World Economy

May 9, 2008

Ebranlé by bad news from the banking sector,

Ebranlé by bad news from the banking sector, the fall of Sanofi-Aventis and the soaring oil prices, the Cac 40 experienced a very difficult meeting. At the close, the index of Paris cedes 1.88% to 4.960,56 points.

A picture of the main squares of the Old Continent, the Cac 40 closes down 1.88% at 4.960,56 points, in a transaction volume of 5.2 billion euros over the index values. - At the bottom of the meeting, the Paris Bourse has yielded 2.58%. In London, the Footsie yields 1.05% to 6,204 points, and Frankfurt, the Dax abandons 0.97% to 7,003 points. A downward trend which is also reflected in the USA, where the Dow Jones and Nasdaq fiche_bourse NASDAQ, Paris fell respectively by 0.87% and 0.41% to 12,753 points and 2,441 points, 17 to 55 hours.

At the root of this correction, the accumulation of bad news on the financial sector, the outbreak of black gold and the rise of the euro against the U.S. currency. Regarding financial values, Dresdner, a subsidiary of Allianz, AIG and American have both unveiled accounts below expectations. The first is facing an operating loss of 453 million euros in the first quarter, against a deficit of 398 million expected by analysts. As to the U.S. insurer AIG, he accused the largest loss in its history in the first quarter, and simultaneously announced its intention to raise funds, amounting to 12.5 billion, to strengthen its funds own. In addition, the first U.S. bank Citigroup has announced that it planned to sell for $ 400 billion (258 billion euros) to non-strategic assets in a vast operation aimed at refocusing improve its financial health.

Other factors affecting the trend, soaring oil prices. The barrel of crude has repeatedly burst of new ceilings today, crossing the threshold of 125 dollars and that of 126 dollars this afternoon to 126.25 dollars. At the close in Paris, a barrel of oil is trading $ 124.78. The sabotage on installations in Nigeria and renewed tensions between the West and Iran are behind this mad rush for black gold. Finally on the foreign exchange market, the euro stood at 1.5451 dollar.

On the front of values, financial severely punished according to the quarterly accounts below the expectations of Dresdner, a subsidiary of Allianz, and the American AIG. Morgan Stanley is also risen to "underweight" on HSBC. Competitive lost 2.03% to 72.60 euros, Axa 1.87% to 23.57 euros, BNP Paribas 2.10% to 67.44 euros and Credit Agricole 1.81% to 21.12 points.

Sanofi-Aventis fall of 5.84% to 47.50 euros. The Swiss group Schweizerhall has filed an application for marketing a generic Plavix in Germany and Luxembourg, Sanofi-Aventis organise his defence.

Finally EDF closed up 0.29% to 66.90 euros. According to the news agency Reuters quoting sources close to the case, the electrician french has submitted its own bid on the participation of 35% of the British state with a capital of British Energy at a price "substantially lower" 700 pence per share.

by erectusplus at 10:08 AM |