Top Economics News

After the loss of triple A, the real estate professionals were inclined rather to an increase in lending rates. But the opposite occurs in February, according to the online broker best rate.

Contrary to the fears widely reported by the loss of triple-A, mortgage rates are down slightly for this month. This is apparent from a study of online broker, Meilleurtaux.com. In February, 45% of banks show declines of 0.15 points on average, 31% have left the stable. Only 24% have made gains. Overall, the average credit rate stood at 4.28% against 4.31% in January.

OAT rates down

"We do not expect this result" surprising Sandrine Allonier, head of economic research meilleurtaux.com. It must be said that the rate of OAT (comparable Treasury obligations), that is to say the rate at which France takes the 10-year bond has not increased. The Hexagon borrows at preferential rates. And on the contrary, it borrows a better rate. "For example, in February it reached 2.89%, whereas before the loss of the triple A, it was 3.40%," says Sandrine Allonier. Second explanation, the rates of the European Central Bank (ECB) and the interbank rate, the interest rate charged between banks themselves, remain stable. Finally, the loss of the AAA had been anticipated by financial markets and banks have rebuilt their capital. Consequently, they can lower their lending rates long and short term.

March, the month in real estate transactions

"Presumably, this slight decline will continue in March, one month is very rich in real estate transactions." Banks are trying to position themselves in relation to competition. Hence their strategy to attract new customers by lower lending rates in the long and short term. "Some had rates at 4.30%, which rose 4% in February. These banks want to take their game," said Ms. Allonier. Before continuing, "the banks are still selective about the cases. All require a contribution of 10%."

Apply for credit up

The increase in the number of credit reports is the second conclusion of the study meilleurtaux.com. A figure up 20% compared with December, while still down 2% year on year. Borrowers do not turn away the real estate market. There are still a safe haven, especially since many of them expect lower prices in 2012, "the order of 5% in some areas," said Sandrine Allonier. However, "there is a caution for future buyers: they are occasionally more likely to assess their borrowing capacity before they have found a property. Those who led a project with a signed sales agreement fell 4% over a year. "

The new car registrations fell 20.7% in January. The slump was even more dramatic for PSA Peugeot Citroen and Renault. The new Renault parked Flins-sur-Seine, near Paris The French car market plunged in January, a victim of weak controls and an unfavorable comparison with the beginning of the year 2011 where he had been supported by the premium to casse.Les registrations fell 20.7% in raw data to 147,143 units, according to the Committee of French Automobile Manufacturers (CCFA). A comparable number of working days, the decline is even greater at 24.3%. The meltdown is spectacular for the two French carmakers. Registrations of PSA Peugeot Citroën have collapsed by 27.4% (30% for Peugeot and Citroen 25%) and those of the Renault group 32.7% (-37% for the Renault brand and -10.5 % for the low cost brand Dacia). unfavorable base effect "It is like the month of January 2011 which was the highest for ten years" with over 185,000 new cars sold, moderates a spokesman for the CCFA. The scrappage scheme, set up by the government to support sales during the crisis, had been reduced gradually and disappeared completely at 31 December 2010. But it was on cars purchased and delivered to date through March 2011.Pour However, the aftermath of his death is not sufficient alone to explain the plunge last month. "We know that the orders (new car, note) were low in December, resulting in registrations," said the spokesman for the CCFA, which warns that the first quarter should be in part difficile.Chômage PSAConcernant orders in January, "they were stable compared to last year" for Renault, said France's commercial director Bernard Cambier. Peugeot, however, rose by 20%, according to the director of Peugeot France, Olivier Veyrier. To face these headwinds, PSA has already planned a week of partial unemployment in February or March for more than 20,000 of its employees to reduce the major German manufacturers stocks.Les gagnantsLes German manufacturers, champions of high-end, n have not this problem. Their registrations rose in January, 18% for the Volkswagen group, 16% for BMW. Only the group runs out of steam Mercedes (+0.8%), due to the underperformance of its brand Smart (-26%). Sales of Nissan Japan also increased, while those of the American Ford, General Motors, the Toyota Japanese, Italian Fiat and Hyundai have décru.La Korean War price until when? To boost sales, the groups are likely to continue the price war in which they are engaged for several months. But "manufacturers can not continue to have sustainable margins deteriorate," warned the president of the National Professional automotive (CNPA) Patrick Bailly. In this context, "the launches of new models of French manufacturers, PSA for the 208 and the new Clio Renault, will have considerable importance," warns Flavien Neuvy, head of the observatory Cetelem.La Peugeot 208 will go on sale this spring. The Clio IV will appear in dealerships this fall. Renault is also counting on the future Dacia SUV, the Lodgy. "This is the heart of their range and sales," said Mr. Neuvy still, for whom the French could enable cars to boost sales to individuals who continue to decline, unlike those companies. Registrations of light commercial vehicles, specialty French manufacturers, have better kept, with a decline of 2.5% in raw data to 32,707 units.

Greece has one last chance to stay in the euro area and must make a "maximum effort" to avoid being brought back several decades, warned Wednesday the central bank Hellenic.

Painting a picture severe the nation's finances, the Bank of Greece said that the failure to achieve its fiscal targets, delays in implementation of reforms and strong economic contraction had questioned his recent claims about the sustainability of the country's debt.

"The country must avoid at all costs further delays or deviations from objectives; every effort is needed to do better than the targets," said the Bank in its interim report on monetary policy.

"The current situation is the most critical period of Greek history of the postwar period. What is at stake is whether the country will remain within the euro area."

The new prime minister, Lucas Papademos, promised to push reforms forward, although he met a mixed support for the main parties and trade union opposition to the new austerity plan which he has committed.

After the Senate Friday, the Italian Chamber of Deputies adopted late Saturday afternoon the law of financial stability, a step that paves the way for Berlusconi's resignation and the formation of a new government.

Berlusconi, who was unable to obtain an absolute majority Tuesday, promised to resign after the Italian parliament have endorsed the law of financial stability, requested by the European partners of Rome to restore market confidence in public finances Peninsula.

Silvio Berlusconi is expected to recover in the next few hours his resignation to President Giorgio Napolitano. It is the former European Commissioner for Competition Mario Monti should succeed him.

Over the past twelve months, the transactions made by Greeks reached some 250 million pounds. They seek to place their assets ç outside the country and the euro area. The London property market is relatively stable and offers a return on investment

They lag far behind Gulf investors or Russia, but the Greeks buy more properties in London, considering the British capital as a sanctuary for their fortunes away from the turmoil of the crisis that undermines their pays.Alors the Athens can abandon the single currency has been openly discussed by European leaders, some Greek citizens believe evidence that leaving their assets to their homes is far too risky, and struggle to get them out of the euro area.

London, where the real estate market is relatively stable and offers a return on investment, seems like a good alternative, according to industry experts. "The Greeks have long been on the market in central London, but after eighteen months, the number is increasing," says Liam Bailey of Knight Frank real estate agency specializing in luxury homes.

The Greeks represent 1.5% of the market

This interest was further increased in recent weeks with the deepening of the Greek crisis, confirms Richard Barber, who works at the WA Ellis agency, which specializes in upscale neighborhoods of Chelsea and Knightsbridge. "They prefer to put their money into real estate rather than first class in Greek bonds. The property market in London has a reputation as a sanctuary." The phenomenon is still embryonic.

Objective: six to eight billion euros in additional savings.The French government Monday unveiled new measures to contain its deficit and preserve its sovereign rating as part of a budget among "the most severe since 1945."

Prime Minister Francois Fillon, who will present the plan in mid-day after the cabinet meeting, prepared the minds saying Saturday that there was no alternative to the reduction of public spending.

The executive, who proceeded to the final Sunday arbitration, fails to speak always of "rigor" or "austerity" but "the moment of truth" announced by the prime minister sounds like this six months of the presidential election.

Exchanges in the euro area have closed down sharply Friday, with the G20 summit concluded its work without any major decision, and especially without a concrete solution to the debt crisis in the eurozone.

In Paris the CAC-40 lost 2.25% to 3123.55 points. For the week, it yields 6.72%. The other major European markets also ended down: London and Frankfurt lost 0.33% 2.72%. Of the European indices, Eurofirst 300 finally lost 1.02%.

The Wall Street players show the same skepticism, resulting in losses of more than 1% for the three major Dow Jones, S & P 500 and Nasdaq Composite, despite the employment statistics rather positive.

"The G20 has not entered into by major decisions. It was a big problem with Italy," says one vendor."There is no visibility," he said, adding that the new EU stability "is not forthcoming."

Alexandre Le Drogoff, technical analyst at Aurel BGC, said the "bear market" comes back and that "the current decline in prices should lead to lower annual test" (2693 for the CAC 40, 1935 for the Eurostoxx 50).

The euro transplanted nose against the dollar and appears on course to acknowledge its biggest weekly loss since mid-September, traders in the largest remaining uncertainty about the bailout of Greece in preparation for the vote of confidence.

The Bund future was up, taking advantage of the lack of commitment of the G20 countries on strengthening the participation EFSF, especially after the statements of German Chancellor Angela Merkel.

Private creditors of Greece may have to accept a loss of up to 60% on their sovereign debt to the Greek debt can become sustainable over the long term, according to a report that will serve as the basis for decisions of the leaders of the euro area meet Sunday and Wednesday in Brussels.

The EU finance ministers STRIPS for their Saturday on different scenarios and try to resolve their differences in voluntary or not of such private sector participation to a new bailout for Greece.

Friday night, they brought a breath of fresh air in Athens, giving the green light to the payment by mid-November of the next tranche of international assistance by 8 billion euros, without which Greece would default on its securities sovereigns in the coming weeks.

The International Monetary Fund still has to also accept the payment, he conditioned ambitious decisions of Heads of State and Government of the euro area to reduce the mountain of Greek debt.

According to the scenarios included in the report of the troika – IMF, ECB and European Commission – representing international donors in Greece, a 50% discount on Greek bonds held by private investors is necessary to reduce debt to 120% of GDP , against 162% today.

If it was intended to bring it below 110%, a discount of 60% would be necessary, the report, which warns that the Greek debt could have a peak at 186% of GDP.

A footnote on page mentions, however, opposition from the European Central Bank to the publication of such scenarios because it believes that investors will refuse to subscribe voluntarily to these losses, resulting in an inadequate Greek.

Fearing to trigger a credit event with unforeseeable consequences, France and several other countries are also reluctant to go beyond the envelope of 50 billion euros negotiated last July 21 with the banks, as demanded German authorities if necessary by forcing them to go the extra mile.

FUND SUPPORT FOR THE EURO AREA

Reflecting a view increasingly shared by European leaders, the Swedish Finance Minister Anders Borg has called for Saturday to a "substantial discount" on the Greek titles.

"I do not think we should use taxpayers' money.The safeguards system can not only restore confidence, "he said on his arrival at the meeting of EU finance ministers.

In addition to the Greek plan, they try to move forward on Saturday a comprehensive plan to recapitalize banks on the continent, aimed not only to prepare them for losses in Greece but also to restore investor confidence.

Several European and banking sources told Reuters earlier this week that the plan could be around 100 billion euros.

They must also continue work to define a formula acceptable to all the Fund to leverage support for the euro area (EFSF), on which Paris and Berlin are divided.

Friday night, after a meeting of the Eurogroup, which barely touched the issue, the economy minister, Baroin said that France continued to believe that the conversion of cash in bank was the best solution but did not make "one final point of confrontation."

"What counts is what works.And what works is what will go towards deterrence and effective firewall and it is around that we're trying to work, "the minister said to the press.

SARKOZY, MERKEL MEETING

Granted a banking license in EFSF would allow access to funding from the European Central Bank to increase its capacity for action by a factor of up to five.

But Berlin rejects this possibility, which would be to accept that the institution of Frankfurt finance the countries of the euro area, one of the dogmas explicitly excluded by the European treaties.

The other members of the euro area are also divided, Belgium and Spain having voted for a reconciliation BCE-EFSF while Slovakia and Austria have indicated that this solution was not studied.

A European source said Friday that among the solutions on which floor the ministers, not imply the

ECB.

This issue could be decided on Saturday evening at a bilateral meeting in Brussels between Nicolas Sarkozy and Angela Merkel, who will be joined by the presidents of the Commission and the European Council, José Manuel Barroso and Herman Van Rompuy.

European leaders are under intense pressure by their international partners to take decisive action against the crisis, less than two weeks of the G20 summit in Cannes, where they planned to hold them accountable.

Olympus still has the title fell 6.81% Friday, the market value of the Japanese and melted with about 50% since last Friday, the day he announced the dismissal of its chief executive Michael Woodford.

Investors have pushed the action and the manufacturer of cameras and optical instruments of precision to a low of two and a half years, adding to even more pressure on the group to be explained on unusually high consulting fees paid in connection with an acquisition and revealed by the ousted leader.

Olympus acknowledged Wednesday it had paid $ 687 million (498 million) in financial advisors in the purchase of the British manufacturer of medical equipment Gyrus.

These fees represent a third of the price of the acquisition, whereas traditionally they account for only 1% or 2% of the value of a transaction, according to a PriceWaterhouseCoopers study commissioned by Michael Woodford.

POLICE PROTECTION

The latter told Reuters on Thursday it had filed for protection under the British police after submitting new information to investigators British anti-fraud regarding fees.

In the data transmitted to the authorities by Michael Woodford, a former investment banker from Japan appears to be the central figure in the matter of fees.

According to these documents, Hajime "Jim" Sagawa was the owner of AXIS, a financial services company little known American who received the exorbitant fees reported by Michael Woodford.

Olympus, which denies any impropriety, said the fees had been paid to its subsidiary AXIS Axam Investments, a company registered in the Cayman Islands, including Hajime Sagawa was a member of the Board, the report of PricewaterhouseCoopers.

Reuters visited the home of the latter, a former Nomura banker, only to find that his wife, who assured that her husband had done nothing wrong.

INVESTIGATION OF SESC JAPAN

Michael Woodford has also written to the Securities and Exchange Surveillance Commission (SESC), the authority of the Japanese financial markets, asking him to consider the case Olympus.

An investigation by the SESC could take months. Financial Services Minister Shozaburo Jim said the policeman of the financial sector would work, but refused to comment on individual cases.

"Olympus has clearly withheld information to investors. And even if she is not guilty of actions contrary to law, management has breached its obligations vis-à-vis shareholders.It should take responsibility, "said Shigeo Sugawara, manager of Sompo Japan Nipponkoa investments in Asset Management.

Olympus may have to spend significant impairment likely to weaken its balance sheet. And even if, according to manager, many candidates would be interested in the instruments of precision optics group, no one would touch it before the case is improper fees paid.

The company is now worth some $ 4.5 billion.

Brokers have suspended their coverage of Olympus as key shareholders and require that the group be made public links between management and its financial advisors.

The new organization called the head of Renault after the false spy case will come into force on 2 November as planned and strengthen the power of the CEO Carlos Ghosn with the aim to avoid the fiasco of the early recurrence in 2011.

Two audits were presented last April to the board of the diamond group to shed light on the failures that led to falsely accuse several of its executives of industrial espionage.An audit was conducted in-house and one by the firm Bearing Point.

Among the organizational changes confirmed Friday night in a brief statement included a redesign of the security service of Renault, who was at the heart of the case that began in January and now suspected to be a scam.

The new management of protection and prevention group, the prerogatives extended, will be led by Eric the Great, who was previously a function similar to the Post Office.But in the future to reduce the risk of error, the direction will be doubly locked with the appointment of an Inspector General, Jean-Marc Berlioz, who led a time IGPN (General Inspectorate of the National Police), and who will report directly to the CEO.

"President Carlos Ghosn had communicated its intention to implement all the report's findings as soon as possible," it said in a statement from Renault.

The new organization also confirms the reunification of HRD and the enlargement of the former General Secretariat (support functions, management and legal protection group, the famous security service), Mouna Sepehri told.Both services are now placed directly under the authority of Carlos Ghosn, and not under that of his number two as in the previous architecture.

The responsibilities of the new Chief Operating Officer Carlos Tavares are reduced compared to those of his predecessor Patrick Pélata, ousted after the affair.

Carlos Ghosn turns his back on a tandem operation that has punctuated the history of Renault with famous couples, like the one formed by CEO Louis Schweitzer and the Secretary General Michel de Virville in the 1990s.

So far, Carlos Ghosn had seemed like a time to step back and focus on long-term strategy of the Renault-Nissan, and had delegated for this purpose from 2008 operational direction of the diamond group at Patrick Pélata.

"It's a good thing he is more responsible for Renault, he made it clear from the case that the company was within its responsibility, and employees expect there to be a boss and a single" said a source told Reuters the company.

The state, which owns 15% of Renault, has never hidden its displeasure over the matter.Renault said Friday that Veronica Dosdat named director of public affairs, will be responsible for defending the interests of the group with public authorities in France and worldwide.

REDESIGN THE COMMUNICATION

Audits of spring had never accepted the responsibility of the CEO of Renault.The two reports believed that the president of the company was not part of those "who played a key role in the investigation of the case and / or the anchoring of the belief that it was a case of corruption.

Carlos Ghosn had however provided in January at 20 hours of TF1 that he had "certainty" and evidence "multiple" to support the dismissal of executives.

The espionage case ultimately led to the indictment of Dominique Gevrey, one of the security officials of Renault for organized fraud.The executives were charged for their compensation and, for two of them returned to Renault.

The audit also recommends the establishment of a new management expanded audit and risk management, reporting directly to Carlos Ghosn, whose spokeswoman for Renault said it would be entrusted to Farid Aractingi, who held this function in the previous version of the chart.

Mouna Sepheri had also given the task of learning from the management of the crisis in communications.The audit criticized the internal and external communications have left no room for doubt for several weeks, the group announced Friday the appointment of a new communications director e, in the person of the automotive journalist Florence Goldfiem.