Hot Economic News Releases

The Japanese Panasonic announced Friday include a record annual net loss of almost eight billion euros for the 2011-2012 fiscal year, due largely to the decline in demand for TV sets in a highly competitive environment.

For the year ending in late March, the maker of consumer electronics forecasts a deficit of 780 billion yen (7.8 billion euros). The market was expecting before the revised forecast a deficit of 470 billion yen, according to ThomsonReuters I / B / E / S.

Rival Sony said Thursday expect an annual loss of 220 billion yen (2.2 billion euros), almost twice more than expected by the market, highlighting the extent of tâ ; che the new boss of the group, Kazuo Hirai.

For the quarter October-December, the third year, the net loss of Panasonic amounts to 197.6 billion yen. The market was expecting a net loss of 8.4 billion yen.

The action Panasonic has dropped by 45% over the last 12 months. Thursday, she finished her read down for over 30 years.

A depreciation of 798 million euros spent on Greek sovereign debt held in the portfolio has plunged the quarterly Commerzbank in the red and forced the second German bank to abandon its annual targets.

"We continue to be incurred by our original goal of an operating profit of four billion euros for the group, but given the market environment, we will not be able to reach next year" , said Friday Martin Blessing, CEO of Commerzbank.

In early trade on the Frankfurt Stock Exchange, the title of the bank fell by 5.53% to 1.656 euro while the index grouping the European banking stocks gained 0.61%.

Having already reduced its exposure to the most indebted countries in the euro area over 20% to 13 billion euros, a discount of 52% spent on the Greek securities, Commerzbank said it would continue to reduce its portfolios of sovereign debt issued by Portugal, Italy, Spain, Ireland and Greece.

The bank charged an operating loss of 855 million euros in the third quarter against a profit of 116 million a year ago and a Reuters consensus of 683 million euros.

The profits generated by the core business of Commerzbank – loans to medium-sized German companies – continued to be substantial, said the bank to 344 million euros.

French banks, which publish their accounts in early November for the third quarter, are expected by investors on their performance in market activities and their cost of funds after the market storm of summer has suddenly melted during their Stock Exchange.

Beyond the impact of depreciation on new Greek debt as a result of the Europe Agreement of 27 October and an expected revaluation of debt that will boost results, they should undergo a significant decline in their income banking and investment (BFI), analysts said.

Institutions such as Barclays, UBS and the Swiss German Deutsche Bank, have all recorded sharp decline in income and profits in this sector.

"Given the volatility in the markets since this summer, we will look closely at the impact on market activities," said Christophe Nijdam, an analyst at AlphaValue.

"We'll see if there was blood in the trading rooms in both equity trading activities (actions, Ed) and fixed income (interest rates, Ed)," he says.

The quarterly results will also be an opportunity for French banks to specify the measures they intend to implement to enhance their financial strength to cope with the debt crisis in the euro area in early October that forced the Franco-Belgian Dexia decommissioning.

As part of the recapitalization of the banking sector, the European Banking Authority has estimated that a total of 8.8 billion euros deficit capital of BNP Paribas (2.1 billion), Societe Generale (3.3 billion) and BPCE (People's Bank, Savings Bank) (3.4 billion).

Unions and bankers expect in the context of a degradation of the environment that they are announcing job cuts, especially in their BFI.

The head of the European Financial Stability Fund (EFSF) on a visit to Beijing assured, there is no "negotiation" on the future role of China in the fund but "regular consultation". Nicolas Sarkozy (bottom right) attacked Silvio Berlusconi (bottom left) at the European Summit of October 23, 2011

"There are no ongoing negotiations with China" in Chinese investment in the European Financial Stability Fund (EFSF), said Friday in Beijing's director, Klaus Regling, citing only "regular consultation". Mr. Regling is visiting China in the wake of the announcement of an agreement anti-crisis in Europe which includes strengthening the capacity for action of the EFSF to help indebted countries.His visit was seen as a sign that the EFSF would seek financial support from China, the second global economy has a huge cushion of reserves and already has European debt.

But "there are no ongoing negotiations with China," only "regular consultations at an early stage," said Regling warning: "There will be no agreement today" . "I had contacts with the Chinese authorities, (which) are regular buyers of bonds EFSF" Regling said at a news conference, adding that Asia had acquired 40% of the bonds Fund this year. "China will find it a worthwhile investment," said the boss of the EFSF. Since the beginning of the year, Japan has in turn invested 2.68 billion euros, or 20% of total loans issued by the EFSF.

"Until now the only way we asked investors to participate (the fund) was to buy bonds. There was no other instrument," said Mr Regling. But "now we are developing new tools and we will see who will participate," he said without elaborating. "Foreign exchange reserves of China are increasing every month, so there is a need for investment," said Mr. Regling about these reserves of 3,200 billion.

The Chinese "are interested in attractive and safe investment," he noted, before talks at the Ministry of Finance and the Central Bank. The euro area has decided at its summit in Brussels crisis Wednesday and Thursday to multiply the firepower of EFSF for countries in difficulty, Italy or Spain. Its response capacity would increase to 1,000 billion euros.

Gross domestic product (GDP) grew by U.S. a little more than expected in the second quarter, helped by consumer spending and export growth than initially estimated, according to figures released Thursday by the Commerce Department.

The final figure for growth in the U.S. economy was revised upward for the second quarter, up 1.3% of gross domestic product.

So a return to the first estimate, which was revised down to 1.0% in late August.Analysts had expected a growth rate of GDP revised up to 1.2%.

Final sales increased 1.6% against 1.2% in the first estimate and consumer spending were revised to 0.4% to 0.7%.

The PCE price index rose 3.3% over the quarter (revised from 3.2%). Economists surveyed expected an indicator to 3.2%.

The index "core", followed closely by the Fed, rose 2.3%, its largest increase since the second quarter of 2008.The previous estimate was 2.2%.

The figures released also show an increase in corporate profits after tax of 4.3% in the second quarter, the largest increase of this statistic in a year. The increase was only 0.1% in the first quarter.

Political tensions in the United States and the impact of the debt crisis in Europe have eroded confidence and fears of a return of U.S. recession.

The cautious optimism of economists now expects a further contraction of GDP will be avoided.Production companies continue to grow because, although at a slower pace since the beginning of the recovery.

In detail, the revised figures show, in fact more of a slower growing economy as a future recession.

Export growth is better than initially estimated at 3.6% instead of 3.1%. That of imports, however, is lower at 1.4% against 1.9%.

The trade deficit is less, and trade has contributed to GDP by 0.24 percentage point.

The ECB president, Jean-Claude Trichet, said Saturday that the budgetary situation in the euro area was better than elsewhere. A response to criticism from the United States on the European management of the Greek crisis. The ECB President Jean-Claude Trichet reiterated, at a summit of the Eurogroup Saturday, September 17 in Wroclaw, the budget situation in the euro area was better than in other rich countries.

The Europeans responded Saturday to criticism by the United States on their management of the debt crisis, saying that the budgetary situation in the euro area was better than other major industrialized countries.Against the attack came from Jean-Claude Trichet, president of the European Central Bank (ECB), following a meeting of European finance ministers in Wroclaw, Poland.

"Taken together, the EU and the euro area are in a situation probably better than the economies of other major developed countries," he said to the press. Proof of this is: the deficit (public) of the euro area is expected to grow by about 4.5% of GDP this year, said the head of the Mint. The United States, which are struggling under a huge debt, expecting a deficit of 8.8% this year.

Disagreements over the financial tax

His comments appear as a response to statements on the eve of U.S. Treasury Secretary Timothy Geithner, who came to Poland to lecture Europeans on how to deal with the debt crisis that worries the world now. Mr.Geithner urged the euro zone to end the divisions on how to resolve this crisis, particularly between the ECB and European governments, warning against the risk "catastrophic" of disunity.

EU ministers have not enjoyed these recommendations. In contrast, Germany has suggested the United States to support the idea of ​​a tax on financial transactions, which would release the necessary funds. What the U.S. Secretary flatly refused, according to comments reported by a minister.The subject of the tax is divisive within Europe itself, since France and Germany are in favor while the British, worried about the future of the City of London, are opposed.

20,000 march against austerity

"There are significant divisions on this issue," acknowledged the Polish Finance Minister Jacek Rostowski, explaining that many states fear that a tax on financial transactions confined to the European Union "to succeed simply that transactions move outside the area. " The Belgian Finance Minister Didier Reynders, defended the tax Saturday. Failing to implement it globally, "we will do in the European Union, and if not possible, in the euro area," he said."It's a technically simple, economically viable by the financial sector, financially productive and politically correct", pleaded for its part the European Commissioner for Financial Services, Michel Barnier.

The meeting of European ministers, which began Thursday, ended on Saturday against a backdrop of protests against austerity in Europe, the appeal of the European Trade Union Confederation (ETUC). Polish police counted 20,000 demonstrators. Organizers were expecting more than 30,000. The event took place while the situation in Greece empire every day and the meeting of Wroclaw has failed to progress whatsoever on the implementation of the second aid plan in the country.

Monday teleconference between the troika and the Greek Minister of Finance

Without this rescue plan of nearly 160 billion euros, the country is threatened by a default. Mr.Reynders has predicted that the rest of the debt crisis in Europe would last for "one or two years" and that a legal guardianship of Greece – already well underway – will probably be necessary. The file blocking Greek in particular the requirement Finnish financial guarantees in exchange for new loans. "We negotiate continuously, but there is nothing new for now," said Saturday the Finnish Minister of Finance, Jutta Urpilainen.

Another source of uncertainty, the troika of donors of Greece (EU, IMF, ECB) does not return date in the Greek capital, while its presence in Athens was announced for those days.It must decide the payment of an installment loan of 8 billion euros, which is essential for financial survival of the country, according to the efforts of the Greek government.

The finance minister, Evangelos Venizelos, but officials said Saturday that the troika would meet with him Monday via teleconference. Greek Prime Minister George Papandreou has also postponed a scheduled visit to New York, "because next week is particularly crucial" for the implementation of European decisions on the Greek crisis.

European shares ended sharply higher Wednesday for the President of the European Commission José Manuel Barroso to present options for the introduction of euro bonds that endorsed a market, which remains concerned about the exposure of banks to sovereign debt.

The CAC 40 index ended up 1.87% to 2949.14 points, after opening down nearly 1.5%, confirming the already observed high volatility the day before.

Other major European markets, London was up 1.02%, 3.36% of Frankfurt and Milan to 2.69%.The pan-European Euro Stoxx 50 index gained 2.29%, but its implied volatility index remains at levels close to those recorded in August despite a decrease of 4.86% on Wednesday.

"The configurations of the lowest values ​​make you want to buy for those who like to put in front of the trend. Oversold is strong, with significant support.In the medium term, we begin to address our exposure, "said Valerie Gastaldy, an analyst at Day By Day graphic.

"In the short term, the market tent up, but nothing is well established," does nuance.

BACK safe havens

European banks (0.51%) continue to worry investors, especially with Moody's downgraded a notch notes of Societe Generale (-2.88%) and Credit Agricole (1.22%).

Swedish bank Swedbank lost 5.55% and the Belgian KBC 4.29%, while BNP Paribas, she was accused (-3.93%), the largest drop in the CAC 40 after announcing a reduction size of its balance sheet by about 10% by the end of 2012.

"The theme of the rulers continue to pollute the market environment.Within the European indices, banks once again accuse the largest declines due to exposure to sovereign debt.We also see that the volatility particularly for banks, "said Benedict Peloille, equity strategist at Natixis.

The real estate industry has accused the only sector down (-0.72%), penalized by several downward revisions of earnings estimates by analysts for several days.

However, the automobile (5.08%), including the Frankfurt Motor Show opens its doors to the public from September 15 to 25 after two days reserved for the press, the best performing European sector, supported in particular by redemption with it, the sector still showing a decline of more than 31% since July 22.

The relative optimism of investors has resulted in a marked rise in the performance of the German government bond (Bund) to 10 years to around 1.88% against 1.79% the day before closing. The other safe haven, gold, for its part has given up 0.88% to 1,817.15 dollars per ounce.

The euro, which was passed under $ 1.36 in the morning, rose against the greenback around 1.3706 dollars (0.17%).

Despite the criticism that accommodate its proposal, the new director of the IMF persists and signs in an interview with a German weekly. IMF Executive Director Christine Lagarde at a news conference in Washington July 6, 2011

Executive Director of the International Monetary Fund, Christine Lagarde, repeated in an interview published Monday in Germany criticized the application of a European bank recapitalization.

"We think in general it is necessary to recapitalize European banks so that they are strong enough to withstand the risks associated with the debt crisis and low growth," she told the weekly Der Spiegel.

"It is necessary to prevent contagion" problems, she said.

Ms. Lagarde was prompted indignant reactions in Europe already calling a few days ago to strengthen urgently the equity of European banks.

The boss of the IMF, when it was French Finance Minister has criticized Germany's dependence on exports and inadequate intake, also called Berlin in this interview to "stimulate domestic demand, it would be good for the German economy and neighboring countries. "

Lagarde finally claims that "the whole idea (behind the introduction of fiscal rules of thumb) is good," but felt that the inclusion in the constitution limits of public debt "must be understood as a signal to financial markets. "

Germany and France have called on countries in the euro area to adopt such rules of thumb, and Spain responded to the call, although this initiative has been criticized by the President of the European Union Herman Van Rompuy.

Wall Street ended the week up on a weekly, after four consecutive weeks of decline, enjoying a renewed hope born of the intervention of Ben Bernanke in Jackson Hole, Wyoming.

Equity markets were initially retreated after the speech of the President of the Federal Reserve, it has not announced specific measures to strengthen the U.S. economy.

But investors finally judging that the U.S. central bank left the door open for further support measures, the values ​​are rising again.

"He did not offer the market a signal from a 'EQ3', but has not ruled out either," said Kevin Caron, Stifel Nicolaus analyst in New Jersey, about a possible new round of quantitative easing.

The Dow Jones finished with a gain of 1.21% or 134.72 points to 11,284.54 while the S & P 500 closed up 1.51% or 17.53 points, to 1176, 80.

The Nasdaq was awarded for its 2.49% (60.22 points) to 2479.85.

For the week, the three indices gaining 4.3%, 4.7% and 5.9%.

The CBOE volatility index, known as "fear gauge", fell 10.2% after several days of uncertainty about the contents of the intervention of Ben Bernanke.

Technology stocks have had a particularly strong session.Cisco Systems gained 1.59% to 15.32 dollars, Microsoft has made 2.77% to 25.25 dollars, and Intel has awarded 1.8% to 19.77 dollars.

The sector index of information technology has gained 2.3%.

"The market is a broad rally, and as the technology has particularly suffered in the last sales phase, we see them now at the top of the rise," said Gary Wedbush, head of trading in the regional investment bank Wedbush Morgan in Los Angeles.

The jeweler Tiffany jumped 9.35% to 69.01 dollars after raising its full-year and good second quarter results.

Trading activity could be affected next week by Hurricane Irene along the East Coast of the United States.

The exchange operator NYSE Euronext said the New York Stock Exchange plans to open normally next week, but a final decision would be taken until Saturday or Sunday, because of the risk of flooding during Hurricane .

Costly wars, tax breaks, financial crisis … Some of the factors that led to the debt of the world's greatest power to reach the ceiling of 14,300 billion authorized by Congress.

Expensive wars, tax cuts and the crisis of 2008 are some of the factors that make the U.S. world power, now find themselves on the verge of default, which could affect severely the economy in the world.

As Barack Obama said bluntly in a speech to the nation Monday night: "During the past decade, we have spent more money than we collected." In 2000, the U.S. federal budget showed a surplus of 236.2 billion dollars.In February 2011, the Obama administration projected a deficit of 1650 billion for the current year, a figure recently reduced to 1,300 billion by the Congressional Budget Office (CBO), a non-partisan.

The Democrats like to point out that the federal budget was in surplus when Bill Clinton left office in January 2001 and that the deficits began to reach heights under the chairmanship of his successor, George W. Bush. But Bill Clinton himself had benefited from tax increases decided by his predecessor, George Bush, to whom they may have cost her re-election. The "bubble" in the IT sector was also boosted federal revenues under Clinton. She would burst in March 2001 under the presidency of George W. Bush, a year that would end on sending troops to Afghanistan after September 11.

In 2003, President Bush ordered the invasion of Iraq to dislodge Saddam Hussein, but refused, with its Republican allies, to make tax increases. Many Democrats will still vote the funding of these two conflicts, including Senator Barack Obama. For their part, Republicans now leading advocates of fiscal restraint, as the leaders of the party in the House of Representatives and the Senate, John Boehner and Mitch McConnell, also had fully supported the approach of George W . Bush. The United States spent U.S. $ 1.283 billion for the wars in Afghanistan and Iraq in 2011, according to a report in March by the Congressional Research Service (CRS), another non-partisan entity.

According to the CRS, the tax cuts enacted between 2001 and 2004 have cost, again in 2011, 1,760 billion in the federal budget.The New York Times, "If these tax benefits had expired as scheduled in 2012, future deficits would be halved."

In addition, a drug reimbursement policy more beneficial to the elderly, approved in 2003 by the two parties, resulted in an additional cost of 552.2 billion dollars over 10 years, according to the CRS.

George W. Bush inherited a debt of 5,700 billion. In January 2009, at the end of his second term, she had grown to 4,900 billion and the U.S. economy suffered the brunt of the crisis "subprime". "Wall Street got drunk and now it's cooked," summed up President Bush in July 2008.

The rescue plan set up by Obama has cost 800 billion dollars more, but failed to boost employment.And the debt continued to accumulate, reaching 16 May 2011 the ceiling of 14 300 billion authorized by Congress.

Which Bush and Obama is to blame most for the digging of the debt? The New York Times table below compares the new spending under the two presidencies …

It's a painful choice awaits U.S. leaders on August 2, when the government will end up running out of expediency if the ceiling is not raised: to default on part of the debt or cutting spending or health retirement. And economic and financial world feared the shock waves in the world if no agreement is reached. Obama himself spoke of a "Apocalypse" economy.

But Republican leaders must manage the intransigence of their ultra-conservative members, close to the movement of the "tea party", who reject any tax increase, away from the prospect of a compromise.