Recapitalization of banks

In the preamble, the bloc cleared the table of a bulky dossier. They agreed on the recapitalization of banks weakened by the crisis, two months after the IMF has sounded the alarm. The bill, estimated at between 85 and 100 billion euros, less burdensome previously announced. It should allow banks to increase to 9% of their capital ratio "hard" a recognized strength. To achieve this, banks will first use their private shareholders, and if necessary of public funds. The EFSF intervene as a last and final resort.Uncertainty remains about the date of implementation, 2012 or 2013.

On Thursday, Paris and Berlin have also tried to dispel the misunderstanding about the previous meeting on Wednesday between the President and the Chancellor. The stakes: the future modalities of action of EFSF and the famous "leverage" critical piece of the arsenal to stop the European debt crisis and prevent contagion.

The German Finance Minister Wolfgang Schäuble ensures that the two capitals are in fact "in total agreement." But he hastens to add that there is still no agreement at European level. French side, it was confirmed by noting that if there is a discrepancy, it is rather with Spain and especially Italy.In Brussels, witnesses of the appointment of Frankfurt continues to describe "a cold atmosphere" between Nicolas Sarkozy and Angela Merkel, barely warmed by the announcement of the birth of the president's daughter.

To further complicate the picture, the Greek press spoke of a setback yesterday on what promised to be the easiest section of the summit: the release and payment of EUR 8 billion international loan in Athens. The European Union grows. But the IMF question the ability of Greece to address its long-term debt without the involvement of Europeans more convincing.

ALSO READ:

Nathalie Kosciusko-Morizet (Minister of Ecology), Philippe Marini (UMP President of the Senate Finance Committee), Thierry Mariani (Minister of Transport), Bruno Le Maire (Agriculture Minister), Maurice Leroy (Minister of the City) and Gerard Longuet (Defence Minister) commented on yesterday's warning from Moody's to France pay day loan lenders.

ALSO READ:

"For the UMP, the PS project threatens the AAA rating of France

"For Nicolas Sarkozy, the future of Europe is now playing

"Fillon: Triple A, a fragile achievement

The negotiations around the LME were made official last week by its owners, trading houses and banks market users. They admitted that it was highly coveted. Without the name, the CEO of the LME, Martin Abbott, said yesterday that a dozen candidates had appeared.Analysts believe that among them are the American Stock Exchange or ICE that of Hong Kong.

Operation diversification

If the LSE and SGX are able to stand, the operation will allow them to diversify into the sector buoyant metals brokerage. The London Stock Exchange represents 80% of volumes on world markets of the future of metals and recorded a record 120 million packages last year, 2 payday loans.8 billion tonnes of metal. In value terms, this represents 11,600 billion (about 8.56784 trillion euros).

This acquisition will also provide them the opportunity to recover from failures of failed attempts to merge internationally very competitive market of securities and derivatives.To recap, the LSE had to abandon its bid on the Toronto Stock Exchange on behalf of a syndicate of Canadian banks, while the takeover of SGX on the Sydney Stock Exchange (ASX) was rejected by the Australian Government five months ago.

Any bid will nevertheless be accepted by 75% of its shareholders, which include Goldman Sachs, JP Morgan and trading companies.

ALSO READ:

"Touch of conflicts of interest on the LME

"The battle rages between the exchanges

This counter communicator, which allows to know its power consumption in real time and thus better control, will be installed progressively from late 2013-early 2014. A five-year period is planned to equip 35 million consumers, knowing that the European directive assigns a target that 80% of users are in possession of this tool in 2020. "This counter is a future asset for the modernization of the electricity distribution network.It will particularly help to end the current system of estimated bills, sources of discussions, said one industry player. In addition, the meter installation will require the creation of over 10,000 jobs. "

Throughout the past few weeks, a severe battle was between ERDF – a subsidiary of EDF in charge of distribution – and local authorities about the property counters Linky. Upon arrival, the government has not decided to change the current law, which states that the networks, which include counters, belong to communities. In support of its reflection, the government relied on the report of "Committee Linky" on the generalization of communicating electricity meters in France.The report, led by parliamentarians Ladislas Poniatowski and Jean-Claude Lenoir, was sent Sept. 21 to Eric Besson.

According to the overall pattern was retained, ERDF will be responsible for ordering and installation of new meters. These will be installed free of charge, the government decided that not considering either a tax increase for network use, one of the elements of the bill paid by customers.

A cost of 4.3 billion euros

In charge ERDF therefore, which plans to spend 4.3 billion euros to the generalization of the program Linky, to compensate the investment by the productivity gains achieved through this tool. For example, the new meter will perform many interventions that will distance the presence of agents of ERDF to the customer will no longer be necessary."But whatever the gains, a system of passing on costs is possible sooner or later," suggests an industry expert.

As for local, they indicated that the expected effectiveness of the new meter is fully proven. In other words it is shown that consumers can realize significant energy savings. Widespread Linky is a crucial element of energy efficiency policy of the government at a time when energy prices rise.

ALSO READ:

"The government is considering a smart meter free

"Linky: EDF tests new paid services

"The failures of new electric meters

"Defends the ERDF smart electricity meter

The declaration on Sunday night on TF1, former IMF Managing Director Dominique Strauss-Kahn, for whom "we must accept to recognize that we must take his loss" of Greece was the effect of bomb."Hearing that DSK four months ago the IMF also urged new funding for Greece say the exact opposite now shows how events have turned," says Bruno Cavalier, chief economist at Oddo Securities. For the latter, there is a "real tired of the financial markets who want to wipe the slate clean once and for all to get back on firmer footing."

A feeling evident in a survey by Barclays Capital from major global investors. They are 24% think that the current crisis will lead to a breakup of the euro area. Over 60% of them believe that the European Financial Stability Fund (EFSF) will be insufficient to resolve the debt crisis.Although little scientific significance, such polls show the amount of work to be done now to reassure the magnitude of the crisis.

Bercy wants to reassure

France, Monday it is used by the voice of its Minister of Economy Baroin for which a default of Greece "is not a working hypothesis." At Bercy we stick to the same line of defense when all European countries have adopted the plan of July 21, that is to say by mid-October, the bleeding will be stopped.Reasoning that is opposed to that of economists who say a failure Greek is becoming increasingly economically rational, "If they want to avoid a failure of control, the Troika and the European Union in particular have an incentive to relieve pressure on the objectives short-term budget of Athens by insisting on the implementation of structural reforms to boost potential growth in Greece, "say economists at Morgan Stanley.

Rather than a sudden failure, we must consider a debt restructuring in the short term, implying a lower repayment installments provided for in the coming months to ease the Greek public finances.The major risk of such a scenario is a contagion to other peripheral countries "can be avoided if the ECB goes on the front lines and discourage speculation against the Italian debt by buying heavily," said Bruno Cavalier.

Creditors on deck

In this climate of growing skepticism, Greece somehow continues the implementation of the agreement of July 21, which passes through the participation of private creditors. Artisans of the device designed to reshape 192 billion euros of Greek claims STRIPS to complete the offer in October. "This operation can not be done in a snap. It is very complex technically and supports many constraints, "insists Fabrice Faure-Dauphin, a partner with law firm Allen & Overy, the Board of the operation.And insist: "If Greece were to miss a deadline, it does not fundamentally change the rules and would not offer more solutions to the problem."

The only good news, the first signals of the voluntary contribution of banks and other insurers are quite positive. While Greece requires a 90% interest in the exchange, some suggested a rate of 75% or 80%, almost unexpected. At these levels, the operation would have every opportunity to move forward. "A contribution of 85% instead of 90% needs to find an additional 8.5 billion euros," analysts calculate Barclays Capital.If Athens was a survey of creditors, the real success of the operation will not be known until after the formal offer proposal issued by the Greek government.

Athens without a loan repayment expected before December, this still leaves him time for both to continue its negotiations with the Troika and to carry out – or not – this massive debt restructuring for its crucial public finances. Meanwhile, the markets do not.

"Nothing is confirmed yet," says one, however. "It will also depend on market developments in the day," says an adviser. Monday night, the Elysee was between a very firm denial to rumors that a scenario out of Greece to the euro would be discussed at the Elysee. We emphasized above all the character "drama" of this to the Greeks themselves, but also for the euro area.

"To ensure compliance with the commitments of the July 21"

"This is not a desirable solution, we do nothing to make it desirable," confided a senior official Monday night Elysian following folder every minute electronic check payday advance."We try to be consistent: we are about to present to Parliament the rescue plan that was decided on 21 July in Brussels. We do not prepare in the wings is another scenario that would offer the exact opposite, "he continues.

The state still remains fragile in which finances are Greek, "We try to convince them to do everything to achieve compliance with the commitments of July 21," says this source. Tuesday evening, the Head of State may wish to print this message in a clear and solemn.

A league of companies

Advanced beyond the sports of "cherry blossom", the nickname of the national team, the country of the Rising Sun has mainly a very special championship, which does not leave indifferent rugby players from Europe, sort of Nations (New Zealand, Australia, South Africa), and the Pacific Islands (Samoa, Fiji, Tonga). Third national sport, and this for over 100 years in the archipelago, the discipline has developed to organized a national championship, the Top League. With a special feature: the clubs come from the companies.

"These clubs are like works councils in Europe, shows Miguel Fernandez, agent of several French players. The rugby players are employees of the multinational corporations, which finance between 85 and 90% of the teams. " Hence the original names of clubs such as Coca-Cola West Red Sparks, Toshiba Brave Lupus and Yamaha Jubilo.Toyota even has two teams playing in the Top League (14 teams), the elite rugby in Japan.

Consequently, this "championship companies" gives more flexibility for clubs to recruit players from outside, when the National Rugby League wage bill caps the French clubs to 8.7 million. For the time being, no French player in the league evolves Japanese, but many of the major European leagues rugby and South Pacific have been tempted. Most recently, the former third line of the French stage, James Haskell, free from any contract with the club from the capital, announced that it would conduct a season with the Ricoh Black Rams Japanese before starting a new lease in 2012 with Wasps English payday lenders. In his previous contract in Paris, the player's annual salary was estimated at 300,000 euros.Likely that his Japanese club for a season or at least aligned with that level or beyond.

Players of the hemisphere are the most numerous

For a star player in the Top 14 French, whose gross annual salary up to 400,000 euros, the Japanese archipelago can also represent an attractive option at retirement. Around the world rugby, the phenomenon is growing: in 2008, two members of the hinge legendary Australian wallabies, Stephen Larkham and George Gregan signed in Japan. The first, to 34, with the Ricoh Black Rams, and the second 35 years with Suntory Goliath.

The choice of the country of the Rising Sun did not, however, only by default. "On average, Japanese wages are 20 to 30% higher than those in Europe, explains Miguel Fernandez, where the French Top 14 offers a gross average monthly gross earnings between 10,000 and 12,000 euros."Examples of multiply exile for five or six years. Twice in the middle of his career, Troy Flavell of New Zealand, currently operating Bayonne, selected the Top League (Toyota Club between 2004 and 2006 and Mitsubishi Dynaboars between 2008 and 2010).

Even the coaches are getting into, as the country "looking for experienced technicians to increase his level of play," said Miguel Fernandez. Jean-Pierre Elissalde, a former French scrum-half, led for a year the selection of Japan. For his part, Christian Gajan, current director of the Bayonne rugby took over in the mid 2000's Coca Cola West Red Sparks. Finally, and since 2006, the current XV of Japan is under the leadership of the All-Blacks legend John Kirwan.

Still, the financial firepower of a club is sometimes not enough to convince European players into exile at the end of the world.Therefore, the countries most represented in the Top League are those of the southern hemisphere, for reasons obvious geographical proximity. In the national party in New Zealand, they are even a dozen players from New Zealand, Samoa, Fiji or Tonga to defend the Japanese colors.

ALSO READ:

"Francois Trinh-Duc:" Respect the team of Japan "

"Many operators will undoubtedly look forward to a quieter earlier in the week after the extreme volatility of recent days," said Cameron Peacock, an analyst at IG Markets.

Until Tuesday's meeting

The markets also seem to look forward to the outcome of Tuesday's meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel.They must discuss reform of the governance of the euro area, sensitive issue for the markets. The Franco-German promises to make such joint proposals by the end of the summer Payday advance. Investors are calling for the creation of "Eurobonds", which would sign the pooling of public debt in the euro area. But Germany seems to be opposed. The discussions will be closely monitored on both sides of the Atlantic.

In addition, the European Commissioner for Economic Affairs Olli Rehn today called on European countries to adopt "very quickly" the decisions of July 21, and provided that the applicants were working "day and night" to this.

The U.S. housing market under the microscope

The next publication, this Monday will be very light. On the agenda are the indices of activity of the New York Fed and the real estate market across the Atlantic.

On the corporate side, Societe Generale will be followed. The Financial Markets Authority (AMF) initiated an investigation of market rumors that circulated this week on Societe Generale, announced Friday its president Jean-Pierre Jouyet

In the wake of the Asian stock markets, down sharply this morning, the benchmark index in Paris has started his week on a further decline (-0.74%), but avoid the stock market crash feared its markets.After a brief stint in the green, but he digs his losses at midday, yielding 1.53% at midday, to 3228.29 points. Certainly, markets have heard statements of intent to both sides of the Atlantic, the austerity measures to consolidate public finances in industrialized countries. Nevertheless, the nervousness and volatility are the watchwords of the meeting. Evidenced by the yo-yo in the Paris index since the beginning and the very high trading volumes of 3.3 billion euros, three hours after opening.

Yesterday, Angela Merkel and Nicolas Sarkozy reiterated their determination to ensure that the bailout of Greece on 21 July be adopted before the end of September. They also praised the efforts of Spain and especially those of Italy, two weak links in the euro area at present.Indeed, Rome has advanced by one year (from 2014 to 2013) the goal of return to balance its accounts. In addition, the European Central Bank (ECB) said it would implement "active" its buyback program obligations. This measure, taken and announced last week by Jean-Claude Trichet, president of the institution, had absolutely convinced investors. On the contrary …

Relaxation rates in Spain and Italy

This does not seem to be the case this morning. The ECB did not specify to which countries would focus the bond buyback program, but rates in ten years Spanish and Italian relaxed strongly on Monday in the bond market, passing under 6%.Relaxation is expected to continue, while the French Minister of Economy and Finance has confirmed Baroin on Europe 1 that the ECB was ready to buy the Spanish and European debt, if investors withdrew.

Elsewhere in Europe, the trend is more positive than the stock market crash feared by investors. In Frankfurt, the Dax, however, declined 2.24% to 6096.62 points. Less for London where the FTSE 100 lost 1.50% to 5168.33 points. In Madrid, the Ibex 35 index 0.38% wins at noon, at 8704 points. Finally, Milan were down 0.55% to 15,928, 49 points.

Next on the list?

However, uncertainty should remain in force on the European markets at the beginning of the week. The decision of Standard & Poor's in the United States continues to claim haunt the minds of the markets, despite a weekend to "digest" the news.Now that the world's largest economy, long considered one of the most reliable borrowers, is not as well marked, which could consider itself safe from degradation? In France, this concern should be limited, however, the chief economist for Europe, Standard & Poor's Jean-Michel Six, who said Saturday that the agency maintained the "AAA" of France, in a stable outlook payday loan.

Before testing the first effects on the markets of this political mobilization, the announcement of the ECB on repurchase of bonds has already led to support the euro against the dollar. At 7 o'clock this morning, the euro was worth 1.4321 dollars, against 1.4281 dollars on Friday night, after the dollar rose to 1.4370 on Sunday night.But above all concerns macroeconomic benefit to gold, which recorded a new record Monday on the market in Hong Kong, dying for the first time the maximum 1700 dollars an ounce, and benefiting fully from his safe haven status.

The sharp drop in oil

Instead, the side of the oil, oil prices continued to tumble on Monday. Result of numerous concerns about a possible global recession, prices show a sharp decline. In morning trading in Asia, a barrel of "light sweet crude" lost 2.59 dollars to 84.29 dollars, while that of Brent North Sea crude for September delivery fell by 2.48 dollars to 106.89 dollars.

Finally, the political mobilization should remain in force throughout the day, and guide the trend in European markets as U.S.. For the side of the macroeconomic data, the news will remain low in the first day of the week.Unlike last week, no statistics across the Atlantic will not give further details Monday about the health of the U.S. economy or the risk of a possible recession in the country. In France alone were expected business surveys of the Banque de France, unveiled on Monday its growth forecast for the third quarter. For the period, the institution expects an increase of 0.2% of French GDP, the same pace as in the previous quarter.

As for values ​​to follow, business publications are scarce this week.

Battered last week after interim results affected by exposure in Greece, banking stocks offered a nice rally this morning and take the lead increases the Cac 40.BNP Paribas (5.47% to 42.83 euros), followed closely by Credit Agricole (+ 5.01% to 7.51 euros) and Societe Generale (4.83% to 28.76 euros). For its part, Axa wins 3.81%, to 11.99 euros. The entire financial sector benefits from the relief this morning, the insurer CNP Assurances taking his side 3.91%, to 12.37 euros. Outside the CAC 40, ahead of Dexia 5.26% to 1.7 euro.

The manufacturer Archos tablet that will detail its annual accounts after market, has already won 4.77% to 8.35 euros.

Carmat (12.80% to 105.47 euros). The total artificial heart specialist said on Sunday evening the success of its capital increase launched from July 13 to 29. The former subsidiary of EADS has raised 29.3 million euros, which will fund the first clinical trials on humans.

GDF Suez (2.74% to 20.97 euros).The group of energy and services has sealed, according to Les Echos, a strategic Partenaris with the Chinese sovereign wealth fund CIC, which would lead to an acquisition of a 30% interest in the exploration and production arm of French.

ALSO READ:

"The Asian market plunges after degradation of the United States

"Paris and Berlin are mobilizing to fight crisis

It is in extremis, on the night of Sunday, which is reached an agreement on raising the ceiling of U.S. debt, after a speech critical of President Barack Obama. Two days before the deadline set by the U.S. Treasury, the stakes were high: without this increase, at least 2.1 trillion dollars, the United States, on the edge of default, could sow the wind panic on financial markets.

Barack Obama has managed to generate compelling reconciliation of Democrats and Republicans on this agreement, investors now hope to see a bill passed in the coming days. But that will depend on the Congress which has yet to give the green light, no later than Tuesday night. Similarly, no one knows how to react, however, the rating agencies. Despite the compromise finally reached on the debt, the loss by the U.S., their AAA rating is not excluded and would have severe repercussions on the economy and markets.

After selling more than 4% last week, which will remain the worst of the year, the Dow had yet started the day up 1.10% at 12,277 points.Standard & Poor's 500 and Nasdaq 100 progressed to their respective share of 0.86% to 1303 points and 2785 points to 1.05%.

The manufacturing sector to the death

At the macroeconomic agenda, a bad surprise helped to fill the atmosphere: the growth in manufacturing in the United States slowed in July against all expectations, according to the purchasing managers' index released Monday by the Institute for Supply Management (ISM), which fell to its lowest level in two years. The index of manufacturing activity of this organization stood at 50.9 last month, its lowest level since July 2009, against 55.3 in June. The market economists polled by Reuters on average expected 54.9.

Construction spending in the U.S. have also increased by 0.2% in June, according to figures from the U.S. Department of Commerce published Monday.These expenditures reached 772.3 billion dollars, while analysts polled by Reuters had forecast a rate unchanged no credit check payday loans.

This week, analysts said Aurel BGC, "investors will focus on indicators confirming whether a rebound in growth. In view of the latest indicators movement is far from certain. Auto sales (Tuesday) and retail sales side on Wall Street for the month of July will be eagerly awaited. This weekend, the employment figures will be released by the BLS.They will be very affected by the lay-off of 20,000 staff in the State of Minnesota. "

73% of companies did better than expected

The European steelmaker ArcelorMittal and U.S. mining company Peabody Energy (0.73% to 57.89 dollars) on Monday made a hostile bid on the Australian Macarthur about 4.7 billion Australian (about 3, 6 billion euros), after the failure of talks to reach an amicable agreement. The board of Australian mining group declined Monday to support the joint bid from ArcelorMittal and Peabody to 15.50 dollars per share.

The title of the American manufacturer Ford (2.54% to 12.52 dollars) could take 25% as the group reduced its debt, is launching new models and trying to expand in China and India where he remained late over its competitors, said Monday the magazine Barron's.

Shares of online retail Amazon.com (1.75% to 226.41 dollars), which is just below its record high, could earn 10% to 25% if the investment result rapid growth in its retail operations, cloud-computing and the Kindle reading light, said Monday the magazine Barron's.

The railway company of the UAE, Etihad Rail, said Monday it has ordered seven locomotives Electro-Motive Diesel, a subsidiary of U.S. manufacturer of construction equipment Caterpillar (2.36% to 101.13 dollars).

On the corporate side, after Merck (+0.03% to 34.10 dollars) and Chevron (1.57% to 105.67 dollars), which published its quarterly results Friday, the ball of publications in the U.S. coming to an end.Nearly 65% ​​of companies have indeed published their findings in the U.S. and 73% reported earnings above expectations.

Among the publications planned the first week of August, include those closely watched CBS, Cephalon, and Pfizer (Tuesday). Will be followed by Comcast, Time Warner and Mastercard (Wednesday). Then, Kraft Foods (Thursday), Procter & Gamble and Viacom (Friday).