CHRYSLER: agreement with unions - the alliance with FIAT remains feasible

·         CAR INDUSTRY : CHRYSLER has reached an agreement with unions and therefore the alliance with FIAT remains feasible. Not so long ago, no one would have bet on FIAT’s survival. This story illustrates today’s top priorities. Beyond the economy, the transition that the car industry is going through is a reflection of what is at stake in the society itself: reducing the excesses and protecting the environment.

·         BANKS : GOLDMAN SACHS seems to have a short memory. In the 1Q, the VaR of their investment portfolio jumped 22% and is now twice the amount at MORGAN STANLEY. Difficult to keep a low profile when performance standards by the financial markets remain the same: profit, profit and … profit. Rumour has it that solvency amongst the biggest US banks is above requirements and that only one failed (to be confirmed).

·         FORTIS : the Belgian government stated that a nationalisation is very likely if the no comes out. PING AN is not favourable to the BNP deal. Easy to imagine that our Chinese friends don’t really understand the subtleties of our economic policy. Not sure they will rush towards the door again very soon.

·         VIX is slightly down at 36.8. Gold is up at 915 USD per oz as the oil price (BRENT CRUDE SPOT) at 50.1 USD. The USD is stable against the EUR at 1.31. 10-2 years spread is at 1.53. The 5y CMS stands at 2.686 and the 3y at 2.193.

 

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