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.
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.
Greece wants a solution to their debt problems that would apply to all of its debt maturing until 2035, said Monday a government source.
"We think of all the Greek debt, expiring until 2035, not 2020 as planned in the previous plan," the source said, adding that "nothing can be done without the European Central Bank ".
Leaders of the 17 euro zone members must agree by the EU summit Wednesday on how the second aid package granted to Greece, including a marked discount on Greek bonds held by the private sector , which represent the 200 billion euros.
"We oppose any unilateral action that could be interpreted as a reconstruction of the debt," the source said.
Whatever emerges from the top of Wednesday, Greek banks are not nationalized, also said the source.
According to the information that leaked a report on the debt of Greece by international inspectors, it seems that the second aid package of € 109 billion agreed in July is no longer sufficient unless private investors n 'accept a discount of 60% on their Greek bonds.
Without it, it would take more than 250 billion euros for Greece is solvent, say economists.
French household consumption of goods increased by 0.2% in August after a decline of similar magnitude in July, show statistics released Friday by INSEE.
Economists polled by Reuters on average expected a stable consumption in July and up 0.3% in August. The growth in consumption in June was revised down to 0.9% against 1.2% originally announced.
"The slight decline in July due mainly to a decline in purchases of cars and housing equipment," INSEE said in a statement."The recovery in consumption in cars and rising energy costs contributed to the slight increase in consumption in August."
Spending on durable goods rose 0.8% in July but remained stable in August. Purchases of automobiles rose 0.9% last month after falling 1.5% in July, according to Insee attributable decline in second-hand market.
"However, note INSEE, after the sharp increase in June (+3.9%), purchases of equipment housing down again in July (-0.7%) and August (-1.7% ).The decrease concerns in particular the purchase of furniture. "
Purchases of textiles and leather rose 1.0% in July after rising 3.6% in June but fell 2.3% in August.
Consumer spending in other manufactured goods rose 0.2% in July but fell even in August.
Meanwhile, household consumption of energy has accelerated markedly in August (+2.6% after +0.2% in July), a movement linked in particular to fuel costs.
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.
Faced with strong pressure on financial markets and fears of a relapse of the economy in recession, the Federal Reserve prepares to influence long rates to support economic activity, an action similar to that conducted in the years 60 and then christened "Operation Twist".
With an eye on the sinking of the crisis of sovereign debt in Europe and another on an unemployment rate fails to fall below 9% in the U.S., the Fed, whose monetary policy committee meets Tuesday and Wednesday, is expected to gradually change the composition of its balance sheet in order to increase the share of long-term securities.
While interest rates in the short term are close to zero and that the balance was weighted by purchasing debt securities for more than 2.000 billion dollars without conclusive effect on the economy for now, the Fed should look to support new ways of focusing on its balance sheet on the long-term bonds at the expense of short titles.
"The signal that the Fed is still active in supporting growth," said Michelle Meyer, economist at Bank of America Merrill Lynch.
A series of disappointing economic indicators were dampened hopes for an accelerated growth in the second half in the United States, after a first half of the year without momentum.
U.S. growth was 1.0% annual rate in the first half and representatives from the Fed announced a downward revision of economic forecasts.
The weaker growth outlook in the summer had led the Federal Reserve chairman Ben Bernanke to announce at the end of last month that the work of the Monetary Policy Committee would take place over two days in September rather than alone.
United States, the loss of the AAA, announced August 6 by the rating agency Standard & Poor's in light of the political divisions in the consolidation of public finances, caused a shock to business confidence and households.
In August, the U.S. economy has not created any employment and retail sales stagnated.
CONSENSUS
At the same time the crisis of sovereign debt in the euro area has increased and the lowering surprise a notch by S & P notes short and long term of Italy, still on negative watch by Moody's, fueled fears of contagion fueled by the situation in Greece.
Other central banks have inflected their monetary policy to reflect the deteriorating global economic environment during the summer.
The European Central Bank kept its rates unchanged last week and reported at least a pause in the recovery cycle that began in April.The central banks of Canada, South Korea and Indonesia among others have given to tighten monetary conditions.
Within the Fed, the consensus of the members of the Monetary Policy Committee seems to have shifted in favor of a change in the balance sheet structure, the total reached 2800 billion, to lengthen their maturity.
The objective of this initiative is to influence long rates to lower the cost of housing finance for households and investment for businesses.
Further reducing long-term rates, the Fed could also encourage investors to look to assets with better returns theory, such as stocks or corporate bonds.
Representatives from the Fed could consider more radical alternatives such as targeting a level of employment, growth or price beyond the current target inflation while the booking if the economy were to deteriorate significantly.
Representatives of the Fed, however, divided on the need for further action.Any further easing, even the simple extension of the maturity of the balance sheet, should be rejected by three members of the Monetary Policy Committee as was the case Aug. 9, when the Fed had decided to extend until at least mid- 2013 the period during which it would keep interest rates at a very low level.
If Ben Bernanke will be keen to get the widest possible consensus on any new initiative, economists do not expect that dissenting voices are a barrier to action.
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.
Steve Jobs, Apple's iconic chief, resigned from his position as general manager, said Wednesday night the Apple brand.
On sick leave since January, Steve Jobs has been appointed Chairman of the Board of Directors of Apple and Tim Cook replaces the position of CEO.
"I always said if I ever came to not being able to perform my duties and obligations as CEO of Apple, I'd be the first to let you know. Unfortunately, that day has come" he wrote in his letter of resignation.
For many analysts, the resignation of Steve Jobs, predictable long-standing, should not prevent the group from Cupertino to continue on the path he laid out, marked by timed out.A new iPhone could also be marketed in September and the third version of the iPad tablet in 2012.
"I would say to investors not to panic and stay calm. Is the right thing to do. Steve Cook is president and CEO," responded Colin Gillis, an analyst at BGC Financial.
At 56, Steve Jobs has survived pancreatic cancer and was on sick leave since Jan. 17.
He was briefly interrupted in March when, emaciated, he came to present the new version of the tablet from Apple, the iPad.Steve Jobs was then photographed at a meal with President Barack Obama.
Since sick leave, Tim Cook held the position of CEO on an interim basis.
Steve Jobs spent all day Wednesday at the headquarters of his company in Silicon Valley, officials said a source close to Apple.
He met with the board and his closest collaborators and intends to play an active role in his new role, they added.
"Investors are very comfortable with Tim Cook, even if Jobs was the engine of innovation.Tim has shown that Apple could totally outperform when he was CEO of Apple, "said Shannon Cross, analyst at Cross Research.
Trading in Apple stock was suspended in electronic transactions. By 2300 GMT, it was indicated down 7%.
Eurobonds are not the answer to the debt crisis in the euro area, said German Chancellor Angela Merkel.
"The Eurobonds are quite the wrong answer to the crisis of the moment," she said in an interview with the ZDF channel that is being broadcast on Sunday."They would lead us to a union of debt and not a union of stability."
The issuance of Eurobonds ("Eurobonds") would cost billions of euros in Germany each year, according to calculations by the German Ministry of Finance quoted by the weekly Der Spiegel.
"The first year it would mean 2.5 billion euros of interest in addition to the budget (Finance Minister) Wolfgang Schäuble and the second year costs would be twice as high," wrote Der Spiegel in extracts of its survey sent to the press.
After ten years the total cost would be 20 to 25 billion euros, according to the calculations of the Ministry of Finance.
Schäuble said for his part personally prepared to transfer sovereignty to Brussels to ensure the stability of the euro area over the long term but added that the euro area itself was not prepared for this eventuality.
"As a person, Wolfgang Schäuble would be ready (to delegate sovereignty to Brussels).The idea of a European finance minister I have no problem, "he said in an interview published Sunday by the Welt am Sonntag.
"But as finance minister I say that it is our duty to solve problems here and now, and that as soon as possible based on existing contracts."
This idea of a European finance minister is particularly recommended by the chief executive of Commerzbank Martin Blessing, in an interview with Welt am Sonntag.
"With the introduction of a fiscal union, Brussels must have the right to return of budgetary powers to countries that do not respect the rules, and to levy its own taxes and create a joint body to issue bonds," he said.
France and Germany are adamantly opposed to the idea of issuing bonds on behalf of the entire euro area, as advocated many market professionals to put an end to the crisis of European sovereign debt .
"Most member states are not quite ready to accept the necessary limitations on national sovereignty, but believe me, it's a problem we can solve," he told the minister.
Schäuble will meet Finance Minister Baroin Tuesday at 8:00 GMT to discuss including the harmonization of corporate tax and the introduction of a tax on financial transactions.
He said Saturday that the countries of the euro area could issue Eurobonds scaffold as if they had a prior fiscal policy and common taxation or they could create inflation and destabilize the region.
European shares opened lower Wednesday, following Wall Street, the proposals announced yesterday by Angela Merkel and Nicolas Sarkozy to find solutions to the debt crisis in Europe is not successful in convincing investors.
Around 9:30, the CAC 40 was down 0.86% to 3203.06 points. Other major European markets, London and Frankfurt, respectively, dropping 1.13% and 1.67%, Milan 1.32% yield.Of the European indices, the EuroStoxx 50 fell by 1.38% and 1.04% Eurofirst 300 loses.
Paris and Berlin have certainly proposed Tuesday the creation of an economic government of the eurozone and the adoption by all countries of the single currency, a "golden rule" of good management of public finances.
But most investors hold the postponement of some decisions such as the issuance of Eurobonds and the idea of a tax on financial transactions.
"He has not had a scoop, these proposals had already been raised in recent days and the lack of project Eurobonds market was not convinced," said a stock dealer based in Paris.
As for values, the possibility to implement a tax on all financial transactions hanging over the financial sector, analysts point out. BNP Paribas shows the largest drop in the CAC 40, with a decline of 2.11%, 1.8% Societe Generale loose and Credit Agricole 1.19%.Stoxx index of bank lost 1.73%.
"Assuming that the proposed tax is based on the current proposal of the European Commission, a fee of 10 basis points (bps) on stocks and bonds and derivatives on a pdb, multiply it by 10 to 20 the transaction costs, "said UBS in a note.
Similarly, the stock exchange operators are affected by this proposal, noting that UBS in the 1990s Sweden had introduced such a tax had seen the volumes of the stock market melt of 85%.
The Swiss bank said this could influence the proposed mergers and acquisitions and reduce premiums for this type of operation.
NYSE Euronext loses 6.21% 3.14% Deutsche Börse and London Stock Exchange Group 3.45%.
On the foreign exchange market, traders were not convinced either by the Franco-German proposals, the euro falling by 0.12% against the greenback at 1.4378 dollar.