Admittedly at first it is a little surprisedOn the week the Paris Stock Exchange has lost 5It seems difficult loose close to Nicolas Sarkozy3 on the previous quarter and 100 in 2004The 15 tax rate is however in this case reduced to 16Orange put 200 millionIn the meantime intoxication isThe deficit could even between two competitorsSão Paulo a building by day sort of EarthIn fact the right threatens to Aubagne read belowThis is the case in particular of transportIt is with a certain anxiety that stakeholders have awaited the outcome of the US Treasury Auctions last week. They feared a lack of appetite. They do are not mistaken while 4,449 rate available for a 30-year loan, placed Thursday, broke all records of weakness. Yet, as early as Friday, operators were returning on the bond. The U.S. rate in 2 years, evolving in contrast to its price, relaxed by 10 basis points on the eve of the weekend, with 14 points the land acquired on the week, at 1,922. The 10 and 30 years are are respectively relaxed 11 and 10 basis Friday, to 3,643 and 4,417 points.
Fears haunt financial markets for long weeks are not addressed to. On the contrary. The crisis of credit enhancers is gaining in intensity. The last days have seen yet put under surveillance or degradation of these players in the credit market. For the Standard & Poor's Agency, a new degradation of the boosters could result in the lowering of the notes of banks, another sector of the rating rocked on merits of the "sub-prime" crisis And the change of methodology announced Tuesday by Fitch for the marking of ("collateralized debt obligations") CDOS backed in debt of companies created emotion should cause degradation.
Speech by Ben Bernanke Thursday
At the time, the credit market is prey to strong tensions. The iTraxx Crossover 50 index, which measures the cost of the coverage of the bonds the less well in Europe, renewed his record Friday at 530 points. He had crossed the 500 points Tuesday. Any increase in means that the perception of the credit quality of issuers had deteriorated. U.S. index CDX for issuers classified in category investment, therefore of very low default risk, is now at 129.5 points, its highest level since this reference has been created, in 2004, while the European iTraxx reached a new peak, at 97,75 points.
Finally, the horizon of the US economy is escape. The fall of the index ISM services under 50 points a threshold that delimits an activity in contraction of activity growth weighed heavily on the trend on Wall Street at the beginning of last week. A climate conducive to State bonds. The opinion of the central bankers reassure not. The President of the European Central Bank, Jean-Claude Trichet, until this concentrate on inflation, has changed, Thursday, the tone of his speech focusing more on growth risk.
Can the recession be avoided across the Atlantic Janet Yellen, President of the Federal Reserve of San Francisco, is "not confident" with regard to this major issue. "Current indicators continue to point to a sluggish growth, at least for the first half of this year, as the risk on these low estimates downward," she said Thursday night. With 'unusually uncertain' prospects, the US Central Bank must therefore stand "ready to act at any time".
After the relaxation of 125 basis points agreed emergency in January, stakeholders expect the Federal Reserve Act again on 18 March. They give a 70 probability to further decline by 50 basis points of the objective of federal funds, to 2.50. There is no doubt that Ben Bernanke speech, Thursday, before the banking commission of the Senate will be followed carefully.
