Top Economics News

European shares lost ground Tuesday in mid-session, while Wall Street expected a slight decline in market weighed down by disappointing results considered and the fear absence of agreement on a new bailout of Greece.

The CAC 40 was down 0.49% to 3,388.68 points at mid-session, while the Frankfurt Stock Exchange yields 0.74%, 0.42% London and the Eurostoxx 50 declined of 0.54%.

Torn between the impatience of Europe and the exasperation of its people, Greek political leaders meet Tuesday in full general strike, to give their response to measures drastic demanded by donors of Athens.

Investors are also made them more cautious approach to the meetings of European and British central banks Thursday. 

"Investors have begun to lift a little from the base until the rate decisions of the Bank of England and European Central Bank (…) while Greece remains a focus of the market, "said Joshua Raymond at City Index strategies.

Side values, ArcelorMittal shows the strongest increase in the CAC 40 and Eurostoxx 50's, with a gain of 2.3%. The steelmaker has published the results meet expectations and be announced ahead of its goal of reducing its debt. Its subsidiary of stainless steel Aperam takes 8%.

UBS was down 0.9%. The Swiss group announced a net profit of 393 million Swiss francs for the fourth quarter of 2011, with a loss before taxes of CHF 256 million in investment banking and prudent for a speech Q1 euro zone.

The Swiss Swatch lost 4.2%, a victim of profit taking after the announcement of results in line with expectations for 2011 and a double-digit growth in demand for watches and jewelery in January .

Alfa Laval lost 8.9%, following orders and operating profit below expectations, mainly because of lower demand from shipyards.

In Paris, LVMH loses more than 3.4%, largest drop in the ACC. The title continues to be a victim of profit taking, just like Swatch, after his strong performance in 2011.

Lagardere lost 5.1% after posting a turnover of slightly worse than expected and have announced writedowns of about 900 million euros.

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.

U.S. inventories of crude oil fell against all expectations last week, said Thursday the U.S. Agency for Energy Information (EIA).

Crude inventories fell 1.37 million barrels to 338.09 million. Economists on average had expected a rise of 400,000 barrels.

Gasoline inventories fell 2.11 million barrels (consensus: 300,000), to 204.17 million.

The reserves of distillates, which include heating oil, fell by 6.02 million barrels (consensus: -2.0 million) to 135.87 million.

The rate of capacity utilization of refineries dropped 2.7 points to 82.6%.

Around 3:50 p.m. GMT, U.S. crude reduced its losses, yielding 1.3% to 95.80 dollars a barrel.

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.

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.

Industrial production in France rose by 0.5% in August after rising 1.8% in July, against 1.5% in the first estimate, show statistics released Monday by INSEE.

Manufacturing output, which is to say, but including non-energy food, rose 0.7% after rising 1.8% the previous month, against 1.4% initially estimated.

Economists polled by Reuters on average expected a 1% drop in industrial production in August.

At three months, "the production is increasing (2.2%) in electrical, electronics, computers and machines and relatively stable in the other positions," said INSEE said in a statement.

Parallel to the industrial sector, construction activity rose 3.2% in August after rising 0.3% the previous month, against 0.1% originally announced.

Preferred placement of French, has seen its Livret A collection rise sharply in July before raising his salary and in a context of concern related to the debt crisis, show figures released Tuesday by the Deposit and Consignment Office.

The collection of this tax-free booklet, identified more than 60 million copies by the end of 2010 the Bank of France, reached 2.07 billion euros last month, the highest figure for 11 months.

Its total assets has reached 207.5 billion euros.

The Handbook of Sustainable Development (LDD, former Codevi) has meanwhile seen its cash flows turn positive again, to 0.28 billion, after two months of outflows.

The pay rate of the Livret A is passed on 1 August from 2.0% to 2.25% under the rules in force since 1986 which provide an adjustment for changes in money market rates and inflation .

The previous increase, already a quarter of a point on February 1, had boosted the collection in January and February.

With these increases in pay, which keep it above the level of inflation, combined with the trend, observed since the 2008 crisis, friendly and non-risk liquid investments, including at the expense life insurance.

The Livret A have increased by 12.14 billion euros since the beginning of this year, an increase that exceeds already seven months, that of the whole of 2010 (10.1 billion). The collection of life insurance has decreased by 11% along the first half, to 69.3 billion euros, according to statistics from the French Federation of Insurance Companies (FFSA).

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.