Top Economics News

All eyes are on Berlin where German parliamentarians must vote on a proposed reform of the European Financial Stability Fund (EFSF) earlier this afternoon after a speech by Angela Merkel.The Chancellor will then travel to Brussels for EU summits and the euro area, which should provide practical solutions to the debt crisis.

At 9:30, the CAC 40 lost 0.35% to 3163 points while the Eurofirst 300 was almost stable.

European markets are down, investors holding their breath awaiting the outcome of the day announced as crucial for the future of the euro area.

"It is expected that the Bundestag decides on reinforcements EFSF and the role of the ECB in managing the crisis," said a trader based in Paris.

Values, PSA fell sharply under the influence of lowering its forecast for 2011 after a third quarter marked by lower volumes and increased competition on prices in Europe.The group is likely to reduce its workforce by 10% in Europe.

Ingenico, in contrast, was part up 5% in early trade Wednesday of the Paris Bourse, the manufacturer of payment terminals has published the day before its sales for the third quarter.

The euro remains firm and resolutely clings to a level above $ 1.39, while the German Bunds are hesitant, waiting for a clearer trend in equity markets.

Spot gold rose 1% touching a high of more than a month, reflecting investor fears that the crisis drags on still.

Banks must be better capitalized to avoid an escalation of the crisis that would be caused by a financial collapse, said Sunday the German Finance Minister Wolfgang Schäuble on the ZDF television, adding that banks no longer trust the to each other.

"We need better regulation and better capitalization of banks," he said.

"Everyone will not like this, but it is the best way there is no escalation of the crisis caused by a collapse of the banking system."

"The cause of this crisis is too much debt, but we must fight the danger of contagion. We must simply recognize that banks currently have more trust towards each other, so the market Banking is not working as it should.The best way to combat this is a better recapitalization. "

A few days after the piracy suffered by Areva, Paillou Patrick, the patron of the National Security Information Systems, was called to order hexagonal businesses and governments. He said protection systems are "permeable" and "abandoned." A participant of the Chaos Communication Congress, held in Berlin in December 2010.

Computer protection systems administration and French companies are they permeable? In any case, the conviction of Patrick Pailloux, the executive director of the National Security Information Systems (ANSSI). He called to order Friday in Monaco these companies and administrations judging their systems "in danger". "The situation can not remain as it is, information systems are in danger and we sometimes feel they were abandoned to their fate," said Mr Pailloux.

In his closing conference on security and information systems of Monaco, which were held from October 5 to 7, he was willing to cite any company. But the speech comes just days after French nuclear giant Areva has admitted being the victim of a cyber attack. The hackers had required the intervention of the ANSSI agency attached to the General Secretariat of Defence and National Security, a service of prime minister. Areva has ensured that the attack was focused on "non-critical information and not on sensitive information."

"We are far from the account. The situation everyday reality on the ground, is that our information services are often porous, and that malicious actors have benefited greatly.We often security loincloth, who does not eat bread and that ultimately does not bother anyone "insists the director general of ANSSI. And to prevent him:" we must take back control of our own systems, it no fatality, it's possible because it is not that difficult. We must mobilize to ensure that safety rules are followed. "

The Health Minister urged to sign the mutual agreement on the reimbursement of excess fees by the end of the week, in which case the government "take responsibility". The Minister of Labour and Health Xavier Bertrand

The Health Minister Xavier Bertrand on Tuesday reaffirmed that if by the end of the week did not sign the mutual agreement on the reimbursement of excess fees in certain specialties, parliamentary and government "take responsibility". "I prefer appeasement rather than confrontation," assured the minister of LCI considering that "it is the interest of patients that we take care in an organized and excess fees in certain medical specialties ".

According to Xavier Bertrand, mutual initially had agreed to the project and "bang, because there was the tax on contracts managers, they tell us no.""We need that before the end of the week, there is a meeting to see if it's yes or no, and if yes, when," he said. Without mutual agreement, "the government and parliament take their responsibilities." "We need a clear agreement," he said.

The medical convention signed in July between GPs and health insurance provides for an optional area in which said tariff would fall practitioners who agree to limit their fees, conditional relief from their charges.Les additional reimbursement to patients overruns capped nationally.

They have until September 30 to sign the agreement but they want to continue the discussions, including consideration of regional disparities in rates charged by practitioners.Mutuals are also unhappy with the increase in the tax on their contracts, health caring and responsible decision in the austerity plan.

Job creation increased this summer and the growth of the wage bill is expected to exceed 3.6% this year. Good news for Social Security accounts. A turnaround is not excluded. Officers, employees

Not everything is black on the employment front. Although the number of registered unemployed at employment center is rising considerably and the last three months. But several indicators released today by ACOSS (the agency responsible for collecting contributions for Social Security) have shed light on this first day of autumn.

After a slight dip in May and June, reports of recruitment of more than a month in the private, non-temporary, considered a leading indicator of labor market, rose 4.6% in August compared in July, to 648,000, an increase of 10.6% over the year. Declarations of hiring on permanent contracts are also up: 290 000 in July.Levels comparable to those before the crisis, during the period 2002-2007.

This flow of hiring has drawn the net job creation on the rise (+0.2% over three months in July, 1.6% yoy). Other indicators on the financial health of companies also are facing: the default rate, requests for payment deadlines and the number of bankruptcy remained broadly stable.

"Our data are quite encouraging" while "the overall context is excellent," said during a press briefing Pierre Burban, the President of ACOSS. "There was the first half of job retention and maintenance of payroll," he said. Indeed, the wage bill increased by 0.9% in the second quarter compared to the first and 3.8% year-over-month rolling.Growth consistent with the long-term average over the decade 2000-2008.

1.5 billion of revenue in addition to the social security

The really good news is that even if the wage stagnation for the next six months, the growth overhang already reached 3.55%. According to ACOSS, the annual increase should exceed 3.6%, 0.4 points above the government's latest forecast in the supplementary budget in June. Good news for Social Security should be able to save at least 1.5 billion euros in additional revenue.

But all is not rosy either. The second quarter was marked by a slowdown in the dynamics of the curve of employment. Thus, the increase in job creation was twice as high in the first quarter (+0.5%), and the amount of overtime, which had been buoyant in recent months has slowed sharply in July, 1.1%.In addition, temporary employment, considered a leading indicator of the labor market, fell by 0.6% while it rose by 5% per quarter in recent months.

These indicators are perhaps the first signs of a turnaround in the labor market, timely adjustment of enterprises to the economic impact varies from one to three months. Or the stock market crisis erupted in late July and has been a really dramatic turn for the banks in August. It is also the end of August the government took note of the slowdown in the French economy and revised its outlook for 2011 and 2012 downwards.

The British authorities to fight against fraud are currently reviewing certain transactions by Deutsche Bank and Goldman Sachs, the Financial Times reported Monday.

The daily said that the investigation is part of a collection of evidence to determine whether certain financial institutions have fraudulently presented some financial stocks to their customers and counterparties is misleading.

The Serious Fraud Office (SFO) UK has spent the last two years to focus on sales of bonds backed by home loans (ABS) and their possible role in the financial crisis of 2008-2009.

Monday, fifteen minutes after the opening, the action Deutsche Bank lost 5.5% to 24.59 euros.The European sector index banks lost 3.31% to him, in reaction to the fact that the U.S. federal agency oversight of mortgage loans (Federal Housing Finance Agency, or FHFA) filed a complaint Friday against 17 major financial institutions for losses relating to bonds linked to subprime.

Deutsche Bank is already covered since Friday by a complaint from the U.S. federal agency oversight of mortgage (FHFA), which accuses 17 major international financial institutions for a total loss of $ 41 billion in bonds linked to subprime These loans granted without regard to the resources of borrowers.

Goldman Sachs, Bank of America, JP Morgan Chase or Societe Generale are among the other banks involved.

According to the FT, the British SFO also examines transactions Goldman Sachs, which said the file Timberwolf, an ABS fitted by the bank in 2007 and that U.S. authorities are also interested.

The SFO has not yet opened a formal investigation but has appealed for witnesses.

Neither Deutsche Bank nor Goldman Sachs were not immediately available for comment on the report.

Politicians and officers European banks are again headwind against the International Monetary Fund (IMF) that the banking system of the European Union suffers from a lack of capital.

According to a European source, the IMF estimates that European banks may face a lack of equity of around EUR 200 billion to address the crisis of sovereign debt in the euro area and slowing growth.

Last Saturday at the annual meetings of the Federal Reserve, the IMF director Christine Lagarde had called for a recapitalization "substantial" financial institutions in Europe.

This quarrel between the institution of Washington and European leaders illustrates the differences on the health of the European banking sector.

The IASB, the International Accounting Standards Board, also issued this week reservations about the methods of valuation of government debt used by some European banks.

The European Commission has however reiterated that the EU did not need to recapitalize its banks beyond what was decided in July after the results of stress tests conducted by the EBA (EBA ).

"Our analysis of the situation has not changed.It is in fact shared by the Member States, "said a spokesman for the European Commission." We had a discussion on the results of stress tests of banks. It is our diagnosis and there is no reason to change it. "

"We are aware of these figures (the IMF, Ed) but we think they have serious methodological flaws.There are discussions on the subject with the IMF "has in turn informed an official source in the euro area who requested anonymity.

BANKS REACT

The German and French banks have also responded by ensuring they were adequately capitalized.

"French banks are well capitalized," said a Reuters spokesman for the French Banking Federation (FBF)."They have increased their capitalization since the crisis."

When the MEDEF Summer University in Jouy-en-Josas (Yvelines), the budget minister Valérie Pécresse also indicated that French banks had sufficient capital.

"I believe that there is no concern to be for French banks," said the minister, echoing the words of the Minister of Economy, Baroin Wednesday night on France 3.

Earlier in the morning, German banks felt that the fears of the IMF on a possible lack of capital were not justified.

"Banks are well capitalized," said Michael Kemmer, director of the professional federation BdB, in an interview with German daily Die Welt.

The BdB represents some 210 private banks including Commerzbank and Deutsche Bank.

"We do not understand how the IMF comes to these conclusions," he responded in turn the Federation of German public banks VoeB.

Earlier in the week, the EBA (EBA) was also reported that banks in the European Union did not need to be massively re-capitalized.

Concerns about the crisis of debt in the euro area and the worsening economic climate, however, continue to weigh on European financial stocks in the euro area.

In Paris, Crédit Agricole and BNP Paribas, highly exposed to sovereign debt of the peripheral countries of the euro area, and drop between 23% and 29% since the beginning of the year. The European banking index was down nearly 26% since January 1.

Volkswagen sales have increased strongly in July, the group said that its growth prospects remain in line with its forecasts.

The economic downturn does not seem to have a material impact on the activities of the German, European leader in the automobile.

"The Volkswagen Group maintained its growth trajectory due to its strong lineup," said the sales manager Christian Klingler in a statement.

Retail sales in July rose 16.3%, marking an acceleration from the pace through the first seven months of the year (14.4%).

China, Volkswagen's largest market by volume, has increased sales by 16.4% between January and July.Over the same period, sales in Central and Eastern Europe grew by 28.7%, and the United States of 21.4%.

But with a limited increase in German GDP to 0.1% in the second quarter, but the group could soon be in trouble in its home market, where one in three cars sold is a brand owned.

France, Italy, Spain and Belgium will restrict speculative this practice for 15 days, to combat rumors that destabilize current market. The practice of selling découvetr is accused of precipitating the fall of the most fragile, and aggravate instability in the financial markets.

France, Italy, Spain and Belgium will restrict short selling, a practice speculative complex to combat the "false rumors" that destabilize financial markets, announced Thursday the ESMA, the European financial regulator . In France, the Autorité des marchés financiers (AMF) has decided to ban short selling of eleven financial stocks for two weeks, told AFP its president, Jean-Pierre Jouyet. The nature of the measures in other European countries has not been specified by the ESMA.

Fighting rumors

These decisions were made when most financial stocks suffer French since Wednesday scares, which have their share price plunge in markets already nervous. "We deal in various European countries to rumors that are unfounded," noted the president of the AMF, in which "we wanted to test the French Resistance." "These rumors can amount to market abuse," said Mr Jouyet, taking the term by which the MFA refers to price manipulation and insider trading. "This is our answer, as it is always very determined and it will deal with anyone who wants to test us," he said in announcing the ban on short selling of financial stocks for 15 days.

Sell ​​an asset which does not own …

Short sales are speculative mechanism of borrowing an asset which we think the price will fall and sell it, hoping to pocket a large difference when it will have to buy to make it to the lender. Thus, a share sold short while rating 10 euros, and as she bought is only worth 8 euros, the author refers to the operation of a gain of 2 euros. This practice is risky, is accused of precipitating the fall of the most fragile, and aggravate instability in the financial markets. ESMA (European Securities and Markets Authority) said in a statement that Italy, Spain and Belgium had also decided to take steps to restrict short selling.

The stock market authorities of these countries "have made it to restrict the benefits that can be derived by spreading false rumors," said the ESMA, which may not prohibit short selling of government securities with the consent of national regulator of the country concerned. Since Wednesday, most financial stocks French are the target markets of scare stories, and suffered severe tumbles, over 10% for some. These rumors were strongly denied by the institutions concerned, especially BNP Paribas and Societe Generale and the Banque de France and the AMF.

After heavy falls Wednesday, Societe Generale rebounded 3.70% to close Thursday, Crédit Agricole and BNP Paribas 5.14% to 0.31%. "It is possible for us to open an investigation into the case of Société Générale", as requested by the bank, said Jouyet.Short selling of financial stocks had already been banned in several countries during the 2008-2009 financial crisis. For Christian Parisot, chief economist at Aurel BGC, it is not clear that this type of measure to solve all the problems. "It may limit a little movement, but there are other techniques" to speculate on the decline, he says. "So it's not a panacea for all." For the president of the AMF, "we have ways of monitoring important today but it is clear that they must be further strengthened throughout Europe and it should be considered a pooling of resources at European level" .

The European Central Bank (ECB) announced Sunday that it would "actively implement" its bond buyback program to try to stem the debt crisis that has shaken the euro area and threatens to spread to the Spanish economy and Italian.

A few hours to a day ahead of key markets, the European financial institution has not specified which countries will be affected by the takeover of debt but every indication that this may be of obligations of Spain and Italy.

In a statement issued after a conference call late Sunday, the ECB urged Rome to Madrid and set up as quickly as possible measures of fiscal consolidation recently announced by both countries to try to reassure markets .

"On the basis of these estimates that the ECB will implement an active program of redemption of bonds," wrote the ECB.

The absence of bond buyback of Italy and Spain by the ECB to ease prices has been particularly punished by the markets that have seen the sign of internal divisions harmful.

Markets expect the ECB to see begin on Monday the purchase of government bonds in both countries to stabilize their prices.Interest rates in Italy and Spain in recent days jumped to their highest levels in 14 years.

BERLIN AND PARIS PRESS

In a joint statement issued Sunday a few hours before the end of the meeting of the ECB, the French president and German Chancellor Angela Merkel stressed that "a rapid implementation and complete the measures announced is essential to restore market confidence ".

According to South Korea, a conference call Sunday morning brought together financial officials of the G20, which groups the world's major economies, to discuss the situation caused by tension on the debt in the euro area and lower by Standard & Poor's sovereign rating of the United States.

UK source, the G7 finance ministers are likely to have a conference call Sunday night.

"It is very likely that the telephone meeting of G7 Finance Ministers is taking place later tonight," the source told Reuters, saying that it expected to start from 21:00 GMT, before the open financial markets.

The G20 and the European Central Bank have been active behind the scenes to assess the consequences of the debt crisis on both sides of the Atlantic, shaking financial markets and fears of a relapse of Western countries into recession .

After heavy turbulence in global financial markets, which have lost about 2.500 billion dollars over the past week, European and American leaders find themselves again forced to reassure investors about the ability and determination of their countries to reduce deficits and public debts.

PANIC IN THE GULF AND ISRAEL

Saudi Stock Exchange, the largest in the Arab world, has faltered on Saturday, falling from 5.5% to a low of five months before showing a small increase of 0.08% at the end of Sunday.

But it was in Tel Aviv that the decline was most pronounced with a fall of 6.99% recorded by the TA-25 index in Israel.The TA-100, wider, has meanwhile shrunk by 7.2%.

This is to prevent these events happening again Monday in Tokyo, then in Europe and the United States, as G7 finance ministers were also to contact Sunday.

In his statement released Sunday evening, the ECB considers "fundamental" that governments are ready to activate the European Financial Stability Fund (EFSF) on the secondary market when the implementation in the European countries to the agreement of July 21 has been performed.

An extension of the crisis in Italy or Spain, after the bailouts granted to Greece, Ireland and Portugal, in the eyes of observers would require a strong increase in lending capacity of EFSF, equipped for time of 440 billion euros.

Quoted by the weekly Der Spiegel, the German government experts doubt that Italy could be re-floated by the EFSF even if the fund saw its capacity threefold, because the needs of Rome are in their too great.

United States, the lowering of the sovereign rating has been denounced by the Treasury, which held that the rating agency "forgot" 2000 billion in budget savings in its calculations.

In Washington, an economic adviser to the White House deplored the decision by S & P to degrade the rating of U.S. debt from AAA to AA +, which could ultimately affect all markets by increasing the cost of borrowing and undermining the prospect of sustainable recovery.

Asian allies of the United States, Japan and South Korea have renewed their confidence in U.S. Treasury bills, may lose value.