The bond rate to ten years in Italy continued its flight Friday morning, dangerously approaching its record high, while Rome was able to borrow 10 billion euros in the markets but at astronomical rates. Around 11:45, the yield stood at 7.247% Italian, against 7.081% at the close Thursday. He had reached Nov. 9 the highest since the creation of the euro area to 7.483%.

A borrowing rate of 7% is considered unsustainable in the long term by experts for a country to be able to honor its debt. "The award has not gone well, which puts further pressure on Rome and its new government," said Cyril Regnat, bond strategist at Natixis.

After months of negotiations, the operation of a $ 4.1 billion, will allow the two stock exchange operators to pool their complementary strengths in a rapidly consolidating industry.

The Tokyo Stock Exchange (TSE) controls 90% of equity trading in cash while the Osaka Securities Exchange (OSE) attracts the largest volumes of futures contracts on the Nikkei and other derivatives.

The combined value of these securities listed on stock exchanges comes behind that of NYSE Euronext (12,000 billion) and Nasdaq OMX Group (close to 4.000 billion), according to figures from the World Federation of Exchanges (WFE).

Over the past five years, mergers and acquisitions announced in the stock sector operators accounted for about $ 83 billion, the players wanting to reduce costs and diversify the face of weak revenue from the traditional trading of shares.

The TSE will offer 480,000 yen per share OSE, a premium of 14% over the closing price on Monday.

The entity formed by the merger will remain as a vehicle listing title OSE, which gained up to 5.5% after the announcement, before closing up 4.6%.

The ratio of the TSE merger valued at approximately 1.7 times the OSE, whose market capitalization reached $ 1.5 billion.

The French laboratory, shaken by the lapels of the anti-arrhythmic Multaq Iniparib and cancer, has made the past five years only two new products on the market (and Multaq Jevtana in prostate cancer). It plans to launch 19 drugs by 2015, six next year, but warns that it expects no more than 5% to 7% contribution to sales in this horizon.

Of "minibusters", ironically some analysts, however, willing to give time to a group that has appointed the head of its research Elias Zerhouni, a world-renowned scientist.Since that appointment, the European regulator, however, restricts the use of Multaq, and Iniparib proved a failure in the last phase of its development.

"Sanofi has made significant progress in improving the profitability of its research but we know the results in eight or nine years. We have to accept a long development cycle", says Michael Leacock, an analyst at RBS.

The group announced this year more positive Phase III, and for including Lemtrada Aubagio (multiple sclerosis), Zaltrap (colorectal cancer), Visamerin / Mulsevo (prevention of venous thrombosis) and Lyxumia (type II diabetes).It is the latter that analysts consider the most promising, with potential sales they estimate at about 600 dollars in 10 years.

DIFFICULT TRANSITION TO MANAGE

"This is a cohort of small to medium products that will not be enough to transform the group, but at least it has more risk (of the type of anti-obesity pills) Acomplia when suddenly a product may weigh 15% to 20% of sales and cause large deviation in the share price, "an expert in the field into perspective.

Three years after the failure of Acomplia and the arrival of CEO Chris Viehbacher, Sanofi has launched a strategy to find new sources of growth that does not depend on its research and especially not the 'blockbusters', these drugs can make more than one billion dollars in sales.

Spurred by the loss of its major patents, the group has drastically reduced its costs, carried out an extensive cleaning of its project portfolio and achieved a score of acquisitions exceeding 23 billion euros, 14.8 billion for the purchase of the U.S. biotech Genzyme.

These efforts now allow to predict an average growth in sales of at least 5% by 2015 and an increase in earnings per share higher than the turnover.

At Bryan Garnier, Eric Le Berrigaud believes that the next six launches of the group potential "of around four billion euros in full peak at the end of the decade, with an additional lever on Lemtrada if it turns out be sure. "

"Are we willing to pay 'upfront' history to be born again Sanofi in 2013, while it was still difficult to cross two years?" Asked he, however.

The title Sanofi, which has lost 13% in 2010, returned 3.5% since the beginning of the year.The stock is trading with an average ratio of price / earnings ratio (PER) expected to close in September, against nine for the European.

"There is a beautiful story of stock market recovery to play but it will not materialize quickly. The big challenge is to manage the transition between the death of the great product, the rise of products from the pipeline and related growth drivers strategy, such as diversification and emerging markets, "said one banking analyst.

Karl Heinz Koch, of Helvea, notes that "most of their products are secondary and are not first class."For him, the portfolios of Novartis and Bayer are better than Sanofi, which is comparable to those of Roche and GlaxoSmithKline, and similar but better than Merck and AstraZeneca.

Beatrice Muzard, Natixis, concedes that "Sanofi back a little better in terms of development," but believes that the group "is still far short of the very good students like Roche, Novartis and Glaxo same."

"It's not for the pipeline that we recommend buying the title," she adds. "What motivates us is the visibility of growth and the fact that the group has secured a growth of at least 5%, a level that exceeds 60% as revenue grew at double-digit ".

The Federal Housing Finance (Federal Housing Finance Agency), which oversees the giants Fannie Mae and Freddie Mac, criticized those institutions which include Bank of America, JP Morgan Chase, Goldman Sachs, Deutsche Bank or Societe Generale, have sold bonds backed by home loans in these transactions by presenting inaccurate one day.

The director of the FHFA, Edward DeMarco, seeks to minimize the losses of Fannie Mae and Freddie Mac, which had to be nationalized under cover of the 2008 crisis.Fannie and Freddie guarantee bonds backed by home loans.

The banks ended sharply lower on Wall Street. Bank of America lost 8.34% to 7.25 dollars, JP Morgan Chase 4.6% to 34.63 dollars and Goldman Sachs 4.55% to 107.06 dollars.The KBW index of banking sector has lost 4.5%.

The FHFA and other investors say the banks in securitizing mortgages granted to individuals for the purpose of selling them to investors, have not made all the necessary checks and concealed, or not presented correctly, the quality the underlying loans and the borrowers' ability to pay.

Gradually, as borrowers can not meet their deadlines have become more numerous, the value of securities backed by loans dropped, resulting in losses for investors.

The FHFA JP Morgan continues to securities losses totaling more than $ 33 billion.The complaint against Société Générale is more modest: about $ 1.3 billion.

In his complaint against Merrill Lynch, the FHFA says: "The defendant falsely stated that the underlying mortgage loans meet certain guarantees or guidelines, including presentations that have significantly exaggerated the ability of borrowers to repay their mortgage (…)".

FACTORS OF CONCERN

The federal agency in housing finance has already filed a complaint against UBS in July, seeking to recover at least $ 900 million incurred over $ 4.5 billion of debt.

Some fear that the new case Friday formalized rules that interfere with the negotiating are the largest banks with the attorneys general of 50 states on the issue of abuse that took place in mortgage lending.

Banks could indeed be reluctant to enter into this global settlement if they know of other state bodies are also likely to claim their money.

The major U.S. banks are already facing the possibility of having to pay tens of billions of dollars in settlement of disputes relating to their activity in the mortgage and their practices in foreclosure.

Such expenses would further reduce their capital levels and may reduce their ability to lend even as the housing market is at half mast and that the U.S. economy as a whole shows signs of slowing down.

Bank stocks suffer as signs that the Fed could start to sell short-term debt recorded in its books to purchase securities of longer maturity in order to lower long-term returns, as part of stimulus.

This action, known in English as "Operation Twist", could affect the margins of the banks that fund themselves short term and lend long term.

Sign of the concern surrounding the banking sector, the Federal Reserve has asked Bank of America to present the measures it would take if business conditions were deteriorating, reports the Wall Street Journal Friday, citing people familiar with the file.

Losses resulting from the accelerated deterioration of subprime and other mortgages have forced the government to nationalize Fannie Mae and Freddie Mac September 7, 2008. Since then, American taxpayers have spent over $ 140 billion to stay afloat these two pillars of real estate financing.

"Total is preparing to set up a network of about 500 service stations at low prices in the Hexagon in 2012 to compete with supermarkets, several union sources indicate" the business daily reported.

This project must be presented to trade unions at a works council on Sept. 9, according to Les Echos, which said it will not apply to motorway service stations.

The CAC 40 index dropped 1.92% to 3016.99 points, but varied between a low of 2947.91 points (-4.2%) and a high of 3078.28 points (0.07% ).

For the week the index lost 6.13%, after falling 5.48% Thursday, bringing its slide to 17.82% since the beginning of the month.

"Above all, the anticipation of 'double dip' recession in the double way early 1980s, which haunted investors.This contraction is somehow accepted and caused by the austerity budget set up by European politicians, "said Eric Galiegue, president of Valquant.

Other major European markets, London has sold 1.01% 2.19% Frankfurt and Milan 2.46%. The European indices EuroStoxx 50 and 300 respectively Eurofirst fell 2.15% and 1.66%.Since the beginning of the month, the EuroStoxx 50 loose 19.15%, 13.32% and the London Stock Exchange German 23.45%.

On Wall Street, the S & P 500 fell by 0.15% and the Dow Jones 0.33% at midday in New York.

"The second quarter growth was well below expectations on many aspects: sluggish domestic demand, external demand risk and a clear concern about the financial variables, crystallized by market volatility," recalls Erick Muller Chief Investment Officer of Fidelity bond range.

The situation remains very FRAGILE

The implied volatility of the Eurostoxx 50 has remained virtually unchanged Friday (0.29%) but jumped 71.29% in three weeks.

"The month of August will bring real improvement on any of these points.The overall situation remains very fragile for the second half and the markets have adjusted the valuation of assets as a result, but suddenly long term, "said Erick Muller.

In this context, cyclical stocks and banks have once again suffered, Renault (-4.69%) showing the greatest decline in the CAC 40 lost 4.27% BNP Paribas in Paris.

Elsewhere in Europe, banks Unicredit and Lloyds fell 4.8% and 5.8%, while car manufacturers Porsche and Fiat gave up 4.45% and 4.3%.Their respective sector indices ended lower by 1.81% and 2.86%, the car even accusing the largest decrease sector.

Since the beginning of the month, European banks have unscrewed from 21.85% and 27.74% of the car.

The same causes leading to the same effect, investors fled to the assets with the least risk, such as gold, which recorded a new record of 1,877 dollars an ounce and earns nearly 14% since late July, or Yields on government bonds rated.

The rate of the 10-year Bund and of the French OAT maturing well remain virtually unchanged in late afternoon around by 2.1% and 2.77%, after falling in the morning at 2.031% and 2.713%.

"Despite the deterioration in the rating of the United States by Standard and Poor's, despite concerns in general about the astronomical amounts of public debt, interest rates on government bonds with very broad market fall," Valquant said in a weekly strategy note.

"This is a sign that investors are in full 'flight to quality', and they seek refuge in government debt," says the company.

In a letter made public Monday, Howard Schultz, who led a painful restructuring of the first global chain of coffee shops, also called on U.S. contractors to support the economy by hiring.

The head of NYSE Euronext Niedrauer Duncan and his counterpart Robert Greifeld Nasdaq OMX has already expressed support for this initiative.

"I think the idea of ​​Howard is good and I told him he could count on me," writes Robert Greifeld in a letter to executives of Nasdaq.

The call of the CEO of Starbucks is in addition to other interventions of senior private sector leaders who have moved strife torn with Republicans and Democrats in the debate over raising the ceiling of U.S. debt.

These divisions have contributed to plummeting consumer confidence to lowest in more than 30 years and have been cited by Standard & Poor's among the reasons which led to lower sovereign rating of the United States.

This weekend, the New York Times published a paper in its pages of one of its editorial on the call to Howard Schultz, in addition to an editorial in the American billionaire Warren Buffett for a higher taxes on the wealthy, including himself.

"These are highly respected leaders and they want something," said Todd Morgan, director and founder of Bel Air Investment Advisers in Los Angeles, whose company manages the portfolio of households with assets exceeding $ 20 million.

"I think other business leaders will follow suit and require Washington ambitious decisions, which could restore confidence in the economy of our country," he adds.

In his letter, Howard Schultz invites business leaders to engage with him "to suspend any further campaign contributions to the attention of the president and all members of Congress until a fair and bipartisan agreement be concluded that puts our country on more solid fiscal foundation for the long term. "

Howard Schultz CEO also urged his colleagues to invest in new projects or products that will draw up the economy at a time when the fears and uncertainties discourage companies from investing, consumer spending and banks to lend.

"Record levels of cash piling up in business, unused," said the head of Starbucks. "The only way to stop this circle of fear is to break it."

President Barack Obama continues to oppose a short-term renewal of the ceiling of the debt, according to a statement from the White House could lead to a deterioration in the rating of sovereign debt by U.S. agencies notation.

"Congress should stop playing recklessly with our economy, it would be better off to show responsibility and do its job – namely to avoid a default and reduce the deficit," said Jay Carney, spokesman for the House white.

For his part, John Boehner, Republican chairman of the House of Representatives, said he sought with other congressional leaders to find a solution "bipartisan" – beyond the party lines – to raise the debt ceiling of By the deadline of August 2 and avoid a failure of the United States.

In a statement issued after the meeting with the head of the U.S. executive, John Boehner says: "The leaders of the House and Senate will work to find a bipartisan solution to significantly reduce spending in Washington and preserve the full faith and credit enjoyed by the United States. "

The U.S. president has gathered around him the chairman of the House of Representatives, Republican John Boehner, Harry Reid, Democratic majority leader in the Senate, Vice President Joe Biden and Nancy Pelosi, minority leader in the Democratic House of Representatives.

If Congress does not fall by 2 August the ceiling of the debt of the United States, currently set at 14 300 billion, federal agencies can no longer be funded.Investors remain confident that an agreement will be reached on time but the concern is gaining the markets, a U.S. default on their debt is likely to trigger a global economic shock.

The United States now face the "real risk" to see the bill for its sovereign debt broken down by rating agencies, said Friday an official from the White House.

Democrats and Republicans agree that raising the debt ceiling begins with a budget deficit reduction but both sides fail to agree on how to get there.

Barack Obama and John Boehner appeared to move toward a deficit reduction agreement for $ 3.000 billion dollars but voices were raised in the Democratic camp to protest cuts in welfare benefits without immediate increase of taxes in return.

The president said he had submitted a proposal "extraordinarily fair" to John Boehner, but he was clear on Friday that the Republican had broken off negotiations once it had stopped responding to phone calls.

Several countries expressed concern Monday, July 11 the risk of the whole euro area gained by the turbulence caused by the debt crisis in the markets, while Italy pitching turn and called for swift action to stabilize the situation. "We have seen tensions in financial markets in different countries (euro area), maybe a little more in Italy than elsewhere, but we are witnessing the tensions across the euro area and so we have find a solution, "said Belgian Finance Minister Didier Reynders, before a meeting with his counterparts of the monetary union in Brussels.

The banking sector has been particularly rough ride Monday on European financial markets, fears of a default of Greece and the risk of contagion to Italy feeding the fears of investors. Anxiety was setting across Europe with an index Stoxx European banking fell by 2.49%. Italian banks were the most affected. The Milan Stock Exchange let go of 4.3%, as the Lisbon Stock Exchange. The Madrid Stock Exchange it was down 3% Monday afternoon.

"We are faced with something that is more systemic" that the only case of Greece and "the stability of the euro area as a whole", he echoed the Spanish Finance Minister, Elena Salgado. His Greek counterpart Evangelos Venizelos has also called on Europeans to end their procrastination on how to deal with a crisis that has lasted over a year and a half."Today we need a strong and clear message in favor of stability, not only in Greece but in the euro area," he said.

The reluctance of Europeans focus on the development of a second aid package promised to Greece, on a scale similar to the first 110 billion euros in loans decided a year ago. They come from differences over the need to help this time the country's private creditors, banks, insurance companies and pension funds, and the modalities of such participation. "We must now find the guidelines for private sector involvement," stressed Mr. Reynders. Germany, the Netherlands and Finland in particular are a requirement to unlock new loans. "A substantial private sector participation is a pre-condition", reiterated Monday the Dutch Minister of Finance Jan Kees de Jager.

Other countries and the Commission and the European Central Bank (ECB) are much more reserved because they fear that fueling the nervousness of the markets and do not feed a contagion to other fragile states. Madrid is one of reluctance. "Spain has always been cautious about this because it may cause instability. Since the beginning we fear that generates instability," said the Minister of Finance. In any event, the Belgian minister has insisted he does not force you to hand to the banks. "I am sure we will come to an agreement today on a voluntary basis" for this contribution, Mr. Reynders said, calling for a French proposal to "rollover" of the bonds: the banks would be invited to renew their loans to Greece where they have already made them mature.

However, this option has the lead in the wing since the rating agency Standard and Poor's warned it would cause a default part of Greece, that Europe wants to avoid. So, even if it does not receive the approval of rating agencies and have a default, the Netherlands and other countries favor to present to a more radical option. "We did not say that this should be mandatory (…) but some rating agencies will consider any substantial interest as not entirely voluntary," said the Dutch Minister.

The proposed budget for the period 2014-2020, also called "financial perspective", should be adopted in the day and will kick off two years of tough negotiations on a budget expected a slight increase to about 1,000 billion euros over the period.

The equation is difficult for the Commission, it must both support the policy priorities such as infrastructure networks and research with minimal impact to the Common Agricultural Policy (CAP) put forward by France, the cohesion funds promised new entrants from Eastern Europe and the "discount" on the British budget contribution.

According to European sources, the trade-offs made Tuesday night and Wednesday morning are to freeze the financial amounts allocated to the CAP at the level of 2013, a ceiling of 371.7 billion euros over the period.

Deindexed of inflation and a possible increase in EU funding, this budget would increase the share of the CAP in the total budget significantly below the 40% it currently accounts.

However, Brussels would set the table an additional EUR 15 billion in order to "mitigate" the trend and anticipate several challenges in the years to come.

Within this envelope, 2.5 billion euros will be available to combat price volatility, $ 3.5 billion in reserve in case of crises and will be 4.5 billion designed to improve productivity, especially in the face of future competition Mercosur.

Moreover, according to these sources, the "cheap" British would not challenged and the cohesion policy of financial transfers to the poorest regions of the EU would be relatively preserved.

Lines of credit for infrastructure projects in transport, telecommunications and energy and the fight against climate change and research should be revised upwards, says it again.

"The Commission is an ambitious everywhere except on the CAP", says one of the sources consulted.

TAX "TOBIN"

The Commission has decided to counter the opposition of member states to review the EU budget to rise by offering to finance about one third through the creation of a tax on financial transactions, commonly known as tax "Tobin" said to be of the same sources.

According to plans developed by the Office of the Commissioner of Taxation, Aldirgas Semeta, and validated by José Manuel Barroso, President of the Commission, the tax would raise about 50 billion euros per year, or 350 billion euros of by 2020.

This scenario is based on a minimum tax of 0.01% on trade in derivatives transactions are easily relocated in financial centers outside the EU, and a higher tax of up to 0.1% on the exchange of obligations sovereign.Transactions in currencies fall also within the scope of this tax.

Supported by France, Germany, Spain and many other countries as well as MEPs and a large majority of Europeans, however, this idea could face British opposition to see tax issues be coordinated Brussels.

The Commission should also propose to review Twenty-seven of the common tax base for VAT in order to identify some of the income derived from them nationally to redirect them to the EU budget, which would further reduce the direct contributions made each years by the States.

However, the idea of ​​earmarking a portion of the revenues of the European market for carbon rights (Emissions Trading Scheme), which represents some 90 billion euros per year, should not be finally adopted by the Commissioners.

Once submitted, these proposals will be negotiated between Member States and, for some, with the European Parliament.

The chairman of the Budget Committee of Parliament, Alain Lamassoure, argued Wednesday that the institution would seek to make this debate as democratic as possible by involving the European Parliament and the public.