My Business News

The Tokyo Stock Exchange ended up 1.16% Tuesday for the fourth straight session, the correct number of U.S. household spending has increased export values.

The Nikkei gained 102.55 points to 8,953.90 and the Topix, broader took 8.47 points (1.12%) to 767.30.

The announcement of a merger between two of the largest Greek banks also contributed to the upward trend, but the Nikkei index has remained below 9,000 points due to lingering fears surrounding the U.S. economy.However, it touched a session high of 8992.86 on.

"To be able to rise above 9000 this week, we would need evidence that recent U.S. gains are not temporary," said Kenichi Hirano, director of Tachibana Securities.

Consumer spending of U.S. households rose 0.8% in July, more than expected (consensus + O, 5%), thanks to a recovery vehicle purchases.

Market participants explained that Japanese institutional investors were betting again on export values, but many foreign investors preferred to wait for other indicators that more clearly to remove the specter of a U.S. recession.

Toyota Motor has been 0.22%, Honda and Nissan 0.95% 0.74%.

On the side of consumer electronics, Sony jumped 3.54% to 2.11% and Toshiba.

Financial stocks also performed well, making Mitsubishi UFJ Financial Group 1.8%, 0.88% Mizuho Financial Group and Sumitomo Mitsui Financial Group 2.19%.

Titles EFG Eurobank and Alpha Bank temporarily suspended pending an imminent announcement of a merger, said Monday the Athens Stock Exchange.

"(…) The Athens Stock Exchange decided to suspend the trading of these shares until investors are informed of the outcome of meetings of boards of directors and the terms of the agreement."

The Boards of Directors of Eurobank and Alpha, respectively second and third banks in the country, meet on Monday to conclude a merger agreement.

The markets welcomed the prospect, especially for Eurobank, which failed in July to stress test bank.

The index of the Greek banking sector took 19.82% by 0800 GMT, outperforming the benchmark index rose 8.18%.

The agreement, which should lead to the largest bank in Europe's southeast by the assets, should enable the two facility to avoid having to use the mechanism of public provision of liquidity is likely to trigger a wave of consolidation in the sector, analysts said.

"The boards of both banks will sign the agreement and the announcement Monday morning and a press conference will take place at midday" told Reuters on Sunday had a banking source familiar with the matter.

According to an official of Eurobank, the operation, if it is approved by shareholders of both groups take the form of an exchange of shares – at a rate of five to seven EFG Alpha, according to a bank – followed by an issue of securities.

The Qatar Investment Authority (QIA) sovereign wealth fund Gulf kingdom already a shareholder in Alpha Bank, will become also a major shareholder of the new group, according to sources, one of which said that the QIA has signed an agreement Saturday .

The QIA will inject funds into the new entity through 500 million of convertible bonds, prior to an issue of 1.25 billion euros of securities.

The new entity will have 150 billion euros in assets, eight million customers and 80 billion euros in deposits, said another source.

If approved by the boards of both banks, the agreement must then be approved by their shareholders.

The fourth largest bank in Greece, Piraeus Bank, however reversed the information relayed by the Financial Times reported that rumors of merger with the leading banking group Greek NBG

"A merger agreement between Eurobank and Alpha is particularly positive for the banking sector, business and economy," said an officer of Piraeus Reuters. "With regard to Piraeus and consolidation, there is nothing in progress."

This procedure should enable daily for six months to freeze its debts while continuing their normal daily activité.Le

The daily France-Soir, which continues to lose money despite efforts to revive its owner Alexander Pugachev, Monday will ask the Court of Commerce in Paris to be placed for six months in backup process, officials said Friday a union source. Questioned by AFP, the newspaper's management had no comment.

This procedure must in particular enable France-Soir to temporarily freeze its debts while continuing normal activity. The Commercial Court will decide Monday afternoon. A works council has taken place in the morning, according to a union source.

Investment loss

"France-Soir is losing a lot of money each month. Pugachev Alexander has already invested 60 million euros, at a loss.I do not know if it will continue to invest, "said Stéphane Paturey to AFP, secretary of the committee and staff representative Info'Com CGT." We feared the worst (the bankruptcy filing, Ed ). There, at least, it keeps control of the newspaper, "he added.

Currently, the business daily La Tribune, which also has serious financial difficulties, has a backup procedure. In March, Alexander Pugachev had acknowledged that "sales, 70,000 copies a day, have not taken off. We're losing money, not three million a month as I read in the press, but just over one million. "

Without growth, the number of registered employment center is expected to increase further in July. The Ministry of Labour publishes these figures tonight in 18 hours. The Minister of Labour and Health Xavier Bertrand

The numbers of job seekers registered at employment center in July, to be published in the late afternoon, "will be wrong as were those of the previous two months," he said Thursday the Labour Minister, Xavier Bertrand. "When there is no growth, it is difficult to reduce unemployment (…). I expect the numbers to be wrong as were those of the previous two months," said Minister of France 2.

The number of job seekers without activity jumped 1.3% in June compared to May to 2.720 million. In May, it increased by 0.7% to 2.686 million, after four months of decline.The total job seekers, including those engaged in a low, also increased in June compared to May, from 0.6% to 4.103 million. French growth was 0.9% in the first quarter and 0% in Q2.

The austerity plan does not increase the unemployment

Prime Minister François Fillon called on Wednesday night on TF1 to "increase efforts" to reduce unemployment, rising for several months. The government relies on an unemployment rate below 9% of the workforce by the end of 2011. According to Xavier Bertrand, anti-deficit plan presented Wednesday by the prime minister will not increase unemployment. Facing the financial crisis and a declining growth, the government announced a major austerity plan that should bring 12 billion euros of additional revenue to the state in 2011 and 2012 and allow it to meet its commitments deficit.

"We have not made the choice that would have been breaking growth," he said, comparing the policy pursued by France to the one conducted in Britain where, he said, wages were lowered. In this case, said Minister of Labour, "there is less purchasing power, there is less consumption and it is bad for employment." "We have not made this choice, we preferred to reduce tax expenditures not to break our growth prospects," added the Minister.

A German minister, also vice chairwoman of the CDU, argued Tuesday the idea of ​​conditioning in the future the grant of European rescue fund for financial guarantees, about which Berlin has quickly sought to differentiate themselves.

"Several states are working hard to meet the debt service. This should be welcomed.But to maintain these efforts over the long term, it is the collateral, "found the Labour Minister Ursula von der Leyen, the public television channel ARD.

Minister, Vice-President of Christian Democratic Party of Chancellor Angela Merkel has suggested that the collateral in the form of gold reserves or investments in industrial enterprises.

These comments do not reflect the position of the German government, it was quickly declared a government source.

Most important, they added, is that the assistance is tied to strict conditions.

Demand for Finland to see his loans secured by assets, condition sine qua non for participation in the plan of aid to Greece, has sparked a lively swirl across the euro area. Austria, the Netherlands and Slovakia have called for particularly enjoy the same treatment.

German officials had not so far expressed only informally on the issue, saying the majority feared that demand for Helsinki does a series of similar requirements in the euro area.

In his position as Minister of Labour, Ursula von der Leyen has no direct say about the German policy vis-à-vis the euro area.But the debate is lively in the action of the CDU Angela Merkel on this issue of the debt crisis.

On Monday, the Dutch Finance Minister Jan Kees de Jager had found the agreement illegal Finnish Greek state and said he would not accept it.

The rating agency Moody's has in turn criticized a scenario considered negative for the credit rating of Athens and that of other countries helped.

"Many countries reject the solution that Finland has negotiated for itself to the disadvantage of all others," said Tuesday the Austrian Minister of Finance, Maria Fekter.

"Regarding the collateral, we must find a solution acceptable to all States, and I see no trace so far," she said.

Earlier, Bloomberg reported that Finland had expressed readiness to modify the agreement with Greece.

"This is a technical solution that works well, but if this particular model is not possible, then we must look elsewhere," said Finnish Prime Minister Jyrki Katainen in an interview at the agency.

It is likely that Ben Bernanke on Friday expresses its disappointment because the current growth to the point perhaps to lower its projections, and explain what tools are still available to the Fed's best suited for the strengthening .

But it is unlikely that takes advantage of the annual conference of the Federal Reserve Bank of Jackson Hole (Wyoming) to advocate a shock treatment.

To the extent that the instrument of interest rates has already been widely exploited, it is likely that Bernanke will offer on Friday to mobilize the broad masses of the balance sheet of the central bank.

Interest rates are already near zero and the Fed reported two weeks ago it was prepared to keep borrowing costs at a level close to nonexistent for another two years if necessary.

As for measures affecting the balance sheet of the central bank, they are already well known and each has its advantages and disadvantages.However, it is hardly possible to expect the announcement to Jackson Hole for a major new purchase transaction of bonds.

Presumably, the Fed is driven by the idea that the current situation justifies being cautious and has not the dimension of the crisis observed from 2008 to 2010, which had justified bold steps, like two relaxations quantity (EQ) in succession.

The second – 600 billion dollars of bond purchases – aimed to deal with inflation so low that it could lead the American economy into deflation.

But inflation is now higher in the U.S. and that measured by retail prices excluding food and energy is accelerating.This one does not worry unduly Fed more concerned about sluggish growth, insufficient to reduce an unemployment rate rises to 9.1%.

As for the crisis of European sovereign debt, it undermines the financial markets and business confidence in the U.S. and as such is very worrying, even if it does not cause damage to the extent of the credit crisis of 2008 -2009.

THE FED will not bend

In this context, Bernanke may treat the disease in homeopathic doses.It could for example agree to maintain unchanged the Fed's balance sheet, which now stands at 2,800 billion against about 900 billion before the crisis, announcing a schedule same as he did for the Fed rate funds.

It could also exert downward pressure on rates by changing medium and long-weighting of assets of the Fed in favor of longer maturity instruments.This can be done by refinancing with longer maturities at the termination of securities or by exchanging short-term securities for longer effects.

"Last year, when the president laid the foundations of the QE2 in Jackson Hole, inflation decelerated rapidly, and now the opposite is true," explain to clients Carl Riccadonna, economist at Deutsche Bank.

"Therefore, if the Fed wants to be more accommodating, it may first try to increase the average maturity of its portfolio rather than increase it."

Buy more bonds would be more aggressive but the situation does not seem justified at this time.While Fed officials say that this solution has helped keep long rates lower than they would otherwise have been and prompted investors to seek riskier assets than Treasuries, it does not least been strongly criticized nationally and internationally.

To appease those who fear that such purchases fueling inflation, the Fed can consider simultaneously neutralize them by puncturing the interbank market.In doing so, the risk of maturity is removed and a downward pressure is exerted on the long-term rates, however, that control is maintained on abundant.

What reproach these purchases abroad, is to lower the dollar, push up commodity prices and lead to destabilizing capital flows in emerging markets.

Even within the Fed, dissenting voices are heard and its promise of low interest rates in August was not the taste of three members of the Monetary Policy Committee (FOMC), which is unusual.

In the United States itself, the Republican candidate for president Rick Perry ruled this week that any further monetary easing by the Fed is almost treason.

However, the Fed has a well established reputation for independence and it would be surprising that it folds against its detractors as the economy still needs support.

European shares ended down Friday, concluding a third straight week against a background of restless fears of a relapse into recession in major developed and sovereign debt crisis.

The CAC 40 index dropped 1.92% to 3016.99 points, but varied between a low of 2947.91 points (-4.2%) and a high of 3078.28 points (0.07% ).

For the week the index lost 6.13%, after falling 5.48% Thursday, bringing its slide to 17.82% since the beginning of the month.

"Above all, the anticipation of 'double dip' recession in the double way early 1980s, which haunted investors.This contraction is somehow accepted and caused by the austerity budget set up by European politicians, "said Eric Galiegue, president of Valquant.

Other major European markets, London has sold 1.01% 2.19% Frankfurt and Milan 2.46%. The European indices EuroStoxx 50 and 300 respectively Eurofirst fell 2.15% and 1.66%.Since the beginning of the month, the EuroStoxx 50 loose 19.15%, 13.32% and the London Stock Exchange German 23.45%.

On Wall Street, the S & P 500 fell by 0.15% and the Dow Jones 0.33% at midday in New York.

"The second quarter growth was well below expectations on many aspects: sluggish domestic demand, external demand risk and a clear concern about the financial variables, crystallized by market volatility," recalls Erick Muller Chief Investment Officer of Fidelity bond range.

The situation remains very FRAGILE

The implied volatility of the Eurostoxx 50 has remained virtually unchanged Friday (0.29%) but jumped 71.29% in three weeks.

"The month of August will bring real improvement on any of these points.The overall situation remains very fragile for the second half and the markets have adjusted the valuation of assets as a result, but suddenly long term, "said Erick Muller.

In this context, cyclical stocks and banks have once again suffered, Renault (-4.69%) showing the greatest decline in the CAC 40 lost 4.27% BNP Paribas in Paris.

Elsewhere in Europe, banks Unicredit and Lloyds fell 4.8% and 5.8%, while car manufacturers Porsche and Fiat gave up 4.45% and 4.3%.Their respective sector indices ended lower by 1.81% and 2.86%, the car even accusing the largest decrease sector.

Since the beginning of the month, European banks have unscrewed from 21.85% and 27.74% of the car.

The same causes leading to the same effect, investors fled to the assets with the least risk, such as gold, which recorded a new record of 1,877 dollars an ounce and earns nearly 14% since late July, or Yields on government bonds rated.

The rate of the 10-year Bund and of the French OAT maturing well remain virtually unchanged in late afternoon around by 2.1% and 2.77%, after falling in the morning at 2.031% and 2.713%.

"Despite the deterioration in the rating of the United States by Standard and Poor's, despite concerns in general about the astronomical amounts of public debt, interest rates on government bonds with very broad market fall," Valquant said in a weekly strategy note.

"This is a sign that investors are in full 'flight to quality', and they seek refuge in government debt," says the company.

The Tokyo Stock Exchange ended down 1.25% Thursday, hurt by a stronger yen in a climate stubbornly wait before the release of U.S. data likely to fuel fears of a recession.

The Nikkei has given points to 113.50 points 8,943.76 and the Topix, broader, dropped 9.34 points (1.2%) to 767.31 points.

The Nikkei dropped below the key threshold of 9000 points in low trading volumes as investors nervously awaiting a series of indicators in the United States, including leading indicators, or the index of activity in the region the Philadelphia Fed.

Market players were also disappointed by the numbers of Japanese exports, which fell more than expected in July, due to both the strong yen and falling demand.

Senior officials of the Japanese Finance Minister and the Bank of Japan held talks Thursday about the exchange rate, a sign that Tokyo is ready to take additional measures against the soaring yen penalizing Japanese exporters.

This week, the dollar traded just above its record low of 76.25 yen, but traders warned that the greenback could cross that threshold when many market participants will return from summer holidays this week next.

Values, the technology has suffered from disappointing trial results from Dell, which had weighed on the day before the performance of Wall Street.

Advantest has yielded 4.3% and Tokyo Electron 3.37%. Manufacturers of consumer electronic goods have also accused the coup, Toshiba and Hitachi dropping 4.45% 2.39%.

The major European markets ended down Tuesday before the highly anticipated conference of Nicolas Sarkozy and Angela Merkel, but they have reduced their losses in the afternoon after the confirmation by Fitch's triple-A U.S. and a statistic U.S. industrial production considered solid.

EuroStoxx 50 index in the euro area has come down by 0.15% to 2321.09 points, while the pan-European FTSEurofirst 300 index ended virtually unchanged (-0.05%).

In Paris the CAC 40 index lost 0.25% to 3230.90 points after dropping to 2.4% in the morning, interrupting, like other major indices, a series of three sessions of consecutive increase .

Equity markets have shown sharp declines until early afternoon, the order of 1.3% on average, the announcement of a near stagnation of German growth in the second quarter fanning fears of recurrence of the global economy that have taken over stock exchanges in recent weeks.

"The markets have reacted to U.S. industrial production rose sharply and emerged ahead of expectations, and the confirmation of the triple A by Fitch of the United States even though the rating agency had said last week" , said Yves Marc, seller actions at Global Equities.

Analysts note, however, that the attention of investors is suspended at the press conference to be given to 1600 GMT in Paris, the French president and German Chancellor at the end of a meeting to discuss possible solutions to the crisis debt in the euro area.

The austerity plan presented Friday by Silvio Berlusconi, the second in less than a month, raised a storm of criticism in Italy, where the main trade union brandishing the threat of a general strike to protest the "injustice" measures announced.

President Giorgio Napolitano has signed the decree formalizing Saturday the measures to reduce by 45.5 billion budget deficit and achieve balance by 2013, a year before what had been decided on months last.

The decree must be approved by parliament within sixty days will probably be amended during the debate, which begins Aug. 22 in the Senate.

"A missed opportunity," said La Stampa in Sunday's Pier Carlo Padoan, chief economist of the OECD (Organization for Economic Cooperation and Development).For him, the plan is positive in its efforts to balance the budget and yet stumble in its lack of measures to boost growth and fight tax evasion, which according to the Confindustria employers' organization representing 120 billion euros.

The leader of the powerful trade union confederation CGIL, Susanna Camusso, a judge in La Repubblica that the austerity plan "affects only those who already pay their taxes."

A meeting will decide on Aug. 23 of a possible general strike, she added.

The plan imposes a new "solidarity tax" of five percent of annual revenues in excess of 90,000 euros, 10% for those in excess of 150,000 euros.

Economists, business leaders and trade unionists, however, consider a new tax on property rather than on labor income, would have been preferable because it would have to help fraudsters who do not declare all their income and have often great wealth.

"Greek tragedy"

For the president of Ferrari, Luca Cordero di Montezemolo, who speaks in Corriere della Sera, the new solidarity tax is "a scandal".

"It's one thing to ask a solidarity contribution to someone like me or like Berlusconi, but quite another to attack a framework that is responsible for family," he said.

The editorials of the Italian press are largely negative.

The former European Commissioner Mario Monti, in the Corriere della Sera, did not hide his disappointment, saying the plan weighs too heavily on the middle class and does nothing to promote growth.

For the French economist Jean-Paul Fitoussi, interviewed by Il Messaggero, market pressure has led Rome to take steps that are not effective and penalize an already weak growth."Italy is like the protagonist of a Greek tragedy: forced to do things that are unnecessary and even harmful in the long term, but necessary for survival in the short term."

In an interview with financial daily Il Sole 24 Ore, the head of Confindustria, Emma Marcegaglia, expressed concern that new tax measures will not grow executives from abroad.

"This leads to a completely disproportionate level of taxation on high incomes – or pretended," she said.

It also believes that the tax called "Robin Hood", which must relate to the energy companies with more than 10 million euros in revenues and one million of taxable income, is a "madness".

Emma Marcegaglia decides in contrast to an increase in VAT and reform of the pension system.

Under pressure from the European Central Bank (ECB), the Council President Silvio Berlusconi said Friday evening measures provide 20 billion euros in savings in 2012 and 25.5 billion euros more in 2013 a mixture of spending cuts and tax increases.

The extent of anticipated savings reflects the progress made by the government since the market turbulence in July related to the fear that Italy's third largest economy in the euro area, sink into the debt crisis as a result of Greece and overwhelming support mechanisms in the area.

Finance Minister Giulio Tremonti said the budget deficit would fall to 1.4% of gross domestic product (GDP) in 2012, against 3.8% this year, and would be cleared in 2013. He added that it was objective "prudent."