Monthly Archives: September 2010

EU Commission wants to tighten the Stability and Growth Pact

EU-Fahnen1_EC BRUSSELS ( Dow Jones) – The European Commission has unveiled on Wednesday a package of laws strengthening the Stability and Growth Pact. to Intended be a tougher oversight of the fiscal policies , but also the economic policies and structural reforms are more closely monitored in future. (Photo : EU)

In addition, new penalties for states are provided, which do not comply with the provisions of the Covenant. The sentences are to automatically access and can only be tilted by a qualified majority of the euro countries.
The EU Commission made in this regard six proposals . This required, however, by the EU Parliament and the European Council to be approved before they take effect.

The legislative proposals of the European Commission aimed to identify macroeconomic imbalances in the EU and the euro area and effectively to tackle . For the Member States of the euro area were the changes associated with more severe enforcement mechanisms and limits the discretion in the imposition of sanctions, says the press release.
This will include an update of the preventive arm of the Stability and Growth Pact is planned. The monitoring of public finances should be based on the new approach of " prudent fiscal policy ", into the good times to form the for bad times necessary cushion , they say. The EU Commission will issue warnings when a euro area government differs significantly from the prudent fiscal policies.
In the future euro countries lodged at the opening of an excessive deficit procedure as an interest-bearing deposit of 0.2% of gross domestic product ( GDP). These contributions are converted into a fine if the Commission’s recommendations for correcting the deficit are not followed. The sanctions are automatic and can be overridden only by a qualified majority of the European Council. So far, an explicit consent was needed.
In addition, intends to take action the EU Commission if the total debt exceeds the EU limit of 60 % of GDP. Member States should be required to their debt reduce to " quickly enough ". These are defined as a reduction of one-twentieth of the difference between the 60 % threshold and the actual debt in the past three years.
With sustained "excessive imbalances " – ie, the repeated infringement of the deficit rules or chronic surpluses – also an annual penalty must of 0.1% of GDP be paid. The Commission wanted to but in advance proposals for the prevention and correction issue of macroeconomic imbalances . To this end , various economic indicators to be assessed regularly . Member States must provide appropriate an action plan to correct the imbalances.
The EU Commission also issued from a new directive the requirements of the budgetary framework of the Member States. The minimum requirements are for all the elements that make for the fiscal control at the national level, the basis , such as accounting systems , statistics, forecasting methods and budgetary provisions . Reason for the regulation to be the decentralized nature of fiscal policy.

-By Katrin Haertel , Dow Jones Newswires , +49 ( 0) 69 29725 300 @
DJG / kth / apo / sh

European stock markets in the noon negative – pressure on banks to keep

FRANKFURT (Dow Jones) – somewhat easier to are European stock markets show on Wednesday afternoon , whatever tends to cost requirements from the U.S. and East Asia. based in Japan, slightly above expectations failed Tankan business report and in China is calculated by HSBC Purchasing Managers Index of manufacturing.

"This gives hope to the official index tomorrow , "said one trader. The Euro Stoxx 50 lost to 12.36 clock 0.4% or 12 to 2763 points, the Stoxx 50 is by 0.7 % or 17 to 2499 meters.
In addition to the ISM from the United States on Friday was the official purchasing managers’ index of China ‘s most important business date of the week , they say. Until their publications are likely to market participants to hold back .
Banks under further pressure
As before is shown in relation to sectors in Europe , no uniform trend. With a drop of 1.3 % in the banking index, is the weakness continued in the industry. For exercise statements make of Credit Suisse and the prestigious U.S. banking analyst Meredith Whitney and the capital of Deutsche Bank. Whitney settled in the U.S. banks with a difficult fourth quarter. Among other things, Societe Generale falling 2.1% , RBS 1.6% , HSBC up 1.9 % and BNP Paribas to 1.7%.
In an interview with CNBC , said Whitney, they expect safe with lay-offs on Wall Street in the first quarter of 2011 and expect a volume decline in equity trading in the third quarter of at least 25 %.
As an indication in that direction cost dealer statements of Credit Suisse at a streaky third quarter in investment banking. However, CEO Brady Dougan pointed at an investor conference point to the high activity in mergers and acquisitions business. The shares are listed , therefore, 0.1% fixed .
German bank fall , however, to a further 3.2 % to 38.98 EUR . Because of the ongoing increases which are also sales very high , says the trade.
HP- view helps chip stocks
Technology – values record 0.1% lighter. The increase in the outlook of the U.S. computer maker Hewlett – Packard (HP ) will be in the trade considered positively for the European chip manufacturers. The 2011er sales expectations , the company lies above the market expectation. In Europe, ASML increased by 1.8 %, STMicro by 0.3 % and Infineon to 0.5%.
Hennes & Mauritz charged the retail sector
The sector index the retail value losing after disappointing statements from Hennes & Mauritz 1.4%. The Swedish low-cost clothing chain was disappointed with the quarterly figures, the high expectations. While sales seasoned of Stoxx 50 newcomer , a burden on lower margin of the result , they say. The profit increase of 23% was still expected higher. Due to delays in the construction of new shopping centers, H & M in the current year will also open fewer new stores than originally planned. The stock lost 5.8% to 243.90 SEK . Metro will lose 1 %, Carrefour 1.1% and Ahold 0.6%.
BP stand a positive out with 2.2% price increase to 414 p. As a " confidence "in the trade , the high demand from investors site for the newly launched bonds of BP is rated . BP can now refocus on their business and displace the oil spill in the Gulf of Mexico. Almost all oil values quoted in the red. The sector gaining 0.1%.

DJG / gos / sh

ECB: shock susceptibility of EU banks has declined

EZB - Foto_Koch_2010-07-11 056 FRANKFURT (Dow Jones) – The shock sensitivity of banks in the EU has been estimated by the European Central Bank ( ECB) is further reduced, due largely to the slightly improved profit situation. (Photo : Koch)

As the ECB wrote in a published Wednesday report on the stability of the banking sector , have this, not only increased profits but also increases in core capital as well – especially banks – a reduction of lending contributed . The report is based on data from the national central banks of the EU in 2009 and also contains information on major banks for the first half of 2010.
However, the ECB notes in its report that the performance of banks over Europe spread turned out quite differently had and would have the banks in some countries the recession reduced profits or even losses . " Despite the recent improvement in the macroeconomic environment in many EU countries, it still risks to financial stability , "says the ECB.
Regarding the earnings prospects of banks , the ECB calls for caution . "The overall profitability should continue due to high loan losses , a persistent pressure from the financial markets and regulatory authorities and the market expectation of higher funding costs remain in the short to medium term weak, " says the report. Above all, are likely the interest rate spreads to a flattening yield curve suffer , which applies especially for banks that would have strengthened in recent times is involved in "yield curve carry trades ".
Concerned , the ECB said on the dependence of some banks by the central bank refinancing, or other forms of credit support. "The problem of banks that remain dependent on support from governments or central banks , must be addressed comprehensively and decisively , " she demanded. Overall, have improved the funding conditions for banks with perceptions of the ECB following the increased national debt crisis in early 2010. " However, the conditions in the short-and long -term funding markets in August, still far from normality , " it is limiting.
Last year at Europe’s banks , especially net interest and trading revenues contributed to profit growth, while at the same time , however, increased also depreciation and provisions for losses . On the other hand, reduced the institutions are operating costs. The ECB expects that the increase in nonperforming loans in 2010 will slow down in many parts of the EU.
In the major banks, which are already covered figures by mid-2010 , the positive trend of the previous year has continued. Here the loss provisions were reduced considerably. The capital of major banks has improved in the first half of the year . The higher capital ratios were based on findings of the ECB in these banks at least 2009, with a reduction in the risk- weighted assets in context. Clearly this trend is also in the credit conditions that are strictly according to the ECB in particular for small and medium-sized enterprises.

– By Hans Bentzien , Dow Jones Newswires , +49 ( 0) 69 29725 300
Hans.Bentzien @
DJG / res / apo / sh

XETRA-MITTAG/Knapp claims – banks under pressure

2010-09-29_mittag FRANKFURT (Dow Jones) – The prices on the German stock market tend noon on Wednesday claimed scarce. Against 12.55 clock BST loses the DAX 0.2% or 15 points to 6261 points. At the start of trading recorded , the index a small increase , fell then back , however, and acted in the day’s low 0.8% lighter at 6223 points. (Photo : German Stock Exchange)

" There is probably as in the past few weeks, the decisive impetus for a breakout up or down , as will be discussed in the broker comments for weeks , "said one trader.
" drop The volume and the volatility increases , "says another dealer . Obviously , investors reluctant to take on the now are increasingly gone on for three weeks of sideways movement at a high level of returns from the business. short and medium term interpret the technical analysis points to an extension of the suspended game.
Among the losers are on Wednesday afternoon the banks . For the German bank is about 2.6% down to 39.17 EUR . For a dealer to refer to the current capital increase and the large supply of shares. It should give negative comments to the banking sector and the concern about the consequences of increasing bank regulation reflected in the courses. Commerzbank fall 1.3% to 6.01 EUR .
RWE lost 1.3% to 49.59 EUR . The analysts at UBS have started their coverage of RWE again , however, two steps lower at "Sell" . The target price has cut the bank to 47 of before 68 EUR .
On the winning side, however, BMW displayed price premiums by 1.5 % to 51.46 EUR . The Chief Executive Officer Norbert Reithofer said the FAZ, which be would the savings target of 6 billion, EUR surpassing 2012. Daimler set 0.7% to goes to 46.53 EUR for MAN is 1.3% up to 81.83 EUR . Among the winners also are Fresenius, down the 2.1 % to 60.42 EUR .
Infineon rise by 0.9 % to 4.91 EUR . Dealers talk about a good mood for chip manufacturers in the face of a positive ranked outlook, the U.S. computer company Hewlett -Packard. also good Specifications are for technology stocks of the Asian exchanges.
In the second row of the German stock market rise MTU Aero Engines by 1.8 % to 43.12 EUR after Morgan Stanley its target price has raised for the stock by 5 EUR to 50 EUR . TUI expand the gains of Tuesday by a further 5 % to 9.40 EUR .
The TecDAX , the shares of Q -Cells’ 16.2% act easier at 4.13 EUR . The stock is to the right of option shares -adjusted from a capital increase .

DJG / mgo / bek / cln / sh

Federal Network Agency has electricity and gas prices are too high

Energie_080601_002_(c) Anders BERLIN (Dow Jones) – German electricity and gas prices for household customers are from the perspective of the Federal Network Agency on high. "We still have to do with a lack of competition, " said the President of the Federal Network Agency, Matthias Kurth, on Wednesday at the Euro Forum -regulation Conference in Berlin . (Photo : Anders)

Thus, the private consumers by the dramatic fall in prices for natural gas on the spot markets have not noticed yet , said the authorities President.
Even the ever -climbing domestic customers prices at the current were appropriate , given the sharp drop in do not wholesale prices , Kurth said. Although had to do the industry with increasing taxes and levies such as the levy for the connection of renewable energies ( EEG surcharge ). But that might not be the reason for the level of tariff increases. "The increasing EEG surcharge does not justify the price of electricity , "said the authorities chief .
Furthermore, taking the information policy of the utility to be desired still . For example, consumers would be in the letter from the power company informed on the reasons for higher prices. " has The lack of transparency information behavior changed little , "stated Kurth.
– By Klaus Hinkel, Dow Jones Newswires , +49 ( 0) 69-29725 423, @
DJG / hil / apo / sh