Financial News Headlines

The French Building Federation says the crisis and the austerity measures will be expensive jobs. Last year, the sector had created 9000, after losing 20,000 in 2010. Volume, the activity is expected to fall 1.9% in 2012, after increasing 1.2% in 2011 and fell 3.8% in 2010.

The construction sector is expected to lose 35,000 jobs in 2012 due to financial crisis and austerity, who "broke" the upturn in the sector in 2011, said Tuesday the French Federation of the building FFB. In 2011, the sector had the opposite created 9,000 jobs, after losing 20,000 in 2010, including acting."The crisis of public debt in euro area and fiscal adjustment policies have shattered the movement of bringing economic recovery and still bears a few months, the quantitative improvement of our markets," said the president of the FFB, Didier Ridoret at a press conference.

Volume, the activity is expected to fall 1.9% in 2012, after increasing 1.2% in 2011 and fell 3.8% in 2010, said Didier Ridoret. It is expected to decline in all areas, with a 2.8% decline in new housing, 1% in the nine non-residential housing, and 1.7% improvement in maintenance. While in 2008 and 2009 the use of the building had been "preserved", "dyke will drop" in 2012 with a script "close to that of year 1990, which will permanently affect the production system," warned the FFB.

The main European stock markets have returned to equilibrium in mid-session, while Milan and Athens rose more sharply and a rally promises to Wall Street, in the hope that Italy and Greece are quickly new governments and implement the necessary reforms.

The CAC 40 index yielded 0.08% at 3072.60 points around 24:15, after having started losing more than 2%, while the Euro Stoxx 50 took 0.19% and Milan fell by 0.48%.

As part of its Treasury bill auction, Italy has sold five billion euros in vouchers to 12 months, with a yield of 6.09%, its highest level since September 1997, against 3.57% in its previous auction which took place October 11.

China on Thursday welcomed the consensus reached in the night by Europeans around a plan to end the crisis for the euro area and expressed his support for the measures announced.

After more than ten hours of the summit, the leaders of the euro area have come in the night from Wednesday to Thursday to reach an agreement on the restructuring of the Greek debt, capacity building fund to support the euro and the recapitalization of banks.

"We hope that this consensus (…) is conducive to boosting market confidence," said the spokesman of the Chinese Ministry of Foreign Affairs during a press conference."China supports the measures taken by the EU to stem the debt crisis."

"China is willing to make joint efforts to safeguard the recovery and growth of the global economy," said the spokesman, noting, without giving details, that Beijing was ready to increase its cooperation with the EU investment, trade and finance.

Chinese President Hu Jintao is scheduled to meet Thursday afternoon by telephone with his French counterpart Nicolas Sarkozy.They will discuss in particular the next G20 summit scheduled for early November in Cannes.

Nicolas Sarkozy had announced last night that China could participate in the creation of a "special vehicle" to multiply the firepower of the European Financial Stability (EFSF), the bailout funds in the euro area.

The NYSE has closed lower Tuesday due to disappointing company results and tried not bode well for the health of the U.S. economy, while the uncertainty surrounding the euro zone has amplified the trend.

The Dow Jones finished down 1.74% or 207.00 points to 11,706.62, while the S & P 500 ended on a down 2.0%, or 25.14 points, to 1229.05.

The Nasdaq composite, for his part yielded 2.26% (61.02 points) to 2,638.42.

The meeting of finance ministers from the euro area scheduled for Wednesday was canceled, but the leaders of the European Union still plan to meet the same day summit, as expected.

"Everyone thought that with the meeting and the summit, the European problem was more or less settled, but the announcement of the cancellation has created a very negative feeling about the chances of a resolution in the short term," commented Steven Neimeth of SunAmerica Asset Management.

On the corporate side, the diverse group was disappointed by 3M reported results below expectations in the third quarter and lowering its forecast throughout the year.

The title sold 6.25% to 77.04 dollars.

The UPS Logistics Group has meanwhile declined by 2.14% to 69.35 dollars after the Director General indicated that predict the U.S. economy continue to grow slowly.UPS, however, reported an increase in profits.

Netflix suffered a spectacular fall from 34.9% to 77.37 dollars after announcing a loss of subscribers higher than expected.

The Spanish government said Thursday the postponement of the privatization of two major airports of the country, candidates clashing with the acquisition financing difficulties, a decision that deprives the state of several billion euros in revenues in the crisis debt.

The Department of Public Works said that the operation was postponed for three months, after the parliamentary elections of 20 November, which could, according to polls, give power to the Popular Party (PP) today in the opposition.

But the PP is opposed to the sale of the airport and accused the Socialist government of Jose Luis Rodriguez Zapatero to have rushed into a hasty operation by selling the assets of choice at bargain prices in a financial context lackluster.

Last month, the government had already put a stop to the proposed IPO of the National Lottery on the grounds of market conditions.

Banking sources have said that private investors were reluctant to engage in these privatizations few weeks of the election.

Seven groups of investors had expressed interest in the operation, the government hoped to five billion euros.They included, alone or combined funds, the German airport operator Fraport and Spanish groups Ferrovial and Acciona Infrastructure.

TOO EXPENSIVE, THE WRONG TIME

The government demanded too high a price for the Madrid Barajas airport and El Prat in Barcelona, ​​said sources close to the discussions.

"The schedule would not allow privatization to complete just before the elections.But there was also a big difference in price compared to what the government called for the two airports, including Barajas, "said a senior bank in Madrid.

"For example, two funds that had joined the Spanish group Ferrovial Infrastructure sought a return on investment of 12-15%, while Barajas did not offer more than 10%," he added.

An American manager explained his part that "banks may have had the last word on this issue because it is they who will finance the transaction."

Most candidates have financed the operation with 20 to 30% of equity from the balance of the loan, he added.

"Given the pressure on Spanish banks by higher funding costs and rising ratios of their loans / deposits, they increasingly tend to cut back on corporate financing right now," continued the manager .

European shares have gradually reduced their gains Monday afternoon due to lack of more precise statements confirming the speculation of interest rate cuts from the European Central Bank (ECB) and new measures to support the banking sector.

The announcement 16h to a decline in home sales in the United States in August has increased the movement.

At 4:37 p.m., the CAC 40 index gained no more than 0.4% to 2821.25 points, while he earned more than 3% at mid-session. The London Stock Exchange lost 0.51%, Frankfurt earns more than 1.1% and 1% EuroStoxx 50E.

"The increase in this morning was purely related to rumors. In the absence of confirmation, the markets are reducing their earnings for several hours," said one speaker. "What the market expects, it is clear statements and figures."

U.S. stocks opened higher Wednesday on hopes of resolving the debt crisis in the euro area.

In early trade, the Dow Jones gained 0.3% or 34 points, to 11,135.74 points, while the Standard & Poor's 500 advanced 0.44% or 5.18 points at 1178.05 and the Nasdaq Composite took 0.8% or 20.43 points to 2552.45 points.

The European Commission will soon propose options for the introduction of euro bonds, confirmed Wednesday the European Commission President José Manuel Barroso.

Values, Dell gained 1.9% after the announcement of a new program to repurchase shares representing five billion dollars.

European shares rebounded Tuesday morning after diving the two previous meetings, pending the opening of Wall Street following the long weekend of Labor Day.

Investors also await the publication in the afternoon of the ISM services in the United States.

Around 10:00, the CAC 40 index contains 0.9% to 3027 points, after seeing fluctuated in both directions and tested, as before, the threshold of 3000 points. The benchmark index of the Paris stock exchange has dropped over 8% in two sessions.

"There was an overreaction, perhaps related to the closure of Wall Street.Today, there is a small spring effect, but the session will begin only with the opening of New York and the ISM, "said David Thebault, head of quantitative trading at Global Equities.

Other major European markets will also describe: London is 0.84% ​​and 0.58% Frankfurt. Of the European indices, the EuroStoxx 50 wins 0.7% and 0.7% Eurofirst 300.

Fears of a deepening crisis of debt in the euro area and its impact on the banking system, however, continue to weigh, especially financial stocks.

The Stoxx banks index remains at its lowest in 2009, around 130 points.In Paris, Crédit Agricole lost 1.7% and still Natixis 1.5%.

Gold is sought and is trading at 1873 dollars, after hitting a new record in 1920 dollars and the performance of the German government bond (Bund) 10 years back a little to 1.86%.

The euro recovers against the U.S. dollar, treating around 1.42 dollars.

Why the markets are yo-yo? The stock market crash threat he savers? The world will he fall back into another recession? Our responses. Facts: exchanges plunge

For almost three weeks as global stock markets loosen. The CAC 40 has lost 22% since July 22. After a strong rally Thursday, the Paris Stock Exchange Friday widened its losses. Bank stocks were particularly severe since Wednesday because of speculation about a possible loss of the triple A rating of France. Societe Generale, which lost nearly 15% Wednesday, asked the AMF to investigate rumors that she believes she suffered.

See also:

Ten figures to be taken on the stock market crisis Why France French banks worried the markets: the reasons for the panic market crisis: the sequence of events real victims and losers in the wrong stock market crash market crisis: that investors may

The clap of thunder: the loss of "AAA" American

Standard and Poor's downgraded by one notch on July 5 the U.S. debt rating of "AAA" to "AA +". A historic first for the country. In fact, the agreement reached in extremis August 2 to Congress to raise the ceiling of the debt and avoid default has not satisfied the rating agency.It is estimated that the compromise between Republicans and Democrats is not nearly enough to reduce debt astronomical U.S., which reached 14,300 billion.

Given the position in the global economy of the most powerful and safe haven status of the dollar, the main international reserve currency, the S & P's decision could be devastating for the entire global finance. The announcement did not fail to create a renewed tension in the exchanges.Ironically, investors remain confident in the ability of the United States to honor their debts: U.S. borrowing are still very popular and their rates have not risen.

See also:

The United States lost their triple A, what consequences? "You have to detoxify the rating agencies"

The context of substance: the fears of another recession

The markets are worried about the health of the global economy. As well as one side of the Atlantic than the other, the news is bad. United States doubts about the strength of the economy are stronger every day, with the accumulation of worrying signs. There is talk of increasing the risk of the economy falling back into recession, the "double dip recession." GDP grew by only 1.3% in the first half and unemployment remains very high level of 9.1%.But the S & P's decision to degrade the American note is likely to further seal the U.S. economy. For focusing on the debt problem, it prevents the state to implement the fiscal stimulus that would be needed in the short term to strengthen the recovery. So the Fed that holds the ammunition last, that of monetary stimulus. She has pledged Tuesday to keep rates near zero until 2013 and continue to buy treasury bills as those they would hold to maturity.

In Europe, Spain and Italy posted increases of 0.2% winded and 0.3% in the second quarter. France does no better: After starting the year with a bang, French growth was zero in the second quarter and unemployment started to rise.The global recovery is no longer as strong as it appeared in 2010.

See also:

Obama has the means to revive the U.S. economy? S & P precipitates Does the United States into a new recession? Why unemployment in France does not drop

The contagion of the crisis of debt in the euro area continues

The markets are finally tormented by the fear of contagion from the crisis in Greece to Italy and Spain, heavily indebted, and which together account for 30% of European GDP. Therefore, the rates at which these two countries were borrowing at record levels. In fact, the second Greek rescue plan developed in July is still not enough to reassure markets. Although eager to pass the baton to the relief fund, the ECB has once again agreed to put out the fires and expressed its readiness Sunday to buy the debt if the Spanish and Italian investors withdraw.To make matters worse, the note of Cyprus has been degraded by the three rating agencies. According to Fitch, the island now needs a rescue package of the EU.

See also: Spain and Italy do they need a plan to help?

Oil prices have closed on a fall of almost 6.5% Monday in New York, the black gold with world stock markets suffered as the decision of Standard & Poor's to lower the credit rating of the United States.

On the New York Mercantile Exchange (Nymex), the September contract on the U.S. crude (WTI) ended on a loss of 5.57 dollars, or 6.41% to 81.31 dollars a barrel.Meanwhile, Brent yielded 5.19%, or 5.68 dollars to 103.69 dollars.

Brent, which displays and a decline of more than 10 dollars since the beginning of August, fell below its moving average of 200 days.

"The consequences of the deterioration of the U.S. S & P, also degrades the world oil market," said Phil Flynn, analyst at PFGBest Research.

The S & P's decision has exacerbated investor concerns about the state of demand for crude in the United States, world's largest consumer of oil.