The ECB tries to curb the contagion in the euro zone

The European Central Bank (ECB), despite her savior. The guardian of the euro is forced on Monday to intervene in markets to prevent contagion from the crisis of debt to two heavyweights in the euro area as are Spain and Italy. As she had said on Sunday, she started to redeem debt securities of these countries at the opening of stock exchanges in order to lower interest rates.

The effect of this action, has long been demanded by the markets was immediate. At 9:15, interest rates fell back to 10 years at 5.417% against 6.189% Friday. The cost of credit to ten years on the Spanish debt followed the same path, to 5.285% against 6.271% at the end of last week. The agents of the ECB "operations are 20 to 25 million euros over the entire market.We expect that interventions will reach one billion in the order of the day, "said one trader.

For now, the ECB does not need to intervene heavily to turn the trend. "The rates were very high last week, there was little trading volume. So when the ECB came into action, it does not take much to return to the market, "said Cyril Beuzit. "If this continues, the ECB would have to increase the volume of its purchases until the States of the euro take over, to the best end of September."

If the ECB has reluctantly restarted its buyback program, it is against the involvement of European capitals to accelerate the implementation of the reform adopted at the last summit in late July fast cash loans. Friday night, Rome decided to accelerate its austerity plan.The ECB have also sent a list of conditions to the Italian government to help him. Sunday, Paris and Berlin and had to reaffirm that States would take over from the ECB by the end of September. At that time, the new version of the European financial stability to intervene in the markets, should be passed by national parliaments. In the best case.

Divisions within the ECB?

"Certainly, the markets will test the will by then the ECB warns Cyril Beuzit. We think it may surprise by intervening massively, even if the tools are not cut out for that. "Still, the central bank is torn internally. Thursday, representatives of the Netherlands, Finland, Austria and Germany at the ECB executive board voted against any intervention in favor of Italy and Spain.

Sunday's decision has probably not been taken unanimously, advance Gilles Moec economist at Deutsche Bank: "It depends how far the opponents of the ECB are ready to go. If they are ready to submit their resignation in the balance, and only in this case, the lack of unanimity may be a problem. "Considered a risk, however small the economist.

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Obama gives assurance on Wall Street

The speech Barack Obama optimistic on economic prospects of the country begins to lighten the mood in the U.S. markets. The stock market indicators began to return gradually in the green, particularly reassured by the employment figures. At 18:50 Paris time, the Dow rose 0.89% to 11,485 points and the S & P gained 0.60% to 1207 points, the Nasdaq remains hesitant, remaining balance (0.02%) to 2256 points.

U.S. markets also appreciate the market rumors to the effect that the European Central Bank is ready to support the Italian and Spanish bonds, if these countries to undergo structural reforms.

The employment figures dictate trend

The announcement of a significant improvement in job creation last month seems to calm the situation on Wall Street Friday after a collapse in U.S. up over 4% yesterday.In recent weeks, disappointing publications on the state of the U.S. economy had, in fact, chained, challenging the idea of ​​resumption of the world's largest economy. This publication confirms the figures released Wednesday by ADP, reports of more new jobs than expected for the month of July.

At 21 hours the numbers of U.S. consumer credit for the month of June will end this week full of macroeconomic data.

Oil and euro pressure

Oil prices climbed hesitantly at the opening Friday in New York, despite the employment figures better than expected, as the market wondered if it would be sufficient to support the demand for crude in a very fragile economic environment .On the New York Mercantile Exchange (Nymex), a barrel of "light sweet crude" for September delivery was trading at 87.04 dollars, up 41 cents from the previous day.

This concern also weighs on the currency front, the euro was trying to rebound against the dollar but remained under pressure from macroeconomic concerns.To 15 hours in Paris, the European currency was worth 1.4224 dollars against 1.4106 dollars on Thursday night, after falling to 1.4055 dollars in early Asian trade, its lowest for three and a half weeks instant payday loan.

AIG, GM and Procter & Gamble publish their accounts

On the corporate side, the semi-annual publications still dominate the news on Friday.

Thursday evening after market, the insurer AIG (-0.23% to 26.34 dollars) announced a return to the green of its accounts in the second quarter, with net earnings of $ 1.84 billion over the period, against a loss of $ 2.7 billion a year earlier. Per share, net income totaled $ 1 ($ 0.69 after tax, against $ 0.92 expected by analysts).

At the same time, and its first quarterly since its IPO on May 19, LinkedIn (-2.27% to 93.36 dollars) was positively surprised markets by announcing a turnover more than doubled the second quarter to 121 million dollars (120 euros) and net profit (4.5 million), where analysts expected a loss.

GM Motors (1.27% to 26.32 dolars) Thursday reported quarterly results exceeded expectations, with a near doubling of profits over the period.

Procter & Gamble (1.78% to 60.64 dollars) released before market on Friday for the fourth quarter of fiscal offset, net income up 15% to $ 2.51 billion.Of 2010-2011, so it shows a net profit of 11.79 Annual Statement billion, down 7% from the previous year.

Viacom (3.55% to 53.17 dollars), the parent company of MTV and Comedy Central, has reported a rise than expected in earnings thanks to strong revenue growth in advertising Cable and license agreements with websites. Its quarterly results (Q3) increased to $ 574 million against 432 million

Bank of America (1.70% to 8.98 dollars) is highly exposed to the most fragile countries in the euro zone, according to a document from the bank. The group said exposure to the tune of $ 16.7 billion (11.8 billion euros) in total to Greece, Ireland, Italy, Portugal and Spain in June 30Management has indicated in a document submitted to the regulatory authorities that its losses could reach up to legal $ 2.3 billion in addition to the provisions already passed for this purpose.

Air France: conflicts threaten three departures on holiday

While looming two weekends among the busiest in passenger of the year, Air France warned of now-already-and its passengers that they may have to be patient. If the airline has reached an agreement with the seven unions of Stewart and hostesses, thus avoiding a first strike scheduled for July 29 and August 1, she still faces other threats to social movements.

Two pilots notice

The first is the drivers. Tuesday, three minority unions – the SPAF, the Alter and R'Ways – have in fact filed a strike notice for the same July 29 to August 1. As the crew before them, the drivers are protesting against the offensive "anti-low cost" Air France plans to launch in its databases province. The new operation is expected to result, according to the drivers, an increase in the number of hours worked and trips a day.

For now, this movement somewhat worried the company, which does not anticipate any disruption in traffic this particular weekend. She feared much more the second notice, filed for the weekend of August 5 to 8, by the powerful pilots' union SNPL. Especially since the solutions to this conflict then escape it, since it is the government that is directly targeted. The pilots claim in fact the culmination of the reform of the Pension Fund of seafarers, which began three years ago. This morning, Labour Minister Xavier Bertrand told Europe 1 radio he was "hopeful" of finding a solution to the conflict. A mediator was appointed in early July to resolve this issue, which divides pilots and cabin crew.Raphael Hadas-Lebel, who assumes the function of mediator in addition to the Chairman of the Board of Retirement Guidance (NRC) "shall make its findings in the coming hours," said Xavier Bertrand this morning payday loans for bad credit.

The mechanics harden the tone

But at the same time, the management of Air France must also manage a third conflict, less publicized than those of pilots and aircrew, but highly impacting: some 4000 engineers responsible for maintenance of 260 units of the company practice of walkouts, for seven weeks.

If the company minimizes the facts explaining that stoppages of one or more hours that are 50 to 100 people, the impact on traffic is nonetheless real. According to Le Parisien, Aujourd'hui en France, long flights and medium-haul flights from Paris-Charles de Gaulle accuse each day delays of 15 to 20 minutes.Management also recognizes that it is obliged to postpone the launch of a two-plane in the evening to morning. Orly airport and Toulouse are also affected.

And before the stalled negotiations on wage demands, the engineers are threatening to get tough tonight at 22 hours. "Delays are possible and we do not exclude some cancellations," said Air France AFP. Alert bulletins on traffic conditions are published to the attention of travelers on the website of the company.

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Harry Potter translated into Tibetan desperately seeking sponsors

Norgy Puchunggal, head of the drafting of the Tibetan Youth Newspaper, fell in love in 2003. He spent two years translating into Tibetan Harry Potter and the Sorcerer's Stone, then a year for the second novel, Harry Potter and the Chamber of Secrets. At 40, he now attacks the other five volumes.

Not only did his translations were not reported, but it was found that in cities of Tibet parents are not interested in novels translated because they have nothing to do with the studies their children. In the country, the price of these books, 28.8 yuan (about 3 euros), making them inaccessible. So, Norgy Puchunggal, which has partnered with the Youth Foundation of Tibet desperately seeking sponsors to distribute free Harry Potter.

The apprentice sorcerer and his magic wand would they hear? The Commission for Banking Supervision in China has given the green light to the creation of a regional bank in Lhasa, with a capital of 1.5 billion yuan (161 million), funded by the regional government institutions and fifteen including several major public and private companies. Just now the spell.

Greece: The judge left with insufficient

In general, policy makers and global economic welcomed on Friday the new aid package of nearly 160 billion euros to save Greece. In France, François Baroin, the Minister of Economy, and Valerie Pécresse, his counterpart in the Budget, were the first to emphasize the benefits of the plan this morning on RTL and RMC, respectively. It's then Prime Minister, Francois Fillon, who returned on the details of the agreement, and most importantly, who has estimated the cost to France at 15 billion euros. All three said they were very satisfied with this plan. But French opposition, meanwhile, remains critical.

• François Hollande (PS) The socialist candidate for president in 2012 called Friday for "late and poor" the new plan of aid to Greece, even if deemed "necessary."At the micro de France Info, François Hollande spoke of "relief": "The markets for some time will be appeased, especially since it is the States that will make the main effort." However, it refrains from any "complacent", saying the plan is insufficient. He deplored, among other things that the tax credit was set aside.

• Martine Aubry (PS) Another presidential candidate, former secretary of the Socialist Party also welcomed an agreement has been reached. But the problem is "whole" in terms of "building the government of the euro," she said in a statement. Thus, "Europe has risen almost a disaster: the collapse of the single currency by lack of political action against speculation," says she. Before qualifying as "unacceptable" that "the rating agencies weigh so much on the choices that affect half a billion people."And reiterates its desire to create a tax on financial transactions.

• François Bayrou (Modem) – The plan "will not" slammed the president of the Democratic Movement. He sees in this agreement a lifeline intended to give "relief to the Greek government." To him, other crises will undermine the euro area. It regrets in particular that the measures adopted to reform the banking sector of Athens were not extended to other members of the euro area. Before you lament that "the rules and structures of defense systems of the European currency" has not been established.

• Arnaud Montebourg (PS) – The agreement "will likely relieve pressure and gain more time," said the PS deputy and president of the General Council of Saone-et-Loire. It considers, however, that this plan is not a solution as "effective and fair" that he should have been.Among other things, he accuses him of "load" European taxpayers by saving the banking sector.

• Marine Le Pen (FN) The leader of the Front National sees in the plan a "very bad news." "Another 109 billion euros of public money spent for nothing," she exclaims, lambasting a euro area "already bankrupt." And renew its desire for a "concerted output of the euro", since the plan "sign the stubbornness of the ruling caste to want to save at least one euro become synonymous with debt, unemployment, and insecurity", asserts she said.

• Jean-Michel Baylet (PRG) – "The measures taken to stop midstream." But esteem is what the president of the Radical Left Party (PRG) in a statement Friday morning. If he sees in "solidarity with Greece" a "necessity", Senator regrets measures "purely technical"."Above all, the vicious circle of speculation is not stopped," he supports, before advocating "a tax on financial transactions of sovereign debt across the European continent."

• Pierre Laurent (PCF) – a decision that "protects the interests of major creditors, banks and insurance companies, and speculators." The national secretary of the PCF has blasted the new plan to help. "The relaxation of systems refinancing and redemption of public debt will not illusion," he criticizes in a letter to AFP. "The risk of widespread collapse of the system is real.The role of the European Central Bank is not redirected, hedge funds are not taxed, the idea of ​​a tax credit is abandoned, "he recites.

• Nicolas Dupont-Aignan (DLR) to the President of the Republic and Member of Standing of Essonne, the "arsonists" played with "firefighter" for "attempting to deceive public opinion still." He sees in this agreement that a "large patch", which "is a little more into debt without the French helping the Greeks." For him, "the cause of the collapse of the economies of south of France" is by no means settled.

Internationally, the reactions are positive

• Philipp Rösler (German Minister of Economy) It expressed satisfaction on Friday, the summit of the eurozone. But he warns that secondary market purchases by the European Financial Stability (EFSF) should be strictly controlled.He recalled that it is one of the cornerstones of the agreement announced Thursday, to the extent that it must allow support of Greece while avoiding spread of the crisis to other economies in the euro area.

• Jan Rostowski (Polish Minister of Finance) He also welcomed a "step in the right direction." "For the first time in years the euro area began to anticipate events," he adds in a micro national radio. Now, even if the rating agencies formally declared insolvency of Greece, "the problems of Athens, Ireland and Portugal are sufficiently well resolved so that it does not spread to other countries," he said.

• Evangelos Venizelos (Greek Minister of Finance) At a press conference Friday morning, the Minister welcomed an agreement that in his view a "great relief".For him, the country's banking system is so "guaranteed and insured." In addition, Evangelos Venizelos welcomed the emergence of a "European meeting" in his view, the decisions of the euro area provided a "clear and precise solution" against "asymmetric warfare [...] between the European Union and the markets. "

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In China, inflation still climbing

The Chinese inflation beating record after record. In June, the price index reached a new high for three years, to 6.4% yoy. A figure up sharply from the month of May, when inflation was already high, however, to 5.5%.

This increase is mainly the result of rising food prices. After droughts and floods that have occurred in China in the spring, the cost of power has indeed increased by 14.4% in June over a year. Pork, the first meat consumed in the country, even took 57.1%, said the National Bureau of Statistics (NBS).

Faced with the risk of social tensions generated by the rising cost of living, the Chinese government has done since the fall of 2010 the fight against inflation its top priority in economic matters.The central bank has already raised five times the interest rates since last October, and nearly ten times the rate of reserve requirements for banks, hoping to slow the pressure on prices. As a result, the volume of lending has slowed, and China's economic growth begins to suffer from these austerity measures. In the first quarter, it has reached "only" 9.7%, after 10.3% in 2010.

The tax threshold raised

If inflation remains particularly high, many analysts believe it has reached in June, its highest level. The figure published on Saturday morning is indeed partly the result of the recovery policy conducted by the Chinese government during the crisis, when control measures against inflation for their part have not yet produced their full effect."The rise in prices should slow down continuously from June to between 4% and 4.5% by the end of the year and remain at that level for several years," predicts and Lu Ting, an economist at Bank of America-Merrill Lynch in a statement.

The Chinese government had already announced in June that the goal of a previously displayed inflation contained below 4% in 2011 would not be attainable. Beijing should try to stick to a figure of 5%. Until such a slowdown, the tax threshold will be raised in the country from 1 September to restore purchasing power to lower classes. The new tax threshold is now set at 320 euros monthly income.

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German banks at the forefront in Greece

If European leaders want to involve rescuing investors from Greece, they will have to negotiate primarily with German banks. They are in fact those who hold more government debt, amounting to $ 22.7 billion (15.5 billion euros), according to figures released Monday by the Bank for International Settlements. The French came second, with an exposure of 15 billion dollars (10.3 billion euros).

A total exposure of all European banks in Greece's debt stands at $ 52.3 billion (35.8 billion euros). By adding the two other countries receiving EU aid and the IMF, Ireland and Portugal, the figure stands at 100 billion euros. German institutions hold almost two thirds of this amount.

Particpiation private

Friday, EU leaders said they reached agreement on the extension of aid to Greece. About 60 to 65 billion euros that the new plan would cost a quarter, or 15 to 20 billion euros would come from the private sector. He would ask investors to reinvest in Greek debt money recovered when their bonds mature.

Such an initiative would demonstrate that participation in the effort from the private sector has been explored, "said Justin Knight, strategist at UBS AG, quoted by Bloomberg. "This could lead to voters to accept a new European public aid" to Greece business card. The Germans would, however, according to Die Welt, go further and require banks to extend loan periods, exchanging bonds maturing by other securities of a longer duration.

Default risk

However, "some sources suggest that asking banks to exchange the Greek bonds could trigger precisely a failure," says Luigi Speranza, an economist at BNP Paribas CIB. The rating agency Fitch estimates for its part in a note published Monday that even an exchange of debt on a voluntary basis, if it is unfavorable to creditors, may be considered a "credit event", ie ie a payment default.

In this context, EU leaders are walking a tightrope. Especially since the European Central Bank reiterated Monday his opposition to the restructuring of state debt. "Imposing a discount to private investors can seriously disrupt the real economy and financial creditor and debtor countries, has said Lorenzo Bini Smaghi, board member of the institution.Therefore a restructuring would be done as a last resort, that is to say when it is clear that the debtor country can not repay its debts. "

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Why the drop in oil is reflected at the pump hurt

As with every drop of crude on international prices, oil is accused of failing to pass the motion on the price at the pump. After soaring oil in April, hoping motorists in early May, quickly see the effect of receding oil prices on the invoice to the service station. He had to wait.

From May 2 to 13, the price per barrel fell from 125.85 dollars to 114.65 dollars in London. However, prices of MS 95 have fallen by an average of … zero cents, while diesel fell 3 to 4 cents in the period. Those are the findings of a study by the Directorate General for Competition, Consumption and Fraud published Monday.

Threats Bercy

This report, the Minister of Economy Christine Lagarde, the accuser is: he believes that dealers could have decreased the price of 6 cents per liter of SP95 and that 4 cents of diesel between April 2 and May 15 Given this apparent unwillingness, Bercy threat sector to impose lower prices.

In reality, it took until May 20 to observe the first tangible effects of the sharp fall in international prices of black gold. It has thus been two full weeks or 10 days, so that the prices displayed in service station finally decrease to the SP 95, 3.4 cents, to 1.515 euros per liter on average.

Operators have taken advantage of the ten days of falling oil prices to restore gross margins by not amending hardly prices at the pump. Immediate expense of consumers.According to calculations Figaro.fr this margin, which can amortize the costs of transportation and distribution, has in fact increased between the first and third week of May, the order of 2 5-3 cents per liter of MS 95.

Cushion the impact

If retailers wanted to restore their margins, it is because they were compressed during the surge in oil prices during the month of April and early May. "When prices at the pump exceed 1.50 euros per liter, operators tend to cushion the impact on the customer taking on them," says Jean-Louis Schilansky, president of the French Union of Petroleum Industries ( UFIP). So when crude prices went back down, "there was little effect of margin recovery," he admits.

The authors of the study reached the same conclusion, noting that before the falling price of a barrel in early May, traders will puncturing an unusually low margin per liter of MS 95. Namely between 8.3 cents and 2.1 for the majors cents for large surfaces. Still, oil has long been suspected to better pass on increases in the fuel decreases. As in this report INSEE dating from 2002, clearly titled: "The fuel price is more sensitive to higher rather than lower crude oil."

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Stock Exchange: luxury won by Hong Kong

"Asia, the Mecca of luxury groups. This could be the slogan applied to Gucci, Prada, Burberry, Hermes, Dior and others at the end of the financial and economic crisis that has shaken the past three years the global economy. For all these companies, if they were not spared by the crisis, have largely absorbed the shock by taking advantage of the growing appetite of Asian markets for luxury, chic, and know-how almost craft of some European countries.

This appetite, the luxury sector was well integrated, making the Asian market including China and Japan, their main growth drivers. For example, the French LVMH in 2010 from nearly 35% of its turnover in Asia (25% excluding Japan).In the first quarter 2011, excluding sales of the Japanese archipelago (affected by the tsunami on 11 March), billings Asian group Bernard Arnault grew 24% and 30% on the only Chinese territory.

Finally, by 2015, China should be the first global luxury goods market in all sectors according to consulting firm Pricewaterhouse Coopers. And to develop there, Western societies today are choosing bulk of trading in Hong Kong, the gateway to become known in China. "With its historical heritage, the Hong Kong is much more attractive than that of Shanghai, details of William Corbiac, emerging equities manager at Axa IM. It is much more liquid, accounting standards are long Anglo-Saxon, there are many financial analysts, fewer permissions and cheaper.In Hong Kong, Western investors feel almost like home. "

Making a name

This is the typical case of American Coach, specializing in accessories (shoes, bags, sunglasses, jewelry …) who announced in early May will be doubling its side by the end of the year, Stock Exchange of Hong Kong and its place of origin, New York. For all the luxury groups, for historical reasons or qualitative, not in Asia have the notoriety of LVMH or Hermes. The goal of Coach is clearly stated: "better brand awareness among consumers and investors in the Chinese market and throughout Asia," according to its CEO Lew Frankfort said in a statement.

This Friday, the luxury goods group Burberry has come to swell the ranks of contenders.Already present in London Stock Exchange, the British group would try to seek a listing in Hong Kong by Hong Kong Economic Journal, to "increase the interest of Asian investors."

The idea is not new. "Many Chinese entrepreneurial companies, including Internet companies and in renewable energy, are parties in the 2000s to seek a listing on Wall Street to take advantage of both technologies and to conquer the U.S. market, said William of Corbiac. We can now do the exact parallel with these Western groups visionary who want to be closer to the markets they want to grow cash advance loan no fax. " A listed company must indeed comply with the requirements of disclosure and / or related to its activity, which increases its exposure to the media and therefore the general public.What support development activity in new geographical area. A strategy that seems to have also adopted in another sector, BNP Paribas. Initially, the French bank will not undertake a capital increase at its eventual listing and just want to "enjoy a better visibility in China."

A significant influx of capital

But watch it only as a matter of image. For BNP Paribas may, in a second time, make an appeal for funds on the Hong Kong site, thus killing two birds with one stone. For their part, the intruding Western luxury brands in Hong Kong are also looking to take advantage of capital and investors who flock to this place. In 2010, according to data from PricewatershouseCoopers, nearly 45 billion euros have been raised, an increase of almost 80% over one year.And for 2011, the firm estimated 30 billion funds in Hong Kong through introductions. A total of one hundred companies are entering the stock each year, more than half are Chinese.

This is the case of the Italian Prada, which recently received the green light from authorities in Hong Kong market. Pending the final IPO price (June 16) and the introduction scheduled for 24 June, the Italian company hopes to raise about 2 billion dollars (1.4 billion euros). After three failed attempts, Prada therefore preferred to Hong Kong to Milan, saying "better" opportunities offered by the international capital market.

Before her, and with the same motivations, the French L'Occitane has chosen Hong Kong to make his first public offering, there is just one year.One way for the group operating on the cosmetics market is very dynamic in Asia and almost treated as a luxury brand, to raise 532 million euros. What repay debt and finance part of its development. This gamble on the brand image now appears successful, while Reinold Geiger, President of L'Occitane, explained that he initially had great difficulty to prevail in Taiwan and Hong Kong. And for investors who subscribed to the introduction, the operation has also been very positive, because despite the turbulent early sessions, the stock rose over 30% year on year.

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