aware of alleged tax evasion of the heiress of L'Oreal.

In an interview Sunday Mediapart, MEP Eva Joly (Europe Ecology), former judge Financial, said that Mr. Woerth should resign. "It is not unusual to ask a minister to be perfect! (…) In a normal democracy, the resignation is required," she said.

On Saturday, the deputy Arnaud Montebourg PS was also found on the website of the Express that keeping the government of Mr Woerth "prevent that the truth. "We have a budget minister (Mr portfolioWoerth May 2007 to March 2010) at the same time treasurer of the UMP, whose wife works to organize the tax evasion of Mrs. Bettencourt, "he was accused.

A virulence forced Eric Woerth-cons to attack the next day. "Now, enough is enough!" My wife will file a complaint against Mr. Montebourg (…) We can not say anything on anyone, "he blasted the" Grand Rendez-vous " Europe 1-Le Parisien.

"I do not know the finances of Mrs. Bettencourt, I have no information on any tax evasion and I gave no instruction of any kind whatsoever to the tax office, he has also defended in the Journal du Dimanche.

"My wife worked for three years in the company that manages the assets of Mrs Bettencourt. It is not an employee and CEO of this company," said Mr.Woerth, adding that "it's been over a year she wants to leave, of course she is going to leave for reasons of personal disagreement."

Labour Minister, who leads the pension reform, received support from his colleague of Higher Education, Valerie Pecresse, itself cited in bootlegs. She saw "an attempt at destabilization.

On the side of the Elysee, the special adviser Henri Guaino said he imagined "not a single moment" Eric Woerth "may have committed a wrongdoing." "In any event, Ms. Bettencourt has offshore accounts or not and whether or not it tax evasion, I do not see how this relates directly to Eric Woerth," he said on I-Télé .

European shares ended Friday in a disorganized but the pan-European FTSEurofirst 300 index displays eighth consecutive day of gains.

The Paris Bourse closed on a very slight increase from 0.11% to 3687.21 points on Friday, again its eighth consecutive increase, and shows a gain of 3.770% for the week. In ten days, the CAC 40 bounced 10%.

The index of key European values close to him as a fourth consecutive week of gains, with a gain of 2.53% in five meetings, in a context of a rebound in world stock markets.

The MSCI World Index shows indeed ninth consecutive day of gains.Investors are showing some renewed risk appetite, encouraged by the successful auction of debt on the eve of Spanish and French and European Union decision to extend the "stress tests" to European industry as a whole.

As for European values, the bank has supported the ongoing titles Societe Generale, Credit Agricole and UBS gaining 1.72% and 6.06%.

The title has sold BP 0.63%, after Moody's lowered by three levels of the credit rating of the oil company, which also seek to borrow seven billion dollars to seven banks.