Daily International Headlines

The CAC 40 is a break on Friday. In the middle of the session, the Paris index declined from 0.08% to symbolically 3194.25 points. But following the release of U.S. employment figures for the month of October, the decline was amplified to over 1%.

Papandreou prepared to withdraw his referendum and the new president of the European Central Bank, Mario Draghi, who announced lower interest rates in his first press conference in this position. Is good news that financial markets have welcomed yesterday and continue to welcome Friday. The atmosphere remains febrile. Investors are still suspended to changes in the Greek case.

The Greek government plays its survival tonight in Parliament in a vote of confidence but the fate of Prime Minister George Papandreou seemed sealed after the failure of the referendum proposal.The composite index rose to 46.5 points in October against 49.1 in September, according to a second estimate published today. The index had fallen below 50 points in September for the first time in two years, signaling a decline in activity. In detail, growth slowed in October in Germany, but contracted in France, Spain and Italy. Ireland is the only other country to report an increase in its overall activity in heavily penalized octobre.Alcatel-Lucent

On the corporate side, the ball of publications continues.

After having dropped more than 2% just after the opening, Alstom quickly regained balance and advance 0.78% to 27.71 euros in mid-session.

Mounting amateur, his almost inaudible and characters presented as employees very unconvincing … The video posted by Cora stores on Youtube and Facebook completely misses its mission was to restore the group's image, tarnished by the affair of the cashier accused of theft for taking a receipt abandoned which included a coupon.

This video was supposed to show the brand in a new light. Many people just like to describe in an exaggerated way their "happiness" to work for the group, some 32 years. "Cora is my life," says one of them. "In a year I would go to retire and I would say thank you Cora," said another. Some speak about the controversy surrounding the case of receipt, "it saddens me a bit because it does not reflect what I saw on a daily basis no faxing 1 hour payday loans."

The implied question by the cashier of the case are also there: "I was very surprised that an employee fired for that is done, because Cora must go there to get fired. After I think we may not be aware of everything, there was a particular version, "said a young man shot in front of a coffee machine.

Perverse

On Youtube, Cora says, "This video was shot by the employees themselves" Saturday, October 29 following the controversy over the store Mondelange. " But users do not. Worse, they are unleashed on the Facebook page of the sign: "How dare you take the Internet for idiots?", "What propaganda two cents!", "Your approach is crude, stupid and really pathetic," " against your attack is an incredible mediocrity.

Asian markets see red on Tuesday, like their American and European counterparts. After a brief period of optimism following the European Agreement on the debt control, "the market's attention is focused on implementing the plan, wondering when banks will be recapitalized and if additional funds can be allocated to the European financial stability, "said Kazuhiro Takahashi, broker at Daiwa Securities, quoted by Dow Jones Newswires.

The Tokyo Stock Exchange and ended the session down sharply from 1.70% to 8835.52 points. The broader Topix index has in turn yielded 1.25% to 754.50 points. In Japan, the export sector still suffers from a weak yen against the dollar only after direct intervention from the Japanese government on the foreign exchange market to weaken the outbreak of the currency.On Tuesday, the dollar stood at just above 78 yen and the euro around 108 yen, well below their value on Monday. "We are engaged in a war of nerves" with speculators, said Japanese Finance Minister Jun Azumi at a press conference.

Toyota lost 1.82%, Mitsubishi and Nissan Motor 1.90%. The automotive sector has not benefited from the announcement of an increase of 28 pay day loans.3% of new vehicle sales in October. TDK has, however increased by 3.67%, even after the publication of a net profit, down to $ 56.6 million in the third quarter. Toshiba has gained 1.43% despite announcing a 19% drop in quarterly profits. Other value of the day in Tokyo: Panasonic, which has lost 5.07%.The rating agency Moody's said it may lower the rating of long-term debt of the Japanese electronics giant, because of the poor profitability of its TV and semiconductor and high costs of Restructuring.

Oil down

Moreover, time is also reduced. The Stock Exchange of Hong Kong and Shanghai respectively, losing 1.97% and 0.11%. The Korean Kospi is in equilibrium, an increase of 0.03%, the S & P lost 1.52% Australian and Indian Sensex drops 0.80%. In Sydney, the mining sector was battered in the wake of the raw materials: BHP Billiton lost 2.72% and 2.98% Rio Tinto. Same thing in Hong Kong where Aluminum Corp. 4.38% loose.

Oil prices were down after the announcement of the bankruptcy of U.S. broker MF Global Fund and new fears about the debt crisis in the euro area.

In the wake of Air France, which faces a strike by staff since the start of the weekend, the Australian airline Qantas has decided to discontinue all its domestic flights and the world for an indefinite period. Prey to a social Conlit that has lasted several weeks, management has already warned that 70,000 passengers were affected at the moment, knowing that 600 flights have been canceled. More broadly, its fleet of 108 aircraft will be pinned down in 22 airports, Qantas said in a statement.

All flights of the company are canceled as of Saturday, said Officer. "The devices currently in flight will go to, she adds.However there will be a single new domestic or international flight anywhere in the world. "Qantas said its employees will be denied access to the company as of Monday morning cash advance flexible payments.

Faced with a large section of its employees challenging the group's policy, management of the company has chosen the hard way to break the impasse. Calling itself the decision "incredible", Alan Joyce, Qantas's boss said that "the aircraft will be grounded as long as necessary for the situation to an end," at a press conference convened in a hurry on Saturday. No way for him to accede to the request of trade unions, which he said, "Qantas would destroy the long term."

Retrenchment and redeployment in Asia

What technicians, ground staff and pilots claim, it is mainly wage increases.

In the wake of a meeting of euphoria all financial markets worldwide, the U.S. equity markets should catch their breath on Friday. Yesterday, relieved by the adoption of an anti-crisis plan in the euro area, Wall Street has ended sharply higher, the Dow finishing with a surge of 2.86% to 12,208.55 points. The Nasdaq climbed meanwhile to 3.32% at 2738.63 points and the S & P was up 3.43% to 1284.59 points.

In the wake of European stock exchanges, investors should play the card of caution before knowing the details of the implementation of the anti-crisis plan of the euro area. At 12 hours, the index futures on the Dow Jones retreated slightly from 0.4% to 12,123 points. At the same time, those on the Nasdaq and S & P 500 declined by 0.43% to 2383.50 points and 0 no credit check payday loans.4%, to 1277.50 points.

Keep 12,000 points

Clearly, the objective of the session will be to keep the 12,000 points, recovered yesterday thanks to the announcement of a stronger than expected U.S. growth in the third quarter. "On the month, Dow Jones, which had not changed over the 12,000 points since August 1, now displays the best month ever (no higher than 12% has never been seen in 115 years ), "said elsewhere Chrsitian Parisot at Aurel BGC. The euphoria of yesterday should calm down, to allow time for U.S. investors to catch their breath.

They should also keep a close eye on the latest developments in the management of the debt crisis in Europe, with details expected in the coming days on the plan adopted in the night from Wednesday to Thursday.

After resisting the morning, the Paris index has increased its losses Tuesday mid-day, finishing down 1.43% to 3174.29 points. Parisian investors have expressed a wait-and very excited at the eve of an EU summit in crisis considered major. Sign of a strong wait-and trading volumes did not exceed 2.6 billion euros. Some profit taking after two sessions of strong gains also came influencing the trend. Less marked decline elsewhere in Europe, where the German Dax has limited its losses to 0.14% at 6045 points and the FTSE in London 0.41% to 5525.54 points.

Immersed for weeks in a deep pessimism, investors had played the crisis Friday and Monday. However, the ability of European leaders to respond definitively to the debt crisis is still struggling to convince.A phenomenon that confirm the disagreements between countries in the euro area on the measures to adopt, and just wiping out the gains Monday. If the preparatory meeting of finance ministers of 27 (Ecofin) has been canceled, the leaders of the euro area, however, continue to negotiate before the meeting tomorrow Wednesday of Heads of State and Government (first of 27 and 17 of the the euro area).

At the heart of the discussions: the recapitalization of banks, the amount of the discount of the Greek debt, and strengthening the European bailout fund (EFSF). According to one diplomatic source, the representatives of the banks would like to limit the discount to 40% volunteered to stabilize the Greek debt, against 50 to 60% required by the euro area.Moreover, concerns about the Italian situation is escalated, while Silvio Berlusconi may have trouble getting the promised reforms the last weekend to reduce the debt of his country. The Prime Minister pledged to push trans to 67 years of age retirement.

Diving morale of U.S. households

In this context, mixed economic data revealed the Atlantic have increased pessimism. Stabilization of U.S. house prices in August, according to the Case Shiller index, and the unexpected plunge in the morale of U.S. households in October, have reinforced doubts about the health of the world's largest economy.

By sector, banks are logically the most attacked, BNP Paribas, lost 3.75% to 30.80, Societe Generale fell back to 3.80%, to 19 euros. Axa was down 1.76% to 10.90 euros.François Fillon, French Prime Minister confirmed that the banks of the Hexagon should recapitalize to the tune of "ten billion euros."

In contrast, cyclical stocks including oil services, were well oriented, supported by oil prices that reached a high for about three months. Maurel & Prom has awarded 2.86% to 14.90 euros and CGG Veritas was up 1.21% to 16.73 euros.

Also against the current, and two days before unveiling its sales for the third quarter, the title of Plastic Omnium has continued to rise (3.35%, to 20.76 euros) having already jumped more than 10% two sessions. Finally, on the eve of the announcement of its quarterly revenue, PPR has taken the lead in the CAC 40 with a gain of 3.84% to 111 euros.

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Berlusconi response. In a statement on Monday evening, the Italian Prime Minister was angry: "Nobody has anything to fear from the third European economy and the extraordinary founding of the European Union" which is the Italy. He added: "We honor our debt regularly, we have a primary surplus [excluding debt interest] more virtuous than we and our partners will achieve a balanced budget in 2013."

However, the prime minister called Monday an emergency Cabinet, to provide for new budget cuts. A decision under pressure from its neighbors, France and Germany leading the way. President Sarkozy, supported by Chancellor Merkel, had clearly stated on Sunday: "No way to play the solidarity if those we help are not their own efforts." Lacking only the name of the target country.But everyone understood.

Markets have a cold sweat

"Friendly advice" or insisting express condition of rapid assistance of the European Union (EU) and International Monetary Fund (IMF) in Italy? This second hypothesis has been swept by European leaders, merely to establish a powerful tool for playing a deterrent and prevent contagion of the debt crisis. Nevertheless, doubt has spread on Monday with confirmation from several sources, the European experts 'study' the option of a rescue of the Italian Treasury. Enough to make a cold sweat to markets and European leaders, the Italian economy weighs 2.5 times more than those of Greece, Portugal and Ireland combined, the debt reached 1.9 trillion euros.

However, unless the markets do not hurry the business, there is still no question that Italy is in the near future to help stop the EU and the IMF. Officially, nothing in the pipe. Support Fund for the euro area (EFSF) does in fact not the instrument that experts in the euro area, but shall give it already to be finalized Wednesday between heads of state and government. In addition, Rome has taken any of the three steps which may be imposed for such assistance: assent of the ECB, a general agreement of 16 other shareholders of the Fund (including Germany of course) and a motion for good standing of the part of Rome.

Humiliation

For the Berlusconi government, it would be a humiliation.Leaks on Monday evening seem so at first as an additional political pressure exerted on Silvio Berlusconi, that he arrived late Wednesday in Brussels with a credible plan of action.

The Italian leader has three days to do what he debate with its allies for three months. Berlusconi promised to Brussels to accelerate the pension reform, but is faced with its ally the Northern League. For now, his Cabinet was to consider other measures such as the auctioning of items of public property: barracks, buildings, land, beaches … The product will be used for debt of the state. Other possible measures are more uncertain.Yet another tax amnesty would bring back the money but would be very controversial; liberalization of certain markets, privatization of municipal corporations, reducing the lifestyle of the state, reform of labor law divide unions and parties. The road is very narrow.

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Creditor banks in Greece will have to accept losses "substantial" in the new bailout of the country, warned Saturday that the European Ministers of Finance. Last night, the central bankers of the euro zone had "agreed to say that we had to have a substantial increase in the contribution of banks" in the form of a depreciation of their claims, said the leader of European finance ministers, Jean-Claude Juncker.

• Discount of up to 60% of the Greek debt

According to diplomatic sources, the ministers agreed to effectively negotiate with the banks at a discount of "at least 50%" against a target of 21% decided on July 21 with the banking sector. They thus de facto endorsed the conclusions of an expert report which was presented by the troika of donor funds in Greece (EU, ECB and IMF).The paper believes that a discount of 50 or 60% hope to stabilize Greece without having to increase in the amount of gigantic international loans that have already been promised.

A "discount" is the term used in relation to the financial depreciation of the value of loans taken by creditors in this case private banks and investment funds that hold government debt. A discount of 50% borne by the private sector, the second program of financial support pledged July 21 to Greece, however, should be slightly revised upwards with government loans (Europe and IMF) to 114 billion euros, against 109 billion euros.To maintain the envelope of 109 billion euros unchanged, it would bring the discount to 60%, according to calculations by experts.

• Recapitalization of banks to the tune of 108 billion euros

The question is whether the banks that have so far dragged its feet to give the pot, will accept a negotiated settlement does not pass through a default of Greece. In return for the effort required on the Greek claims, there are plans to recapitalize banks in Europe. Following a meeting of EU finance ministers, this Saturday, in preparation for the summit Sunday, no agreement had been finalized on this point, due to the persistence of disputes.

"We have made some progress on the banks" and "we have laid the groundwork for an agreement" which will still be subject to "discussions between heads of state" and called for European governments to meet in summit Sunday said Swedish Finance Minister Anders Borg. Countries of the European Union are considering a recapitalization of its banks to the tune of 107 or 108 billion euros to help them cope with the crisis, has also said a source familiar with the matter.

But according to European diplomats, "there is no agreement on the recapitalization, it gets stuck a little payday advances." According to one of these diplomatic sources, "Spain insists on having a comprehensive, not only on the recapitalization of banks but also on strengthening the European Financial Stability Fund (EFSF)." On the other hand, "the ministers are trying to agree on the minimum capital."The European Banking Authority (EBA) has proposed that banks reach a level of capital of 9% by mid-2012. A diplomat acknowledged that some countries in the viewfinder of the markets, like Italy, Spain or Portugal, feared that the recapitalization will further undermine public finances.

• The Fund will not support a bank

Moreover, the French proposal to grant a banking license to the Fund support the euro area (EFSF) so he can refinance with the European Central Bank "is no longer on the table," said Minister Dutch Finance Jan Kees de Jager. Only two options are being discussed to increase the firepower of the device, he told reporters Saturday.These two tracks on the agenda now that the mechanism acts as a partial insurance of the public debt of countries in difficulty or higher participation of the IMF to the device, according to a German government source. But there is "significant differences between countries" on the issue, said Jan Kees de Jager.

How to leverage the capacity of the EFSF was the main sticking point between Berlin and Paris at the approach of the EU summit. France, worried about its budget deficit and are "triple AAA" prefer tap into the existing European funds, starting with the ECB. Germany, also sensitive to the separation of powers as inflation risks, refuses anything resembling a crisis by printing money in Europe.France was not only to advocate the involvement of the ECB, arguing that this system worked very well in the United States or Great Britain. She was supported by Spain, Italy or Belgium.

The European Relief Fund currently has a lending capacity of 440 billion euros, part of which is already committed for Ireland and Portugal. This envelope is considered insufficient to prevent contagion of the debt crisis in countries as large as Italy and Spain, increasingly in the firing line of credit rating agencies.European countries negotiate so hard for weeks on the best way, via a "leverage" to multiply by up to five response capacity of the Fund's financial debt of fragile countries.

(With agencies)

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"The euro is a rock against the crisis. "This declaration of Gylfi Arnbjornsson, President of Iceland's largest union, released in turmoil in the euro area, out of place. "While a small floating national currency increases the flexibility and affects employees," he insists. Bryndis, she does not believe more in the EU and the euro area. "It does not work. The crown, however, allowed us to emerge quickly from the crisis, "said the young woman, who works in a bookstore, very committed to the sovereignty of his country. These two strong views illustrate the gap between pro-and anti-Europe.

Iceland began on June 27 last formal negotiations to enter the European Union. At the end, Icelanders will vote in a referendum.The challenge for the small island in the far north that is just three years of severe recession, is to join the single currency.

The debate in Reykjavik is far from settled, including the center-left coalition government, like the Minister of Economy Social Democratic supporter of the euro and its counterpart of Finance defends the virtues of the crown.

"The devaluation of over 40% has boosted the competitiveness of our exports. The gain exceeds the final cost. Unemployment would have been much worse, "says Green Minister Steingrimur Sigfusson. With two key economic sectors: aluminum and fishing account for 80% of exports. In this land swept by the waters and winds so imposing nature, the farm lobby and fishing make their voices heard. They reject the decisions of Brussels and its quotas.Yet, in fact, Iceland is already integrated into the European Union.

The case "Icesave" three years ago that poisons relations with Great Britain and the Netherlands also maintained Euroscepticism. The State has spent 15% of GDP to save its national banks but refused to compensate the foreign customers of the bank Icesave, bankruptcy. An early decision of the European Court of Justice could force Reykjavik to set the slate of 8 billion euros. "The bank Landsbanki has the means to repay by selling its assets revalued since the crisis," said the minister.

Indebtedness

Three years to regain control of the IMF, the economy drastically, radical restructuring of the banks have put the country on track for growth, helped by a crown devalued on line pay day loans.In the field, if the maintenance of a welfare state and the strength of social ties, related to the geography of the place and its small population, have reduced the impact, the crisis is far from over. Reflecting Hildigunnur Sverrisdottir, 35, architect, married with three children. "We are living a nightmare, every month, our debts pile up, we have no visibility and perspective," she confesses.

This family alone synthesizes all the symptoms of the crisis Iceland: Hidlig lost his job after the explosion of the housing bubble, the couple bought a house at full price. They chose a loan in foreign currency – yen, Swiss franc and euro – more attractive as deemed stable and offering lower interest rates. This not to mention local specificity to index mortgages on inflation, which reached its highest, 18%.Result, many Icelanders have seen the value of their loans soar. "In my generation, everyone has lost an average of 10 million crowns," says Hubert Koziet, who suffered a pay cut and an increase of one third of its credit.

Unable to repay their credit, Hidlig and her husband were offered a government program, reserved for owners 13 .500, which is to cap credit 110% of the value of the dwelling and convert crown. "We do not know what to do, we are still negotiating with our bank, we do not rule out leaving the country. Many of our friends, architect, engineer, accountant … went to Denmark and the United States. "

Counter the brain drain and attract new investment, are the future challenges for sustainable growth in Iceland. Because the economy remains crippled by capital controls and political instability.Ironically, today is not money that is lacking in the small island – banks are full of capital that the Icelanders and businesses could exfiltrer abroad – but it suffers from a lack of confidence in the future and the political elites.

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Phone calls at the highest level, video conferencing, round trips of crisis, the climb to the top of the euro appears more frantic Sunday every hour that passes. Nicolas Sarkozy made last night on an emergency trip from Frankfurt to tighten rope with Angela Merkel. But in the final meters, it is the Italy of Silvio Berlusconi could give a cold sweat in the common currency.

Ten days after his trip to Berlin, Nicolas Sarkozy visited on Wednesday in the financial capital of Germany for a further meeting with Angela Merkel. Officially, he came to pay tribute to Jean-Claude Trichet, who drew his bow at the head of the ECB. But in practice, to lock an agreement soon with the Chancellor. After a two-hour meeting nothing has filtered. The two leaders were released separately without comment. They looked tense.They rushed into their cars, to use the plane to Paris and Berlin.

The key issue – the appropriate role or not the European Central Bank in the financing of sovereign debt in support of the EFSF, the bailout funds in the euro area – remains still pending. France is clearly, even amending the Treaties. Germany has always been against the name of financial orthodoxy and independence considered sacrosanct by the ECB.

The question plagues the Paris-Berlin for months. At one hundred hours of a summit that everyone wants to believe decisive, it is especially doubt the strength of the Franco-German base on which the 17 partners of the euro and the 27 EU countries have establish a bulwark Sunday against the crisis and contagion."Monday morning he will have the markets, the United States, China and the IMF are convinced that Europe has a plan, a European official placed loose in the heart of the discussion. If there is no agreement, each European country will be reduced to playing individual survival. "

A "Mr Euro"

As a result, dramatically raised the bar for Sunday. Until recent days, Europeans thought solve problems in sequence: first Greece, then the recapitalization of banks with the strengthening of EFSF and economic governance coupled with greater budgetary discipline and finally the start of construction new treaties to push European integration. In an emergency, they say in Brussels, the Heads of State and Government will instead have to treat the whole as a whole.

Essential parts are already in place.Athens will release in the coming days with an 8 billion euro. She will spend the deadlines in November and avoid bankruptcy catastrophic for the euro. Unless dramatic, France and Germany also agreed on the recapitalization of banks. Governance side, it seems certain that the European Council President Herman Van Rompuy become "Mr. Euro ". The terms of the collective fiscal discipline and above the level of checks carried out by teams in each capital Brussels are still under debate. The case directly related to the revision of treaties, also raises serious questions of national sovereignty.

But against the backdrop of persistent differences between France and Germany regarding the bailout fund and the role of the ECB, it remains to organize the famous "against fire" in the euro area, ie to prevent the spread of the fire."It's reassuring to calm the Greek home. But that does not answer the real question posed by the market: what happens if other countries are in turn earned by the flames? ", Said the European official.

After degradation of Spain by Moody's and uncertainty on France by Standard & Poor's is Italy, the third power of the euro might come to haunt the summit. "Nobody talks about it openly, but everyone has the scenario of an Italian debacle in mind," said one senior source. After public criticism that its inertia creates the Italian employers, Silvio Berlusconi could be claimed Sunday accountable by their peers, they say in Brussels.

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