Archive for March 22nd, 2010
The adoption last night of the great reform of health insurance, proud of the Obama administration is very important for the health sector, the United States and elsewhere in the world. Its impact on the health sector on Wall Street will be closely scrutinized.
The U.S. markets are getting better but still hesitant: the Dow Jones gained 0.26% to 10,770 points and the Nasdaq Composite 0.49% to 2386 points.
Investors will this week look at a few minor indicators, including sales in the previous Tuesday, and sales in the ninth Wednesday. Follow some figures on durable goods orders, before being released Friday, the latest estimate of GDP for the fourth quarter of 2009 and the index of consumer confidence.
Caution still dominates
Meanwhile, investors are still cautious amid the uncertainties that persist on the bailout of Greece. Even if the European Council held on Thursday and Friday in Brussels will not be much impact on markets, on both sides of the Atlantic, German Chancellor Angela Merkel have warned yesterday on German radio that "financial assistance to Greece is not on the agenda of the meeting Thursday …" But the pressure is raised a notch on Monday in Germany, for its approval a plan for financial assistance to Greece at the summit of EU leaders on Thursday and Friday.A summit to test the cohesion of the eurozone and the credibility of Europe.
The market does not, however, leaves destabilize or by poor statistics, nor by rumors: they whisper such as the Federal Reserve would again raise its discount rate by the next meeting of its Strategy Committee, Thursday . "But this is just an excuse to take some profits," says an analyst.
As for currencies, the euro strengthens against the dollar on Monday at 1.3548 dollars (0.28%) remains lower against the dollar on Monday after a brief foray as 1.35 dollar, dealers said opting for caution ahead of a summit of European Union, during which they will review again the Greek crisis.
The medicinal values rising
On the corporate front, the pharmaceutical values are well oriented.Pfizer Laboratories, Merck and Johnson & Johnson saw their shares rose by 1.88% to $ 17.23, from 1.76% to 38.73 dollars and 0.45% to 65.40 dollars. In contrast, health insurers are changing down: Humana fell by 2.20% to 48.90 dollars, UnitedHealth Group coward 2.27% to 33.61 dollars, Cigna lost 0.13% to 37.03 dollars Wellpoint and abandons 0.79% to 64.56 dollars. Aetna is only up 0.20% to 34.53 dollars.
Boeing (2.09% to 72.20 dollars) has announced an increase in production rates for Boeing 777 and 747.
As for publications expected will come on Thursday, Oracle and Best Buy, which will publish their earnings per share. Some computer companies (Red Hat Adobe Systems on Wednesday or Tuesday), builders (Lennar Wednesday) or deluxe (now Tiffany) also feed news.
Berlin turncoat. The German government has officially informed on Friday that he was open to assistance from the International Monetary Fund (IMF) for Greece, after long vigorously rejected this option. However, observers believed the case heard earlier this week. The Europeans had a specific plan, they said. Today, the hypothesis of an intervention of the International Monetary Fund (IMF) in favor of Greece resurfaced.
"The situation is confused, everything changes constantly," says an observer of the market in Frankfurt. "We came out of the Eurogroup, on Monday, with the idea of a specific action plan for Greece in case of need, but since patterns are changing." The markets reacted Friday to the renewed uncertainty .The yield on the 10-year Greek climbed nine basis points in early morning, reaching 6.44%, the highest since February 26, reports Bloomberg.
If Berlin exchange of views, the European Central Bank and Paris rejected an IMF intervention. "Bringing an external actor in the system is to acknowledge that lack a brick to the edifice of the euro area, as has long denounced the Anglo-Saxons," says Gilles Moec, economist at Deutsche Bank. For Jean-Claude Trichet, President of the European Central Bank, admitted this weakness is beyond question. This institution would be missing other than the European Monetary Fund recently proposed by Berlin.
The eye of Washington
Moreover, "the France and the European Central Bank fear of losing some control of European monetary policy by allowing the intervention of an international player," Peter Westerheide analysis, an economist at ZEW (Center for European Economic Research) guaranteed approval cash loans . The largest contributor to the IMF is the United States, leave the international organization for Greece is to give Washington the right to inspect the functioning of the euro area.
This argument is however a double edged sword. "Leave the IMF to pay back the United States to repair the crisis they themselves have caused," said Peter Westerheide. "Overall, the IMF is fed by many countries, the coup European countries pay relatively less in each case of assistance to Greece.This last point was what to seduce Angela Merkel, embarrassed by public opinion strongly opposed to any aid to the Greeks.
The IMF also has expertise in this kind of crisis. And for good reason: to help the country to the brink of bankruptcy, it is his job. The argument is advanced on the European scene, the Italian Finance Minister Giulio Tremonti: "Do not see the IMF as an external organization that meddles with what does not concern him, but rather as a bank offering … its capital and experience. "
These arguments, which seem to convince Berlin, partly defuse the blackmail of the Greek Prime Minister George Papandreou, if European aid too slow, it threatens to turn to the IMF. "Anyway, Greece can hardly resort to the IMF without the backing of other European capitals," said Peter Westerheide."His partners have enough pressure, especially through the many aid it receives from Brussels."
See also:
"SPECIAL – Greece, a challenge for Europe