US & World News

Euro Disney said Wednesday it has widened its annual net loss due to deterioration in the profitability of its property development activities and increased its costs.

The operator of Disneyland Paris has recorded for the year 2011, ended September 30, a consolidated net loss of 63.9 million euros, against 45.2 million last year.

Its annual turnover to 1.297 billion, increased by 1.8%, tourism growing by 4.9% to 1.275 billion while the real estate development saw its sales drop 62.4% to 22.5 million, reflecting a major assignment.

Parks attendance reached 15.6 million visitors, 600.

G20 countries Thursday put the finishing touches on a concerted action plan to try to put the global economy on the path to a sustainable and balanced growth and discussed the possibility of increasing IMF resources to help countries reeling from economic shocks.

According to a draft final statement dated November 2, they should agree at the end of their summit in Cannes on the need for countries with high deficits to put their finances straight and for those who have surplus boost domestic demand.

As part of this plan, Italy, which is in the eye of the storm of the European crisis, promise to reduce debts and deficits (see) to quickly bring in 120% from 2012 in its public debt of national wealth."There is a broad consensus on the need for additional financing (…) We will work on it tonight and tomorrow," she said.

PASSAGES IN WHITE

If the passages devoted to IMF resources and currency remain white, indicating that these issues are still debated, the draft final communique is also no real surprise.

Given the risk of future crises, the G20 leaders are considering a proposal to create a new credit facility in the short term the IMF to help countries that are virtuous face of exogenous shocks ().

European authorities began Wednesday to prepare the banks of the continent to a possible failure of Greece.

For the first time since the crisis began, bank supervisors have decided to enhance their market sovereign debt held by banks in the EU as part of the recapitalization process in progress, officials said Wednesday European source.

The EBA, which will retain a definition of bank capital similar to that used in the last series of stress tests in July, will harden further 9% threshold due to equity "hard", reflecting the wishes of Paris and Berlin and by the European Commission on Wednesday in his "roadmap" to end the crisis.

"This is an exercise prudential.It is therefore logical that the ABE values ​​sovereign debt to market value or a value very close to that market, "said a source familiar with the discussions.

Regarding the definition of capital, "it corresponds to that used by the BEA in July.This is harder than the current one but is softer than that provided by the new Basel III standards, "the source said.

Once it receives the data that are currently provided by the banks, the EBA will prepare a proposed recapitalization of institutions of systemic Twenty-September for the meeting of EU finance ministers to be held October 21 , the day before the EU summit.

ROADMAP

This will be adopted simultaneously with the new bailout of Greece, which must reduce the debt of Athens so much greater than had been planned in July and then revise upward contribution "voluntary "the private sector.

According to several European sources, the losses that private investors must accept their obligations in the Greek part of the new plan should be between 30 and 50%, not 21% as expected.

Institute for International Finance (IIF), the discount would represent 39% when using the current market prices to assess the risk profile of the country

The roadmap of the Commission also calls on members of the euro area to complete without delay the ratification of the new European Financial Stability Fund (EFSF).

Last country to have to run, Slovakia will vote by Friday, officials said Wednesday following the agreement between three parties of the government resigned and the main opposition party.

The roadmap, which calls in line with discussions held at the EBA to a building "significant" capital requirements of banks, also advocates a recapitalization through private funds, which will be supplemented by funds public and by loans from the EFSF in case of negative response from the market.

France, who insisted behind the scenes for several days to use the EFSF as an instrument of coordination in the recapitalization of banks, said Wednesday it would not appeal.

"EURO BONDS"

The other two parts of the document from the Commission concerning the acceleration of measures currently being discussed in Brussels, but designed to boost European growth and most importantly, the implementation faster than expected European Stability Mechanism (MES).

The MES, which was to come into force on 1 July 2013, finally begin to operate on 1 July 2012 according to the wishes of the Commission. It includes a device that allows a country to default on its debt in an orderly manner.

"The roadmap traces the path to the exit of the economic crisis for Europe. The partial answers to the various aspects of the crisis are no longer sufficient.We need to take the lead, "said Commission President José Manuel Barroso to the European Parliament.

"We must reach an agreement at the EU summit of 23 October," he said, also urging the leaders of the euro area to release the next tranche of aid to Greece.

He also confirmed that the EU executive would present by the end of the year a proposal to create a framework for joint programming of debt between members of the euro area, also known as "Euro bonds."

European shares opened sharply higher Tuesday, extending their rally started Friday afternoon, still supported by expectations of further measures to stem the debt crisis in the euro area.

At 9:36, the CAC 40 index advances 2.79% at 2939.25 points after taking 1.75% Monday, with a volatility index down 4.31% to 47.81 points.

According to the U.S. television network CNBC, which cited a European financial responsibility, a special fund could be created through the European Investment Bank to issue bonds and purchase of European sovereign debt.Bonds could also serve as collateral for the ECB, CNBC added.

Austria's Ewald Nowotny, a member of the Governing Council of the ECB, for its part, said at a conference at Harvard University, an increase in the size of the European Financial Stability Fund (EFSF) was likely but would probably not as important as what some people expect, "not the order of a thousand billion" euros.

The "rally" bear markets are more violent, says Frederic Buzare, head of equity management at Dexia Asset Management, which has 85 billion euros of assets under management.The rebound will not last if investors do not get clear action plan to resolve the crisis, he added.

In this type of policy-driven market, it's all about the risk premium. The valuation ratios are no longer relevant, adds the manager.We spend more time reading the statements of leaders (political) to study the balance sheets of companies, he says.

For his part, U.S. President Barack Obama said Monday night that the crisis of European debt was "afraid the world" and that European leaders attacked the problem but not as quickly as needed.

Other major European markets, the London Stock Exchange gained 2.1%, the Frankfurt 3.2% and 2.6% in Milan, while the pan-European index STOXX 50 wins almost 3%.

Bank stocks are still at the top of increases in the CAC 40, with a gain of more than 9% for BNP Paribas, over 8% for Societe Generale and more than 7% for Credit Agricole. Axa takes 7.8%.The index of banks in Europe advance 3.5% /

But all sectors benefiting from the rebound on Tuesday, including cyclic, with a rebound of 4.5% of the index motor and 4.1% of commodities that had posted the weakest performance yesterday.

A barrel of U.S. light crude rose 2.6% to 82.29 dollars and Brent from 1.2% to 105.22 dollars, causing the oil companies and related industries in its wake.

The performance of the German government bond (Bund) and 10 years is around 1.9% against 1.8% the day before closing, while the euro is stable against the greenback around 1.3530 dollar.

Kweku Adoboli was detained after appearing in court on Thursday. He is responsible for the loss of $ 2.3 billion by UBS. Kweku Adoboli in London.

Kweku Adoboli, the trader accused UBS of fraud that cost $ 2.3 billion in the bank, was detained, following his appearance before a London court Thursday. The boy will remain jailed at least until his next hearing on October 20, announced the judge.

One of the counts added was retained by the court in this case for a fraud committed between October 2008 and December 2010. "He is sorry for what happened, beyond what it can express," said his lawyer, Patrick Gibbs. "He went to the people of UBS and told them what he had done. It is now appalled by the magnitude of the consequences of his disastrous miscalculation," he added.

The trader, 31, who appeared Thursday in dark gray suit and blue tie, is suspected of fraudulent transactions within UBS. He was charged and detained last Friday in London. His lawyer did not indicate whether he intended to plead guilty at this point. The gendarmes of financial markets in Switzerland and the UK have also launched independent investigations into the circumstances of the losses incurred by UBS.

This increase in tax rates, btisée "Buffett rule", only affect 0.3% of taxpayers, less than 450,000 people. President Barack Obama issued Tuesday, August 2, 2011 text authorizing the raising of the ceiling of U.S. debt.

President Barack Obama will propose Monday to raise taxes on millionaires so that they reach at least the same percentage of their income than that applied to middle-class taxpayers, said Saturday the New York Times.

Citing government officials, the newspaper says Obama will present a draft on this issue during a speech at the White House, he calls the "Rule Buffett", named after the multimillionaire Warren E. Buffet.It was recently pointed out that the richest Americans pay a smaller proportion of their income in federal taxes than middle-income employees.

Profits on investments – such as profits from capital, dividends or premiums paid to investors and holders of risky investments – are taxed less than wages, in fact, explains the New York Times. In addition, those receiving more than 106,800 dollars do not pay Social Security tax.

The newspaper said Obama will not show the tax rate or clear it intends to apply the amount it hoped to achieve through this measure and will not provide further details, these should be included in a program long-term deficit reduction.However, it will call savings of $ 300 billion over ten years of health insurance for the elderly and medical aid to the needy.

A joint committee of Congress is working on a bipartisan agreement on the budget to be presented in late November while the Republican representatives opposed the project of the president to tax the companies in the sectors of oil and gas and individual income above $ 200,000. The tax would only affect 0.3% millonnaires taxpayers, less than 450,000 of the 144 million returns recorded in 2010, according to The New York Times.

The Tokyo Stock Exchange ended Wednesday on a sharp decline, yielding 1.14% in a climate of anxiety about the continuing debt crisis of the Greek, which encouraged profit taking after Tuesday's rebound.

The Nikkei lost 97.98 points to 8518.57, a lowest level in two and a half years, and Topix, broader, sold 8.13 points (1.08%) to 741.69.

The highest exposure to Europe were particularly hard hit.Canon has lost 4.08% to 3,295 yen.

In early trading, some purchases on the cheap recently battered shares pushed the Nikkei up to 8671.24, but profit-taking quickly reversed the trend.

The values ​​of the video game industry, fell sharply Tuesday after a presentation judged disappointing by Nintendo, have recovered slightly.Square Enix has made 0.48% to 1,475 yen after losing 3.9% on Tuesday.

Also on the rise, Sharp has benefited from the announcement of an expected increase in sales in Indonesia to gain 3.3% to 595 yen.

Ricoh has instead plunged 1.67% to 648 yen after lowering its target price of 900 yen to 600 yen by Macquarie Securities, who expects weak demand for copiers in the second half of the fiscal year.

European shares regain some ground Tuesday morning, after two sessions of fall in fear of a worsening debt crisis euro and its impact on the banking system.

At 9:13, the CAC 40 index takes 0.54%.

London rose by 0.4% and 0.3% of Milan, Frankfurt rebounds by 0.4% and the EuroStoxx 50 returned 0.46%.

Stoxx index of bank takes 0.53%.

The federal agency that oversees the mortgage market in the United States may soon file a complaint against several major banks for their role in the subprime crisis, which weighed on bank stocks on Wall Street Friday.

The Federal Agency for Real Estate Finance (Federal Housing Finance Agency), which oversees the giants Fannie Mae and Freddie Mac, accuses several major banks have given a misleading picture of the quality of mortgages bundled and sold during the housing bubble, said on Friday a source close to the matter.

These loans, said subprime, are the cause of the bursting of the real estate bubble in late 2008.Institutions making home loans had significantly eased lending standards to attract new customers and sell homes they had no way to pay, betting on a continued increase in the property market.

The existence of this complaint in a pending first was reported Thursday by The New York Times before being confirmed Friday by a source contacted by Reuters.

The source declined to name the specific bank, but according to the New York Times, citing three people familiar with the matter, the government agency will continue to include Bank of America, JP Morgan Chase, Goldman Sachs and Deutsche Bank.

By 1515 GMT on Wall Street, as BofA unscrewed more than 6%, yielding 3.5% JP Morgan and Goldman Sachs lost 4.6% while the Dow Jones fell by 1.6%.

Costly litigation

The complaint will be filed Friday or next Tuesday, understands the New York Times. Those responsible for BofA, JPMorgan and Goldman Sachs did not wish to make comment.

"We can not express a complaint which we are not aware and has not yet been filed," said a spokesman for Deutsche Bank in the NYT.

Fannie Mae and Freddie Mac lost more than $ 30 billion mainly due to purchases of securities backed by real estate debt.It took public money to correct their accounts.

The federal agency in housing finance has already filed a complaint against UBS in July, seeking to recover at least $ 900 million and, according to those quoted by the New York Times, the new proceedings will be of a similar financial scale.

The major U.S. banks are already facing the possibility of having to pay tens of billions of dollars in settlement of disputes relating to their activity in the mortgage.

This scenario would further reduce their levels of capital, potentially paving the way for a credit crunch even though the housing market is at half mast and that the U.S. economy as a whole shows signs of slowing down.

Sign of anxiety about this, the U.S. Federal Reserve has asked Bank of America to present the measures it would take if business conditions were deteriorating, reports the Wall Street Journal Friday, citing people familiar with the matter.

Wall Street closed higher Wednesday, a new set of economic indicators back feeding the hope that the Federal Reserve gave a new boost to the economy at its policy meeting in September.

But the fact is precisely that economic indicators have generally been disappointing Wall Street has been reluctant in the afternoon and the three major indexes are now spent in the red.

The Dow Jones gained 53.58 points (0.46%) to 11,613.53 points. The S & P 500 is 5.97 points (0.49%) to 1218.89 points. The Nasdaq Composite Index advances 3.35 points (0.13%) to 2579.46 points.

On the month, the Dow Jones loses 4.4%, the S & P gives 5.7% and the Nasdaq was down 6.4%.This is the worst month of the S & P since May 2010.

However, since the beginning of the year, the Dow shows a slight gain of 0.3%.The S & P 500, meanwhile, has still gained almost 9% in seven of the last eight sessions, led by sectors sensitive to the economic cycle.

The minutes of the meeting of the Fed's August 9, released Tuesday, shows that it has proposed a series of actions to support the U.S. economy at its meeting in early August, some members calling for bold action.

At annual meetings of Jackson Hole, held last week, the Fed chairman Ben Bernanke had said she would meet two days in September, instead of originally planned, to reflect on the possibilities of creating a new monetary stimulus.

In terms of statistics, job creation in the private sector in the United States were below expectations in August, according to the results of the monthly ADP released Wednesday. It was created 91,000 jobs in August, while the market was expecting 100,000.

Moreover, the index of purchasing managers in the Chicago area fell in August, slightly less than expected, while falling to the lowest since November 2009.The index published on Wednesday in August falls to 56.5 against 58.8 in July and a consensus on giving 53.5.

In contrast, industrial orders rose 2.4% in July in the United States, more than expected, driven upward by the strength of the transport sector, said Wednesday the Commerce Department.

The fact that, according to sources, the U.S. Department of Justice has hired Wednesday a procedure to block the sale of T-Mobile, U.S. subsidiary of Deutsche Telekom, AT & T, for reasons of respect for competition weighed on rating during the session.

AT & T lost 3.85% and the S & P Telecommunications 1.63%.

Some values ​​high tech weighed on the Nasdaq, which explains its low gain closure.Apple sold 1.32% and 2.7% Nvidia for example.

Good performance of industry, however, with their S & P gained 0.68%. Caterpillar is 1.3% and 1.1% Honeywell International.