China cut Saturday the amounts that banks must hold in reserve, thereby increasing their lending capacity of 400 billion yuan (48 billion euros), a measure taken to e avoid the risk of a sharp slowdown in the second largest economy.
People's Bank of China reduced the reserve ratio by 50 basis points, bringing it to 20.0%. This new amount will be effective next Friday May 18
This is the third decline in six months of the required reserve ratio, a decision just one day after the publication of macroeconomic data for the month of April have concerned investors, including the numbers of industrial production.
Economists had indeed thought that the growth rate of gross domestic product (GDP) of 8.1% over one year was a record low and that the activity would be departing in the second quarter. Considering the recent statistics, this scenario does not seem to confirm.
"The central bank should cut its reserve requirement ratio after the first quarter. She missed the best possible time, "said Dong Xian'an, chief economist at Peking First Advisory
." A drop TODAY 'Today will have a lesser impact. The Chinese economy will therefore be more vulnerable to weak global economic conditions and a slowing Chinese economy will in turn have a negative impact on the global recovery. "..
…… "The uncertainties surrounding the global and Chinese economies increase," said Dong Xian'an
… …… Economists estimate that China's growth should be 8% per year to absorb the annual flow of new entrants to the labor market and rural land left to find work in the factory
. The central bank announced its first drop in the ratio of bank reserves for three years on November 30, lowering the rate of 50 basis points.
According to a Reuters poll conducted in January, economists estimate that the central bank will reduce the reserve ratio of 200 basis points in total in 2012, bringing it to 19%.
Moreover, despite the inflationary risks, some believe that lower interest rates is not excluded.
"The problem is that loan demand from companies is very low, therefore the lower reserve requirement ratio is not as effective as lower rates of intere ; t, because a decrease in the ratio of reserves does not change the cost of loans, "said Liu Junyu (China Merchants Bank).
"If the economy continues to be hesitant, it is likely that the government will opt for a lower interest rate."
The insurance group Axa announced Friday a stable revenue for the first quarter of 2012 and said he hoped to have decided the fate of its private equity subsidiary, Axa Private Equity, of By the end of the year.
Axa has confirmed the end of September to have committed "a strategic review" for the national champion of private equity but talks with potential buyers seem to have since stalled. (And see)
"A priori the outcome and the results of this strategic review, it is hoped that this will be completed before the end of the year," said Chief Financial Officer Gerald Harlin at a conference call to discuss the indicators of activity of the group for the first three months of the year.
The fate of this subsidiary represents some economic issue for France, say some observers.
Axa Private Equity is indeed a major investor in the territory and its French base becomes even more desirable for new financial rules could scarce investment capital in companies.
The essential part of its business, the French insurance giant announced a turnover up 0.8% to 28.056 billion euros for the first quarter.
The growth in business damage (3.3% to 9.973 billion euros) offset the virtual stagnation of the life segment and Savings (-0.2% to 15.956 billion of euros) and a lower turnover in the management of assets (-9.6% to 827 million euros).
Gérald Harlin said these results were in line with the strategic plan for 2015 presented by Axa last year.
This plan would redeploy some capital to the group of high-growth markets and, more generally, to focus on margins and volumes.
The CFO also said that the situation in Greece and the euro area was creating a climate of "volatility" in financial markets but in Axa took full account.
"It positions itself especially on segments that are least sensitive (…). This is why we are fast growing activity on the protection, welfare," at he said.
He nevertheless admitted that the life insurance segment continued to suffer from macroeconomic conditions in Europe.
"We're in a world of low interest rates and are done with," he concluded.
The German automaker Volkswagen said Thursday an operating profit increased in the first quarter to 3.2 billion euros against 2.9 billion euros a year earlier , thanks to record sales of vehicles.
This is an above analysts' forecasts, who on average expected a profit decline to 2.7 billion euros.
Around 8:10 GMT, action Volkswagen earned 4% to 131.25 euros, while the European sector index gained the automotive 1.6%.
The action is Danone rebound Monday, with investors relieved after the announcement of the takeover by Nestle's division of child nutrition Pfizer, a redemption of $ 11.85 billion which the French group was also in the running.
At 2:50 p.m., the title Danone raises of 1.83% to 53.39 euros in a market down sharply (-2.15%).
"The rise in the stock is clearly related to the fact that it's not Nestle and Danone buys Pfizer infant nutrition. The price is very high and the market would like Danone uses his money for something else, "said one operator
. L action Danone had lost 3.55% Friday following a tip that he was outbid and proposed $ 11 billion to buy up Pfizer Nutrition
…. Analysts say ….. Danone had not the means to finance a transaction of this magnitude, even if it reduced its debt by nearly half since the acquisition of Numico in 2007 to 12.3 billion euros
. Danone's net debt was $ 6.6 billion end of 2011 euros, against 12 billion after the acquisition of Numico.
Natixis, the analyst Pierre Tegner observes that "the strategic importance of the lost battle (against Nestle) depend on the group's ability to recover some assets, either in Asia Southeast Asia (Philippines, etc..) and / or Latin America. "
According to Kyodo, Danone could increase its stake in Yakult Honsha to 28% against 20% today, and asked the group of Japanese drinks to name one of its managers to an executive position.
The Group of Twenty (G20) pledged Friday to give the International Monetary Fund (IMF) over $ 430 billion of additional resources to identify the debt crisis of the euro area.
The agreement doubles the capacity of the IMF loan, which was the goal set by its Executive Director Christine Lagarde at the opening meetings of the IMF and World Bank this weekend.
"There are firm commitments to increase resources available to the IMF more than $ 430 billion, in addition to the planned quota increase under the reform of 2010" , declared in a statement the finance ministers and central bankers from the G20, referring to the project to give emerging countries a say in the larger fund.
U.S. President again pleaded for taxation at 30% of annual revenues in excess of one million dollars. Rival in the White House, Republican Mitt Romney, is directly targeted: his fortune is estimated at between 190 and 250 million. U.S. President Barack Obama arrives at a rally in Florida on April 10
Barack Obama pleaded Tuesday for the "rule Buffett," a rebalancing of tax scales to charge more for the richest Americans, a way to embarrass the multimillionaire Mitt Romney, his likely opponent in the presidential election. "What hinders our entire economy is the growing gap between the super rich and everyone else," said the American president during a speech in Florida (Southeast), a crucial state on the electoral map for the presidential Nov. 6 where he is seeking a second four-year term.
"I ask you: what is the best way to strengthen our economy? Provide $ 150,000 in additional tax relief to every millionaire and billionaire? Or invest in education, research, health and our veterans? "said Obama at a university in the city of Boca Raton, facing an enthusiastic crowd, which chanted" four more years! " The president has defended the September 2011 "Buffett rule", the taxation at least 30% of annual revenues in excess of one million dollars. The chairman stressed that it is unfair that the multibillionaire Warren Buffett, are among the world's wealthiest people, is subject to a tax rate lower than his secretary employed, due to a tax code that taxes less capital income than labor. Warren Buffett himself has said he supported this measure.
The Senate, dominated by allies of Mr. Obama should make Monday a procedural vote on this device. But Republican opponents of the president have said their hostility and can block it. Obama's insistence on the "rule Buffett" seems primarily intended to put on the defensive opponent Mitt Romney, became even more conservative favorite of the primary on Tuesday with the abandonment of its main competitor Rick Santorum. The president did not mention the name of Mitt Romney, merely ironic about the presidential candidates "that should not be appointed" and that according to him are lawyers from both deficit reduction and a reduction in taxes for the rich.
Mitt Romney only pays 15% tax
Mitt Romney, a former investor whose fortune is estimated at between 190 and 250 million dollars, be admitted subject to a tax rate of 15% despite annual revenues of over $ 20 million in 2010 and 2011. It thus benefits in particular, as many wealthy Americans, niche tax changes introduced in 2001 and 2003 under the aegis of former Republican President George W. Bush. The White House says that Americans appearing in 0.1% of the highest incomes pay taxes now represent 26% of their income, against 51% in 1960, while members of the middle class have seen in the same time their tax rate from 14 to 16%.
The discount on the carpet of the "rule Buffett" comes as Americans must report their income before April 17 and may be more receptive to such a speech. The Republican camp has fired back Tuesday stressing that what they called "Buffett tax" would raise no less than 50 billion dollars in ten years, while the federal government debt exceeds 15,600 billion . And communications director for Mitt Romney, Gail Gitcho, said that "President Obama is the first president in history to openly campaign for reelection on a platform of raising taxes." Former President Bush himself on Tuesday defended the tax cuts of 2001 and 2003, during a speech in New York. "If we increase taxes, we take money from the pockets of consumers," he said in a rare foray into politics since leaving the White House in January 2009.
Wall Street has stalled Wednesday, impeded in its progress begun several months ago by declining sectors associated with macroeconomic risks, such as finance and energy.
The Dow Jones Industrial 30 yielded 0.35%, or 45.57 points, to 13,124.62. The S & P-500, wider, lost 2.63 points, or 0.19%, to 1402.89. The Nasdaq Composite Index advanced 1.17, however, points (+0.04%) to 3,075.32.
The S & P 500 benchmark index fund managers, however, retains a gain of approximately 12% since the beginning of the year.
"We reached a plateau, but basically, the deal has not changed (…) There could be a setback but I see the stock market to grow to 1,430 or 1,450 items, "said Joe Benanti, CEO of Rosenblatt Securities, referring to the level of the S & P 500.
The former real estate sales declined in February against all expectations in the U.S. and inventories of unsold homes increased, according to data released Wednesday by the National Federation of Officers Real Estate (NAR).
This statistic interrupts a recent run of good macroeconomic indicators and a reminder that the housing market, considered key to a sustainable recovery in the U.S., is still not completely out of case.
Despite rising oil prices, the S & P energy grouping values fell 1.04%. That financial stocks lost 0.43% after rising on nine of the last 10 sessions.
"Some parts make me say that we are perhaps at the beginning of a correction of up to 4%: the relative poor performance of industrial and energy , the reversal of financial, "said Seth Setrakian, co-leader of the U.S. equities department at First New York Securities.
"Investors are waiting in general the beginning of a new quarter to regain some of their beads. This can happen earlier if everyone expects the same thing. "
In a note to clients, Goldman Sachs said, however, that the prospects for equity market returns, compared to bonds, are the best in a generation
. "Given the current valuations, we think it should say" goodbye for a long time "for obligations and start" buying long "on shares," said the middle .. The title
……. Oracle fell 2.29% to 29.41 dollars after posting its quarterly results yesterday, marked s in a drop in revenue from hardware sales.
The action Hewlett-Packard for its part, yielded 2.17% to 23.46 dollars after the software giant announced the merger of its divisions PCs and printers as part of a major reorganization designed to generate savings and boost growth.
The Nasdaq Composite Index, heavily weighted in technology, however, was brought up by 2.46% to 13.72 of the action after the developer Zynga online game announced ; redeem OMGPOP, the manufacturer of the game popular "Draw Something".
United Parcel Services (UPS) agreed to pay nearly 5.2 billion euros to buy Dutch rival TNT Express, announced Monday the two groups, an operation that will allow the gen ; American ant-mail and logistics to gain strength in Europe.
TNT said its management board and supervisory board would support unanimously the offer of 9.50 euros per share, higher than 0.50 euro to the initial offer submitted in February.
The largest shareholder group, PostNL, which holds 29.8% stake, has also expressed support for the operation, which will create a global leader displaying 45 billion euros turnover.
The joint statement from both groups noted that the offer represents a premium of 53.7% over the closing price on February 16, the day before the announcement of the opening of discussions between the two groups.
UPS, already world number one, had long been interested in TNT in order to develop in Europe, including Britain, France and Germany.
The tender offer ends years of speculation about the future of the Dutch group, divided by PostNL, the Dutch post and the year listed separately last.
Faced with declining profits and the unfavorable business outlook for 2012, management of TNT was subjected to pressure from shareholders "activists" such as investment funds Jana Partners and Alberta Investment Management.
Friday, UPS had said further discussions "constructive" with TNT, four weeks after the latter's rejection of its initial offer to 9.00 euros per share.
The U.S. group said Monday that the purchase of TNT will have a positive impact on its financial results for the first year and is sure to get all the official permits for the conduct out.
While global stock markets fell Tuesday for fear of failing the Greek debt restructuring, the European Commissioner for Economic and Financial ensures that the operation "should proceed smoothly."
Stop the panic that gripped markets. Two days before the deadline given to private creditors of Greece to accept or not the deletion of part of the country's debt, the European Commissioner for Economic and Financial Affairs, Ollie Rehn, steps into the breach. In an interview with Le Figaro, he argues that the operation "should proceed smoothly." And adds: "From the information we collect, the debt swap should take place smoothly, as the transaction is financially attractive to the private sector"
The Finnish Commissioner was asked about whether the fact that the dreaded "credit default swaps" (CDS), these insurance contracts on default of payment to be triggered if the debt exchange operation went wrong. "It is not our preferred scenario. Instead," said Rehn, while anxiety has spread in the markets Tuesday.
European shares ended the session sharply down and banking stocks were particularly hard hit, indicating investors fears of a default of Greece as we approach the result of the restructuring of its indebtedness imposing. The rate of participation of private creditors should be at least 75% for Greece to erase part of its debt (107 of the 200 billion held by private creditors) and receive the second aid package of 130 billion approved last week in Brussels.
About a third aid plan, referred to by the German weekly Der Spiegel Sunday, "this is a hypothesis that has been circulating among Cassandra, I am not …", Rehn sweeps. "Let's focus instead on the implementation of the second rescue plan, which provides a unique erase debt," he told the BBC.
The Commissioner also stated "that the risk of explosion (the eurozone) is behind us." But "the recession is here, and unemployment is worrying," he says. "We are at a critical time in which member states must keep their budget commitments, to make the necessary structural reforms, while strengthening the firewall to anti-crisis 750 billion euros in Europe," Rehn recommends.
The G20 finance ministers, meeting this weekend in Mexico City, engaging in a statement in April to review progress made in strengthening the resources of International Monetary Fund, said on Saturday from a source of G20.
The source said the draft statement, which must be finalized during meetings scheduled in Mexico this weekend, made loans and bilateral borrowing arrangements options for improve the firepower of the IMF.
"Progress in this strategy will be discussed at the next ministerial meeting in April," the draft communique quoted by the source. These reports were confirmed to Reuters by another official of the G20.
The IMF wants more than double its capacity to respond by raising $ 600 billion of new resources to deal with the consequences of the crisis of sovereign debt within the eurozone. This project creates a reluctance in some countries, foremost among them the United States and Canada.
Mexico, who chairs the G20, has pushed for the issue of IMF resources is discussed along with the initiatives that the Europeans could be taken to resolve the crisis sovereign debt, at the meeting of finance ministers and central bankers this weekend in Mexico City.
Some countries indicated that no discussion on the strengthening of IMF resources could be envisaged as the Europeans have not strengthened their own firewall to stem the debt crisis, an issue they must be discussed at the European Council of March 1 and 2.
