The Fed has launched "Operation Twist" on Wednesday. Following a two-day extraordinary meeting of its Monetary Policy Committee (FOMC), the U.S. central bank announced its intention to sell by the end of June 2012 for $ 400 billion of treasury bills maturity of three years or less, to buy an equivalent amount of maturity from six to 30 years.
This mechanism, which takes its name from the famous dance that was all the rage in the 1960s, had just been used for the last time in 1961. Its objective is to reduce interest rates in the long run to give a boost to business investment and the demand for housing loans, which use these rates as reference.
The Fed, however, chose not to touch interest rates that determine the short-term rates. They remain between 0% and 0.25%.And they will remain at historically low levels until mid-2013, said a statement.
Market disappointment
In addition to this twist, and in order to support the mortgage market, the Fed will also buy real estate securities without increasing the size of its portfolio. For this, it will continue to reinvest the securities-backed real estate it owns as they fall due. But the FOMC said, instead of buying Treasury bonds as it did previously, she will buy securities backed by mortgage-agency mortgage refinancing para as Fannie Mae and Freddie Mac.
This double operation shows that the Federal Reserve, the economy remains very depressed. The Fed also believes that global economic growth will remain slow.Conclusions that are similar to those of the IMF, which announced Tuesday it had seen very sharp fall in its growth forecast for the U.S., in theory at a level insufficient to expect a decline in the unemployment rate, which remains very high to 9.1%.
On Wall Street, where the launch of Operation Twist was widely anticipated, the operators retain the gloomy perspective of the Central Bank on the economy. Shortly after the news release of the Fed, the Dow Jones was digging his losses and gave up 1.10% at 11,283 points.
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Car manufacturers ultra-luxurious living on another planet. The downside risks, of concern to general groups, do not seem to disturb them. Concessions in the Ferrari, "consumers are not worried about a recession. The last I saw did not look desperate, "said Sergio Marchionne, the CEO of Fiat, at the Frankfurt Motor Show.
The Prancing Horse brand also provides for a new record this year by selling 7,000 cars, against 6,570 last year. Ferrari is also counting on a profit before tax "significant", following an increase of 23% in 2010 to 302 million euros. "I'm not worried because we have quality, exclusivity, a strong brand and innovative technology," said its president, Luca Cordero di Montezemolo.
It is the only one to be extremely confident.Rolls-Royce (BMW Group), whose boss, Torsten Mueller-Oetvoes, said he was "optimistic" about prospects for its niche, also wants to exceed its historical performance of last year (2711 cars). The luxury brand will invest 11.4 million euros to expand its plant in Goodwood English and plans to increase its network from 85 to 100 outlets.
Buyers richer
Sales of the major European luxury brands (Maserati, Lamborghini, Ferrari, Bentley, Rolls-Royce and Aston Martin) are expected to jump 19% this year to 28,100 vehicles, and increase by 13% in 2012, according to a study by IHS Automotive no checking account payday advance. "The rich are becoming richer, and the number of millionaires in emerging and growing. It is a very positive trend "for specialists in this niche, says Erich Hauser, an analyst at Credit Suisse agency quoted Bloomberg.For him, "should things go really bad" for the champions of this market find themselves in difficulty.
The ultra-premium segment should be able to pass through an economic downturn better than in the previous crisis, which saw sales of certain brands to collapse, says the CEO of Rolls-Royce. "This market is growing steadily since its low point in 2009" but "we are aware that there are risks," acknowledges, however, Stephan Winkelmann, Lamborghini's boss. But for now, the Italian brand of the Volkswagen group does not seem to fear a decline in the purchasing power of its wealthy clients. It will produce 20 Sesto Elemento for early 2013. Their price: 1.6 million euro.
Societe Generale against attack. According to information from Figaro, the bank has launched a summons for defamation against the British tabloid Mail on Sunday. The Sunday newspaper had published an article on August 7 with Societe Generale "at the brink of bankruptcy after terrible losses from its exposure to the Greek debt." This article was the catalyst for the spread of rumors and scare many of the French bank, throughout the months of August and since the beginning. With the key, a downward spiral of its share price.
After obtaining an immediate apology from the British publication, the Company generally does it not stop there. She wrote, according to our sources, from August 18, by law, a letter of assignment to the Mail on Sunday, saying she has suffered damages and seeking compensation instant payday loan lenders.The next day, the newspaper responded by acknowledging his mistakes and offered to pay 1000 pounds to a charity. On 1 September, the French bank has sent a second letter, noting that the magazine acknowledged its mistakes and requesting payment, this time a million pounds to the "charity" of choice. Last week, the tabloid merely replicate that he would study the issue.
Both parties are there. If the Mail on Sunday does not comply, according to our sources, the Company generally will rise to the second phase of its assignment by entering a London court.
The new tone decidedly anti-jargon adopted by South Radio when he arrived in Paris on the air is controversial. The High Council of Audiovisual (CSA) has remained the station for anti-Semitic statements in the release of Michel and Eric Mazet Cardoze 16 hours to 18 hours. Eric Mazet was laid off by the radio. Robert Ménard, who hosts the morning show with a phone-called "free-Ménard," is also under fire because the auditors have made racist remarks on his show. How far can we go with freedom of expression? "That's the difficulty. Simply South Radio does not do the same as the others. If today half the French do not trust the media because they feel that journalists are cut off from them. This is a problem of democracy.How to talk about people, their worries, their fears, even if they are poorly made, do not pass in the media, "said he. Should we let freedom provided to foul words? Racist and antisemitic fall under criminal law. "That is why in my show, I immediately put a stop saying we will not see it at home. Eric Mazet made a stupid, clumsy as it did not have the right spread. But that does not mean an anti-Semite. The challenge of Sud Radio, is not to repeat what all the major radio stations, that is to say information among themselves. You know, to combat racism and antisemitism, there is the French method is to prohibit all about. But another method is practiced by other democratic countries like the United States with the First Amendment.It is to say, we will give expression to views reprehensible, and, opposite, there are journalists who disagree with this statement. But I want to meet up to walk to these comments. The problem is that France, when you do this, it is pointed to by all sorts of associations "
After the notice of the CSA, Sud Radio Will it continue these programs free antenna or correct it? "We will continue to freedom of expression and we will enforce the law as I am working every morning easy payday loans. The CSA was entered on August 17 with a complaint about anti-Semitic words classified as Jean-Michel Larqué (on RMC, ed.) I do not feel that the CSA has already studied the issue. But with South Radio, 48 hours, it was folded. There are two weights, two measures. There are three of the band: RMC, Europe 1 and RTL that can be abstracted from the law, and small as Radio South who are beaten up.I think we should change the stupid laws in France that does not solve the problems of racism and antisemitism. For 25 years I say. In France, freedom of the press is corseted by laws unnecessary. "
The model of Robert Ménard is it the Fox News? "In the U.S., radio is a thousand times freer because it does not have this problem of law. In South Radio, we tried to invent something. "
With his arrival in Paris, Sud Radio plays big economically. That's why the station has taken as many risks. But if it increases the skids, the CSA may punish by removing the frequency Paris. Moreover, the allocation of this frequency has been challenged by RMC, Europe 1 and RTL. "It's been 25 years that I defend freedom of expression. I paid professionally. With RTL, this is wrong.I went on Sud Radio because it gave me a freedom that I have anywhere else. If this changes, I will not stay. I think, even if it bothers you, what is done in South Radio is a work of public safety. Finally, we give voice to the people. It serves no purpose to prohibit, we must fight. This is what I do every morning, telling listeners: this is not acceptable but I'll answer. "
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Investors in the Paris Bourse are enthusiastic on Monday afternoon. By 1530, the Cac 40 gained 3.15% to 3112 points. The index has grown steadily since opening in the red. The benchmark index of the Bourse de Paris has in fact started the session down 0.85% below 3000 points. But the trend was quickly reversed after a quarter hour rating. Clawing and point by point, the Cac 40 already displayed an increase of 1.46% in mid-session.
The index then continued its rise this afternoon. It seems not only able to keep the 3000 points, but maybe even finish above 3100 points.
What comfort to investors who last week saw the Cac 40 lost almost 7% in five days.
Elsewhere in Europe, the same trend has occurred. In London, the FTSE 100 gained 2.69% to now 5176 points.In Frankfurt, the DAX 1.89% 30 allows itself to 5583 points. And Italy, the FTSE MIB ahead even of 4.08% at 15,198 points.
The hope of change in Libya brings dynamism
Investors are eager to hear the speech of the U.S. Federal Reserve Friday, which should present the details of a new plan of monetary easing to support the U.S. economy. But in anticipation of this event, the operators have their eyes riveted to Libya where the rebels have entered in Tripoli. If pro-Gaddafi still resisting in the capital, rebel fighters have reached the Green Square, symbol of the regime. The fate of Colonel Gaddafi's head of oil-producing country seems uncertain.Seif al-Islam, presented in the past as the future successor of his father, was arrested.
The prospect of regime change boosts the price of crude on the New York Mercantile Exchange (Nymex), where a barrel of "light sweet crude" for September delivery was trading at 83.58 dollars to 15 hours, up of $ 1.32 from Friday.
Despite this enthusiasm, concerns remain about the global economic environment. The United States fears most concentrated with the publication of indicators increasingly mixed. This weekend, President Barack Obama admitted that his country was experiencing "a difficult, frightening recession." This should not reassure. He also accused the Congress to halt the reforms he wants to put in place to revive the economy.For his part, Vice President Joe Biden tried to reassure global stock markets and especially the Chinese, the first creditor of Americans saying the country would "never" by default.
Side the euro area, the problems of sovereign debt persist. As the political stalemate. Sunday, the German government has stepped up interventions in the media to reaffirm its opposition to European obligations, yet solution desired by the markets. "The Eurobonds are quite the wrong response to the crisis of the moment.They would lead us to a union of debt and not a union of stability, "said Chancellor Angela Merkel who judges the cost of this mechanism is too high for the economy of his country payday loans guaranteed no fax.
Several statistics to follow this week
Germany has lowered its forecast of budget deficit to 1.5% of gross domestic product (GDP) in 2011, in a monthly report of the Ministry of Finance released Monday.
Growth is slowing for the fourth consecutive quarter in rich countries, displayed in 0.2% from April to June compared with the previous three months, according to the Organization for Economic Cooperation and Development (OECD)."The gross domestic product (GDP) in the OECD area slowed to 0.2% in the second quarter of 2011, against 0.3% last quarter," said the organization in a statement Monday.
But investors expect a battery of statistics in the rest of the week including the manufacturing PMI for the euro area (Tuesday), the German IFO index (Wednesday), the weekly jobless claims in the U.S. (Thursday). Wednesday will be marked in France by the presentation of new conservation measures for the country to retain investor confidence and the "triple A".
Friday will be the busiest day with the second reading of U.S. GDP in the second quarter and the index of consumer sentiment.
As for currencies, the euro rose slightly against the greenback.The single currency is worth 1.4419 dollars this morning.
Banks and Total are displayed in the list of the values up
Banking
The AMF may decide Friday, after the close of European stock exchanges, to renew its ban on short selling on financial stocks, but this time for three months. The sector also bounced unevenly on Monday after sharp declines last week, Credit Agricole gained 2.76% this morning before falling back slightly in mid-session (-0.29% to 6.10 euros).BNP Paribas gained 0.95% to 33.06 euros, however Natixis crumbles from 0.76% to 2.86 euros, and Axa, from 0.34% to 10.24 euros.
For his part, Frédéric Oudéa, CEO of Societe Generale (1.34% to 21.15 euros), said Sunday that the nervousness that penalizes banks Scholarships could last "at least until early November."
Paris airport: + 0.73% to 54.17 euros
ADP has registered a record passenger traffic in July, with 8.9 million passengers, an increase of 4.6% over the same period in 2010.
France Telecom (1.04% to 12.68 euros), Vivendi (0.69% to 15.39 euros), Bouygues (0.97% to 21.92 euros) Iliad (1.39% to 80.70 euros)
Some operators are preparing for the end of unlimited Internet access in homes for some clients.
Total: + 3.36% to 33.065 euros
Leading the CAC 40, the title has hopes of a quick change of regime in Libya that would allow a reopening of the country's oil installations.
Like their colleagues in Asia, investors should demonstrate Parisian little enthusiasm on Friday. The CAC 40 futures contract on a misaligned (0.06%) to 8:30, suggesting an opening decline.
The market's attention will focus on the evolution of the European agenda to discuss aid to Greece and parliamentary discussions slipping in the United States, about raising the debt ceiling. After Treasury Secretary Timothy Geithner and Fed chairman, Ben Bernanke, the U.S. President, Barack Obama has assured last night that "the time for decisions has come."Barack Obama will hold a press conference to take stock of the subject at 17 hours, Paris time.
A very technical session for
The news should be sparse on the side of the values on Friday, but the session promises to be lively because of the expiration today of a battery of forward contracts.
Investors remain concentrated in Paris after the close for 18 hours to read the results of resistance testing in the European banking sector. Among the 91 banks assessed in connection with these third annual stress tests, are the French BNP Paribas, Societe Generale, Credit Agricole, Natixis faxless pay day loans.
The automotive sector will also be in order on Friday, after the presentation of the number of registrations in Europe in June, which shows a decrease of 8.1% over one year.Over the first half, the market decline is limited to 2.1% with 7.12 million passenger vehicles registered.
The gold on top, the euro remains strong
Values could be exporting to the death, after a further rise of the euro, which traded this morning, 1.4166 dollars, against 1.4141 dollars last night, while the dollar was stable against the yen. The euro is also strengthening against the Japanese currency at 112.15 yen.
In the current environment of heightened uncertainty about the public debt in Europe and the United States, gold is looking for: the metal-King reached a new record yesterday to 1594.45 dollars. It flows back slightly this morning.
Similarly, relaxation can be observed on the future of Brent North Sea (-0.22% to 116.09 dollars per barrel). In contrast, light crude gained sweed 0.24% to 95.92 dollars a barrel.
New Executive Director of the International Monetary Fund (IMF), Christine Lagarde is under the threat of a criminal investigation in France in the case of arbitration which reported 285 million euros in 2008 to Bernard Tapie.
The former Minister of Economy after the seizure is referred to the Court of Justice of the Republic (CJR), which considers the ministers in office. At the initiative of the request for investigation, the Attorney General of the Court of Cassation, Jean-Louis Nadal, who suspects abuse of authority in the matter of the disputed sale of Adidas by CL, while public bank in 1993.
The prosecutor accuses Christine Lagarde have chosen to settle the dispute in 2007, the route of a private arbitration, against the advice of the services of his ministry. This option was preferred by the Minister to the courts, even though the State had won in 2006 the Supreme Court.He is also accused of having Catherine Lagarde not appeal against the award.
Three options
As provided for the operation of the RGC, the Committee requests input by Jean-Louis Nadal must rule on July 8 for an investigation. Three scenarios are possible:
– The Board found that there is no room for an open investigation and no further action.
– Insufficient information, the Committee requests to be informed of additional documents.
– The Commission's opinion is in favor of opening an investigation.
In this case, the Attorney General of the Supreme Court must then take another commission to try the case business card templates. This means that over time, Christine Lagarde could be called as a witness or present indictment.The new boss of the IMF has in fact not, a priori, the IMF immunity for acts committed before its mandate.
However, even if the green light is given to an investigation, Christine Lagarde should have a respite. Indeed, Jean-Louis Nadal will retire June 30 and so it will not be replaced, the inquiry will not start actually because only the Attorney General may write the Introductory Submission entering the board of education. The appointment of the new attorney will not take place until the fall because of the procedures required before the Council of the Judiciary. Among the potential candidates for attorney general figure Jean-Claude Marin, considered close to the current majority. Nevertheless, whatever the successor to Jean-Louis Nadal, he will have to initiate the investigation.
In all cases, if investigation, it will be long and, in the event the case was referred back to the bench, Christine Lagarde would not be considered for several years. Not to mention that for thousands of complaints received, the RGC has so far found only six cases in 18 years.
(With agencies)
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"I walk in the countryside." Thus, Christine Lagarde, finance minister and declared candidate for the post of Director of the IMF, began his speech on Europe 1 radio on Sunday. Its stated goal: to convince all the emerging countries of the legitimacy of his candidacy. "These countries are worried. They want recognition and they feel frustration. They want a manager with universal and that is why I will introduce myself, "she said.
The minister will travel first to Brazil "because it is the first country invited me," she says. She will then visit the 'all emerging countries, notably China, India, some countries in Africa and the Middle East.Which will require it in his words to "make a lot of overtime" because this campaign is done in conjunction with its agenda of Minister of Finance.
While emphasizing the concept of universality, Christine Lagarde says she remains "deeply French and European. But in the context of these functions, you must be accountable to all of these 187 member countries. "
No fears for the record Tapie
Even if she repeats that "we should not count your chickens before they're hatched," the minister made a speech very assured, aware of the many clear support of the Europeans and Americans implied. "If I am elected, she says, I will leave the government because the two functions are incompatible." Asked about the name of his successor, the Minister nevertheless kicked into touch: "It's not for me to decide, but we have in our ranks many talents."
Christine Lagarde has also lingered long on the back Tapie, only shadow seemed to hover over his candidacy. "The file is empty," she repeated. She said the referral to the Court of Justice of the Republic by the Attorney General at the Court of Cassation, Jean-Louis Nadal, "is factually false and legally unfounded." "I chose the solution of arbitration in the case because I believed that Tapie was the least bad. A conviction was run a risk of 7 billion euros to the state. " For the future, the finance minister said to "really good confidence in the judiciary" and says she has "conscience".
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The state last year paid 46.6 billion euros in pension pensions to former civil servants. 13% of its running costs! This amount is however lower by almost 1 billion forecast. Two explanations for this, says an "annual performance report" posted by the Department of Budget: lower inflation than expected, so a smaller pension increases, and fewer than expected new retirees.
Only 70,100 civil servants have retired last year, where an assumption of 77,800 was used. In 2009 already, the 68,000 starts recorded (after 81,000 in 2008 and 2009) were below projections. But a "behavior change" occurred in mid-2009 that Bercy attributed to three phenomena.First, the 2003 reform, which requires officials to work longer for a full pension (since 2008, they have validated many quarters that private sector employees: 40 years for those born in 1948, which term will gradually raised to 41 years and a quarter for those born in 1953 and after). Then the crisis, which could push workers to postpone their departure – those whose spouse or children working in the private sector therefore at risk of unemployment, can you imagine, for example. Finally, "pending categorical measures": the revaluations of this or that body have increased since the beginning of the quinquennium, under the promise of Nicolas Sarkozy to "give back" to staff the savings generated by the non-replacement one out of two.
The end of "ages cleavers"
The Superannuation is calculated on their six months salary, a "nudge" decided during this period may lead to a significant increase in pension, they will benefit throughout their retirement!
Ultimately, the age of retirement from 58 years and 8 months in 2004 to 59 years and 9 months and a half (he is 61 years and 7 months for private sector employees). This average excludes the disabled and mothers of three children, likely to leave at any age. However it covers the categories of "active" (firefighters, police officers, prison guards, air traffic controllers, who can go so far from 50 or 55 years), who quit work an average of 56 years and 7 months, and other agents who remain in office until almost 61 years. For the military, the departures were a little higher than expected (13,000 instead of 12,000).The average retirement age rises too, but since 2006 only: it is past 45 years and 3 months to 46 years and seven months last year.
Finally, another report indicates that the reform of special diets in late 2007, also produces its effects, especially at the station with the late "ages cleavers" causing a retreat setting automatically "only half of the agents SNCF able to retire in 2010 actually did. "
U.S. equity markets remain in the green Thursday after finished up Wednesday. At closing, the Dow Jones advance of 0.36% at 12,605 points, the Nasdaq climbed 0.30% to 2823 dollars and the S & P up 0.22% to 1344 dollars.
Bad news on housing front
On the macroeconomic front, good news came on the side of the job: the weekly jobless claims declined in the United States during the week to May 14, at 409 000 438 000 cons (revised) the previous week, said Thursday Department of Labor. Economists on average had expected 420,000 registered unemployed.
In contrast, the index of business conditions from the Federal Reserve Bank of Philadelphia came out sharply lower in May and has largely missed expectations, reaching its lowest level since October 2010. This index falls to 3.9 in May against 18.5 in April.Similarly, sales of existing homes fell against all odds in the U.S., 0.8% in April compared to March to 5.05 million units annualized, announced Thursday the National Association of Agents Real Estate (NAR). Economists polled by Reuters expecting an increase of 2% to 5.20 million
Oil, which flirted with $ 100 in early trading, fell as a result of this bad news. On the New York Mercantile Exchange (Nymex), a barrel of light sweet crude for June delivery ended at 98.44 dollars, down 1.66 dollars compared to the previous day.
Morale is not the highest in the markets since the announcement of the coming recession in Japan. The gross domestic product (GDP) of the Archipelago fell 0.9% in first quarter 2011 compared to the previous (-3.7% annualized).This dip in economic activity is related to the earthquake and tsunami of 11 March.
Side currency, the euro rose sharply against the dollar at the dollar closed at 1.4309 dollars against 1.4236 late Wednesday.
LinkedIn flew more than 130%
Ford (-0.07% at 15.11 dollars) and Automotive Components Holdings sold their fuel tanks in Michigan at Inergy Automotive Systems.
In the same sector, General Motors (-0.25% to 31.44 dollars) has announced it intends to produce 60,000 Chevy Volt next year, or 30% more than was initially anticipated. To increase the production rate, it will first close the plant for four weeks in June.The U.S. has thus positioning itself to Nissan, which will not produce more than 20,000 Leaf its electric models in the U.S. until 2013.
Moreover, according to Bloomberg, Chrysler (pay its debt of 7.5 billion dollars in U.S. government and Canada early next week. The Italian Fiat will open the way to mount a capital of Chrysler, up 46% , against the 30% stake today.
A panel of experts advising the European Commission recommended a stricter location data recorded by mobile smartphones.Apple (+0.19% to 340.53 dollars) and Google (+0.27% to 531.25 dollars) are on the front line.
Limited Brands (-3.89% to 40.80 dollars) posted earnings per share (EPS) in the first quarter against $ 0.4 $ 0.39 $ 0.25 and waited a year earlier, and that a turnover of 2.2 billion, up 14.8%. For the current quarter, the group expects an EPS of 0.38 to $ 0.43 against $ 0.36 last year.
Also note, the SEC, Constable American markets, has opened an investigation into possible failures of computers on several stock exchanges, the Financial Times. U.S. markets Constable believes that internal controls are inadequate in many operators, including Nasdaq.This type of failure could be the cause of Krack flash occurred on Wall Street in May 2010.
Furthermore, the professional network LinkedIn (108.20% to 93.80 dollars) managed his first steps on the Exchange. In a statement, the company stated that it had placed 7.84 million shares at a price of 45 dollars, while it provided a range between 42 and 45 dollars. These total $ 352.8 million. In detail, 4.828 million shares were sold by the company, which raises and $ 217 million, while existing shareholders have sold a little over 3 million titles.
