After months of negotiations, the Basel Committee has established a new international regulatory framework for banks. The device signed by 26 of the 27 member countries of the committee shall enter into force early 2012. Only Germany still dragging feet and abstained from voting certain amendments. The reform is focused particularly on increasing requirements for capital adequacy, liquidity, debt and reserves to help banks get through another crisis proportions.
Among the new regulations, the Committee plans to incorporate a ratio called leverage ratio between equity and liabilities reported in the bank. Between 2013-2017, the ratio set at 3% minimum will not be binding. Then starting in 2018 a leverage ratio has to adhere to be defined."Today's agreements represent a landmark achievement in the context of strengthening the soundness of the banking sector," commented the President of the European Central Bank Jean-Claude Trichet cash advance loan no fax.
Adjustments favorable to France
However, some proposals have been postponed. Banks will include the possibility of taking into account, in part, capital of insurance subsidiaries in the calculation of bank capital, a relaxation which household particularly French establishments. Furthermore, the position of the United States, which have still not applied the rules of Basel II in 2008, raises doubts. "We're not sure they apply the rules in the same terms as European banks," said Baudouin Prot, BNP Paribas boss, in an interview with Le Figaro.
While on Monday the confrontation between indicators showing continued recovery and increased uncertainty about the outlook for next year has generated a surge in "volatility of volatility". Yesterday, the CAC 40 was chained up its fourth session in a row. In the wake of Wall Street in early trading. Then took a dramatic turn Mood'ys severely degraded note of Greece, four notches. The rating agency believes that the rescue plan launched by the country is useful but that accompanying measures are risky. Therefore, the U.S. indices swung around and eventually declined.
So, this Tuesday, the atmosphere should be more tense. The CAC 40, which finished above 3,625 points on Monday, is expected to open in fall Tuesday morning.
The euro was maintained slightly above $ 1.22 on Tuesday morning.For Herman Van Rompuy, Chairperson of the European Council, "the markets have been too lenient in the first ten years of life of the euro, now they do overreact to minor incidents."
Zew, unemployment in Europe and U.S. industry to follow
In the EU, new car registrations in May will be announced at 8:00, then unemployment in the euro area in the first quarter to 11:00, at the same time that the figures on foreign trade in sixteen countries.
Another important figure on Tuesday, the barometer Zew German, regarded by most investors worldwide.
In Strasbourg, European Parliament, held today a press conference of the European Commission issued its opinion on the efforts made by twelve countries, including Spain, France, Portugal and Germany, to reduce their deficits excessive.
In the U.S., the import prices in May will be announced at 14:30, and industrial activity in and around New York for the month of June
Electricity: Bill Nome voted today
EDF, GDF Suez and Poweo could hold the attention while the National Assembly must vote on the bill Nome on the organization of the electricity market.
According to the Socialist deputies, this reform will result in an increase of 11% to 15% of electricity rates for individuals.An interpretation strongly denied the meeting by the Minister of Ecology Jean-Louis Borloo: "I heard here and there that there could be increases in fares. Of course not! "
France Telecom's Orange will now be able to practice cross-selling, the Competition Authority has ruled on Monday that he could, like its competitors Bouygues Telecom and SFR, use it cross his client files and mobile Internet, so far apart.
Such notice "limit the competitive disadvantage imposed on France Telecom" which, as operator of history, is subject to a number of constraints by the competition law, the group responded in a statement.
Video Games This opens Tuesday in Los Angeles at E3, the world exhibition of video games.To be followed, any announcement on the sector.
BanquesNicolas Sarkozy and Angela Merkel will militate G20 for the creation of a tax on banking and financial transactions. The idea of an economic government of the 27 has also been mentioned.
The Societe Generale bank maintains its investor day on Tuesday. She said Monday night that forged a business alliance in the securities business with U.S. Bancorp Fund Services, a subsidiary of U.S. Bancorp U.S. bank.
The CAC 40 index which comprises the forty largest capitalization of the Paris market, will be 41 values within one day, Friday, July 2, with the division of the Accor group, said in a statement Friday the exchange operator NYSE Euronext.
Accor, which is part of the CAC 40 will separate into two entities, one containing the name Accor hotels and gathering activities, and the other called Edenred, representing the prepaid services industry (Ticket Restaurant, gift cards bad Credit payday advance ..).
On July 2, two new groups will therefore part of the CAC 40 Edenred do so before the index feature of Parisian place before the opening of the meeting of Monday, July 5, said NYSE Euronext.
The general meeting to approve the demerger will take place June 29, days before the listing of the two entities.
ALSO READ:
The division of Accor effective early July
Gold broke his own record
Like last week, the attraction of gold can not be denied on the markets. Despite the aid plan of 750 billion euros earmarked by the European heads of state, investors worried and rushed to gold. The gold chains the record: the rising price ended at 1249.40 dollars, never seen on the London market which serves a global reference. On the London Bullion Market, an ounce of gold ended Friday at 1236.50 dollars at auction Friday night, cons 1202.50 dollars the previous Friday.
In its wake, the money is increased to a level it had attained over the past two years.The gray metal rose Thursday to 19.64 dollars, not far from $ 20 per ounce reached in March 2008, to finally finish the week at 19.64 dollars Friday.
Stimulated by the gold and silver, platinum group metals have rebounded after falling last week, victims of the strengthening dollar. On the London Platinum and Palladium Market, an ounce of platinum finished in 1721 dollars Friday. In turn, an ounce of palladium finished $ 536.
The dominant concern in oil markets
The continued turmoil in oil markets. The prices fell Friday to their lowest levels in three months to 70.83 dollars. On the Nymex, a barrel of light sweet crude for June delivery finished at 71.61 dollars, down 2.79 dollars compared to Thursday. Prices have been a difficult week, leaving more than $ 5 in four sessions.They are well below the levels of early April, when the barrel was mounted to $ 87. In London, Brent crude ended Friday at 77.20 dollars, yielding 2.93% on the week.
As the equity markets, the euphoria that had raised prices Monday has not taken very long. The markets saw a dim announced the austerity policies that could lead to a slowdown in oil demand. Moreover, the continuing fall of the single European currency, which fell Friday to its lowest level since October 2008 (1.2359 dollars), weighs heavily on the markets.
In addition, crude oil reserves rose 1.9 million barrels during the week ended May 7, two times more than expected.
Week of mixed fortunes for base metals
On the London Metal Exchange (LME), the week has been more troubled.Investors fear the rigors of European policies that could dampen growth. In addition, China has caused confusion by announcing lower than expected macroeconomic data: the rate of growth of China's industrial output slowed in April, rising 17.8% year on year, after 18.1% March.
Copper, considered a barometer of the market ended the week slightly up to 6955 dollars per tonne. The aluminum stabilized this week at 2,093 dollars per tonne against 2,090 dollars the previous week.Zinc, nickel and lead have declined by 1.8% to 2.050 dollars per tonne, from 3% to 21,650 dollars per tonne and 2.4% in 1950 dollars.
Agricultural raw materials: sugar recovers
On Liffe in London, a tonne of white sugar for August delivery was worth 470 pounds on Friday against 435.80 pounds a ton for the same term last Friday. On the NYBOT U.S. a pound of raw sugar for July delivery was worth 14.88 cents against 13.64 cents a week earlier. But the euphoria is unlikely to last. The International Sugar Organisation (ISO) said Thursday he expected a surplus in 2010-2011 of nearly 2.5 million tonnes. Production is expected to grow in Brazil, India, Mexico.
For his part, cocoa was penalized by the strengthening dollar and profit taking. There is also an expected production increase in Brazil.Prices fell to 2,212 pounds per tonne in London and 2852 dollars in New York, respectively, the lowest since three weeks and a month. They ended the week at 2,232 pounds on Liffe and 2858 dollars on NYBOT.
Moreover, prices of wheat, corn and soybeans fell this week in Chicago, penalized by the rapid advance of planting in the United States. May 2, 68% corn, 60% of spring wheat and 15% of soybeans had been planted against respectively 40%, 47% and 8% on average over the past five years. In addition, the rising dollar makes U.S. production less attractive to export than those in Europe. The contract of corn for July delivery ended Friday at $ 3.63 and lost 2.4% on the week.The contract of soybeans in the same maturity fell to 9.53 dollars per bushel (-0.7%) while the wheat contract ended at U.S. $ 4.71 (-7.6%).
ALSO READ:
The gold stands at around 1,240 dollars per ounce
The weather global economic summarized in three figures: production (GDP) will grow 10% this year in China, 3.1% in the U.S. and 1% in the euro area countries. For the whole world, growth is expected in 2010 to 4.2% and 4.3% in 2011. With a clear dividing line between the advanced countries, whose growth prospects are around 2.3%, while savings "emerging and developing" a galloping pace of 6.3%.
These new "World Economic Outlook," IMF showed that "the recovery unfolds better than expected. But new challenges have emerged and exceptional "cautioned Olivier Blanchard, chief economist of the Fund. He calls a "warm" restart in the advanced countries, which are still found a lower level of production of 7% it would have without the crisis.In the eurozone, the IMF also revised downwards by 0.1 percentage point to 1% its forecast for growth in 2010, although France, among others, has fared rather better with a forecast of 1.5% instead of 1.4%.
Dependence credit
For Europeans to wonder why their economies pull themselves together much more slowly than America, Olivier Blanchard gives two main explanations. Europe is "more dependent on bank credit as the U.S. market where finance plays a greater role for business and they have restarted the fittest." Furthermore "the policy responses have been later and less strong in Europe," he adds.
This means that the IMF does not disavow the fiscal stimulus packages, including Dominique Strauss-Kahn, the boss, was one of the strongest supporters, from January 2008 fast cash advance. But "it is urgent to develop strategies for fiscal consolidation in the medium term" now stress the same experts. They note that the budget deficits in advanced countries have now reached 9% of GDP on average and that "the debt / GDP ratio should exceed 100% by 2014 if nothing is done.
Rebalancing Economic Policy
The situation is more delicate than a too abrupt adjustment of public finances could hinder growth already shaky.Hence the advice to double trigger "to fully implement fiscal stimulus measures planned for 2010, except in countries which already have a strong increase in their risk premium and must begin to rebalance their budgets now," as Greece. But the most advanced countries should undertake a substantial fiscal consolidation in 2011.
Emerging economies are the reverse face "to an influx of capital, a good thing in itself, but can become excessive," warns Olivier Blanchard. He recovered one of his favorite anthems "the currencies of a number of emerging markets remain undervalued in considerable proportions regarding the yuan." It calls for a revaluation of the currency, both in relation to the dollar than the euro, the only way to give oxygen to Western exports and ease the risk of overheating in Asia.This rebalancing of economic policies will be central to discussions of the G20, whose finance ministers meet Friday in Washington.
Relapse of consumer credit, debt concerns on Greek inscriptions and weekly unemployment up. The climate is not conducive to a revival of American markets. At the opening, the Dow Jones lost 0.12% and the Nasdaq was down 0.29%.
After the great bull markets in recent times on Wall Street and in Europe, investors await the slightest pretext to visibly sell. They took advantage Wednesday of renewed concern about the debt Greek and the surprise announcement of a drop in U.S. consumer credit in February to pass the act, especially as the Federal Reserve chairman Ben Bernanke said that the country "is far from being out of business." At the finish, the Dow Jones lost 0.66% and the Nasdaq 0.23%.
Also note, commercial crude oil inventories rose 2 million barrels last week.Gasoline inventories fell 2.5 million barrels and distillate stocks rose by 1.1 Million barrel. Following the announcement of this slight increase in inventories in the U.S., a barrel of oil has retreated from its recent peaks, to return the $ 86 for Brent to WTI as payday loan.
On the foreign exchange market, the euro remains under pressure however against a backdrop of Greek revival of the crisis. The single currency is trading in the morning at 1.332 dollars. For his part ounce of gold has continued to climb, to 1 $ 146 this morning.
The off air
On the side of values, a new giant merger is in preparation in the American sky. U.S. Airways (14.37% to 7.80 dollars) and United Airlines (9.03% to 20.66 dollars) have resumed their negotiations for a merger, according to U.S. media."Both companies, which belong to the network, Star Alliance, have already conducted twice unsuccessful negotiations in 2001 and in 2008," note the experts of BNP Paribas. United had also attempted to ally himself, unsuccessfully, to Continental Airlines, after the rupture of contacts with U.S. Airways in 2008.
Palm has jumped 20% Wednesday on rumors of takeover, unconfirmed. The title was up 1,52% to 4.69 dollars.
The internet group AOL (-0.98% to 27.17 dollars) to consider closing or selling its social networking site Bebo, bought $ 850 million two years ago.
A string football concocted by the Football League itself. This was promised on Monday Frederic Thiriez, its president, recalling, at a symposium on the pay-TV hosted by the High Council of Audiovisual (CSA) that "there was in France, 13 million people who were very interested in football. While TNT is paying in check, such an initiative could help to raise. And to clarify that "this does not mean that this channel will have exclusives on the championship L1. A conclusion that left doubts leaders of Canal + and Orange, Bertrand Meheut and Xavier Couture, who put on the table two years ago, 600 million to share its exclusive.
During the meeting between key players in the pay television several lines of force have emerged: beginning with the dedication of the largest operators in the sector to the concept of exclusivity.For Bertrand Meheut, the latter is the best way to fight against the "competition combined free television totaling 80% of the audience and for ISPs (Internet Service Provider Internet editor's note)" whose bids have been lower market share of Canal + to 47%. Moreover Bertrand Meheut recalled that his group distributed 240 channels including 50 exclusive, paid 250 million euros for publishers, 80 million euros in marketing and 200 million in recruitment costs "while" most operators telecommunications do not pay channels they broadcast on a non-exclusive "fast cash now.
For its part, Xavier Couture boss content at Orange, said that on pay-DTT "partnerships can be envisaged," including with Canal +. We intend to integrate the future of pay channels in our bouquet.However, he warned the market that the premium for exclusivity does not become a premium of eviction.
Later editors, all denounced the plight of pay channels. Thomas Valentin, vice chairman of the board of M6 has not hesitated to speak of "red alert" as regarding the TNT broadcast on pay cable and satellite. Laurent Solly, president of TF1 Digital, denounced "a time of crisis" as much publicity to the crisis that the stagnation of certain methods of distribution such as cable or satellite to the difficulty of the TNT charge.
Given all these facts, the president of CSA, Michel Boyon, promised that the regulator would give its position on DTT pay within three weeks.
After Paris, Transavia settled in Nantes and Lyon. The low cost airline, owned 60% of Air France and 40% of Transavia Holland, continues its expansion in France, with a very particular economic model: it divides into effect between direct selling and selling lots of tickets Included in the package tour operators. Thus, 55% of seats are sold online, mostly on its website, and 45% by tour operators.
Nearly eight billion dollars. Or nearly 6 billion euros. In one week, traders and hedge-funds (hedge funds seeking higher returns, in particular through the options) were initiated some 40,000 contracts against the euro, according to the online edition of the Financial Times on Monday evening. Investors have decided to take so-called short positions on the euro, that is to say, bet down on the currency. In total, these investments "shorts" are a massive $ 7.6 billion, according to the website of the newspaper, stating that this is the first time such a sum is committed to bet on falling the single European currency.
The reason for this change of strategy: the loss of confidence in the euro, which no longer seems able to resist the contagion of the Greek debt on other European countries.Greece is central to the nervousness of financial markets, both on the Old Continent as the other major stock exchanges worldwide. And worries extend to serious budget situations Spanish and Portuguese.
Yesterday, Monday, Elena Salgado, Minister of Finance of Spain, and Jos? Manuel Campa, his deputy, flew to London to allay fears: They reiterated their goal of reducing by 3% budget deficit by 2013. It reached 11.4% of GDP in 2009.
The euro has won almost 10% in two months
On Tuesday, around 8:30 am, the euro regained some color since last night, going above 1.37 euros at 1.3728 dollar guaranteed approval cash loans . On Monday, the European single currency remained broadly under that threshold.There is still a week against the euro was trading more than 1.4 dollar.
The d?grindolage actually started last December. The euro was trading at nearly even $ 1.51. It is almost 10% more than two months later. Just this last month of 2009, the euro has won nearly 5%, losing 30 days that the currency had taken three months to win.
By touching a low at 1.3585 euros February 5, the euro has regained its level in May 2009 …. and August 2007.
For some analysts, the slide is not over, and the euro could well return to the threshold of 1.25 dollars, amid U.S. growth stronger than expected.
The political spotlight
Tomorrow, Wednesday, Ben Bernake, will explain why the strategy for ending the crisis that has put in place.Any speech that would imply a monetary tightening will cause the wrath of the financial markets.
Then, next Thursday, it was the turn of Europe to be in the limelight, with the meeting of heads of state of the eurozone.
ALSO READ:
"Decline in Euro: winners, losers
The five ways to save Greece
"The crisis in Europe will play" collective "
"Public deficits alarm Fellowships
After the sharp market downturn in Paris last weekend, with the Cac 40 lost nearly 7% in 48 hours, optimism is in order at the beginning of the week Award paris.le CAC 40 is up 0.89% to 3595 points.
On the macroeconomic front, gross domestic product (GDP) of France is expected to grow by 0.5% in first quarter 2010, according to a first estimate of the Banque de France (BdF) on Monday.
The latest forecast from the National Institute of Statistics (INSEE) published December 17, the economic recovery in France will confirm in early 2010 but will be "laborious and delicate, with a growth of around 0.3 % to 0.4% per quarter until midyear.
The government recently revised upward its growth forecast for this year, rose 0.75% to 1.4% in the revised budget.
INSEE has published Friday its first figures on French growth in the last quarter of 2009. The government forecasts a GDP drop of 2.25% over the last year.
The detailed values to follow.
Comments Off