DEXIA is likely to get rid of some 900 employees worldwide

So much cash to be invested: DJ +1.25%, S&P500 +1.5%, NASDAQ +1.2%, NIKKEI +0.8% and EUROSTOXX -1.1%, and up 1.2% now.

INFLATION : prices in Germany were stable in May y-o-y and down some 0.4% in Belgium, mainly due to the drop in oil prices. Nonetheless, the latter have surged since last February, what should contribute to reflation if this trend goes on. Conversely, price awareness is king amongst cies (BELGACOM asked its suppliers to reduce their prices by up to 20%) and consumers (DELHAIZE left the price of rice unchanged for the 365 products range but raised it by 30% for DELHAIZE products range). Difficult in such a situation to make forecasts for inflation. In the end, the main source might once again be oil  and raw materials, but we’ll have to see.

INDIA : GDP growth higher than expected in 1Q at 5.8% (5% forecast), thanks to construction and government spending (in period of national election)

BANKING SECTOR : DEXIA is likely to get rid of some 900 employees worldwide, of wich some 270 in Belgium and hire 200 top commercials for its home market at the same time. Rumouirs has it that it might also sell DEXIAM and the insurance business, reaffirming at the same time that it still believe in the bancassurance model. Can someone explain this to me?

VIX is down at 31.7. Gold is surging at 967 USD per oz and the oil price (BRENT CRUDE SPOT) as well at 63.8 USD. The USD is somewhat weaker against the EUR at 1.40. 10-2 years spread is at 1.97. The 5y CMS stands at 2.87 and the 3y at 2.18.

 

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