News – Business & Economi

European shares fell back Wednesday morning, after surging the previous day as investors await details of the measures under consideration to address the crisis of debt in the euro area.

At 10:27, the CAC 40 was down 1.24%, passing below 3,000 points to 2,985.96, having surged 5.75% Tuesday and 8.7% over the last three sessions.

"The market was excited about the ongoing discussions on the European financial stability," said Andrea Williams, at Royal London Asset Management. "But we are still far from agreement (…) We are underweight the banks for three months and we will not change our position."

Other major European markets, London and Frankfurt yield 0.8% 1.2%.Milan lost 0.99%.

The index of pan-European Euro Stoxx 50 was down 1.25%.

Chancellor Angela Merkel suggested Tuesday that the donors of Greece could change the second part rescue plan reached in July.

According to the Financial Times, differences have emerged regarding the agreement. Citing European officials, the newspaper understands that seven countries would like the private holders of Greek bonds spend more provisions.

Cyclical stocks and banks weigh on the trend, after leading the rebound yesterday. The banking index lost 3% in Europe and the auto index 1.9%.

In Paris, BNP Paribas dropped 4% and Societe Generale 4.8%.Credit Agricole sells 3.3% against a backdrop of speculation of imminent announcement.

Analysts expect a reduction in the bank's balance sheet.

The performance of the German government bond (Bund) and 10 years down to 1.93% and the euro is recovering slightly to 1.3610 dollars around.

The small archipelago in the Atlantic Ocean would have hidden more than 1.67 billion euros of debt since 2008. This discovery increases the Portuguese public debt by 0.3 percentage points of GDP. View of Madeira Island off the coast of Portugal

Portuguese statistical authorities announced Friday they had discovered undeclared debts of the Autonomous Region of Madeira that increase the government deficit in Portugal to 1.11 billion euros from 2008 to 2010, and that of the 568 million année.Selon a Joint Statement of the Bank of Portugal (OTP) and the National Statistics Institute (INE), this is a "serious omission of information" detected after a report of the Court of Auditors the finances of this small archipelago in the Atlantic Ocean.

These debts represent an impact on the public debt estimated at 0.3 percentage points of GDP and involves an upward revision of the deficit in 2008 (+0.08) 2009 (0.03 points) and 2010 (+ 0.53 points), stated the Ine and OTP. According to latest official figures, the debt was late 2010 to 93% of GDP and the deficit to 9.1% of GDP. Debts for the current year had already been detected in the first quarterly assessment conducted by representatives of the European Union and International Monetary Fund as part of the aid plan of 78 billion euros granted in Portugal May

The Portuguese government had then decided to resort to extraordinary income in order to correct a skid overall budget of about EUR 2 billion and meet the deficit target to 5.9% of GDP this year."The evidence released today reveal a serious deficiency," responded the Ministry of Finance, pointing out that it is an "isolated case" and noting that the regional government of Madeira has already asked the Lisbon helps to develop its own financial recovery program.

The weekly jobless claims rose against all odds in the United States during the week to September 10, at 428,000 against 417,000 the previous week, said Thursday the Labor Department.

Economists on average had expected 410,000 jobless.

Registration of the week to September 3 were revised up from an initial estimate of 414,000.

The moving average of four weeks stood at 419,500 against 415,500 (revised) the previous week.

The number of people receiving regular benefits rose to 3.726 million during the week to September 3 (last week for which figures are available) against 3,738,000 the previous week.

Obama says he wants to put 447 billion dollars on the table for the fight against unemployment. Will he able to implement its plan? The proposed measures can they walk? Uncertainties abound. Barack Obama October 31, 2010.

Unemployment remains stuck above 9% in popularity to the lowest since his election … For Barack Obama, the fight for employment is the decisive battle of the last years of his term. He then presented a plan Thursday, the American Jobs Act, which promises to spend 447 billion dollars, 300 billion euros, to create and maintain jobs. And despite a budget deficit and a debt of a magnitude abysmal. Is a financial effort of the same level as the Stimulus Plan of 2009.It was 787 billion over two years while the effects of the new plan should focus on 2012.

Mark Zandi, chief economist at Moody's Analytics, quoted by Bloomberg as he believes could have a greater macroeconomic impact. Additional growth is estimated to be 2 percentage points and a one-point drop in the unemployment rate … provided it is fully implemented. For the first unknown of this plan is whether it will be voted on by the Republicans who have displayed more hostility. Aware of the political balance of power, Barack Obama has also favored measures likely to receive support, as this is tax cuts.He also insisted that Republicans had proposed similar measures.

Priority to the reduction of social charges

Obama can talk about his plan as a shock, its revenues have nothing very original. More than half of the plan – $ 240 billion – be used to offset reductions in payroll taxes owed to Social Security.

Employees could then see their 2012 employee contribution rates to 3.1% instead of the already improved rate of 4.2% they receive until the end of the year. Knowing that the standard rate of 6.2%. The objective here is to stimulate activity through consumption by giving purchasing power to them.The problem is that Americans are heavily indebted and some economists fear that some of this money ($ 175 billion, averaging $ 1,500 per family) rather don not in bank vaults in stores .

Companies are not forgotten. Obama breaks new ground even in the matter by proposing to cut the same way the employer contribution rate by half to 3.1%. A reduction that would apply within the first 5 million in payroll to benefit small first. All for a $ 65 billion.

Last "gift", also for companies: a total exemption from social security in case of creation of positions or salary increases. And within the limits of an increase of $ 50 million in payroll.So this is a direct incentive to job creation or wage increases (5 billion).

In total, the White House believes that such measures could create 50,000 jobs per month. Or 600,000 over the year 2012. That compares with the average loss of 35,000 jobs per month in the last quarter. But the New York Times also points out that companies must be able to offer more than 100,000 jobs each month just to cope with population growth

New aid to the unemployed

Here the opposition of Republican likely to be greatest. The White House wants to implement because it boasts as "the most innovative reform of unemployment insurance for 40 years."It aims to maintain the payment of allowances for part-time employees, trainees or unemployed entrepreneurs and set up a special tax credit for hiring long-term unemployed. Added to a fund to finance initiatives for the return to work in the direction of the unskilled and disadvantaged.

$ 140 billion of public investment

These measures Keynesian will involve upgrading transport infrastructure to the tune of $ 50 billion, and the creation of a National Infrastructure Bank. Obama hopes to win in each case the support of elected Republicans who have requested by a line of railway, is a bridge …A strong emphasis on education with the project to upgrade at least 35,000 public schools (30 billion) and freeze up to 280,000 job cuts for teachers, police and fire (at a cost of 35 billion). Not sure that this component easily passes the Cape of Congress.

Finally, two obstacles remain to the effectiveness of the plan of Obama. The funding, first. The U.S. president said he would be fully resolved in the process of reducing the long-term debt of some 1.5 trillion dollars. Task that was entrusted to a bipartisan committee that must report its findings in November. Barack Obama has promised to unveil his own proposals September 19, in the matter.

Then, the American Jobs Act, even if passed in its entirety, is not the absolute anti-crisis weapon. Its effectiveness will depend upon the strength of the economy.Thus the decline of social enterprises, a key measure, may well be theoretically effective, it is not enough to convince an employer to hire if the demand is not there. But the latest indicators in this regard are contradictory. For if consumer spending rebounded in July, trust her, fell in August to its lowest level since November 2008.

It is "imperative" to implement the decisions taken by Heads of State and Government of the euro zone in July to resolve the debt crisis of the Greek said Monday Jean-Claude Trichet, president of the Central Bank (ECB).

European stock markets were down sharply again Monday because of growing doubts about the application of the support plan for Greece developed at the summit on 21 July.

"It is clear that we absolutely need an immediate and imperative that all these decisions are implemented immediately," said Jean-Claude Trichet at a conference of the Institut Montaigne, a "think tank" in Paris.

"One of the strongest recommendations," he said, "is to implement the most comprehensive and rigorous as possible, so no doubt, decisions which have been taken."

The plan of July 21, supposed to give the euro area financial and institutional resources that would enable it to avoid contagion Greek throughout the euro area, must, to come out, be ratified by parliament each of the signatory countries.

But the political obstacles to such ratification have multiplied in recent weeks.Finland wishes and its contribution to the plan is guaranteed by Greek and Athens, Slovakia, the vote of the parliament could only take place in December.

These uncertainties prevent an immediate strengthening of the financial resources of the European Financial Stability (EFSF), which must be able to buy government bonds to support countries in need.

"WE ARE HALFWAY"

Jean-Claude Trichet said more broadly in the global goal to increase "resilience" of individual entities, financial institutions, banks and financial system, "we are half way" .

"We see that we have made significant progress," he said, citing the progress made in the G20, the Financial Stability Forum and the Basel rules on capital III of financial institutions under discussion.

"All our experience leads us to believe that we must implement what was decided and certainly not think that could shake the hand, it would probably be the biggest mistake we can do," he said.

"There are still many things to do, particularly at the Basle Committee, the Financial Stability Forum and the G20 level, particularly with regard to systemic global institutions and national and non-banks."

Jean-Claude Trichet referred again to the slopes for the medium-and long-term European governance.

It is thus, in his opinion, possible to imagine the future that decisions are taken "from the center of the single market to single currency" when a country is unable to implement the recommendations persistent.

Even further in the future, it is possible to imagine the creation of a European confederation, with a confederal government, including a European Minister of Finance.

Jean-Claude Trichet on the other hand raised the issue "important" the need for continuing structural reforms in Europe to increase the growth potential of the continent, citing in particular the Lisbon agenda for growth.

The major European stock markets rose Tuesday in the red by late morning after the announcement of an unexpected decline in economic sentiment in the euro area in August.

Around 12:25, the CAC 40 index yields 0.21% to 3147.48 points after opening up. Since the beginning of the benchmark index of the Paris market lost more than 14%.

According to stakeholders, the shares continue to consolidate, in an atmosphere of caution after the shock of bearish early August.

"It is a market without enthusiasm, which is still afraid of a correction, market pure waiting, with U.S. unemployment figures Friday in focus," said Frederic Rozier, manager at Meeschaert Private.He sees a strong resistance to the CAC 40 index to 3,260 points.

Alexander the Drogoff, technical analyst at Aurel BGC, agrees that the market could resume its downtrend after a waiting period. He does not see the CAC 40 exceed 3,400 points, before a relapse to 2890 points and its lows of 2009 and 2003 around 2450.

Other major European markets, London, which was closed Monday, gaining 2.35% while Frankfurt lost 0.49% and 0.77% Milan.The pan-European Euro Stoxx 50 index was down 0.34%.

S & P: RECESSION CAN BE AVOIDED

In addition, Standard & Poor's lowered its economic growth forecasts for the eurozone to 1.7% for 2011 and 1.5% for 2012 and believes that a spin in a recession can be avoided, even if the risk s 'increase.

Bank stocks were among the first to turn around, the Stoxx sector in the euro area losing 0.64%. Societe Generale lost 1.7% and 1.1% Credit Agricole.An article in the Financial Times reports that according to the International Accounting Standards Board (IASB), the impairment recorded by some financial institutions on their Greek sovereign bonds were not large enough.

Mining stocks, however, remains strong, the index increased 3.5%, supported by the agreement between ArcelorMittal (0.28%), Peabody Energy and Macarthur Coal on the terms of the acquisition of specialist Australian coal sprayed.

In the bond market, the auction of government bonds in Italy this morning met with a relatively low demand, despite the purchase of the European Central Bank in recent weeks, creating nervousness.

For its part, the performance of the same maturity Bunds declined to 2.17%, 2.22% against the previous day.

The euro cup against the greenback at 1.4388 / 90 dollars, against 1.4513 the previous day in the afternoon.

A barrel of U.S. light crude dropped by 0.74% to 86.63 dollars and Brent from 0.21% to 111.64 dollars.

China's central bank said Friday it wanted to maintain a relatively stable exchange rate, but the announcement has not been enough to calm the speculation that Beijing would consider letting the yuan rise further to better contain the inflation.

In a quarterly report, the People's Bank of China (PBOC) announced that it would employ "many tools" including interest rates, exchange rates and bank reserve requirements to try to control rising prices.

It recalled that it would maintain the yuan's exchange rate relatively stable at a "reasonable and balanced level."

But the noise is spread in the markets, however, the PBOC preparing an intervention currency.Local newspapers related to the central government suggested including it would rely on a stronger yuan to try to curb imported inflation in China by the weak dollar.

It remains to ascertain whether the report of COPD was written before or after these press articles, published Friday.

"We will use reasonable tools (regulatory) price as interest rates adjust to the demand for capital and savings behavior, and manage our investment and inflation expectations," said the PBOC.

The monetary institution noted that it would not drop the guard against inflation, although many economists believe that it peaked in July.

"Price stabilization is not yet firm enough and the situation is not optimistic," said the PBOC.

Beijing is regularly subjected to international pressure, including from the United States and the International Monetary Fund to allow the yuan to appreciate faster.

The yuan was stabilizing Friday around 6.39 to the dollar on the spot markets, pausing after a sharp rise this week.

The Chinese currency has appreciated about 6.7% since the abandonment of its indexation to the dollar in June 2010 and 3% since the beginning of the year.

Wall Street was seized Wednesday by concerns related to the exposure of French banks to the most indebted countries in Europe and possible contagion in the U.S. banking sector.

Like the European markets, the U.S. indices fell sharply on losses to finish higher than 4%.

The Dow has plunged 4.62% or 519.83 points at 10,719.94 points, while the S & P 500 lost 4.42% or 51.77 points to 1120.76 points.

The Nasdaq meanwhile sold 4.09% (101.47 points) to 2381.05 points.

Wall Street has been greatly disturbed by the rumors of the day on the French banking sector in general and in particular, Societe Generale, which was heavily penalized in the CAC 40.

Despite the denials made by Societe Generale, the stock closed down 14.74%.

"People who did not sell fast enough during the last financial crisis stand ready for the next time to sell quickly before asking question. And they think that the next time, it is now," said Ed Crotty, chief investment officer at Davidson Investment Advisors.

Financial stocks have been severely punished.The KBW index of U.S. banks sector was unscrewed from 8.21%.

Including Bank of America lost 6.77% to 10.92 dollars.

Financial markets, the continent of Europe to Asia, are still affected by lingering fears about the U.S. economy, and risks of contagion from the euro area. Depression continues. Dasn early trade on Wednesday, Frankfurt yielded 0.81%. European stock markets decline

European financial markets were down again Wednesday morning, before the accumulation of bad news on both sides of the Atlantic. Investors are concerned about the health of the U.S. economy and the renewed tension on the fragile economies of the area in early trade euro.Dans 9:45 (7:45 GMT), Paris and Frankfurt lost 0.81% 0.81% . While Milan fell by 1.44% and 0.22% of Madrid. The London Stock Exchange is also down sharply on Wednesday morning.By 0830 GMT, the FTSE-100 index of the core values ​​has given 53.47 points in the first exchanges, or 0.94% over the closing Tuesday at 5664.92 points.

The U.S. concern. "For now, the American compromise avoids the worst, but provides only partial answers, which will cause an end was difficult," said Francois Duhen of CM-CIC Securities in a note . Now that Congress passed the plan Tuesday to raise the U.S. debt ceiling, the concerns of investors should refer again to the strength of the U.S. recovery. In the wake of the agreement, the rating agency Moody's has matched the note of the United States of a "negative outlook", which means that the country could lose its triple A medium-term, best possible rating, which allows the country to borrow at very low rates.Investors are also very wary especially as the very important U.S. indicators will be published in the afternoon across the Atlantic, including the ADP employment figures in the private sector and the ISM index of activity in services in July. Friday, figures for U.S. growth in the first half, very disappointing, have been a chilling effect on investors that some even fear a recession in the world's largest economy in the second half.

Side the euro area, the fears persist. In the eurozone, are increasing fears of contagion.Italy and Spain are again under pressure from the markets and their governments are mobilizing to stem the panic even if Brussels has ruled out any discussion of a bailout for those countries.

Asian stock markets down

Asian financial markets have again unscrewed Wednesday, worried about the prospects for the global economy, despite the adoption of a text to the United States to avoid a default. The Tokyo Stock Exchange closed sharply down, Nikkei 225 yielding 2.11%. Instead of Seoul also fell sharply, the benchmark index dropping 2.59%. That of Sydney has lost 2.27%. Around 7:20 GMT, Hong Kong, for its part gave up 2.21%, 1.18% Bombay and Shanghai remained almost stable.

The French debt will be increased by about 15 billion euros by 2014 due to the implementation of the plan of aid to Greece reached Thursday night, said Friday Prime Minister Francois Fillon.

This increase in debt could undermine the government's objective to begin to reduce the debt ratios of France from 2013.

"This will have an indirect effect is an increase by 2014 our debt levels, given the inclusion of guarantees, up to about 15 billion euros," said François Fillon to Following a meeting with parliamentarians of the majority.

The government expects public debt will continue to grow this year and next year (85.4% and 86.9% end 2011 end 2012) and begin to decline in 2013 to reach 86.4% at end 2013 and 84.8 % end of 2014.

The leaders of the euro area have developed a new plan Thursday to support involving the private sector and reforming drastically the stability fund to make an embryonic "European Monetary Fund."

Welcomed by the markets, the new Greek plan, a total of 109 billion euros, will be echoed by participating banks and European insurers, the amount could go up to 50 billion euros.

NO BANKRUPTCY OF STATE

"This agreement marks an absolutely decisive in the history of the euro area," said François Fillon."There will be no state of bankruptcy in the euro area, because the solidarity of the euro area will be complete.."

The "golden rule" would entrench the need to reduce deficits in the French Constitution is now more than ever, still says the head of government.

"It is indeed now a joint effort of the countries in the euro area to adopt this budget framework must be credible leads," he said.

France has pledged to reduce its public deficit below 3% of GDP in 2013 but believes it must include the balance of state finances in a basic document.

If this "golden rule" was passed by the majority, it must, to be enshrined in the Constitution, getting three-fifths of the vote in a Congress, which requires adherence to some of the parliamentary left.

The Socialist Party refuses for the moment and Nicolas Sarkozy has not officially taken the decision to convene the Congress but the majority, Francois Fillon at the head, pushed him to move forward.

For the Prime Minister, France played a "central role" in the conclusion of the agreement, including by reaching before the summit in Brussels an agreement with Germany.

"The Franco-German duo has once again played a key role in finding the right solutions to the crisis.I guess you could say that the Franco-German couple is the key to stability in the euro area, "he said.