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The operators of the Tokyo Stock Exchange and Osaka announced Tuesday they would merge in 2013 to give birth to the Third World scholarship, with traded securities worth about 3,600 billion dollars (2.664 billion euros) .

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 economy has rebounded more than expected in the third quarter, supported once again by household consumption, but could fall to zero by year end and go into recession in early 2012 when the clouds of global economic pile up.

Gross domestic product grew 0.4% between July and September, slightly higher than expected average of the 31 economists polled by Reuters had forecast a 0.3% increase."Employment is zero, the most dangerous."

VICIOUS CIRCLE

In a separate statement, INSEE has announced that the employment of non-agricultural market sectors had created "only" 7,400 jobs between July and September, which amounts to a zero contribution.

If consumption and investment spending of households supported the performance of GDP in the third quarter, spending by non-financial firms are divided into lower, 0.3%, an alarming signal judged by professionals.

COR-no decisions, but work is progressing in Brussels

No decision will be announced following the summit of the euro area held late Sunday afternoon in Brussels, even if the work is progressing well, said Nicolas Sarkozy and Angela Merkel.

French President and German Chancellor, speaking at a joint press conference after a summit in the first twenty-seven on Sunday morning and noon, said the work "techniques" were still to be completed by the next level of the EU and the euro area on Wednesday.

"Work is progressing well on the banks of the fund and the potential use of this fund are tightening the assumptions and broad agreement is taking shape.On the issue of Greece things are progressing.

The transformation of the European Financial Stability Fund (EFSF) in the bank, which insisted on France, no longer part of the options considered by the finance ministers of the euro, has also said Angela Merkel.

Without commenting on this issue, Nicolas Sarkozy said that France was just as attached as Germany the independence of the institution in Frankfurt, which is itself hostile to the possibility of granting a banking license and Unlimited funding EFSF.

"No solution is viable if it does not have the support of all European institutions," said Nicolas Sarkozy.

The two leaders also said they urged the Italian Prime Minister Silvio Berlusconi, with whom they met ahead of the summit, for it to decisively implement a program of growth and debt reduction Alps.

"I hope that decisions will be taken (…) Italy is a major economic force but Italy has a very high public debt should be reduced in a credible way in the coming years," said Angela Merkel.

Nicolas Sarkozy has outbid by saying that Paris and Berlin were "confident sense of responsibility of all the Italian authorities' political, financial and economic," said Nicolas Sarkozy.

How China extends its tentacles on world trade

In 2025, the share of the Middle Kingdom in world trade will reach 13%, according to HSBC. That of Germany will decline by 8.2% to 7.2%, while France would decline from 3.9% to 3.1%. China in 2011 the most populous country in the world with 1.33 billion people

You feel that China dominates world trade? You have seen nothing yet. A study by HSBC, China will become the world's largest exporter by 2020, before the United States. In 2025, the share of the Middle Kingdom in world trade (exports plus imports) reach 13%. "This is the only country that should see its share rise by more than three points over the period 2011-2025," said Alan Keir, director of the corporate market for the HSBC Group.The reason for this shift history: the close trade links with other emerging countries.

In recent years China's secure raw material supplies by investing in Latin America, Asia and Africa. It also provides consumer goods to the entire developing world, where demand is exploding. Between 2001 and 2010, for example, trade between China and Brazil has jumped 1000%! Now Brazil will be one, within fifteen years to come, of the most commercially vibrant. Its trade increase by 144% over the period 2011-2025. Vietnam, Indonesia, Egypt and India, where trade will grow even faster, also used as a springboard for Chinese companies.

Further decline in the share of France

This dynamism of trade in the emerging world will lower the share of industrial countries in world trade.This is the second lesson of the study of HSBC. Germany, for example, would see its share decline from 8.2% to 7.2% by 2025. But German companies working more with businesses in emerging Europe (Poland and Czech Republic) in order to remain competitive. North America, meanwhile, would be able to maintain a market share of 14.5% in 2025 (against 14.3% today) thanks to exports of pharmaceuticals to developing countries.

And France? Our country accounted for 3.9% of world trade at the end of 2010. This figure could fall to 3.1% in 2025. France has a strong industrial base, including aerospace, engines, pharmaceuticals and motor vehicles. But our trading partners in most European countries, where growth is relatively low.But the study by HSBC is clear: to Asia that the new trade corridors are created. The experts are betting on an increase of 120% of trade between France and India over the period 2011-2025. But this is hardly impressive in the light of developments in world trade (73% expected over the next 15 years). China, by comparison, has tentacles ten times faster.

Sanofi, the reconstruction of the research will be long

Sanofi is expanding its portfolio of medicines to be able to rise to valuation levels comparable to its peers, but it will take time, analysts say.

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 ".

Dexia would be willing to sell 20 billion euros of assets

Dexia Bank is ready to sell 20 billion euros of assets to restore its finances, Les Echos wrote in their Monday edition.

"The Franco-Belgian bank crystallizes the difficulties of his peers: its viability through the sale of assets too fast cash customers for nearly 20 billion euros," reads one in the business daily.

"Another lever is to externalize 80 billion of loans to local governments, but the modalities of this operation are still in limbo," the newspaper without elaborating.

A Dexia spokesman was unavailable for immediate comment this article.

Le Figaro wrote Saturday that Dexia, Caisse des Depots and Post Bank negotiated the creation of a new public to fund local government, an operation that would allow Dexia to reduce its balance sheet.

Requested by Reuters on Friday night, the three banks did not comment.

The governor of the Banque de France, Christian Noyer, said about Dexia that "the model faces a number of problems," in an interview with Journal du Dimanche.

"It must continue to restructure," he says.

The French authorities said Sunday that the system created in 2008 to help banks following the collapse of Lehman Brothers was always available on event "extraordinary".

However, they insisted that French banks, whose market value has shrunk in a few weeks, were strong and they did not need injections of public capital demanded by some stakeholders in the financial markets.

The uncertainty on Greece are plunging stock markets

Paris opened on Monday morning, down 2.30%. If no decision within the euro area on the second bailout of Greece announced a new black day. The trading floor in Frankfurt

Divisions within the euro area on the Greek case and the problems of sovereign debt have to plunge again European stock markets Monday morning at the opening, banking stocks are once again very abused. The Paris Bourse opened a decline of 2.31%, 2.26% Frankfurt, London, 1.35%, Milan and Madrid by 2.6% from 2.51%.

In Paris banking stocks were the front line, BNP Paribas lost shortly after opening more than 3% and Societe Generale more than 6%. Same as in Frankfurt where Deutsche Bank lost 4.58% to 23.95 euros while that of Commerzbank fell by 4.36% to 24.01 euros.

"If no decision within the Ecofin early advocates for a tough week in the financial markets," said Christian Parisot Monday, economist at Aurel-BGC. The results of a meeting of EU finance ministers who were to consider the Greek case and the situation in the euro zone where European leaders have shown once again divided and little progress on the second aid plan Greece had already begun to engage in part the modest revival of optimism late last week.

European shares had done so in a disorganized, earning 1.18% Frankfurt, London and Madrid 0.58% 0.61% while Paris fell by 0.48% and 0.65% in Milan. Caution was also put in Friday on the eve of the weekend on Wall Street, where the Dow had gained 0.66% and the Nasdaq 0.58% at closing.

Monday, while no major economic indicator is expected, investors will be especially attentive at 1400 GMT, the Speech from the President of the United States, Barack Obama, which should offer a new deficit of 3.000 billion.

Washington continues 17 banks due to subprime

The U.S. federal agency oversight of mortgage filed a complaint Friday against 17 major international financial institutions for a total loss of $ 41 billion in bonds linked to subprime.

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.

Wall Street opens up conservatively expected direction

Wall Street opened higher in cautious Tuesday, after a little less poor indicators of activity expected in China and the euro area.

Investors, who will be attentive to the numbers of new home sales in the U.S. in July (14:00 GMT, consensus: 310,000), should nevertheless be cautious when approaching the highly anticipated speech of the President of the Federal Reserve Ben Bernanke on Friday conference in Jackson Hole (Wyoming).

Ten minutes after the opening, the Dow Jones took 0.22% to 10,879.02 points, the S & P 500 0.07% to 1,124.65 and the Nasdaq Composite 0.36% to 2354.28.

"The rise of today is not sustainable.This is exactly what we saw yesterday and indicators from abroad are not sufficiently great to generate this kind of increase, "said Phil shortly before the opening Streibl, MF Global.

"The market place too many expectations in Jackson Hole, and even if Bernanke may say something that is likely to stabilize markets, the probability (new monetary stimulus) is almost zero," he said.

Meanwhile, investors found little reason to buy.The first estimate of the index of purchasing managers of HSBC for the industrial sector in China in August is slightly higher than the final figure for July, but still indicates a contraction in activity.

In the euro area, the service sector has paused in August after two years of growth, an initial estimate of the PMI sector emerging the lowest since September 2009.

The banking sector will be particularly guarded on Tuesday after UBS announced the elimination of nearly 3,500 items, 45% in the bank, to save about two billion francs (1.76 billion euros) by the end of 2013.

At the opening of Wall Street, UBS shares gained 0.76% in dollars, while Bank of America lost 5.76%, investors fear that the group needing to raise equity capital due to legal troubles in mortgage activity.

Goldman Sachs fell by 1.29%, a government source who reported that the bank had hired Reid Weingarten, a lawyer of reputation, what markets see as the harbinger of a tough legal battle over the role of the bank in the 2008-2009 financial crisis.

Starbucks boss wants to cut donations to political

The CEO of Starbucks garnered supporters after his call for a suspension of donating money to American politicians until an agreement "fair" be struck between Democrats and Republicans on the debt and the budget.

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."