European shares fell sharply Monday in volume again, failure of U.S. lawmakers to agree on reducing the federal deficit and a warning from Moody's about the "triple A" of France with weighed on investor sentiment.
In Paris the CAC 40 yielded 3.41% at 2894.94 points.
The new Italian Prime Minister revealed the composition of his government. In addition to its status as prime minister, he will take the reins of the Ministry of Economy at a time when the country is under pressure from the markets. Mario Monti.
The new Italian Prime Mario Monti said on Wednesday it would also economy minister, after his team presented to the President of the Republic Giorgio Napolitano. The former European Commissioner, 68, was named to replace Silvio Berlusconi as head of government while Italy is in danger of suffocation from the weight of its debt.
Monti also decided to create a large Ministry of Development, Infrastructure and Transport told the boss that the second national banking group Intesa Sanpaolo, Corrado Passera. Mr.Monti said the combination of these three portfolios within the same department by the "logic" to "put more centrally coordinated initiatives for economic growth."
Other key ministries were entrusted to experienced technocrats: Foreign Affairs to Ambassador Giulio Terzi di Sant'Agata, the Defense Admiral Giampaolo di Paola, the Interior to Prefect Anna Maria Cancellieri. Corrado Clini, Director General of Ministry of Environment in the last 10 years, was appointed minister. The government of Mario Monti has a total of three women who take charge of Justice, Interior and Labour and Social Policy, said Mr Monti.
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.
European leaders are determined to act in a coordinated response to the crisis in the euro area, said Wednesday the executive director of the International Monetary Fund, Christine Lagarde.
On the eve of the G20 summit in Cannes, the former French Finance Minister acknowledged that could occur in spurts, a thinly veiled reference to the surprise announcement of a referendum in Greece, but it ensured that the determination of the Europeans was decisive.
When working at B20, which brings together representatives of world's largest companies, in Cannes, she explained that global growth was slowing, but she persisted.
She added that the downside risks weighing on growth, suggesting a negative interaction of financial and economic, as well as the risk of social unrest.
About the crisis in the eurozone, "I've never seen so much determination and will to act in a coordinated manner," said Christine Lagarde.
"You will see (reactions such as) 'but what does it speak? What have we seen two days ago?' Of course, things are not smooth, sometimes in fits and starts major, "she added.
"But what matters is what was decided on October 27 in the morning (…) and what will count tomorrow, in the days, weeks and months, it is the resilience and determination of the partners the euro, European partners, "added Christine Lagarde.
Thirty-six, 38, 42 and maybe tomorrow as 50 per month when Airbus increases production rates of its single-aisle aircraft, it's party time for subcontractors in the aerospace industry.Unless the funds to finance the necessary investment will come running out.
These suppliers, some of which also work for Boeing in the interest of diversification, are technically ready to follow the ups cadence, but sometimes have difficulty obtaining financing from their bankers, actors and observers believe the industry.
Driven by the boom in Asian demand swells order books, manufacturers accelerate the pace, especially in the aisle – the segment of medium-haul flights of 150 seats – the most lucrative and most promising of the civil aviation with a value estimated at some 2,000 billion over the next 20 years.The 'supply chain' will fit, maybe it will grind a bit in the ramp-up, but we adapt, "he told Reuters Jean-Claude Maillard, CEO and founder of Figeac Aero, under contractor to Airbus, which finds that up to 48 or 50 units per month is "quite possible".
He echoed the statements of President of the Group of aerospace equipment and defense (GEAD), Olivier Zarrouati – also CEO of Zodiac Aerospace – who recently told Reuters that a growing number of production plants for OEMs keep up the pace aircraft manufacturer was not required.
"You can go to heaven, there is no limit", says David Bonnus, aerospace expert with the firm Step Consulting.
Standard & Poor's Tuesday lowered a notch credit rating of ten Spanish banks, including the two largest in the country, pointing to the darkening economic prospects and a housing market still depressed.
Fitch Ratings has reduced its share shortly after the note of six banks in the wake of its decision, announced Friday, to lower the rating of Spain by two notches to AA-.
Among the banks downgraded by S & P are Santander and BBVA, key institutions of the country.Their two notes back from AA to AA-and carry a negative outlook.
S & P also revised the rating outlook for four banks, reducing it from stable to negative, and placed the bank under review with negative implications.
The prospect of all banks rated by S & P is now negative, meaning that further declines are possible notes.
Fitch, Banco Santander fell from AA to AA-and Banco Bilbao Vizcaya Argentaria (BBVA) from AA-to A +.
Other banks involved include Banco Popular Espanol to BBB +. This note is placed under review with negative implications because of its exchange offer launched on Banco Pastor.
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 New York Stock Exchange ended down 1.61% Wednesday, the Dow Jones industrial yielding 30 179.79 points to 11,010.90.
The S & P-500, wider, lost 24.32 points, or 2.07%, to 1151.06. The Nasdaq Composite fell on its side of 55.25 points (-2.17%) to 2491.58.
The new acting director general of the Swiss bank UBS, which replaces Oswald Grübel after the latter resigned in the wake of the scandal of unauthorized transactions, must now face the difficult task of setting back on their feet.
Saturday, Sergio Ermotti said that the case had uncovered an exposure "totally unacceptable" and said his priority would be to review the control procedures of the bank and conduct an internal investigation into heavy losses.
Sergio Ermotti, a Swiss Ticino aged 51, joined UBS in April from the Italian bank UniCredit.
According to the group's president, Kaspar Villiger, it would be a good candidate to permanently replace Oswald Grübel.
"We are aware of facing a difficult time externally, and this latest incident only makes more imperative still a reaction from us. Let us not, however, UBS is one of the best banks capitalized in the world, "said Sergio Ermotti.
Since the announcement of the losses on September 15, the title UBS has sold more than 10%.However, it has taken 4.8% Friday on hopes that the Board of Directors of the bank agrees major restructuring.
The internal investigation into the loss should result in a delay of 10 to 14 days, but because of external investigations, UBS will not necessarily reveal the findings, said Sergio Ermotti.
The Board asked the latter to accelerate the reduction of investment banking activities.The process must be detailed on November 17 in New York.
According to Kaspar Villiger, the future director of investment banking, Carsten Kengeter, is not threatened, the latter having already worked with a "great job" to limit losses from unauthorized transactions.
However, he did not mean to say if it would make a good candidate for Director General, who shall be provided with permanently within six months.
It would be more optimistic. But this week, what looked like vile premonitions markets began to be realized. Back to the bad news that destabilized the stock markets. A trader at the New York Stock Exchange, September 22, 2011. The Fed and the IMF say they fear a recession
If grants are all black is that they painted a very grim future. The IMF had laid the groundwork earlier this week by revising down its forecast strong global growth, and considering the "worst case scenario", a recession in major developed countries that would eventually weigh on emerging markets.While the IMF does not make his case a priority – rather table it is growing very soft, the risk has become more consistency Wednesday with what the Fed's emphasis on "continuing weakness" of the labor market United States and the "significant risks" associated with "pressure on global financial markets." This pessimism was immediately stunned the markets. And the more they learned that private sector activity in the euro area was recorded in September, its first decline in two years. And that manufacturing activity had declined in China. If even the Middle Kingdom began to fail …
The failure of Greece is similar
Athens is back to the wall. For the loan of 8 billion euros of its creditors and avoid failure in October, Greece has agreed to a new "social massacre" which includes a tax on income from 416 euros per month.Moreover, the second aid plan in advance of July 21 at idle. Europe seems unable to speed up, as shown by the peak in Poland last weekend. And despite the talk of intentions, the scenario of the failure seems inevitable. Greek media have raised the idea on Friday the government to cancel 50% of the debt. Which would lead to a loss of 25 billion euros for Greek banks, most of which have just been degraded by Moody's. The announcement was immediately denied by the government. Until when?
Standard & Poors downgraded the debt rating Italian
This is a first for the boot, Standard & Poor's downgraded the rating on Monday of the Italian debt. This decision did not sway the markets, which expected, but investors fear the domino effect.Growth prospects of the country are particularly likely to be sealed by the new austerity plan of 54.2 billion euros. In turn, Moody's announced that it would degrade Italy "in the coming months." Rome is not the only "lame duck" of Europe. Portugal, already qualified for a loan of 78 billion euros, is in trouble after the discovery of an undeclared debt 1, 68 billion euros. As for Slovenia, she saw the note be degraded by Moody's on Friday. Only Ireland, recovering, doing well with the announcement Thursday of a 1.6% growth in the second quarter. Rare enough to be highlighted …
Brussels acknowledges the need to recapitalize banks
After weeks of procrastination, public authorities have come to settle international: Some European banks will be recapitalized.After Christine Lagarde, who launched the attack late August, the EU has abdicated this week. The IMF, which recommends that banks can recapitalize directly from EFSF, it is estimated that 300 million bill from the Greek crisis for the banking sector. According to the British press, 16 banks have failed those tests fail to stress – be in the viewfinder of EBA (EBA). But the French, who are yet in the heart of stock market panic, would not be affected. Such as Germany and Spain, France is reluctant to inject new funds to banks on the pretext that they are not facing a crisis of solvency but liquidity. If, as apprehensive markets, Greece is lacking, and that Italy and Portugal a restructuring of their debt, they will not escape.
The United States deplored the European fiscal discipline
The more one goes into the crisis and is more visible: the states are powerless to solve the problems because they are unable to agree. For weeks, markets expect strong political positions. Instead, the summits are linked together without any serious decision is taken. Just this week, the Ministers of Finance of the euro area have found themselves in Poland, and Washington for the opening dinner of the G20 finance. But each time, markets would have found that the more anxious. In addition to the severe lack of European governance, the divisions seem more and stronger on one side and across the Atlantic. The United States to Europe including blaming his fiscal discipline, almost incompatible with the maintenance of growth. A conundrum that nobody wants to decide.Not even the IMF, very poor matchmaker. On Thursday, Christine Lagarde has merely conceded to each other, supporting Barack Obama's plan for employment (447 billion), and commending the efforts of countries involved in the decrease of budget deficit …
Operation Twist Fed is pschitt
The markets had placed too much hope in the meeting of the Fed's Sept. 20. They had been dreaming that her boss, Ben Bernanke, went out of his hat and decisive action to support the U.S. economy. Whereby they have had the formalization of the launch of Operation Twist. This is for the Fed to exchange $ 400 billion in Treasury bonds against short-term securities with longer maturities. The objective of this hocus-pocus giant is to influence the rate of long-term interest to encourage business investment and private individuals.Problem, it is an indirect incentive does not offer assurance of effectiveness. In addition, if the technique is clever, it reveals above all the lack of leeway for the Fed can not lower its rates or already virtually zero, or purchase of new Treasury bills. In other words, after the operation Twist, the U.S. central bank is disarmed. What is worrying the markets.