Business News & Financial News

Wall Street closed up on Monday.

The Dow Jones gained 291.23 points (2.59%) to 11,523.01. The S & P 500 is 33.90 points (2.93%) to 1192.57. The Nasdaq Composite rose 85.83 points (3.52%) to 2527.34.

This data is likely to vary even slightly.

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The New York Stock Exchange closed up 0.25% Friday, the Dow Jones 30 Industrial winning 29.66 points to 11,800.39. The S & P-500, wider, lost 0.22 points, or 0.02% to 1215.91.

The Nasdaq Composite fell 15.38 points his side of (0.59%) to 2572.61

These data are likely to vary even slightly.

European shares were down sharply in early trade, including sealed by the decision of the Greek Prime Minister to submit to referendum the agreement on the resolution of the crisis of sovereign debt in the eurozone.

"The risk is that a 'no' to the Greeks do completely derail the rescue efforts. With a vote expected in January, I can truly say goodbye to the rally of the season," said a trader based in Paris.

The Euro Stoxx 50 index of volatility, a "barometer of fear" in the financial markets, jumped 20% in opening sign of the strong concern room.

In Paris the CAC 40 fell 3.3% to 9:40, passing below the 3200 to 3135 points, weighed by banks.

List of values ​​to follow on Wednesday at the Paris Bourse.

* BANKS. The International Monetary Fund is considering taking part in a special investment vehicle that would be created by the European Financial Stability (EFSF) but has not yet taken any decision, officials said Tuesday the euro area.

* PSA Peugeot Citroën has revised down its forecast Wednesday after the third quarter of 2011 marked by lower volumes and increased competition on prices in Europe.

* AIR LIQUIDE confirmed target improvement in net profit in 2011 "in a normal environment," despite a slowdown in sales growth in the third quarter, still worn by the emerging markets.

* Bouygues.Morgan Stanley initiated coverage of the value with a board underweight and a target price of 32 euros.

* Saint-Gobain confirmed its 2011 objectives despite the deterioration in economic conditions which could lead to slower growth in the fourth quarter of the group.

* STMicroelectronics.Kepler Capital Markets lowered its recommendation on the way to reduce, retain cons.

* Ingenico found that the turbulence in the economy does not question its forecast for 2011, thanks to particularly strong sales growth in emerging countries and Europe, but the manufacturer of payment terminals has remained silent of 2012.

* MERSEN confirmed its 2011 objectives, supported by strong solar activities and Asia, but expressed cautious for 2012 due to economic climate remains uncertain.

* LAFUMA confirmed its performance targets for 2010-2011 following a growth of 1.7% of its turnover in respect of the fiscal year.

Gold was well on Monday to undergo its biggest drop in three days the last 28 years, investors are turning away from commodity markets to protect themselves from the potential impact of a default on the remaining Greek countries in the euro area.

"Gold is one of the few assets that remained in positive territory this year (…), so when investors are looking for money, they sell assets that have underperformed.Basically, gold is a victim of its own success, "wrote in a note Edel Tully, an analyst at UBS.

The price of spot gold was trading at 1,623.19 dollars per ounce to 11:25 GMT, down some 3%.

During the last three days, gold has fallen nearly 10%, its biggest decline in this time interval since February 1983.

"This shows that in times of extreme stress, there is no adequate substitute for liquidity," said Tom Kendall, an analyst at Credit Suisse.

Gold has dropped more than $ 100 last Friday's rebound against the greenback and rumors of liquidation of positions by large hedge funds.

The lack of consensus for a solution to the crisis of sovereign debt in the euro area has pushed gold to new heights this year, reaching more than 1,900 dollars per ounce.

"The increase in the volatility of gold prices was a clear indication that gold was no longer a low-risk assets," said Nic Brown, on commodities strategist at Natixis.

In its hunt for tax evaders, the U.S. Department of Justice is now turning also to Israeli banks, with branches in Switzerland are suspected of helping U.S. citizens evade taxes in their country, we learn from sources close to the file.

The banks involved are Bank Hapoalim, Bank Leumi le-Israel BM and Mizrahi-Tefahot.

This extension of investigations to Israeli settlements mark an intensification of the fight against tax evasion, which opened in 2007 against UBS and Credit Suisse recently against continued.

However, Israel is a state close to the United States with whom he maintains close diplomatic and military support from more than $ 3.1 billion per year.

Aviram Cohen, spokesman for Bank Leumi in Tel Aviv, said Thursday that "the application related only to statistical data. It appears that these data will be used to an agreement between the Swiss and American. Obviously, the Bank Leumi Switzerland is cooperating fully with authorities in accordance with the law. "

According to the Swiss press, U.S. officials now have statistics of ten Swiss banks suspected of justice by helping their clients based in the United States to evade taxes.

The Deputy Minister of Justice James Cole sent a letter on August 31 asking for statistical information to Swiss banks in September and three Israelis.It gives them until Sept. 23 to provide details of their customers.

UBS has already passed under the yoke of American justice, having delivered nearly 4,500 American identities of customers in addition to the payment of $ 780 million to avoid a trial that had threatened its existence.

Bank stocks were the main victims of a new Black Monday stock market. But according to Dominique Dequidt, fund manager at KBL Richelieu, concerns about them are exaggerated.

Fears about the banking stocks have been very heavy on Monday on all European markets. In Paris, Societe Generale tumbled 8.64% to 20.25 euros, signing the largest decrease in the CAC 40. BNP Paribas lost 6.34% to 31.30 euros, Crédit Agricole (-5.51% to 5.84 euros) and Natixis (-5.68% to 2.55 euros). In the background, the difficulties of Greece, the threat of a lawsuit in the United States against 16 banks – including Societe Generale – for their responsibility in the subprime crisis, and the desire to recapitalize European banks by the IMF .Dominique Dequidt but remains optimistic.

What are the fears about banks today?

First, the gradual disappearance of the sovereign rating in Greece opened the door to further degradation, Ireland and Portugal in the lead. This is one of the great fears in the market today. Investors fear losses that may result in banking stocks that are exposed. Indeed some of the U.S. money market funds that had liquidity of investments in Europe have rather taken off the market last week. The second point is the deterioration of the American note in the summer. She amplified these fears and stoked fears of slowing global growth.

These fears are justified?

It is not really justified, at least in the short term. It is mainly a crisis of confidence that undermines the market.But look closer, banks are healthy. When we look at the credits granted by banking institutions in Europe, there is no need to panic. They rose 3% in the first quarter and 4% in the second. And despite a rather European growth at half the second quarter.

Banks are robust enough to withstand the risk of European sovereign debt and the threat of global recession?

Yes, in the event that we are not witnessing a collapse of the banking system. But there is no need to be as alarmist as the IMF on the recapitalization of banks. They have made big profits in the first half. BNP Paribas, despite its 450 million refinancing of provisions in the Greek debt, posted a profit of more than 2 billion euros in the first quarter.

But banks are very fearful to lend to each other.The level of cash placed with the European Central Bank has reached 151 billion euros Friday …

We are in a tense situation since the beginning of August the fears are heavy on the strength of some banks. Hence the difficulty they face to lend to each other. This level is certainly high compared to six months ago. But we are still far from the amounts of their outstanding 2008 in which the ECB had reached astronomical levels.

The trial of the U.S. federal government against 16 global banks – including the general society – he may weigh on an already difficult climate?

I do not think, at least for France and Europe. They are not involved in the trial. And regarding the risks of fines, it is called, in the extreme case, a sentence that would amount to hundreds of millions of euros.This is a difficult but there is no major concern to have.

To what extent can we expect an impact on the real economy if the situation worsens?

Banks have made a big effort on their balance sheets, it is not in the same situation of overheating than during the crisis. They are now well prepared for the state of distrust of the markets. But the phenomenon of double-dip recession may occur. 3 months ago investors imagined a soft landing in growth after the good figures of 2010. Today expectations are more cautious, and go up to imagine a recession in 2012.

The President of the European Central Bank Jean-Claude Trichet reiterated over the weekend of the ECB's commitment to price stability, which it considers "essential" to promote growth.

These words, delivered Saturday at the annual meetings of Jackson Hole (Wyoming), have followed a remarkable response from the Executive Director of the International Monetary Fund (IMF) Christine Lagarde, who has warned against the risk of the global economy plunging into recession and called for a rapid and coordinated political action, particularly through a recapitalization of banks.

"We believe that the very solid anchoring of inflation expectations is our one of our major assets," said Jean Claude Trichet, who did not mention in his address the crisis of sovereign debt in the euro zone or prospects for the policy of the ECB.

"This is something we consider absolutely essential to trust," he added, saying that confidence was useful in a difficult environment to help maintain growth.

The European Central Bank will adjust its monetary policy unconventional specific problems it faces, said the head of the institution in Frankfurt.

"The use of unconventional measures depends on the operation of the transmission of monetary policy and must be proportionate to the level of malfunction or interruption of money and capital markets or market segments," he said.

Jean-Claude Trichet echoed the comments of Christine Lagarde, that the upheavals of the political process in Europe increases the uncertainty.

"Paradoxically, we – as a group, as a whole – are not necessarily being in trouble because our fundamentals are very bad. Our fundamentals are very bad.The problem is that we have created difficulties in our governance, "he said.

"SLOWDOWN DOES NOT MEAN RECESSION"

Austria's Ewald Nowotny, a member of the Governing Council of the ECB and also present in Jackson Hole, said in turn that there was no reason to believe that inflation expectations had increased.

"What we see is that inflation expectations are stable," he told news agency Bloomberg.

"At the moment, when I look at oil prices and demand, I see no specific problem that could contribute to an increase in inflation expectations."

These comments suggest that the ECB has a mandate to keep inflation just below 2%, could keep its rates unchanged after two successive increases this year.

To the Governor of the Austrian National Bank, "the prospect of growth is intact" in the euro area and provide a solid foundation for next year.

"Even if there is a slowdown, it does not mean that there is recession," he said to Bloomberg, saying not to believe that the interbank lending market was moving towards paralysis, as in 2008 after Lehman Brothers.

"We should not overstate the situation (…) We are far from a situation like after Lehman.It's something to watch, but not an immediate challenge. "

Earlier this month, Ewald Nowotny was found that the surge in bank deposits with the European Central Bank was worrying, but warned that the economic situation in the euro area had not changed overnight.

Nicolas Sarkozy and Angela Merkel Wednesday wrote to Herman Van Rompuy to ask him to chair the euro area, as they had announced the previous day. From there to talk about a government of Euroland, there is not that member states are not about to cross. Nicolas Sarkozy and Angela Merkel suggested Wednesday, August 18 to Herman Van Rompuy to chair the government's economic futut the euro area.

Following a two-hour meeting at the Elysee Palace, Nicolas Sarkozy and Angela Merkel proposed Tuesday the creation of a "real government of the euro area" which is moving, they say, "to economic integration enhanced ". This government will meet twice a year. Its president is elected for a term of two and a half years.The French president and German Chancellor wrote Wednesday to the current president of the European Union, Herman Van Rompuy, to offer him the position.

So far, only there – permanently – the Eurogroup, the Council of Ministers of Economy and Finance of the euro area, chaired by Jean-Claude Juncker of Luxembourg, which meets once a month. Its authority and ability to coordinate the economic policies of Member States leaves much to be desired – his decisions must always ultimately be validated by the Heads of States and the differences between the growth strategies of countries have increased.As for the many recent and between heads of state, they only occurred against a background of urgency of the crisis.

"The government of the euro area, it's dressing, it is a structure that builds to existing consultation bodies, said Henri Sterdyniack, an economist at the OFCE and the University of Paris Dauphine. A government, then a leader and ministers, who decide on the budgetary and fiscal policy. I do not see how a meeting twice a year the heads of state will change the economic governance of the euro area. "

Economic governance must be ways

"Having an institution at the level of Heads of State and Government to take stock of the euro area is a good thing, for its part considers Stephane Cosse, responsible for the economy to the modem. But we can not about economic government.This would require a European finance ministers in charge of ensuring consistency of the budget guidelines state, assess their financial needs, overseeing the issuance of treasury bills in Europe, and to embody the political level the unit of the euro area ".

Herman Van Rompuy can embody this super minister? This would give him space. Or whatever the skills of the former Belgian Prime Minister, he will remain a prisoner of the procrastination of European states and their leaders. And especially since his appointment has already been placed under the supervision of the Franco-German couple. In addition, an economic government must have the tools at its disposal to go far from folds fiscal year integration, such as Eurobonds. These were rejected by Paris and Berlin.

"The euro area as constructed has no budgetary authority and tax.As this power will not exist, the market will think he can win, says George Soros in an interview in Le Monde dated Thursday, August 18. "Europe is in danger," concluded the Hungarian-born American financier.

Faurecia has identified its goals Tuesday in 2011 after a first half marked by strong growth as the automotive supplier will maintain the second half through its investments outside Europe and in countries at low cost.

The specialist for exhaust systems and car seats, including the manufacturer PSA owns 57.4%, achieved a consolidated turnover of 8.15 billion euros in the first six months of the year, a up 19.4%.At constant scope and exchange rates – it has gained particular outside the specialist German automotive Plastal – the growth was 15.5%.

Faurecia's operating profit rose 57% to 340 million, giving a margin of 4.2% against 3.2% a year earlier, and net income, group share, increased by 82% to 185.8 million euros.

"With the strong growth recorded by the group in the first half and improved profitability (…), Faurecia is now a year ahead of its business plan 2010-2014 presented in June 2010," said the equipment in a statement."Growth should remain strong in the second half in all regions and medium term supported by a high level of acquisition of new programs."

In a presentation to analysts, Faurecia said to expect in 2011 a new record in terms of new contracts expected between 13 and 14 billion euros against 13.1 billion in 2010.

The group also raised to 450 million its investment objective for this year, against an initial assumption of 350 million.On behalf of the profitability and international expansion, priority is given to low cost countries, where investments will increase by 89% against 16% for countries where the cost base is higher.

Faurecia has 42 industrial projects under way, eight in Central America and the North – including five in Mexico – twelve in the European area – including nine in Eastern Europe, Russia and Turkey – and twelve in China.

ONE YEAR AHEAD OF PLAN

As part of its strategic plan in the medium term, the equipment is a turnover of 16 billion euros by 2014, driven by an expected average annual growth of 12%, 8% organic growth.Faurecia is also an operating margin of 4 to 4.5% in 2012 and then 5 to 6% in 2014.

In June 2010, he had also set a goal of doubling the share of sales outside Europe makes it to 42% within five years, against 23% in 2009.In the first half, the share of sales – excluding monoliths for catalytic converters that Faurecia bought out – carried out in Europe reached 34%.

For the year, the Group has revised upwards its target of consolidated net sales to 15.7 to 15.9 billion euros, against 14.8 to 15.3 billion expected so far, an increase from 13.8% to 15.2% compared to 2010, and refined to increase its target for operating profit to 620-650 million euros, against a previous range of 580-640 million.

"The results are in line with consensus," said JP Morgan Cazenove in a note."The forecast EBIT is revised up slightly, but remains in line with consensus, while the increase in capex reduced cash flow prospects."

Faurecia has revised down to 100 million euros its forecast net cash flow in 2011, against 200 million euros expected so far.

The action Faurecia closed Monday at the Paris Stock Exchange to 30.34 euros, giving a market capitalization of around 3.2 billion euros. Since the beginning of the year, the stock jumped 40%.