Top Economics News

Wall Street opened lower Friday, as hinted at future developments, in anticipation of a highly anticipated speech of Ben Bernanke.

The Fed chief must speak at 14:00 GMT (16:00 in Paris) in Jackson Hole (Wyoming), as part of the 35th annual economic symposium of central banks. It is likely that he will announce gradual steps, not an ambitious new plan to repurchase shares.

A statistic of GDP lower than expected can also affect early trade.

The U.S. economy in the second quarter growth initially announced lower, weighed down by business inventories and exports despite the upward revision to consumer spending.

The Dow Jones lost 0.6% to 11,083.07.The S & P 500 0.58% 0 C7DE 1152.60. The Nasdaq Composite drops 0.26% to 2413.29.

Transactions could also be disrupted by the arrival of Hurricane Irene, which is sweeping the East Coast Friday the United States and should be on its way over 50 million people and numerous cities.

Vicat said Thursday expect a slight reduction of its operating margin in 2011 due to the revolution in Egypt, rising energy costs and start-up costs of factories in India.

The cement, which was conducted in 2010 an EBITDA margin of 25.0%, said however that it should enjoy this year, however, a gradual recovery in activity in mature markets, the dynamism of emerging confirmed except the Egypt and the pursuit of its savings measures.

Vicat achieved in the first half EBITDA margin declined 1.5 points to 22.1%, with a turnover of 1.146 million euros, up 10.7% at constant scope and exchange rates.

Vicat said to expect a gradual recovery in sales volumes in France, its main market, while prices should stabilize or slightly improve.

United States, Vicat also provides a very gradual improvement of markets in terms of volumes and prices, a sustained growth is not expected before 2013, while stressing that the visibility is currently very low.

In Egypt, Vicat showed a fall of 13.9% of consolidated revenues in constant currency, within the scope of a 6.4% contraction in sales volumes, lower prices and a sharp contraction more than 10 points in its EBITDA margin as a result of the revolution of the early years and the current tensions in the country.

"Nevertheless, the group remains confident about the evolution of the Egyptian market in the medium and longer term and its ability to fully benefit from its growth," said Vicat.

The West Africa and the Middle East is the second area of ​​the group behind France in terms of sales.

Before these announcements, the action Vicat finished down 2.83% to 46.80 euros in a market down sharply, giving a market capitalization of 2.10 billion. It falls 25% since the beginning of the year, after winning 6.3% in 2010.

This device limits the job creation, says the union's No. 2, Laurent Berger.

Lawrence Berger, the national secretary of the CFDT for Employment, on Wednesday asked the government to remove "the tax exemption of overtime", claiming that this "limited job creation." "If the government really wants to support employment without having to generate means, he returns at least on the tax exemption of overtime rather than revel in its success," said union official in an interview with Les Echos.

According to Lawrence Berger, "this measure is certainly against-productive because it limits job creation. And individually, it is not decisive for the extra purchasing power of employees concerned."As is to be announced Wednesday the number of jobseekers registered in June, Laurent Berger said that "in addition to its level, nature of unemployment is alarming." "The slow recovery is the precarious, with an increase in short-term contracts and little long-term job creation," he added.

He urged the government to "adapt its policy" against a "trend, the maintenance of high unemployment and rising job insecurity." The CFDT also calls for a responsible means of enhancing employment center and a change in its governance. "We must give place to the social partners by strengthening the powers of the board," he pleaded. Lawrence Berger said he also had to "mourn the single business, the idea that each agent (of employment center) can handle either support or compensation."

Eight European banks have failed the stress test that would evaluate their response in the event of a prolonged recession, said Friday the EBA.

These reviews, which did not take into account the hypothesis of a defect in Greece, were conducted on 90 banks and forced the banks to deliver their anticipated results, to include depreciation in their bond assets and a subsequent rise their funding costs.

They found that banks that failed were in need of 2.5 billion euros in fresh capital, much less than anticipated by most analysts.

Five Spanish banks, two Greek and one Austrian were unable to overcome the hardest scenario.The markets were expecting 5 to 15 banks fail and they need to agree on 10 billion euros.

In the wake of the publication of these results, following the closure of European markets, the euro hit a session high against the dollar while Treasuries erased losses and went up.

"With only eight banks that fail, and the need for these banks to raise 2.5 billion euros of capital, it is not the solution if we are to restore confidence," said Michael Symonds, credit analyst Daiwa Capital Markets in London.

"What we needed was to see more banks fail and have to eventually raise more capital."

"That said, I do not think people really expected such a result.But the remedy for the broader malaise sovereign debt / bank in Europe must do more than simply injecting new capital into banks of Europe. "

To pass these tests, banks had to overcome an adverse scenario and come out with a hard capital ratio above 5.0%.The scenario in question provided a collapse of equity markets, bonds and real estate during a recession of two years.

In addition to eight banks that have failed these tests, 16 have succeeded only just.

"The European Banking Authority also recommended that national regulatory authorities that all banks whose capital ratios are above but close to 5% and have significant exposure to government bonds, making the decisions necessary to that 'they reinforce their positions, "said the EBA.

FAILURE NOT GREEK simulated live

The banks that failed now have until September to detail how they intend to close their deficit in equity, while their governments must be prepared to intervene with public funds if needed.

"The results of stress tests show that European banks are stronger and better able to withstand shocks," responded the European Commissioners for Internal Market and Economic and Monetary Affairs Michel Barnier and Olli Rehn in a joint statement.

The operation is not without detractors.These emphasize the absence of the hypothesis of a failure, even partial, of Greece, resulting in heavy losses for the French and German banks.

The BEA did not impose on banks a discount on long-term sovereign debt they hold, but asked them to consider the impact on their holdings of a lowering of the sovereign rating four notches, which reflect the failure of a country already rated poorly, such as Greece.

Under the plan, banks would suffer a 15% discount on the Greek paper they hold.Most experts believe, however, that market is expected that these shares lose 50% of their value.

FLIGHT OF SPREADS

The fear that the Greek crisis spread to Spain and Italy did fly the rate of return on the debt of these two countries and their banks.

Fearing that European banks are not strong enough to cope with such a contagion, the markets have driven down to the lowest in two years.

This series of tests is the third-and most rigorously conducted in European Union since the global financial crisis opened four years ago.

Tests conducted last year had presented the Irish banks as strong, just before they collapse and do not force Dublin to nationalize while demanding a European aid.

Several banks failed tests had already started the sale of assets to strengthen their capital base.

The Austrian Volksbanken Thursday had sold its subsidiary in Eastern Europe, VBI, in the Russian Sberbank.

The same day, the Greek EFG Eurobank announced to be in talks to sell a majority stake in its Turkish subsidiary Eurobank Tefken.

Initially 91 European banks should be subject to testing, but the German bank Helaba was ultimately not taken part in the exercise.

The overall business climate in France remained stable in June, the improvement in the industry offset a slight decline in retail trade while services remained unchanged, according to the monthly business survey released Wednesday by the INSEE .

The synthetic indicator of business climate in manufacturing industry increased by 3 points to 109, compared to the previous month which was revised down from one point to 106 against 107 initially.It fits over the long term average (100).

Nineteen economists surveyed by Reuters on average expected a pointer to 106, with estimates ranging from 105 to 107.

The turning point indicator is progressing and is now in the area indicating a window of opportunity.

The indicator of business climate as a whole, including services, construction, wholesale and retail trade, is stable at 108.

The turning point indicator is down slightly but is still well in the area where it is favorable for over a year and a half.

The service indicator remains at 107, the turning point indicator decreasing slightly in passing zone of uncertainty.

ING said on Monday it was seeking to sell its car leasing ING Car Lease, confirming a report in Dutch newspaper Het Financieel of Dagblaad evoking a transaction of four billion euros.

Car leasing division of Dutch financial services group is not on the list of possible disposals as part of the restructuring of ING agreed with the European Commission in return for financial rescue of 10 billion euros, the group has benefited 2008 from the Dutch state.

"ING confirmed today that it is reviewing its strategic options for ING Car Lease, including discussions with third parties interested in a possible acquisition", said the group in a statement.

ING declined to give financial details, saying simply that the subsidiary employs 1,200 people in eight European countries, and it handles 240,000 cars.

According to the newspaper Het Financieel Dagblaad, competitors ING Car Lease – including Arval (BNP Paribas, Athlon (Rabobank) BMW-Alphabet, Leaseplan (Volkswagen) and GE Fleet Services – were approached by ING to discuss a transaction.

Last week, ING has agreed to sell its U.S. online banking at Capital One Financial to nine billion dollars (6.3 billion euros).

The Tokyo Stock Exchange closed lower Friday, caution due to the Greek situation prevailing over the good effect of the rebound on Wall Street yesterday.

The Nikkei lost 59.88 points (0.64%) to 9351.40 and down and the threshold of support from 9400, while the Topix, broader, sold 7.07 points (0.87% ) to 805.34.

Over the whole week, the Nikkei 1.7% yield.

The Nikkei was mainly varied between 9400 and 9800 in April and analysts believed that this range would take in the coming weeks since the shares listed on Tokyo to deal with around book value, while the values ​​of the U.S. index S & P 500 is around 2.1 times that value.

The fear of higher taxes in Japan also contributed to the anemic market.

The press reports that the Democratic Party in power take account both income tax and corporation tax to finance reconstruction after the earthquake of March 11.

While Prime Minister George Papandreou is expected to announce a reshuffle, 35 Socialist deputies called for a crisis meeting, amid popular discontent against austerity. Brussels calls on Europeans to overcome their differences for financial assistance to the country. Prime Minister George Papandreou announced Thursday, June 15 that he would form a new government, amid popular discontent against austerity.

Two members of the Greek Socialist Party to power, Pasok, submitted their resignations Thursday of parliament, while a government reshuffle would be announced that day by the Prime Minister, George Papandreou. The resignations came a day after the failure of Mr. Papandreou to form a national unity government with the right to get new austerity measures, amid strong protests from both the street and within the Socialist Party.

The two members must be replaced by two Socialist deputies, according to parliamentary regulations, the majority Socialist remaining 155 seats on a set of 300. This statement is crucial, the prime minister, backs to the wall, trying to pass a budget bill over several years of austerity, considered essential to obtain new funding in the euro area and the IMF.

Thirty-five Greek Socialist deputies, over one-fifth of the parliamentary group of the government majority, have therefore requested a meeting "immediately" in their group. The collection of signatures continued in the group of PASOK to support this request, according to media reports. Several of the signatories paraded before the cameras Thursday of Greek media to denounce "a lack of power" and a lack of coherent policy.The collection of signatures continued in the group of PASOK to support this request, according to media reports. Several of the signatories paraded before the cameras Thursday of Greek media to denounce "a lack of power" and a lack of coherent policy.

European Commissioner for Economic Affairs, Olli Rehn on Thursday called the euro area to overcome their differences on how to help Greece, with the goal of having an agreement on a new rescue plan July 11. The ministers, already met in Brussels on Tuesday, had failed to agree on how to involve banks, insurers and other private creditors of Greece to a new plan to help after the 110-billion euros over three years set up last year.

They meet Sunday and Monday in Luxembourg, where they "discuss the content and conditions of a new program for Greece, and the nature of the private sector with the aim of making decisions at the next meeting of Eurogroup July 11, "said Mr Rehn.

U.S. stocks finished higher Thursday after six consecutive sessions of decline in favor of a reduction in surprise trade deficit of the United States in April.

The Dow Jones gained 0.63% or 75.42 points to 12,124.36 points.The Standard & Poor's 500 broad, took 0.74% (9.44 points) to 1,289 points while the Nasdaq Composite Index has advanced by 0.35% or 9.49 points to 2684.87 points.

The jump in U.S. exports, glimmer of hope after a disappointing set of statistics these days, allowed to overshadow the release of a surprise increase in jobless claims last week.

Investor sentiment remains fragile and many analysts expect a further decline in the S & P 500, which has already lost 6% of its previous six meetings to signs of slowing U.S. economy.

The index could come and test an area of ​​support around 1,250 points, near its low point in March 2010, according to analysts at Brown Brothers Harriman.

Values, Texas Instruments gained 0.7% to 32.91 dollars. The telecoms equipment maker has yet announced Wednesday a downward revision of its projected revenue and earnings per share for the second quarter, putting it down to the loss of activity with a major mobile client.

In this context rebound, the CBOE volatility index, also called the fear index, fell 5.48%. This is the biggest drop since March 21.

The efforts of China to strengthen its banking presence abroad have effects limited to significant costs, which began to attract criticism.

Driven by record profits and increasing capital reserves, giants like state that Industrial and Commercial Bank of China (ICBC) and Bank of China extend beyond China's borders through acquisitions and partnerships, what analysts describe as unnecessary and risky adventures.

ICBC, the largest bank in China and around the world by market capitalization, announced last week it had received approval to open a branch in Bombay, becoming the first bank in mainland China to enter the Indian market.

This operation succeeds the redemption in January 80% of the activities of Bank of East Asia to the United States, and redemption in 2008 of 20% of Standard Bank Group, the largest bank in Africa, to $ 5.6 billion .

ICBC has also opened five offices in Europe since the beginning of the year and has taken steps to open one in Peru. In April, its chairman Jiang Jianqing said the group expects to achieve 10% of its profits abroad by 2016, against 4% today.

Bank of China has for its 711 branches abroad, most recently having been opened this month in Cambodia.In other countries where it does not own branch – Oman, Ghana, Peru and the United Arab Emirates – has installed ATMs in local bank branches.

BARRIERS

In developing overseas, Chinese banks are seeking to meet their expatriate customers but also to take part in the dance of mergers and acquisitions and financial instruments to offer yuan.

But according to analysts, this is a costly distraction while their resources could be better used to serve a booming domestic market.

The return on investment of ICBC and China is about 22%, whereas it leveled off around 14% in its overseas operations, according to Barclays Capital.

Chinese banks have a "fantastic market which is huge, untapped, under-penetrated," said Charles-Everard de T'Serclaes, from JP Morgan. "They can continue to create value for their shareholders for the next 10-20 years without doing anything special."

For Chinese banks, "there is a dimension of prestige to having offices in London and New York," said Michael Pettis, finance professor at Peking University.But faced with U.S. and European banks, sophisticated and well anchored, "it will be difficult for a time, be competitive, except in price – by offering loans at interest rates very low."

Incursions by Chinese banks abroad are also closely monitored, is often perceived as political attacks.

China Minsheng Bank, for example, bought 10% of the San Francisco bank UCBH for $ 96 million in 2007, but was refused by regulators when it wanted to increase its stake beyond 50% .

"Especially for banks when it comes to making acquisitions in the U.S., there are many policy and regulatory barriers," says May Yan, an analyst at Barclays. "Therefore they are more active now in emerging markets."