General Electric (+13.87 %) soared
10-year Treasury rate above 3.00 %
Oil below $40 /bbl

The 10-year Treasury rate reached 3.05 %, the first time above 3.00 % since November 08. On Tuesday, $23 billion in one-year notes and a record $32 billion in three-year notes will be on sale. Wednesday will bring $21 billion in 10-year notes, followed by $14 billion in long bonds the following day. Both long-term debt sales are for the most ever

Federal Reserve Chairman Ben Bernanke testifies before the House Financial Services Committee about the Fed's
"extraordinary efforts to provide liquidity in the current financial crisis."
New York Fed President Bill Dudley speaks at his district's conference on inflation-indexed securities.
General elections in Israel
Timothy Geithner, former president of the Federal Reserve Bank of New York, now US Treasury secretary, is scheduled
to give evidence before a Senate oversight committee considering a new plan for the troubled asset relief programme.
A three-day summit of Israel's decision-makers, focusing on the balance of national security with regard to international
relations, society, economics and the Jewish world, begins in Herzliya
Super Return, a three-day European private equity and venture capital summit, opens in Berlin
The UK banking bill reaches its report stage in the House of Lords
World Ski Championship (Val d\u2019Is\u00e8re, France) Fev 3rd \u2013 15th

-0,6%
04.00 pm United States Bernanke testifies on Fed programs
11.00 pm United States ABC consumer confidence

Watch in theF ran ce the release of the industrial production for December due at 08.45 am which is expected to pursue its drop trend as the country which was already facing big structural issues before the world economic crisis is presently strongly hit by the global economic downturn and is about to face a deflation situation. Watch as well in theU n ited -King d om the release of the trade balance for December

After the drop of German \u2018industrial production in December released last Friday (4.6%, -12.0%YoY)it is now the turn of exports to plunge. Indeed after falling by a record in November ( -10.8%),German\u2019s exports declined of -3.7% in December as the recession is strongly hitting its main trade partners , slowing down sharply the demand for German\u2019s goods abroad. In the mean time as Germany is facing a deep recession ,importations dropped 4.1% in December. As a matter of fact the trade surplus narrowed to its lowest level for 9 years at \u20ac 6.9 billion (previous \u20ac 9.9 billion)and the surplus in current account ( the measure of all trade including services) rose from \u20ac 8.7 billion in November to \u20ac 12.3 billion in December. Germany which growth model is essentially based on exportations is strongly hit by the global economic slowdown and household consumption is not taking over. Germany who was the third world\u2019s largest economy has been lately over cross by China.

After reaching its lowest level in more than two decades in December ( 67) the French manufacturing confidence rose in January at 70. The French business confidence was led up by the government plan for the car industry of \u20ac 6 billion over five years in aid on the conditions that PSA Peugeot , Citroen and Renault make commitments on future investment and production in France. This plan will be add to the \u20ac 26 billion stimulus package already granted by the French government last month.

The European investors confidence fell from -34.4 in January to -36.1 in February. A sub index measuring current business conditions dropped to - 52.25, the lowest since the survey started in February 2003 from -37.25. European investors confidence is logically led down by the region\u2019s worst recession since world war two. The major risk for the Area is for now to face a deflation situation in which the global offer will be much higher than the demand generating a rise of unemployment , bankruptcies \u2026 To avoid such terrible situation the European Central Bank should lower its main interest rate to 1.00% as soon as possible because soon it will be to late knowing that the time frame of a rate action take between 6 to 9 months to impact on the economy./JB