The rebound of the day continues at the Paris Bourse. The Cac 40 climbed 2.18% in mid-session at 3013.30 points, in the wake of Wall Street and Asian stock markets.The increase accelerated after the announcement of an exceptional action of major central banks including the ECB and U.S. Federal Reserve, to enhance the supply of dollars in the banking sector.
Wednesday he had already climbed 1.87% to 2949.14% points as investors cautiously welcoming the determination displayed by German Chancellor Angela Merkel, French President Nicolas Sarkozy and Prime Minister of Greece George Papandreou during a conference call Wednesday evening out to Athens for the crisis.
Same upward trend in other European financial centers: London in mid-session gaining 1.38% and 2.10% while Frankfurt Milan rose 1.49% and 2.51% in Madrid.
For now, the markets show their confidence in the ability of the euro area to help Athens to prevent the country will default, and is forced out of the single currency.
After months of deadlock between Parliament and European governments agreed in principle to toughen the Stability Pact and fiscal discipline common EU response to the crisis of debt was signed in Strasbourg on Thursday morning. This device provides for financial penalties in the form of cash deposit in blocked accounts for countries that would leave too lax spinning their deficits, and processes more automatic than in the past to punish the worst performers in Europe.The agreement should therefore be subject to European finance ministers Friday in Poland, that will floor on the back of the Greek crisis in a macroeconomic environment deteriorated.
At the end of their conference, the Franco-German said he believed the day "that the position of Greece is very much in the euro area." But on one condition, also very explicit: "The implementation of strict and effective recovery program of the Greek economy supported by the countries of the euro area and the IMF and which conditions the disbursement of future tranches of the program. "George Papandreou was quick to deceive, confirming" the absolute determination of his government to take all necessary measures to implement all commitments. "For the budget minister Valérie Pécresse, what the Prime Minister of Greece were "reassured" the euro area, she said on Thursday LCI.
For its part, the Chancellor has again ruled out the idea of European bonds, proposed by some to pool at least part of the issuance of debt of the euro area. It would be "absurd," she said this morning outside the Motor Show in Frankfurt.
The U.S. maintains pressure on Europe
To this, add the announcement of the Brics (Brazil, Russia, India, China and South Africa) said on Wednesday that they could increase their holdings of bonds denominated in euros. Brazil has such willingness to participate in a "global effort" against the economic crisis that affects rich countries, said the same day the President of Brazil Dilma Rousseff.The same goes for Russia, which has indicated its willingness to "consider an investment in the new mechanism in the euro area if the responsibilities are clearly defined" through its Vice-Minister of Finance. However, Italy, whose rates have soared during bond, has denied media reports that she would have asked China to invest in debt.
U.S. side, however, no way to release the pressure on Europe. It "must do more" in the words of Timothy Geithner, U.S. Treasury Secretary, who must participate in a meeting Friday of finance ministers in Europe.In an interview Wednesday on the financial channel CNBC, he considers, however, that the Europeans 'capacity' to solve the crisis, seeing a good eye that they "recognize that they are late."
Note that Christine Lagarde, Executive Director of the IMF, should give a speech in Washington on "Challenges and solutions for the global economy and the IMF" to 16 hours. While Ben Bernanke, the Fed chairman, should speak at a conference in Washington on the regulation of systemic risk in the early afternoon.
Oil prices continue to fall
On the macroeconomic front, the number of people employed in the euro area rose by 0 Online payday loans.3% in the second quarter compared with the previous three months, said Thursday the EU statistics office Eurostat.Still according to Eurostat, inflation remained stable in August in the euro area to 2.5% year on year, as in July.
In France, the trade deficit is expected to reach 75 billion euros this year, a new sad record after the 56 billion euros recorded in 2008, says Les Echos. For its part, the European Commission revised downwards its growth forecast for France for 2011 to 1.6% against 1.8% expected so far.The annual growth rate of the euro area as a whole also 1.6%, however, is consistent with a previous estimate.
For its part, Spain has raised 3.95 billion euros in the markets Thursday, with bonds to eight and nine years, with rates down from the previous issue of the same type on July 21.
Finally, many figures are expected in the U.S., including inflation for the month of August, the current account balance in the second quarter, the weekly claims for unemployment and industrial production for the month of August .
On the foreign exchange market, the euro climbed to 0.44% against the greenback at 1.3804 dollars on Thursday.In turn, oil prices continued to fall, after figures showing a decline in demand for refined products in the United States, and while the markets remain worried about the situation in the euro zone, analysts said. In morning trading, a barrel of "light sweet crude" for delivery in October lost 43 cents to 88.48 dollars per barrel of Brent North Sea crude for October delivery 53 cents to 111.87 dollars.
Values to follow
The banking sector, including Societe Generale (13% to 19.73 euros), BNP Paribas (20% to 32.52 euros) and Credit Agricole (12% to 5.88 euros) remains in the spotlight. It does not seem affected by the revelation of a fraud, a trader at UBS.The crisis became systemic, according to a document sent to the European Union finance ministers and obtained by Reuters, which also recommended a further strengthening of bank resources.In addition, two out of three French believe that the weakening of the banking sector related to the debt crisis could threaten their economies, according to a CSA poll released Wednesday to Les Echos.
• LVMH (2.15% to 114.20 euros)
The group announced Wednesday it had chosen Jordi Constans, come to Danone, to succeed Yves Carcelle at the head of Louis Vuitton in 2013.
• ArcelorMittal (3.65% to 13.35 euros)
The company promised to stop its steel plant in Florange (Moselle) would be temporary, said Wednesday the French government.
• Areva (2.11% to 21.02 euros)
The nuclear expert will present its strategic plan in early December through improved operational performance, an adjustment of investment and possible asset sales, its chief executive said in an interview for Echoes.
• Publicis (2.03% to 31.11 euros)
The group announced Thursday the acquisition of 100% stake in a public relations agency in the United States, Schwartz Communications, which specializes in technology and health, for an undisclosed sum.
• Bouygues (1.31% to 25.05 euros)
Wednesday, Bouygues Construction, through the company Eirene, delivered the first 53 service centers and respond to the DIT (Directorate of transport infrastructure under the Ministry of Ecology, Sustainable Development, Transportation and housing), according to Reuters.Eirene now provides maintenance and management of these buildings for 28 years.
• Technip (2.06% to 68.77 euros)
The French group of Petroleum Engineering has won a contract for facilities ammonia-urea fertilizer in Port-Gentil (west of Gabon), from Gabon Fertilizers Company, said in a statement.
• Cellectis (6.19% to 6 euros)
The company will acquire the Swedish company Cellartis specialist tools for research and development in vitro derived stem cells, as part of a contract valuing the approximately 33.8 million.
The luxury group said that trading in its title would be suspended Thursday pending the decision of the Court of Appeal of Paris on the exemption granted by the AMF on the buyout of minority interests.