This would take us to the top and not downHe promised to expand its mobile featuresWhile the 'networks' recorded output NET 8Seven years after the arrival of George wIberdrola had everything to entice investorsIt is really a transaction transforms CarlsbergFriday despite the statements made by George wIt is likely that other ads are implementedFocus on cognac in Charente is not uselessPoint of gas gas competition the game remains sluggishOn a background of intense volatility on the stock markets, investors will again be riveted on the Fed this week. When it meets tomorrow and Wednesday, markets bet on a new relaxation of its rates despite the magnitude of his "history" of the week gesture last on 22 January, the Fed decided before its formal meeting, to reduce of 75 basis points interest rates in the Emergency Department, to 3.50, which corresponds to its largest decline since October 1984. It is also his first response out of a meeting scheduled since September 2001, after the attacks.
The United States were then threatened with recession but it is especially the movement of panic on the stock market which appears to have pushed the Fed Chairman, Ben Bernanke, to intervene so fast and so massively on 22 January, before the opening of Wall Street. The day before, while US markets were closed for Martin Luther King Day, European seat collapsed, leaded by fears about the US economy and credit enhancers.
Great nervousness
This mini-krach could be amplified by the débouclages operated by the Société Générale to try to absorb its losses, unveiled Thursday, while the markets began to recover, worn by the hope of the announcement of a plan to rescue the credit enhancers, before lowering again Friday in the wake of the Dow Jones (read page 36), penalized by persistent on the financial system concerns.
In this context of great nervousness, the markets are convinced that the Fed will fly again to the rescue. "Operators consider the likelihood of a reduction of 50 basis points in interest rates the Fed on January 30 and 30 to 70 of a reduction of 25 basis points", succession Natixis. Person put on the fact that it could maintain its rates unchanged. "The market building on a reduction of 50 basis points on 30 January, the Fed will be forced to respond to their expectations to avoid creating a new crisis of confidence." "Ben Bernanke does not take the risk of lower Wall Street, which could weigh on consumption of households and even accentuate the difficulties of the country", said Nathalie Dezeure, at Natixis. Clearly, Ben Bernanke would be prisoner of the expectations of the operators, betting on always more monetary easing, seeing rates from the Fed at around 2 end of 2008. An uncomfortable position in part linked to his "surrender" from January 22 to the fall of the stock markets, said Mickey Levy, in Bank of America. "Ben Bernanke then gave the feeling that it ceded to pressure from the markets." "They now have the impression that they can make him do what they want," analyzes.
However, many strategists and economists, Mickey Levy agree also that, if the Fed will continue to lower rates, it is above all to try to save the economy from recession. The disturbing signals, both on activity, employment have indeed stopped multiply recently while the country is already facing a very serious real estate crisis. The question now is whether if the United States are not already in a recession.
Statistics will be published this week could provide answers to this serious question, whether it is in the fourth quarter GDP figures, Wednesday, the report on employment in January or index Manufacturing ISM, both disclosed Friday. "If the US unemployment rate increases in January for the second month in a row, it could mean the recession is", warns René Defossez, strategist at Natixis.
