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To go abroad students demand more safetyCapitalism is a whole indivisible system What is the need for an innovative company5 billion to a net profit of approximately 3The debate on the 2007 of the IledeFrance 3The cloth burning between the Government and the motorwaysIt must be understood something importantDifficult then to understand what that isWithout however really penalize the sectorIts real estate assets is estimated at EUR 13Markets breathe. Massive interventions decided last weekend by European and American Governments offered a real breath of oxygen. Because the responses to the financial crisis are now coordinated, operators are hoping that the systemic risk that threatened to bring the whole of the banking sector may finally be avoided. The initiatives by the public authorities therefore helped to stem the wave of pessimism that such a tsunami, had swept the stock markets over the past three weeks. After the calamitous sessions of last week, a movement of hunting to good business is is organized yesterday markets revenue shares, in the opinion of many professionals, at very attractive levels.
The rebound of the stock, already spectacular early in the morning, it is largely confirmed after the opening of Wall Street. Increased by 0.13 only in the first ratings, Dow Jones largely had to amplify his advance later to win 11.08 at the end, to 9.387,61 points. Suddenly, European places still accelerated the pace. In Paris, the CAC 40 has closed on a progression of 11.18, the largest increase in 20 years, largely ironing over 3,500 points.
Avoid complacency
"The main message of this weekend is that the Governments of the world appear to have taken the measure of the seriousness of the financial crisis and that they intend to take extreme measures," welcomes Patrick O'Hare of Briefing. "Governments realize now that the guarantee of interbank rates is crucial to improve the financial conditions of the market." "This decision target the heart of the problem of the credit crisis and should have greater impact than rate reductions" outbid BNP Paribas analysts.
For reassuring, the rally occurred yesterday should not pass the more black pessimism to a pollyanna markets. The essential return of confidence is not yet acquired, although now, the conditions seem to be met. If signs of relaxation are already detectable on the currency market, the cost of refinancing for banks remains very high (read below). Financial institutions were still severely attacked yesterday on the stock exchange on persistent rumours of difficulties, the image of the Société Générale which took all the sentences in the world to deny them. One drop of the CAC 40, the value however limited its decline at the end of session 2 (see page 3).
Most importantly, the consequences of the crisis on the real economy are still difficult to apprehend. But there is no doubt today that they will be large and deep, both for households for businesses. For the time being, the season of publication of the results of the companies for the third quarter has just start on Wall Street. 56 values of the S & P 500 should publish their figures in the coming days. On the 32 that have already done last week, half exceeded analysts expectations. But 34 unveiled figures lower than estimates. So Thomson Reuters now expects a decline in average profits of the & S P 500 of 7.4 in the third quarter. In six months, the adjustment is spectacular because analysts projected April 1 on growth of 17.3. Since then, the crisis of the banking system is, it is true, passed by with its myriad of impairment of assets...
Less risky investments
In these circumstances, equity markets, if they can logically rebounding after having been severely punished in recent weeks, will find it difficult to extricate a lasting sluggish trend. Because in difficult times, investors tend to focus on less risky investments, which should enjoy sovereign obligations and the foreign exchange market.
