BANKING SECTOR under pressure in Europe and the US

·         No comment :  DJ -1.2%, S&P500 -1.2%, NASDAQ -1.7%, NIKKEI -1.9%, EUROSTOXX -0.2% and down 2.9% right now.

·         HOUSING MARKET : In the US, even the Prime segment is facing  delinquencies as some 2.7% of those mortgage payers have 60 days or more delays for their financial obligations. This is a sign that all classes of the American society are affected and that that the credit crunch might not be over yet.

·         SAINT-GOBAIN : capital increase for 1.5 bn EUR in order to offset the negative impact of the crisis and the antitrust fine. You will get 2 new shares for 7 old ones at 14 EUR, a 50% discount to yesterday’s price. Not need to say that one has to be extra careful. LAFARGE is also going for a 1.5 bn EUR capital increase. Saint-Gobain is down 14% and Lafarge is down 1%.

·         BANKING SECTOR : under pressure in Europe and the US (fears of possible nationalisations in the US). BNPPARIBAS published relatively good figures (net result 3 bn EUR but dividend down to 1 EUR); not enough to support the share price.

·         ZEW : the leading component was significantly above the forecast figure (-6 vs -25 expected and -31 in January) while the current component was worse than expected (-86.2 vs -82 expected and -77.1 in January).

·         VIX is slightly down at 47.1. Gold is retreating somewhat at 975.5 USD per oz while oil is up at 40.8 USD. The USD is rising against the EUR at 1.259. 10-2 years spread is virtually unchanged at 1.38. The 5y CMS stands at 2.823 and the 3y at 2.40.

 

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