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The Fed is pessimistic about the economy, rates remain very low

The Federal Reserve said Tuesday it would keep interest rates at a record low at least until mid 2013, without announcing new measures to support the economy.

The statements of the U.S. central bank were eagerly awaited after the lowering of the sovereign rating of the U.S. Standard & Poor's Monday has resulted in a rout of financial markets.

Investors are struggling to interpret the possible impact of this commitment by the Fed on U.S. growth since the Dow Jones operates in a very volatile from the statements by the Fed.

The Federal Reserve, which reduced its growth forecast at its June meeting, continued to be pessimistic for the first global economy, saying that the increase in gross domestic product this year will be lower than expected.

"The release of the Fed is very negative outlook for the economy," said Omer Esin, market analyst at Commonwealth Foreign Exchange.

"By committing to maintain interest rates at an extremely low level until far into the future, the Fed implied that it anticipates a period of slow growth much longer than expected."

Following a meeting of its Monetary Policy Committee (FOMC), the U.S. central bank, as expected, kept the fed funds rate within a range from 0% to 0.25%.

The Fed had reduced interest rates at that level in December 2008, in a financial crisis.

THE FED SAYS HE WILLING TO DO MORE

"The committee believes that today's economic conditions – including a low utilization rate of resources and moderate outlook for inflation over the medium term – are likely to ensure an exceptionally low level of federal funds to at least mid 2013, "said the Fed in a statement.

Three members of the monetary policy meeting – Richard Fisher (Dallas Fed), Narayana Kocherlakota (Minneapolis) and Charles Plosser (Philadelphia) voted against this commitment to keep rates low for two years, suggesting a monetary policy committee divided.

Not since a November 1992 meeting, three members of the Monetary Policy Committee had opposed the decisions taken by the committee as a whole.

The Federal Reserve also suggested it was ready to do more to support the economy, saying it still had tools to do it and would use them if necessary.

Some believe that it can be concluded from this estimate that the Fed has not closed the door to a third repurchase program obligations or "EQ3", which was highly expected by many market participants.

"Sixty percent of the market had anticipated a form of EQ3. But there is no QE3 but there is an explicit commitment to low levels until 2013 (…) This is a factor of certainty and that should help to generate higher levels of lending activities, "said Alberto Bernal (BullTick Capital Markets).

The Fed also reiterated its policy of reinvesting the proceeds of maturing bonds in its portfolio without specifying the calendar in the matter.

The Air France passenger traffic up 6.9% in July

Air France-KLM, Europe's largest airline by revenue, reported in July an increase in passenger traffic coupled with higher revenues but a decline in cargo business.

Action Air France lost 5.74% to 6.56 euros by 9:20, amid fears of a relapse of the global economy and extension of the debt crisis in the eurozone.

The Franco-Dutch company rose 6.9% in passenger traffic last month, higher than the 5.4% increase in capacity operated on the month.

The load factor was up for his 1.2 points to 87.3%.

"Unit revenue per available seat kilometer (RASK) excluding currency has improved over the previous year, driven by traffic in business class," said Air France said in a statement.

Networks Americas and Asia, the load factor in both cases exceeded 90%, while traffic has increased by 9.6% and 8.1%.

The European network is itself remained "dynamic" last month (+7.2%) despite the debt crisis.

However, freight transport remains to the death as in previous months.Unrest in Africa and the Middle East, combined with overcapacity in from Asia, have resulted in a decrease of 2.7% in cargo traffic in July.

Capabilities having remained broadly stable, the load factor fell 2.1 points to 64.0%, while unit revenue per tonne kilometer (RATK) excluding currency is down from one year to another .

The International Air Transport Association (Iata) said last week that the tendency to transport passengers remained on an upward trend, but at a rate lower than the 10% rate observed during the rebound following the last economic crisis.

"The slowdown reflects the deterioration in economic growth and rising costs caused by rising fuel prices and the higher taxes in some countries," said IATA.

The association also noted that freight volumes, a barometer of trade, had not shown growth since July or August 2010.

Decrease of 16% of the profit of NYSE Euronext in Q2

NYSE Euronext profit on Tuesday, down 16% in the second quarter due to lower trading volumes on stock markets and derivatives markets in New York and Europe.

The transatlantic exchange operator in the middle of a merger with the German Deutsche Börse to nine billion dollars (6.3 billion), made a profit of $ 154 million, or 59 cents per share in second quarter , against $ 184 million, or 70 cents per share a year earlier.

Revenues rose 1% to 661 million.

On average, analysts expected a profit of 60 cents per share and a turnover of 652.7 million dollars, according to Thomson Reuters consensus I / B / E / S.

The Paris Bourse is close to its lowest in 2011

The Paris Stock Exchange declined sharply and approaches the lowest of the year in early trade Friday after four consecutive sessions of decline against a background of political stalemate in the United States on the ceiling of debt and doubt resolution the debt crisis in the eurozone.

Around 9:30, the CAC 40 index lost 1.02% to 3674.92 points after a low of 3649.96 points, or five dots above the lower end of the year reached on July 18th (3645 points) .

The results of large groups is not likely to improve the climate created by the sovereign debt crises in Europe and the United States, investors punish poor performers.

Veolia (-6.58%) shows the largest drop in the CAC 40 after being forced to lower its 2011 targets.

Schneider fall of 4.3%, Japan and commodity prices have had a negative impact on the first half.

Vallourec gained 1.76% and is the subject of buying on the cheap after a fall of almost 17% following the announcement of a drop in its second quarter results.

London and Frankfurt lost 0.46% 0.81%. Of the European indices, the EuroStoxx 50 yields 1.07% and 0.69% Eurofirst 300.

The euro declined and traded around 1.4290 dollars against 1.4330 on Thursday.

Carrefour sees his ambitions evaporate Brazilian

The abandonment of Abilio Diniz proposed merger between the Brazilian subsidiary of Carrefour and distributor Grupo Pao de Acucar (GPA) is another setback for the giant French distributor who struggle to adjust its performance in mature markets in Europe .

The withdrawal of the state bank BNDES, supposed to finance in part the operation, coupled with the overwhelming opposition expressed Tuesday by the Board of Directors of Casino, were due to the commitment shown so far by the President of GPA, the Billionaire Abilio Diniz.

In an abrupt about-face, the businessman said last night that the project was "suspended", ending the hopes of Crossroads to increase its exposure in a strategic market with strong growth.

The second is a worldwide distributor delicate position. Already weakened by three successive warnings about its results since last fall, he announced Wednesday that operating profit would fall 23% in the first half because of its poor performance in France.

He has not given much to its annual targets as all the analysts said, however, out of reach.

CASINO HAS PLAYED ON ALL TABLES

"The Brazilian deal is dead.This is a new blow to the strategy and management of Carrefour, "said one analyst who requested anonymity.

The French giant has in his strayed into a complicated issue and the outcome of which was the least risky in light of existing commitments towards Casino.

To Herve Mangin, fund manager at Axa IM, the market fears that Brazil joins the series of false hopes given by the group in recent years.

In exchange, according to new lows hit in the opening, the title has recovered and showed an increase of 0.8% to 22.17 euros to 14.15, in a stable market.

At these courses, it shows a fall of more than 28% since the beginning of the year.

"We arrive at a true value to the case.Investors buy at that price, but the question of management or strategy, "said one trader.

Casino, for which the market had already largely mediated Tuesday, took for its 2.13% to 64.84 euros, limiting its loss to 11% since January.

"The overwhelming opposition of the board of Casino was the main factor that determined Diniz to back down," said a close case. For the Brazilian, this operation was inconceivable without the group Saint Etienne, they added.

It is true that in the battle, Casino has been sustained.First attacking Abilio Diniz before an arbitral tribunal, then proceed to an intense lobbying Brazilian authorities by speaking of "expropriation" and finally engaged, through a board of directors unanimously (with the exception of the voice of Abilio Diniz) in an attack in good standing of all the economic aspects of the project.

A FACE-TO-FACE FINE

While Carrefour has submitted its agreement to the green light from the BNDES, the French group could only take note Wednesday morning that "the conditions of a merger are not met."

However, its chief financial officer said Wednesday during a conference call that if a new offer was presented, Carrefour could study it.

Seeing as the days wane the public support of his country, Abilio Diniz had assured the opportunity to find other ways of funding than the BNDES.

But in the present circumstances, it is unclear how it could come back to Carrefour with a proposal that would still not the business of its French rival.

In the short term, the question arises of face-to-face between hard Abilio Diniz and Jean-Charles Naouri and governance of a group (GPA) that they co-control through its entire holding Wilkes.

Some observers suggest a possible release of Abilio Diniz before the expiry of a pact that binds to the Casino.

"Today, Casino has clearly scored points.The pact with Diniz seems flawless, Casino has the right for him, a factor that has gradually been built by the Brazilian political circles, "said one investor.

Ally historic Casino in Brazil, Abilio Diniz was proposed late June to Carrefour, in a complex pattern, to merge its Brazilian operations with those of GPA to give birth to an industry heavyweight weighing more than 30 billion euros in turnover business.

This scheme quickly approved by the board of Carrefour, had immediately provoked the wrath of Casino, under a shareholders' agreement signed with Abilio Diniz ten years ago, can take control of GPA as of June 2012.

General strike in Greece against austerity

While the Greek Parliament examines a new austerity plan even stronger than the previous ones, the unions called a general strike of 48 hours. The euro area is preparing his side a "plan B". Greek unions have launched a new 48-hour general strike Tuesday, June 28 to protest against the austerity budget before Parliament.

Flights deleted, random power outages, canceled trains, banks closed: Greece will idle Tuesday, June 28, the first day of a general strike of 48 hours launched by unions to protest against the austerity budget review by Parliament. The unions oppose the measures in the plan: higher taxes and massive privatization.

Tuesday and Wednesday after three 24-hour general strikes since the beginning of the year, officials will strike again, banks closed and hospitals will work with staff on call. Journalists have announced their next work stoppages than five hours Tuesday and early Wednesday afternoon, which will affect especially the newspapers and websites broadcast information.

The austerity measures are intended to secure the payment by the country's creditors and the IMF-EU-a new tranche of money to Greece, which otherwise would be left at risk of default in July. Despite opposition from the street, the Socialist government expressed confidence in the ability of countries to take the step of discipline, through the adoption of multi-year plan of recovery and its implementing legislation.Votes are expected Wednesday and Thursday.

The vote seems certain austerity plan

Monday, George Papandreou urged Greek MPs to vote the proposed austerity budget submitted to them, so that the country to the brink, "stands". Greek Prime Minister, attempting to unite the government majority, which has 155 seats out of 300, said the vote "is a unique opportunity for the country stands." The new finance minister Evangelos Venizelos called on MPs to "get serious and unity (…) so that the coffers are not found empty at the beginning of July."

The ministers of the euro zone must meet July 3 to give the green light to the payment of the fifth tranche of the loan to Greece in May 2010, crucial for the country to honor its schedule in July and pay pensions and salaries.If the budget was not passed, Greece would be faced with the possibility of a default in the summer, with a global shock wave considered superior by some analysts to the effect on the markets by the failure of U.S. bank Lehman Brothers in September 2008.

However, if the new austerity program would be rejected, the euro area would work on a "plan B" to avoid bankruptcy of Greece and contagion to other countries, according to a European official. "We do not think what we're working, you can be certain," the source said speaking on condition of anonymity. The official said even in this case "the next step is not a default" of Greece. He declined to give details at this point.

Safran and Honeywell join forces in the aircraft taxiage

Safran and Honeywell Aerospace announced Sunday a joint venture equally in a new system taxiage greener aircraft from the gateway to the runway, designed to save companies up to 4% fuel consumption .

This new system of "green taxiing," which will be available from 2016, represents a market of five billion dollars over the next 15 years, said the two groups at a news conference.

It is aimed primarily at short and medium haul aircraft like the Airbus A320 or the Boeing B737, where the fuel consumption during this phase of rolling along the tarmac is the largest in proportion to the total time of flight compared the long haul.

"With the system of 'green taxiing' Electric and Honeywell (…), Safran will allow airlines to save hundreds of thousands of dollars per aircraft per year," said Tim Mahoney, CEO of Honeywell Aerospace in a joint press conference.

The principle of "green taxiing" is to stop using the motors to push the aircraft towards the runway, but to place a small electric motor in the wheels.

The rising price of kerosene, the main cost item for airlines with personnel costs, prompted the International Air Transport Association (IATA) to halve the last week its forecast for profit for the entire airline industry in 2011 to four billion dollars.

VERY INTENSE ACTIVITY LEVEL

Jean-Paul Herteman, CEO of Safran said addressing the Paris Air Show, which starts Monday, with "very good prospects."

"The activity level is still very strong even though the aircraft manufacturers' order books are full of four or more years," he noted, adding that it had doubled its turnover in the spare parts 2020.

Safran's joint venture with General Electric, CFM International, said on Saturday expect strong demand for aircraft for the next 20 years, while worrying about the pressure on the prices of raw materials whose prices reach record highs.

CFM delivered in late May-56 22,000 CFM, the world's best selling, with a target of 30,000 by 2020.His successor, Leap, the first Chinese customer for its Comac C-919, is one of the drivers selected by Airbus for A320neo, the enhanced version of its flagship single-aisle, and is available to Boeing for possible new version of its 737 or a new aircraft.

Jean-Paul Herteman also expressed confidence in the realization of his imminent takeover of the U.S. L-1, the shareholders of the specialist security solutions approved in February, saying just wait for the completion of the recent regulatory approvals for United States.

Safran, which generates 80% of its turnover abroad, increases the acquisitions outside Europe, where two-thirds of its workforce and suppliers.

"Our customers pay us in dollars and it must be balanced as much as possible our net exposure to currency fluctuations, therefore foreign acquisitions help us meet those goals," he said.

Jean-Paul Herteman also confirmed to Reuters talk to Rolls-Royce to provide a common solution to the proposed engine drone Telemos developed by Dassault Aviation and BAE Systems, EADS Talarion competitor.

The Swiss franc crosses the threshold of 1.20 against the euro

The Swiss franc sign Thursday a new high against the euro, crossing the symbolic threshold of 1.20 to the euro while the disturbance case Greek market and pushing investors looking for safe havens.

The euro fell to mid-day more than one percent to a record high 1.1957 francs on electronic trading platform EBS, traders suggesting an acceleration of losses in the wake of 1.1970.

"It seems that the momentum for the pair euro / franc is accelerating downward," said Kathleen Brooks, currency strategist at FOREX.com.

The implied volatility of the euro / franc surged, reflecting the perceived risk, the options market, a new slide in the spot price.

Implied volatility on one month exceeded 12% against 11.2% the previous day.

The Swiss National Bank (SNB) as expected Thursday maintained its expansionary monetary policy, but it evokes the strong Swiss franc as a major risk, especially for the export industry.

Analysts, comforted by the words of Jean-Pierre Danthine, board member of the SNB, consider it very unlikely the resumption of market intervention. "It does not appear that the NBS wants to intervene, and if it does, it would act in an environment of risk aversion," said Brooks.

The SNB has occurred between March 2009 and June 2010 to counter what she felt at the time as any excessive appreciation of the franc could cause deflation.

The franc also rose against the dollar, down from 0.5% to 0.8491 francs.

"Papandreou is expected to rise to the challenge"

Greek Prime Minister does not resign or form a government of national unity. George Sefertzis political scientist Greek, the street will not drop their arms until the government will not be dropped. Interview. Greek Prime Minister George Papandreou, lorsd'un televised speech on 15 June 2011, where he announced a government reshuffle. Eventually there will be no national unity government in Greece. Geroges Papandreou, Prime Minister, just a redesign. The opposition must be disappointed …

It is even more disappointed that Papandreou made the mistake of giving the impression that he would resign, throughout the day. Now it will just reshuffle his government and submit it to a vote of confidence in Parliament.Yet he had begun to negotiate with the opposition but it posed two conditions that he found unacceptable: that a new prime minister is appointed and that the new government to renegotiate the agreement on the bailout. The opposition claims including lower taxes on corporations and individuals. What Papandreou refused to consider given the deficit.

Arrive there anyway to vote its savings program, a sine qua non to receive the last installment of the bailout?

A Socialist MP has defected Tuesday, and another said he would vote against … P Papandreou should still be able to pass the budget by a few votes from the extreme right and center. However, it must expect a rise in social protest because public opinion really hoped a new government.Although in reality the conservative opposition may not have much else to offer, the Greeks wanted a fresh start.

Public opinion supports this movement she "outraged"?

A portion of the population, the "realists" have resigned and see no alternative to austerity. These senior professionals and well integrated in the labor market. But much of the middle class no longer wants to suffer sacrifices without seeing results. Among them, the vast majority under 35 years but there are also many older people. The "outrage" protest against the political class as a whole. They accuse the political system to be responsible for the economic situation. There is also a feeling of national humiliation, especially with the impression that with the privatization program, the family jewels are for sale to foreigners.

What do they ask?

They want higher wages and lower the retirement age but also higher taxes on wealthy. They refuse either to employees to support the effort to restore public finances.

What could drive these social movements if they reinforce?

They will not prevent the implementation of austerity measures. However, they undoubtedly precipitated the early elections. And then the ruling party will fall, like Portugal and Ireland.

The Governor of the Bank of Israel IMF candidate

The Governor of the Central Bank of Israel, Stanley Fischer, has decided to apply for the post of Director General of the International Monetary Fund, reported Saturday the Israeli TV Channel Two.

The string specifies the name of Fischer is on the final list of candidates for the position left vacant by Dominique Strauss-Kahn accused of sexually assaulting a hotel employee and arrested May 14 in New York.

Originally from Zambia, Fischer, aged 67, has served as deputy director general of the IMF and is considered one of the architects of the resistance of the Israeli economy during the 2008 financial crisis.

He carried 10 times for hikes interest rates to contain inflation and ensure economic growth in our country which should be 4.5% in 2011.

The French Economy Minister Christine Lagarde, supported by the European Union, is like a favorite to move into the CEO chair.

Christine Lagarde was Saturday visit to Saudi Arabia and met with his Saudi counterpart in Jeddah as part of its campaign to garner votes.

"Saudi Arabia plays an important role in the global economy," said Ibrahim Alassaf told reporters."We will seek a stronger role and the part of the kingdom in the IMF," he added.

If she has the support of Europeans, Lagarde must attempt to rally to his candidacy Chinese and Americans, while South Africa's Trevor Manuel has withdrawn from the race Friday.

The most serious opponent of the French minister seems to be the governor of the Bank of Mexico, Agustin Carstens.