It would have been easier to listen to usThe whole being valued at 65 billion a yearFor the CEO of Bourbon the indicators are indeed well orientedEstablished physicians are less concernedInvestors they do not snapped his titlesThat this time may include measures of magnitudeAnd it is again the left which has benefitedA game of musical chairs opens to replaceThe constitutional reform is passed by thereWithin a decade their number has doubledStock markets are still in hue and to dia. After the violent Monday relapse, which has undermined the spectacular rebound from last week, the trend is bullish yesterday on the major centers around the world. Encouraged by the rise of the New York Stock Exchange, the indices of the old Continent are Gets a health in the hope that calls for a marked decrease of interest rates of the European Central Bank and the Bank of England to be heard tomorrow. Worn by a Dow Jones index progressed by 2.36 at the time when they closed their doors, the European stock markets are therefore distributed strongly forward. In Paris, the CAC 40 index thus won 2.35, ironing so widely over 3.100 points. Frankfurt and Madrid, they, particularly well fired their PIN of the game yesterday, with increases exceeding 3 by the end of trade. In the evening, Wall Street continued its rise, index Dow Jones is offering even a rebound of 3.31, to 8.419,09 points at the end.
In the current context, such movements are not stop investors of a particularly deleterious economic climate. If nobody consider depression that should avoid the lower prices of raw materials coupled with vigorous policy measures taken by Governments, operators expect a long recession and extended, the worst no doubt that the world economy has experienced since the 1980s. The issue that they arise today is that if the substance has been affected by markets that have already dropped from 40 to 50 since January.
Profits floors
In the opinion of professionals, indices already take into account a decrease of 30 to 40 of the profits of the business and a consequential decrease of approximately 15 to 20 of the dividends paid by the latter. Despite these perspectives, the fall in prices was such that markets have today levels of particularly low value, the lowest since the 1980s, even during the 1970s. Is this for all sufficient to scholarships rekindled with the increase "If the markets have already integrated these declines of profits and dividends, Editor's note, a truly sustainable recovery will not be considered as long as the benefits have not reached their floor", believe the managers of ING Investment Management. Generally, markets, that anticipate, bounce six months before the flow on the profits of companies is in sight. However, the time is now further revisions the beneficiaries capacity down companies that analysts, always late, take into account the transfer of the consequences of the financial crisis on the real economy.
Benefits do not recover before the end of 2009 at the earliest, or even 2010. The stock market is therefore no reason to find the path of rising before the fall. So it still must absorb of here the important sales assets which are forced to "hedge funds" to deal with requests for redemptions of their clients. The trend may therefore remain very discussed a long time yet. At best, markets will evolve in a wide corridor of fluctuations, revisions to the decline in results preventing a recovery and low valuations damping down. What does not, however technical rebounds as observed in the past few sessions.
