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European politicians finally seem on the verge of their act together on the Greek case and the measures to try to resist contagion. The prospect of a consensus at the summit of October 23 has heightened expectations of financial marcéhs Wednesday.

The signal came from Paris, where the government is out of the woods on the delicate issue of recapitalizing banks with public funds. "We have no doubt about the strength of French banks but there is turbulence in financial markets that cause the increase of capital of European banks has become a necessity," conceded Valérie Pécresse, Minister for the Budget and is speaking for the government.

If Bercy always prefers a recapitalization by the "private capital", the Minister acknowledged that France was willing to inject itself of public money to support its banks.But only "if necessary, ultimately," insists on all sides. Still, Paris is on the side of Germany, who suspected her of wanting rather to apply the European Stability Fund (EFSF), to avoid jeopardizing its AAA. Now for Berlin, there is no question that States have the means to put themselves out to the pocket have had recourse to the help system mutusalisée what the Fund. "The EFSF can lend to some countries who need loans to recapitalize their banking system, France will not appeal there," committed Valérie Pécresse. If banks do not hammer need to be recapitalized, the French government, however, stand ready, in case …

Paris is therefore close to Berlin. And position strangely similar to that outlined Wednesday by José Manuel Barroso.Calling for a "fully coordinated approach," the President of the European Commission has called on banks to beef up their capital "temporarily" but "emergency". Private funds, public money or relief of EFSF, that each country is doing: Europe is the strength of its banking system can no longer be doubted.

30% to 60% discount

For this, the European banking supervisor is the maneuver. According to the Financial Times, the European Banking Authority will impose a hard capital ratio of 9%, a considerable jump from 5% who had served as a reference during stress tests in July. All, by mid-2012. But the effort goes further. The supervisor collects the latest encryption on sovereign debt portfolios of the banks to deduct equity securities on these discounts applied by the markets.

If the bank building is now consensus among European politicians is that a taboo is jumping, that of non-payment of Greece. Of course, nothing is official act. But when Barroso calls for "decisive action on Greece" to qd'assurer the viability of the Greek economy is emerging between the lines a massive debt waiver. Greek Prime Minister George Papandreou does not hide the power struggle in which he was hired: "We negotiate every day to reduce this debt." Of "responsible for the euro area" quoted by Reuters are considering the possibility of a cross on 30% to 50% of Greek debt.The President of the Eurogroup, Jean-Claude Juncker, has even mentioned a discount of more than 60% earlier in the week before his entourage back-pedal.

For now, banks consider in their accounts that they must give up 21% of their claims of Athens, in accordance with the agreement of July 21. It is to be able to take the shock of restructuring more violent they are asked to display ratios above reproach.

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Asian stock markets on Tuesday were in turn carried by the optimism that won the scholarships in Europe and the United States yesterday. The promise, made Sunday in Berlin speaks French President Nicolas Sarkozy and German Chancellor Angela Merkel, are bearing fruit. Hopeful, investors await the answers to the debt crisis in the euro area are expected before early November. They also expect to learn more about the plan to recapitalize weak banks in the region.

Meanwhile, the Japanese Nikkei sets the tone. At the end, he won 1.95% to 8773.68 points. The Topix, broader, took 1.81% to 755 points. The Tokyo Stock Exchange was closed yesterday because of a holiday and had not yet responded to the ads of the Franco-German. The Nikkei is notably supported by exporters who find the values ​​of the force with the weaker yen against the euro.The single currency is changing around 104.50 yen this morning, well above its record low in a decade reached on October 4, at 100.76 yen. Sony gained 5.58%, 5.64% Ricoh, Sharp and Toshiba 3.44% 5.55%. The automotive sector is doing well also: Honda Motor rising from 6.03% Hyundai 3.6% and 2.12% of Toyota.

State intervention with Chinese banks

The Stock Exchange of Hong Kong and Shanghai are also in the green bad credit pay day loans. At 7:00, they earn 3.26% respectively to 18,287 points and 0.72% at 2361 points. Financial stocks pull the score up after a share buyback of the main state banks by sovereign wealth fund China Huijin. According to brokers, this operation is to stabilize the financial system in China.In Hong Kong, around 7:15, the actions of the banks concerned fly: Agricultural Bank of China jumped 15.09% so, Industrial & Commercial Bank of China of 7.92%, China Construction Bank gained 7.04% and of China 8.94%.

Other markets in the region are also in good spirits. The Korean Kospi gained 1.89% to 1799 points, the S & P Australian advance of 0.47% to 4220 points and the Indian Sensex climbed 0.86% to 16,699 points.

Oil stabilizes

Oil was steady Tuesday in Asia, maintaining its gains made the previous day, in a market supported by the will of France and Germany to resolve the crisis of government debt in Europe and disruptions in oil exports to Kuwait due to a strike by customs officials who demanded an increase in their wages.

A barrel of "light sweet crude" for delivery in November gained 18 cents to 85.59 dollars.A barrel of Brent North Sea crude for November delivery gave a small 14 cents to 108.81 dollars.

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Faced with the fear of a general banking collapse, the Franco-German couple is once again under the spotlight. And once again, things are not simple. Nicolas Sarkozy on Sunday in the German capital to "speed up" with Angela Merkel the implementation of the bailout of a Euro still full turbulence. The urgent need for the French president and German chancellor, is to flatten their differences on the use of the European Financial Stability Fund (EFSF) and reach a tentative agreement on the thorny issue of the recapitalization of banks.

Angela Merkel ruled Thursday that "there was a need to recapitalize, it would be reasonable to invest money" in terms of what could cost an emergency rescue industry.But she insists on the fact that the Fund will be used to bail out financial institutions on the condition that states can not themselves "to support the recapitalization of their banks' and it puts" endangered the euro area as a whole. "

In fact, Paris Berlin suspected of wanting to directly use the emergency fund to recapitalize banks weakened by the prospect of a debt reduction Greek. "The French have misunderstood the EFSF, decrypts it does in Berlin. Our position is that banks must first seek funding markets, and the side of the national public authorities. Only when there is no money available comes the European level. The EFSF is a tool for countries like Greece or Portugal.If a country like France – among the strongest financially of the euro area – wants to appeal, then this is the door open for all members of the area had ro dig into the fund. "

Berlin suspects Paris

An over-interpretation, says it does on the French side. "We have not yet begun to discuss that!" Do we wonder at the Elysee. At Bercy, it ensures not see fundamental differences with Berlin. "We agree with Germany, said the entourage of the Minister of Economy, Baroin, the fact that more capital into banks, including French," even if only to meet new international standards of Basel III in 2013.Whenever possible, the French banks also plan to comply with without recourse to the capital, let alone the U.S. – by separating certain activities if necessary, by distributing fewer profits to build equity .

But if there had to be re-capitalization, especially to reassure investors, "the sources must first be private," insists one at Bercy. "Ultimately, this should be to rely on injections of public capital." According to Paris, "a European coordination is essential to determine the amount of capital to meet the deadline by which this capital is to be achieved, and the tools for that. " It is on these criteria that France and Germany could agree this weekend.For its part, Brussels will make proposals for a coordinated recapitalization "in the coming days."

Moreover, given the deepening crisis, Angela Merkel has gradually accepted the idea of ​​economic governance of the European Union, defended by Nicolas Sarkozy. Expanding the powers of EFSF part of this process. However, the Chancellor – who imposed hard fought his troops to ratify the Bundestag building – is faced with a majority crossed by a strong current Eurosceptic.

Markets would also like to know more about the technical means to leverage the clout of EFSF. These contain the spread of the crisis heavyweight like Italy, Spain, and Portugal, while the levees are still weak.Should we go further and erase a more substantial part of the Greek debt? Should we consider that the Fund provides guarantees? The German finance minister, Wolfgang Schäuble, at least possible that Germany spends more money than EFSF the 211 billion passed by the Bundestag.

These tensions, it is now the standard mode of operation between Paris and Berlin. Pressure mounts on both sides of the Rhine, until a compromise emerges in a head-to-head at the highest level. Given their respective domestic political weakness or Merkel or Sarkozy can not afford a failure.

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Moody's warned that it was British banks in the crosshairs. So she lowered the notes yesterday of seven small establishments that specialize in mortgages but also five major banks such as Lloyds Banking Group, which comes down a notch to "Aa3" to "A1", and Royal Bank of Scotland , which loses two notches to "A2". She also announced plans to lower the rating for long-term debt of Belgium, currently the second best possible "Aa1." The rating agency said in a statement it would review the country's vulnerability to the crisis of debt in the eurozone, growth prospects and uncertainty surrounding the possible support to the banking system, particularly the establishment Franco-Belgian Dexia.

Moody's, which has deteriorated in the wake of 9 banks in Portugal, is the difference between Portuguese and British situations.If Portugal is the financial institutions that is pointed, this is not the case in the United Kingdom. The decrease is only due to the fact that the government committed to a policy of strict fiscal discipline, is less inclined to support the bankruptcy of its banks, especially smaller ones, "It is more likely that the government is now its most smaller institutions to fail no fax cash loans. The damage does not reflect a deterioration of finances of the banking system or the government. "

Controversy over RBS

So it's the same reason that is invoked only for a few weeks ago degradation of U.S. Citigroup, Bank of America and Wells Fargo on the grounds that the state might be reluctant to help them. Political discourse is to throw doubt on the determination of the support if any one bank.The British finance minister, George Osborne, told the BBC: "People ask me how to prevent the British deposit banks to be in the future? The government is to prepare. As a result, the rating agencies believe that banks will have to prove that they themselves can pay their bills. "

Indeed, the government wants to avoid having to replicate the scheme in 2008. The State had then had to inject billions into troubled institutions, including 22 billion for RBS.

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easyJet and Air France continue their game of chess in the provinces. Less than a week after the offensive of the French company in the transport at low cost with the opening of a first regional base in Marseilles, the British low-cost replica by creating two new in Nice and Toulouse. They will open in April 2012 to welcome their first passengers in the summer. easyJet cuts the grass under the feet of Air France, which provides just opened its next two regional bases in both cities in spring 2012 (and then to Bordeaux in the summer of 2012).

EasyJet's management denies replicate but admits that the decision of Air France has an incentive to "accelerate the decision" to open a regional basis in good standing since the two cities where it already departures. This, to "increase opportunities for routes from both airports.""These new capabilities will allow us to open 10 new routes from those cities, which should take us half a million extra passengers a year," says François Bacchetta, easyJet Chief Executive Officer of France in an interview with Paris .

Grid regions

With this new investment of 100 million euros, easyJet, the second company in France with 12 million passengers a year, will lead five platforms which lights Roissy and Orly airports with a fleet of 24 aircraft cheapest personal loan rates. From Nice, easyJet will provide 250 flights a week with 5 new destinations in France and Europe and from Toulouse, it will operate 140 flights per week with 5 additional links to the province and Europe. The low-cost continuing its policy of grid areas in developing on "inter-market" which, she says, is "far from saturated."

The battle is also raging in the price. Air France has built its one-way offer from Marseille on triptych rate: 50 euros for France and some European destinations (Milan, Düsseldorf), 80 euros for Athens, Istanbul and Casablanca and 110 euros for Moscow. This, TTC and with "all the free services of Air France as a snack, newspaper and checked baggage." An allusion to some low-cost practices that charge these services. easyJet says its starting price will be "cheaper" than those of Air France, without further specification. Now remains to be seen what will be a replica of Air France Ryanair attacks directly with its new decentralized basis of Marseille.

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In recent years, Dexia has moved from an institution offering a regular dividend to a penny stock that ruined its shareholders. The action is worth more than 1.06 euro on Tuesday, down 94% in five years. Until 2010, Dexia was part of the CAC 40 after entering in 1999. We now know the epilogue of a story that could be summed up in three parts: the time of ambitions, a last-minute rescue and collapse.

In 1996, the marriage of Credit Local de France and Credit Communal de Belgique is celebrated with great pomp. It gives birth to a bank player in the financing of local authorities in both France and Belgium. Rather than focus on this specialty, the leaders will demonstrate a burning ambition in the years that follow. The acquisitions will increase. Nothing is too good for executives who leave the checkbook repeatedly.No matter if capital does not follow. Access to liquidity seems unlimited and redemptions can be easily financed. Dexia is the time highly rated by rating agencies.

In 1997, Dexia is a 40% stake in the Italian specialist of financing local authorities. Units held will be brought to 60% in 1998. Especially in 2000, Dexia made two acquisitions that will prove disastrous. The property bought FSA in the United States for 2.7 billion euros. This company called credit enhancer has become over the years one of the insurance behemoth of financial securities. Moreover, again in 2000, Dexia bought Bank Labouchere. A few years later, a scandal will cost several hundred billion euros to Dexia. It turns out that customers of Labouchere bought shares on credit, the establishment of incentive. The crash of 2001-2002 and ruined.

Payment of a dividend is known to be regular and copious

At the time, financial analysts and portfolio managers criticize little Dexia. The bank made steady progress in earnings per share. It pays a dividend is known to be regular and plentiful. Many individual shareholders, entered the capital of Crédit Local in 1991 and have remained loyal to Dexia. No one really makes the fact that the risk profile of the bank has been completely changed.

In 2004-2005, Dexia is the subject of many rumors of marriage. Pierre Richard, the head of the bank, Dexia is that merged with the Italian Sanpaolo. He turned down its directors and officers in Italy. In September 2005, leaders refuse to merge with Dexia Fortis. Rumors of an alliance with Societe Generale also circulating, but nothing concrete emerges from the noise corridor.At the end of 2005, the action is close to 20 euros.

In 2006, is welcomed. It enables Dexia to enter the promising market of the local retail banking. In late April 2007, Dexia's most button above historical 24.51 euros.

Its subsidiary FSA is vulnerable

When the subprime crisis broke, the bank is discreet. She knows that its subsidiary FSA is vulnerable. The leaders tried to reassure but the 2008 financial crisis and the bankruptcy of Lehman Brothers will put the institution to its knees. In autumn 2008, the CDC, the State and the Belgian regions implement a capital increase of EUR 6.4 billion. In addition, the Belgian, French and Luxembourg governments were forced to implement security to enable the bank to borrow again.

Despite reduction measures and restructuring the balance sheet, and his teams have not managed to recover the bank.The task was daunting given a totally unbalanced balance sheet. The latest figures, Dexia had 6.9 billion euros of capital to 517 billion euros of assets. Shareholders are ruined and no one said that the action could still have value in the coming months. As for local governments, many of them are dissatisfied because the Dexia led to raise loans in Swiss francs to take advantage of the difference in interest rates. Only the value of the Swiss franc has soared, and the weight of loans proved unbearable for many communities.

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The market decline occurred in August and September did go up in smoke the equivalent of 216 billion euros over the market value of CAC 40 companies since January 1. During the one day of 22 September, falling 5.25% of the benchmark index of the Paris Stock Exchange has removed 40 billion euros, as much as the market capitalization of the size groups of EDF and L'Oreal!

Today, all forty major French companies weighed on the stock exchange the equivalent of 794 billion euros. This figure may seem high to the uninitiated, but it is actually little more than the book value of assets of companies entering the CAC 40.The fall in prices has reached such proportions that the largest industrial groups in the rating on the stock exchange deal at the price of factories, stocks of goods or land on which are built warehouses or stores.

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This Saturday is the big day of the first Air France flight operated since its "base" of Marseille. A double "revolution" for the French company. This, after the creation of Transavia, made a new incursion into the territory of low-cost, with an offer less expensive than its usual rates. Low prices made possible by an innovative organization that plans to base in Marseille to Paris and not personnel and aircraft. The flight time of the first will be more concentrated, and rotating equipment more efficient, allowing the company to realize operational cost savings estimated at 15%. 130 pilots and 250 flight attendants volunteered.

LE FIGARO. – Air France opens its first base on Saturday from province to Marseille will be followed by Nice, Toulouse and Bordeaux.What are your rules for the selection of the fifty new roads you open on the four bases?

Bruno Matheu. – On each base, some of the routes we operate already own and through our regional subsidiaries will see capacity increase as in Marseille and Lille. Due to lower our costs, we can offer a very innovative pricing. In addition, there will be many new destinations: 13 from Marseille. We chose these routes according to their traffic potential, but also their competitive position.We have deliberately avoided the roads on which two low-cost competition or are already in those to the hubs of our main European competitors.

In the current state of reservations, are there any lines that work better than others, especially when they compete with an offer of low-cost companies like Ryanair?

Among the destinations that start strong include new routes to the Middle East (Beirut, Istanbul). We offer "all inclusive", which is not the same as that of a low-cost, has found its place.The many services that are and will remain free: registration, a snack on board, the daily press … make the trip easier and more enjoyable credit score.

What do these bases to Air France?

In addition to new roads, with the creation of databases province is a small revolution that is underway within the company towards more decentralization, towards more accountability. Each base will function like a small company with the Regional Director will be the "boss". Commercial agent of call, hostess, steward or pilot, everyone has a responsibility to Marseille. The objective is to improve responsiveness while being firmly rooted in local life.The strong motivation of our teams will enable us to do.

Lyon Why does it not in your list of bases?

In Lyon, our current operation in place for many years, follows a different logic: the planes converge to Lyon early in the morning to feed a first range of correspondence, while on the bases they make their first step at the start of the base. In addition, our policy is much more focused on business passengers. However, discussions are ongoing and we do not exclude changes in our model Lyon.

Are there mass transport from province to province?

The cross-linking major regional cities without passing through Paris undoubtedly represent a real potential for Air France and its regional subsidiaries. Today the car is our main competitor in this type of lines.To us to convince potential customers of the benefits of air transport. The basics of province should be involved.

Why the market capitalization of major airlines is so low?

Air transport is a cyclical business and sensitive to the economic development because the traffic is directly related to growth. Uncertain times we penalize strongly, especially where oil, which accounts for 30% of our costs, is at levels as high. But our current market capitalization does not reflect the value of our business portfolio or that of our assets.

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