Archive for the 'economy' Category
It could save Giuseppe Orsi, CEO for six months in office, supported by the Northern League.
4 billion in debt
Whatever the future president, he will have the difficult task of restoring calm in a group rocked by scandal and poor performance. In the first nine months of 2011, sales were down 21%, the loss reached 324 million euros and the debt has ballooned to 4 billion euros totally free credit score. The share price collapsed to below 3 euros. The rating agencies are threatening to degrade the group to the rank of junk bonds.
Giuseppe Orsi has already launched a restructuring plan announced divestitures and able to generate a billion euros to deleverage the group. The only sale of rail division will not suffice.
By opening on Friday morning, the 4th Forum of Avignon on the culture and economy, Nicolas Sarkozy had some reassuring news in your pocket for professionals. For him, culture is a necessary good and, in these times of economic uncertainty, we must invest voluntarily. "We have not cut the budgets of culture from three years of crisis. In contrast, the response of France to the crisis has gone through a massive investment in culture. In hard-hit areas, such as the Mosel and the North, we built the Beaubourg Metz, and the Louvre in Lens will be a success, "he said.
Before an audience of cultural professionals, including the French publishers, Nicolas Sarkozy returned to the increase of 1.5 point in the reduced VAT rate on the physical book to bring it to 7% from 1 January cash advance america."Paradoxically, this increase protects the area because all professionals have realized that it was in their interest to contribute to the effort to reduce deficits." But the head of state immediately announced a good news that has filled editors: "From 1 January, we will apply the reduced VAT rate of 7% on digital books, because there is no reason that the same cultural property should be taxed differently if it is on a support physical or digital. I hope the Commission will not oppose this initiative. "The alignment of VAT rates between the physical and the digital book (currently taxed at 19.6%) is the culmination of a struggle of several years.
The situation remains uncertain in the U.S. capital markets. Despite fears of contagion from the debt crisis in the euro area, the New York Stock Exchange was still closed up. The increase, however, is shy. The Dow Jones gained 0.14% to 12,096.16 points, the Nasdaq is 1.07% to 2686.20 points and the S & P 500 rose 0.48% to 1257.81 points.
The distrust of government bonds in Spain and Italy still has soared. Spanish borrowing rate to 10 years have in fact exceeded the critical threshold of 6% yesterday, which had not been seen since early August. Italy has in turn launched a tender coldly received.
From our correspondent in Beijing
It became the big hot topic on the Chinese Internet to the desktop as local leaders. The distress of Chinese SMEs in need of cash is in China proportions "hysterical", according to press reports in Hong Kong. To the point that the government has announced a package of measures to help them and calm the unrest.
The crisis of Chinese SMEs is symbolized by the incredible epidemic of bankruptcies in the city of Wenzhou, in the heart of the exporting province of Zhejiang. The Chinese press said Thursday that since the beginning of the year, more than 200 patrons had fled or hid after their coffers have dried up. Others have committed suicide. Some 20% of the 360,000 SMEs in the region have already had to close shop for lack of money.And the situation will get worse in January, when the Chinese New Year, traditionally the time when patrons enjoy a vacation to disappear without paying their employees. According to the New China News Agency, SMEs create around 80% of jobs in the country.
The State Council (Chinese government) has subsequently announced Tuesday a series of measures, financial and tax to help small and medium enterprises. The first is to facilitate access to credit. To do so, against the current of their policy, the authorities will allow the minimum reserve ratios "comparatively low" for local banks lending to SMEs, while this ratio was usually around 21% for large banks. Moreover, these small businesses can more easily borrow by issuing bonds. The other part is to exempt SMEs from a battery of taxes and charges.Banks are also prohibited from charging their services at prices "unreasonable."
"Informal Credit"
Wenzhou has become a symbol for it is the Chinese capital of the "informal credit". Private reserves by banks, which prefer to grant loans to large corporations, small businesses are strangled. They have no recourse but to turn to private security companies that have developed lending. The rates are incredibly high, ranging from 20% to over 100% … Some analysts believe that the share of informal loans may exceed 25% of total credit in the country. Credit Suisse has estimated that black market credit of 456 billion euros, with an increase of 50% per year.
Chief economist at the Development Research Centre of the State Council, Zhang Wenkui believes that the latest measures only bring temporary relief.And nothing will change until the banking sector do not be reformed, by offering different services to different types of customers. He has a vivid picture to describe the current situation: "It's like an irrigation system with water that would go to large trees and ignore all the shrubs." The problem is that in the short Beijing term can not open the floodgates too, failing to challenge its efforts to the credit crunch.
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The future common agricultural policy (CAP), presented Wednesday by the Romanian European Commissioner Ciolos on 2014-2020 proposes "a new compact between farmers and European society." With three challenges: food security, economic competitiveness and ecology together in preserving natural resources, and develop rural areas. Brussels each year spends about 45% of the total budget of the EU, mainly in the form of direct aid to farmers.
In the new project – budget of 435.5 billion euros – these are basic aid to boost growth and employment. "The average income of a farmer is still below 40% in other sectors," says one in Brussels. But they must be better targeted and more accurate.The Europe that "for years", has prompted farmers on the road "to productivity without constraint," should move towards "sustainable production practices," noted Ciolos.
Specifically, the aid will cover more than "active farmers", referring to the subsidies received by golf clubs or airports. They will also be progressively reduced from 150,000 euros per year per farm, while taking into account the number of jobs created, and will be capped at 300,000 euros. Dacian Ciolo wants to establish a single payment per hectare, to promote extensive agriculture and non-intensive, as is the case in France or Italy, where the aid is based on production levels.In fact, there are still large disparities between, for example, Greek or Italian farmers who receive some 400 euros per hectare, as against less than 100 for Latvian peasants no fax pay day loan.
Emergency reserve
The objective is to achieve by 2020 a rebalancing of budgets between states. The countries of Eastern Europe will see their share rise but France will continue to be the main beneficiary, receiving 7.6 billion euros a year, followed by Germany (5.1) and Spain.
To cope with crises and deregulation of markets, safety nets – private storage, mutual funds … – Brussels will be maintained and can tap into an emergency reserve of 500 million euros a year.
On the environmental side, 30% of farm payments will be conditional on good practices, namely set-aside 7% of the total area, minimum diversification three cultures.The Commission also proposes to double the research budget to promote innovation and support for young farmers under the age of 40 years, during the first five years of installation. It remains to convince the MEPs and the 27 Member States. The negotiations will be already difficult to reach an agreement by early 2013 at the latest. France has already expressed support for "the principle of greening" but believes that at the proposals from Brussels do not correspond to "the economic substance of operations." Same story with the FNSEA.
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Beijing puts pressure on the euro area. This Saturday, The People's Daily, the official organ of the Communist Party to power in China, called on European countries to act decisively to resolve the debt crisis that hits the old continent. "Europe is at a critical moment in its history. It must show great wisdom, great courage and great determination and take action. If the decision comes too late, some members of the euro area will leave "the daily warns.
Beijing, which was ready in early to invest more in Europe to diversify its three trillion dollars in reserves, could turn back if the situation does not improve quickly. "If Europe continues to dither, the situation can get worse. Foreigners who wish to help will not dare and the euro area will disintegrate.This would be a disaster for Europe and the world, "said the daily.
Nicolas Sarkozy will discuss with Angela Merkel
At the opening of Summer Davos Forum, Chinese Premier Wen Jiabao, however, had expressed his confidence in the euro zone leaders business card templates. "China believes that the European economy can bounce back," he explained. Support has already been taken in Greece, Portugal, Spain, and Hungary.
Friday, Nicolas Sarkozy, who met Greek Prime Minister George Papandreou, has again reaffirmed the determination of Paris and Berlin to support the country in which the probable default of most concern global investors. This last debate "in the coming days" with Angela Merkel of the rapid implementation of measures decided on July 21 to stabilize the euro area.For its part, Greece has called an extraordinary cabinet meeting of his government on Sunday.
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After Societe Generale and BNP Paribas, is the turn of Credit Agricole announced asset sales. The bank is expected to formalize the announcement today confirming the information in the Financial Times published on Wednesday that does not specify the amount that could take these asset sales.
Particularly exposed to the crisis in Greece with its local subsidiary Emporiki, Credit Agricole, was downgraded by one notch Mood'ys ten days ago, as its rival Societe Generale. By reducing the size of its balance sheet, the bank may, mechanically strengthen its financial soundness. BNP has already announced plans to reduce by 10% the size of its balance sheet by the end of 2012, while Societe Generale provides 4 billion of asset disposals.
This is also seeking to sell its stake in Newedge, the joint venture of Societe Generale and Credit Agricole specializing in derivatives personal loan for poor credit.According to a source quoted by Reuters, the bank will also consider transfer SGSS, its management subsidiary titles, but no decision had yet been taken.
Reorganization in North Africa and the Middle East
Tuesday, the head of Crédit Agricole in the UAE had told Reuters that the bank had closed its merger and acquisition in North Africa and the Middle East. "We want to focus on areas where we can create value for our customers," he said.
At the Paris Bourse, the Crédit Agricole yield 1.04% to 5.134 euros after climbing 13.10% yesterday, amid rumors of measures to support the banking sector in the euro area.
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Former vice president of PayPal, Reid Hoffman, 44, is a key figure in Silicon Valley. It was the first to invest in Facebook, along with Peter Thiel, in 2004. His most recent investments include Ping.fm, Zynga and Grouply.
LE FIGARO. -What is the project founder of LinkedIn?
Reid Hoffman. – I always look for broad trends. When I started to think of LinkedIn, in 2001-2002, I saw two. The first is that the world of work is changing. Around the world, lifetime employment is disappearing and every individual is responsible for developing their own skills, in a connected world. The second was the rise of the Internet. Result, LinkedIn is the platform that allows each person to develop itself to show who she is, she works with, access to other experiences and skills.We are still at the beginning of the implementation of this vision. For now, people see the opportunity in LinkedIn to stay connected with others and find experts. It is not yet to the point where people question the means to invest in themselves, become more efficient. Today, everyone googlise names and everyone can be found on Google. What people do not realize is that they can ensure that what the first track of their professional profile.
How do you change the world of social networks?
The existence of other networks has been good for us. But people still think they choose to participate when we are already in a networked world. The question is: how will we navigate intelligently in this world? Today, Facebook is the barbecue in your garden. Twitter is the equivalent of the media.LinkedIn is the desktop. There is room for other networks but it has to offer is both broad and unique. There are broad categories such as religion or sports that are not occupied. I think there will be a big player that we do not yet know who will emerge within five years.
You see Google + as a potential competitor?
+ Google is a good social product. The question is: how will he differentiation? It is not yet a competitor of LinkedIn. It could go in that direction but it is not safe. To serve the professional market, it must be specialized. LinkedIn Today provides information to industry sources. A circle with your co-workers does not go into this level of specificity.Moreover, the context is important: what do you see on your screen?
What do you think valuations of Internet companies today? Is there a bubble?
Valuations are a sensitive issue. This is the net worth based on what we think is the future. My view is that social networks are fundamental phenomena that will change the world, yes. But with regard to the numbers, I let the markets decide. There are bubble if the prediction is bad, but I argue that change is very deep.
These networks generate data and make business. Is not this a problem?
In the case of LinkedIn, the use of data turns to the advantage for our users. There is no question of location of Internet users or photos of their children but rather to know what skills are likely, and so on.Users can not feel taken aback by the use of data. When you have a technological transformation, people fail to recognize that transparency is good for them massive. Surfers will discover that to move towards more openness and transparency is beneficial for them. We are often asked about our practices and always act quickly. Must maintain confidence.
LinkedIn helps determine business strategy according to their recruitment. This can be problematic vis-à-vis their competitors?
When a company publishes a job, it puts as much detail as possible to attract the best profile. We can already draw a lot of information of such data. But we must look at the return: a company wants us to know in which area it recruits to form the best teams.For investors, this can also be good to know in which direction it goes. So there is more value to be open and transparent. Finally, for us, the interest of the individual will always pass before that of the company. We want our users to have a positive experience.
Personally, you are investing in numerous start-up early, including Facebook and Zynga. What is your strategy?
I look at three things when I invest: market places that inspired me to invest in newly-Airbnb, networks, Zynga is a network of games and platforms-as Shopkick. It is also important that there is no conflict of interest with my work at LinkedIn. So I'm on the board of Zynga, but not Facebook.This is useful in that I see common trends on both sides, parallels that are used for my investment as my work at LinkedIn.
Where do you come the next big technological breakthrough?
I closely monitor the field of open source hardware.
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Signs of abating in the real estate frenzy in Paris. After growth of over 20% yoy in the first quarter (numbers of notaries), the house prices have stalled this summer. "We anticipated a slowdown of rising prices later in the year 2011. The events give us reason Fortunately, "says Bernard Cadeau, president of the branch network Orpi. The peaks in June, with the ceiling of 8000 euros per square meter happily burst, combined with the gradual rise in lending rates, have affected the volume of sales since the beginning of 2011. It made sense that eventually, prices undergo an adjustment. For more than a drop, it is a market correction it is.
Drain excess
"If there is downward, this concerns the very large apartments of 100 m2 which the price had been overestimated in the euphoria of late 2010 and early 2011," said Gilles Ricour of Bourges, president of the FNAIM Paris. "The capital market is a very individual who has self-sustained higher prices. Many potential purchasers already own their homes had postponed their plans because of the crisis in 2009. In 2010, when prices started to increase, they came with very important contributions. In addition they have changed their behavior. Rather than sell their home before buying another, they started buying in a market that climbed before to bear part of the price of their new acquisition to the purchaser, pushing prices up, "says Laurent Vimont, Chair of the Century 21 network cash advance loan no fax."Today, we purge the excesses," he adds. A correction that he says will not exceed a slight decline in the order of 1%.
The threat of taxation
"The summer months are not representative of normal activity in the sector. It was not until September which is traditionally an important month for the volume of transactions, "said he. "Always be careful. Paris concentrates all the ills of the market immobilieravec a very high demand and low supply, "said Bernard Cadeau. A shortage that could he said to go to … amplifying with assistance from the government. "There is very little construction in the capital, and with the new tax measures, are discouraged sellers put their property on the market," said he. "Since August 25, and the announcement of the taxation of capital gains to 32.5%, many sellers have withdrawn their products," alarmed Gilles Ricour Bourges."It would be unfortunate if these new measures will undermine the stabilization of prices," he concluded, as a warning to members who are currently planing tax loopholes.
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Wednesday afternoon, France is officially under the seal of "under budget". Unofficially, it is the rigor that is installed. The Greek crisis of July and the reaction of the markets in August precipitated decisions. Without waiting for the draft budget law for 2012 presented in September, the Hexagon has taken the lead in the face of nervous markets, which scan the microscope evolution curves finances.
After speaking with the social partners, having examined the proposals of the budget minister, Valérie Pécresse, and his colleague of Economy, Baroin, and after a final meeting Wednesday with arbitration the head of state, Francois Fillon will detail the efforts needed for France to respect its commitments.
Paris has in fact promised to bring its public deficit of 5.7% of GDP this year to 4.6% next year and 3% in 2013.Objectives "soft," insists the Prime Minister. And have become even more complicated to keep that growth, which has a breathing hole world in recent months, could not keep its promises. First equation to solve for the executive, what new growth assumption adopted for next year? Currently set at 2.25%, it could be lowered around 2% but the final decision will be refereed by Nicolas Sarkozy on Wednesday.
Whatever the figure used is a real austerity to be announced in the wake. The principle consists in an "effort equitably distributed among the wealthy households and the less affluent, but also between large companies and small companies," says Is there at Bercy.According to the Social Partners to Fillon who spoke Monday night, the government prepares to announce 3 to 4 billion in savings for 2011 – an order of magnitude as the Department's budget did not confirm Tuesday – and about ten billion 2012.
Precautionary reserves
This effort will break down between cuts on spending and tax measures. Regarding the latter aspect, the government does not lack ideas.Changing the tax exemption of overtime, tax on higher income, higher social package for businesses, real decrease in certain benefits … "In our sorrow, we have the advantage of having an incredible addition to spending, wealthy in some cases, "explained Baroin, mid-August, citing a total of 75 billion euros of tax loopholes and $ 45 billion social niches.
On the expenditure side, Bercy asked departments to provide an extra effort this year. The reason: the frigate affair of Taiwan, which requires the state to pay 460 million euros.To avoid this expenditure is widening the gap, saving the same amount will be made.
More precisely, the departments may not use funds they have traditionally used to spend at year end by drawing on reserves of precaution put in place earlier this year. Defense will be particularly drawn upon.
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