France revises its ambitions down

The government has drawn a line under the "all TGV" and Pharaonic transportation policies, approving the orientations report Mobility 21 commission, presented Thursday, which favors the maintenance of the existing network, at the same time causing the discontent of number of "top elected officials."

The West and South branches of the high-speed line Rhine-Rhône or the Toulouse Narbone are pushed to a "distant horizon" after 2050. As the A26 motorway between Auxerre and Troyes or the A51 between Grenoble and Gap, among others.

The commission, headed by the deputy PS Calvados Philippe Duron, has lowered the ambitions of the state diagram contained in national transport infrastructure (Snit), height of 70 major projects for a budget of 245 billion euros over 25 years.

Transport Minister, Frédéric Cuvillier, welcomed this report puts an end to a "list Prévert (...) impossible to finance." He also welcomed the return of "some form of planning" and "the strategist state."

Prime Minister Jean-Marc Ayrault, approved this, and expects "to return to (his) account prior recommendations (the report)." It will unveil the July 9 great investment plan of government, which will have a transportation component.

The report leaves "all TGV" and major highway projects which France was accustomed (four high-speed lines are now under construction, between Tours and Bordeaux, Le Mans and Rennes, Metz and Strasbourg and bypassing Nimes and Montpellier). It focuses on priority the maintenance of the existing network.

Expected to light up on the Paris Stock Market

After a rebound of 3.6% in two days, the Paris Stock Market is expected to start the session slightly higher thanks to the easing of concerns about the reduction of support measures by the Fed and the risk of credit crunch China. Asian markets were buoyant this morning while rates in the Chinese money market continue to relax after their surge last week. The Nikkei 225 for Tokyo Stock Exchange index has ended with a gain of 2.96%, while Hong Kong gaining 1.15% and Shanghai hovering around the balance a little more than an hour of fence. Always in search of information about the health of the U.S. economy, the market monitor this afternoon Statistical expenses and revenues of U.S. households, considered one of the pillars of overseas growth. Also three Fed officials must intervene on Thursday. The financial sector should be monitored at the European Council in Brussels will focus particularly on the banking union. Finally, note that Italy is preparing to award up to 5 billion euros of bonds at 5 and 10 years. About 30 minutes of opening, the July futures contract on the CAC 40 index gained 4.5 points to 3726.

On the macroeconomic front, INSEE present before opening the results of the economic survey of French households for the month of June. They will be followed at 10:00 by the unemployment figures for the same month in Germany at 10:30 by the latest estimate of GDP in the UK in the first quarter, then by 11:00 the index of business climate, economic sentiment and confidence consumers in the euro area in June. Three U.S. statistics enliven the afternoon: the weekly jobless claims and the income and expenditure of households of May at 14:30, then the promises of home sales last month at 16.00.

On the values ​​front, BNP Paribas, Credit Agricole and Societe Generale will take the center stage after reached between the finance ministers of the European Union (EU) on the issue of loss-sharing agreement in the event of bank failure . The agreement will enter into force by 2018, includes a new rule that EU countries can impose losses on bondholders and depositors whose accounts exceed 100,000 euros in case of difficulties of establishment.

Vicat plans to acquire a majority stake in the Indian Jayajothi Sree Cement, a subsidiary of the holding company Shriram, valued at about $ 250 million, reports the Times of India, citing sources familiar with the matter.

Vinci and Predica insurance subsidiary of Crédit Agricole, are candidates to buy the block of 9.5% Aéroports de Paris sold by the state and the strategic investment fund, wrote agefi. The offers have to be filed Friday morning, the newspaper online.

Sanofi. The new project for the reorganization of R & D group will be presented to the Central Works Council on Tuesday plans 270 job cuts, including 63 in Toulouse, Les Echos. The initial project included 900 starts.

Among the analysts' reports, JPMorgan downgraded Solvay "neutral" from "underweight" and lowered its price target on Arkema from 72 to 68 euros. SG Cross Asset Research lowered its target on Wendel from 98 to 92 euros. Finally, HSBC cut its target price to Kering from 220 to 220 euros.

U.S. Stocks Today: The Dow Jones gained 0.73%, the Nasdaq is 0.83%

The New York Stock Exchange finished up 0.73% Monday, the Dow Jones Industrial winning 30 109.90 15,180.08 points.

The S & P-500, wider, took 12.34 points, or 0.76%, to 1639.07. The Nasdaq Composite Index was up 28.58 point his side (0.83%) to 3452.13.

The paradox of monetary injections: when the U.S. economy gets better, the stock markets fear a correction

The Tokyo Stock Exchange has just landed (-5.15%) for the second time in a week and volatility is back on the equity markets. Investors and traders will have to learn to take advantage of these erratic movements. Above all, they will have to accommodate a scheduled dose reduction of liquidity injected by the U.S. Federal Reserve


The market situation is also more paradoxical: while the U.S. economy is regaining its full breath (consumer confidence at the highest in five years, expected improvement in the housing market by the end of the year), that companies perform well, the high points of U.S. stock indices are threatened by the expected withdrawal of the ultra-loose monetary policy of the Fed.


In the wake of Wall Street, it's all world stock markets fearing a mechanical correction inconsistent with the U.S. economic sense. To believe that weaning monetary measures (type "artificial") will be equally difficult to understand for investors, that was decisive quantitative easing in the market rally. Why such a movement of aversion? Because a monetary tightening, even progressive in the coming quarters, between rate hikes and cuts in purchases of fixed income promote a legitimate raising borrowing rates and reduce the attractiveness of that action. With a little more profitable sovereign bond yields, many investors would return to this asset class at the expense of equity markets, which until now no longer suffer from any competition in terms of performance. Moreover, even before any formal announcement on the "timing" of monetary tightening, the anticipation of such a scenario has led to the rise of the U.S. 10-year yields, now more than 2.1%, the highest point in more year.


In this uncertain environment, investors now tend to be rather "sellers" on the U.S. indices, in favor of Japanese indices (Nikkei) and European (CAC 40 and IBEX). Regarding the first, the early termination of higher incentive to profit taking. On the latter, on the contrary, the consolidation already visible in recent sessions that encourages some shopping cheap.

Another notable movement, a renewed interest in gold, which refranchit the symbolic threshold of 1 400 USD. The safe haven it find patterns in inflation rising U.S. interest rates combined with reflux hypothetical equity assets?