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The time of easy financing of the debt it is soon gone to the United States and the United Kingdom? Large investment funds such as Pimco and BlackRock, fear that record levels of debt can cause a rise in interest rate markets. For states, this means a debt more expensive to finance. For investment funds, this translates into a loss of value of their bond portfolio. These have accordingly reduced their exposure to U.S. debt and the UK, according to them particularly vulnerable.

The California Pimco, the largest bond investor in the world which manages 199.5 billion dollars on this market, has reduced its shares of American and British debts to a level not seen since the bankruptcy of Lehman Brothers in September 2008, reports agency Bloomberg.The European BlackRock has in turn reduced its exposure to these securities at its lowest level in two years, the Financial Times.

Investment funds fear two things: that the interest rate, the lower back quickly and that the market can absorb the debt securities issued as required by the states … fueling the rise in yields . A concern that is primarily about the United States and the United Kingdom.

Decline in value of portfolio

"The question posed to the fund now is: when and how fast interest rates will they go?" Analysis Bruno Cavalier, chief economist at Oddo. A rise in interest rates next, helped by economic recovery, would mechanically increase the yields of bonds issued in the coming months.As a result, the securities purchased in the past by the fund with a lower yield, would see their market prices fall. This would melt the value of fund portfolios.

In this perspective, bond yields have rebounded. "Today, the yield on the U.S. ten years is around 3.8% against 3.2% last month and a half … and cons 2% a year ago," notes Bruno Cavalier. Same trend for UK Treasury bills. A consensus of analysts surveyed by Bloomberg, the ten-year yields should rise by 4.01% today to 4.31% by end 2010.

Still, the natural demand for sovereign debt should continue, slowing the rise in rates. The new regulations are put in place will indeed require banks to offset the risk by increasing their liquidity cushion.They then turn to bonds. Therefore, "even if emissions of sovereign debt increased sharply, demand should rise dramatically," said Laurence Boone, chief economist at Barclays, before agreeing, referring to ads Pimco: "We are never at 'immune from turmoil in a market if investors decide to all move together … "

The U.S. Treasury will have to wait again. The sale price of shares has been fixed by CITIGROUP, to 3.15 dollars. A figure below the $ 3.25 paid by the U.S. government, when fitted with a capital of the group last year and well below the closing price of 3.45 dollars per share Citigroup Wednesday.

Suffice to say that this news is more embarrassing for the U.S. Treasury had planned to sell up to five billion dollars of securities it owns Citigroup and completely out of the capital within six to twelve months.However, in the context of extending the bailout of banks until October 3, 2010, the U.S. Treasury has decided to extend for 45 days after freeze selling 7.7 billion shares it holds stake in Citigroup.

Citigroup plans to issue 17 billion worth of shares and will raise 3.5 billion extra in the form of securities convertible into shares in deteriorating solvency ratios. If market demand is strong, Citigroup may increase its emissions to 19.55 billion dollars.

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Citigroup pays 20 billion to the U.S. State

It is expected that Monday morning, important announcements of Government of Dubai, after the panic that swept over the markets last week following the announcement by Dubai World to a deferment of six months minimum payment of a debt of 3.5 billion. The reaction of local exchanges, after four days of closure because of the Eid holiday, was also highly anticipated.

It seems that support the day by the Central Bank of UAE, which has decided to provide creditors with more cash, has not reassured investors. The Exchange has unscrewed from 8.31% in Abu Dhabi and Dubai lost 7.3%. "The security of the Central Bank is limited to banks to avoid a systemic effect.But this does not solve the crisis, "notes Pascal Devaux, economist at BNP Paribas.

Dubaïotes authorities have not made this Monday in response to a specific exit strategy. The only communication came through the Ministry of Finance, who said that the emirate would not assume the liabilities of the conglomerate. "It is for creditors to assume their own responsibility in the decision to lend to businesses," said Abdulrahman Al Saleh, director general of the ministry on the television channel Dubai TV. "The creditors believe that Dubai World is part of the state, which is incorrect.The State owns the company, but since its creation, it is determined that the company is not guaranteed by the state, "he added.

Lack of transparency

By disconnecting and Dubai World, a huge conglomerate that has a dozen subsidiaries and displays 59 billion in debt, including 25 billion for real estate division Nakheel, the emirate is likely to worsen the climate of uncertainty and lack of investor confidence. Just as many experts criticized the lack of transparency and communication, particularly on economic issues in the emirate.

The target for Dubai is to prevent contagion to the entire economy of the region. "He actually tries to distinguish the business risk of sovereign risk," says economist of BNP Paribas.This to avoid that risk assessment has a negative impact not only on the sovereign risk of Dubai but also in its larger neighbor Abu Dhabi. For, while suggesting that the rescue medium term can only come from the oil revenues of big brother.

Besides this solution, Dubai has little alternative to overcome the crisis. Either the conglomerate renegotiate its debt with the risk of a higher price if the markets continue to fall. The other option is to sell off its property assets that have lost much value with the crisis. If this seems impossible at this time, Dubai will not be shy of a restructuring.

Finally, one thing is certain: by the agency Moody's, the impact of the crisis "could be disastrous" for the confidence of investors by pushing interest rates upward.What curb heat recovery of an economy still recovering and setting appropriations for the restart.

"In town, ruined speculators cross workers unemployed

Thiery Morin returns to the front of the stage, eight months after his departure thundering Valeo. To recall, the former CEO had a lot of talk, taking his ouster in a check for 3.2 million euros, equivalent to a "golden parachute" when at the same time, the group lost 287 million euros over the full year 2008 and disband as many as 5,000 employees worldwide.

The latter has recently entered the industrial tribunal to get compensation after a judge dismissed it "unconscionable" and "without real and serious cause". He estimated the damage suffered to some 2.5 million euros, according to RTL radio.

This amount would be added and the 3.2 million already received in March by Thierry Morin, snubbing it in the request of shareholders who wanted to see the money returned to the group.

But Thierry Morin did not stop there.The former CEO also claimed a medal of honor labor to recognize the quality of work for eight years as head of Valeo.

The management group, which recorded 209 million euros in losses since last January, has politely turned down his request.