Current News Headlines

The U.S. stock markets continue their advance on Tuesday, as European stock markets and the momentum of the day on Wall Street. At the opening, the indices are green, but increases small. Very quickly, the Dow Jones up 0.37% at 10,564 points, the Nasdaq is up 0.44% to 2306 points and the S & P 500 by 0.44% to 1120 points ..

Yesterday, the market was driven by good news from the real estate sector still observed under the microscope by investors. Sales of new houses in the United States have indeed rebounded more than expected in June, 23.6%. On Tuesday, a new publication, the Case-Shiller index of home prices meets the individual operators stock market is increased more than expected in May in the United States, +0.5%, a move which still reflects a sustained level of sales, helped by a tax credit.The month of May and is the second consecutive monthly increase, a trend that comes after two months of consecutive decline.

Another highlight of the week at the macroeconomic level, the U.S. central bank should publish its Beige Book Wednesday on the economic conditions. It will be very guarded while the president of the institution, Ben Bernanke said Wednesday before Congress the slow recovery, with no announcement of new funding in the economy. But it was the day Friday with the first estimate of gross domestic product (GDP) U.S. second quarter is expected this week.

On the foreign exchange market, the euro continues against the greenback.Around 15:30, the euro was worth just under $ 1.30, but the threshold was crossed earlier.

The ball takes Publications

On the side of values, as BP leads the rating declining by 1.5% to 38.12 dollars in early trade Payday Loan for Bad Credit. The amount of the quarterly net loss of oil exceeds $ 17 billion, a record high. The group is preparing to sell $ 30 billion in assets and confirms the resignation of its CEO.

The U.S. financial services group CIT (-0.21% to 38.92 dollars), which serves a clientele of mainly SMEs, on Tuesday released a second consecutive quarterly profit and announced it had reduced its debt by three billion dollars.The net income was $ 142.1 million, and reported the number of shares equivalent to 71 cents, while analysts were not expecting that 33.

The group has however indicated that he had once again increased its provision for credit losses, bringing them to $ 260.7 million over the period April-June But this element, as well as pay increases decided to retain employees, was more than offset by asset sales, earnings and tax collectors.

For its part, the world's number one defense, Lockheed Martin (1.73% at 73, 17 dollars) Tuesday reported higher quarterly earnings expectations and raised its annual profit forecast by emphasizing buybacks and improved results in the satellites public.Net income for the second quarter was $ 825 million or $ 2.22 per share, against 734 million or 1.88 dollars per share in the second quarter 2009.

Today investors await quarterly results include sitting in the middle of those of DuPont.

Always on the side of values, the European Commission on Monday opened two investigations to IBM. It suspects the group of computer abuse of dominant position on the markets for servers.

The rating agency Fitch announced Monday after the close of stock markets in Europe, it lowered the ratings of BNP Paribas. The first French bank by market value was previously the club closed their highly rated by Fitch, AA sharing a favorite with the British HSBC and Spain's Santander. But the rating agency, BNP Paribas can not be "comfortable" among this circle of elected officials. The bank is degraded to AA – with a stable outlook.

The share "fairly important" for investment banking activities, deteriorating asset quality in 2009 and capital ratios slightly below the others behind this disgrace. Santander and HSBC show, in turn, limited contributions from their market activities."BNP Paribas continues to demonstrate its ability to cope with the pressures that affect the financial sector, especially European banks, and diversification is good," says Fitch, however.

Tens of thousands of trade unionists yesterday converged toward the center of Rome at the invitation of the CGIL, the main federation of workers in Italy (5.5 million members).

Shouting "not only on our shoulders," they denounced the sacrifices imposed by the government of Silvio Berlusconi to reduce the public deficit from 5.3% to 3.9% next year and 2.7% of GDP 2012.

At a rally Piazza del Popolo, Guglielmo Epifani, Secretary General of the CGIL, reiterated that his organization was not opposed to a correction of the accounts of the state. "We reject this maneuver only made budget cuts without structural reforms or measures to support investment, particularly in public education and research," he told Le Figaro before the start of the event."Those who will pay for will mainly employees and the lowest incomes while wealth and annuities will not be affected."

Guglielmo Epifani also calls for a broad mobilization to invite the Parliament, which will begin consideration of the bill next week, "to modify".

The CGIL has launched on June 25 a word of general strike of four hours in the private sector and the public 24 hours.

For its part, the Democratic Party (PD), the main opposition, has announced a rally against the plan "unfair" in Rome June 19 while magistrates, public sector doctors and world culture multiply protests.

The government plans to freeze wages and hiring in the civil service for two years and 10% reduction in the allocation of ministries and local authorities.No new taxes would be raised and the taxation of financial income would continue to benefit from a preferential rate, but a greater effort would be made against tax evasion.

For the Bank of Italy, the austerity plan could result in a reduction of O, 5% of GDP in 2011/2012 "as a result of compression of consumption and investment." Italy expects a growth of 1% this year and 1.5% in 2011.

Events in Germany

Protests against the rigor were also held in Germany. Between 15,000 and 20,000 people marched in Berlin, organizers said. And between 10,000, according to police, and 20,000, according to organizers, Stuttgart.

The German government announced Monday an austerity plan of 80 billion euros by 2013.He wants to save 11 billion euros in the budget 2011, including through budget cuts in military spending and social.

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New waves of turbulence on Thursday on European equity markets. At closing, the ACC has sold 2.25% to 3432 points in trading volume of over 4.43 billion euros. The London Stock Exchange lost 1.55% at the same time, while the German Dax loose more than 2.2%. Already strained by the very repetition frictions between Paris and Berlin, investors have been demoralized by a poor U.S. statistics: registration weekly unemployment rose against all odds, for the first time since early April in the U.S. during the weeks to 15 May, against 471,000 446,000 the previous week, according to the Department of Labor.

The euro goes down quickly and found $ 1.23, after having taken the day 1.5% up to 1.2414 dollar.The rebound came after the sharp decline of the single currency in the night from Tuesday to Thursday, which has pushed the euro to a new four year more, to 1.2144 dollar.

Christine Lagarde did not hesitate to take the opposite view Thursday of Germany, stating, in contrast to Chancellor Angela Merkel, the euro was "absolutely not" in danger. She also criticized the German ban of short selling of certain financial products, described as "questionable, because there was no prior discussion."

But on substance, they are two different philosophies that are expressed on both sides of the Rhine, experts say, vis-à-vis the economy and Europe: the quasi-religious cult of stability and solidity Monetary and fiscal policy in Germany; tradition of state intervention and boost growth and employment in France.Since the beginning of the crisis in Greek, the largest economy in the euro area has a position of accused in Europe, having been slow to rally to the idea of a bailout.

His German counterpart, said this morning in the Financial Times that he considers the markets "really out of control" and advocates more regulation. Taboos have been broken yet for Germany, as the intervention of the European Central Bank (ECB) in the support system put in place or the rescue of a country in the euro area. And the crisis has, according to experts, everyone take a step towards each other.

L'Oreal stands

On the values front, two titles show up on the CAC 40. This is L'Oreal (2.17%) and France Telecom (+0.10%).

As for cuts, is Alcatel Lucent is the most penalized (-6%), to Vallourec, Arcelor Mittal.

On the SBF 120, it appears as Soitec the red lantern (-9.26% to 8.60 euros): the producer of silicon on insulator for the semiconductor industry confirmed its forecast return to operating breakeven this year, Concentrix off after a current operating loss reduced during the second half of 2009-2010.

In addition, Air France-KLM (-2.12% to 9.40 euros) confirmed anticipate a return to operational balance in 2010-2011 after posting record losses after an exercise she calls it himself as "annus horribilis." Franco Dutch airline, which renounces propose an annual dividend, also undergoes an early exercise sealed by the eruption of the Icelandic volcano Eyjafjöll.

Credit Agricole (-3.07% to 9.09 euros) was no surprise on Wednesday confirmed the appointment of Jean-Marie Sander as his successor Rene Carron as president of the bank, marking the arrival of a new tandem leaders the head of the listed vehicle of mutual group.

Sanofi-Aventis (-1.25% to 47.38 euros): Brazil has given the green light to redeem Medley by the pharmaceutical company for 500 million euros.

The Board of Directors and the two main shareholders of Sperian have agreed to repurchase the company specialized in personal protective equipment by the industry group American Honeywell for $ 1.4 billion. The shares are still suspended from trading.

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

Realtors? A good indicator of the economy. Today, the stone as the economy heads out from the water, but both of them are not yet fully recovered and remain afloat in midstream. Tails, the good news, transactions leave. This year, Fnaim, the federation of estate agents, believes that the bar of 600 000 transactions could be completed. But the market remains mixed. The nine was widely supported by the success of Scellier law, which allows investors to benefit from a tax of 25% within an investment of EUR 300 000. The former, he, still suffers. Because the coin has two sides. Front side, the bad news, the former has not solved the fluidity necessary for proper functioning of the housing market.These professionals call that the secondly-time buyers, that is to say, households who sell a property to buy another, are still not massively back on the market. In many places and on many products, it is still often difficult to match the expectations of those sellers with buyers.

After a blip like this has crossed the housing market, have a good idea of the price of a property is difficult. All the buyers and sellers are determined based on their expectations about future price developments. Roughly speaking, professionals assume a status quo prices. The most optimistic evoke certain properties, the most sought increases in the order of a few percent. Others believe that the balance should tilt towards a price reduction. Mathilde Lemoine, director of economic studies of HSBC France, and expects a decline in prices of the old 4% this year.For its part, the Land Bank expects "a drop in prices of 3% in the former and stability in the new." And pout Mouillart Michel, Professor of Economics at Paris X-Nanterre, "there is no risk of sudden fall of the market.

Another less quantifiable changed with the crisis and must be taken into account. In real estate, as elsewhere, households are determined to buy at the right price, to be smart consumers and investors informed. The beating of the heart are more difficult. Today, we buy more with his head than his heart. The ball is still in the camp of buyers. They have attractive credit terms. It is indeed possible for those who have the best records, to find a fixed rate loan over fifteen years to 3.5%. It will be hard to beat. "Interest rates will necessarily undergo one or more increases in 2010," said the broker CAFP.In a market recovering, prices are difficult to read. We publish in this case the numbers of notaries, those of the Credit Foncier Fnaim and according to our tour of France prices in Ile-de-France and its regions. Searched information, necessary but not sufficient. For now, the price changes between a product with and without defects, good or bad situation, are becoming wider. To help you better understand these variations, we have pushed the investigation further. With concrete examples of prices that are resistant and those who decline (page 114) and a tour of France that you can buy if you're lucky enough to have a budget of EUR 500 000 (page 142). On most goods, prices have declined from their level two years ago. But they did not collapse.In the Ile-de-France, for example, notaries emphasize that "the decline in prices recorded between autumn 2008 and summer 2009 was about 10%" low fee payday loans. But the downward trend in prices has "interrupted". "On an annual basis, the decline in prices between late 2008 and late 2009 is more than 5.6%," they add. This year they expect a stabilization of prices. And sounding the alarm. "The resumption of the construction of new housing in the private sector was essential to the recovery of the market. The shortage of quality housing appropriate to the needs of Parisians is short-term risk of a return of speculation.

The network Orpi evokes a "real recovery, but fragile." A word that recurs in several experts. Mathilde Lemoine and speaks of a "housing demand remains fragile because of imbalances persist.Yet the French like stone. After the fall of shares in 2008, the erosion rate of return on financial investments, many households have even rediscovered the charms of real estate, which enjoys a level of trust greater than financial markets. If market participants, professionals and individuals, are reasonable, it could therefore grown out of this crisis.

The purchasing power of households holding back price increases

In the nine programs are, at least for this year, many to sprout and marketing is well underway (see page 148), and some programs, proponents talk about buyers sleeping room not to miss the opening the sales office. Others talk of bidding on the price of land currently for sale. We find places for runaway phenomena.Sign of fine weather sets found for Real Estate? Nobody dares to translate it well. Because we have not yet met for the recovery that is taking shape into a market stabilized and restored. "A major risk of the recovery is that sellers reflect recovery by rising prices," says Orpi. For the market to find its stride, the sellers should stop dreaming about trees that rise to heaven, and that construction professionals are able to reflect the changing purchasing power of buyers in their projects. In a recent study based on the relationship between prices and incomes, Patrick Artus (Natixis) estimates that property prices are still too high (10 to 15% in France). Today, many proponents say, if prices rise too far, the application will not be there because the acquisition of a home no longer go into the budgets of many households.This constraint incomes and high unemployment limit the potential for price recovery. Managing the crisis will be difficult for the economy as a whole and real estate. This is the challenge of coming months to policies and professionals. For individuals who have the means to, global rates, market and taxation are conducive to a real estate purchase.If they have a project, they have a vested interest in the reality.

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"Economic outlook positive: Borrow at low prices

Nicolas Sarkozy unveiled Monday morning during a press conference at the Elysee Palace, his final arbitration on the general borrowing. An announcement comes more than two weeks after submission of the report of the Committee-Rocard Juppe, in charge of determining "the strategic priorities for investment and domestic borrowing. The Head of State took its time in the interval, receiving unions and consecrating a shift on this subject last week in Alsace. An inordinate delay on the part of the Elysee. "To spend 35 billion euros, is not nothing, it takes a bit of reflection," said a government official.

On the merits, the amount and priorities recommended by the two former prime ministers have not caused major problems.The government feels "quite consistent" with the report's proposals: the head of state has already said he would follow "broadly."

Elysee Matignon and paid closer attention to prioritization. The Committee recommends investing 35 billion of public money which, coupled with private funds, could reach 60 billion of new investments. A portion of public money – 13 billion – will come from money borrowed last year by the government to support banks, which have paid much since. The Head of State should announce that in 2010 France will borrow twenty billion more, a level considered tolerable for the public finances by officials of Bercy. A priori, the loan should be exclusively reserved for markets.The idea of opening some individuals, which is mainly political advantage in strengthening adherence to the French investment in the future is rejected by most government advisers who find it too expensive. Nicolas Sarkozy is expected on this very subject this morning.

As for investment priorities, the cursor should be slightly adjusted.Perhaps a little more towards the industry, much less on research – which is carving out the lion's share of recommendations Juppe and Rocard, with a budget of 16 billion euros.

Beyond the substance, the advisers of the Elysee have mostly reworked the governance component of the report: who will handle money and how? "We do not want to create a gas plant," observes one government where one is not willing to sprinkle the funds raised through borrowing.

Matignon should have the task of managing the money

The report Juppe-Rocard proposed the establishment of three branches (a branch of renewable energies, a digital campus and Excellence). "Why create new structures? Both use what already exists, "says an adviser. This will Matignon – "the place par excellence Inter, says one – which should have the task of managing the money borrowed.The question of appointing a minister of the loan, the report rejected by Rocard-Juppe, has not been finally determined either. Rather than a minister, Nicolas Sarkozy could create a post of high commissioner, less political and more easily placed under the authority of the Prime Minister. The bill will be considered large loan January 20 the Council of Ministers.

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»COMPUTER GRAPHICS – How much is 35 billion?

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