Italy does approach the point of no return? Some finance ministers could not help looking up to heaven on Tuesday, after a new camera in Brussels, while two indicators concern for the future of the single currency were turning to red: the level interventions of the ECB to calm the markets and the cost at which borrows the European Financial Stability Fund (EFSF), which constitutes the first line of defense if Italy were to switch after Greece, Portugal and Ireland.
The ministers of the euro seems to have learned anything from their Italian counterpart Giulio Tremonti, who came to Brussels to plead the cause of a Berlusconi government now condemned. "Markets drink the cup for a week, but Rome means the same song," laments a spokesman. Italy, in turn, "enters the vicious circle", continues a senior official.On another front to defend the euro, the EFSF has faced 104 basis points above the rate paid on its debt (3.59%) to place its 3 billion euros of bonds. The bailout fund retains its AAA, but it seems already sealed by the ball Italian. "The cordon sanitaire erected around Greece is showing signs of collapse, 'says a senior official.
Specter of a meltdown
The establishment of the famous "firewall", arrested Oct. 26 at the top of the euro, was precisely the issue of the appointment of the Eurogroup in Brussels. After the political decision, it remains to fill the coffers of the EFSF new way: European budgets are already in the grip and large foreign investors reluctant to buy its bonds in an atmosphere poisoned by the specter of a collapse in Italy.
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Washington correspondent
Groupon refused to sell to Google last December for $ 6 billion. From Monday, October 24, the company of Chicago, specializing in online distribution of discount coupons for shopping in local markets, should make its IPO on the basis of a valuation of 10 to 12,000,000,000 dollars . However, it is far from the capitalization of 15 to 20 billion, of which Andrew Mason, founder of the company was still dreaming in June.
Several developments have forced Groupon to be more modest. The first hit all companies eager to use public savings. This is the market collapse in August. Investors, fearing a relapse of major economies in recession, are much more circumspect.The proposed IPO of Groupon had been suspended between August and October.
Even more problematic for Groupon: missteps have troubled his potential investors. On the intervention of regulatory authorities, the firm three years old had to revise up sharply the amount of its actual expenses. She had initially forgot to include online advertising spending to acquire customers. And without the investment of 432 million over six months, she could never show a turnover of 688 million.It is only through this aggressive marketing Groupon also have accumulated more than 115 million subscribers and more than ten-fold increase in sales in one year.
Affected by other accounting blunders – including the inclusion in its sales revenue and then transferred to merchants – the CEO of Groupon, Margo Georgiadis, resigned after only six months on the job easy payday loans. It has not yet been replaced. In addition, Groupon has to convince that his model is viable and that the start-up can stand up to the strong competition rages, especially from Amazon, Google and industry experts as LivingSocial. For now, Groupon is the industry leader – an advantage that distinguishes all Internet companies tempted by the Stock Exchange today.
Sunrise 500-700000000
But stay number one requires a considerable investment.Number of traders attracted by its staff are aware of the experience that customers quickly drawn into their shop with coupons do not necessarily come. To remain attractive to merchants, Groupon and peers rely on the creation of thematic niches (travel, babies, etc.)..
All this explains why Groupon not trying at first to rise from 500 to 700,000,000 dollars. If strong demand materializes, it could go further, or wait a few months and get a higher valuation. Advised by Morgan Stanley, Goldman Sachs and Credit Suisse, Groupon could also benefit from investors' appetite for Internet stocks. Of Zynga Facebook, candidates are numerous, but few have passed the time.
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Euro countries, including France and Germany plan to push a few days at least the Euro Summit in Brussels originally scheduled for Oct. 18, according to European sources consistent.
This is to give a little more time to the development of the answer "global" announced this weekend in Berlin by Nicolas Sarkozy and Angela Merkel. The European Council President Van Rompuy must specify the new calendar in the day, according to his entourage.
'Global response'
In Berlin, the President and the Chancellor had foreshadowed the shift by promising "sustainable solutions, comprehensive and fast before the end of the month."They also kept to define the contours, which allows to believe that the agreement is to be locked at seventeen if not two, on the key points: the recapitalization of banks and the role of the European stabilization financial, finding economically viable treatment for Greece and modification of European treaties in order to strengthen collective discipline.
Europeans to revise their copy, just three months after concocted, July 21, a plan intended to resolve the crisis in Greece and curb its spread to Italy or Spain. It has not yet been adopted by all Seventeen. The vote of Slovakia, with a coalition divided on the subject may become paralyzing veto and the euro area.
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Meetings on Greece and are very similar, a little. Following a meeting which ended yesterday, the finance ministers of the euro area have not taken any decision regarding the granting of the next tranche of 8 billion euros to Greece vital for the country.
The ministers of the Eurogroup, however, managed to find a compromise with Finland, the day after his election, had demanded of the counterparties to its participation in the second aid plan Greece's 109 billion euros decided July 21 last. Thus, the collateral will be provided in exchange for loans to Greece, said on Tuesday the Finnish government.
Efforts required to Greece
• The Eurogroup requires additional budgetary efforts of Greece, who said the day before not being able to meet its commitments to reduce its budget deficit."We call on Greece to take additional measures" in terms of savings for 2013 and 2014, thus going beyond those that have just been announced for this year and next, warned the president of the Eurogroup Jean-Claude Juncker. The euro area also recommends Athens to undertake more privatization of companies.
Increase the contribution of banks
• The President of the Eurogroup has also raised the possibility to contribute more financial rescue banks from Athens. Institutions might also undergo a discount greater than 21% of their claims previously considered Greek. There will be "technical revisions" on the subject from what was decided on July 21, he said.But Jean-Claude Juncker warned that "the involvement of the private sector, we must take into account the fact that we have experienced changes since the decision of July 21."
New missions Stability Fund
• And the ministers have suggested to increase the firepower of its Financial Stability Fund (EFSF). Ministers plan to make the fund more "efficient", as demanded insistently the U.S., but refuses however to increase its volume. This fund could help and use of leverage.
In this way, the mechanism would be allowed to use debt to leverage its ability to act. Several scenarios are circulating, the EFSF could turn into a bank that would finance itself from the European Central Bank (ECB).It could also act as an insurer from the holders of debt and cover their losses at 20% to 25%. Options involving the ECB should not be privileged ones, said Jean-Claude Juncker, without giving details.
The Eurogroup is reassuring
After the meeting, ministers have played the card of appeasement. The Eurogroup President said that Greece would be "able to fulfill its obligations" financial. He reiterated that a "failure of Greece will be avoided, adding that a person contemplates leaving Greece in the euro area."
He says that "final decision will be taken in the month of October" based on the findings of the creditors of Greece currently deployed in the country. The meeting between Nicolas Sarkozy and Angela Merkel in Berlin on Sunday planned should also do more advanced discussions.The Franco-German meeting will also prepare for the forthcoming European Council and the Eurogroup meeting on 17 and 18 October in Brussels.
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Washington.
A symbol. Barack Obama has surrounded himself Monday police, firefighters, construction workers and teachers whose jobs are threatened by future budget cuts planned by local authorities. During a speech in the Rose Garden of the White House, the president wanted to highlight those businesses that affect the American electorate to sing the praises of his new stimulus plan announced $ 447 billion last week.
"This plan will help our economy in times of crisis … The Congress must immediately pass the American people can not afford to wait fourteen months before we do something," said Barack Obama referring implicitly to the date of the next presidential election in November 2012.The "American Jobs Act" – the name of law – must be voted without the "little games" or "party politics," warned the president that does not want to relive the psychodrama of the summer, with negotiations on raising the ceiling debt.
The Head of State argues that thousands of jobs in public services will be saved if its plan is quickly passed. It provides for $ 130 billion transfer of funds to states to avoid redundancies of civil servants, restoring schools and launch infrastructure projects. The main component of the plan is, however, on $ 175 billion relief of charges paid by employees.Small businesses will also benefit from 65 billion to reduce charges to encourage them to hire.
Still refusing to go into details, the White House maintains that the financing plan will be covered by savings elsewhere, or additional revenue. We should know more on Sept. 19, when the president will submit proposals to the bipartisan Congressional commission tasked with identifying 1.5 trillion dollars in budget savings over ten years. The Director of Budget at the White House, Jack Lew said the President would propose 467 billion in savings.
"It is likely that there is an agreement"
Analysts do not believe that the White House manages to be adopted by all the parliamentarians of the recovery plan proposed. But a compromise seems to be emerging.In particular, the Republicans are seduced by the proposed reduction in charges paid by workers and small businesses. "In my view, it is likely that there is an agreement. The key measure will be tax cuts for small businesses … that we will bring the total plan of around 250 billion dollars, "judge Greg Valliere, chief of the Strategic Policy Advisor to the Potomac Research Group.
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After a smooth start Monday, the prestigious yearling sales at Deauville * Tuesday saw the excitement of great days with a filly born to the purple.
When she was presented the "ring" of the Establishment Elie de Brignac, located opposite the racecourse The Touques, tension immediately rose several notches in the gallery hosting the auction buyers and quickly flamed .
For this filly, by the stud of Perelle, is a daughter of Galileo, the best stallion in the world (it's riding the famous Coolmore Stud in Ireland and its projection amounts to tens of thousands of euros).As for his mother, Sanjida, after the breeding of His Highness the Aga Khan is a close relative of Sarafina champion, winner in 2010 of three groups I, including the Prix de Diane, Qatar and the last third Prix de l'Arc de Triomphe.
Quickly, the auction turned into a duel between two Australian businessmen, Paul Fudge and Paul Makin, both thoroughbred breeders and owners of racehorses. Finally, the first had the last word with a bid of 1.7 million, the auctioneer lowered his gavel and say the traditional "awarded" for Lot 138.
The 2002 record still stands
This amount is probably the "top price" sales in 2011 in Deauville, which will end Thursday make quick cash. But the record set in 2002 still stands.At the time, Sheikh Mohammed Al Maktoum, Ruler of Dubai and owner of the Godolphin stables, one of the largest in the world, did not hesitate to pay 2 million euros to buy the filly Vimy Ridge. This year, like last year, Sheikh Mohammed and Sheikh Hamdan's brother, are not present on the Normandy coast because of Ramadan.
In addition to the price achieved by the daughter of Galileo, fifteen yearlings yesterday exceeded the threshold of 200,000 euros, which allowed a rebound. "On the combination of the first two days, there was a 20% increase in sales compared to 2010, said in Galop Day, Eric Hoyeau, the president of Arqana, organizer of sales. The percentage of sales increased by 68% to 71.3%. The average price 145,500 euros against 150,000 – it is substantially equivalent to that of 2010. "
After the first two days, its objective, namely a slight increase over 2010, a year marked by a fall (-28%) of sales of sales of Deauville, becomes more and more feasible .
* Thoroughbred of 18 months
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The mining industry in developed countries is not quite dead. Yet the crisis of 2008 had seemed to him a fatal blow, after years of attrition caused by the scarcity and soaring costs of extraction. But today, the United States, the United Kingdom, Canada … mines reopened thanks to soaring commodity prices.
Chibougamau camp, north of Montreal, had not survived the collapse of prices and had to close in 2008 after fifty years of activity. But the soaring price of copper (+47% in one year), gold (+40% in one year) and money (113% in one year) has to hope René Galipeau, CEO of Nuinsco: "Hundreds of children left when the production was closed after years of operational and financial problems.But work on only two mines could lead to the reopening of the Chibougamau camp … and the return of minors to accelerate the revival of the region. "
Nuinsco group is not the only one who had this idea. Many investors would like to reopen the largest gold mine Bontddu UK (Wales). It must be said that the price of gold rose from $ 250 per ounce in 1999 to 1850 dollars lately!
Local authorities are sometimes hostile
"When we closed the mine, it had become too expensive to operate but with the rising price of gold, we are considering reopening the Clogau mine," Wales said Ken Jones, manager of marketing Clogau Gold jewelry company which owned the rights to the mine.
Other metals are benefiting from soaring prices.Thus, the largest silver mine in the United States will also open in Texas as well as the Chino Mine (copper) in New Mexico. In Britain, the last tin mine, South Crofty Mine, closed in 1998, remember to return to activity. The metal price has increased fivefold over the period (+51% over the year).
Nevertheless, we are still far from the great return of the mining industry. Two challenges are needed to interested investors: the financing of such a project (Nuinsco believes that it would require 40 to 50 million dollars to revive the Chibougamau camp) and agreement with local authorities, sometimes hostile projects. This is the case in South Crofty in England, where the community wants to build a recreation center on the site.
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In Berlin
Leading economic powers of the continent, Germany continues to print a rapid pace in the consolidation of public accounts. The Federal Ministry of Finance has fixed Monday downward its forecast deficit for fiscal 2011, reducing it to 1.5% of GDP, against 2.5% so far.
With seven consecutive months of increases, tax revenues fueled by favorable economic conditions help to clear the accounts. Despite the crisis of the euro and the slowdown brutal (0.1%) of growth in the second quarter, Germany displays unique performance in Europe. It is even "a balanced budget in 2014," according to the monthly report of the Ministry of Finance.
As good news never comes alone, the Bundesbank has maintained its growth forecast for the year, around 3%, despite the uncertainties on the global economy.Uncertainties also swept by the Finance Minister, Wolfgang Schäuble, who sees "no signs of recession on the horizon" and "no cause for concern," despite the decline in exports and domestic consumption, traditional 'heel Achilles of the economy across the Rhine. With these results, which provide water to his mill, Germany does not want to break the pattern that ensures its development. With even greater risk of stuck behind its partners in the crisis and strengthen the idea of a Euro at two speeds. The Eurobonds are still seen in Berlin as a bad idea. Such obligations could put a strain on public accounts and stopping growth. Estimates vary, but the most pessimistic estimate that the pooling of risk could cost 25 billion per year budget.Half the projected deficit for this year.
Meet Baroin
In its traditional large back-up interview on public television, Chancellor Merkel called Eurobonds "wrong answer to the crisis." And showed its determination in the battle with speculators, "The markets want to force us to do things that we do not want to. Policies can not and should not run behind the markets. "The only Conservative leader weight to leave the door open to this option is Wolfgang Schäuble. However, it is satisfied that it is necessary first to establish a common budgetary and fiscal policy. He will discuss this and a tax on financial transactions at the meeting scheduled for Tuesday morning in Paris with his French counterpart, Francois Baroin.The two men were responsible for making joint Franco-German proposals on these two subjects in the fall.
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After the storm that brought down the CAC 40 over 5%, the Paris Bourse rebounds. But at the cost of very high volatility. On Thursday, after opening up 2.96% to 3092.16 points, the CAC 40 index resumed its downward shortly before noon and sank below the threshold of 3000 points, already briefly reached Tuesday. Half an hour after the opening up of Wall Street, with two good indicators on employment and housing, the index slope gently went back after plunging 2.40% to 14 hours. It was up 2.47% to 3077.06 points shortly before the close.
Meanwhile, in Frankfurt, the DAX climbed 3.12% to 5788.64 points. The FTSE-100 index of London Stock Exchange gained 3.01% to 5157.94 points.Milan Mib took the FTSE 4.36% at 15,316 points, and the Ibex-35 index of the Madrid Stock Exchange climbed 4.09% to 8291.7 points.
The concerns are far from being dissipated, particularly those relating to the slowdown in the global economy and the issue of sovereign debt on both sides of the Atlantic. Evidence of this tension, gold continues to fly record after record. The precious metal has crossed the threshold of 1800 dollars. It is this Thursday morning in 1790 dollars, after hitting a new record of 1815.50 dollars.
Oil prices also retreated in a market that once again expressed its concerns about future growth and energy demand.On the New York Mercantile Exchange (Nymex), a barrel of "light sweet crude" for September delivery was trading at 82.39 dollars, down 50 cents from the previous day.
Bank stocks battered
Among the values of the day include banking, which have been heavily tested yesterday. The Financial Markets Authority (AMF), the stock market regulator, announced that it will monitor developments in the securities sector. Shortly before noon, BNP Paribas (-5.88% to 33.515 euros), and Credit Agricole (-1.51% to 5.981 euros) and plunged into the red after yet open on a rebound.
The title plays yoyo Societe Generale: having lost 14.74% Wednesday, it opened on a rebound of almost 9%.He dived again from 4.13% to 21.265 euros in midday before regroup after the opening of U.S. markets (-0.45% to 22.08 euros to 16 hours).
"The willingness of these attacks is to force the SG to a capital increase, which is the workhorse of some analysts and hedge funds in recent months," said an analyst based in Paris at the agency Reuters cash advance. "Their reasoning is that the group does not generate enough capital to cope with the capital ratio of over 9% in 2013." The bank, already shaken in 2008 by the Kerviel affair, only to find the investor confidence after several warnings about its results during the financial crisis.
For its part, the CEO of the bank, Frédéric Oudéa, denounced, in an interview with Le Figaro, "the series of attacks" against the French banking sector "sounds completely fantastic, I struggle with the utmost force, attacked Societe Generale, "he lamented. "We have no fear about our ability to raise capital," he added. SocGen has asked the AMF to investigate the origin of the rumors that have depressed its course Wednesday.
Alcatel-Lucent takes advantage of Cisco's results
Veolia Environnement (4.61% to 10.55 euros) and STMicroelectronics (3.39% to 4.488 euros), especially titles attacked in recent days, return to the field.
In addition, EADS (1.66% to 20.24 euros), the parent company of Airbus, said Wednesday it will not achieve its objectives in the United States in 2020 without new acquisitions.
Title Alcatel-Lucent (2.11% to 2.324 euros) rose after the release of quarterly results from Cisco Systems, above the consensus of Wall Street.
L'Oreal (2.29% to 1.73 euros) benefits from the decision by Goldman Sachs, which added its list of preferred European stocks to buy ("pan-Europe conviction buy list").
Saint-Gobain (1.11% to 31.775 euros) has announced the acquisition of Solar Gard, a subsidiary of Belgian group dedicated to Bekaert Specialty Films, as part of its strategy to accelerate its growth through acquisitions.
Maurel & Prom rose 4.22% to 12.35 euros after opening up over 8%. The oil company has reported a surge of 123% of its revenue thanks to increased revenues in Gabon and Nigeria.
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"Apple against the disadvantaged." The title of the last note on the market shelves DisplaySearch force hardly relate. Competitors of the iPad accumulate disappointments.
Motorola announced last week it sold 440,000 of its shelves Xoom in the last quarter, which is better than expected. But it has revised downward its objectives for 2011. He no longer expects to sell 2 million in the year, but between 1.3 million and 1.5 million. Even though Motorola has introduced an offer to pay 100 euros for the purchase of the tablet, initially at 579 euros. "Apple has set the benchmark price for a tablet of 16 GB Wi-Fi is 499 euros – or dollars – no more," says an analyst. And even at that price, it does not. Motorola is far from the only one to have experienced. Acer has drastically revised its ambitions.Taiwan is now focusing on the annual sales of between 2.5 million and 3 million, far 5 to 7 million initially planned. Others could follow, including RIM. The manufacturer of the BlackBerry Playbook sold 500,000 in one quarter, but sales have slowed rapidly.
The price cuts and promotions of all kinds pose another risk in the market: consumers lose the notion of "fair price".
The tablets could have been a generator margins for manufacturers, but by reviewing their rates too quickly, they may have already lost the opportunity. "Brands and retailers that compete with Apple running after him, and in their desperation, they might be digging their own graves, says a study by DisplaySearch guaranteed payday loans.This gives the impression that these products are not completely finished. "So, with 9 million iPad sold in three months without any price cut, Apple seems unassailable, fumbling away the beginnings of the iPhone and revisions price.
Fade margins
Competition does not, however, weakens. Samsung will launch two new versions of the tablet at the end of the month, the Galaxy Tab 10.1 and the Galaxy Tab 8.9. They will be sold, respectively, to 489 euros and 459 euros for the 16 GB Wi-Fi, exactly the price of an iPad. By choosing a price positioning similar to Apple, Samsung is also taking a big risk in case of commercial failure, it will have little excuse. And while the competition on the market shelves is expected to increase further by year-end.Other players will enter weight, such as Sony and Fujitsu.
Why this craze for tablets, while only Apple seems to succeed at the game? Because more and more industry players are convinced that very quickly supplant the PC shelves in homes. Joseph Reger, CTO of Fujitsu, said he was "convinced that sales of Tablet PCs will exceed those of (netbooks and notebooks) to consumers by 2016." He also said that Amazon could launch a $ 299 tablet: "A consumer could afford them two for the price of a PC." Shelves would meet the main expectations of individuals, more likely to consult the content to create. They therefore prefer the portability and ease of use. Used in any room of the house, they would disappear the concept of office. Saves space in store!
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