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 UK manufacturing growth slowed more than expected in April, demand from the euro area has declined significantly, shows a survey released Tuesday, hinting that the recession risk to be longer than expected.
The Markit / CIPS purchasing managers (PMI) thus fell to 50.5 last month against 51.9 (revised) in March. This figure, the lowest since December, is below the expectations of economists who had expected 51.5.
It remains above the 50 mark that separates growth and contraction, in contrast to similar data in the euro area.
Official statistics released last week showed that the British economy had plunged into recession in first quarter, which could further increase the difficulties of coalition government David Cameron.
Officials of the European Union hopes that the leaders of G20 countries will agree to contribute more to IMF resources in April after the agreement Friday on increasing the power of the wind fire-euro area financial.
The IMF seeks to double its war chest through raising $ 600 billion of new resources to help countries struggling with the fallout from the debt crisis in the euro area.
But most G20 countries have said that before they do inject money into the IMF, the euro area was first put more money to solve the crisis of sovereign debt.
This was done on Friday finance ministers of 17 countries in the euro area in agreeing to carry 500 to 700 billion combined capacity of two rescue fund.
"It is important to ensure that the IMF has sufficient resources to fulfill its systemic role in the global economy and yesterday's agreement within the Eurogroup (…) is very important in this regard, "he told reporters the Danish Minister of Economy Vestager Margrethe, whose country holds the rotating presidency of the European Union.
Finance ministers and central bank governors of the G20 countries must discuss an increase in IMF resources on April 22 in Washington.
"It's time to increase IMF resources. It is in the interest of all countries, the focus is on Europe, but it is very important to recognize that there are also vulnerabilities in other parts of the globe, "added Minister
." I think and hope – and this is to How we work – we will reach an agreement in April, "she said
." We Europeans, we can get to re ; unions spring the Washington sense of accomplishment ", for his part said Jörg Asmussen, Executive Board Member of the European Central Bank
… Five …… major emerging countries, said the BRICS (Brazil, Russia, India, China and South Africa), however, have said they would support an increase if they were accorded a more important within the IMF.
The euro area has already said it would contribute € 150 billion more resources to the IMF. The Czech Republic will contribute 1.5 billion euros, 5.3 billion of Denmark, Poland and Sweden 6.3 billion to 6.9 billion euros.
"The EU calls on other G20 countries and financially strong IMF members to contribute to this effort," we read in a paper for the Washington meeting.
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".
The Strategic Petroleum Reserve in the United States are no longer quite as strategic as before.
While President Barack Obama put on a new release of emergency stocks of the country to counter soaring fuel prices, experts note that the landscape changes logistical striking U.S. oil could complicate his plans.
Certainly, the fact tap into the four giant salt caverns on the coast of the Gulf of Mexico – which contain 700 million barrels of crude oil owned by the U.S. federal government – would almost certainly lower the world oil prices, easing to pump users and providing a boost to Barack Obama before the November election.
Thursday, the price of crude has lost up to three dollars after information from Reuters that Britain was considering with the U.S. release of strategic oil reserves cal in the course of the year.
British officials have said that the timing and volumes contemplated are detailed by the summer, when oil prices often reach a peak.
But the logistics of such a release of crude oil to refiners volunteers is more complicated than ever: if there is little doubt that oil reserves are provided in emergency Ultimately buyers, it may reach them more slowly than does the government hope.
The inversion of a key pipeline linking Texas to Oklahoma will reduce the capacity of the main cavern release of oil reserves, and John is Shages, responsible ; emergency stocks under the Bush and Clinton administrations.
SYSTEM OF ANOTHER TIME
The development of shale oil and crude oil imports from Canada's oil sands has transformed the landscape of Energy. The industry is now trying to move an overflow of oil from the center of the country to the Gulf of Mexico, reversing the logic that underpinned the organization of national strategic reserves .
Emergency reserves of the United States, created by Congress after the oil crisis in mid 1970, was in fact designed primarily to carry oil pipeline linking the Gulf to refineries in the region and other purchasers located further north.
"The fact that the pipelines go (now) to the south, not north is a major change," said Edward Morse, responsible for research on raw materials for Citigroup and formerly an expert e nergétique within the U.S. State Department.
According to the Department of Energy, the U.S. strategic reserves may distribute the oil to 49 refineries with a capacity of more than five million barrels per day (bpd) – about one third of the total capacity of the country.
They are designed to release the oil within two weeks after order and to support a rate of one million bpd for a year and a half, helping to meet 5% of U.S. demand.
It can now free up oil at a maximum rate of 4.25 million bpd, due to damage to one of the storage tanks, said an official of the dice Department of Energy.
But oil industry analysts are skeptical.
Edward Morse deems it unrealistic pace and stresses that have limited logistical problems last summer the flexibility of the government's release of 30 million bpd – the largest in history United States – in response to disturbances affecting the supply of Libyan oil.
The oil from strategic reserves while in competition with the already crude transported by pipelines or tankers, on waterways often overloaded, the logistical capabilities of the country could be insufficient to rapidly absorb millions of additional barrels.
The Energy Department had released an average 743,000 bpd in August.
The sustained improvement in the U.S. labor market continued in February for the third consecutive month, confirming the scenario of a broadening recovery é economic.
The economy created 227,000 non-farm jobs last month, according to statistics from the Labor Department, and the unemployment rate remained at its lowest level in three years, 8.3%.
This is the first time since early 2011 that the new posts remain above 200,000 for three straight months.
The figures for December and January were also revised upward, from 61,000 in total.
Economists polled by Reuters had expected an average of 210.000 jobs created in February after the figure of 243,000 was originally planned for January.
Dexia Credit Local, Dexia's French subsidiary, said Friday it has launched a takeover offer for 700 million euros of subordinated notes issued in November 2005.
The bank stress due to the dismantling of the debt crisis in the euro area, said in a statement that this operation is intended to strengthen the equity "hard" and Dexia its French subsidiary.
"The net result of the sale and implementation of the tender offer will be neutral in terms of liquidity and result in improved equity and hard of Dexia Credit Local ( DCL), "says the bank.
Dexia had said late last year want to recapitalize its subsidiary DCL 4.2 billion, including € 2.5 billion through the conversion of subordinated loans s.
The committee of independent directors to investigate the controversial takeover of UraMin by Areva is expected to conclude Tuesday with a "weak governance", says the Sunday newspaper, citing a "source close "group.
Rene Ricol, charged in 2010 by Nicolas Sarkozy to audit the accounts of French nuclear giant, looking for the same argument, although it acknowledges not Lauvergeon, the former President of the Executive.
The latter said he had no knowledge of mining reports dated from 2008 and 2009 from the geology department of Areva, according to Rene Ricol who put labels on mine reserves and opportunities for exploitation.
"If Anne Lauvergeon has not been informed, the least we can say is that this is a concern in terms of governance," he said, adding that he has had not itself access to these documents during the audit.
"This lack of transparency is unacceptable," he adds.
The purchase of Uramin in 2007 to 1.7 billion euros has forced the giant French nuclear to include in its accounts in 2010 and 2011 provisions totaling close to 1, 9 billion euros to reflect the depreciation of its assets following a drop in uranium prices.
The Industry Minister, Eric Besson, said Sunday he expected the committee's report Tuesday to decide.
"I think we should let those whose work is now shed light on this apparent overvaluation, almost coarse, this mine," he said in the e The Great Mission Visit Europe 1 / i> TELE / Le Parisien.
"This is precisely what the committee of independent directors must say and enlighten. Is it simply a gross error of assessment or do it more? It is for this committee on the one hand and justice, as it has received various complaints now, to say it. "
.. …… "unacceptable practices"
Rene Ricol also condemned the investigations by the husband of pharmacies Anne Lauvergeon
. "These practices are completely unacceptable," he said, calling however "paranoid" reaction of the former president of nuclear group
. He called the protagonists of the record-Anne Lauvergeon, the current leader of the group and Luc Oursel Director of Mining activity Sebastian Montessus to keep their cool. "If they do not subside, it will all end badly."
Lauvergeon Wednesday asked the court to appoint an expert to examine the conditions under which the group commissioned a survey in 2010 related to the acquisition of Uramin.
The Tribunal de Grande Instance of Paris (TGI) announced that it would make its decision on February 29.
Lauvergeon and his lawyers believe that the recipients of the report, ordered society Apic, did not respect the internal rules of Areva.
They say that they include not having alerted the supervisory bodies of the group while the report concluded Apic a possible "fraud" in connection with the redemption.
Lawyers for Anne Lauvergeon protest against an investigation that would have resulted in an alleged espionage husband of the former president of Areva, Olivier Fric, to determine if the had illegally benefited from the acquisition of Uramin.
The former president and CEO of Areva has defended the purchase of Uramin and considered normal for this type of operation can lead to impairment.
European shares erased their gains in closing Wednesday on renewed concern about the ability of Athens to implement a second rescue plan that would avoid a disorderly failure of Greece.
The Paris CAC 40 index ended on a note stable (-0.05% to 3410.00 points, which corresponds to an important point of resistance, the German Dax has yielded 0.08% Eurostoxx 50 and 0.05%. London ended down 0.24%.
The leaders of the European Central Bank (ECB) remain divided on the potential contribution of the central bank to restructure Greek debt, two sources said the area euro Wednesday shortly before the close.
Meanwhile, leaders of the three coalition parties had entered Greek government meeting to agree on the reforms demanded by donors of new exhibitions ; born in exchange for a second aid plan.
Meanwhile, the President of the Eurogroup, Jean-Claude Juncker, announced late in the day for convening a meeting of finance ministers of the euro zone Thursday in Brussels to decide outline a new plan of aid to Greece.
Bank stocks remained the largest increases in Europe (0.56%), while having significantly reduced their earnings. Deutsche Bank took 1.53% and 1.16% BNP Paribas, the two largest increases in the Stoxx 50.
The profit taking continued on LVMH (-1.28%), which sold more than 4.3% since the end of last week of quarterly results has yet confirmed its good resistance to the crisis.
Sanofi fell by 1.7%. The company said results in growth in the fourth quarter of 2011, but 2012 will be more difficult with the loss of several patents of its major drugs.
Societe Generale said Thursday in an email to the press that the goal of equity of 9% at end-June 2012 without resorting to the market, after testing by the European Banking Authority (EBA ).
Earlier in the morning, the French bank whose needs additional capital was estimated at 3.3 billion euros, said it will recapitalize on its own without explicitly rule out an increase of capital.
For avoidance of doubt, SocGen said that it does not seek public money or raise capital in financial markets.
Under the agreement reached on the night of Wednesday to Thursday at the conclusion of a new double top, the European authorities have agreed to recapitalize their banks to the tune of 106 billion euros, 8.8 billion for French banks.
BNP Paribas, whose capital needs were assessed by the EBA to 2.1 billion euros, also rejected any appeal to the market.
