US & World News

On Friday a new conditional easing of U.S. monetary policy to a deterioration in economic conditions in the U.S., the Federal Reserve chairman, Ben Bernanke, has tried to appease the "hawks" who favor the Fed the fight against inflation, in order to rally them to his latest position.

This attitude may make it possible to Ben Bernanke to have the support of the Fed in cases of substantial worsening of the U.S. economic slowdown.

"The statistics should convince the most timid members (of the monetary policy committee of the Fed)," said Julia Coronado, senior economist at BNP Paribas.

When the Fed's annual symposium in Jackson Hole, Wyoming, Bernanke has compiled a table Friday gloomy economic outlook and reiterated the tools available to the central bank to stimulate the recovery.

The statements of the successor to Alan Greenspan, however, were more nuanced than those of the central bank on Aug. 10 after its last meeting, which had resulted in new measures to support the economy and credit.

The main decision that day, namely the resumption of redemptions of government bonds in the long term (Treasuries) without further inflate the stock of the central bank, has been widely discussed within the institution.

Some members of the Monetary Policy Committee considered that this decision would give the market the impression that the Fed was closer to a new monetary easing significant than it actually was.

ASSESSING THE RISKS OF A NEW FLEXIBILITY

Leaders of the Federal Reserve also wonder if the recent weakening of the U.S. economy is not just a slump before further acceleration of growth, instead of viewing it as a warning about the ability of growth support job creation.

Purchases of "Treasuries and have sent the wrong signal to the markets, while some criticized the swelling of the institution's balance sheet, increased by more than half since the beginning of the financial crisis in late 2008, to 2,300 billion (1,809 billion euros).

The statements by Ben Bernanke Friday were therefore able to reassure some of the skeptics.

While acknowledging the slowdown in the economy, the Fed chairman said that the conditions for a recovery in growth next year seemed satisfied.

"The president did not prepare the country to a recession" double dip ", stated Dana Saporta, Credit Suisse.

Ben Bernanke also acknowledged that it was difficult to assess the real impact of increased purchases of Treasuries and a lowering of interest rates, already extremely low, which the Fed pays banks for their cash have limited effects.

He also explained that one of the factors on which the Fed will base future decisions would be a further slowdown in inflation, already low, which increases the risks of deflation.

For some economists, the pace of recovery has slowed U.S. and statements from Ben Bernanke augur further action by the Fed in the months ahead.

"The general tone was to 'wait and see', despite showing signs of being not only that economic activity in the United States has returned below its potential growth but also to risk a further slowdown," wrote January Hatzius, an economist at Goldman Sachs in a note.

In outlining the conditions under which the Fed could decide new measures to prevent a relapse into recession, Ben Bernanke has probably facilitated the meeting a consensus around him on the FOMC.

Spanish airline Iberia has reported an operating loss Friday in weaker than expected due to higher demand for passenger transport and air freight to offset the negative impact of the ash cloud of April.

Iberia, which plans to merge with British Airways by the end of the year, said he had lost 72 million euros in the first half, against a consensus at 88 million euros.

"Aside from the expected recovery in air traffic, which has really supported these positive results was the significant improvement in yields," commented Elena Fernandez, an analyst at Ahorro Corporacion Spanish broker.

Yields of Iberia, ie the revenue generated per passenger on each mile flown, grew 7.8% in the first half.

Iberia estimated 20 million losses generated by the interruption of traffic caused by the ash cloud of April.But analysts say the real impact is not necessarily so bad.

"They could also sell tickets more expensive during this period," said Elena Fernandez.

In the second quarter alone, Iberia posted a net profit, ending six consecutive quarters of losses.

British Airways, Air France and Lufthansa said they expect to return to equilibrium at the operational level in 2010.

Title Iberia, which took 35% since the beginning of the year in the hope of a successful merger with BA, was down 0.82%) 2.550 Euros while the Spanish stock market index lost 0 27%.

The turnover of the company grew by 2.8% to 2.23 billion euros in the first six months of the year, supported by a rebound in demand for business class and air cargo, while that net losses were reduced to 21 million euros, the company continues to apply stringent cost controls.

The prediction of analysts polled by Reuters gave a turnover of 2.196 billion euros and a net loss of 41 million.

The irritation expressed Tuesday by the Japanese government to face the rise of the yen was not enough to stem the surge in the yen, which hit new highs against the dollar and euro.

Japanese Prime Minister, Naoto Kan, said he wanted to think about measures to curb the yen's appreciation, taking into account, among other factors, the result of a meeting of central bankers, reported the Jiji Press.

It did not specify which meeting he was referring but central bankers must be found from Thursday to Saturday in Jackson Hole, in the U.S. state of Wyoming.

The Japanese Minister of Finance, Yoshihiko Noda, said his side to the press that Japan would act appropriately to currency movements on the basis of statements of the G7.

Last October, members of the Group of Seven had said currency movements were erratic and excessive negative implications for economic stability and would cooperate as appropriate in this area.

NEGATIVE IMPACT ON THE ECONOMY

The Minister of Finance has used a rhetorical firmer, ensuring close look at the evolution of exchange and believing that recent developments were clearly "unfair".

"The excessive and disorderly developments of the currency could have a negative impact on the stability of the economy and financial system," he said.

The markets have nevertheless interpreted his refusal to comment on a possible intervention as a sign that Japanese authorities are not yet ready to act, pushing the dollar to a new low of 15 years against the yen at 84.34 yen on the platform EBS transaction, and the euro to a nine-year low around 106.14 yen.

"The market will test the ability of the Japanese authorities to intervene, and, unless they take an actual decision, the dollar will move towards the 80 yen.The Japanese economy will suffer greatly, because American and Asian economies slow, "said Paul Robson, currency strategist at RBS Global Banking in London.

Since the beginning of the year, the yen has appreciated by nearly 10% against the dollar, penalized by the rising concerns about the strength of the recovery in the United States.

The Japanese authorities have repeatedly tried to control this increase, fearing that a strong yen would penalize exports and could weaken a fragile economic recovery.

But traders were skeptical about a possible intervention in the markets of Tokyo, and further suggest that coordinated action with partners in the G7 seems highly unlikely.

However, an easing of monetary policy appears to be a possible scenario.

According to sources familiar with the matter, the soaring yen has slightly increased the chance until now very low, before an easing of monetary policy meeting scheduled for September 6 and 7.

But such an inflection remains far from certain because some officials of the Bank of Japan expect to have evidence proving the impact of the stronger dollar on the economy.

"The markets expect an attitude and a more determined response. But they just verbal intervention, and again," said Hiroichi Nishi, general manager of the branch shares in Nikko Cordial Securities.

Orange, the mobile arm of France Telecom, has begun discussions with shareholders Meditel second operator in Morocco, to acquire 40% stake in it, reported Saturday the weekly News.

The French-language magazine said that discussions between Orange and owners Meditel, CDG and FinanceCom, have reached an advanced stage.

He added that the entry of French capital Meditel could cost 650 million euros.

A senior officer Meditel declined any comment.No representative of CDG or FinanceCom was immediately available for comment.

"France Telecom confirms interest in the Moroccan market, but could not say more now," said a Reuters spokesman for France Telecom in Paris.

On the occasion of the presentation of its interim results on Thursday, the operator has reaffirmed willingness to conduct "a policy of selective acquisition primarily aimed at doubling the turnover of the group on three to five years in emerging markets (particularly in Africa and the Middle East).

Meditel, opposite the Moroccan market to the former monopoly Morocco Telecom, Vivendi is a shareholder, and INWIë owned conglomerate ONA, lost last year's two shareholders weight: Spain's Telefonica and Portugal Telecom Portugal .

Their holdings, 32.2% each, were sold to private groups and Moroccan FinanceCom CDG, a public investment holding, to just under 900 million euros.

At the time, and CDG FinanceCom had not excluded the possibility of bringing a new round of shareholder if it would increase the value of Meditel.They also considered an introduction Meditel the Casablanca Stock Exchange.

Emirates Telecommunications (Etisalat), unsuccessful candidate for the resumption of the shares of Telefonica and Portugal Telecom, has expressed interest in the Moroccan market.

JPMorgan Chase reported better than expected results in the second quarter with a decline in provision for credit losses, something that gives hope to investors that things return to normal in the bank.

However, the action declined substantially over 2% as investors aggrieved by his assessment of economic conditions.The KBW bank index was weakening even more, 2.45%.

Moreover, the bulk of quarterly earnings from revenue sources that are not stable, such as reduced bad debt provisions, while in some segments, like the conventional mortgage, there are more and more bad debt, which bodes ill for banks such as Citigroup and Bank of America, which publishes Friday.

Income trading at JPMorgan has declined but it is better than expected, which is perhaps a positive sign for banks such as Goldman Sachs Group and Morgan Stanley, who announce their quarterly results next week.

"The results are just adequate and there is a little less than it seems," said Doug Kass (Seabreeze Partners Management).

The outstanding loans of the bank has continued to decline, showing it is reluctant to risk new loans yet.She says she can not yet assess how the reform of financial regulation will affect its accounts, information, precisely, investors were waiting impatiently.

ONE LESS OPTIMISTIC DG

The CEO Jamie Dimon appeared less optimistic about the future than it was in the first quarter, when he said that the economic recovery of the United States could be solid.

"It is too early to measure the improvement that we observe from now" in the consumer credit, which yields "are unacceptable", he has merely stated Thursday.

"We do not know what will happen to house prices and we believe we are not alone," he later told analysts.

The bank reported a net profit of 4.8 billion dollars (3.7 billion euros) or $ 1.09 per share, against 2.7 billion (28 cents per share) for the corresponding period last year.

Net income for the investment bank fell 6% to $ 1.38 billion. The second quarter was marked by markets that have evolved sawtooth, alternating example falls in the stock exchanges with peaks rising in the bond market.

The income earned by the JPMorgan bond, commodity and currency has dropped 28% to 3.56 billion.The bond trading has been a major driver of earnings of all major banks.

The bank posted a windfall of $ 1.5 billion, or 36 cents per share, due to the reduction in provision for credit during the quarter.Excluding this benefit, the result announced by JPMorgan – 73 cents – more than analysts' consensus that emerged at 67 cents per share, according to Thomson Reuters I / B / E / S.

The bank does not renew every quarter this year discount stores but Jamie Dimon said it was the thing that needed to be done during this quarter.

He said that the bank has a solid liquidity, having repurchased $ 500 million of its shares in the first half, but noted that the bank would be more certain of its capital before increasing its dividend.

Many banks want to raise the dividend but regulators see it a bad eye, which makes more likely redemptions.

The bank said its losses on consumer loans, mortgages, credit cards and other debts had declined in the second quarter both compared to the first three months of the year versus the second quarter 2009.

JPMorgan has finally reported a charge of $ 550 million charge related to the British banking bonuses. She had previously launched a warning on that charge, saying it would be an "important" in the quarter.

Retail sales in the euro area rebounded in May after heavy fall in April, despite the credit crunch which has affected consumer confidence, show statistics released Monday by Eurostat.

Retail sales in the 16 countries adopting the single currency rose 0.2% after a decline of 0.9% the previous month (revised from -1.2%), but show an unexpected increase 0.3% over one year, after -0.5% (revised from -1.5%) recorded in April.

Economists polled by Reuters had forecast an average increase of 0.4% a month to month and a decline of 0.3% over one year.

Eurostat said that sales of food, beverages and tobacco rose 0.2% in May and 0.3% compared to last year.

For non-food products, the increase was 0.4% compared to April and 1.0% over one year.

Action BP lost nearly 7% Wednesday to the London Stock Exchange after falling to its lowest level in 14 years, investors feared that the British oil giant is forced to raise more funds to finance the cost of oil spill that pollutes the Gulf of Mexico.

BP said it had already spent $ 2.35 billion (1.92 billion euros) to contain the spill.

Meanwhile, five-year CDS BP, financial instruments used by investors to hedge against default risk on the group's debt rose 19 basis points to 555 points, according to Markit data.

Some traders also explain the fall in BP by bad weather looming over the Gulf of Mexico that could complicate the fight against oil spills.

At 9.45 am GMT, BP lost 6.55% to 303 pence in London Stock Exchange.

The euro fell below $ 1.20 and the stock markets have plunged into the red on Friday, sealed by disappointing figures for U.S. employment and the fear of contagion from the euro area. Trained in turmoil, oil lost almost $ 3: Towards 1600 GMT Brent North Sea yielded 2.83 dollars to 72.58 dollars a barrel.

In closing, the London Stock Exchange closed down 1.63%, 2.86% Paris, Frankfurt 1.91%, 3.80% Madrid, Milan and Athens 3.79% 5.03 %. And the Dow Jones in New York lost 2.3% to 1630 GMT.

In the U.S., unemployment fell in May to 9.7%, but the net new jobs (431,000) were worse than the 500,000 expected. The markets also remained concerned about the economic slump in Europe, which has pushed the euro to below $ 1.20 for the first time since March 2006.Around 3:35 p.m. GMT, the dollar posted 1.1993.

Even before the publication of these figures, the traders have fled risky investments and sought refuge with values that are safer as the U.S. dollar and Swiss franc."After a few days away from the spotlight, the debt crisis in Europe is back on the front of the stage," noted and David Morrison, an analyst at GFT, citing the risks of contagion from the crisis in Europe outside the euro area to Hungary and Romania.

In Hungary, alarmist statements from officials of the ruling on the country's economic situation has undermined the financial credibility of a State which is to avoid bankruptcy, under infusion of 20 billion euros available by the International Monetary Fund (IMF), the European Union (EU) and European Central Bank (ECB) since autumn 2008.

But it seems that the euro has also suffered from About … Fillon.Asked at a press briefing with his Canadian counterpart Stephen Harper on slide in the single currency, Prime Minister launched it saw "good news in that the parity between the euro and the dollar."

Media outlets have economic Anglophone immediately heard "parity" ("parity" in English) in its narrow sense of perfect equality. They have deduced that the head of government called the equivalence of his wishes: 1 euro equals one dollar. An avalanche of "urgent" then falls among their clients.

As a result, operators of foreign exchange markets feel encouraged to sell the euro.Within minutes, the single currency reached its lowest level in four years, to below $ 1.20.

But the following remarks by François Fillon said that he wanted "parity" in its other sense, the dictionary defines as "exchange rate of one currency against another."

"For years, the President of the Republic, we complain that this parity between the euro and the dollar does not reflect the reality of our economies and hinders exports. I am not worried about the current parity between the euro and the dollar, "he saidFillon.

"There is no doubt that these ideas have been down the euro, even though they occurred" after two little incidents "in the markets, the rise of the Swiss franc against the euro and rumors exposure to a European bank to derivatives, according to David Deddouche, currency strategist at Societe Generale.

Realizing the mistake, Matignon responds quickly: the entourage of the Prime Minister informed the reporters that "by parity, he meant + + level of the euro against the dollar." But the damage is done. "This correction, no one has seen," said David Deddouche.

However, the decline of the euro is really good news: see the video, the comments of Beatrice Mathieu Prediction Center Expansion.