The New York Stock Exchange fell 2.65% Tuesday, the Dow Jones industrial yielding 30 268.22 points to 9870.30.
The S & P 500 is broader, lost 33.32 points, or -3.10%, to 1041.25. The Nasdaq Composite fell on its side of 85.47 points (-3.85%) to 2135.18.
The Credit Mutuel CIC and Banco Popular announced an agreement to create a new banking platform in Spain after which the French mutual bank takes 5% stake in Spanish bank.
The two banks said in a statement explaining that common banking platform will have two billion euros in assets and will have 123 branches in Spain.
"The Credit Mutuel invest 312 million euros, which will further enhance the platform to 625 million euros", say the two banks.
"After the completion of this transaction, the Credit Mutuel is to become a key shareholder of Banco Popular with a 5%", they added.
The launch of the new banking platform is expected by the end of the year.
"Banco Popular is serious about growth in Spain by taking advantage of the ongoing restructuring (the Spanish banking sector), particularly in mutual," said a financial analyst Spanish.
In Spain, the 45 mutual banks have been engaged for months in a process of consolidation.
For its part the Credit Mutuel bought in 2008 the network of retail banking at Citigroup in Germany, became Targo Bank, and took control last year of the credit company Cofidis consumption.
Around 11:30 am, Banco Popular title earned 1.90% to 4.46 euros on the Madrid Stock Exchange.
U.S. lawmakers are poised to finalize the proposed overhaul of financial regulation in the United States, having reached agreement on new restrictions on banking activities and proposed a compromise on the issue of derivatives.
It was around midnight local time that negotiators Democrats managed to find a first common ground on these two points, perhaps the thorniest of the bill.
The two clauses in question are intended to protect the banks' assets in risky activities of proprietary trading, causing the financial crisis of 2007-2009 which resulted in a deep recession and have led the state to fly to the rescue of the banking sector.
The Democrats are under pressure to complete their work within the next few hours, before President Barack Obama becoming engaged in discussions with leaders at the G20 summit in Toronto this weekend.
After 15 hours of intense negotiations, Democrats agreed on a modified version of the so-called "Volcker rule" which aims to restrict the proprietary trading banks and prohibiting or least strictly supervise their involvement in hedge funds and private equity.
This relaxation would allow such banks to invest up to 3% of their total Tier 1 capital, core capital in hedge funds and private equity investment.
The project oversight of the derivatives market has however more trouble for lawmakers.This market 615,000 billion has to exacerbate the crisis and led to such a rescue of 182 billion dollars of public money for the insurer American International Group.
Democratic Senator Blanche Lincoln has reached a compromise with Treasury representatives aimed at forcing banks to divide their swaps which will also offer the opportunity to reach a wider variety of house swaps.
After hours of negotiation, other Democratic lawmakers have finally reached its position.
Dozens of Democrats in the House of Representatives, saying it would strengthen offshore activities, threatened to vote against the entire bill if continuation of this proposal.
MODEL TYPE
Carrying out such a bill would be for Democrats a victory on the legislative front, after the health reform passed this year, more significant than the midterm elections will be held in November.
If these talks had a happy ending, President Barack Obama, who launched the idea of reform in June 2009, would also be strengthened because it could serve as a model for other countries of the G20.
At a time when the world economy is gradually recovering, the efforts of Europe to present a united front on the issue of regulating collided Thursday in a dispute over new regulations on hedge funds.
If the purpose of this bill, which has nearly 2,000 pages, is to avoid a global crisis similar to that which began in 2007, it will create a strong contrast constraints on the banking sector and could deprive him of several billion dollars in revenue.
Wall Street has launched major maneuvers to run the project, despite a growing popular protest criticizing the bank failures and bonuses of executives.The Democrats, however, must suppress their ambitions for a radical rethink in order not to deprive the votes of parliamentarians "centrist".
The Democrats hope that the reform will be subject to presidential signature by July 4, but it must first be passed by the House of Representatives and the Senate.
Saved by purchases of television sets before the World Cup football, the French household consumption of manufactured goods rose 0.7% in May but the underlying trend remains gloomy.
The figure released Thursday by INSEE is better than expected – economists surveyed by Reuters on average expected a 0.4% – but the one in April was revised to -1.3% instead of -1.2 %, the third decline in four months.
Purchases of televisions and decoders at the World but also the transition to all-digital "by Britain and the Loire have boosted spending on equipment housing by 7.3% in May, after a 0.5% decline in April.
It is the largest increase for the position since May 2002 (+8.9%), before a previous edition of the World Cup.
If car sales have leveled off in May (-0.1% after -9.6% in April), spending on textiles and leather fell 1.6% after one month of April already dull (-1 1%) and purchases of "other manufactures" decreased by 0.2%, within the scope of a decline in hardware-DIY by INSEE.
Sales of clothing should take advantage of summer sales in June or July, but the debacle of the France team in South Africa could stop the run on the Net TVs.
"The boom in sales of televisions is a phenomenon is observed before each major sporting event, of course, is completely temporary and this time it will be corrected more quickly," said Olivier Gasnier, an economist at the Company General.
In addition, the May figure does not offset the drop in April and raised fears of a further decline in household consumption of manufactured goods throughout the second quarter after falling 1.9% in January-March, adds there.
LONG-TERM SOFT PATH
Nicolas Bouzou Asteris analysis firm, calculates that there should be an increase of at least 0.8% in June for the purchase of manufactured goods are stable in the second quarter.
"It's possible but unlikely given the context," Judge said."The trajectory of the consumption trend is soft and durable it will affect the growth of GDP.
Spending on manufactured goods account for about one quarter of total household consumption of goods and services, it is known that with the quarterly national accounts.
Energy costs as a result of severe winter led to the consumption of all households to remain in the first quarter (0.0%) and INSEE's forecast released Wednesday, is expected further stagnation in April-JuneIn total, the whole of 2010, household consumption would grow by 1.2%.
"It's possible that we have a decline in consumer spending in the second quarter because there will be a correction in energy costs," said Olivier Gasnier, for its part.
In the short term, he adds, high unemployment, pension reform and concerns about public finances are not likely to encourage the French to consume.
"Pension reform and the policy of fiscal consolidation may have a long-term, but for now we are in shock to confidence measures for pensions and the expectations about the nature of fiscal tightening future.All this can promote a precautionary savings behavior. "
The May survey of the INSEE household surveys showed that they were pessimistic about both their personal future and the standard of living in France, a finding which may be found in the June survey that will be published Tuesday.
"The delusional semantic debate about the rigor / restraint / discipline has caused confusion in the minds of the French who fear probably increases the tax burden and lower wages in the public service, while fiscal consolidation can be done without use these two levers, "concludes Nicolas Bouzou.
Nestle is optimistic for growth, thanks largely to emerging markets, and supports the status quo with L'Oreal, the cosmetics giant world where the Swiss group holds 30% stake.
Despite the problems in southern Europe and the budgetary restrictions on the continent, Nestlé remains optimistic and maintains its forecast for growth between 5% and 6%.
"The developed markets are facing some problems but, thanks to emerging markets, global growth is there," said Nestle CEO Paul Bulcke said in an interview with Reuters at the group's headquarters in Vevey (Switzerland ).
He finds "encouraging" forecasts global growth of 3% to 4% and estimates that if growth is lower in Western Europe, some market segments such as food supplements for elderly or capsules coffee (Nespresso) have strong prospects for growth.
"I am an optimist by nature (…) There are always opportunities, even if the turmoil here or there," he added.
Asked about the intentions of the Swiss group about L'Oréal and the 31% of the heiress of the group, Liliane Bettencourt, Paul Bulcke said there were no plans to change the status-quo.
Nestlé and the Bettencourt family are bound by a shareholders' agreement that runs until 2014.If the family decides to sell his shares, it should be a priority for Nestle, which is committed to the status quo alive Liliane Bettencourt (87 years) and for a period of six months after his disappearance.
Nestle has a treasure trove of war from the sale for $ 28 billion of its stake in Alcon. But the group seems to favor, so far, the buyback of shares.
The French group Bouygues Construction Construction announced Monday it had won a contract worth 360 million euros for the construction of a railway tunnel in Hong Kong after last week won another large contract in the region.
This project includes "the construction of a section of the new high speed rail line linking Hong Kong to Canton, Bouygues Construction details in a statement.
It will include two tunnels and will be part of the future rail line, linking Hong Kong to Shanghai and Beijing in 2015. Work is expected to last five years.
Bouygues has recently won a contract for 490 million euros for the construction of a port terminal for cruise ships to Hong Kong.
Oil ended slightly higher Friday on the New York market in the wake of the slight rise on Wall Street.
The contract on July U.S. crude ended on an increase of 0.51% to 77.18 dollars a barrel.
At the same time, the contract on August Brent took 0.55% to 78.22 dollars.
During a session of ups and downs, investors were torn between relief against mitigating fears about sovereign debt problems in the euro area and caution before the expiration of contracts on crude.
"The moving average 200 days, 76.83 dollars, still acts like a magnet.The market has experienced a good way forward and now are consolidated before the next move of magnitude, "said Stephen Schork, president of Schork Group.
Prices have fallen to 75.56 dollars when meeting Councillor China's central bank warned that China's growth to slow in the second half and it was unlikely that its annual growth exceeds two digits.