Sale of Chrysler, GM filed for bankruptcy and Opel acquired by Magna.

[RTFX-Trading]

Sale of Chrysler, GM filed for bankruptcy and Opel acquired by Magna. The U.S. dollar hits its lowest level this year against the euro at 1.4185.

What's new:
United States: the bankruptcy court approves the sale of Chrysler to a group of investors led by the manufacturer Fiat.
U.S.: GM is expected to file for bankruptcy today; the U.S. State takes 60%.
Germany: Opel acquired by the Canadian supplier Magna.
United States: fall of 5.70% of GDP in Q1 2009.
United States: a further increase in the households’ confidence - Michigan.
U.S.: Chicago PMI index sharply down to 34.9 in May.
United States: net rebound of activity in the New York area - NAPM.
England: rising property prices for 2nd time in 3 months.
Japan: 19.10% drop in the car market in May.


Today:
09h48 France : PMI manufacturing index May, expected 43.1, previous 40.1
09h53 Germany: PMI manufacturing index May, expected 39.1, previous 35.4
09h58 Euro zone: PMI manufacturing index May, expected 40.5, previous 36.8.
10h28 England: PMI manufacturing index May, expected 44.0, previous 42.9.
14h30 United States: household income April, expected -0.20%, previous -0.30%.
14h30 U.S. PCE price index April, previoust 0.00%
14h30 United States; price index "core" PCE April, expected 0.20%, previous 0.20%.
14h30 Canada: GDP March, expected -0.30%, previous -0.10%.
14h30 Canada: index of producer prices April, expected 0.10%, previous 0.30%.
16h00 U.S. Construction spending April, exoected -1.30%, previous 0.30%.
16h00 U.S. ISM manufacturing index in May, expected 42.0, previous 40.1.

Rates in Asia and Indices:
EURUSD: 1.4165-1.4099.
USDCHF: 1.0699 - 1.0658.
GBPUSD: 1.6245 - 1.6162.
EURJPY: 134.80 - 133.89.
USDJPY: 95.48 - 94.67.
DowJones: 8,500 +1.15%.
NASDAQ: +1.29% 1'774.
S & P 500: 919 +1.36%.
Nikkei: 9'678 +1.63%.
GOLD: $ 983.

Comments:

The U.S. manufacturer General Motors is widely expected to file for bankruptcy today and begin a reorganization process in the coming two to three months. Bankruptcy proceedings in U.S. approved the sale of U.S. automaker Chrysler to a group of investors led by Fiat for two billion dollars. The German car manufacturer Opel has been bought by the Canadian supplier Magna, together with a group of Russian partners. This cleansing of the American car market, coupled with encouraging figures which show a stabilization of the economic crisis, has pushed the market to address the "carry trades", which in turn leads to a rising euro, pound sterling, the Australian dollar and New Zealand dollar. The dollar and the yen in turn are under pressure. Precious metals are also requested, an ounce of gold is closer to the psychological point of $ 1,000.

The U.S. Treasury Secretary, Geithner, reaffirmed last night its policy of a strong dollar and the Chinese government reassured that their massive holdings of dollars are safe. "We believe in a strong dollar", he said. "The Chinese financial assets are very safe." I remind you that China is the largest holder of U.S. Treasury Bond.

Good Day

Nicolas Longchamp
RTFX Ltd
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