Speaking after its annual review of the Italian economy, the head of the IMF European Department, Reza Moghadam, has shown strong support for the president of Italy Mario Monti. This has put pressure on European leaders to ensure that measures to promote growth in addition to the austerity plans response to the crisis.

"The policies implemented by the government have created a stability that is truly remarkable compared to the situation we had at the end of last year," said Reza Moghadam during a press conference.

The IMF confirmed its estimate of 1.9% decline in gross domestic product (GDP) Italian for 2012, after falling 0.8% in the first quarter.

The fund does not think that Rome should take further fiscal adjustment measures beyond what the country has already planned, although the government has raised its forecast for de government deficit from 2013 to 0.5% of GDP, against 0.1% previously. 

"Fiscal policy for this year and next year is a policy that the IMF fully supports," he said.

"Our recommendation is to proceed with plans to recapitalize banks, precisely to ensure that banks have sufficient capital to support credit activity in Italy," he added.

The Boeing, co-owned by the private equity arm of Goldman Sachs and Onex, concluded on May 3 an agreement with its creditors for erasing about $ 2.5 billion in debt under Chapter 11, which aims to allow business to continue trading.

"This debt will no longer hamper our business," said Shawn Vick at a news conference at EBACE business aviation in Geneva.

"The procedure of Chapter 11 should not be confused with the liquidation or bankruptcy. There is too much value in Hawker Beechcraft for this to happen, "he said, denouncing the" misinformation "and" speculation "

. Shawn Vick

stressed that the group would continue to honor its orders and anticipated output of the procedure of Chapter 11 "before the end of the year" …

…… Goldman Sachs Capital Partners, the private equity funds of the bank, and Onex, the first Canadian company takeovers, had bought Raytheon Aircraft Raytheon in early 2007 and were renamed Hawker Beechcraft

. Under Chapter 11, the group of Wichita (Kansas) will have their money transferred to some of its creditors, Goldman Sachs and Onex retaining only a minority stake. 

Acquisition, made at the height of the bubble and in the hope of a growing market, came at the wrong time. The 2008 financial crisis and severe economic recession that ensued led to a fall in business jet deliveries of small and medium – the segment of choice Hawker Beechcraft.

Asked about a possible reduction in its range which would reduce the complexity of its production, said Shawn Vick Reuters that it was not the order of day.

"This company is more than capable of building many aircraft in all segments," he said.

Although it acknowledged that competitors had benefited from his troubles to him take market share, it highlighted a trend of more favorable order in 2011. 

He also expressed confidence in the ability to remain independent at Hawker Beechcraft:

"We have no other project to grow the company on a freelance basis," he said to Reuters. "That does not surprise if others were interested in the company, but more than able to stand on both feet."

The Conservative government of Mariano Rajoy provides a slight increase in gross domestic product next year and a 1.4% growth in 2014.

The Standard & Poor's downgraded Thursday by two steps the sovereign rating of Spain to bring it back to BBB +, only two notches above speculative grade ("junk") in highlighting the risk of recession on public finances deteriorate further.

Friday, the government said it expected to reduce the public deficit to 1.1% of GDP by 2015 from 2013 by renewing with a primary surplus (excluding debt service). 

To achieve this, he said, he will increase taxes on consumption next year to raise eight billion euros.

The debt / GDP will peak at 82.3% next year and to decline 81.5% in 2014.

The airline needs to spend a large order by the end of 2016 to reach its goal of doubling its capacity to 150 million passengers a year.

An order before the end of 2014 is unlikely, however, said Michael O'Leary told reporters.

The CEO of Ryanair also said that if his group paid a special dividend in respect of fiscal 2013, it does not pay a second in 2014.

In Paris at 10:01, the CAC 40 was down 0.31% (-9.51 points) to 3,283.00 points. In Frankfurt, the Dax is almost unchanged, while in London, the FTSE gained 0.19%. The pan-European index Stoxx 50 is down 0.59%.

"The markets are experiencing a phase of consolidation after a strong rebound since the beginning of the year and Spanish bond auctions go well Thursday, investors' appetite for risk resume more beautiful, "said Hirokazu Tuihama, a strategist at Daiwa Securities.

Values, the British retailer Tesco, which has announced plans to spend one billion pounds (1.2 billion) to overhaul its operations in Britain to regain market share and reconnect with sales growth, gaining more than 1.6%. 

Accor (1.64%) stands out from other CAC 40 stocks Wednesday morning after the hotel group released a sales growth of 4.5% to 1.371 billion euros in the first quarter, slightly above market expectations (1.358 billion).

The world number two home appliances Electrolux sells more than 3% in early trade after the announcement of a decline of 16.7% of its supplies to the market North America's six major product categories.

ASML is the title back in the same proportions as the world leader in machinery engravings of semiconductors declined to disclose its prospects of orders on the occasion of the publication of its quarterly results . 

In the euro area, investors will monitor the issue of 5 billion euros of debt in two years in Germany before the auctions of two and ten years in Spain and BTAN and a new line on inflation indexed by France on Thursday.

The Swedish Central Bank held rates unchanged while preventing an increase in inflationary pressures would lead to the rise, but not until next year. Other monetary policy decisions are expected during the day in Turkey and Brazil after the publication by the International Monetary Fund of its global economic forecast in which the international organization has raised its forecast for growth while warning against the fragility of the global economic recovery and highlighting the continuing challenges of the euro area.

In China, the fall in house prices continued in March and could lead the authorities to alleviate the measures taken two years ago to reduce speculation in this market , while the slowdown in the Chinese economy continues to be a concern in the markets.

After almost a year of discussions, the CEO of Exxon Rex Tillerson has signed this agreement with his counterpart from Rosneft, Edward Khoudainatov, at the residence of Russian Prime Minister Vladimir Putin in Novo- Ogariovo, not far from Moscow.

This strategic cooperation agreement was announced by Reuters in mid-day, before it is signed.

It will give Rosneft, majority owned by the Russian state, a 30% interest in three projects for Exxon in North America, described the two groups in a joint statement. 

Exxon and Rosneft will also study the feasibility of the exploitation of deposits of Rosneft in western Siberia.

According to a first agreement in August, Exxon and Rosneft must spend $ 3.2 billion (2.45 billion euros) to the exploitation of oil deposits in the Russian Arctic and Black Sea. Seismic studies starting this year, indicated that the two groups.

These funds are meant to give the IMF the means to combat the crisis of sovereign debt in the euro area.

The G20 finance ministers meet in Washington next week and will increase the Fund's resources will be central to their discussions.

"I would say it will be somewhere between 400 and 500 billion and that much will depend on commitments of the major world economies and European economies outside the euro area," said an official of the G20. 

Executive Director of the IMF, Christine Lagarde, said Thursday that an agreement could take time, suggesting that the meeting next week may not result in an agreement dice finitif.

She also said it was possible that the IMF has required fewer resources than he thought a few months ago, the economic and financial risks are being mitigated, as well as its financing needs.

The long-term operations (LTRO) of the European Central Bank refinancing two to three years made in December and late February, by watering thoroughly with liquidity sys my bank, have also helped reduce the need of the Fund, in the opinion of officials. 

The IMF estimated in January that it would take $ 500 billion more for loans and an extension 100 billion in reserves for protection of risks arising from the debt crisis of the euro area .

"UNREALISTIC"

"It was always clear that this envelope 500 to $ 600 billion (…) was too unrealistic," said another official of the G20. "We will be happy if we get other countries as much as what the Europeans are willing to contribute."

Countries in the euro area have committed to provide 150 billion euros and other countries of the European Union 50 billion.

The first official said that China and Japan could together provide $ 100 billion, or slightly more. "It seems that Japan and China are relatively happy with what Europe has done," said a third official.

"But among developing economies, we still feel that the rich countries like Germany should play a greater role in solving the problems of the region, it may be that there is no agreement until the last moment, "added the third charge.

For now, the U.S. and Canada are the only countries that do not contribute to an increase of IMF resources.

The credit market has recorded one of its best quarters in issue volume in number of transmitters and in reducing risk premiums (spreads), related professionals. 

"Issuers have succeeded without difficulty in raising funds to historically low levels and syndication desks (banks) had a stellar quarter," writes in a note Suki Mann , head of credit strategy at Societe Generale.

Gaëlle Malléjac, responsible for managing rate at Groupama Asset Management, points out that if one judges by the evolution of the Barclays corporate EuroAgregate, March 26 corporate credit engrangeait performance 4.63% higher than German debt.

"The average spread of the universe credit stood at 215 basis points (over German debt) at March 26, against 322 bps at end-December 2011," adds she said. 

"Concomitant resistance of German Bunds, risk-free assets, is a great enigma. The German rate (1.8% for 10 years) is disconnected from the fundamental view of the im improvement of economic situation, "said the manager.

She explains that in fact "excess liquiditésa benefited all asset classes," even the most expensive as Bunds.

BANKS EMIT NEW

The primary market for credit has regained health insolent.

"There was this quarter a record number of shows. At each show demand was strong from the beginning of this year the premium has significantly reduced or disappeared, "says she …… According to data

… established by the team of Suki Mann, the third quarter ranks among the most active primary market with 53.3 billion euros issued by non-financial corporations classified as investment (Investment Grade, IG) against 27.6 billion in the first quarter of 2011 …. In

….. speculative grade (high yield, HY), the threshold of EUR 10 billion was reached, a third of the amount total issued in 2011, and ranks fourth quarter in terms of amount issued on the euro market. 

Abruptly closed last summer with the worsening debt crisis in the eurozone, the segment of senior bank debt unsecured woke up with a bang 55 billion Euros against 12 billion for the last six months of 2011.

This rise is largely up to the credit of the last acts of unconventional European Central Bank, which was conducted in December and February 2 refinancing operations and three years of euro area banks.

The cumulative amount lent to banks at a rate of 1% has exceeded 1,000 billion and has raised a major concern emerged in 2011: the inability of banks to use market ;. 

ECB DETERMINED TO SUPPORT BANKS

"The ECB has demonstrated its determination to do everything to support the banking system of the euro area. There is more risk of refinancing of banks by 2014-2015, "said Gaëlle Malléjac

." The two LTRO averted a 'credit crunch' and to banks to buy debt device, "said Nicolas Forest, head of rates strategy at Dexia Asset Management …..

…. "With LTRO, banks have changed their behavior in January," said Gaëlle Malléjac, adding that vendors of debt Italian or Spanish sovereign, they increased rates to buyers

. 10 years Spanish and Italian have declined to 4.86% and 4.81% in February, against 6.73% and 7.3% in November at the height of the crisis in the euro area. The Spanish rate rose to 5.43%, attesting to the difficulties of the Madrid government to meet its objectives of reducing public deficits.

The professionals interviewed all stress that if the time for the LTRO has averted the risk of a credit crunch and that governments have set short-term problem of Greece and its private creditors, the underlying problems remain.

"Governance problems and structural imbalances in the euro area whose solution will take time for caution for the future," notes Nicolas Forest. However, he believes that governments seem to have learned from the bear market in 2011.

Gaëlle Malléjac and Suki Mann also express caution. But they want to believe that the new fiscal pact in the process of ratification and the expected agreement on an increase sufficient means of financial solidarity mechanism at meetings of finance ministers of the EU this week- Weekend in Copenhagen should allow a continuation of the rally-but at a more modest pace, especially for spread tightening.

The Nikkei lost 55.50 points to 10,086.49 points, away from its highest of eight and a half months reached Monday to 10,172.64 points. The Topix broader, yielded 9.57 points (1.1%) to 858.78 points.

The export values ​​have suffered from profit taking. Toyota was down 1.54% but still up nearly 38% since the beginning of the year. Nissan has lost 2.92% and Sony dropped 4.47%.

Qatar Holding, one arm of sovereign investment fund Qatar Investment Authority (QIA), said holding 12.83% stake in Lagardere and have surpassed the 10% voting rights, to 10.05%.

Qatar Holding says it reserves the right to further increase its stake in the company but said not wanting to take control. 

However, it indicates that it intends to seek appointment to the supervisory board of Lagardère and "talk with any interested actors, as appropriate, to strategic partnerships to the credit ation of long-term value for shareholders, with the stipulation that there is currently no specific plans in this regard ".

Qatar says it is not targeting any merger or reorganization, liquidation or transfer, modification of activity or status of Lagardère. He also says not to consider proposed cancellation or issuance of securities of Lagardère.

Nobody was immediately available for comment at Lagardère announced.

The Qatari fund became the largest shareholder Lagardère in December with 10.07% of the capital, before the family Lagardère (Lagardère Capital & Management), which holds 9.6% .

The market hardly reacted to this information, the Lagardère shares remaining unchanged at 23.56 euros at noon in a market down by 0.75%.

Lagardère has suffered a heavy loss in 2011 (707 million), due to massive write-downs on past sports. (See)

This diversification strategy considered by Arnaud Lagardère, General Partner of the group, ended last year with an operating loss of six million euros, after performance trading below expectations, loss of contract disputes and more.