US & World News

The Institute for International Finance (IIF) said Wednesday that the Greek government and its private creditors are close to final agreement on debt restructuring of the country, a conclusion is expected this week. "We are close to finalizing a voluntary debt exchange as part publicly exposed earlier this week by Jean-Claude Juncker in his capacity as President of the Eurogroup," have clared leaders Ifi. "We expect to conclude next week as discussions on other topics continues." Tuesday, bankers and politicians had suggested that the talks between Greece and its private creditors could come Wednesday. The prospect of such an agreement has contributed to the rise in world stock markets.

This bonus is 150 euros for a single person and 320 euros for a couple.

The Christmas bonus paid to recipients of certain social minima, as RSA, will be repeated in December 2011, announced Monday the Minister of Solidarity and Social Cohesion Roselyne Bachelot. "I can confirm that the Christmas bonus will be paid. This represents 380 million euros for the most vulnerable," said the Minister during the launch of the 27th winter campaign of Eating Heart in Paris. "For a single person, that's about 150 euros paid in the coming days and for a family with two children, 320 euros," said Ms Bachelot.

In 2010, the Christmas bonus had been paid to the beneficiaries including the RSA (active solidarity income) and those of the SSA (specific solidarity allowance, paid to certain unemployed at the end of law). She was concerned 1.7 million beneficiaries.The Christmas bonus was awarded for the first time in 1998 by the Jospin government under pressure from movements of the unemployed who have been demanding for years that it is substantially increased and the scope of its beneficiaries is expanded.

Right in the debate on a more vigorous European Central Bank (ECB) in the rescue of the euro, the U.S. ambassador to the European Union said it had "the potential" to resolve the debt crisis. ECB

The U.S. ambassador to the European Union suggested Tuesday that the European Central Bank had the "potential" to do more to resolve the debt crisis in the euro zone, while the debate rages in Europe on this issue. "We are following with keen attention that the European Central Bank is able to do and the potential it has to do more" to the crisis, said William Kennard, in a meeting with some journalists in Brussels.Many economists believe that only the ECB is now able to effectively firefighters to extinguish the fire and should follow the example of the Federal Reserve (Fed). The U.S. central bank acts as "lender of last resort" for the administration by buying unlimited market U.S. Treasury bonds.

"At the peak of the (financial) crisis that we experienced (USA), we were able to use the Fed in a manner different from that in which Europe can use the ECB. It s' acts of a fundamental structural difference, "said the ambassador. Mr. Kennard said would not know how to change the debt crisis. "The outcome of this crisis is quite unpredictable, we do not know how it will be resolved and I think nobody knows," he said.

European shares were down in early trade Friday, the pressure on interest rates fueling fears that some fragile countries in the euro zone no longer be able to refinance at an affordable cost.

At 9:03, Paris passed under the 3000 points and lost 0.83% to 2985.19 points.

At the same moent, London lost 0.95%, Frankfurt and Milan 0.83% 0.73%. The Euro Stoxx 50 index of the principal values ​​of the euro gave up 0.69%.

The Spanish 10-year rate rose above 7% (7.11%) and Italy's is 6.94% while the German Bund yield the same maturity is around 1.87% and that of the French OAT around 3.6%.

Boeing said Thursday that the Indonesian airline Lion Air was about to sign an agreement for the purchase of 201 737 MAX 29 and 737-900 for a total, based on list prices, from 21.7 billion dollars (16 billion euros).

"This transaction, when finalized, will be the largest order of civil aircraft in the history of Boeing, both in value and number of aircraft ordered," said a statement from the U.S. aircraft manufacturer.

He adds that the agreement with Lion Air, Indonesia's largest airline, also has rights to purchase 150 additional aircraft.

Boeing said that U.S. President Barack Obama will attend the signing ceremony for the purchase of 230 aircraft.

Like the A320neo from the A320, the MAX 737 is the version of 737 for fuel savings. The first copies should be delivered in 2017.

The Director General of the World Trade Organization, Pascal Lamy, on Wednesday approved the holding of a referendum in Greece on the rescue plan passed by the Europeans. All the latest news. Greek Prime Minister George Papandreou announced the holding of a referendum in January in Greece, to check the public support for austerity plans adopted by the country.

9:56: "The Greek referendum can be won" according to Pascal Lamy.Interrogé France Inter on Wednesday morning, the Director General of the World Trade Organization has justified the holding of a referendum in Greece. On the one hand, it "is normal that the people decide." On the other hand, argues that it is not in "the interest of creditors dealer with a government" which may be weakened and not reversed its commitments. "Finally, he believes that" from what my friends tell me Greek, the referendum can be won.The Greeks are probably able to appreciate that this or something even worse. "He admits, however, that the collapse of the euro area is" not totally ruled out a possibility today. "

9:34: "China sincerely hopes the stability of the euro area and the euro," said Hu in an interview with Le Figaro on the eve of the opening in Cannes for a G20 summit, to be dominated by the issue of European sovereign debt. The Chinese president is silent, however, on specific measures that China could hang in helping Europe to solve this crisis, in particular its proposed participation in a relief fund for highly indebted countries.

Wall Street finished sharply lower Monday, the initial enthusiasm born of the EU summit last week's fading from investors who question now no longer on how to resolve the debt crisis in the euro area but their use.

Still Wall Street has done its best month since 1991 and many analysts believe that the worst case scenario is ruled out at this time in Europe, the stock market is ripe for a further rise, investors are turning their attention to Chinese statistics and the U.S. better than expected.

The values ​​of natural resources have suffered from the fact that the dollar reached a peak three months against the yen as a result of intervention by the Bank of Japan to roll back the domestic currency.The Nasdaq Composite yield 52.74 points (1.93%) to 2684.41.

Of the month, the Dow shows a gain of 9.5%, the S & P by 10.8% and the Nasdaq 11.1%.

The new concerns generated by the European debt situation are what feed the bankrupt broker MF Global Holdings derivatives, an event that affected financial stocks in particular.

The latter, who had engaged in heavy positions on European sovereign debt, filed for bankruptcy after the breakdown of negotiations to sell assets to Interactive Brokers Group.

MF Global transactions have been suspended. Interactive Brokers has closed up 1.05%.

Values, the S & P Natural Resources lost 4.2%.

Nicolas Sarkozy left Paris Wednesday to Frankfurt where he is involved with the German Chancellor to work meeting for the summit of the euro area expected Sunday. President Nicolas Sarkozy meets with German Chancellor Angela Merkel Tuesday, August 16 at the Elysee Palace (both here in Berlin July 20, 2011)

Nicolas Sarkozy left Paris Wednesday to Frankfurt where he is involved with German Chancellor Angela Merkel at a meeting to advance the conclusion of an agreement on the future of the euro area before the EU summit scheduled for Sunday, announced the Elysee.The President of the European Central Bank (ECB) Jean-Claude Trichet, his successor Mario Draghi, the Presidents Council and the Commission of the European Union (EU), Herman Van Rompuy and José Manuel Barroso, the Executive Director of the IMF Christine Lagarde, the finance ministers and French and German, Baroin and Wolfgang Schäuble, also participate in this "informal meeting" added the source.

All these personalities gathered in Frankfurt for a ceremony in honor of Mr. Trichet, who must leave office at the head of the ECB at the end of October. "No statement is expected at the end of this working meeting," also said the French presidency.At a luncheon at the Elysee Palace with the centrist deputies, the president announced he was ready to move quickly in Germany in order to hasten the conclusion of an agreement in anticipation of EU summits and the euro area scheduled Sunday.

France hopes that the EFSF can be turned into a real bank, such that it can refinance directly with the ECB. The ECB and Germany are opposed to such provisions, which require amendment of the European treaties.Germany stands in contrast the idea of ​​a mechanism to ensure EFSF some of the bonds of troubled countries, to multiply by "leverage" its lending capacity, currently $ 440 billion euros, without the states have to increase their contributions.

First limited to Greece, the debt crisis is now spreading to other countries in the euro area and its banks. Spain has suffered a further reduction of its sovereign rating for the third time in less than two weeks, while Greece was paralyzed by a general strike. At a meeting with Merkel in Berlin on October 9, Sarkozy had promised "sustainable solutions, comprehensive and fast" to resolve the serious crisis in the euro area, in any case before the G20 summit scheduled in Cannes on November 3 and 4.

According to the Minister of Economy, the European Commission proposal to increase the capital adequacy ratio of banks to 9% "can absorb a shock." Budget Minister Baroin regrets the refusal of PS on the constitutional question of the balance of finances

The proposal of the European Commission and its President Jose Manuel Barroso to recapitalize banks is "acceptable", said Friday the French Minister of Finance Baroin. "The position of the Commission Barroso and two days ago is acceptable. A level of 9% of equity" to be achieved by European banks "by the end of the first half of next year, it ' is, "he said on Europe 1 radio.

According to him, "9% in 2012, it can absorb shock." He reiterated that this concerned primarily banks that failed the stress tests at the beginning of summer and those who have passed narrowly.Banks should try to recapitalize "on the basis of their results" by distributing less dividends and less bonus, "warned Baroin, like the European Commission." They should not do so at the expense of economic activity, credit to individuals and business credit, "he said.

"If they can not, they will do in the markets, if markets are not enough they will find partners, and ultimately there will be a limited possibility of a European coordination" for public assistance, the minister added . He again suggested that the European Financial Stability Fund (EFSF) provides that state aid to schools that need it, as its new statutes in force since Thursday so authorize.Germany believes he can do that for banks in countries which already have an international aid program (Greece, Portugal, Ireland).

Baroin But he reiterated that French banks do not find themselves in the position of having to seek government assistance. On Greece, the Minister confirmed the new position of France, which was resolved Thursday to recognize that the creditor banks would have to erase the country a majority of government debt. The discount provided to date to the private creditors of Athens, in the agreement of July 21, is 21%. "For three months the markets have evolved, they have deteriorated (…) We left at 21% July 21, it will be, it is almost certain," he said. "How high? Is being discussed."

He also felt that the figures circulating going "well beyond 50%" were "fanciful"."Three quarters of the Greek debt is held by private (…) We will not cut the whole," he said. "If it requires a private discount that is not tenable, then that will invest in Greece?" Asked Baroin.

He then said that the Heads of State and Government of the euro zone announce their decision on this issue at the summit in Brussels on 23 October, without specifying whether they would disclose the amount of the new haircut or just the principle. { P}

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."