International & World Report

Barack Obama has heard Warren Buffett. One month after the American billionaire's call to raise taxes of the richest in the United States, Barack Obama will propose on Monday during a speech at the White House – expected at 16:30 French time – a special tax on the income of taxpayers earning over a million dollars a year (about 725,000 euros). The U.S. president should not indicate the precise tax rate that it intends to apply or the amount it hoped to achieve by this. But according to The New York Times, the tax on millionaires only for 0.3% of taxpayers, less than 450,000 of the 144 million returns recorded in 2010.

Dubbed the "rule Buffett," this tax is in terms of reducing the budget deficit that the U.S. president must explain to Congress Monday.Its goal? Ensure that the wealthiest taxpayers pay at least as much taxes as middle-class homes. This is not the case, as pointed out by Warren Buffett this summer, because of certain provisions of the Tax Code.

1200 billion dollars in savings to find

Thus, capital income such as dividends or interest earned by the fund managers are taxed at 15%, while labor incomes are between 10 to 35% payday loans. "While the poorer classes and middle classes are fighting for us in Afghanistan, while most Americans struggle to make ends meet month we mega-wealthy continue to benefit from special tax exemptions," wrote Warren Buffett in an article published last month in The New York Times.

This tax should allow Barack Obama to approach a little more of his electoral base of the Democratic Party criticized him his "gifts" to tax the wealthiest people. The Republican majority in the House of Representatives have already announced that he would vote no tax increase.

While the United States must find 1.2 trillion dollars in savings by the end of the year, Barack Obama warned on Saturday the Americans that they would provide "pull their weight" to reduce the budget deficit. And pressed again, the Congress, including Republicans, to adopt his plan for the use of 447 billion dollars. "More games or impasses. More division or delay, "he said during his weekly radio address.

Pierre Mariani, managing director (that is to say the CEO) of the Franco-Belgian bank Dexia, has the gift to tell of the horrors with apparent nonchalance. Speaking to the AJEF Thursday (Association of Economists and financial journalists), he compared the lives of bankers in the current environment in disaster film "2012". No sooner had we escaped an imminent threat that a new arises. Compared to some of his colleagues, Pierre Mariani may have relaxation of the banker who in any case had no respite or almost three years ago, when he was dispatched to Brussels to head a bank just saved from the waters by the Belgian and French, and the Deposit.

Since then, considerable work has been shot: the balance sheet was reduced by EUR 170 billion, the financing needs of a hundred billion.At a time when European banks stumble over the availability of funds in dollars, Dexia is fortunate to have transferred his assets overseas (FSA, and in July, its portfolio of financial assets). At least that problem is not his, and he is also out today – contrary to some market rumors – that the Franco-Belgian bank is not the one who used this summer and again today at the box office dollars of the European Central Bank.

Still, the situation remains extremely tense for Dexia, "we are a sovereign funder – or rather subsouverain with local authorities – a strong presence in Southern Europe. It does not facilitate the life … "Pierre Mariani notes by wielding an understatement.Rating agencies – Moody's downgraded Dexia in July – are closely monitoring the sensitivity of the banking crisis of sovereign debt and refinancing conditions, knowing that the group is still heavily dependent on short-term refinancing.

In this situation, Pierre Mariani has perhaps even more than his colleagues their eye towards politics. "The debt crisis is now deep enough to destabilize the European financial sector," he warned, calling on European leaders to bring order in the governance of the euro area and to implement the Agreement of 21 July. It is however "not certain that the solution lies in a massive recapitalization" of European banks.

In addition, the head of Dexia focuses on the consequences of running the economic growth of the pressure right now on the banks."Everything is in place to organize a massive contraction of credit," he warns. Banks now carve their balance sheets to reduce their financing needs, especially long term, gradually emerging business critical, such as project finance, aircraft financing, loans to local …

ALSO READ:

"Dexia pays dearly spring cleaning of its accounts

While the German Constitutional Court in Karlsruhe Wednesday should make its decision on the validity of the first aid package to Greece, passed in 2010, the German government has increased pressure on Athens.

According to several newspapers across the Rhine, Chancellor Angela Merkel had informed members of his party (CDU) that Greece would not receive payment of the installment scheduled Sept. 15 if it did not meet its targets for reducing deficits. More explicitly, the German finance minister, Wolfgang Schäuble, said before Parliament that if the mission of the Troika, interrupted last week, did not resume quickly and did not end in a positive way, "the next tranche of aid would not be granted. "

Recent electoral defeat

This hardening of the tone is to contain the discontent in the ranks of the CDU since the election defeat on Sunday in the Land of Mecklenburg-Vorpommern. In fact, Angela Merkel only has a narrow majority to vote in the Bundestag on 29 September, the second aid plan in Athens. The Chancellor must give his firm pledges of Parliament to show that it does not dig a bottomless pit.

The pressure put by the Germans to the Greeks also reflects simply the blocking of the situation in Athens, unable to meet its commitments payday loan no faxing. According to Reuters, Greece would have asked to be faster than expected payment of the amounts promised in the second aid plan, which would mean that its finances are deteriorating faster than expected.Unlike France, more and more states are reluctant to vote with the second.

The head of the Slovak Parliament, Richard Sulik said that Slovakia would deal in December on strengthening the European Financial Stability Fund (EFSF). The plan "can not therefore enter into force in February," Sulik said.

All these questions are still weighed heavily on bonds in the euro area on Tuesday. While Italy was forced to further accelerate the passage of the austerity plan is to Madrid came the aftershocks. The leader of the CCOO, one of the main Spanish trade unions, said Prime Minister José Luis Zapatero, would have admitted that the country was "on the edge of the abyss" and would need a bailout. Remarks Tuesday strongly denied by the Spanish government, which illustrate the growing tensions in each country.

Among the statistics expected Monday in Wall Street, the surprise came from consumer spending. The Americans have in fact spent more than expected in July. Up 0.8% on month, consumer spending across the Atlantic more than 0.3 percentage points the level expected by analysts. Because of inflation, which rose 0.4% from June, consumer spending rose 0.5% in real terms. Their progress is the highest since December 2009.

This increase serves as a good sign for U.S. growth in the third quarter. What mood enhancing buyer investors, who already showed optimism prior to publication.At the opening of the session on Monday in New York, the Dow Jones ahead by 0.74% to 11,368 points, the Nasdaq and Standard & Poor's 500 rising 1.36% respectively in 2514 and 1 points, 40% to 1193 points.

The final impact less severe than expected from Hurricane Irene passed over New York yesterday, also contributes to investor optimism. Similarly, after being confused by the speech of Ben Bernanke, the Fed chairman, on Friday, market participants regain hope in a possible intervention by the Fed.

The Dow Jones above 11,000 points

According to analysts at Aurel BGC in fact, the announcement by Ben Bernanke, a two-day meeting in September to study in detail the possible deployment of new monetary tools, reassured. "Either the recovery of economic activity is growing, or the central bank will implement new support measures, they summarize.Under these conditions, the U.S. indices rebounded sharply after Bernanke's speech. "

In fact, dropped below the 11,000 points while the Fed chairman began to speak, the Dow finished at 11 284.5, up 1.2% on Friday night. A final increase, which encouraged European stock markets bounce back on Monday morning, except in London, closed due to holiday.

Another indicator which will be followed on Monday, the promises of home sales for July are expected down 0.1% from a consensus of analysts, against 2.4% rise previously.

The bank should remain in the spotlight

No major publication is expected on the business side.

However, the banking sector will probably still at the heart of analysts' expectations, due to the rebound in the sector in Europe.

"I listened to France Info radio Saturday when I heard the note of the deterioration in the U.S. by Standard and Poor's. Though I have expected, I was very worried. Not for the United States, but I wondered what would happen Monday at the opening of the markets. I spent the day listening to the radio gamberger. It was great for me because all day the journalists spoke only financial, AAA rating, the rating agencies. We rarely talked about as much my passion in the media! Joking aside, I was worried. Sunday, I surfed all the sites info from my iPhone, that's how I learned that the ECB was planning to buy securities in Italy and Spain. I was reassured, but I waited for the opening of markets with anxiety. "

"So it's the end of the world?"

"Monday morning, arrive at work before the markets open.My colleagues and I, we laugh yellow, you wonder "when is the end of the world?". The morning went well thanks to the announcements of the ECB, I breathed a sigh of relief. I expected that the stock market tumbles and climbs, but it rises very little. But when it was revealed that the ECB did not buy that much of Italian and Spanish titles, bang, everything collapsed. There is nothing worse than a disappointed hope. To make matters worse, a spokesman for the German government said that the European emergency (EFSF) should "stay as it is" (the face of calls, including French, to increase its staffing to fight against debt crisis , Ed). In the world of finance, it was a joke: As soon as the stock market decline we say "ah, a German leader has spoken." Well there was quite that.Monday night, the ACC finished the session on a further drop of 4.68%. "

"The worst days of my week is definitely Tuesday and Wednesday. There, I was really afraid, I hung my head payday loans. We were stunned to face the noise of the gravity of the situation of Societe Generale. As the bank had already had to deal with the case Jérome Kerviel (the trader who lost nearly 5 billion euros in the bank in 2008, ie), the rumor might have seemed credible. This story disgusts me. When I think that some have started this rumor to sell shares short and buying 20% ​​less than two days later, it puts me out of me. Because I know that those who suffer, it is the small savers. Tuesday night, the ACC shows a gain of 1.63%. Nevertheless, I am not alone.However, since the 2008 crisis, I learned to better my personal life separate from my work, I do sleep more as I have done in the sub-prime crisis. I slept like a log, exhausted. "

"I'm not going to shoot myself"

"Wednesday, the markets are sealed by rumors of degradation of the note of the French debt. I'm not surprised. My personal analysis is that the deterioration of the U.S. debt will have negative consequences on the note of the French debt. The CAC closed down 5.45%. I try to relax at home in the evening. I will not shoot myself in the foot every time things go wrong. "

"Thursday and Friday, the stock market has regained color. On Thursday, the CAC closed on an increase of 2.89% and 4.02% Friday. I'm not confident either. I do not know how long we're going to balance.I spend Friday night to read newspaper articles, think about how markets will open Monday. I started to install fiber optics to my house, I will continue to tweak this weekend. To be able to surf the web faster to read the financial information. Gamberger for what will happen to the market opening on Monday. "

ALSO READ:

"The Paris Bourse ended the week on a strong increase

"French banks in the spiral of fear

Wall Street has failed to confirm its rebound on Wednesday. At the close, the Dow Jones unscrewed from 4.62% to 10,719.94 points, the Nasdaq 4.09% to 2381.05 loose points and the S & P lost 4.42% to 1120.76 points. As in Europe, signs of nervousness was palpable. The volume of trade has been very substantial and heightened volatility.

Again, the problems of sovereign debt in Europe have focused attention. Greece plans to expand its exchange program to include obligations of the securities in the longer term, which penalizes first private creditors. As the European markets, particularly the banking sector has been attacked in the image of Bank of America (-9.87%), Citigroup (-8.49%), Goldman Sachs (-7.76%), Morgan Stanley (-7.52%), Wells Fargo (-6.17%) and JP Morgan Chase (-6.13%).

In addition, rumors of worsening debt rating by a French rating agency have affected investors. "These rumors are totally unfounded and the three agencies Standard and Poor's, Fitch and Moody's have confirmed that there was no risk of degradation," however, said the entourage of the French finance minister, Baroin.

"At this stage, investors dizzy," says Oliver Pursche, president of Gary Goldberg Financial Services.

Fear of a recession

In addition, operators are even very concerned about the state of the U.S. economy. Yesterday, the world stock markets have overreacted, and positive against all odds, to about the Fed. This has indeed ensured that it would maintain its rates at a historical low, and until mid-2013 to support the economy.Oil stocks have fallen dramatically and unexpectedly last week in the U.S., according to figures released by the U.S. Department of Energy. Crude inventories fell 5.2 million barrels to 349.8 million barrels in the week ended August 5. Analysts polled by Dow Jones Newswires had forecast the contrary, an increase of 1.1 million barrels.

Note that the budget deficit of the United States continued to fall in July for the fourth consecutive month according to figures released Wednesday by the Treasury Department.The action even reached 10.36 dollars during the session, the lowest price ever since the split with Time Warner in 2009.

Facebook on Tuesday launched a new application for mobile phones iPhone (Apple) and those equipped with the Android operating system (Google) to send messages to his "friends" on social networking, but also to other contacts. Called "Messenger", the application can send both text messages (SMS) and email.

Apple (-2.76% to 363.69 dollars) briefly delighted, yesterday, Exxon Mobil (-4.59% to 67.90 dollars), its position as the first market capitalization.

The American and European leaders were under pressure Sunday to try to agree on a concerted response to the debt crisis in the eurozone and the degradation of the note of the United States. Front line, they seek to avoid further financial market plunge Monday, worried about the slowdown in global growth and spread of the debt crisis in the eurozone. Since Friday, so they stepped up contacts.

• Maintenance of imminent G7 finance ministers. Finance ministers of the G7, which includes the U.S., Germany, Japan, France, Canada, Italy and Britain, have stepped up telephone contacts this weekend in order to develop a common strategy to offer.After heavy turbulence in global financial markets, which lost 2,500 billion during the past week, they must reassure investors about the ability and determination of their countries to reduce deficits and public debts. A telephone conference of finance ministers and central bankers to be held Monday, according to Japanese news agency Kyodo. Interviews are tentatively scheduled before the opening of Asian markets (in the night from Sunday to Monday in Europe).

• A G20 focused on the debt. More broadly, the G20, which groups the world's major economies, contacted by telephone Sunday morning to discuss the consequences of the debt crisis on both sides of the Atlantic. Nothing had filtered from the meeting at noon.Only South Korea said that its confidence in the U.S. Treasury had not changed despite the decision of Standard & Poor's. "There will be no change in the policy of foreign exchange reserves of South Korea," said Vice Minister of Finance.

• The ECB will speak Sunday. Among the tracks in the study is a possible intervention by the European Central Bank, which could buy government bonds in Italy and Spain. This intervention is strongly demanded by the markets payday loans. The European Central Bank Thursday reactivated its share repurchase program of sovereign debt in order to calm soaring interest rates in some countries of the euro area, but has so far bought only small amounts of debt and Irish Portuguese, while speculation is focused on Italy and Spain.If the decision to intervene is taken, the ECB and national central banks will begin to redeem the bond markets open Monday. A meeting of governors will be held Sunday to 18 hours.

• Nicolas Sarkozy met with David Cameron on Saturday. The President, who chairs the G7 and G20 met Saturday evening on the phone for thirty minutes of the financial situation with British Prime Minister. The two men "agreed on the importance of working together to monitor the situation closely and keep in touch in the coming days," said a London spokesman for Downing Street, without giving further details. The discussion between the two leaders has focused on his view "the euro area and the lowering of the rating American."

• Barack Obama called on Europeans Friday night.According to the White House, Bush spoke by phone separately with President Sarkozy and German Chancellor Angela Merkel about "the latest developments of the crisis in the euro zone" and noted "the importance of [the] implementation "of measures adopted at the summit of the euro area on July 21. The leaders of the eurozone had concerted Friday after finding that the agreement found to cope with the debt crisis had not convinced the markets. If Italy and Spain are at the heart of the turmoil, other countries are also affected such as Belgium.

ALSO READ:

"" The deterioration U.S. puts enormous pressure on Europe "

"The performance of credit rating agencies

"Who owns the Debts

Baroin the stage. He keeps repeating the last few days: it will require further cuts in the tax loopholes in 2012. For now, the government planned to cut $ 3 billion. "It is very likely that we will go beyond, as part of the Finance Act," warns the Minister of Economy. Otherwise, the objective of reducing the public deficit (4.6% of GDP in 2012, 3% in 2013) will not be met. The IMF says the same thing Wednesday, in the final version of his report on France, he warned that without additional effort, the deficit "would decline more slowly contemplated" and still reach 3.8% two years.

However, Prime Minister François Fillon reiterated last week even as the French would not have to tighten their belts further.If the IMF is seeking new revenue – or additional savings – is that it considers the government's growth projections too optimistic. He did not table more than 1.9% next year (after 2.1% this year), where the government is preparing its 2012 budget on an assumption of 2.25% (after 2%).

The cost of Greece and Libya

But that's not really what worries Bercy. Growth at 2.25%? "The account will be," says without a doubt a top official of the Ministry of Economy.

However, Bercy identified several elements that could degrade the accounts. First, the second bailout of Greece faxless payday advance. While it will not weigh directly on the deficit of France, as François Fillon stressed. The private sector has agreed to cash a loss equivalent to 21% of the value of the loan granted to Athens.The slate for French banks would exceed 2 billion euros. "We will inevitably income tax on companies and less," admits the Ministry of Economy.

Then "there will be a time when we look at the balance of external operations," Do we loose the ministry. In other words, the commitment of the army in Libya and Afghanistan could be very expensive.

Finally, remember that at Bercy Taiwan frigates affair will cost 460 million euros to France. In early June, after ten years of a bitter legal battle, Thales has indeed been ordered to pay more than $ 800 million in Taiwan, for commissions on the sale of frigates in 1991. The State had brought its guarantee in the contract."Public finances must now endure the heavy consequences of the decision in 1991 to pay commissions, unlike the letter of the contract," Matignon had pointed to the announcement of the court decision. This cost was included in the supplementary budget at the beginning of July. It will, however, offset this expense.

ALSO READ:

"The cost of tax loopholes skids

In the fight against deficits, the prize for creativity back to Hungary. It has introduced a "hamburger tax" which, as its name does not indicate, not only will tax the burgers, which are beyond the last minute. In reality, this new collection in September will affect the crackers and sugary soft drinks high in sugar and packaged cakes.

This offensive against junk food is primarily aimed at combating the scourge of obesity, which affects 18% of the population. "Studies in recent years on the eating habits of Hungarians and health effects show that the problems associated with excessive consumption of fat and salt have increased," says Minister of Economy, György Matolcsy no faxing pay day loans.

This tax also has the advantage of the coffers of a state that really needs.Faced with abysmal deficits, the IMF ordered to redress the balance, the government of Viktor Orban multiplies the creation of new taxes, including banks, telecommunications companies, energy and distribution. Never mind, especially since he swears the "hamburger tax" will finance advertising campaigns on food hygiene.

ALSO READ:

"The American campaign against junk food

Asian stock markets follow divergent paths on Wednesday. Markets are generally reassured by U.S. data released Tuesday, less bad than expected on the price front in the production and sales details. But the reluctance dominates.

In Japan, the Nikkei decides to follow the good mood on Wall Street has ended sharply higher on Tuesday. The benchmark index of the Tokyo Stock Exchange gained 0.28% to 9574.32 points at closing. The Topix, wider, took 0.22% to 824.65 points. Again, the action of the electric company Tokyo Electric Power (TEPCO), operator of the nuclear accident in Fukushima, illustrated by a jump of 32.12%, after the government submitted to Parliament Support project to fund compensation for victims. The title had already taken 25% yesterday.

In contrast, Hong Kong and Shanghai are losing ground.The Hang Seng loose 0.39% and the Shanghai Composite was down 0.49%. Investors are troubled by the decision of the People's Bank of China to meet Tuesday to 50 basis points on required reserve ratio of banks, hoping to contain high inflation that poses many economic and social risks. Beijing had announced earlier that consumer prices rose 5 guaranteed personal loan approval.5% in May, an unprecedented growth in nearly three years. The banking sector battered the image of Bank of China (-1.27%) and HSBC Holdings (-1.01%).

The KOSPI Korea following the Chinese markets and decline of 0.17%. Same thing for the Indian Sensex losing 0.31% and the S & P dropped 0.43% Australian. In Australia, the rating is pulled down by the airline industry. Qantas Airways (-1.06%) and Blue Holdings (-3.33%) and are penalized by their decision to cancel domestic flights due to volcanic emissions.

Trend mixed before U.S. crude stocks

The time is also reluctance on the oil markets on Wednesday. In morning trading, a barrel of light sweet crude for July delivery lost 25 cents to 99.12 dollars while that of Brent North Sea crude for delivery rose 49 cents identical to 120.65 dollars.

Investors await the day the report on the status of stocks of petroleum products in the United States. Analysts surveyed by Dow Jones Newswires, crude oil inventories have fallen by 500,000 barrels last week. In contrast, gasoline stocks had risen by 400,000 barrels and distillates (including diesel and heating oil) of 900,000 barrels.