Europe

The common European currency is between two strong clusters against the US Dollar on Monday, as the currency exchange rate previously on Friday retreated from the 1.12 level by the end of day’s trading session. However, the resistance from the upside is stronger, as the support cluster, and the daily aggregate technical indicators forecast a fall for the currency exchange rate during today’s trading session. Due to that, it is most likely that the Euro will depreciate against the Greenback by the end of Monday’s trading.

The British economy rises again: after the collapse of the economic data in July, the month of August marks a turnaround. Today, Markit issued the UK services data, which recorded a strong rise from 47.4 to 52.9 points. And so, though in July there had been the lowest level in last seven years, August recorded the largest month-on-month gain in its 20-year history.

Chris Williamson, economist at Markit, said the figures, claiming that, "the risk of an imminent recession would be avoided", although he called for caution, arguing that as well as July data would have overestimated the effects of Brexit , those of August would show excessive optimism, the average of the two months, then push to show cautious.

However Williamson added: "Many companies are seeing business return to normal either simply by rising customer confidence or a stoic determination to ‘Buck Brexit’ and carry on regardless."

The insurance giant Axa, Belgian division, announced to the staff that by 2018 will remove 650 jobs as part of a strategic plan that aims to "focus its activities" and to "accelerate the digital transformation."
Concurrently, the company has planned investment of 200 million Euro over 5 years for the strengthening of mobile services offered, while expenditures related to logistics, IT and geographical presence will be reduced. Axa Belgique will transfer the activities of Charleroi, Leuven, Ghent and Eupen in the Antwerp offices (north), Liege (south-east) and Brussels.

Russia and Saudi Arabia signed an agreement aimed at stabilizing oil prices. It was announced on the sidelines of the G20 summit in China by the Russian Energy Minister Aleksandr Novak and the Saudi Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih.

Minister Novak showed that Moscow and Riyadh are sharing a strategic partnership in the energy sector, stressing that the deep mutual trust between the two countries permit to offer a joint solution to global challenges. "We are ushering in a new phase of our cooperation today. Our energy cooperation is moving towards a deeper and closer interaction", said Novak, adding that this was possible" thanks to relationships with our Arab friends. " The Russian Energy Minister also highlighted how this is a moment "historic", which states the rapprochement between OPEC countries and oil-producing countries that are not part of OPEC.

The global economic recovery is losing momentum and should be supported: it is the message that Christine Lagarde, Managing Director of the International Monetary Fund launched the leaders of the G20 countries and the whole world, on the eve of the summit of Hangzhou, China, on 4 and 5 September. Support for demand, structural reforms, revival of trade, are the strong actions indicated by Lagarde.

"The pendulum of politics is likely to move against economic openness and without strong action the world could experience a disappointing growth for a long time," she said, calling to boost trade and to send positive messages on globalization, which in many benefited. "It ‘s easy to blame trade for all the ills of a country: block free trade would result in stopping an engine that brings benefits in the world for decades".

September will mean mergers in banking sector? It seems the trend that appears in the market, also listening to the words of the number one Deutsche Bank, John Cryan, who, denying that Deutsche Bank is considering a merger with compatriot Commerzbank, said that "In Europe, serving more mergers in the banking sector », during a conference in Frankfurt.

The difficult situation of the European banks is plain for all to see. "Today in Europe the banks are less risky than before the financial crisis," said Cryan, "but also much less profitable."

Swiss banks have hired more staff during the first half of the year, thus reversing the trend. These additional places, however, were created abroad, while in Switzerland the number of employees has decreased.

Domestically, the Swiss banks have in fact reduced the staff by a significant 4.1%, writes the Swiss Bankers Association as a barometer of the banks published today. The 162 banks considered cut 3,454 employees in Switzerland. A major part of this decrease contributed to the foreign banks, with a reduction of 2,036 jobs, or 11.2% of its workforce. On the contrary, the Swiss banks have created over 6,700 jobs abroad.

he greek bond market remains the most lucrative on the European scene. Athens has in fact placed 1.14 billion of six-month bonds offering a yield of 2.97%, unchanged from the previous auction. The demand from institutional investors was stable with a coverage ratio of 1.30. Yields also remain stable with decades of greek bonds offering a yield of 8.10% to the 70.30 price. As for bonds maturing in 2019 and 4.75% coupon, the rate stood at 8.60 compared with a price in area 91. The stabilization of prices is determined by the GDP, no longer in free fall, but in the process of settling.