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Their analysis was different just a year agoGermany an Organic Valley is building near DresdenIt should also move forward on two pointsThe unsuccessful will be many including in the ranks of the French banksThus despite the urgent appeals of George wIt is time to put an end to schizophreniaMarket bruisse rumours of capital increase nowValues of crisisYou need to know live with its timeI am still convinced that a market existsConsumers love the kiwi they love the strawberryUS markets resumed hope last night at the end of session. The Dow Jones index jumped more than 400 points ( 3.86) to finish above the 11,000 points, the highest increase since 2003. This sudden rebound is explained by the feeling that have acquired the markets that the authorities will take exceptional measures. Television CNBC reported that the US State would be to create a massive hiving-off Fund to take over the vectors "toxic" assets of the crisis. This initiative builds on cantonment implementation structure to save the US savings at the end of the 1980s. The Secretary of the Treasury, Henry Paulson, have already taken contact with Congress. Such a structure, even if it could be very costly to taxpayers, appears today as one of the only ways to deal with the crisis (see page 7). At the same time, the Anglo-Saxon financial authorities launched an attack against the short sellers, investors betting on the decline in the shares. The Minister of Justice of the New York State, Andrew Cuomo, announced that it was investigating this type of transactions suspected to have played a major role in the fall of the course of Lehman Brothers, Goldman Sachs and Morgan Stanley. London, the FSA, the Constable of financial services, has simply decided to prohibit short selling on the shares of financial companies until 16 January. Signs may also be that the actors of the American finance, who loses his jewels in a past few weeks, rallies, the Pension Fund California CalPers, the largest in the United States, has decided to no longer lend securities Goldman Sachs and Morgan Stanley to short sellers. The titles of the two banks have rebounded well.
The day had yet poorly begun. Despite the arsenal deployed by major central banks, US Federal Reserve in mind, the situation remained very tense in the financial markets until early evening. The initial relief by the concerted intervention of the great paymaster was succeeded a session has become more volatile and more discussed in the afternoon. European places, who had wagered throughout the day on a resumption of the US stock, are almost all needs in negative territory. In Paris, the CAC 40 index has thus completed down 1.06, pushing the crossing the psychological bar of 4,000 points for the first time since the month of May 2005.
Obviously, the exceptional measures taken by the major central banks to restore liquidity to the financial system were not entirely satisfied (read below)
Repatriation of capital
The decision of the Treasury to issue additional debt in the short term $ 100 billion after the advertised 40 billion the previous day to give additional to the Federal Reserve was also found as a worrying sign, reflecting the depth of the crisis, further yesterday underlined the difficulties of an another Wall Street star, Morgan Stanley Bankto find a buyer.
In this context, improving surprise activity in the industrial sector in the region of Philadelphia in September with one index positive for the first time in 10 months fell a little flat. Risk aversion remains high among operators disabled by the storm that rocked the world places.
Dollar resists
This situation prevents the dollar transplant of the nose. If the greenback slipped to 1,4542 against the euro yesterday, he then returned around 1.44 in early evening. The crisis of confidence generates massive capital repatriation to the United States, to the detriment of emerging markets, which has the effect of supporting the dollar.
Before rumours of intervention by Washington, many operators thought that the Fed could not be limited to even massive injections of liquidity to extinguish the fire, but it also forced to use the weapon of the rate. "It is very possible that the Fed is a gesture of relaxation in pro chains weeks before the meeting of October 29," recognizes Véronique rich-Flores, an economist at Société Générale. "It is also conceivable that the European Central Bank to keep way." For it, the maintenance of the rate of the ECB is equivalent to tighter, in view of the deterioration of the economic situation in the euro area. "Its margin of manoeuvre to loosen monetary policy becomes therefore very important: a decrease of 100 basis points of the rent of money in 2009 in Europe is possible." For some people go even further by referring to the possibility of a cut in rates between the major central banks.
