Archive for the 'facts' Category
European shares opened lower Friday, risk aversion intensified significantly after Fitch downgraded Greece Moody's and that of several Spanish banks.
At 9:02, the CAC 40 index, which lost 1.2% Thursday, yields 0.74% to 2989.85 points.
The London Stock Exchange drops 0.88%, the Frankfurt up 0.9% and 2.02% fall of Madrid. The pan-European Euro Stoxx 50 index fell by 1.03%.
Fitch Ratings downgraded the sovereign rating Thursday of Greece "B-" to "CCC", citing the growing risk of the country leaving the eurozone.
Moody's lowered the rating Thursday from 16 Spanish banks, including Santander SAN.MC, the largest in the euro area, suggesting the reduced capacity of the Spanish State to provide financial support to ; more of them.
The Stoxx European banks index was down 1.56%.
Illustrating the renewed risk aversion of investors, the 10-year rate of borrowing has fallen under German 1.4%, against 1.43% the day before closing.
On the foreign exchange market, the euro continues to trade at less than $ 1.27, to 1.2660 dollar.
The German finance minister, Wolfgang Schäuble, however, considered that the current turmoil in financial markets should subside within one to two years.
A few days after announcing a loss for broking $ 2 billion, Jamie Dimon acknowledged his twist on a television program. Some experts believe it could keep his job. The U.S. bank, who wanted a model in terms of risk management, announced a loss of over $ 2 billion related to its trading activities.
"I was wrong all along the line." It is in these terms that Jamie Dimon, CEO of JP Morgan, returned to the brokerage loss of 2 billion dollars from his bank in the program "Meet the Press" on NBC. A mea culpa-style humiliation for the one who, when the first information output in the Wall Street Journal on the extent of paris risky, there had been "a tempest in a teacup".
The question is how Jamie Dimon is weakened. According to Erik Oja, an analyst at Standard & Poor's, his place as CEO is "absolutely not" in question. "He made amends, there was no attempt to hide the problem," he adds. However, according to the Wall Street Journal, Constable American markets (SEC) is studying the case for whether the bank should have known earlier losses to investors. It seems in any case that JP Morgan has lost much of its credibility.
Until this case, Jamie Dimon was one of the most admired bankers of the United States. He had helped his bank through the crisis without pitfalls and was accustomed to receive praise. Born in New York to a father and a grandfather brokers, Jamie Dimon, 56, began his career as Sandy Weill's right arm, which made the first U.S. bank Citigroup by acquisitions before crisis causes this giant on the brink of bankruptcy.
The two men fell out in 1998 and Jamie Dimon found himself abandoned by his mentor. This was followed by a journey through the desert before leaving for Chicago in 2000 to lead Bank One. In 2004, Jamie Dimon returned to Wall Street through the front door when JPMorgan acquired Bank One. It has become number two behind Bill Harrison until it retired in 2007. Prudent management has enabled JPMorgan to weather the worst financial crisis since the 30's also taking advantage of the defeat of some competitors. JPMorgan has purchased Bear Stearns on the cheap in 2007 and part of Washington Mutual last year becoming the first U.S. bank by assets at Bank of America.
Jaimie Dimon has used this particular well and its good image to combat the financial reform of 2010, which will come into force in July but was delayed. He who had been an ardent supporter of President Obama, but said today "it is hardly more democratic", has not lost an opportunity to rehearse in the media that more regulation would hurt U.S. banks. Cruel twist of fate, it is because of a risky strategy brokerage own derivatives, the kind of problems addressed specifically by the financial reform and its key measure, the rule of Volker, as the statue of Jamie Dimon wobbles .
A Alelmand on two rather see Nicolas Sarkozy won the presidential election, a four qur Francois Hollande. Others do not care.
A German on two rather see Nicolas Sarkozy won the French presidential election and 55% of Germans support the policy of fiscal austerity Angela Merkel, according to a poll published Friday. According to the survey published in the German daily Die Welt, the German answer to 50% "Sarkozy" to the question: "What French President, the German perspective, would be the best choice?".
Of those polled, only 24% cite Francois Hollande. Other (26%) do not know or are not interested in the subject. When asked what they think the appropriate policy in this time of crisis for the euro: "maintain a policy of fiscal austerity or launch programs for growth," 55% of respondents advocate rigor advocated by Chancellor Angela Merkel . Only 33% say they prefer growth programs.
The survey was conducted among a representative sample of 1,004 people between April 30 and May 1.
Germany experienced between 2001 and 2011, the smallest increase across the EU, with an increase of 19.4%, while hourly labor costs in France rose by 39.2%, more than double the same period. A poster of the employers' union Verdi against the introduction of a general minimum wage in Germany
Germany experienced a decade of more moderate growth in labor costs of the entire European Union, according to statistics released Tuesday, but the hourly labor cost is one third higher than the European average. One hour of work in the private sector cost 30.10 euros for German employers, a figure of 32% above the EU average and that places Germany seventh among 27 EU countries, according to these figures published by the Federal Statistical Office Destatis.
Compared to the great French neighbor, the labor cost is 12% lower and 23% lower than in Belgium, the leading EU countries. Germany experienced between 2001 and 2011, the smallest increase across the EU, with an increase of 19.4%, while hourly labor costs in France rose by 39.2%, more than double the same period, according to Destatis.
German wage moderation is a key factor in the competitiveness of the country, including its industry. The downside, often cited by the unions, wages are low, in the absence of widespread minimum wage and an increasingly precarious, with greater use in some industrial sectors in labor and temporary work.
The Swiss pharmaceutical group Roche warned Wednesday that he would not fall under its offer of $ 6.8 billion (5.18 billion euros) on the Illumina American and he will not extend the period of acceptance thereof.
Its current proposal, $ 51 per share Illumina, can not be improved without penalizing shareholders of Roche, said the group, which should give up its offensive.
The offer expires Friday, Roche said not wanting to prolong it, expressing regret the refusal of the Board to engage in constructive dialogue
Illumina sequencing of genes specialist, self-proclaimed "Apple genomics", for its part has rejected offers of Roche and called its shareholder do the same.
Consulted Wednesday during a general meeting, a majority of them have also shunned.
"Roche will not be affected if it sends a signal showing that it is ready to give up these offers," said Navid Malik of Cenkos Securities.
The acquisition of Illumina would have allowed the Swiss group, world leader in therapies against cancer to benefit from its expertise in sequencing of genes play a role forefront of personalized treatments, which represent the future of the pharmaceutical industry.
Roche did not give up its ambitions for external growth.
"Roche will continue to examine all options and opportunities to further develop its business portfolio to expand its leading position in diagnostics," said Severin Schwan, director General of the Basel group, in a statement.
At their general meeting, shareholders of Illumina supported the four nominees to fill board seats, while rejecting a proposal from Roche to bring to 11 the number of directors with the objective to take a majority.
The prospect of a failure of Roche has not been punished by investors, its title having closed up 0.99%, unlike the Illumina who lost in the third me time to 4.10% to 42.20 dollars.
Wall Street has won more than 0.5% Wednesday, ending a series of five sessions of declines, driven by soaring title Alcoa after the gen ant aluminum, which opened Tuesday the "earnings season" has reported an unexpected profit for the first quarter.
The Dow Jones industrials gained 30 0.70% or 89.46 points, to 12,805.39 points. The S & P-500, wider, took 10.12 points, or 0.74%, to 1368.71 points. The Nasdaq Composite Index advanced on his side of 25.24 points (0.84%) to 3,016.46 points.
Tuesday, within the scope of concerns about global economic conditions and, perhaps, of a correction, the S & P 500 benchmark index of the managers fund, had fallen under its 50-day moving average for the first time since December.
Cyclical sectors, which have fallen sharply in recent days, took advantage of a movement to purchase cheap, the fund financial echoing 1.59%, including a gain of 3.75% to 8 , $ 86 for Bank of America.
The action Alcoa has closed up 6.34% to 9.90 dollars after the group, considered a good barometer of the U.S. industrial sector, has emerged, to everyone's surprise, a positive net income in the first quarter of 2012, benefiting from improved market conditions.
"Expectations were very low so a positive start to the earnings season is a positive sign," said Jack Ablin, Investment Officer at Harris Private Bank.
"That said, we can take stock of the health of other sectors throughout the week and the market will perhaps stand still before a complete picture."
Google, JPMorgan Chase and Citigroup are among the heavyweights of the American side who must publish their interim results this week …. The fall of some
….. 1.5% S & P 500 Tuesday was most marked in four months. Investors are now assessing whether the downturn on Wall Street-which is up sharply since the beginning of the year is an opportunity to enter a market that remains on a good launch e last six months.
Two hours before the end of the session, in its "Beige Book", the Federal Reserve said the U.S. economy had continued to grow over the last months of winter, adding that rising gasoline prices starting to worry consumers and businesses throughout the country.
This appreciation of the Fed had little impact on the trend of the day.
Concerns about the debt crisis of the euro area eased somewhat after the statements of Benedict Coeuré, board member of the European Central Bank (ECB), saying that the purchase of government bonds remained a weapon available to the ECB.
The Apple stock lost 0.36% to 626.20 dollars after the U.S. Department of Justice announced legal action against Apple and two large e publishers for agreement on the price of electronic books.
The way Johnson & Johnson has little reaction (-0.11% to 64.13 dollars) a verdict of a judge of the State of Arkansas saying that the pharmaceutical company was fined a , 1 billion dollars after being convicted by a jury of having used illegal tactics to market a drug.
Exchanges of Brazil should grow twice as world trade over the next 15 years a cosmetics factory in Sao Paulo
The Brazilian economy is booming: according to HSBC Trade connections, Trade Forecast (February 2012), the Brazilian business know in the next fifteen years a growth of 163%, double that of world trade (86% ). Over this period, the country is expected to arrive in sixth place worldwide for the growth of its trade. This year, the growth of its economy expected to remain at 3% (as in 2011) and accelerate to above 3.5% in 2013, according to forecasts of Euler Hermes. The organization of the FIFA World Cup in 2014 and the Olympic Games in Rio in 2016 are short-term opportunities.
The big challenge for this huge country, rich in raw materials: building infrastructure (roads, railways, power lines) to open up the interior, where the raw materials, and link it to major cities growing, like Rio de Janeiro, Sao Paulo and Belo Horizonte.
Another government priority: to develop industrial production. The country is clearly positioned to become the leading producer of ethanol from sugar cane. The emergence of a middle class eager to consume is also a great opportunity for investors.
Are real opportunities for businesses … provided they are aware of the constraints: complex tax system, high taxes and powerful bureaucracy.
These obstacles do not discourage emerging countries like Vietnam and Indonesia but especially China, whose trade with Brazil expected to increase substantially in coming years. The proof is opening this year's huge port complex Superporto do Açu, one of the largest in the world, and already dubbed "the highway to China".
The Austrian bank in difficulty Volksbanken, which the State is about to take a significant minority stake, said Thursday it lost 1.35 billion euros in 2011.
This result is at once the fact of past depreciation on its activities in Eastern Europe and losses on Greek sovereign debt and other bad debts .
Once the fourth largest bank in Austria, Volksbanken failed to European stress tests last year.
The anticipation of a heavy loss and the slow restructuring of the bank in February led the Austrian government to launch a rescue plan that will cost over a billion euros to the state and will mean for current shareholders by the loss of more than 70% of their assets.
In November, the bank said that its loss in 2011 would be higher by at least 10% in the range from 900 to 1,050 million euros given in October.
Taking into account the recapitalization of the bank, which must be approved at a general meeting called for April 26, 2011 the loss is reduced to ; 53.5 million euros, said in a statement Volksbanken.
After the bailout of the institution, the majority of the capital should remain held by regional banks, taking the state for its part ownership of more than 40%.
Vienna will therefore be entitled to appoint four members of the Supervisory Board of Volksbank. According to a financial source, including the Austrian government will bring Gertrude Tumpell-Gugerell, former board member of the European Central Bank (ECB), the bank board.
In the eyes of rating agencies, the importance of the financial sector in Austria is one of the risks to the country's sovereign rating.
Standard & Poor's withdrew its Vienna "AAA" in January and Moody's said she could do the same.
European shares ended lower Tuesday, in response to statistics from the U.S. consumer confidence but more importantly to the decline in Total, which has stalled and resulted in values energy in its fall.
In Paris the CAC 40 showed a loss of 0.92% to 3469.59 points. Elsewhere in Europe, Frankfurt finally stable (0.00%), Madrid lost 1.03%, 0.56% and London Eurofirst 300 0.50%.
In the wake of Total, which lost 6%, the values of European oil and gas realize the worst performing sector of the day, with a loss of 2.37%.
The market is worried about the consequences of the gas leak occurred Sunday on the platform of the Elgin-Franklin French oil tanker in the North Sea.
U.S. consumer confidence fell in March and inflation expectations have never been higher for 10 months, according to the Conference Board index released Tuesday.
For its part, Wall Street pauses, ranging from missing a day after rising to peaks of nearly four years. However, the S & P 500 is on track to register its strongest quarterly performance since 2009.
Markets have also heard of another American Statistical relatively sluggish. The prices of houses have not changed in January, suggesting that this struggling sector just to turn the corner, shows the S & P Case-Shiller index released Tuesday.
Total accuses its biggest loss since December 2008, following discussions that represented a volume of five and a half times its daily average of 90 days.
"It reminds the BP oil spill in the Gulf of Mexico in 2010. Difficult to know the extent of damage at this stage but when in doubt, it is better to sell. The action does BP is never recovered, "said a trader based in Paris
. BG, which has a stake of 14% in the deposit Elgin, lost 2.9%
. Philippe Gijsels (Fortis Global Markets) emphasizes that portfolio adjustments at the end of quarter amplified gains in the FTSEurofirst 300, which makes it vulnerable. "This is the usual set of month-end, which imposes an upward pressure to the side and makes the market very overbought. I think the beginning of next term will see profit-taking, "he said
. For Lynden Branigan (Barclays Capital) would require the FTSEurofirst 300 plunges below 1,050 points to break the uptrend. But he is relatively optimistic and sees a buying interest occur between 1069 and 1072, the Friday low and the 50-day moving average, respectively, with resistance at 1109, the peak in March.
Italy and Spain have sold debt without concern Tuesday, what can be interpreted as a sign of market confidence in their ability to recover their public finances and reform itself.
Italy has placed 3.8 billion of zero coupon bonds to two years with a yield of 2.35%, the lowest since November 2010, against 3.01% during the operational previous generation.
Spain sold 2.6 billion euros of treasury bills at three and six months yields moving in opposite directions to each other.
The Italian paper, however, suffered in the secondary market shortly after the auction, traders were saying that the award came too soon after the big award of € 7.3 billion of indexed bonds last week.
The dollar rose slightly against the euro and more markedly against the yen, maintaining its gains despite a statistical lackluster consumer confidence.
This increase comes in a market hit and little fluctuation, traders cautiously gauging the remarks made yesterday by the Federal Reserve chairman Ben Bernanke.
Growth of the U.S. economy will have to accelerate job creation that do fall further unemployment, Ben Bernanke said Monday.
Oil prices have turned down after Bloomberg, citing an official from the energy sector, had reported that the U.S. planned to tap into strategic reserves ; cal.
U.S. officials have been saying for months that draw on reserves is one of the options available to address market disruption. Reuters reported this month that London was ready to work with Washington to take on strategic reserves in the current year.
No details were available on information from Bloomberg, which is not known whether it signals a change in tone or intent on the part of the U.S. government.
The leaders will present on Wednesday at Opel supervisory board of the European subsidiary of General Motors a project involving the closure of two plants in Europe to reduce by about 30% production capacity , it was learned from several sources informed of the discussions within the company.
PSA Peugeot Citroën, the new French ally GM meets Friday a European group committee three weeks after the announcement of the merger between the two groups, while unions' s question the social and industrial benefits of the project.
"GM repeats regularly with excess capacity equivalent to 500.000 cars a year, we have two factories in too, and the new manufacturing manager visited the sites one after the other by playing against each other, "said Thursday a representative union of Opel's supervisory board, who requested anonymity
. "We know the main points of the strategic plan that could be Wednesday presented: it includes plant closures and no growth for the company, "he added. "If it is voted, the entire union side will vote against this plan."
A GM spokesman declined to comment on possible closures, but reiterated previous statements of the group under which the management is working closely with unions and works councils to improve profitability.
A source at Opel said no decision had been made on possible plant closures in Europe, but added that the bargaining Management was extremely limited due to the current slump in the European car market.
"Business in Europe are really bad for the whole industry right now and there is no sign of reversal," said this source.
"When things go so badly, we must take action, so the question is not what we want or what the unions want, which is the context so requires."
"We can not afford to lose time."
PRESSURE ON PSA
Employee representatives can not block a decision by management, but they have already warned that the presentation of such a project would destroy the Wednesday born Negotiations opened so far.
Factories in Bochum, Germany, and Ellesmere Port, United Kingdom, are considered most at risk even if the chief executive of Opel Karl-Friedrich Stracke has de ; clared a few days ago that he would respect the commitment not to close any site before the end of 2014.
The managing director of GM Dan Akerson has repeatedly expressed his impatience with chronic losses suffered by the European branch of the group, which reached $ 747 million (563 million) the last year.
Earlier this month, he said that two years may be needed to restore the finances of Opel in the green.
For Dan Akerson, the European automotive sector has a total of between seven and 10 plants in too. The closure of one or two sites by GM could therefore increase the pressure on PSA for a commitment on the same track.
Interviewed in early March at the Geneva Motor Show on the possible eventual closure of one or more sites of PSA after the alliance with GM, Denis Martin, director of industrial group franç ais, nor had responded in the affirmative or the negative.
Plants PSA Aulnay-sous-Bois (Seine-Saint-Denis) and Madrid are considered most at risk in case of restructuring the group's production.
The question may also be asked to Sevelnord (North), where nothing is currently planned to fill the void let what Fiat, the Italian manufacturer has decided not to extend its partnership with PSA on the site beyond 2017.
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