Still no solution. The elected representatives of the U.S. Congress again tried Sunday to reach an agreement on raising the debt ceiling, but without success. Democrats and Republicans had themselves set a target to announce progress on a plan for deficit reduction before the opening of Asian financial markets on Monday morning. The disappointment of investors is large, the Asian financial centers such as the Paris Bourse.
Secretary of State Hillary Clinton sought Monday to reassure Asian markets: "I am confident that Congress will do what is needed and will come to an agreement on the debt ceiling, and work with President Obama on measures to improve our long-term fiscal outlook, "she said in the text sent in advance of a speech in Hong Kong.
Members of both parties decided to work separately on separate projects. The chairman of the House of Representatives, Republican John Boehner, now plans to announce a plan at 14 am local time (20 hours in Paris).
"Nobody wants a failure"
John Boehner told his troops last night that no breakthrough had yet been obtained to repel the specter of a failure of the United States after August 2. According to two officials, he would have repeated in a conference call that "no one wants a failure." But he also warned his party's elected they may need to make "sacrifices" to avoid it.
Twice since Friday night, the talks between the two sides have failed to unlock the status quo on the action to start to reduce the U.S. debt.Friday night, the country experienced a further escalation in the standoff between Democrats and Republicans, they refused to pander to Barack Obama. The Democrats call indeed now $ 400 billion of additional tax increases. A change of position is unacceptable, according to John Boehner, while the two sides had previously agreed to a ceiling of one trillion dollars in additional tax revenue bad credit payday advance. Saturday evening, the President was therefore convened in emergency to four White House officials Republicans and Democrats in Congress for a new emergency meeting. But no more successful in negotiations, after 50 minutes of discussion.
Democratic side, the president believes that the 1.6 trillion cuts represent an offer "extraordinarily fair".Republican side, these efforts remain insufficient to John Boehner, who wishes to bring to 3 trillion budget savings over ten years.
Critical deadlines
Given the failure of talks between the president and elected representatives of both chambers, the compromise could eventually go through further discussion within Congress. If a common ground on removing the ceiling on debt seems likely, no party could only be satisfied with this short term solution, and discussions on the reduction of public spending should be more difficult. One observation that seems to share Timothy Geithner.
The U.S. Treasury Secretary said yesterday that there would probably have two stages for an agreement, first raising the debt ceiling and an agreement on spending cuts and a second stage of higher taxes and reforms.Whatever the timing adopted, it was also described as "unthinkable" that the United States do not meet their debt obligations. And as Barack Obama, who does not want the thorny issue of debt re-emerged during the election year ahead, Timothy Geithner wants to avert the threat of a default for at least 18 months, but at nine days the deadline of August 2, the time is now critical.
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In the future, the quality of service to access the Internet at very high speed could be paid by consumers and Internet giants like Google and Facebook. Telecoms operators should therefore more profitable to make significant investments to connect at least half of Europeans in very high speed (100 Mbit / s) in 2020. This is one of eleven proposals submitted to Neelie Kroes on Wednesday in Brussels by three CEOs of large European companies that have telecom floor forty counterparts. In early March, the Vice President of the European Commission, responsible for digital strategy, had given three working groups to Jean-Bernard Lévy, Vivendi chief executive, Rene Obermann, CEO of Deutsche Telekom and Ben Verwaayen, the CEO of Alcatel-Lucent.She wanted to know their positions to achieve the objectives of the Internet of the future of Europe. But Neelie Kroes has given its green light. She noted that the discussion "has not led to a consensus."
Contribution of 9 billion
However, Europe has announced that it could contribute up to 9 billion euros for investment in telecom infrastructure. The total was estimated between 200 and 300 billion euros over the period 2010-2020 for the operators. The President of the European Commission, "Jose Manuel Barroso has made the announcement Tuesday night at a dinner.Wednesday, Neelie Kroes reiterated the proposed contributions to investment of 9 billion euros in European funds, "says Jean-Bernard Lévy, CEO of Vivendi.
In order to reduce investment, European players have suggested that the frequencies are shared for future mobile networks and that "investments are pooled, especially for civil works and the optical fiber," says Gabrielle Gauthey, Director of Public Affairs Alcatel-Lucent. For his part, Rene Obermann, head of Deutsche Telekom, has urged all sectors to agree on the creation of standards for interconnecting the next generation network.
But among all the proposals, which calls on Europe a "differentiation in terms of traffic management to promote innovation and new services and meet the demand for different quality levels" is to be the most difficult to be accepted by the giants of the Web. They should negotiate in secret affairs, with operators to deliver services to high-speed Internet users. Supporters of this proposal, it would not be called into question the "neutrality" of the Internet. Because Google and other Facebook would not have to sign these contracts.
The U.S. stock markets move sharply lower on Monday. The Dow Jones lost 0.84% to 12,551.25 points, the Nasdaq 1.02% to 2830.66 loose points and the S & P 500 drops 1.08% to 1329.34 points. On Friday, the New York Stock Exchange ended down, undermined by employment figures disappointing compared with analysts' expectations.
Hiring remained stalled for the second straight month the U.S. in June, with only 18,000 net new jobs and the unemployment rate rose to 9.2% of the workforce.
Alcoa opens the ball in quarterly results
The trend, however, should be fragile before the beginning of the season half-year results. As usual it is Alcoa (-2.32% to $ 16) which will open the show of quarterly, as soon after the close of Wall Street Monday.JPMorgan Chase will be the first major U.S. banks to issue, with results expected Thursday, the same day as Google, which will set the tone for the technology. Investors will know very quickly if the U.S. financial sector has suffered from the decline in trading activities. These results also give a taste of the figures will be announced later by European banks.
According to Thomson Reuters data, the results of listed companies on the S & P 500 should show an average increase of 7.3% compared to second quarter 2010. But this increase could be higher if a majority of companies beat the consensus.
The euro dropped to $ 1.40
On the foreign exchange market, the euro was digging its losses against the greenback on Monday.Mid-afternoon in Paris, the single European currency was worth 1.4050 dollars against 1.4258 dollars on Friday night, falling to levels seen for two weeks.
On the macroeconomic front, the United States, negotiations between Democrats and Republicans over raising the debt ceiling is again blocked, the Speaker of the House of Representatives, Republican John Boehner, who announced that he would not find a comprehensive agreement with the White House.
In the process, the U.S. Treasury Secretary Timothy Geithner gave assurances that the U.S. would not default on their financial commitments, while Barack Obama announced he would hold a press conference Monday at the White House.
Always on the side of values, Sanofi (2.49% to 80.35 dollars) today announced positive results in a phase III study for Lemtrada, a drug for the treatment of multiple sclerosis developed by Genzyme's new subsidiary. Sanofi put his hand in April on U.S. biotech Genzyme for more than 20 billion. In addition, Sanofi said on Monday the sale of its Canadian dermatology Dermik to Valeant for $ 425 million (300 million) in cash, in order to focus on priority activities in the United States and Canada.
In the same area, the Swiss company Lonza, specializing in life sciences, announced Monday the acquisition of the U.S. Arch Chemicals (11.24% to 46.91 dollars), a company active in biocides.The cash offer to 47.20 dollars per share values the company at $ 1.4 billion, which represents a premium of 36.7% over the share price on the last thirty days.
In addition, the U.S. aerospace equipment Precision Castparts Corporation (0.79% to 164.07 dollars) will strengthen the sector by buying aero Primus International Society for $ 900 million in cash.
Also note, the Financial Times, the fund Blackstone (-3.12% to 16.48 dollars) sold its shares in the Chinese Dili Group, while the group would not be able to freely adjust its prices .
Monaco is a territory of its own. Wedged between the mountains and the sea, the principality with its 32,000 inhabitants occupies only 2 square kilometers facing the Mediterranean. But this territory, where luxury cars are competing, and traveling in the roaring Formula 1 Grand Prix during the spring pulls its weight in gold.
According to a recent study by Knight Frank is in Monaco that the average price per square meter is the highest in the world for real estate: it takes an average of 66,500 dollars per square meter (about 46,000 euros per meter square) to find a luxury good. It rises to 100,000 euros per square meter for an apartment on Avenue Princess Grace by the sea The same study gives a figure of 28,000 euros per square meter for real estate in Paris.Prices of course reserved for apartments and houses except that this little something extra that seek privileged.
These are likely to have adopted Monegasque resident status which allows in particular not to be taxed on capital gains or estate inheritance (for the French recently become residents, the tax status, however, is more favorable). Havre many sports, home to thirty different nationalities ultrasécurisée, the principality's also rents apartments for the price of gold even though rents have fallen 25% since 2010 in some neighborhoods.During the Grand Prix, a terrace well placed can always find a buyer at 20,000 euros for three days! And in the district of Larvotto close to beaches, where the square meter is between 30,000 and 50,000 euros and where transactions are rare, a large two-room 80 m2 with terrace in a building built in the 1960s by the family shows a Pastor rent of around 3500 euros fast payday loan no faxing. To enable Monaco to stay in their cherished Rock, however, to the principality their rental properties to softer prices.
It was around the palace, found the oldest property in most Italian charm. "Not far from the palace, a house of 600 m2 is for example to sell 40 million euros," it says in John Taylor.
The land shortage
What is rare is expensive and Monaco has to deal with a small area. There is hardly any free land.In the 1970s, a whole district, that of Fontvieille, had been reclaimed from the sea is now a new port, shops, homes, this is the beating heart of the industrial and economic principality and that is the stadium of AS Monaco.
Prince Rainier had toyed with the idea of winning a territory of 5 hectares of the sea and to build some 300,000 m2, but the project was abandoned following the 2008 crisis.The subject he returns to the agenda in the medium term? It could be a way for Prince Albert of its mark in the history of Monaco and to give new impetus to the principality.
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The slump experienced by the Carrefour share in recent days is likely to facilitate even further the group's general meeting on Tuesday. Carrefour's shareholders must in fact decide on the demerger of Dia, the sign of hard discount group, the independent rating is scheduled for early July in the Madrid Stock Exchange. Carrefour's management motivates this project by the lack of synergies between Dia and the rest of the group, and a willingness to focus on Carrefour (Planet, Market, City, Contact …). If the split is approved, each shareholder will receive shares of Carrefour Dia, a company that alone could be worth at least 4 billion euros.
This vote, however, will crystallize the tensions accumulated during the past few months hectic for the distributor.The group has already had in early May, to bracket his other draft terms of division, the 25% stake in its real estate subsidiary Carrefour Property. This 100% Dia does not unanimously. The transaction is certainly strong, if not driven, by Blue Capital, the holding company common group Arnault and Colony Capital, which is the largest shareholder in Carrefour, with 14% of the capital and 20% of the voting rights. The fund Knight Vinke (1.5%) is also favorable.
What is the position of other shareholders? Halley family (founders of Promodes, which merged with Carrefour in 1999) owns approximately 10% of the capital. Some of its members would quietly campaigning against the split of Dia, creative in their view of a direct competitor to Carrefour Spain. Among the heirs of the founders of Carrefour, also head of more than 10%, Thierry Defforey took a stand against, but as individuals.Members of two families each vote as they wish: we can not speak or block in one case or the other pay day loans.
Appearance of floating
The question is how institutional investors vote, much in demand by both sides in recent days. The split must be approved by over 66% of voters to be ratified.
The vote of the General Assembly will determine the CEO Lars Olofsson, weakened by the disappointing results, but also for Blue Capital, the maneuver at Carrefour since his arrival in the capital early 2008 (at an average price per share of around 53 euros). For the holding, the division of Dia is a means to better demonstrate, finally, the share value Carrefour.
Shareholders, including those of employees, will benefit from the appointment on Tuesday to demand an explanation on the appearance of uncertainty that prevails at Carrefour.After two profit warnings last year because of Brazil, and another this year, the group said Thursday of bad news on the results in the first half.
The turnaround of Carrefour Property added to the doubts. Just as the instability of management. Several senior executives recruited by Lars Olofsson left the group. After the departure of James McCann, the chief had promised to be directly involved in the recovery, priority of the activity in France, before naming the day before yesterday a new boss … and financial communication is in keeping. Not to mention the open front in Brazil, where Carrefour seems to invite in Pao de Acucar, the partner of rival Casino.A move that could have been hailed as audacious, but was revealed at a time when the distributor promised to focus its forces on its French hypermarkets …
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GDF SUEZ announced Friday in a statement that "the general meeting of shareholders of Compagnie du Vent has decided to replace" its chairman and founder Jean-Michel Germa by Thierry Conil, "over 30 years experience in GDF Suez ". "A major strategic dispute," the statement continued, between GDF Suez, which owns 56.8% of Compagnie du Vent and its founder Jean-Michel Germa, which owns 43.2% is the origin of this separation.
Problem: Jean-Michel Germa judicially contest his dismissal, even though he knew his scheduled departure. First on the form. Feeling the dispute with its powerful shareholder grow for months, Jean-Michel Germa had sought this week the protection of the commercial court of Montpellier (seat LCV).He had requested the postponement of Thursday's meeting but GDF Suez has received the same day, the Tribunal de Commerce "authorization" to conduct this meeting. Jean-Michel Germa considers that the meeting "was not held." The founder of the company that employs 156 employees (sales: 27 million) is "very shocked" by the group methods.
On the merits, the proposed wind farm on both coasts, off Tréport is at the heart of the dispute between the two parties. "I wore this folder on the baptismal font for more than six years," says Jean-Michel Germa. Since 2005, he sought a major partner, not being able to invest only 2.5 billion euros of this pharaonic site of more than 100 offshore wind GDF Suez said this in 2007.Only offshore project in France to have passed the stage of public debate and to have obtained permission trunking park on both sides to eventually be included in the five zones affected by the imminent bidding of the government. Germa estimated that his company could legitimately respond to the bidding as prime contractor, with GDF Suez and all interested partners.
Regain control
The group Mestrallet which just announced an alliance with Areva and Vinci to participate in the tender intends to resume the hand and accuses Jean-Michel Germa its "independent development approach." "We do not aim to be your bank, it is argued in the entourage of the group.GDF Suez eyes, only the creation of a true industrial sector will invest successfully niche offshore wind: "Between the amounts required and the risks to assume the financial stakes are so huge it takes deploy a comprehensive strategy. "
Other disputes have marked the common path of CTA and its controlling shareholder. Today, Jean-Michel Germa figure at 490 million euros loss suffered by his company, counting the resumption of the park on both sides by GDF Suez.
Energia says victim of the same strategy
While the government prepares to launch the tender on offshore wind farms and to renew some concessions hydraulic group Mestrallet began to gather around "a great center" activities in the Renewable France previously dispersed in several subsidiaries.The group, which currently has a portfolio of 1000 megawatts (MW) wind farm, wants to double within five years. The multinational company has invested 135 million euros in CTA believes it was time to take complete control. Jean-Michel Germa denounces what he sees as a strategy of GDF Suez, which is "to transfer the assets of companies that the group claims to have bought too much, empty them of their substance out minority shareholders on the cheap."
Fabrice Crobbedu, former head of Energia, a small business specializing in heating, acquired by GDF Suez in 2008 to 54% consider themselves victims of this same strategy. Revoked in 2009, it remained a minority shareholder. At GDF Suez, the response by explaining that Fabrizio Crobbedu is suspected of abuse of corporate assets. The judicial successive episodes.Until this year, going back to Friday when Fabrice Crobbedu grabbed the Commercial Court to challenge Nevers, too, holding a general meeting.
"Asia, the Mecca of luxury groups. This could be the slogan applied to Gucci, Prada, Burberry, Hermes, Dior and others at the end of the financial and economic crisis that has shaken the past three years the global economy. For all these companies, if they were not spared by the crisis, have largely absorbed the shock by taking advantage of the growing appetite of Asian markets for luxury, chic, and know-how almost craft of some European countries.
This appetite, the luxury sector was well integrated, making the Asian market including China and Japan, their main growth drivers. For example, the French LVMH in 2010 from nearly 35% of its turnover in Asia (25% excluding Japan).In the first quarter 2011, excluding sales of the Japanese archipelago (affected by the tsunami on 11 March), billings Asian group Bernard Arnault grew 24% and 30% on the only Chinese territory.
Finally, by 2015, China should be the first global luxury goods market in all sectors according to consulting firm Pricewaterhouse Coopers. And to develop there, Western societies today are choosing bulk of trading in Hong Kong, the gateway to become known in China. "With its historical heritage, the Hong Kong is much more attractive than that of Shanghai, details of William Corbiac, emerging equities manager at Axa IM. It is much more liquid, accounting standards are long Anglo-Saxon, there are many financial analysts, fewer permissions and cheaper.In Hong Kong, Western investors feel almost like home. "
Making a name
This is the typical case of American Coach, specializing in accessories (shoes, bags, sunglasses, jewelry …) who announced in early May will be doubling its side by the end of the year, Stock Exchange of Hong Kong and its place of origin, New York. For all the luxury groups, for historical reasons or qualitative, not in Asia have the notoriety of LVMH or Hermes. The goal of Coach is clearly stated: "better brand awareness among consumers and investors in the Chinese market and throughout Asia," according to its CEO Lew Frankfort said in a statement.
This Friday, the luxury goods group Burberry has come to swell the ranks of contenders.Already present in London Stock Exchange, the British group would try to seek a listing in Hong Kong by Hong Kong Economic Journal, to "increase the interest of Asian investors."
The idea is not new. "Many Chinese entrepreneurial companies, including Internet companies and in renewable energy, are parties in the 2000s to seek a listing on Wall Street to take advantage of both technologies and to conquer the U.S. market, said William of Corbiac. We can now do the exact parallel with these Western groups visionary who want to be closer to the markets they want to grow. " A listed company must indeed comply with the requirements of disclosure and / or related to its activity, which increases its exposure to the media and therefore the general public.What support development activity in new geographical area. A strategy that seems to have also adopted in another sector, BNP Paribas. Initially, the French bank will not undertake a capital increase at its eventual listing and just want to "enjoy a better visibility in China."
A significant influx of capital
But watch it only as a matter of image. For BNP Paribas may, in a second time, make an appeal for funds on the Hong Kong site, thus killing two birds with one stone. For their part, the intruding Western luxury brands in Hong Kong are also looking to take advantage of capital and investors who flock to this place. In 2010, according to data from PricewatershouseCoopers, nearly 45 billion euros have been raised, an increase of almost 80% over one year.And for 2011, the firm estimated 30 billion funds in Hong Kong through introductions. A total of one hundred companies are entering the stock each year, more than half are Chinese.
This is the case of the Italian Prada, which recently received the green light from authorities in Hong Kong market. Pending the final IPO price (June 16) and the introduction scheduled for 24 June, the Italian company hopes to raise about 2 billion dollars (1.4 billion euros). After three failed attempts, Prada therefore preferred to Hong Kong to Milan, saying "better" opportunities offered by the international capital market.
Before her, and with the same motivations, the French L'Occitane has chosen Hong Kong to make his first public offering, there is just one year.One way for the group operating on the cosmetics market is very dynamic in Asia and almost treated as a luxury brand, to raise 532 million euros. What repay debt and finance part of its development. This gamble on the brand image now appears successful, while Reinold Geiger, President of L'Occitane, explained that he initially had great difficulty to prevail in Taiwan and Hong Kong. And for investors who subscribed to the introduction, the operation has also been very positive, because despite the turbulent early sessions, the stock rose over 30% year on year.
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In real estate, Paris is not France. So goes the refrain sung Thursday by the Higher Council of Notaries. In the capital, in fact, prices never stop rising. Last year, the increase was 17.5% and per square meter was worth, on average, 7330 euros in old housing. The boom continued in early 2011. "From December 2010 to February 2011, prices rose 5.2%, says Mr. Thierry Delesalle, president of the real estate commission of notaries in the Ile-de-France. In twelve month rolling period, from June 2010 to June 2011, we will not be far from the 20% increase. "Soon, the ceiling of 8,000 euros per square meter in Paris will be reached.
Relying on the promises of sales in the first quarter of 2011 signed, notaries believe the square meter in Paris will average 8,028 euros in June. This will rise to 15,500 euros in even the most expensive neighborhood in the capital, the Champs-Elysees.And this movement does not seem ready to break if we are to judge by the large number of transactions: first quarter in Ile-de-France, they rose 16%.
Click on the thumbnail to enlarge the graphic.
Fewer foreigners in Paris
Contrary to popular belief, foreigners are not responsible for the rampant price increases because they are less active than before the Paris market: last year, they accounted for 6.5% of buyers against 7.6% in 2009. The result? "We should see the price differences widen between areas traditionally preferred properties such as Paris and those economically disadvantaged in which a decrease has already been committed," said Pierre Bazaille, president of the Institute for Notarial real estate cash advance america. In fact, in the province, the changes are more chaotic.Overall, prices have also increased but less dramatically than in Paris. They set up in 2010 by 4.7% for older apartments and 10% for houses. But since early this year, the situation is contrasted by areas or cities.
In Lille, for example, home prices fell 6% to 170,000 euros on average in Bordeaux, one of the apartments has decreased by 1%. Less than 3% also for apartments in Rennes, where the square meter is now worth 2212 euros. On the other hand, for apartments, in Brest, the price per square foot rose by 7% to 1527 euros per square meter. The increase is more limited but very real (+3%) in Lyon, where the square meter is 3102 euros.
Difficult, with that, whether property prices will rise or decline this year in France. According to Mr. Pierre Bazaille, the trend towards a higher but moderate (between 0 and 3%).A development that will depend on exogenous factors such as rising interest rates on mortgages or advertisements referring to the SP in its program the rent freeze.
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After France, Germany. The support of Nicolas Sarkozy to Mario Draghi should accelerate an official position in Berlin, which will be decisive to the European Council in June If Angela Merkel Knights turn Mario Draghi, the Italian's appointment is granted. If she vetoes, even verbal, post escape him.
According to relatives of the Chancellery cited by the business press, Angela Merkel is more qu'embarrassée by the statement by Nicolas Sarkozy, who allegedly caught short once more."The government will decide on possible candidates in a timely manner," said the spokesman for the German government.
"The decision on the successor of ECB President Jean-Claude Trichet, will be taken at the next EU summit," said Steffen Seibert.
Contrary to his finance minister Wolfgang Schäuble, Angela Merkel believes that the arrival of an Italian to the position of treasurer general of Europe would be an indefensible decision against the German public.
"At any price this Italian!"
The popular press, leading Bild, has continued to point the finger at the overspending in the South."At any price this Italian! "Until recently headlined the tabloid Berliner, who does not hesitate to denounce tax evasion in Greece and the taste of the Italians for inflation.
The euro crisis has revived the Germans the trauma of abandonment of the Deutschmark, for countries of the "Club Med" they never considered worthy of the single currency. At the time of the creation of the euro, Germany was suspicious of accounts of Italy … In this context, the appointment of Mario Draghi, capable and respected as it is, at least appear iconoclastic in Germany .
However, the application of the Italian made his way into the German political circles. After having praised the German economic model in the press Frankfurt, Mario Draghi has managed to win support weight in the person of Wolfgang Schäuble, who has the ear of the Chancellor."Schäuble enjoys good reputation Draghi as central banker, his integrity and personality," says a senior official in the Handelsblatt.
More than the opinion of Wolfgang Schäuble, is the support of Nicolas Sarkozy puts Chancellor in a difficult position. Exercise a veto Draghi's candidacy to head the ECB might trigger a new crisis in the euro area and create a damaging conflict with France, even as relations between Paris and Berlin were severely affected by denial Germany to support the UN resolution on Libya.
All experts agree that this March is decisive for the euro area. So decisive that Moody's has seen fit to deliver a blow pressure on European countries, on the eve of an important EU summit, degrading the Spanish debt rating. And a few days after he had done the same with Greece.For Nicolas Veron, an economist at Bruegel European Think Tank, "Moody's does that reflect the current consensus in the markets where heads of state should quickly agree on measures to better cope with the debt crisis .
"The rating agencies want to dictate their law to Europe"
So that is precisely what Europe is about to finalize Friday, the rating agency would not she putting in new fuel to the fire? Or diagnose it a lack of enthusiasm on the part of European countries to find a consensus? Philippe Dessertine, director of the Institute of High Finance in Paris X, the rating agencies want to dictate their law to European countries. "The rating agencies are in control of their schedule," he says.Once an agency has information that allows it to ascribe with certainty a note, it must do, otherwise nobody would trust him. "
Singled out in 2010 for European countries heavily degraded and often unintentionally, the rating agencies do not fail to raise anew the questions and even criticism. The most virulent from countries concerned. In a letter to EU leaders, the Greek Finance Minister George Papaconstantinou calls for action "urgent" against these agencies to "self-fulfilling prophecies."The last degradation of Greece is more indicative of the distorted incentives of the agencies, and the fact that we do not ask them to account, that the actual situation of Greece," he adds.
Rating: "Having a better regulated environment"
Like last year, Moody's will therefore triggered the hostilities before that European countries will gather. Why did she not wait for the outcome of lce EU summit and in the case of Spain, the diagnosis provided by the Bank of Spain on the health of the banking sector? And especially since it is rather positive. As the government anticipated, Spanish banks would need 15 billion euros and not 50 billion as assessed financial markets. The Spanish Minister of Economy Elena Salgado said his "differences" with Moody's."Our decisions take into account four criteria: the strength of the economy, institutional stability, sound public finances and the likelihood of a risk" of default, Moody's defends itself from the AFP.
Anyway, this new controversy revived the issue of reforming rating agencies. And that's good, Brussels intends to offer "before the end of summer" reforms "core" on the regulation of rating agencies. "The Last Days are once again highlight the importance of having a better and more controlled environment for ratings," stressed the EU Commissioner for Economic Affairs, Olli Rehn, and one charge of financial services, Michel Barnier Thursday in a joint statement.He concluded: "It is clear that the objectives of the reforms will be to put some diversity in this highly concentrated industry, reduce the excessive reliance on notes, to improve the rating of sovereign debt, resolve conflicts interest '.
Otherwise, in addition to the thorny issue of soaring oil prices, Europe will have to address as soon as possible that the debt crisis is far from closed. Contrary to the good performance of financial markets in January and February suggest.
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