World Articles

Operation seduction for Joe Biden. The U.S. vice president, who loop a five-day official visit to China, wanted to reassure foreign creditors first in Washington on the economic strength of the United States. Americans "have never been in default and never will be," he said Sunday.

According to Joe Biden, even if the agreement signed last moment three weeks ago by Congress to prevent this disaster has cost the country a deterioration in its S & P notes, "The United States remains the best option to invest."

The message is "clear"

Beijing, which holds nearly 1.17 trillion dollars of U.S. debt, had been very critical of the U.S. government after the historic decision of the rating agency. The country was particularly called on Americans to stop living above their means payday loans.

The visit of U.S. Vice President in China, entirely focused on the issue of U.S. debt and the solidity of the world's largest economy, appears to have reassured. "You have sent a clear message to the Chinese public, that the United States will keep their promises and their commitments to their sovereign debt," has said Premier Wen Jiabao. This will ensure the safety, liquidity and value of good Americans. " The Chinese leader also claims to have "full confidence in the fact that the U.S. will overcome their difficulties and put their economy back on track for healthy growth."

ALSO READ:

"Beijing tance Washington about its debt

"SPECIAL – Depression, fear of debt

Wall Street is on track to continue the rally that started in last weekend. After opening up 0.48% to 11,323.44 points, the Dow Jones continues to grow: to 5:20 p.m., it gains 0.90% to 11,371.80 points. The Nasdaq index gained 0.51% to 2520.82 points.

As in Asia, the U.S. markets should react positively to the announcement of a contraction much weaker than expected Japanese GDP in the second quarter. But as in Europe, they should remain cautious on the eve of an important meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel on the reform of the governance of the euro area. They should discuss ways to implement to prevent contagion problems of sovereign debt to the rest of the region.

But Germany has already warned investors: this meeting will lead to "nothing spectacular". "It will be a working meeting on the governance of the euro area in line with European decisions taken in late July," said the spokesman of the Ministry of Finance. The latter also confirmed the skepticism against German Eurobonds solution yet desired by many investors. "The Euro-bonds are not an option," ruled the spokesman. These ads have already resulted in demoralizing the European investors.

Morale builders stable

Until the final conclusions of the meeting, U.S. investors are learning that manufacturing activity in the New York area declined for the third consecutive month at -7.7, 3.9 points lower than July .

In real estate, the NAHB index released on Monday shows that the morale of the manufacturers was unchanged in August, close to its lowest historical levels.

Note that the currency market, the Euro rises slightly against the greenback at 1.4287 dollar. Oil markets, oil prices opened up on Monday in New York. A barrel of "light sweet crude" for September delivery was trading at 86.13 dollars, up 75 cents.Prices were down during the European trading, erasing their gains made in Asian trade in a market nervous and still haunted by persistent concerns about global growth and the debt crisis in the eurozone. A barrel of Brent North Sea crude for September delivery was trading at 107.56 dollars on the Intercontinental Exchange (ICE) in London, down 47 cents from Friday's close.

Google swallows Motorola Mobility

On the corporate side, Sysco is expected to release its results on Monday.

Estee Lauder drop 9.18% to 91.58 dollars.Despite the publication of a net income group share record of $ 700.8 million, up 46.5%, the cosmetics group announced its annual results would be below Wall Street expectations.

Lowe (-0.27% to 19.37 dollars) has already reported sales below expectations in the second quarter of its fiscal year and lowered its annual targets for the second time in three months, consumers pushing their development projects until later because of sluggish growth.

Google (-0.88% to 558.94 dollars) will buy the mobile phone manufacturer Motorola Mobility (56.15% to 38.21 dollars) to $ 12.5 billion in cash.

Time Warner (-0.43% to 65.25 dollars) has reached an agreement to buy the cable operator Insight Communications to Carlyle for three billion dollars in cash.

Bank of America (3.20% to 7.42 dollars) has announced the sale of its activities in the international credit cards in Britain, Ireland or Canada.

Boeing (0.16% to 61.84 dollars) announced it had completed with Air Lease Corp. an order valued at $ 2.5 billion on 14 737-800 aircraft and five 777-300ER.

Pfizer (2.41% to 18.29 dollars) announced Monday it had won before a U.S. court case against Teva Pharmaceutical Industries of Israel, preventing the global generics to produce a copy of Viagra before 2019 .

Transocean (2.15% to 56.81 dollars), listed in New York, wants to buy the Norwegian group Aker Drilling, for a total of 1.1 billion Swiss francs (1 billion), according to a statement Monday.Several large shareholders, representing 65% of the capital, have agreed to the deal, said the Swiss.

The American specialist craft materials Grainger (2.12% to 138.72 dollars) on Monday announced the acquisition of the Dutch distributor of fasteners Fabory Group for $ 344 million (242 million).

To attract customers, Fnac recycles old-fashioned recipes car dealerships. In recent days, the distributor of cultural products offers customers to resume high-tech products which they no longer use. Based on an Argus home, teaches against exchange vouchers valid in its 80 French stores.

This is a test, revealed by the challenges.fr site on which the subsidiary of PPR declined to give details. The service "Fnac Reprise" offers to purchase TVs, shelves, computers, phones, camcorders, music players and game consoles … But not books, CDs and DVDs, it is however possible to afford with the right of purchase.

The "cultural agitator," the owner would like to sell in order to afford sportswear brands, is trying by all means to correct its turnover, eroding month after month.His last idea could be successful, provided, however, offer an acquisition price attractive enough …

The figures were eagerly awaited by the markets. While the U.S. Department of Commerce announced that day that household spending had declined in June for the first time since September 2009, Chrysler, General Motors (GM) and Ford reveal a jump in sales in July.

The prize for the largest increase returns to Chrysler, which recorded an increase in sales of new cars by 20% last month. Chrysler, owned up to 53.5% by Fiat, said it sold 112,026 units, particularly the Jeep. "In a still very difficult, we make our best sales performance in over three years, welcomes Reid Bigland, head of U.S. sales."I think this figure is the ultimate illustration of the progress we have made to our products in terms of economy of oil, quality and design."

Behind Chrysler, Ford announced a 9% increase in sales of new cars on American soil in July to 180,865 units. "We are pleased to see a stronger pace of car sales, with a continued demand from consumers for our fuel efficient cars, our trucks and trucks," said Ken Czubay, head of U.S. sales USA.

The number one market, General Motors, he, reported a 7 saving account payday loan.6% increase in sales last month to 214,915 new cars sold against 199,692 a year ago. Up to the manufacturer to strong sales of Chevrolet, one of its brands, and the resilience of its new models.

The recovery remains fragile

Despite these results, analysts remain skeptical. These sales figures are in line with expectations and manufacturers are affected by cons-productive effects of higher prices to consumers still reluctant to spend.

The consensus then averaged over U.S. car market at an annualized rate of 11.8 million cars in July. A level below the rate of more than 13 million that prevailed earlier this year. Confident, GM, him, reiterated its forecast of a U.S. auto market between 13 and 13.5 million units. But his optimism is not enough to convince investors on Wall Street. GM shares lost 3.71% to 27.03 dollars a barrel in a market down by 2.19%. Following the same movement, as Ford unscrewed from 4.13% to 11.84 dollars.

ALSO READ:

"A month of July for the sluggish auto market

EU leaders Thursday night put on the table a series of measures to help Greece, but also to convince that there is solidarity in the euro area.

Save Greece

Jean-Claude Trichet, President of the European Central Bank on Thursday. Photo credits: Georges Gobet / AFP

The announcement was confirmed Monday afternoon by the company itself. The CEO of Caravelle, Pierre-André Martel, died Sunday evening with his daughter 20 years following the crash of a light aircraft near Lyon. Aged 57, Pierre-André Martel was known to have founded in 1995 Caravelle, the group specializes in the recovery and rehabilitation of companies, it still ran. Polytechnique, the man was also recently ranked by Fortune magazine Challenges 134th in France, with a wealth estimated at 350 million euros. He held still, with his family, 95% stake in his company.Caravelle, which announced the end of 2010, over 400 million euros in consolidated shareholders' equity and cash more than 200 million, operates in various sectors ranging from heavy equipment (Benalu, Marrel, EDBRO, Lamberet) to the self-medication (Cooper) through transport (Ducros Express, Girard).

"The provisions of Martel in this event are implemented and ensure the continuation of the group Caravelle," assured the company in a statement. When contacted, the company has not yet given details on the identity of the future (e) governing the group employs about 5000 employees worldwide, and manages 375 million euros in net business bad credit payday advance.

The board has not yet expressed

One obvious thing for the moment the most pressing issues: the future leader (or the acting team), will manage the back of the motor carrier Mory. Partially placed in receivership, it had attracted the interest of Caravelle, which confirmed the strategic importance of the resumption of mail Mory, "in order to bring its subsidiary Ducros Express." Candidates for the recovery should occur before July 31, but the direction of Caravelle had already filed early in July a written offer. Unlikely, however, that the tragic death of Sunday calling into question the strategic choice.

Meanwhile, the Board of Directors of Caravelle did not logically expressed on the scenarios considered in the coming weeks leading figure on the future of the group.The question of the succession of Pierre-André Martel remains in effect for the moment difficult to address, just hours after the formalization of that disappearance. Especially companies that, like the family, the imprint of a founding CEO of the group will need time to adapt substantial teams.

ALSO READ:

"Mory" confident "a buyer

"The future of Mory carrier is played at Bercy

From our correspondent in London

Despite a series of desperate measures taken last month to try to save the company, Southern Cross, the largest group of nursing homes in Britain, will have to end its activities. The company is in a position of near bankruptcy and will have to transfer all of the 752 homes it had to other management structures. Agreements are already being negotiated for a third of them. The listing of the group Southern Cross was suspended Monday for the London Stock Exchange.

An announcement has angered unions and associations for the protection of older people, worried about the future of 31,000 residents and 43,000 employees of the group.The bankruptcy of a private operator managed by investment funds of the City is also very bad news for the government to David Cameron, the reform of public health plans to provide a much greater role to the private sector.

Southern Cross tried last month to set up a restructuring plan which included the sale of hundreds of homes and the deferred payment of a quarter of rents for 752 homes, but these efforts have not been sufficient.

The magnitude of the crisis had forced the Prime Minister to take a stand last month. David Cameron was first started by saying that the state did not intervene in a private matter, but ended promise that he would do everything to ensure the situation of pensioners affected.A spokesman for Downing Street said Monday that no retiree "does homeless" because "there are currently about 50,000 places in the country" in nursing homes.

Reduced spending

The fate of Southern Cross also challenges the rapid privatization of the medical sector and assistance for the elderly in Britain for twenty years, a trend initiated by the Conservatives but pursued by Tony Blair. More than two thirds of homes in the country, many of which provide a public service, are now managed by private companies. The quality of their service is also criticism since private retirement residence with seven scored "poor" or "inadequate" in the inspections, said the Financial Times.

The cause of the collapse of Southern Cross is quite simple.The group had signed leases with annual increases of 2.5% guarantees but finds himself in is at odds because its major customers, municipalities and communities, reduce average spending of welfare benefits by 10% year, due to the combined effects of losses due to bad investments during the financial crisis and the massive budget reduction plan launched by the government Cameron.

This is the unfortunate consequence of a strategy set up by Blackstone, the investment fund that took control of the group in 2004. The fund wanted to increase the financial profitability of the group by selling its stock of homes, at a time when the UK property market was in a bubble.

Eighteen months after the initial concerns about the European debts, the situation on the old continent is still fragile. However, the euro remains surprisingly strong. The euro hovered around $ 1.45 since April, and rose more than 8% since the beginning of the year, and 15.5% in one year. "The first explanation that justifies the euro strengthens and weakens the dollar is in the interest rates: in Europe, they are likely to be faced by the ECB on Thursday, reaching 1.50% while those U.S. Federal Reserve and will still remain long remain between 0 and 0.25%, "says Bruno Rodier, private banker and portfolio manager at Pictet & Cie.This differential rate encourages investors to take advantage of the "carry trade", this technique to generate returns by borrowing in dollars at a rate unusually low, and place it in euros, which pays better.

"The situation should not change in the coming months because when the European Central Bank has the sole purpose of containing inflation by raising interest rates, the Fed also has the task of supporting growth and employment and maintain long-term rates low and a weak currency to do so, "said Harry Sebag, an analyst at Saxo Bank.He said the Fed will not change its monetary policy anytime soon because it looks especially the real estate market across the Atlantic, the one who caused the economic crisis and financial crisis in the summer of 2007, which is still not out business.

The dollar is kept artificially low

But even more than the strengthening of the euro, especially on the weak dollar that the experts agree. And has been a little more than a year: the Fed announcement as it injects new astronomical quantities (600 billion) dollars in the global economy. Instantly, the dollar lost its value against other currencies, and the effect lasted until now."There is also the effect 'end of world supremacy' of the dollar plays, including the report of the World Bank has recently anticipated that by 2025, that is to say tomorrow, the market currencies will be dominated also by the Chinese yuan, not only by the dollar and the euro, "notes Vincent Juvyns, strategist at ING IM.

The role of the dollar as the global benchmark fading as global governance wants to reform the international monetary system. In this perspective, little by little, investors include the future landscape of the exchange market and exchange their dollars into yuan and euro. "At the same time, we must take into account the cultural dimension of geographical areas: Europe, under the influence of Germany was a culture of rent, we want to keep a strong currency.This contrasts with the current pattern of currency war, which is to artificially push down its currency to promote its own foreign trade, "said Bruno Rodier.

Europe is going less badly than the U.S.

Finally, if Europe goes wrong, it will hurt less than the United States. Bad news on the macroeconomic front here and on the other side of the Atlantic, lower the respective currencies, but the U.S. figures are still worse than the European data, the dollar fell more than the euro. So the euro / dollar rate goes up anyway. "If you took away the effect debt, the euro was trading at least $ 1.50," Harry Sebag plans.Recently, the growth forecasts for the European Union were found, while those for the United States have been degraded.

Thus, the twists in the case of Greece, or fears of contagion from the crisis of sovereign debt of countries in the euro area peripheral to Italy or France, they have had little effect on the euro itself. "The currency market is highly sensitive to very short term. But in the coming weeks, the scenario of an outbreak of the euro area remains the least plausible of all, "says Vincent Juvyns, underlining that" challenges remain whole in the longer term. " The markets seem optimistic about the ability of European governance to agree to find solutions to problems of public finances of member countries."And Nicolas Sarkozy, Angela Merkel, and Jean-Claude Trichet has always reassuring words to soothe the markets when tensions rise," added the expert.

ALSO READ:

"" The Battle for the euro is essential "

"The yuan is becoming and is evaluated

The Cac 40 could string together a fourth consecutive session bullish. When a new day begins crucial for Greece, the Paris Bourse continued its prudent mini-rally started Monday – the last three meetings, the Cac 40 gained almost 4%. The index featuring Paris, ironed the day above 3900 points, opened on Thursday, up 0.33% to 3937.26 points. It has long hovered around 3930 points this morning, and won and 0.19% to 3931.70 points in mid-session.

At the London Stock Exchange, the FTSE-100 gained 0.68% to 5895.84 points and the Stock Exchange Frankfurt, the DAX 30 in advance from 0.07% to 7299.52 points.

Yesterday, the Greek Parliament adopted the first two parts of the austerity plan intended to avoid the financial ruin of Greece. This had the effect of propelling the Cac 40 in excess of 3900 points.This afternoon, members of Greek determine in detail the cost-saving measures and privatization to engage in Greece for the next four years. But on Thursday, the progression of CAC 40 may be more limited than ever, after the IMF expressed concern about a failure of the United States.

On the macroeconomic front, several indicators punctuate the trading session:

– After declining 1.4% in April, consumer spending fell again in May by 0.8%.

– The public debt increased by 54.9 billion euros in the first quarter from the end of last year, to $ 1.6461 trillion, or "approximately" 84.5% of GDP (GDP).

For the euro area, a first estimate of inflation in June was announced at 11 am: it has displayed steady at 2.7%.For June, analysts polled by Reuters on average expected a slight acceleration to 2.8%.

Finally, the United States, two statistics will be released today: requests for weekly unemployment benefits (1430) and industrial activity in the Chicago area in June (15.45).

On the corporate side, as since the beginning of the week, bank stocks react positively to approval by the Greek Parliament's austerity plan. BNP Paribas takes 1.21% to 52.63 euros, gaining Natixis 1.82% to 3.41 euros, Societe Generale advance of 1 no faxing pay day loans.03% to 40.23 euros and Credit Agricole rose 0.44% to 10, 21 euros.Yesterday, they gained 1% to 2%.

Carrefour: -1.26% to 27.75 euros; Casino: + 0.03% to 64.62 euros

In the struggle that pitted him against Carrefour in Brazil, Casino raised its stake in the Brazilian distributor Grupo Pao de Acucar by 37% to 43.1%.

In addition, the Colombian subsidiary of Casino, Exito, will conduct a capital increase of $ 1.4 billion to buy the Uruguayan subsidiary of Casino for $ 746 million.

LVMH yielded 0.49% to 121.90 euros shortly after noon.The European Commission approved Thursday the French luxury group LVMH, headed by businessman Bernard Arnault, to take control of the Italian jeweler Bulgari-watch, considering that the transaction would not raise competition concerns in Europe.

Pernod Ricard: -0.29% to 67.96 euros

The world number two wine and spirits sells its shares in Georgian society Georgian Wine and Spirits, an operation that involves small amounts according to a spokesman for the world's second largest wine and spirits.

EADS: -0.33% to 22.9 euros

The airline American Airlines is negotiating with the European aerospace group Airbus and Boeing to purchase at least 250 aircraft, an order worth approximately $ 15 billion, according to the Wall Street Journal.

Axa: + 1.05% to 15.42 euros

The insurer will invest 500 million euros in its partnership with the Chinese bank ICBC over the next 5 years.

Gecina: + 0.02% to 95.54 euros

The land was made yesterday two new asset sales, with the amount of its trade-offs to 559 million euros at end June

EuropaCorp: + 2.85% to 3.97 euros

The company production and distribution film Luc Besson has suffered a net loss of 30.2% million for the year ending March 2010 to 2011.

Groupe Partouche (0.75% to 2.67 euros) recorded in the first half of its 2010/2011 financial year lagged net income down more than 30%.

Beneteau (2.27% to 14.87 euros) will publish its revenue for the third quarter after the close of trading.

Panic blew the oil markets on Thursday. On the New York Mercantile Exchange (Nymex), a barrel of "light sweet crude" for delivery in August finished at 91.02 dollars, down 4.39 dollars compared to the previous day. In London, the IntercontinentalExchange, the price of Brent North Sea with identical maturity tumbled 6.81 dollars even at 107.40 dollars to 21 hours.

In New York, the courts have even touched 89.69 dollars in session, their lowest level since Feb. 21. In London, a barrel of Brent North Sea crude for August delivery fell to 105.72 dollars, its lowest level since May 6

The backlash follows the decision of the International Atomic Energy Agency (IEA) to use its strategic reserves to bring to market 60 million barrels of oil. The idea is to compensate for the cessation of Libyan exports.According to the Agency, the events in Libya have deprived the market in late May of 132 million barrels of crude oil and "the further tightening of the oil market" resulting "risk of jeopardizing the fragile global economic recovery," says a statement.

The United States is "ready to do more if necessary"

Specifically, the 28 member countries of the IEA will release market two million barrels per day over a period of thirty days. A level which could be reviewed according to changing circumstances.

The United States will participate in this effort up to 50%, 30% for European countries and Asian countries for 20%, explained the executive director of the IEA, Nobuo Tanaka. The U.S. Department of Energy confirmed that it would draw 30 million barrels in reserves, currently at a "historically high" of 727 million barrels."The United States is prepared to do more if necessary to address this problem," the same official said on condition of anonymity, noting that an evaluation of current measures would be carried out after a month.

For his part, "France will contribute in proportion to its consumption, or 3.2 million barrels, equivalent to about 2% of French strategic stocks," said in another statement the Minister of Energy Eric Besson .

Surprise

For investors, this intervention is a real surprise. "It was mentioned last week in the markets but it was not included in the exchange, said an analyst at Saxo Bank personal loans for people with bad credit. No one expected that such action is taken now, it's very rare, "he adds.This is actually the third time in the history of the IEA, created after the 1973 oil crisis, that such action is taken. The members of the organization had already put to their stockpiles after the invasion of Kuwait and Iraq in 1990 after Hurricane Katrina that struck the United States in 2005.

This exceptional measure of the IEA should have the effect of increasing the available supply in the markets. It comes after the announcement Wednesday by U.S. Agency for Energy Information, a stronger-than-expected weekly oil stocks. "The IEA seeks to defuse the situation to avoid a price rise when the summer travel season approaches," says one at Saxo Bank. This announcement also appears as a response of industrialized countries to the failure of the meeting of OPEC countries in Vienna on June 8.The latter had failed to agree on an increase in their production quotas to slow the rise in prices.

Morose context

The announcement of the IEA is also grafted to a more worrisome macroeconomic environment for the oil markets. The U.S. central bank lowered its growth forecast Wednesday for the United States, she sees now under 3% for 2011 and increased its forecast for unemployment. Thursday, the idea of ​​a slowdown of the U.S. economy was confirmed with the announcement of an unexpected rise in jobless claims last week in the leading consumer of oil. In China also, the index of HSBC measuring manufacturing activity fell in June to its lowest level in eleven months.

"Wherever you look, it appears that growth is slowing," summed up Phil Flynn of PFG Best."This bodes ill for energy demand: this suggests that the measures taken by the Chinese government to slow the economy may be working too well, especially in a slowing U.S. economy and difficulties in the euro area "he added. In this atmosphere, "if there is a rebound, it will not be exceptional. It should not exceed 100 dollars. But instead we see prices stabilize at 90-95 dollars, "warns Saxo Bank.

ALSO READ:

"Why the drop in oil is reflected at the pump hurt