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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.

Societe Generale has succeeded in the first quarter to offset the impact of measures in its financial balance sheet reduction imposed by the crisis thanks to the good performance of its Activity s, mainly in banking and investment banking.

Committed since the fall of a larger plan to restructure its BFI, like many other banks in Europe, the French bank said Thursday it had sold to During the first three months of 6.4 billion euros in assets, continuing to strengthen its financial solvency. 

The group has subsequently confirmed its objective to achieve a capital ratio "hard" between 9% and 9.5% under the new prudential regime Basel III said, dismissing any increase again capital to achieve this.

"The group continues its transformation into an active and disciplined. There is a strong capital generation in the quarter," said Frederic Oudéa, the CEO of the SocGen, during a telephone press conference.

He spoke earlier this year a "strong" enabling "to look forward with confidence".

The net result of Societe Generale, the first French bank to publish its quarterly results came out at EUR 732 million, down 20.1% . According to the Thomson Reuters consensus I / B / E / S, analysts on average expected 748 million euros.

"These figures and the effort of deleveraging (reducing balance, Ed) a little more credibility to the group's ability to achieve its goal of Tier 1 common equity by 2013," said Alex Koagne analyst Natixis, in a research note.

16 BILLION IN ASSETS TRANSFERRED SINCE OCTOBER

In exchange, the action Societe Generale, which was displayed at the opening the largest increase in the CAC 40 index with a jump of nearly 5%, significantly reduced gains by midday. At 24:55, the title took 0.58% to 18.14 euros, underperforming the European sector index stroke (1.33%).

Since the beginning of the year, the stock rose more than 5%, against a 4% increase for the European banking index.

"The underlying results are very good. This happens mainly on the BFI, but retail banking in France has been quite stable," said one financial analyst based in London , who declined to be named.

"The fact that they sold in the quarter of the assets of poor quality, most penalizing under Basel III, is rather good news. In one quarter, they save 600 million (euros) in capital, "he says

. In the end, between October 2011 and March 2012 , SocGen sold for more than 16 billion euros of assets

. Constraints by the European Banking Authority (EBA ) to improve their financial solvency to cope with the crisis of sovereign debt in the euro area, European banks must always increase their equity by the end of June, the objective being a minimum ratio of 9%

. At the end of March, one of Societe Generale was 9.4%. Asked about

asset sales, Frederic Oudéa declined to make any comment on e ; ventuelles sales entities or subsidiaries. 

PERFORMANCE OF THE BUSINESS RATE

Particularly monitored by analysts, the activities in which BFI SocGen makes significant job cuts recorded a net decline of nearly 41%.

The bank manages to generate income up 39% in its interest rate, currency and commodities. For comparison, in this sector, the Deutsche Bank had revenues down 8% and Barclays saw its own increase by only 9%.

This performance of SocGen is also welcomed by several analysts.

"The performance of the BFI is remarkable with a decrease in revenues limited to 8%," said Alex Koagne, at Natixis. "This good performance is mainly supported by the FICC (fixed income, currency and commodities, Ed)."

"The activity rate is a surprise," said Tom Van Kempen, an analyst at ING. "They may have reallocated resources in these activities."

After benefiting from a rebound in the stock market earlier this year, the French bank stocks have returned an intense volatility for a month because of a renewed 'concerns about the debt crisis in the euro area.

Investors are also left out of the French banking stocks due to uncertainties related to the presidential election in France, the Socialist candidate Francois Hollande providing sector reform to protect customer deposits and make activities less risky market.

Sodexo announced Thursday for its first half 2011-2012 sustained growth in results due to the dynamism of Latin America and North and its recent acquisitions.

The group, whose results are in line with expectations, remains cautious, confirming its overall annual forecast, but tightened its organic growth target of sales around a range of 6 to 7% against 5-8% previously.

Beyond this internal growth, acquisitions should make an additional contribution of about 4% in consolidated sales, said Sodexo, which has also maintained its aim of increased about 10% of operating profit for the year. 

"We must be cautious in a macroeconomic climate remains uncertain and is still marked by inflationary pressures on food costs," he said during a conference call on Group CEO, Michel Landel.

The growth of continental Europe should remain "soft" by the end of the year, he added.

In the medium term, the world number two behind the catering Compass UK confirms its objective of achieving average annual growth in its consolidated turnover by 7% and reach an operating margin ; rational consolidated 6.3% at the end of the fiscal year 2014-2015. 

Operating income increased 14.5% to 559 million euros in the first half of the year based on a turnover of 9.07 billion euros, up 6.4% organic. This result reflects a favorable accounting adjustment of EUR 26 million related to the cost of pension plans of the group in the UK.

Around 9:25, the title showed a slight decrease (-0.5% to 60.07 euros). Revenues rose 8.3% since the beginning of the year for a market capitalization of 9.4 billion euros.

The activity of Sodexo was supported in the first half by a series of acquisitions in France, Brazil and the United States (with Lenotre respectively, Puras do Brasil, Broset Roth) and by the services provided by the group during the Rugby World Cup.

The group, whose rate of net debt to equity is 38% against 26% a year earlier, will continue to focus on organic growth but did not exclude small acquisitions.

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.

This operation is of course to re-inflate the coffers. The police equipment, like helicopters, can also be rented from private individuals. Police for rent, 30 euros per hour.

Police for rent, 30 euros per hour: whoever can afford it can now in Greece seek the reinforcement of security forces and their equipment, an innovation designed to pump up the public coffers, said Sunday the Ministry of protection of the citizen.  

The department confirmed in a statement late March the adoption of a ministerial decision to this effect, "in order to amortize the cost of using equipment and infrastructure of the police, and to modernize."

This reform, which was adopted in secret, had just been revealed by the Sunday newspaper Proto Thema sensational, including, according to police sources, the recently appointed acting Minister Michalis Chryssohoidis, who has enjoyed little of n ' have not been informed in due course. According to Proto Thema, the bill varies from 30 euros per hour for a police officer, or 40 for a patrol car, 200 euro for a celebrity or 1,500 for a helicopter.

According to the Ministry, this lease will concern only "exceptional cases", and will not receive the required approval only if it does not reduce the operational capacity of the body. The range of services offered ranges from "the escort transportation of hazardous materials or works of art", to "support people" or filming.

These services were "available for free" for years, the ministry said, is regularly accused of in recent years to grant favoritism and opacity in any police protection to the costly political and economic elite of the country. The department also relies on what the practice would spread "in many countries of the European Union".

Low-fat diet for households and businesses, slashing the state budget and credit crunch could lead bank for Spain by years of economic stagnation, and force her to ask, such as Greece, an international aid.

Forced by the European Union to reduce the deficit and meet the new budget rules, the Spanish Prime Minister Mariano Rajoy promised that the draft budget presented Friday would be "very, very austere." 

While the Spanish economy is already on the verge of its second recession in three years, that unemployment exceeds 22% and that the costs of bonds go up, Some economists predict the country a "lost decade" like the one Japan experienced in the 1990s and which he never fully recovered.

Others, including the Italian Prime Minister, Mario Monti, consider that Spain could result in the entire euro area a new crisis.

"We signed a suicide pact, Europe, accepting that everyone could save," said Luis Garicano, an economist at the London School of Economics and a researcher in the circle reflection Spanish FEDEA. "Europe must admit that this creates a downward spiral that does a disservice to anyone."

The Spanish economy, characterized by a debt of nearly 70% of gross domestic product (GDP) and private debt among the highest in the euro area , represents more than twice those of Ireland, Portugal and Greece combined, which excludes its partners leaves the sink.

DRYING OF CREDIT

In financial markets, the financing costs of the Spanish debt have certainly receded after last year reached their highest levels for 14 years, but the recent renewed concern weeks resulted in a rise in yield spreads between Spanish and German bonds. 

"There is a risk that Spain forced eventually to seek financial assistance in order to borrow at reasonable interest rates," said Ben May at Capital Economics.

The draft government budget Rajoy will include at least 35 billion euros in savings and new revenues, including an increase in certain taxes and wage cuts and staffing in the Public .

And Budget 2013 promises to be just as rigorous.

Problem: Spanish domestic demand, a key driver of growth in the boom years before the crisis, is now more to go.

The country's GDP expected to contract 1.7% this year. In turn, property prices fell 11.2% in the fourth quarter of last year and some are predicting 30% price decline further. The construction sector, flourishing during the housing boom, collapsed after 2008, which resulted in several million additional unemployed.

The unemployment rate in Spain is thus twice the average for all EU and approach 50% among youth. The kingdom also displays the rate of development of the highest poverty in Europe.

POLICY DANGEROUS TURN

The situation of enterprises is not much better and even the most promising sectors are cutting their workforces, like tourism (11% of GDP), where the group Sol Melia had sell assets in late 2011 to reduce its debt, despite the increased number of visitors favored by the Arab spring.

"At this stage, in the absence of significant changes in reservations in view of the first book, we prefer to adopt a wait, and especially if we take into account the weak position of the Spanish market, "said the group managing director, Gabriel Escarrer.

Bank credit, it is virtually at a standstill. The financial sector, captured by a vast movement of consolidation and mergers, has instructed the government to strengthen its financial strength by injecting 50 billion euros in its balance sheets.

"I do not expect any credit growth this year: it will not accelerate as the economy slows," said a senior industry.

This drying up of lending in Spain affects both large, established companies that families bold enough to ask for a mortgage.

"We are one of the strongest Spanish companies but banks simply will not lend," says an executive from a leading company, who requested anonymity. 

His group nevertheless manages to borrow in the bond markets, which are obviously inaccessible to smaller businesses.

Some economists believe the situation in Spain is unfortunately similar to that of Japan in the 1990s. At the time, the shift to austerity operated by Tokyo in 1997 while the private sector was working to pay off debt had resulted in five quarters of contraction Japanese GDP and a soaring budget deficit.

"The recession will last much longer if the government continues to insist on fiscal consolidation at a time when the Spanish private sector debt reduction," said Richard Koo, Nomura Research Economist Institute in Tokyo.

"It took ten years in Japan to recover from this error policy. I would hate to see Spain follow the same path."

List of values ​​to follow on Wednesday at the Paris Bourse, where the CAC 40 is 0.7% to 3574.70 points at 12:55, at its highest since meeting on March 2, in a market supported by the improving economic outlook in the United States and an overall positive result of stress tests undergone by U.S. banks.

* PSA earns 5.4% more increase in the CAC 40, on purchases cheaply and redemptions of short positions. The total European car takes 2.2% and 2.8% RENAULT.

According to La Lettre VN Auto K7, orders for new cars in France fell by only 7% in February.

* The FINANCIAL are again the first to enjoy the return of risk appetite. AXA gained 4.3%, 3.6% BNP Paribas, Crédit Agricole and Societe Generale 3.4% 2.7%. Outside CAC 40, Natixis is 5.5%, the second largest increase in PSA after SBF 120, and CNP ASSURANCES earns 3.5%.

* BIOMÉRIEUX however lost 5.5%, largest drop in the SBF 120, severely punished after revising down its organic growth target in 2012 and abandoned ambitions to provide long term.

* ARKEMA down 4.8%, while Groupe Bruxelles Lambert has sold 6.2 million shares of the chemicals group, is 10.01% stake. GBL sold its share at a price of 69.90 euros / share, it was learned on the market.

* EURO DISNEY (+6.4%) expects to exceed this year's attendance record in 2011 (15.7 million tourists) despite the difficult economic environment in Europe, de clare its CEO Philippe Gas in an interview with Le Figaro.

The Post became a limited company with public capital has eliminated nearly 12,000 jobs in 2011 according to the CGT and SU. La Poste, "office of the future"

Nearly 11,000 jobs lost by departures not replaced. This is the figure announced by the CGT and SUD for the Post last year. Became a public limited company on 1 March, the Post employs about 240,000 people.  

For unions, these job losses have a direct impact on working conditions of postal workers.

In a statement, said the CGT and the Post recording of financial results up "with increasing job losses and tragedies that are multiplying," saying that "behind the numbers, a real human catastrophe develops within the company, "marked by the suicide of a young executive in Rennes last week.

SOUTH evokes his side a "precipitous drop" job with "10,091 jobs lost, or" about a replacement for four starts "seeing" a bleeding even more disastrous for the working conditions that mail traffic has declined 3%, "a weaker pace than expected 5%. The union stresses that" the number of CSD rose by nearly 10% "in 2011 with 2,000 additional employees with this type of contract to December 31. SUD also pointed out that the number of sick days per officer does not drop, reaching 20.45 days in 2011, against 20.86 the previous year.

After the suicide of the frame of Rennes, the CEO of La Poste, Jean-Paul Bailly, is committed to rapidly start "a cycle of listening and dialogue on health and welfare at work".

A series of meetings with trade unions to take place next week. Regarding employment, the direction of the Post reported in mid-February that it undertook to recruit at least 10,000 people on permanent contracts over the period 2012-2014 as part of a management agreement of estimates of jobs and skills (GPEC) subject to the signing of trade unions.

Executive added that 7500 study contracts would be offered over the same period.

PSA Peugeot Citroëna unveiled Tuesday the terms of the capital increase of about 1.0 billion euros related to its alliance with General Motors, an operation marked by a substantial discount to the American group that will take 7.0% stake.

This capital increase, announced last week at the presentation of the alliance between the two automakers, will open on Thursday and until 21 March inclusive.

The operation with maintenance of preferential subscription rights will be on the basis of 16 new shares for 31 existing shares, said in a statement PSA. 

The subscription price is set at 8.27 euros, showing a discount of approximately 42% over the closing price on Monday (14.2050 euros), and 32.4% compared to the theoretical subscription right off (12.23 euros).

Discount as the French group finance director, Jean-Baptiste de Chatillon, a relativized in a teleconference with reporters.

"What must be considered as haircuts, the calculation is compared to the theoretical price after issuance of one billion, ie about 32%, and this de ; rating is quite usual in the market, "he said. "What matters now is the time and size of the capital increase."

The action PSA yielded 2.56% in pre-market transactions in Frankfurt after the announcements.

For analysts at CM-CIC Securities, "this discount is explained by the fact that the success of the capital increase would condition the entry of GM capital of PSA and thus the birth of the alliance ".

PRIORITY INVESTMENT

The Peugeot family, the largest shareholder group, 45.4% exercise of his rights for $ 140 million and sell its remaining rights to General Motors. The latter will invest a total of 304 million euros in the operation, including the purchase of these rights and the acquisition of treasury stock (4,400,000 shares).

Following the capital increase, the Peugeot will own 25.2% stake in GM and PSA 7.0%.

"This round of money for PSA Peugeot Citroën will fully intended to fund our strategic projects with General Motors," said Jean-Baptiste de Chatillon.

"These investments will enable us to accelerate our globalization strategy and go upmarket, and (…) access to technologies and projects much faster and mania re wider ", he added.

Priorities for which he also argued for the decision of PSA do not pay a dividend this year. 

"We need our cash to fund these investments," he summarized.

Last month, SAP announced a major plan asset sales totaling 1.5 billion euros after the publication of annual results marked with an operating margin born NEGATIVE activities in the automotive industry, a "free cash flow" negative EUR 1.6 billion and a doubling of the debt in six months.