Euro crisis summit in Brussels

EU summit, the first act. The leaders of the EU started in Brussels on Sunday morning a summit with the goal of trying to overcome their differences on how to stem the debt crisis that is destabilizing the euro area. The meeting began around 10:20. However, no decision is expected at the end of the summit of which the second act is expected Wednesday. This afternoon, the summit will continue with a meeting of Heads of State of 17 countries in the euro area.

Europe is facing economically to "serious challenges", said President of the European Union, Herman Van Rompuy, at the opening of the meeting. He believed that the decisions to be taken by European leaders to address was "perhaps the most important" they've ever had to face the financial crisis.Greek Prime Minister George Papandreou, also felt it was "time" to take "decisive and effective." "It is clear that the crisis (debt) is not Greek. This is a European crisis, "he judged.

German Chancellor Angela Merkel, however, dampened expectations about the outcome of the summit, from the outset, reaffirming that decisions could be taken next week. "For me it is important to reiterate that today we prepare the decisions of Wednesday" because the negotiations are about "subjects sometimes technically very complex, she said on her arrival in Brussels.

"You have to reassure the markets"

For its part, the Belgian Prime Minister Yves Leterme has tried hard not announce anything at all on Sunday, in light of market pressure."It is essential for tomorrow morning at the opening of markets, we have made sufficient progress so as not to jeopardize the credibility of the euro area," he said. Same story for the European partners have not adopted the single currency, which are concerned about the fallout from the debt crisis. "The crisis in the euro area is being extended to all our economies, including that of Great Britain ', launched the British Prime Minister David Cameron.

What response to the crisis the Europeans do they negotiate? This response is intended in three stages. It must first stabilize the over-indebted Greece and save him a total failure. This will require further international loans and losses of creditor banks in the country. Europe the figure to at least 50%.According to the report of the troika (representatives of the EU, the ECB and the IMF), the discount should be 60% to maintain unchanged the envelope of € 109 billion promised to Greece, as part a second rescue plan officially recorded on July 21 payday loans for self employed. "We remain willing to explore options on a voluntary basis [for each facility, Ed] and realistic prospects for the economy of Greece and the return of that country on the capital markets," said Charles Dallara Saturday night , the president of the Institute of International Finance (IIF), which brings together major global banks.

In return, a bank recapitalization is provided. Countries of the European Union discussed a budget from 107 to 108 billion euros at the meeting of finance ministers on Saturday night. Remains to define the terms.

It will also strengthen the Fund's financial assistance for the euro area countries in difficulty, the EFSF, firewall against the contagion to Italy and Spain. But differences remain on how to do this, especially between France and Germany. Yesterday, the French proposal to grant a banking license in EFSF was discarded. Only two options are being discussed to increase the firepower of the device: the mechanism acts as a partial insurance of the public debt of troubled countries or the IMF is expected to increase its participation in the scheme.

European governance side, Angela Merkel reaffirmed that a "change treaty should not be taboo", to improve fiscal discipline among member countries of the EU. The topic will be on the table at the summit today.Yesterday, the German foreign minister, Guido Westerwelle, proposed to bring in the future before the European Court of Justice countries too lax on the budget in the euro area through a revision of the Treaty of the European Union. In addition, leaders should appoint Herman Van Rompuy, the EU president, as head of the eurozone, according to a draft final declaration obtained by AFP.

For the summit this Sunday, German Chancellor and French President had also met Saturday night to try to resolve their differences, following a meeting of EU finance ministers. They both welcomed the "progress" and "advanced" made in the negotiations.

(With agencies)

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Action Housing continues the state court

Having long raged about the punctures of the State Budget, Action Housing, the former 1% housing, just go on the offensive. Reportedly, the joint body attacked last Friday before the Paris Administrative Court of the State's decision to withdraw 3.7 billion euros between 2009 and 2011. These funds are used to finance the Anah (National Housing) and ANRU (National Renewal). "We made an informal appeal with the government against the decree fixing the puncture but we never received a reply, said Jean-Pierre Guillon, Chairman of the Supervisory Board of Action Housing. We decided to attack the government for abuse of power. "

Smart devices

If Action Housing is the case in court today is with an idea behind the head.Last July, the government has said that he would collect 3.25 billion euros over the period 2012-2014. To sweeten the pill, the Secretary of State for Housing, Benoist Appeared, has committed to implement clever financial engineering to boost the cash flow of Action Housing. "But we have no documents indicating that commitment forward Jean-Pierre Guillon. If the minister changed, the following may not feel bound by that promise. "More generally, Action Housing, which collects 0.45% of payroll companies, believes that this aspiration will prevent it from fulfilling its mission . For example, he does not see how it could fund 45,000 homes for young people as he had promised a few months ago.

With this lawsuit, it seeks to pressure the state to be released in the coming weeks the decree laying down the drain of 3.25 billion between 2012 and 2014.

Meeting in Greece: the Nikkei rebounds

In the wake of Wall Street, Asian stock markets have recovered what color jeudi.L all the places welcomed the determination shown by German Chancellor Angela Merkel, French President Nicolas Sarkozy and Prime Minister of Greece George Papandreou at a meeting telephone Wednesday night, to get out of Athens crise.Après have closed down the day before, and the Nikkei gained 1.48% to 8644 points at a time of closing.

Investors seem so, for now, somewhat confident about the ability of the euro area to help Athens to avoid bankruptcy the country. Wednesday night, the Franco-German and was convinced "that the place of Greece is very much in the euro area."But on one condition, also very explicit: "The implementation of strict and effective recovery program of the Greek economy supported by the countries of the euro area and the IMF and which conditions the disbursement of future tranches of the program. "George Papandreou was quick to deceive, confirming" the absolute determination of his government to take all necessary measures to implement all commitments. "

More good news, the Brics (Brazil, Russia, India, China and South Africa) announced Wednesday that they could increase their holdings of bonds denominated in euros. Thus, Brazil was prepared to participate in a "global effort" against the economic crisis that affects rich countries, said the same day the President of Brazil Dilma Rousseff.Meanwhile, Italy, whose rates have soared during bond, has denied media reports that she would have asked China to invest in debt.

Oil continues to fall

Japanese banking stocks and welcomed the ads. After being jostled by the market and Mizuho Financial Group rose 0.90% to 112 yen and Sumitomo Mitsui Financial Group 1.06% to 2094 yen.

Other Asian stock markets follow the upward trend of the Nikkei. The Hang Seng Index of Hong Kong Stock Exchange rose 0.47% to 19,134.45 points, the Kospi index in Seoul Composite climbed 1.12% to 1768.75 points. The S & P / ASX index in Sydney rose by 0.74% to 4035.40 points, the FTSE Straits Times of Singapore appears an increase of 0.56% to 2754.58 points.In contrast, the Shanghai Composite Index down 0.02% to 1484.45 points, like the BSE Sensex 30 Index of Bombay, which was down 0.39% to 16,643.70 points.

On the foreign exchange market, the euro appears down 0.16% to 1.372 dollar on Thursday. In turn, oil prices continued to decline in Asia, after figures showing a decline in demand for refined products in the United States, and while the markets remain worried about the situation in the euro zone, analysts said . In early electronic trading, a barrel of "light sweet crude" for delivery in October lost 43 cents to 88.48 dollars per barrel of Brent North Sea crude for October delivery 53 cents to 111.87 dollars.

The Asian market in the dark red

Asian operators in turn penalize the poor performance of U.S. jobs. On Monday, the major exchanges in the region are in the red on Monday, after falling more than 2% on Wall Street Friday and that of almost 4% in Paris. As elsewhere, the Asian stock markets suffer from fears of recession in the United States. The U.S. Department of Labor has announced Friday that the U.S. economy has not created any jobs in August, while analysts were hoping 70,000 net new hires. The ministry said the unemployment rate held steady in August at 9.1%.

In Japan, the Nikkei started the session on a drop of 1.37%. An hour of closing, he gave up 1.86% and sinking below the threshold of 9000 points to 8784 points. In Hong Kong and Shanghai stock markets lose respectively 2.17% and 1.63%.The Korean Kospi fall more heavily to 3.21% while the S & P Australia fell by 2.30%. The Indian Sensex lost 1.18% in turn.

Financial and technological attacked

As for values, the indices in the region are pulled down by the financial sector. In Tokyo, Nomura Holdings (-4.64%), Mitsubishi UFJ (-2.34%) and Shinsei Bank (-4.55%) decline severely. In Sydney, Macquarie Group (-3.70%) and Westpac Banking (-3.12%) drop. In Hong Kong, HSBC Holdings lost 2.23% and -1.69% Bank of Communications.

Similarly, the technology sector is affected by fears of a slowdown in global demand. In Japan, TDK lost 3.84%, 4.39% Fujitsu, Ricoh and Sony 4.42% 3.69%. These latter values ​​are also impacted by a still too strong yen against the dollar. In Korea, LG drops 3.7% while Hong Kong, Lenovo lost 2.46%.

Oil down

Oil prices were also misguided Monday morning in electronic trading in Asia, depressed by the poor figures on employment in the United States. In morning trading, a barrel of "light sweet crude" for delivery in October lost 59 cents to 85.86 dollars per barrel of Brent North Sea crude for October delivery 74 cents to 111.59 dollars.

In Australia, the energy sector is penalized. Santos lost 4.92% and 4.32% Oil Search.

Irene would cost tens of billions

The bill may be steep Irene. The governor of New Jersey, Chris Christie, has evaluated this Sunday on the NBC television network damage caused by Hurricane "billions of dollars, even tens of billions of dollars." According to an alternative estimate delivered by the consulting firm Kinetic analysis, the hardware cost of this storm is expected to rise between five and ten billion dollars, most likely around seven billion. Just to the North Carolina and South Carolina, two states already affected by the hurricane, the amount of losses expected to reach between 200 and 400 million.

Above all, this damage should be responsible in large measure to the State, businesses and individuals, when insurers should take on a lesser share of the burden, said Chuck Watson, one of the leaders of Kinetic Analysis told AFP."Most of the structural damage will be caused by the rising water because of rain and coastal flooding. Yet this type of damage is not covered by private insurance, "said he.

The same applies to losses caused by the cessation of activity in areas relevant to the coast, or the cost incurred by the evacuation of hundreds of thousands of people payday loan lenders. Thus, New York, usually hectic, has been transformed this weekend into a ghost town, most shops have closed up shop and residents have been urged to stay home. But there is no damage reported, insurance should not pay a dime to compensate their members.

Insurers expected to be down

Insurance companies, however, should see their value fall Monday at the New York Stock Exchange.On Friday, insurers Allstate and Travelers had fallen to the lowest levels for two years, investors anticipate the costs incurred by the hurricane for those companies.

The amount of the invoice should still be less than initially estimated. Thus, Kinetic analysis was planned on Friday that a tornado could generate over 12 billion euros of damage if it hit New York at the height of its intensity. Finally, she was demoted to a mere tropical storm, with winds still 100 km / hour. These amounts are in any case of a different order of magnitude as the colossal damage of about $ 100 billion registered during Hurricane Katrina in 2005.

Jean-Paul Chifflet: "We have no difficulty in funding us"

LE FIGARO – Your share price has marked a record low 10 August, worse than worst days of 2009. What's going on?

Jean-Paul CHIFFLET – We are in paradox. You mention the low of the action but at the same time, the Crédit Agricole group in the first half net banking record since its inception! We are not the only ones to be attacked on the stock exchange, the whole financial sector is affected (banking and insurance) and even beyond all publicly traded securities.

So why this near-panic investors?

The world is experiencing a structural crisis that has three components: economic, financial and political. This is the first time they are collected and their entanglement makes the situation even more complex. In 2007-2008, the difficulties relating solely to the financial sphere.Today, investor concerns about the economy and growth are strong, with the feeling now that the recovery will be forthcoming in the United States. Then there are doubts about the European sovereign debt and U.S. policy of rigor to establish, particularly in Europe, and the governance of the euro area.

Given the effects of contagion, some raise the specter of a liquidity crisis for banks. Feel the French worried? The are you yourself?

No. Crédit Agricole we have not seen any concern from our customers. In all respects, including liquidity, our situation is good. Crédit Agricole is one of the banks rated by rating agencies in the world. We are the first custodian bank in France, which gives us a significant advantage in terms of liquidity.We have no difficulty in funding us.

U.S. money market funds, however, withdrew funding for European banks …

European banks, and French in particular, must adapt to this new situation. These funds will not be around for two or three months at least. But there are other sources of funding. Based on its treasuries in 25 countries, Crédit Agricole has direct access to central banks, companies or asset managers in Europe, Asia or the Middle East. Our financing program and long-term market was carried out at 90% at end-July. We also have available cash reserves of more than 120 billion euros. I am perfectly calm.

Have you been asked by the New York Fed on your cash?

No.Each controller on every continent requires banks to be mindful of their liquidity. It is a measure of attention that seems normal.

Why the French banks were they stigmatized?

French banks have been more battered by the markets than their European counterparts. The fears that we faced were related to our exposure to sovereign debt and doubts concerning reports of France. Add to this the fact that French banks capture a significant portion of funds from money market funds U.S. $ 200 billion on 800 billion allocated to European banks. This has raised specific questions about the ability of our banks to adjust.

Have you read this summer fiction of Le Monde, which envisioned a nightmare scenario for your group?

This did not please me, I did know.But I respect the freedom of the press.

How do you change the economy?

The recovery will be slow, slower than expected. But so far, we do not get a second recession.

This degradation should it encourage regulators to soften their demands on the banks?

I have only one message: we will adapt to the regulations. However, it would be nice if regulators take the time to add the impact on banks of all the new requirements, capital liquidity, through taxes and surcharges for systemic institutions. Banks are the sherpas of the economy. If their backpack is too heavy and that the oxygen is reduced, it will mechanically eventually impact on growth.It is ultimately the competitiveness of the European economy, these reforms threaten.

Are you going to trim down for credit offered?

Crédit Agricole is the main partner of the French economy. We are the largest financier in France with 471 billion euros of outstanding loans. They have always grown and we want to enroll in a sustainable way in supporting growth. But of course we will have to adapt according to the real economy and the requirements of regular lators.

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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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Life insurance less attractive

The French preferred to shun their investment. For six months, the payments on life insurance contracts are in free fall. In one year, they were down 12% at the end of May But it is true that last year at the same time, the collection was exceptionally strong.

His back is not what concerns most insurers. They are especially concerned more and more savers to make withdrawals from their contracts. These purchases (and capital paid after the death of the policyholder) jumped 15% in one year, and even 29% on the single month of May. According to the French Federation of Insurance Companies (FFSA), the movement affects all contracts, better filled with more modest. Crisis forces, some French draw on their savings to finance their spending. Others are shifting their capital to other investments, including real estate faxless pay day loans.The erosion yield contracts (3.4% on average in 2010) encourages them. As uncertainty about the sustainability of the tax advantages of life insurance.

Even the famous Afer the contract is affected. The G76, a syndicate of agents of the historical savings association, a phenomenon of outflows unprecedented explosion in the number of closings of contracts for two months, and decreased – for the first time – the number of members . In the weeks preceding the general meeting of Afer, June 29, the G76 has spared no criticism of the current leaders, denouncing particular problems of governance and lack of independence of Association vis-à-vis Aviva, the insurer that manages the contract Afer. Two points on which he joined the SOS Principles Afer. Further discussions that may leave investors confused again.

Agriculture impacted by drought

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Berlin expects 100,000 workers East

Workers from eight countries of Eastern Europe – except Romania and Bulgaria – are free to seek work in Germany since May 1. Fearing an influx of immigrants, Germany had delayed for two years opening its labor markets to new members of the former Soviet bloc. But with the shortage of manpower caused by the economic upturn, it now welcomes their arrival as an opportunity. To defuse criticism, Berlin has announced a tightening of controls on illegal work and increased vigilance against "dumping" wages.

The federal Department of Labor expects an influx of nearly 100,000 people per year. "Most are young, educated and mobile," the ministry said. Candidates for a job in Germany should mainly come from two neighboring countries: Poland and the Czech Republic.Faced with a shortage of engineers, computer scientists, executives, doctors, caregivers and skilled workers, especially in construction, German companies consider the arrival of these immigrants as an opportunity . But they will not be enough to fill the shortage.

Fear of unions

The Federation of German Chambers of Commerce estimated that it would bring in about 400,000 immigrants a year to compensate for the lack of manpower. German MEP, Nadja Hirsch sees open borders as an opportunity. "Germany is in dire need of skilled workers," she says, while the labor force is projected to decline by 6.5 million people by 2025. "Such a decline can be offset by better education, better integration of women into the labor market or the lengthening of working life.We need foreign workers and would have opened our borders sooner, "she laments.

In 2009, Germany and Austria were the only countries in the European Union to postpone by two years of opening their labor markets to nationals from eight former communist countries that joined in 2004 (Poland, Czech Republic Slovakia, Slovenia, Hungary, Latvia, Lithuania, Estonia).

But since the economic situation has changed. The unemployment rate in Germany (7.3%) declined further in April. The number of unemployed to fall permanently below 3 million in 2011. While they had hands to negotiate wage increases consequent industry by industry, unions are concerned that the influx of immigrants helps sustain job insecurity and wage dumping.

Berlin has announced tighter controls on illegal workers and wage dumping."We will strengthen controls particularly in the construction industry, cleaning of buildings, medical care and food," said German Minister Ursula von der Leyen. The finance minister, Wolfgang Schäuble, promises more systematic control. "The controllers of black workers are 150 additional posts this year. For 2012 and 2013, we still want to create 100 more per year, "he said.