US & World News

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.

Audi, the premium brand of the Volkswagen group, plans to exceed this year's Mercedes-Benz, the luxury brand of the Daimler group, reaching 1.3 million sales, said Tuesday the chief executive of Audi.

"We will exceed Mercedes this year and move from place to number three to the number two," said Rupert Stadler to the press on the sidelines of the Frankfurt Motor Show.

Audi is also optimistic about the prospects for the sector as a whole.

"There are two warning signs. Sales to fleets of vehicles and sales of used cars. Neither reports of headwinds," said commercial director Peter Schwarzenbauer.

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%.

Germany and France are convinced, the Tobin tax should be adopted in Europe. Yet critics are numerous, and markets are particularly skeptical.

This time is the right one? For years now that the tax on financial transactions is discussed in Europe, the leaders of the euro area has never been convincing. Tuesday night, Nicolas Sarkozy and Angela Merkel said they would suggest that the European Union in September of a tax on financial transactions, "an obvious need" according to the German Chancellor. The two leaders did not specify the terms of this measure, but the French Minister of Economy, Baroin, and his German counterpart, Wolfgang Schäuble, confirmed to be working earnestly on the subject.The tax is "the subject of extensive work with the German Ministry of Finance," according to Bercy.

Many critics and fuzzy terms

For several months now that the European Commission relaunched the idea of ​​a European tax on financial transactions, which, if it was fixed between 0.01% and 0.001% of the transaction, would yield between 30 and 50 billion euros per year. MEPs had then voted by a large majority (529 for, 127 against). A tax as proposed by the Commission could fund the EU budget to alleviate the contributions of member states.

But this tax, partly designed to limit speculation, is not without its critics. Too easily circumvented, too complicated to implement, too risky …since its development in the late 70's by the economist James Tobin tax on financial transactions is routinely ostracized, especially by its critics assert the impossibility of setting up a different scale than the global . In fact, if the tax does not apply to all financial markets, it may benefit those who do not have adopted and which will recover, de facto, the flow of transactions. A warning given recently by the ECB President, Jean-Claude Trichet, who said that "a tax imposed in Europe and not elsewhere would result in a significant loss of activity for Europe."

London reservations

But this time, Brussels is certain, the project is expected to reduce the risk of outsourcing transactions with a plate large enough to avoid trade-offs between financial products.Arguments that clearly did not echo long-awaited in the British, the most resistant to the device. "The government will continue to conduct discussions with international partners (…) but otherwise the relevant transactions will simply move to countries that do not apply," he said including a spokesman for the UK Treasury Wednesday. But without the agreement of the United Kingdom, impossible to adopt the draft. Even the Berlin admits the tax on financial transactions should apply to the 27 EU members, assured the spokesman for the German government. According to the Irish Minister for Finance, the tax would ultimately very unlikely to achieve unanimity among member states."There will be many objections from countries with strong financial services sector, such as Luxembourg, the Netherlands, and even Paris," he argued.

Markets do not believe that half

Little appreciated in the early morning by the financial markets, this proposal was eventually discredited quickly by banks and stock traders who were quick to report their skepticism about the project. The association of German cooperative banks BVR, quoted by Reuters, said for example that the tax would fail to restore stability in the markets if it concerned only the euro area. "In the end, the financial sector has not suffered the ad simply because nobody believes," concludes one analyst Saxo Bank.

The trade deficit the U.S. has grown against all odds in June to its highest level since October 2008, due to a decline in exports and imports indicate a slowdown in global demand, according to figures released Thursday by Commerce.

The trade balance posted a deficit of 53.07 billion dollars, while the market expected it to be reduced to 48 billion.

In May, the deficit had risen to 50.83 billion (50.23 billion in the first estimate).

Exports fell 2.3% against -0.5% in May, faster than imports (-0.8% after +2.9% in May).

The rumor of a deterioration in the rating of France has prompted a new collapse of the entire stock market. "This is completely untrue," says the entourage of Baroin. View of the Ministry of Economy and Finance at Bercy.

Bercy has "formally" denied rumors Wednesday of degradation of the French debt rating by a rating agency that led to a new collapse of the entire stock market. "These rumors are totally unfounded and the three agencies Standard and Poor's, Fitch and Moody's have confirmed that there was no risk of degradation," it was stated in the entourage of the Minister of Finance Baroin.

Rating agencies Moody's Investors Service Inc.., Standard and Poor's Corp.. Fitch Ratings and have in fact all three confirmed Wednesday the sovereign debt rating of triple A with a stable outlook they attribute to France.Fitch confirmed the note on May 31 and S & P, December 23. Moody's does not usually confirms his notes.

"It's totally false", it was stressed the same source, when asked about the rumors, which also claimed that this is why French President Nicolas Sarkozy interrupted his holiday to hold a crisis meeting at the Elysee Palace . After the meeting, the Head of State said that new measures to reduce the deficit will be announced on August 24.

European shares are down sharply divided Wednesday, two hours before the close, led by falling bank stocks as a result of new concerns fueled also by the situation in Greece and the decline of Wall Street opening. The New York Stock Exchange opened sharply down Wednesday also unable to continue the strong rebound yesterday.In Paris the CAC-40 plunged almost 5% hit by bank stocks.

The Paris Bourse falling off again in early trade Thursday, the rating agencies have struck again sovereign debt, and this time, on both sides of the Atlantic.

Around 9:15, the CAC 40 index lost 0.79% to 3763.27 points at the start of the day a national holiday in France that could be very active, stakeholders who have opted for a long weekend.

Moody's warned late Wednesday it may lower the rating of "Aaa" – the best – the United States if President Obama and the Republican opposition failed to agree on raising the federal debt ceiling to time wanted to avoid a default.Discussions between the President and the Republican leaders have been strained Wednesday, and do not seem on the verge of success.

Fitch, for its part, S & P as a month ago, degraded to "CCC" the note of Greece.

The banking and technology are among the largest declines the CAC 40, while Lafarge, which has entered the active phase of sale of its gypsum in Europe and South America, is the only value of the CAC 40 in green (1.69%).

Alcatel-Lucent (-2.44%) and Capgemini (-2.0%) recorded the largest declines in the index.

Company lost 0.75%, 0.49% Credit Agricole and BNP Paribas 0.2% after opening down more than 1.5%.

London was down 0.58% from 0.32% and Frankfurt.

Peabody Energy has teamed up with ArcelorMittal to submit an offer of $ 5 billion on the Australian Macarthur Coal, the world leader of pulverized coal.

A 15.50 Australian dollars per share, the offer exceeds 40% of the closing price on Monday (11.08 Australian dollars).

ArcelorMittal and Peabody confirmed Monday mid-day for submitting a joint bid to the board of Macarthur.

The coal market is currently very healthy, especially because of the increasing demand for raw steel.

Macarthur has been the subject of a takeover battle between candidates in 2010 and had then agreed to enter into discussions with Peabody that had made the best offer at 16 Australian dollars per share.

The talks had ended when Peabody had lowered its offer, due to the government's decision to impose stronger Australian industries of coal and iron ore.

For its part, ArcelorMittal is already the second largest shareholder of Macarthur, with a 16.2% stake.

The largest shareholder, Citic Resources said it would consider joint bid ArcelorMittal-Peabody, which is subject to the approval of regulatory authorities and the meeting of 50.01% stake in Macarthur.

"The board makes no recommendation on the proposal, but will seek to discuss with ArcelorMittal Peabody and the issues of prices and conditions," Macarthur said in a statement.

Household consumption of goods decreased by 0.8% in May, its third consecutive month of decline, after a revised 1.4% decline in April, show statistics released Thursday by INSEE.

Eighteen economists surveyed by Reuters on average expected a 0.9% increase in consumption after the 1.8% decline initially announced in April.Their estimates ranged from -1.0% to 1.6%.

Spending on durable goods, which dropped by 6.4% in April, fell 0.6% more last month, due to a less pronounced decline in purchases of motor vehicles (-1.8% after – 10.3%).

Purchases of textiles and leather, they have decreased by 4.4% in May after rising 1.6% in April.

Consumer spending in other manufactured goods were down 1.3% in May after rising 0.3% in April.

As for food purchases, they stand down 1.7% from 1.4% the previous month.

At the same time the energy consumption rebounded in May (3.4% after -3.4%)."After a particularly mild weather in April, limited heating costs, household consumption and found a normal level in May," INSEE said in a statement.

Of France raised its forecast for public debt for the years 2011 to 2014 and confirms that the debt ratio will decline in 2013 and beyond, in a report released Tuesday by the Budget Ministry.

This report pre-policy debate of public finances, the Government confirms its path to reduce the public deficit to 5.7% of GDP end of 2011, 4.6% at end 2012, 3.0% in late 2013 and 2 , 0% in late 2014.

In 2010, the deficit stood at 7.1% after the revision of GDP on a level place in May 2005 by INSEE.

The government plans 30,401 job cuts in the public next year, including 14,000 in Education and about 7,500 in the defense, the continuation of the non-replacement of retiring in two.

"In 2012, the number of civil servants should return to its 1990 levels, or 150,000 less over the term of five years (2007-2012), equivalent to a reduction of 7% of the Public Service the state, "reads the document.

Government debt was 85.4% of GDP end of 2011, 86.9% at end 2012, 86.4% and 84.8% end 2013 end 2014.

The Government previously provided a ratio of 84.6% at end 2011, 86.0% in 2012, 85.6% in 2013 and 84.1% in 2014.

The Government confirms second predict economic growth of 2.0% this year and 2.25% in 2012.

It expects a 2.4% increase in household consumption in 2012 after 1.7% in 2011, a non-financial business investment up 6.7% after 4.7%, exports up 6 , 0% after 7.6% and imports up 5.9% from 7.5% in 2011.

Inflation eases slightly to 1.75% in 2012 from 1.8% this year.