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European shares fro up slightly at mid-session Friday, good earnings reports of companies that are somewhat forgotten the downgrade of Spain by S & P the day before.

Caution is especially appropriate that investors expect this afternoon the publication of the first estimate of U.S. GDP in the first quarter and the confidence index of Michigan on consumer sentiment.

In Paris the CAC 40 rose 0.29% to 3238.62 points. In Frankfurt, the Dax gained 0.08% and London, the FTSE is 0.31%. The pan-European index Stoxx 50 was stable (0.04%).

The construction industry supports the European equity markets, the index Stoxx600 of construction and materials climbing 1.7%. The fund is boosted by the good results of Vinci, whose title climbed 3.7%.

The cost of insuring against a default of Spain was up after a deterioration of the country's rating by S & P. CDS (credit default swaps) and five years on Spain took 12 basis points to 480.

Sign of tensions in the bond market of the peripheral countries of the euro area, the Italian Treasury has had to endure, during a broadcast of € 6 billion of sovereign debt, the expensive ts funding for bonds to five and 10 years at the highest since January.

Down against the dollar after the announcement of the degradation of Spain, the euro resumed in mid-day, to 1.3179 dollar.

The yen, it weakened against the dollar and the euro after the decision of the Bank of Japan to increase its program of asset purchases to support the economy.

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McDonald's has published quarterly results rise, driven by strong sales in its restaurants in the United States.

Net income for the world's largest fast food reached $ 1.27 billion, or $ 1.23 per share, in the first quarter against $ 1.21 billion, or $ 1.15 per share, a year earlier.

Sales at restaurants open at least 13 months rose 7.3%, while analysts polled by Consensus Metrix had forecast 6.7%.

At the New York Stock Exchange, McDonald's action progressed by 1.8% in pre-market trading.

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".

China may relax regulations on foreign investment in the private sector, announced Tuesday the central bank governor, less than a week after green light given by the Government in a pilot project of financial reform.

The State Council (government) of China announced last week that it planned to allow direct investment abroad by residents of the coastal city of Wenzhou, st in the country, as part of an experimental project. This was seen as an important step towards liberalization of transactions.

The central bank governor, Zhou Xiaochuan, speaking at the Boao Forum for Asia 2012, on the island of Hainan, said China would encourage capital outflows, which help reduce the imbalances caused by net capital inflows.

"There could be a further de-regulation to give businesses and residents easier for Chinese investment abroad," said Zhou Xiaochuan.

He did not say whether the reforms would be limited to Wenzhou or extended to other areas. Wenzhou, located in Zhejiang Province, is known throughout China as a platform and an entrepreneurial place parallel loans.

Many private Chinese companies are forced to turn to the gray market for loans because they can access loans at official rates, which will first state banks to state enterprises.

On the unofficial market of credit, interest rates can reach 100% annualized. 

The idea of ​​an area of ​​financial reform emerged in late 2011 after newspaper articles on entrepreneurs from Wenzhou who would be gone underground or s' had committed suicide after being found unable to repay loans at high rates contracted outside official channels.

People's Bank of China considered this market to 2400 billion yuan (285 billion euros) in late March 2010, representing 5.6% of total loans market in China.

Hedge funds refused to make the Greek debt they hold to the exchange transaction, threatening to ask the courts if the offer does not improve liorée.

These funds seek to meet a minority sufficient to block the process, the risk of derailing the debt swap and cornered Greece to bankruptcy.

Greek debt holders should tender their shares before Thursday at 20:00 GMT. In the opinion of Greek officials, the operation is moving in the right direction, even though banks and as well as European politicians have expressed their uncertainties.

"I was warned that many investors think carefully about the options available to them, including that of the judicial path," said Steven Friel Brown Rudnick, a firm which advises investors on possible legal strategies in Greece.

Hedge funds prefer debt securities that are not of Greek law, harder eligible for restricted devices developed by Athens.

McClutchen Bingham, another law firm, said Monday that he advised the holders of 650 million Swiss francs of Greek debt. Investors holding significant amounts of Greek debt came together to find "all the answers to their concerns and protect the rights of holders," according to the firm.

Hedge funds hold more than a quarter of Greece's debt denominated in Swiss francs and 450 million euros of bonds maturing and it might be enough to prevent the Greek government to impose on private creditors to agree to take their losses.

They hope that the government prefers to reach a settlement before May instead of defaulting despite warnings from the Greek politicians who warned that n ' there would be no new offer. 

Failing agreement, the funds could go on the judicial front, even then appeal to the European Court of Human Rights, alleging violations of property law.

This option could however be lengthy and costly for investors.

Vinci said Thursday that its subsidiary had won five contracts Eurovia maintenance of road infrastructure in the UK for a cumulative value exceeding 1.7 billion euros.

The contracts, whose initial terms ranging between five and ten years, covering all aspects of road maintenance, such as routine maintenance, inspection and repair works of Art, emergency response, snow removal and street lighting, Vinci said in a statement.

Two of these contracts were won through a joint venture with the American consulting firm Jacobs.

In the shadow of the Greek psychodrama, it was necessary progress on the major issues of international economic cooperation. Review of some successes and many failures G20 Cannes. Nicolas Sarkozy has ended with a G20 Cannes press conference, November 4, 2011. REUTERS / Yves Herman (FRANCE – Tags: POLITICS BUSINESS)

He wanted to make a summit unforgettable symbol of his power. But the setbacks in Europe, and the announcement of the referendum at the last minute Greek – have been abandoned, the chairman of the G20 in Cannes, Nicolas Sarkozy, in great difficulties. In the shadow of European psychodrama, the Head of State has still attempted to advance the cause of international economic cooperation. With mixed success. Balance sheet.

To read the official press release here.

Tobin Tax: A Small Step U.S.

It must have been one of the key topics of the French Presidency.Nicolas Sarkozy had even managed to convince Angela Merkel to go along with this idea of ​​a tax on financial transactions to support the development. But not surprisingly, no consensus could be found, too many countries there are still opposed. The head of state, however, has been commended for supporting Barack Obama on this theme, declaring that France and the United States "had a common analysis to help the world of finance to solving the current crisis. "

The Belgian, French and Luxembourg reaffirmed Sunday after a meeting held at midday in Brussels their solidarity in the search for a solution that ensures the future of Franco-Belgian bank Dexia .

In a joint statement, the Belgian Prime Minister Yves Leterme and French François Fillon stated that the three governments give their full support to the proposals of management of the banking group, presented at a Board of Directors scheduled to begin at 15:00 in Brussels.

"The proposed solution, which is also the result of intense consultations with all relevant partners, will be presented to the Board of Directors of Dexia which is responsible for approving proposals," added the two prime ministers.

"I am confident in our ability to reach an agreement with our French colleagues and Luxembourg and will be then the board of directors of Dexia to decide", for his part said Yves Leterme on Belgian television.

The activities of the Franco-Belgian bank, first bank in size in Europe to be a victim of the crisis of sovereign debt in the euro zone could be split and the most risky assets confined to a separate structure.

The Belgian, French and Luxembourg Sunday began discussions on the future of Dexia, in order to reach agreement on the terms and their participation in the new rescue plan for the former world leader in financing local authorities, supposed to lead on an orderly dismantling of the bank.

Brussels and Paris are trying to agree on the guarantees afforded by the two countries to the hive to accommodate the bond portfolio of 95 billion euros in Dexia, hoping not to aggravate the situation of public finances .

The rating agency Moody's has also increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 by explaining kingdom under surveillance will include assessing the costs and liabilities that the state could play in supporting Dexia.

VALUE TEST

Negotiations on the dismantling of Dexia, already saved from bankruptcy in 2008 after that of Lehman Brothers, will be a test for investors who want to see in the folder Dexia the ability of European leaders to overcome their differences to solve the banking crisis and the crisis of sovereign debt.

According to the most likely scenario, the dismantling of the Franco-Belgian bank should go through a nationalization of the Belgian branch, Dexia Bank Belgium (DBB), which specializes in bank deposits.

According to the Belgian daily L'Echo, the trail of a takeover of DBB by a foreign bank is considered and several institutions have expressed interest, including Deutsche Bank, Rabobank, Crédit Mutuel and BBVA.

Another key point of discussion: the distribution of the financial burden of dismantling between Belgium and France, whose participation combined with that of the Caisse des Depots (CDC) is around 25%.

Yves Leterme and Didier Reynders warned Thursday the French government that Belgium would not only rescue the financial burden.

In France, a dismantling of Dexia should result in a link-financing activities of local communities in a structure owned jointly by the Deposit and Postal Bank.

Friday, François Fillon has announced that the Deposit would release three billion euros to finance the French local authorities until a new entity formed by the Deposit and Consignment Office (CDC) and the Postal Bank to take the Dexia relay.

French President Nicolas Sarkozy, has to go on his side Sunday in Berlin for talks and a working dinner with Chancellor Angela Merkel before the summit of the euro area of ​​17 and 18 October and the G20 of Cannes and the three November 4.A bilateral meeting during which the larger issue of the recapitalization of banks in Europe should be addressed.

Pending the outcome of negotiations and decisions of the Board, the listing of the Dexia shares was suspended Thursday in Brussels. It will resume Monday morning.

Before the suspension, Dexia shares worth 0.85 euro.

The U.S. economy has created far more jobs than expected in September and the new posts of previous months have been revised upwards, according to official statistics released Friday that could mitigate fears of a return to recession.

Last month, 103,000 non-farm jobs were created, according to the Labor Department, while economists on average expected 60,000 creations.

The unemployment rate was unchanged from a month to month to 9.1%, in line with analysts' expectations.

The right numbers in September are based in part on the reintroduction of 45,000 employees of Verizon in the number of jobs created, they were not in August because of a strike.By excluding these employees, 58,000 new jobs were created.

Statistics disappointing August, which reported zero job creation, for its part has been revised to bring out 57,000 new jobs. That of July was also revised upward to 127,000 against 85,000 previously.

Overall, the private sector has created 137,000 jobs, 100,000 against and 42,000 expected in August. The public sector has eliminated 34,000 jobs to him.

RELIEF

These employment figures are one more sign that the U.S. economy could avoid falling into recession despite a sluggish summer.Last week, the growth of U.S. gross domestic product in the second quarter was revised up to 1.3% against 1.0% in the first estimate.

Recent indicators of the manufacturing sector, business spending and auto sales leave now think the economy is doing better than expected third quarter.

Hourly wages have also increased by 4 cents in September after falling all the previous month.They then recorded their first decline since October 2009, pushing the savings to its lowest level for over a year and a half.

"The increase in job creation and revisions of the statistics is comforting and exciting to the market," said John Kilduff, partner of Capital hedge fund in New York Again.

"But it seems premature to use these numbers to say, regarding the economy in general, we are out of the woods," he tempers.

In September, the U.S. economy has eliminated 13,000 manufacturing jobs, after having destroyed in August 4000.

Some economists fear that the debt crisis will derail the U.S. recovery, not a fear expressed Thursday by U.S. Treasury Secretary Timothy Geithner.

"We're still not at a job that can bring down the unemployment rate, which remains a key concern important to the economy," warns Ellen Zentner, economist at Nomura Securities in New York.

The economy must grow by at least 2.5% per year and create jobs 150.00 per month to prevent the unemployment rate to rise.

Nokia, faced with declining sales and profits, announced Thursday the elimination of 3,500 positions, including the upcoming closure of its plant in Cluj, Romania.

The closure of the Cluj result in the layoff of 2,200 persons.Nokia also plans to eliminate 1,300 positions in its other division Rental & Commerce, which includes the world leader in digital mapping Navteq.

These staff reductions are in addition to a program unveiled by the group in April to achieve 1 billion euros in savings, and including the removal of 4,000 jobs.

The world's largest maker of mobile phones by volume is facing a decline in sales and earnings after announcing in February that now employ the operating system from Microsoft for its smartphones.The first of them well equipped arrive on the market later this year.

The action Nokia has lost half its value since February, investors feared that the group would lose much market share until the launch of its new smartphones and no longer able to fully regain thereafter.

Around 9:10 GMT, the action to Nokia gained 0.96% 4.22 euros, while the European sector index electronics progressed from 0.17%.

Nokia also announced it would inject with Siemens € 500 million in their joint venture Nokia Siemens Networks, headed by Jesper Ovesen would succeed Olli-Pekka Kallasvuo, former CEO of Nokia.