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.
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Spain has officially fallen into recession in first quarter with a new economic contraction of 0.3% over the first three months of the year, statistics showed Thursday's final National Institute of Statistics.
On the other year, the Spanish gross domestic product fell 0.4%.
Spanish GDP had dropped 0.3% in the last quarter of 2011.
"The recession is advancing at a gradual pace, but if we take into account the latest surveys on activity, it seems that the economic contraction will continue into quarters come, "said Tullia Bucco, an economist at UniCredit.
The Spanish manufacturing sector contracted at its fastest pace in almost three years in April, while the service industry fell for the tenth month of row, according to the purchasing managers' index.
The export sector, the only one that has progressed over the last two quarters, slowed from January to March, the main economic partners of Spain is also experiencing the recession or slowdown.
Madrid seeks to convince investors that Spain is able to consolidate its public finances while reducing expenses, but the cost of restructuring its banking sector worries the markets .
The premium demanded by investors to acquire the Spanish debt rather than German debt has reached this week its highest level since the introduction of the euro, more than 500 basis points.
When he crossed the threshold of Honda Aircraft Company booth at EBACE business aviation held in Geneva until Wednesday, the visitor is first greeted by a car manufacturer of the third Japanese car.
Then appears the HondaJet painted red subsidiary of Honda Motor, determined to carve cruppers the American Cessna (Textron group) and Embraer on the market ; light business aircraft.
Honda has received over 100 orders for the seven-seat aircraft within three days after the program began in 2006 but has since remained quiet about the state of his book.
The Japanese embarked on a market segment that has especially suffered from the crisis of 2008, which does not seem unduly disturbing Michimasa Fujino, Honda Aircraft Company's CEO.
"The market for light aircraft is close to the automotive market in terms of business cycles," he said in an interview with Reuters. "Light aircraft are influenced by economic conditions, such as automobiles."
Honda plans to produce 20 units of its product by its first delivery scheduled for late 2013 and 50-70 in 2014, before reaching its cruising speed of a hundred a year from of 2015.
The manufacturer promises a device with a quieter and 20% fuel savings compared to competitive models.
"It's like cars: the cars more compact and more fuel efficient are the most popular," noted Michimasa Fujino.
Honda plans to take 10% of the market initially, and then award in the medium term from 15 to 20%.
Customers interested in the aircraft are not looking particularly to customize the cabin, as might be the case for larger aircraft, he noted.
"HondaJet design looks more like a car, which means that we try to provide an aircraft whose equipment is very complete," said Michimasa Fujino.
He believes the more the market potential of a light aircraft Bigger is not necessarily required for the path of a businessman going to a meeting by instance.
"It's like the car: you do not go necessarily to work with your large MPV", he said.
Michimasa Fujino said that companies were going more and more that have a light business jet they were very helpful.
"Perhaps the use of light aircraft will become more common in the future," he said. As for the car.
The International Monetary Fund should get, as expected, an increase of its means of at least $ 400 billion to take action against the global crisis. Executive Director International Monetary Fund Christine Lagarde expects its member states that the funds of the institution are "substantially" increased.
The International Monetary Fund is about to get financial support to match its requirements. To act against the global crisis, the organization has requested an increase in its resources. It is not yet certain that everything is sealed off Friday in Washington, which met finance ministers of G20 countries, but the organization seems poised to achieve, as it wishes, an increase in resources of at least $ 400 billion.
"Among the results of these meetings, we expect that our strike force is greatly increased," said Christine Lagarde Thursday, executive director of the IMF. "I know it is in a lot the subject of the day," she noted.
Finance ministers of rich and emerging countries in the G20 will discuss on Friday, after a first working dinner Thursday night. Christine Lagarde expects to have a number. And all indications are it will succeed in light of recent promises made public through several countries before the start of the spring meetings in Washington.
Additional means to help the euro area
Notable exception, the United States, the largest shareholder of the Fund, have refused to pay any extra dollar. The uncompromising stance of Washington has also forced Christine Lagarde to review its initial ambitions downwards, estimated in January after the needs of the Fund to some $ 600 billion.
"Today, there is less risk," she assured, even if Europe "is not pulled out of the rut." The French felt that this money would help address the problems of the world economy, including "high unemployment, sustainable in many parts of the world," growth "slow" or "of potential increases in oil prices".
Executive Director of the IMF did not name Spain in its list of "dark clouds" looming always above the global economy, but the situation there continues to preoccupy the international financial community. "If there is a need, the IMF must be there for all its members" but "there is no need of this kind at the moment," she assured, however.
The IMF can now hire up to 382 billion dollars, according to the weekly final point on its resources. But Christine Lagarde Lagarde, supported by the Europeans, want to add at least $ 400 billion to this total. She can already count on some 320 billion thanks to the commitment of Japan to the tune of 60 billion over the three Scandinavian countries (Sweden, Norway and Denmark), with just over 26 billion, that of Poland, 8 billion, and finally that of Switzerland and other countries not identified, to the tune of $ 26 billion.
China widened the fluctuation band of its currency. A measure to reassure the markets following the slowdown in growth, but also a real business strategy. Interview with Sebastien Barbe, senior economist at Credit Agricole-CIB. Doubling the maximum fluctuation of the yuan is a diplomatic act, with a real strategic significance …
China conducted today to double the ceiling of fluctuation of the yuan. Should we consider the measure as a real movement towards liberalization of the Chinese currency? What impact will the measure on the evolution of the currency? Our questions to Sebastien Barbe, senior economist at Credit Agricole-CIB.
As of today, the yuan is really undervalued, or does it happen, as claimed by Prime Minister Wen Jiabao, to its equilibrium level?
It is difficult to answer this question with certainty. We lack precise figures which we can really conclude. This is indeed some, however, is that the yuan is much undervalued than five years ago. China has actually taken steps since constant progressive revaluation of its currency. If during the subprime crisis the exchange rate with the dollar was frozen, the yuan has appreciated against many currencies of emerging countries over the period. It is better to resonate well in terms of real effective exchange rate.
Doubling the maximum fluctuation of the Chinese currency translate into a genuine process of internationalization? Does it not rather a symbolic approach?
In reality, these two aspects will play. But the increased ceiling remains above all a measure of scale. Eventually, the Chinese will be able to fluctuate even more their motto. This is a significant step towards liberalization of the yuan. If in the future the Chinese are more confident about international politics, they are probably glad to have introduced this measure. It is a reform that will eventually play and count. At the moment, it's more of an accompaniment of the process of internationalization of the yuan. The symbolic is seen in turn at different levels. A message of confidence, first, compared to the rate of growth. A willingness to reassure the markets, while China's growth tends to slow down. By extending the maximum fluctuation of the yuan, they take the chance to see their currency appreciate more, which would hurt exports and thus their international trade. It's a real soft landing that is looming for the Chinese. We can then analyze this decision as "an act of economic diplomacy" aimed at their trading partners. If China loose a little ground on the control of its currency, it will have greater legitimacy to demand a return to its partners, by being much more demanding. Specifically, it could expect from Europe, its largest importer, that it demonstrates a much better coordination. The measure is reflected, and will add weight to China in its trade relations.
While doubling the currency became effective today, the yuan was at the opening down to the dollar. How do we tend to expect in the future?
The assessment should continue, perhaps not spectacularly, at least as concerns about the European market will also remain strong. Europe is the largest importer of China, a major evaluation on the rise of the yuan should now be discounted. Within a year or two, things may have to evaluate more quickly. To give you a figure, we believe that the yuan could appreciate the full year from 2.5% to 3%. Even up to 4.5% in the event of Europe show signs of recovery. But to date, caution should remain the watchword.
TPSA has renamed itself Orange before Poland hosts the Euro 2012 late June, hoping to compete with an integrated offering, said Thursday the CEO of the subsidiary of France T LECOM.
"Selling Orange and TPSA separately is not very sensible economically," he told Reuters Maciej Witucki. "Customers expect a bundle of four services, which is why it is better to sell them under one brand."
"Rename the brand was included in our 2012 budget and we confirm our objectives," he added. "It will be neutral on our EBITDA and we also confirm our objective of slowing the decline in revenues this year."
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 Slovenian subsidiary of Renault announced Thursday it would cut production in April and would eliminate 13% of positions at about 2220, due to lower sales in Europe.
"We have had in recent months a decline in orders resulting from a severe contraction of the European market. Because market conditions do not improve (…) we don ' will more probably night shift on April 26, "said the subsidiary Revoz, which produces models Twingo, Clio and Wind.
Production Revoz had peaked at 212,860 cars in 2009, falling to 174,127 in 2011. The subsidiary did not provide a target for this year.
The night shift existed since 2007 but was suspended from May to September 2011 due to a shortage of electronic parts produced in Japan, a direct consequence of earthquake of March 11.
Revoz said she planned to increase the number of positions in the second half of 2013, when it will produce two new models to be developed under the partnership between Renault-Nissan and Daimler.
The new car registrations have fallen sharply again in February in the euro area, mainly due to the weakness of French and Italian markets, announced Thursday the European manufacturers association of motor.
The Spanish economy contracted in the fourth quarter of 2011, for the first time in two years, according to economists foreshadow a prolonged recession for the country, weighed down by fiscal austerity.
The gross domestic product (GDP) of Spain fell by 0.3% over the last three months of 2011 on a quarterly basis, after remaining stable at third quarter, according to official figures released Thursday.
On an annual basis, gross domestic product grew 0.3% from October to December, in line with expectations of economists polled by Reuters and after annual growth of 0.8% last quarter.
"Given the necessary fiscal consolidation in the country and the pressure this causes on domestic demand, it will be very difficult for Spain to avoid a recession," said Nick Matthews, economist for RBS.
The economy of the entire euro zone shrank by 0.3% over the last three months of 2011 and appears headed for a mild recession under the weight of the debt crisis, according to Eurostat figures published Wednesday.
These figures showed that Italy now responds like Belgium, Greece and Portugal to the technical definition of recession, with two consecutive quarters of decline in GDP.
In Spain, surveys by Markit purchasing managers to have shown a slight improvement in manufacturing activity and services in January, but this may not be sufficient to stimulate an economy mired in recession or stagnation for nearly five years.
Spain enjoyed a higher growth than its neighbors since joining the monetary union 12 years ago, but this expansion was largely due to a housing bubble, that erupted in 2007.
Over the full year 2011, the country recorded a growth of 0.7%, after contracting by 0.1% in 2010.
But in the fourth quarter of 2011, only exports continued to grow, and they are likely to suffer from the slump in global demand.
According to the International Monetary Fund, the country's economy expected to contract by 1.7% in 2012, mainly because of the austerity measures implemented by Madrid to avoid ê in turn be a victim of the debt crisis.
The new Spanish government seeks to reduce the budget deficit to 4.4% of GDP, as against 8% in 2011, which would require savings of about 45 billion euros.
The European equity markets are geared up Monday early in the day, investors wanting to believe that the vote on the night of austerity measures by the Greek Parliament can allow to advance the issue of sovereign debt crisis.
The banks are particularly sought. "After several months of waiting, everything was finally passed 'as expected': the country has introduced several laws to avoid a default. Analysts say the biggest and toughest measures passed, "writes Saxo Bank in a note."
"This should prevent speculators to raise even more the weight of debt (…) The vote paves the way for a release of a second aid plan for new exhibitions ties, amounting to 130 billion euros and removes the risk of a disorderly bankruptcy of Greece. "
Investors are now waiting to see how many auctions are held debt in the morning provided by several countries in the euro area, which will be a test of market sentiment.
A few minutes after opening, the Paris CAC 40 index gained 0.94% to 3,404 points, the German Dax took 0.87%, the UK FTSE 0.85%. The Eurostoxx 50 0.84%.
Bank stocks posted the biggest gains (1.39%).
In Paris, around 9:20, took 2.17% Societe Generale, BNP Paribas 1.88% while elsewhere in Europe, Commerzbank earns 4% and 1.4% RBS wins.
Also rising sharply, found Dassault Aviation (3.66%) after a report that Brazil may in turn acquire the Rafale.
On the foreign exchange market, the euro rose around 1.325 dollar, buoyed by the hope that the Greek case is released after the vote of Parliament in Athens.
As for bonds, investors abandoning the German debt, preferring to invest in riskier assets and take advantage of the upturn visible on the European stock exchanges. Market sovereign debt, there is a relaxation on the Germano-Portuguese spreads with a decline in the performance of debt in 10 years Lusitanian around 12.50%. The rate remains high, but it is far from the highest hit in recent weeks.
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