International News

The Chinese central bank announced this weekend a further increase in reserve requirements of major banks by 0.5%. This level will be 14% for small financial institutions and 17% for large banks. This is the third time that the People's Bank of China raised the reserve this year. The move is seen as a prelude to higher interest rates, much anticipated in 2010, but it is also a way to delay interest rate hikes this by tightening the screws on the credits via the proportion of reserves. This measure will be effective on May 10

Beijing seeks to put a brake, while concerns about overheating and bubbles in real estate including resurfacing.

Most analysts remain confident about the ability of the Chinese government to curb the overheating, but some are sounding the alarm.In an interview with Bloomberg, economist Marc Faber announcement and a possible implosion of the Chinese economy by a year.

Since Tuesday, investors are moving away from safe-haven assets following the various signs of recovery in the global economy. The success of Intel promote appetite for risk. What will weigh on the dollar. Just as the maintenance of the speech by the Fed, which promotes interest rates still very low even for long.

EUR / USD – Sessions hectic since early April

After the Easter weekend, there has been a depreciation of the euro against the dollar in a climate of distrust of so-called risky currencies. The operators were cooled in their appetite for risk because of their fear on the issue of Greece. The single currency has lost about 220 pips * from a quotation of dollar 1.3500 1.3282 U.S. dollar on Thursday at 10am (lowest of the week).

Then the tension on the markets have weakened.Speech by Jean-Claude Trichet, president of the ECB (European Central Bank) last Thursday, has eased the financial world. He said he pursued the policy of low interest rates up to 1% in the euro area. And it has said that "Greece was able to reduce its deficit" and had already started to employ strong measures.

Nothing better to give a boost to the euro. The last weekend, offering assistance to 30 billion euros – Athens does "not want to use" – the European Union gave a big blow oxygen, allowing the euro to rise around 1 36 dollar on Monday.After two sessions of stagnation (Monday and Tuesday), the exchange rate has increased again, bolstered by renewed investor optimism about the strength of the global recovery due to favorable economic statistics, while comments Fed chairman on a forecast of "moderate growth" have weighed on the greenback.

On Tuesday, the foreign exchange markets have welcomed the issuance by Athens Treasury bills.And on Wednesday, Ben Bernanke (Beige Book) reiterated Wednesday that the rate of the institution should remain close to zero, at which they are set since December 2008, for an extended period, dismissing speculation of an anticipated tightening of Fed monetary policy, which has given new impetus to the euro.

As expected by analysts Realtime Forex Tuesday, which saw the euro test the 1.3541 support for better back, it is mounted to 1.3667 to 18 hours.

CDN / JPY – Same trend

Nippon side, the euro followed the same "trend" * weekly against the yen. The single currency began a decline of more than 400 pips against the yen. On Monday, the euro / yen was quoted at 127.70 to touch a low of 123.40 yen. But from the response Trichet yesterday, the euro strengthened to 125.60 yen to return.

The yen fell for the sixth straight session against the euro, with one course from Wednesday to 127.07 yen against 126.83 yen the day before.

GBP / USD – Sterling held up better than the euro

Across the Channel, the BoE (Bank of England) has also left interest rates unchanged at 0.5%, indicating that this was not the time to make an adjustment of rates.

Monetary side, the pound sterling, however, fared better than the euro against the dollar. Like British macro-economic figures emerged this week (GDP 0.4% and manufacturing output up 1.3%), the pound has evolved into a "range *" between 1.5130 and 1.5320 dollar.

* The cable is able to break this channel by treating up to 1.5473 dollar.

Against the yen, the pound again the delay and found almost the level of 144.21 yen on Monday.

CHF / EUR – Swiss Franc still going strong

On Wednesday, the Swiss franc 1.4362 per euro symbol. This is a very strong for the Swiss franc, which traded in 2009 almost all the time between 1.50 and 1.54.

Since the beginning of the year, the Swiss Frabce climbed more than 5%. This is not the business of the Swiss Central Bank, whose foreign exchange policy is heckled.

The yuan under the spotlight of the world

On Wednesday, Ben Bernanke, who appeared before the Joint Economic Committee of Congress, reiterated that "the United States must continue to press China to bring it to revalue its currency, the yuan."Barack Obama this week's encounter homolgue Chinese President Hu Jintao on China's trade deficit background.

Most economists agree that the currency is undervalued – by 40% according to analysts and has been used to obtain an economy more oriented toward exports to domestic consumption.

On the one hand, in case of revaluation, China would be ready to counter the speculative bubbles that threaten, and inflationary pressures. But then again, remember that a more expensive yuan will be more expensive for the "Western" to fill all Chinese products.And they will have the effect of melt exchange reserves in dollars of the Chinese, which does allow them to buy as many more U.S. Treasury Bonds, and therefore finance the debt of the United States …

* Definitions

• Forex: For Foreign Exchange, or foreign exchange market

• Technical analysis: analyst or chartist. She studied graphic evolution courses. The research in the historical price behavior involved in a situation to predict the evolution of financial securities.

• Pips: Price Interest Point. Unit rating for foreign currency. It designates the last digit used: in the case of the euro, the fourth decimal place.

• Trend: trend.

• Range: range.

• Support: value as the price has very little chance to pass down.

• Resistant: value as the price has very little chance to overtake on the rise.

• EUR: Euro, USD: U.S. Dollar, or U.S. dollar JPY Japan Yen or Japanese yen, GBP: British Pound, CHF: Swiss franc.

For Nicolas Sarkozy, "nothing would be worse than to change course." Three days after the defeat of the right in regional elections, the Head of State said "understand the impatience of the French", but promised to "continue the reforms."

In a television address after the Council of Ministers, the President detailed the major projects to come. Regarding pension reform, one of the most important issues of his mandate Nicolas Sarkozy has promised "not to go into force" while ensuring that it would be adopted "six months".

Also on the economic front, he expressed his desire to "continue to reduce labor costs and investment" to help France to recover from the crisis.Regarding agriculture, the Head of State expressed its readiness to provoke a "crisis in Europe rather than accept the dismantling of the Common Agricultural Policy.

The president also announced he would launch a "concerted" on the medical outreach. Several unions went on strike March 11 to demand a revaluation of the base rate of consultation, and a new operation is scheduled April 8

A law on the full veil

On social issues, Nicolas Sarkozy was back on the table the issue of the burqa guaranteed payday loans . "The full veil is contrary to the dignity of women. The government will introduce a bill banning "he said, without specifying the timing.

The president also brandished the threat of suspension of allowances for parents of children skipping classes. To the head of state, "the responsibility of parents must be committed." Moreover, "young people who can not attend a normal school will be placed in appropriate facilities where they disrupt the lives of most others and they will receive special support," he said.

The carbon tax postponed sine die

While stressing "the choice of a green tax", Nicolas Sarkozy confirmed on Wednesday that the Executive conditioned the establishment of the carbon tax to a hypothetical European Agreement on the device."I makes the creation of a carbon tax to a tax internal borders that will protect our agriculture and our industries against unfair competition from those who continue to pollute without shame", was it right after the first council government ministers slightly modified, which the Secretary of State for Environment Jouanno Chantal did not participate.

In the wake of their European counterparts, U.S. exchanges have closed the week on a steep decline: the Dow Jones lost 0.96% and the Nasdaq, 1.22%. However, publication of results in the fourth quarter of giant Intel on Thursday night after-hours trading was better than expected. But the JP Morgan Chase established the doubt. The day before the U.S. markets have closed up slightly, despite the disappointing statistics across the Atlantic. The sectors of health and technology have supported the trend.

Earlier Friday morning, Asian stock markets closed broadly in the green. Tokyo The Nikkei ended the session up 0.68% at 10,982.10 points. The Hang Seng in Hong Kong, however, ended down 0.3% to 21,654.16 points as investors still worried about a possible tightening of Chinese monetary policy.

The President's speech yesterday, Obama did not surprise the markets.As announced by the spokesperson of the White House, a proposed tax of fifty largest banks will be presented to Congress in the coming weeks. According to the Financial Times, the U.S. Treasury would press other countries to also adopt a tax on banks.

New wave of statistical significance

The consumer prices in the United States rose by 0.1% in December, bringing inflation over the whole of 2009 to 2.7%, according to figures released Friday by the Labor Department. In the short term, the inflation risk sembre low.

Industrial production in the United States rose in December by 0.6%, as expected by analysts, according to official figures published Friday, but this increase was primarily allowed by having an unusually cold boosted the energy sector.

The technology and banking suffer

Intel sells 3.17% to 20.80 dollars, while the U.S. group confirmed on Thursday evening the resumption of its activities, with net income nearly tenfold in the fourth quarter of 2009, which has reduced to 17% of the decline annual net profit to 4.369 billion dollars. This exceeds the expectations formulated earlier by analysts. "The market has seen a nice rise, everybody expected a good showing from Intel. To some extent it is a classic case of sales at the time of the announcement, "said Owen Fitzpatrick of Deutsche Bank. Even setback for Microsoft (-0.32% to 30.86 dollars), IBM (-0.38% to 131.81 dollars) and Cisco (-2.20% to 24.40 dollars).

Boosted by a return to growth in the fourth quarter, PC sales grew by 5.2% in 2009, according to a study by analyst firm Gartner published yesterday.Acer dethroned Dell (-2.04% to 14.40 U.S. dollars) in second place worldwide.

Even surprise to JP Morgan Chase, which lost 2.26% to 43.68 dollars. The U.S. bank has yet announced having doubled its net profit in 2009 to 11.7 billion dollars. Per share, net income reached 74 cents per share in the fourth quarter, against 62 held by analysts. In the fourth quarter alone, the bank has increased by more than four net profit to 3.3 billion dollars. The bank's CEO, Jamie Dimon, welcomed the news that the bank in late 2009 enjoyed a "very strong capital ratios Tier 1 of 11.1%. But the cost of risk (failure to pay on credit) remains "high". The bank especially in its accounts last quarter to 7.3 billion dollars in reserves to cover these risks.Morgan Stanley lost 2.88% to 30.30 dollars, Goldman Sachs 1.95% to 165.25 dollars, and Bank of America 3.33% to 16.26 dollars.

Citigroup (-2.85% to 3.41 dollars) would be decided by the Financial Times, to cap the bonus at $ 100,000.

Market research firm NPD has revealed sales of video game consoles in the United States for year-end 2009 total, the three major manufacturers have passed 40 million consoles in 2009, including 20 million for the Wii Nintendo, 10 million for the Xbox 360 and 10 million for the PlayStation 3 (PS3) by Sony, thanks to an aggressive policy of lower prices.

In addition, Verizon Communications (-2.05% to 30.58 dollars) will host a conference on its wireless subsidiary, which is partly owned by Vodafone (-1.82% to 22.09 dollars).

Oil retreats, dollar strengthens

Side materials, oil slipped below the 79 dollars a barrel and connects its fifth session lower after the report of the International Atomic Energy: global consumption of oil should rebound by 1.7% in 2010 fully supported by demand from emerging countries and Asia, after falling 1.5% in 2009.

The dollar is strengthening against the euro, which is penalized by the situation in Greece after the publication of inflation. One euro is worth 1.4385 dollars.

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.