Go take a small black without white smokeAn investment that sponsors want to make profitable at bestAs this nomadic life help to feed its styleIn 2006 this percentage deflects slightly 21The distinction is subtle but fundamentalElementary but applying for municipal councillors6 billion euros and France 307 million i50 which corresponds to its largest decline since October 1984This would take us to the top and not downHe promised to expand its mobile featuresNervousness mounted on the markets. The statements by the President of the Fed, Ben Bernanke, yesterday, were concerned. Wall Street sharply tipped in red in the afternoon, while he was speaking before the Committee on the Budget of the House of representatives. It must be said that Ben Bernanke appears to fear increasing the risk of a recession in the United States.
Noting the difficulties of the US economy, he argued for the rapid implementation of a recovery plan. "I agree that fiscal action could be useful on the principle", he said, that President Bush should introduce support measures to the economy on 28 January, especially in the form of tax cuts. "Monetary and fiscal stimulus could provide broader support for the economy as only decreases in rates", he said. But, to be effective against the danger of a recession, fiscal stimulus plan should be "put in place rapidly", so that its effects to be felt "in the coming twelve months", and should be temporary. For its part, the Fed Chairman reiterated that he stood ready to take "of important additional actions", again lowering interest rates.
Worried of a possible slowdown of consumption and the labour market, it was also noted that the situation of the financial system remained fragile. According to him, recorded losses, including banks, financial products related to the "sub-prime" could be up to $ 500 billion. These comments were further weighed on the markets, they intervened after the announcement of losses well over that expected from Merrill Lynch and the diving brutal index measuring industrial activity in the region of Philadelphia, 20.9 in January, is its lowest level since October 2001.
US recession scenario
"The fall of this index confirmed operators expect to the scenario of a recession in the United States," said Cyril Regnat, strategist at Natixis. The alarming statistics move since the beginning of the year, both on the front of the activity on the job. And the crisis of the banking system seems to be if worse, on a background of intensification of the US real estate crisis, reflected in declining, announced yesterday, 14.2 of the starts of dwellings in December, 1.006 million.
More and more American households lacking "sub-prime" loans Which resulted in a collapse of the financial products-backed loans "sub-prime" developed by banking institutions.
Result after Tuesday, the Merrill Lynch Merchant Bank Citigroup announced a loss of 9.83 billion fourth-quarter, or more than twice that expected, as a result of impairment of assets related to the "sub-prime" CDOS (ABS), which have reached 11.5 billion during this period. A new led to a plunge of Merrill Lynch, who lost 10.07 to the New York Stock Exchange yesterday. "The lack of visibility on the banking system seal markets." "The total uncertainty prevails on the global invoice that will have to pay fine in banks to deal with the"sub-prime"crisis", said Christian Parisot, analyst at Aurel. Considers however that fears of recession will perhaps help to avoid it, pushing the Fed and the U.S. Government to intervene to save the economy.
In this dark context, operators are strongly in their expectations of massive declines in interest rates of the Federal Reserve. They expect a reduction of 50 basis points of its rates at its next meeting, on 30 January. And they see them fall to 2.5 end 2008. The climate of concern benefits obligations. Yesterday, the performance of the loan of American State for two years he is still relaxed, to fall to a low of 2,392.
