Paris entries are unworthy of the capitalThe first objective is to reduce unemploymentThere was no one change of Agency in a yearAnother point of tension the swine sectorAlways be right is a great wrong said Edgar FaureThe laboratory may also test other types of membraneOf course it is more completely the sameMoreover the market opens to public authoritiesDesigned by Thierry de Baschmakoff designerIn September 2007 he announced a grand debate on this topic see belowThe new US Treasury Secretary, this time successfully review of passage. Echaudé by the disastrous reception that the market was reserved for its ads in February, Timothy Geithner yesterday unveiled its plan to rid the U.S. financial institutions of their toxic assets. With a broad public support, investors will be able to buy these assets through an auction system. The device could ultimately represent 1,000 billion. "It allows restore a market concerned assets price and clean balance sheets to allow banks to lend more," said Rob Carnell, at ING, who judge the plan flawed but likely to be improved over time. Much more skeptical, Credit Switzerland team believes that additional injections of capital, of the order of $ 730 billion, would be more useful to the banks. The Swiss Bank also maintains its negative opinion on global banking values.
Yesterday, the stock markets but well responded. A Wall Street, the Dow Jones practical 6.84, to 7.775,86 points, S & P 500 of 7.08, to 822,92 points and the Nasdaq by 6,76, to 1.555,77 points at the close. The financial sector was particularly wanted: Bank of America was soaring 26,01, 19.47 Citigroup, JPMorgan Chase of 24,67 and Morgan Stanley 20.70. For its part, the European sectoral index DJ Stoxx 600 appreciated 5.15 to 177,73 points.
The Geithner plan comes just after the strong action of the Federal Reserve, which announced Wednesday it would buy loans of State of 2 years to 10 years on the market. This new proof of the activism of the monetary authorities was welcomed by the markets, which have signed a second week of increase in a row. Yesterday, a real estate sales better than expected in the United States also contributed to the general optimism.
Influx of paper
The question now is whether the conditions for a sustainable stock rebound are met. "Today, a large part of the bad news about the profits of companies is integrated in the valuations", explained Roman Boscher in Groupama AM. Prices reflect a further degradation of the results of order of 30 in 2009. "But, in the absence of buyers and long term in the multiplication of capital increases, which generate a flood of paper, the indices can still touch new low points." The Manager does not exclude a level of 2,000 points for the CAC 40 and 550 for the & S P 500 before a recovery late 2009.
The fate of financial markets also depends on the initiatives by the public authorities outside the United States. The Chinese stimulus plan brings such a little hope. Eyes are now turning on the euro area and the European Central Bank (ECB) in particular, that displays a still high interest rates. Axel Weber, Member of the institution, indicated that the rent money could be lowered. "But Jean-Claude Trichet suggested that the next non-conventional measures would remain focused on the banking sector rather than on the purchase of State bonds," said Barclays Capital. Speculation increases on this issue. If the ECB does resolve, the consequences on the market could be serious.
