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The first five Spanish banks will have provisioned an additional EUR 15 billion to cover the risk associated with their loans, putting further pressure on their finances while Spain tries to restore confidence in its banking sector.

Friday, the Spanish government has imposed on its banks to provision 30 billion euros, in addition to the required 54 billion in February, to cover both their claims to outperform their loans risk.

The move comes as part of a reform which is the fourth bank bailout in four years of Spanish banks. These have heavy losses with the collapse of the housing market in 2008, raising fears about a possible aid to Spain.

The 30 billion euros of additional provisions weigh heavily on banks as investors worried about where the institutions will be able to find the money and if this will be sufficient.

The Spanish government said that the state provide public assistance limited to 15 billion euros, and only in the form of loans convertible into shares, the banks which lack capital.

At the Madrid Stock Exchange, banking reform has not convinced investors. The Ibex 35 fell by 2.26% at 12:30 GMT, weighed down by banking stocks. Bankia, which the state took control last week, fell by 9.42%, 5.21% of Banco Popular, BBVA 3.63%, 2.98% of Banco Santander and of Bankinter 2.31%.

The yield spread (spread) between the Spanish 10-year bonds and German bunds, which serves as a refuge, for its part, reached 485 basis points, the highest since the introduction of the euro.

PROVISIONS FOR EACH BANK

BBVA, Spain's second largest bank, said Monday it would increase supplies of some 1.8 billion euros to comply with new rules on capital announced Friday by the Government .

The new provisions will be reflected in the annual accounts and will have a net impact of around EUR 1.3 billion, the company said. 

For its part, Santander, the first credit institution in the country, will have to register in its books 2.7 billion euros in provisions, in addition to 2.3 billion euros announced in February.

Banco Popular said it would set aside 1.7 billion euros in provisions, but added that he would not need public funds to achieve this. The bank nevertheless said it would take two quarters to comply with new requirements.

Banco Popular will merge with its smaller rival Banco Pastor, which amounts to 2.3 billion euros in total amount of reserves required.

For its part, La Caixa, which is currently buying Banca Civica, will have to set aside 3.4 billion euros.

For most Spanish banks in difficulty as Bankia, the fourth largest bank in Spain following the merger of several small savings, the new provisions will constitute an additional burden. The parent of Bankia, BFA, said she needed $ 4.8 billion to meet government requirements.

Although these banks said they did not need assistance from the State to comply with new capital requirements, the need for additional reserves could change this.

Already, the increasing problems of Spanish banks and government interventions, including the safety of Bankia, have revived the wrath of public opinion in Spain, a year after the outbreak the movement of "Indignant".

Tens of thousands of Spaniards took to the streets and plan to stay until at least Tuesday. The demonstrators had planned on Monday to close their accounts at Bankia to protest against the rescue of the bank.

European shares ended sharply higher Tuesday, boosted by a Spanish award whose success is due to a sharp rise in interest rates and by the unexpected rise of the confidence index of German investors.

Paris closed up 2.72% to 3292.51 points after having crossed a zone of resistance around 3,260 points.

London gained 1.78%, Frankfurt and Madrid 2.65% 2.28%. The Euro Stoxx 50 index of large values ​​of the euro area took 2.86%.

The performance of the German government bond (Bund) and 10 years stood at 1.76%. The rate of the 10-year Italian BTP also remained stable at 5.48%, and that of the Spanish equivalent of eased 2 basis points to 5.9%.

The euro was steady at the end of the afternoon against the dollar, around 1.3130.

China doubled the maximum fluctuation of the yuan, to 1%. The measure was hailed as a step towards greater liberalization of the exchange rate of Chinese currency. At the opening Monday, choinoise currency was down against the dollar. A 100-yuan face a $ 100 bill.

The Chinese currency was a downward trend against the dollar on Monday for the reopening of the foreign exchange market after the announcement over the weekend to double the range for the yuan against the greenback. People's Bank of China (PBOC) authorized as of Monday a maximum fluctuation of 1%, down as well as up, around a central rate fixed by day, against 0.5% previously. The measure was hailed as a step towards greater liberalization of the exchange rate of the Chinese currency, which gives the low level by major trading partners of China an unfair competitive advantage to its products.

By late morning Monday, the Chinese currency was trading at 6.3145 yuan per dollar, while the central rate was set early in the day at 6.2960 yuan to one greenback. This downward trend reflects investors' fears fueled by the publication Friday of growth below expectations in the first quarter, to 8.1% annual rate. "The Beijing consensus is that the margin of appreciation (the yuan) seems quite limited," according to Lu Ting, an economist at Bank of America – Merrill Lynch. This is partly due to the slowdown in export growth as well as a small current account surplus to 2.8% for 2011, which make "the external pressure on China for an assessment … has dissipated, "said the analyst.

"There was recently a series of reforms affecting the yuan and the financial sector at large, which all go in the direction of greater liberalization," noted for his part, Mark Williams, Asia economist at Capital Economics . "The enlargement provides the basis for a system of exchange rates more volatile and more based on the market in the future", according to this analyst. "The signal sent by China, it may be that the unilateral (Chinese currency) has expired," said his side to AFP Sun Junwei, an analyst at HSBC in Beijing. In March, Premier Wen Jiabao had estimated that the level of the Chinese currency was "close to balance".

Key values ​​to follow Tuesday on Wall Street.

* GOOGLE. The Android mobile operating system Google has been the most widely used in China last year, far ahead of that of Apple, according to the firm Analysys.

In late December, controlled 68.4% of the Android market in number of smartphones sold, against 33.6% at the end of first quarter 2011. The market share of Apple rose more modestly, from 4.1% to 5.7%.

* Chevron discovered a leak in the Roncador oil field, off the Brazilian coast, 500 meters from the deposit Frade, already responsible for a tidal Black in November. The leak occurs at the ocean floor and no trace is visible on the surface of the water, say the Brazilian authorities.

Leaks were detected in November and March to deposit Frade, which led to it suspend the activity and triggered lawsuits against Chevron and its contractor Transocean .

* ALCOA. The aluminum giant, often presented as a barometer of the U.S. economy, starts the earnings season after the close, with its e financial statements for the quarter January to March.

The budget deficit of the French state stood at 24.2 billion euros in February against 28 billion a year earlier, according to data released Friday by the Budget Ministry.

Expenses (general budget and levies on revenue) reached 63.6 billion in February against 57 billion a year earlier.

Revenues (net of refunds and rebates) totaled 45.4 billion euros against 40.2 billion a year earlier. 

"The positive trend (from February 2011-Ed) is mainly in respect of expenses, for a faster pace of expenditure recognition, and respect revenues, for the record, in January 2012, an exceptional product for the allocation of authorizations to use radio frequencies, "the ministry said in a statement.

"The net tax revenues come up from one year to another," he says. "This positive development is consistent with the forecasts used in the last supplementary budget."

As for spending, their progress "is consistent with the prediction of the supplementary budget for 2012".

The government deficit is the main component of the public deficit, which also includes financial statements and those of local communities.

In 2011, the deficit has been 5.2% according to the first estimate published by INSEE.

France has committed to reducing the public deficit to 4.5% of GDP in late 2012 to return in 2013 to the EU limit of 3%. The government recently revised its 4.4% target for this year.

The Socialist candidate for president, Francois Hollande, currently leading in the polls, has also committed to reducing the deficit to 3% in 2013, after s 4.5% in late 2012. He plans to balance the public accounts in 2017.

The International Monetary Fund (IMF) said Wednesday the payment of 5.17 billion euros in Portugal under the assistance program recovery of public finances.

The IMF cites recent progress in budget reforms including the restructuring of public sector enterprises.

The Fund and the European Union have set up an aid to Portugal over three years totaling 78 billion euros.

The bailout and the austerity measures that accompany it are beginning to bear fruit: Wednesday, Portugal was able to borrow on the market 18 months, the maximum term Long since his ouster issued the bond market in March 2011. 

According to Nemat Shafik, Deputy Director of the IMF, Portugal will ensure a vigorous implementation of the program to regain market confidence. She adds that the deficit target for 2012 should be achieved.

"The implementation of policies under the program has progressed well and the first signs that the economic adjustment required is taking place," said Nemat Shafik.

The IMF has established an Extended Fund Facility (EFF) for Portugal, which allows faster access to credit. The fund said to have distributed 18.56 billion in this context.

Poweo released Friday a net loss of 64.3 million euros for 2011 – divided by more than two compared to 2010 – due to poor performance of its generation assets sold in early 2011.

The alternative supplier of gas and electricity French, being merged with Direct Energy, has recorded sales of 503 million euros (-28%) and a gross margin of 47, 6 million (-30.1%).

However Poweo reported net earnings of 6.3 million euros in its new scope, which includes its core activities in the supply and optimizing energy and a gross operating income of 12.8 million and a turnover of 405 million. 

With the implementation of the Law on the reorganization of the electricity market, which gives it access to nuclear EDF, Poweo also stresses that its gross margin s is improved but without covering all of its operating costs.

Due to lack of capabilities to compete with the public electrician, had to sell Poweo early 2011 its means of power generation to its former shareholder of re Verbund conference to provide the resources necessary for the continuity of its operations. 

The group then announced in July the purchase by Direct Energy of the 46% stake held by Verbund, prior to the merger of two French operators, whose boards of directors come from approve in principle which will create a new group of more than one million residential and business customers.

A disappointing statistic relating to properties in the United States a pretext to the consolidation of stock markets Wednesday. European shares ended little changed in exchanges provided little in the wake of Wall Street at the same time.

In Paris the CAC 40 finished with a decline of 0.1% to 3,527.37 points. In Europe, the Stoxx 600 index of European banking achieves the worst performance, with a 0.9% decline, due to the unexpected drop in home sales in the old United States.

Home sales in the former fell in February in the U.S. and inventories of unsold homes increased, according to data released Wednesday by the National Federation of Estate Agents ( NAR).

After two sessions of declines, investors hoped that this statistic would be in line for a confirmation of the recovery in the United States.

According to observers, after the pause in Wall Street and European markets, markets will start rising. 

At the macroeconomic level, the British government announced a lower top rate of income tax and new taxes on large estates by unveiling a budget expected to provide better re ; partition of the burden of austerity while strengthening the announced reduction in the deficit.

The output growth of French chemistry to slow to 1.8% by volume in 2012 after the 5.9% achieved in 2011, due to the economic downturn and rising cost of raw materials and energy, told Reuters the president of the Union of Industries (UIC), Olivier Homolle.

The annual report of the UIC, released Tuesday, reveals that the performance of France were better than that of the entire European Union, in which the growth of the n 'was only 1.1% last year and should not exceed 1.5% in 2012.

Last November, the UIC had raised its growth forecast to 4.5% in 2011.

In total, the turnover of the industry grew 13% last year to 86.7 billion euros. 

"We see 2012 on a relatively positive but with a number of uncertainties because the world is moving at full speed," said Olivier Homolle in an interview with Reuters, while noting that the level of growth 1.8% expected this year is "very respectable".

He noted that the worsening economic climate in Europe and the slowdown in the entire industry in France had gradually affected the chemical sector, whose stocks have become cumbersome from the second quarter. 

GOOD CONDUCT OF PERFUME AND COSMETICS

The good news, Olivier Homolle continued, "is that there is no reason that Asia does not continue to draw quite significantly the global economy and that since beginning of the year, the U.S. showed signs of significant growth that have a good impact on the overall economy. "

With 5.9% growth in 2011, the production of the French chemical industry came back last year in volume to levels before the financial crisis, it had been drop 1.1% in 2008 and 9.5% in 2009, its worst decline in 20 years.

Last year it was mainly driven by the chemistry for the manufacture of cosmetics, perfumes, and to a lesser extent, cleaning products. 

For export, the demand of foreign markets, especially emerging, was supported in 2011, resulting in increased sales by 9.8% in value. But due to a high level of imports (12.4%), the balance of the sector fell to 4.4 billion euros, against 5.0 billion in 2010. …….

In 2012, export growth should return close to the average level of 2% recorded between 1990 and 2011. European growth is seen at 1.5%.

While oil prices seem set to continue the current high levels, above 120 dollars a barrel for Brent, UIC has urged the French government has become more open to development shale gas.

"The fact that the debate be closed is very worrying," said Olivier Homolle, who is also director of the French division of German group BASF.

"The goal is first to be as competitive as possible. Should at least permit the debate to take place, that we can get an education," said ; Olivier Homolle.

The Italian economy contracted by 0.7% in the fourth quarter of 2011 compared to the third, according to final data issued Monday, confirming that the third power economy in the euro area has entered a recession expected to continue well into 2012.

According to figures from ISTAT, the National Institute of Statistics, gross domestic product (GDP) fell by 0.4% compared to fourth quarter 2010, against an initial estimate of -0 , 5%.

Domestic demand has decreased over the period, as investment and inventories. Only exports contributed positively to economic activity.

In the third quarter, the decline in GDP from one quarter to another was confirmed at -0.2%. Over one year the increase was 0.4% against 0.3% in the first estimate.

Two consecutive declines in GDP is the technical definition of a recession.

Over the whole of 2011, Italian GDP grew by 0.5% against 1.8% in 2010.

For the year that has just begun, technocrat government of Mario Monti expects a decline of 0.4% while the Bank of Italy expects a contraction of 1.5%.