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Human error is not finally rise to the "flash crash" that Wall Street plunges 9% for 20 minutes, 6 May last, and cleared up almost $ 1,000 billion market capitalization.

According to a report from the futures market operator Chicago Mercantile Exchange (CME Group) that has acquired Reuters, the manager Waddell & Reed Financial has happened during those twenty minutes, a sales order of 75,000 contracts' e -mini ". What are they? The highly liquid futures that allow investors to manage their exposure to the Standard & Poor's 500. In other words, the company has bet heavily on the index drop. Other companies – Jump Trading, Goldman Sachs, Interactive Brokers, JPMorgan Chase and Citadel Group – have also made such transactions. A total of 842,541 contracts were traded on the e-minis, according to document CME.

Waddell loses more than 5% at the NYSE

Waddell, whose share lost 5.67% at the New York Stock Exchange Friday at 21:30 (Paris time) after the news from Reuters, responded by saying that he had been "one of the more than 250 companies who treated the title 'e-mini "during the period of time during which the market fell" flexcheck cash advance.

Tuesday, Gary Gensler, Chairman of the Commodity Futures Trading Commission (CFTC), the supervisory authority of derivatives markets in the United States, said at a hearing in the Senate have shown that a single transaction was accounted alone is about 9% of total "E-minis for diving indices. He said that there was no evidence that the operator concerned had breached the rules by placing selling orders.

Observers, as reported in Fox Business News, was believed to be a mistake to a trader at Citigroup, who wanted to sell forward $ 16 million on the S & P 500, but spent his order on Procter & Gamble for 16 billion dollars.

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Until now, the French have not felt the effects of policy, expenditure control has been conducted since 2007. For the general revision of public policies (RGPP) merely cut in the organization of the state, culminating with the non-replacement of staff on two retiring. After the controversy arose in Spring 2008 when Bercy had failed to dent the map "families," the executive had resigned himself to not touch, or marginally so, the expenses of intervention, ie policy social and wider economic (costs targeted exemptions, housing subsidies, RSA, assisted contracts …) and subsidies (crops, including transport).

Today, given the magnitude of deficits, the government changed its tune.In framing the letter he sent to all departments, Francois Fillon requires a 10% decline in value of intervention expenditure in the period 2011-2013. "To meet the target of freezing government spending-load of debt and pensions, we can not content ourselves to work on the only day operation of departments," said Baroin's entourage, the Minister Budget. In fact, operating expenses, such purchases, computers or real estate, representing less than 20 billion euros, while the operating expenses weigh 67 billion. The Prime Minister had already announced a cut of 10% within the past week. Measurement confirmed in the letter of framing.The extension of this plane to political intervention will save 6 billion more to the state by 2013.

Difficult choices

Remains now to determine exactly where the cuts will take place. Discussions between Bercy and the ministries that will lead to arbitrage mid-June, tight ahead, as the operating expenses are political. Social expenditures account for half wicket. For them, it will take "specific reforms," according to the letter of framing. Minister of Youth, Marc-Philippe Daubresse however assured Wednesday that the criteria for awarding the RIAA will not be changed. The other half of the expenditure is made up of sectoral aid.Transport (including rail network of France), agriculture, housing and culture are on the front line.

"More generally, all departments will freeze all spending," insists one at Bercy. Including, therefore, that of Defence, while the military budget law provided an increase in appropriations. But everything should be done to ensure that capital expenditure are chipped to a minimum.

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The European Commission wants to control budgets

Continental Airlines and United Airlines are about to happen in the ring finger. According to CNBC, a merger agreement between the two U.S. airlines could be signed next Monday.

According to the Thursday edition of The Wall Street Journal, "the Board of Directors of Continental met Wednesday and has scheduled another meeting on Friday (the day, Ed)" with United, citing sources familiar with the matter.

Two years after failing in their negotiations – the two groups did not agree because of unions and integration costs – United and Continental, whose bosses have always wanted to participate in the movement of Contraction sector, would now be on the same wavelength.

These last two weeks, the talks resumed but opinions differed on how the modality of trade action.

U.S. leadership to

This union intervendrait and only one week after the breakdown of negotiations between U.S. Airways and United Airlines. If the proposed merger between Continental and United Airlines led the new group would become the U.S. leader in the sector, ahead of Delta Airlines, with a market capitalization of over $ 6 billion.

It remains to be seen whether the authority will accept American competition this marriage Guaranteed unsecured personal loan. For who says merger often said job cuts and higher fares.What politically wrong.

A refusal has been lived to its reasons for U.S. Airways and United Airlines, almost 10 years ago, when they had proposed a reconciliation.

A need for synergies

While the sector has experienced in 2009 "the worst year's ever known industry, concentration is a single best way to achieve synergies and economies of scale.

The North American companies have suffered a loss of 3.1 billion dollars last year, according to the International Air Transport Association (IATA).

For 2010, although the estimates have been reported by IATA, the performance accrue largely to companies in emerging countries (Asia and South America), while companies in North America and Europe still would suffer heavy losses, the about 1.8 billion dollars for the former and 2.2 billion for the latter.

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