Financial, Business, Personal Finance News

The Tokyo Stock Exchange closing down tensions with Egypt

The Tokyo Stock Exchange ended down 1.18% Monday after meeting touched a low of two months, concerns about the situation in Egypt is prompting investors to shift to less risky assets.

The Nikkei lost 122.42 points to 10,237.92 points and the Topix broader yielded 9.61 points (1.04%) to 910.08 points.

The disappointing results from Fujitsu and Konica Minolta have also pulled the Nikkei down, while yen, which was operating near a four-week high against the dollar, weighed on exporters.

Values related to oil, as Inpex, have nevertheless benefited from the rise in gold price black markets fearing a spread of Egyptian tensions with other countries in the Arab world.

The Nikkei has gained nearly 11% since early November, boosted by a move to purchase foreign investors, but observers believe that this rally may be coming to an end and give rise to a correction.

Japan: deflation and unemployment down

The unemployment rate fell below 5%, while lower prices are continuing but at a slower pace than before. A businessman crosses a street behind a Japanese flag in Tokyo's Ginza shopping district December 26, 2008. Japan's seasonally Adjusted Unemployment Rate rose to 3.9 percent in November from 7.3 percent in October, Government data showed on Friday, below a median market forcast of 4.0 percent. (JAPAN)

The Japanese economy shows some signs of improvement, with an unemployment rate fell in December below the symbolic 5% for the first time since February, but the sluggish domestic activity and deflation persists.

In late December, Japan posted an unemployment rate of 4.9% against 5.1% in November, announced Friday the Ministry of Internal Affairs.Japan then there were 2.98 million unemployed, up 6% from a year earlier, for a working population rose slightly from 0.1% to 62.28 million people. The labor market remained relatively tight, however, with 57 job offers for 100 applications, an average that masks strong differences across sectors of activity. Unemployment in Japan hit a record 5.7% in July 2009 as the global economic crisis that had led companies to lay off thousands, including employees under precarious.

Citizens' fears for their jobs and incomes remain evident. They show careful when on the expenditure side, prompting companies to attempt to attract them by lower prices, all resulting in persistent deflation.In December, the average consumption expenditure of households in Japan have fallen by 3.3% over the same month of 2009, according to statistics from the Ministry of Internal Affairs. Consumer spending household employees, representing about 60% of the total, their share fell 2.8% in real terms over the same period, while their average income fell by 1.4% over one year to 895,511 yen (7,900 euros), an amount that includes the traditional year-end bonuses. Also in December, retail sales in Japan have receded by 2.0% year on year, hampered by the reduction of public aid for the purchase of appliances, announced on its side the Ministry of Economy, Trade and Industry (METI).

The evolution sawtooth demand from an abundant supply is a major factor in the continued decline in consumer prices.Excluding those perishable products, pricing details have receded by 1.0% in 2010 compared with 2009, although the pace of decline has slowed at year-end, according to Ministry of Home Affairs. Japan has been suffering for nearly two years of deflation, a pernicious phenomenon, already known by the country between 1997 and 2006, which discourages business investment and consumer spending weakens.

The magnitude of the decline is tightening, however, since the worst (-2.4% yoy) recorded in August 2009. In December, the index has declined by only 0.4% over one year, the ministry said. "It is too early to predict when Japan get out of deflation," considers, however, Hideki Matsumura, economist at Japan Research Institute. "The data show that it is embedded.Even if the price index becomes positive at the end of the year because of rising prices of raw materials, this does not mean that the country regained its purchasing power, "he added . Deflation is one of the main threats to the country's economic recovery, which was released last year the violent 2008-2009 recession but the economy remains fragile and dependent on the external situation. To try to overcome, the Bank of Japan (BoJ) has resumed in early October with the zero interest rate policy, and amplified sound system of monetary easing, hoping to encourage and demand.

Flooding will cost half a percentage point of GDP for Australia

To meet these expenditures, the government will introduce a windfall tax on income of 0.5% for those whose incomes exceed $ 50,000 Australians. The city of Toowoomba in Queensland is under the waves. Floods devastated the north-eastern Australia since late 2010.

The floods that devastated parts of Australia over the past three months are going to amputate the growth of the current fiscal year, said Thursday that Prime Minister Julia Gillard, who announced the creation of a special tax.

"Preliminary estimates of the Treasury growth of Gross Domestic Product (GDP) during this fiscal year will be reduced by half a percentage point due to flooding," said the head of government to the National Press Club.

In early November, before the floods, the Australian Minister of Finance stated Wayne Swan expect a growth of 3.25% for the 2010-2011 fiscal year which ends June 30

"The best preliminary estimate for the direct cost of the floods for the federal budget is 5.6 billion Australian dollars (4.07 billion euros), Prime Minister added.

The flooding "could be the costliest natural disaster in our history," said Julia Gillard.

To meet these expenditures, the government will introduce a windfall tax on income of 0.5% for those whose incomes exceed $ 50,000 Australian tax year 2011/12, she added. Households directly affected by the floods will be exempt.

Canberra will also speed up the temporary work permits for skilled immigrants willing to come work in flooded areas.

Australia, including the mining industry is booming thanks to demand from emerging countries, a shortage of manpower. Its unemployment rate was 5% in December, a rate considered close to full employment.

Australians jobseekers will receive financial incentives to work in Queensland, the state in the north-east that bore the brunt of floods.

Julia Gillard has also estimated that the economy was strong enough to withstand the costs of the floods, without having to borrow. It reaffirmed its commitment to find a budget surplus in 2012/2013, when the economy "will work in full capacity."

Several environmental projects will be reduced, including a program of scrapping, while spending on infrastructure will be deferred in order to release funds for reconstruction.

In early January, economists have warned that the dramatic flooding in the north-east, which have destroyed crops and blocked the mine production would commence almost certainly the country's growth.

But they also stressed that in the medium term, growth would certainly be boosted by reconstruction work.

Successful market entry for the European Stability

The European Fund Financial Stability (FESF) has successfully done its first steps Tuesday on the market and issued 5.0 billion euros of bonds 2.75% in July 2016 in much better conditions than expected given the massive demand, it was learned from sources close to the leaders.

The resale price was fixed at 99.302% and offers a yield of 6 basis points over the swap curve.

The order book is open at 9:00 am (Paris time), was closed in 15 minutes, the demand exceeded 45 billion euros, the sources said.The FESF says more than 500 investors have made offers.

The fund added that the Bank of Japan purchased 20% of the amount issued.

"The demand was such – a record – that the spread of initial indicative range of 8-10 basis points has been tightened at 6-8 basis points," said an official of a leader.

FESF is one of the pillars of the European financial solidarity in place until 2013 to assist countries in the euro area in great difficulty because of the weight of their debt.

The interest would be "massive" for the first issue of FESF

The European Fund Financial Stability (FESF) should proceed on Tuesday its first bond issue guaranteed by the States of the euro area for a total of three to five billion euros maturing in July 2016, it was learned Monday from sources close leaders.

From the same source, that a "book of intentions," which has no commitment, was opened Monday morning and in the end it exceeded the 13.0 billion euros.

"The interest is massive.The operation will probably be tomorrow (Tuesday), "it was said.

The resale price of the program's inaugural FESF, rated "AAA", should provide a yield of between 8 and 10 basis points over the swap curve.

HSBC, Societe Generale CIB and Citi are the leaders of the operation.

The FESF part of the European system of financial solidarity in place until 2013 to assist countries in the euro area in great difficulty because of the weight of their debt.

The FESF may borrow up to 440 billion euros on the market with the guarantee of the states of the euro area, except Ireland.Given the limited number of countries in the euro zone rated "AAA" (six countries: France, Germany, Netherlands, Luxembourg, Finland and Austria), FESF can actually borrow that 250 billion euros with a note " AAA.

Besides FESF, a new structure, the device includes an emergency mechanism specific to the European Union which allows Brussels to raise funds in the 60 billion euros.

The European Commission has lifted Jan. 5 EUR 5.0 billion to 5 years to help Ireland becomes first country to have appealed to the European system.

The deal offered a yield of 12 basis points over swaps, or 2.59%.Demand had exceeded 20.0 billion euros.

The International Monetary Fund (IMF) is also involved in the aid device for a total of around 250 billion euros.

What you should know about the heritage of the French

The heritage of the French has doubled in ten years. It amounts to 10,000 billion euros and is composed mostly of real estate. Half of it is concentrated in the hands of 10% of the richest households. The numbers to remember. View of the residence Liliane Bettencourt at Arcouest in Britain. The heir to L'Oreal has made over the last ten years 400 million to government service tax under the income tax, tax on capital and CSG-CRDS.

The heritage of the French is at the heart of debates since the beginning of the year. Indeed, the government plans to change profoundly the tax, including removing the recent but controversial tax shield, and the almost thirty solidarity tax on wealth, just as controversial.A working group led by the Minister of Budget Baroin and Economy Minister Christine Lagarde is responsible explore possible ways to offset the shortfall. Because this reform must not increase the deficit. But to decide who or what tax, wants to better know exactly what the French have. A study by the Treasury Department sent to some members, including L'Expansion. Com has been copied, is precisely the point on this heritage. Here's what to remember.

10 000 billion euros of assets

In 2009, the gross assets of French households amounted to 10,000 billion euros, the equivalent of five years of GDP for France. He has more than doubled (+103%) in ten years. In income (gross – Debt related to property purchases), this represents 9 trillion euros.This heritage is composed of 60% (6000 billion) real estate for a third of financial assets (3320 billion) and the remaining business assets. Germans and Americans are less rich (six years of income) but the British more (eleven years).

158% increase in real estate

Given a 111% surge in house prices between 1999 and 2009 (index Notaries INSEE), the real estate of the French increased from 2360 to 6,090,000,000,000 euros during this period. Therefore: the number of taxpayers ISF has also tripled, from 212,000 households in 1999 to 559,000 in 2009.

80% of primary residences

Second homes represent only 20% of properties. It is therefore understandable why the debate on reform of the ISF include the exemption of principal residence.A proposal that does include the UMP Jérôme Chartier and that would, with a lower scale and an increase in the tax base, reduce the TFR of about 450 000 households.

+120% For life insurance

The household financial assets – representing a third of their wealth – it has increased "only" 54% in ten years. What remains higher than the growth of the economy (39%). The highlight is the success of life insurance. 1.36 trillion are now stored, against 620 billion in 1999. An increase of 118% in ten years. Life insurance accounts for 40% of household financial assets. The rest is for one sixth of tax-free accounts and savings plans (PEL) for another sixth of deposits and tax-books, and nearly 30% of securities.

Half of assets are held by 10% richest households

The latest survey conducted by INSEE Heritage shows that wealth is more unequally distributed than income. In 2004, the 10% of households in the richest heritage hold 48% (the 5% richest 35%), while 50% of households in the lowest wealth hold only 8%. In comparison, 10% of richest households by income received just over a quarter of total revenues.

2 / 3 of second homes owned by the richest households

More households own heritage, the more they diversify their investments. Households with limited assets invested almost entirely on tax-free accounts. Including the Livret A. In 2009, over 16 billion euros have been collected on that investment.Even if its returns have suffered in 2010 a lower compensation, the booklet A remains the most popular investment in France. Then, households purchase their primary residence. Finally, they increase their share of life insurance and securities. Over 80% of securities out life insurance are owned by the 10% of households in the richest heritage. They also have two-thirds of real estate other than principal residence.

6.5% average annual return for equity portfolios

In 2009, the French Heritage furniture amounted to 940 billion euros. The gross real return of French shares fluctuates around 6.5% per year. That of government bonds is about 4%. For comparison, the performance of a Parisian housing rented is valued at 4.6%. The outperformance of the shares is offset by risk-taking more important.Therefore it is the richest households that invest in assets as these assets in high yield.

A third of the estate used to finance debt

Households occupy a central role in financing the economy by putting their financial savings on different media such as debt, equities of companies or investments in financial institutions. Thus, 29% of household financial wealth funds as government bonds, 25% of firms in stocks and 14% in bonds and 32% of businesses and individuals in the form of bank credit . In late 2009, the French public debt was 32% owned by French residents, 31% by European residents and 37% by residents outside the euro zone.

Wall Street ends down again, the Dow lost 0.02%

U.S. stock markets ended slightly lower Thursday.

Surge in Chinese exports of rare earths in value

Chinese exports of rare earths decreased in volume last year but have soared in value because of higher international prices, according to data released Wednesday.

China, which provides about 97% of world supply of rare earths, reduced its export quotas by 40% in 2010, which has excited buyers and business partners.

At that point the United States in December threatened to complain against China before the World Trade Organization (WTO).

For the first half of 2011, export quotas have been reduced by 35% over the first half of 2010, but quotas for the entire year have not yet been announced.

President Barack Obama on Wednesday welcomed his Chinese counterpart Hu Jintao in a business environment particularly tense between the two countries.

China exported 4,738 tons of metals, minerals and compounds from rare earths in December, more than double in November, bringing the annual volume exported 39,813 tonnes, according to Chinese customs statistics.

The amount of real exports far exceeds the quota of 2010 which had been set at 30,258 tons and it may take the difference to deliveries made earlier this year, recorded in the non-employee quota of 2009.

UNITED STATES AND AUSTRALIA WANT TO INCREASE THEIR PRODUCTION

Weak international demand in 2009, motivated by the financial crisis could lead China to reduce its export quotas next year. But demand had recovered when the reduction was announced last summer and the market took it badly.

High-tech U.S. companies and Japanese in particular have then looked for other suppliers.

The decline of trade in rare earths in volume was more than offset by a surge in value.Thus, the tonnage exported in December 2010 was down nearly two-thirds compared to December 2009, but its value had quadrupled to 309.2 million dollars on an FOB (free-on-board or fob ).

In value, exports of Chinese rare earth reached 939.7 million dollars in 2010 against 310.1 million in 2009.

December's exports averaged 65,257 dollars per tonne, the highest point in five months of intensive rise. In July, the average was 14,405 dollars per tonne. The following months saw increases in excess of $ 10,000.

Yao Jian, spokesman of the Ministry of Commerce, reiterated Tuesday the government had yet to decide on annual quotas for 2011."China will continue to provide rare earth market and manage its international export quotas in accordance with WTO rules," he said, adding that the quotas in 2011 would be announced "in due course".

He welcomed the initiatives taken by the United States and Australia to increase their own production of rare earths. "This will actually protect the global supply," he said.

China has increased the control of this particular mining activity and plans to issue new standards to reduce the heavy pollution that has been attached.The Ministry of Land and Resources said Monday he would create special zones to better regulate the extraction.

Wind turbines and hybrid cars are among the heaviest users of rare earths, a set of 17 chemical elements including scandium and yttrium.

First issue of debt FESF next week

The European Fund Financial Stability (FESF) announced Monday it has appointed Citibank, HSBC and Societe Generale to make its first bond issue, three to five billion euros in five years, expected next week.

The benchmark bond is part of financial aid for Ireland, said in a statement FESF.

"In 2011 and 2012, the FESF Levera to 26.5 billion euros in the capital market under the support program to Ireland, which includes two other programs from three to five billion euros in later this year, "reads the statement.

The FESF is rated AAA by all three rating agencies, Fitch, Moody's and Standard & Poor's.

The CEO of the fund, Klaus Regling, said the first issue of a major operation would FESF for markets and for the euro area.

"I am confident that the strong position of such international institutions highly respected by the market will ensure the success of our first issue, which will help restore stability in sovereign debt markets and to protect the euro," he said.

Based in Luxembourg, FESF was created last year by the European Union to provide financial security for countries in the euro area in need.

Finance ministers of the euro zone met Monday to discuss increasing the endowment fund, although France has warned that no final plan would be adopted before the month of March.

A survey conducted by Reuters among analysts and released Monday shows that the capacity of FESF would need to be increased compared to 440 million today to deal with any requests he may receive.The median capacity necessary to emerge from the survey amounted to 700 million euros.

Markets expect Portugal and perhaps Spain, are forced to ask the European Union financial assistance similar to that obtained by Greece and Ireland last year.

The Paris Bourse fell slightly, Carrefour rises

The Paris Bourse very slight decline in starts Friday caught between the decline of Wall Street and Tokyo on one side and the good results from Intel and sales of Carrefour reassuring each other.

Around 9:40, the CAC 40 index showed a loss of 0.11% to 3,970.65 points after touching the day's highest closing level since April 2010.

Carrefour gained 0.7% after the publication of its sales, slightly better than expected.

STMicroelectronics and Soitec earn 0.5% and 2%, after the good results from Intel for the fourth quarter.

Lafarge takes 1.4%, while Bank of America-Merrill Lynch raised its recommendation from "underperform" to "neutral title.

Danone loses 1.3%, while Barclays has cut its rating to "overweight" to "balance line".

Other major European markets also fell slightly: London and Frankfurt lost 0.1% 0.16%. Of the European indices, the EuroStoxx 50 yields 0.25% and 0.5% Eurofirst 300.

The euro is trading at 1.3440 / 42 dollars, against 1.3360 the previous day in the end, after touching U.S. $ 1.3443 this morning, its highest level in 30 days.