The S & P 500 has foundered on the threshold of 1360 points, which corresponds to a peak recorded in May 2011 and the crossing of which would have foreshadowed a continued bullish.

The benchmark index fund managers ended down 0.33% (4.55 points) to 1,357.66 points. The Dow Jones lost 0.21% (27.02 points) to 12,938.67 points while the Nasdaq composite yielded 0.52% (15.40 points) to 2,933.17 points.

Investor pessimism was fueled by the unexpected contraction of private sector activity in the euro area in February, according to preliminary estimates from Markit. In addition, export orders to China have suffered their contraction in February the highest in eight months.

"We had quite low statistics from Europe and China, but what has happened especially today (Wednesday) is that we lived another day of agitation while the S & P is so close to the key level of 1,360 points, "said Jack Degan, chief investment officer at Harbor Advisory.

PREDICTION OF DELL disappoints, TITLE PLONGE

"There is undoubtedly a technical effect on the market and sales of the movement today is related to that. If we cross this level and remain above the market may indeed rise again. "

Financial stocks were among sharpest declines in the session, as investors worried the banks' exposure to the European economy

……. .. The S & P financials yielded 1.27% and the KBW bank index lost 2.04%, while Morgan Stanley, Bank of America Corp., Citigroup abandoned between one and , 9% and 2.9%

. Dell plunged 5.82% to 17.15 dollars. The computer manufacturer has reported results below expectations on account of its fiscal fourth quarter and said, anticipating a revenue below Wall Street forecasts for the current quarter.

According to Thomson Reuters data, about 424 companies in the S & P 500 that have released their quarterly accounts, 64% have exceeded analysts' expectations.

Countries in the euro area agreed Tuesday morning on a new bailout unprecedented in Greece of 237 billion euros in total. The agreement came in the night after more than thirteen hours of negotiations between the Finance Ministers of the monetary union.

The bankruptcy of Greece is avoided

A very short term, the overall agreement found Tuesday that Greece can not default on a repayment period of 14.5 billion euros which falls on March 20. It was urgent to avoid it because it was necessary to launch the erase operation of the related debt before Wednesday. But the plan is mainly to provide a breath of fresh air to the medium-term financial countries. It is made secure its payments until 2014 with a new steering wheel of government loans (EU and IMF) to 130 billion euros. This windfall is in addition to a first support plan of 110 billion agreed in May 2010 and over 70 billion has been paid. The funding will also replenish the Greek banking system that otherwise would have exploded.

Greece has a deletion of unprecedented debt

Long regarded as impossible, the deletion of part of the Greek debt will take place. The final negotiations have even led to all creditors make an extra effort. Banks and investment funds, first of all, are invited to accept a loss of 53.5% on the amount of their loans to Greece (the face value of bonds), against 50% previously requested. Which will erase 107 billion euros of debt. Unprecedented in world economic history. In 2002, Argentina had erased a slate of "only" 73 billion euros.

But private creditors are not just write off more than half of capital they have lent. They also waive a portion of interest thereon. That's why we say the final loss exceeds 70%. Concretely, in effect, banks will exchange their current Greek debt obligations against new and lower value of the securities issued by the Relief Fund of the euro area. Since the duration of these securities will be extended and reduced interest rates, the debt burden of Greece will be alleviated. An absolute necessity. Given the forecast growth of 2% and inflation of 2% also, it is necessary that the interest rate charged is less than 4% so that Greece can hope to reduce its debt stock. But the average final found is 3.5%. A priori sustainable.

European states and the ECB will participate in the restructuring

The extra effort of private creditors responds to a conclusion: the inadequacy of the plan concocted in December. Revised up, the intensity of the recession is indeed allowed to bring the Greek debt to 129% of GDP in 2020. Far from the goal of 120% presented as sustainable. It had to be clear even more debt, or pay more money. But European states did not want to put their hands in the pocket. They nevertheless agreed to lower the interest rate on bilateral loans in the forefront of aid to Greece.

There is also a gesture of the ECB which will put the pot of restructuring the 45 to 50 billion Greek bonds it acquired in the secondary market since 2010. Redemptions made at deflated prices that allow it to consider a capital gain when trading. The potential windfall is evaluated according to the sources between 10 and 13 billion euros. What appeared to fill the holes in the support plan. Remains to be technically and legally finalize the transfer. Not clear when considering that the ECB does not have the right to directly fund the States. The solution could then go through a transfer EFSF.

Greece was put under trusteeship almost

The debates were intense between creditor countries in favor of a trusteeship of Greece – like the Netherlands – and those who wanted to preserve the appearance of maintaining Greek sovereignty. In fact, monitoring will be strengthened to ensure that the country implements the requirements of the EU and the IMF. The government has also given many pledges as well. It adopted a new plan savings of 3.3 billion euros this year, after already 7 austerity plans, at the cost of violent street protests and renewed political turbulence. And the leaders of both parties in the ruling coalition, the Socialists and New Democracy (right), have pledged in writing to respect the promises of budget savings and reforms even after the early parliamentary elections, which should be held in in April. The European Commission will be much more present in Greece to ensure it does not deviate from the targets.

The plan will not be enough by itself to save Greece

Finally, all measures should allow Greece to reduce its debt to 120.5% of GDP in 2020. A figure still very high. The debt restructuring is necessary but not sufficient to guarantee the country's rescue. Undermined by the economic recession, with five consecutive years of falling GDP, the country has just won the time to implement reforms meant to help revive growth. The risk is to see the austerity shut Greece in the vicious circle of recession. With all possible disaster scenarios in this case: social explosion and release of the euro area.

Three uncertainties remain on the closure plan

In fact the agreement was negotiated on behalf of private creditors by their representative, Charles Dalara. It remains to be convinced individually up to private creditors to voluntarily participate in this plan. Charles Dallara has certainly said Tuesday its confidence in this area. But he did not rule out that Greece coercion if the participation rate was not reached. The parliament may well pass a law that would require creditors to take their losses. With unknown consequences. Voluntariness is especially necessary to avoid triggering the payment of CDS, the famous insurance against defaults. But even if the market seems to be small-about 3.5-billion, no one has forgotten the role of CDS in the 2008 financial crisis.

A second gray area concerns the IMF. The institution seems again ready to participate in public aid of EUR 130 billion, but the amount has not yet unencrypted. It will make its decision in the second week of March, said its executive director, Christine Lagarde. Finally, it will technically see how the ECB will succeed in Greece enjoy any capital gains generated by the exchange of its package of Greek bonds.

The hope that the ongoing discussions lead Monday at the meeting of finance ministers of the euro area in Brussels has revived since the government of Lucas Papademos has detailed this week further budget reductions, of around 335 million euros. 

In total, the law of austerity passed by Parliament on Sunday and demanded by the "troika" of international creditors of Greece (EU, IMF and Central Bank European) provides € 3.3 billion of budget savings with the objective of bringing the sovereign debt of Greece from 160 to 120% of GDP by 2020.

But the camp of the "skeptics", led by Germany, is concerned about the Greek government commitment to reduce debt.

Sunday, only a few hundred people gathered early in the afternoon before the parliament. But a week after the scenes of riots that followed the adoption of this new austerity measures by the deputies, the Greek police is on alert.

"Maybe some people have been frightened by the riots of last week," said Costas Xenakis, a protester of 70 years which explains the low mobilization.

The retired state electricity company notes, however, that "the austerity measures hit really retired." "We can not sit and accept it," he adds.

Behind him, a banner demanding the cancellation of the "harmony of hunger", testimony of the anger felt by a large part of the Greek population vis-à-vis political representation, alleged to have allowed to accumulate mountains of debt and have favored the wealthiest through fiscal laxity.

Resentment may be expressed most strongly in the polls in parliamentary elections, expected in April.

A poll released Sunday, the Socialist Party (PASOK) and the conservative right New Democracy – the two political families dominating Greece since the end of the colonels' regime in 1974 – did meet between them only a quarter of the votes. 

Another study highlights the concern of the population: while 73% of Greeks say they want to stay in the euro area, only 49% think the country will succeed in the next two years.

"ILLUSORY REQUIRE (…) WHAT HAPPENS BY 2020"

From Monday's meeting in Brussels will depend on aid payment of 130 billion euros needed to prevent Greece from falling into bankruptcy at maturity of 20 March, when a large debt repayments are scheduled.

"The Greek people did everything he could and we are determined to keep our commitments," said Christos Papoutsis, Minister of Public Safety, before an emergency meeting of the government.

For Maria Fekter, the Austrian Minister of Finance, it seems that an agreement is finally coming into place. "I do not think there is a majority to engage in any other way because another way would be extremely difficult and cost a lot lot of money," she said on Sunday antenna Austrian television.

But Jean-Claude Juncker, the president of the Eurogroup, warned on the eve of the weekend there was still work to be done by Monday.

The preparatory contacts continued Sunday between finance officials of the euro area. The central challenge is to bring the Greek debt at a "more sustainable", the order of 120% of GDP by 2020.

Officials from EU and IMF consider that this objective – which requires that Greece is returning to a budget surplus next year – will not be required and, depending on the sce nario now dominant, the idea would be to reduce the deficit to 129% of GDP by that time.

"Today we speak of 129%, a figure that takes into account certain assumptions. This revision is due to poor growth figures, not only in Greece but throughout Europe, "says Pantelis Kapsis, spokesman for the Greek government, in an interview published Saturday by the daily franç ais Liberation

. "It is also unrealistic to predict with much accuracy what will happen by 2020" , says he

. In this new scenario, it may be necessary to obtain the extra mile sector Private

.

The European Central Bank has submitted to a vote Thursday its Governors an exchange transaction Greek bonds in its possession against new titles. The ECB refused to comment on the subject. However, according to German daily Die Welt, the swap would have been endorsed. It would be ongoing and should be completed no later than Monday.  

The exchange of its obligations – practiced with the central banks of the Eurosystem – the ECB avoids putting himself under the blow of a law in preparation for Athens plans to require all its creditors to forego some of their Greek assets.

It will also potentially to the institution to realize capital gains. Indeed, the exchange would be based on the nominal value of shares – estimated at 45 to 50 billion euros, while the ECB has purchased the cheapest on the market in 2010, supposedly at a discount of 70% 80%. The added value thus generated would be redistributed to countries in the euro area, and could ultimately benefit to Greece.

According to AFP, the President of the German Central Bank (Bundesbank) Jens Weidmann voted against the project. For Mr. Weidmann, in doing so, the ECB "is liable to a complaint of private creditors" of Greece, who will themselves forced to take a loss. In addition, it considers that this may cause a lack of investor confidence to the whole euro area, for fear that such an initiative is also taken for other obligations in possession of the ECB.

The institution also bought these last months of the Portuguese debt, Irish, Spanish and Italian under its repurchase of debt of troubled countries on the secondary market. Private creditors of Greece agreed to a deletion of 100 billion Greek debt to help the country recover its finances. A plan to which the ECB has always refused to take part. But the pressure has made important recent weeks to consent to an act while the voluntary contribution of private creditors may be insufficient.  

Last week, the ECB president Mario Draghi had suggested that the ECB was ready to redistribute the profits it could realize on such obligations to members of the euro area, but that in no circumstances consent to losses .

TUI, which unveiled Tuesday its intention to abandon completely its activity in the container, said Wednesday aimed a slight increase in gross profit for all exercise.

The group said it had reached an agreement with the majority shareholder of Hapag-Lloyd in order to reduce its shareholding to 22% against 38.4% currently. The agreement, a number of components, it must report a total of 700 million euros in cash and help pay down debt.

TUI, which controls the first global tour operator TUI Travel, posted a first quarter operating loss gross of 147.3 million euros and a turnover of 3.45 billion euros.

Analysts polled by Reuters on average expected a loss of 146 million euros and a turnover of 3.38 billion.

The German company said not to aim for a full hour acquisition of TUI Travel but reaffirmed its intention to strengthen its tourism operations.

Around 0900 GMT, the action TUI gained 4.7% to 6.5 euros.

This firm order is in addition to the 50 A320neo signed at the Dubai Air Show last year, the European aircraft manufacturer said in a statement.

The A320neo, remotorisée version of the A320 will enter service in 2015, is marketed on the basis of a list price displayed for about 73.5 million euros.

The device is supposed to provide airlines with a 15% reduction of fuel consumption. 

Its popularity among companies has enabled Airbus to sell almost twice as many planes as its U.S. rival Boeing in 2011, although he acknowledged he has trouble keep the advantage in 2012, with the response of 737MAX, improved version of the aisle of his American rival.

By itself, the "neo" garnered 1,226 orders last year. The A320 Family as a whole has more than 8,300 orders to date and some 5,000 deliveries, Airbus said.

"The promises of Greece are no longer sufficient for us", said Wolfgang Schaeuble. Referring to the new austerity plan in which the Greek deputies must vote this Sunday, he stressed that the previous were not implemented in full ;.

Citing polls, the minister stressed that the Germans are largely in favor of an international aid to Greece. "But it's important to say that it can be a bottomless pit. This is why the Greeks will finally have to clog the well. Then we can put something. At least people are now beginning to ; realize that it will not work with a bottomless pit

. "Greece must do its homework to become competitive, it requires a new rescue plan or some other way that we do not want to (…) "he says referring to an output of the euro area

… …… Asked if such an outcome is possible, Wolfgang Schäuble responds: "Everything is in the hands of the Greeks themselves. But even in that event, on which no table, they remain an integral part of Europe "

." We are pleased to offer our assistance, but we should not give others the impression that they have not done enough. Each state is responsible for itself, "said he, judging the rescue of Greece harder than German reunification

…… And … the minister added: "The Greeks are a special case (…) The Portuguese Government did a good job."

The fourth British bank by capitalization said it had reduced premiums by 35% in its investment bank Barclays Capital, compared to the previous year, the various bonuses across the entire bank being reduced by 26%.

Barclays, the first major UK banks to publish its accounts, has reported pretax profit of 5.9 billion pounds (7.0 billion euros) in 2011, down 3%. The consensus of analysts gave 6.1 billion.

The result of Barclays Capital (BarCap) has decreased to 1.8 billion pounds in the fourth quarter, down 19% over the previous three months.

The fall of the bond trading business and the board has sealed all the banks in late 2011 and BarCap has suffered more than some U.S. competitors but unless Credit Suisse.

Impairment losses on bad loans have fallen by a third in 2011 to 3.8 billion pounds.

"We believe that the economic and regulatory environment remains dificult in 2012," said general manager Bob Diamond said in a statement.

A meeting scheduled for Tuesday was postponed, the leaders of these formations have not received the text of the draft agreement on the bailout of 130 billion euros.

Several successive deadlines were exceeded, failing agreement between the socialist PASOK, New Democracy conservatives and the far-right LAOS.

The three parties have received the document expected Wednesday on the eve, which details the general principles and conditions of financial aid plan, said an official of one of these formations. 

A fifteen-page document adds another, twice as long, detailing the process of implementing reforms and austerity measures.

The leaders of three parties – Antonis Samaras for New Democracy, PASOK George Papandreou and the George Karatzaferis for LAOS – were originally scheduled to meet early Wednesday afternoon, but the meeting has also been postponed twice in the space of two hours.

"NIGHTMARE OF THE WATER DROP"

Karatzaferis specifically requested that all documents, written in English, be translated into Greek, an official reported.

Another party has requested a delay of several hours to consider the draft agreement before the start of discussions, said another official. 

A news website has published an open letter to Lucas Papademos, calling him to "stop this torture of the water drop."

"The Greeks can not longer endure the torture of this constant insecurity, which destroyed the country and hurt our dignity as a nation. Prime Minister must stop these incessant haggling that demean the country and its citizens, "the site.

Karatzaferis justified the delay in the process.

"We can not simply say yes or no as the competent public authorities will do us no assurance that these actions are consistent with the Constitution and the country they come out of the crisis," he said.

"There is time. Since the country's future is at stake, we will find the time. "

Depending on the end of the day Wednesday in Athens, the Eurogroup could meet to discuss the rescue plan

. Greek President of the Eurogroup, Jean-Claude Juncker, said on Wednesday it would decide in the day to collect or not the finance ministers of the euro area Thursday

….. This …. is that once discussions are finalized in Athens a Eurogroup meeting may be convened, said the Prime Minister Luxembourg, speaking to reporters in Luxembourg

. "I will decide tonight whether there will be a meeting of the Eurogroup tomorrow night, "said Jean-Claude Juncker." It will depend on the outcome of discussions in Athens. "

The social partners have completed Monday, February 6 negotiations on simplification of the partial unemployment, desired by the government, lamenting the CGT still not be reached "unification" of different compensation schemes. Following a meeting at the Paris headquarters of the MEDEF, the CFDT, CFE-CGC, CFTC and FO said they would sign the draft agreement inter-professional, the CGT had not yet made its final decision. The side of employers, the MEDEF, UPA and CGPME should also give their approval.  

Despite disagreements, all stressed the need to be pragmatic in these times of crisis, short-allowing companies to cope with downturns without fire. This agreement simplifies one of the two systems of compensation available in case of partial unemployment: the partial activity of long duration (APLD), far less used than the conventional allocation. Businesses will be able to use the APLD for a period of partial unemployment for two months instead of three months minimum as far.

Moreover, Unédic will compensate the employee at the first non-working hours and not from the 51st hour. Thus the State and indemnify the employee Unédic up to 7.23 euros in the first hour (7.84 euros for companies with fewer than 250 employees), against 5.23 currently, some welcome support for the employer.  

The company is committed to keeping the employee twice the time

The agreement "simplifies the device", especially for small businesses, said the negotiator of the CFDT Lawrence Berger. "We are still far from what is sought, namely the unification of devices for partial unemployment," lamented his side Maurad Rabhi, the CGT, the first French union. Moreover, "nowhere in this text, it was possible to the consideration that was negotiated in 2009, which was to preserve jobs," he said.

When a company uses the APLD, she is committed to preserving the jobs twice the time during which employees were to short. For example, an employee experiencing an inactivity of three months, the company agrees to keep at least six months. This agreement will be tested until September and will be given a suite "in light of experience." To set this up, Unédic will release 80 million euros, which will add 40 million remaining on a budget of 150 million dedicated to short released in 2009.

This text comes as the government announced last week the elimination of prior administrative authorization. So far an employer who wanted to have recourse to short should apply to the administration which had 20 days to notify its decision. During the "Social Summit Emergency" on 18 January President Nicolas Sarkozy announced measures against unemployment, and including € 140 million to boost part-time work.