Archive for the 'special' Category
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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The Paris Bourse tries to continue the rebound on Friday. The CAC 40, which opened sharply lower did an about face in the morning. Halfway through, he won by 2.17% to 2871 points, pulled up by the banking sector. Investors seem to focus on a recapitalization of some institutions.
Other major European markets advance in unison, Frankfurt climbed 2.83%, Madrid and Milan by 3.23% from 3.75%. London, however, remains in equilibrium, the FTSE symbolically yields 0.05%.
Concerns about sovereign debt in Europe is still present when a crucial week for Greece ahead. The International Monetary Fund (IMF) said that a delegation will travel to Athens this week to determine whether or not the country can benefit from the sixth round of eight billion euros, it vital to avoid bankruptcy.Moreover, Germany will vote Thursday the agreement for the expansion of the scope of the relief fund of the zone (EFSF). Sunday, German Chancellor Angela Merkel expressed confidence the outcome of the vote. Evangelos Venizelos, Greek Minister of Finance, for his part spoke with Jean-Claude Trichet, head of the ECB, a debt restructuring Greek. In an effort to reassure global markets, finance ministers of the euro area are committed in a common text, to "do everything necessary to solve the crisis of debt and financial stability of the area in whole and its Member States. " The idea of taking office faster than expected EFSF has also been raised by Germany this weekend.EU Commissioner Olli Rehn himself has said that Europeans reflected to provide the EFSF additional instruments, beyond those agreed in July to give "more power" in an interview with Die Welt newspaper.
The Ifo index better than expected
The Ifo index of business climate in Germany has also provided a little balm in the heart of investors. He recorded a decline in September, less than expected. However, this is its third consecutive decline, which seems to suggest that the activity of the first euro zone economy is slowing.
Sign fears still strong on the issue of public debt in Europe, the euro held steady in the $ 1.35 this morning at 1.3407 dollar.
Values to follow
• banking takes off
The banking sector led the trend.By late morning, flying from BNP Paribas 6.66%, 6.31% of Crédit Agricole and Societe Generale of 5.20%. Rumors of a recapitalization of French banks to benefit industry. In addition, the Deposit, the Postal Bank and Dexia negotiate the creation of a new public to fund local governments, according to Le Figaro. In addition, the Franco-Belgian bank could increase its program to sell its toxic assets, housed in bonds, 20 billion euros, according to Les Echos.
• LVMH (+0.38% to 105.85 euros)
The group announced Friday now hold almost all the shares of the Italian jeweler Bulgari, the luxury giant announced the takeover in March.
• France Telecom (2.13%) Iliad (2.11%) Vivendi (0.03%), Bouygues (-1.08%).
The state is on track to win his bet on the financial 4G mobile frequencies after a first series of which reported more than budgeted and, according to experts, suggests an aggressive posture in the second round by operators who have not had the expected number of lots.
Also note, the IPO of Groupama, long anticipated, was again postponed and is now expected "more towards 2015," said its director general, Jean Azema, in an interview with Les Echos.
The smart electricity meter – or communicating – also known as counter Linky, will be extended to all of France. The decision will be made official Wednesday by the Minister of Industry, Eric Besson, attended by all stakeholders in this important industry. So far, this counter had been the subject of a test phase, in Lyon and Touraine.
This counter communicator, which allows to know its power consumption in real time and thus better control, will be installed progressively from late 2013-early 2014. A five-year period is planned to equip 35 million consumers, knowing that the European directive assigns a target that 80% of users are in possession of this tool in 2020. "This counter is a future asset for the modernization of the electricity distribution network.It will particularly help to end the current system of estimated bills, sources of discussions, said one industry player. In addition, the meter installation will require the creation of over 10,000 jobs. "
Throughout the past few weeks, a severe battle was between ERDF – a subsidiary of EDF in charge of distribution – and local authorities about the property counters Linky. Upon arrival, the government has not decided to change the current law, which states that the networks, which include counters, belong to communities. In support of its reflection, the government relied on the report of "Committee Linky" on the generalization of communicating electricity meters in France easy payday loans.The report, led by parliamentarians Ladislas Poniatowski and Jean-Claude Lenoir, was sent Sept. 21 to Eric Besson.
According to the overall pattern was retained, ERDF will be responsible for ordering and installation of new meters. These will be installed free of charge, the government decided that not considering either a tax increase for network use, one of the elements of the bill paid by customers.
A cost of 4.3 billion euros
To support ERDF therefore, which plans to spend 4.3 billion euros to widespread program Linky, to compensate for this investment by productivity gains achieved through this tool. For example, the new meter will perform many interventions that will distance the presence of agents of ERDF to the customer will no longer be necessary."But whatever the gains, a system of passing on costs is possible sooner or later," suggests an industry expert.
As for local, they indicated that the expected effectiveness of the new meter is fully proven. In other words it is shown that consumers can realize significant energy savings. Widespread Linky is a crucial element of energy efficiency policy of the government at a time when energy prices rise.
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From our special correspondent in Wroclaw.
The Europeans hoped "a dialogue between friends," the Americans had "no arrogance." Las. With the destabilization of markets and growing concern on both sides of the Atlantic, the U.S. Treasury Secretary, Tim Geithner, could not resist lecturing his seventeen counterparts in the euro area gathered Friday to Wroclaw (Poland).
The relief provided by five central banks – including the U.S. Fed – banks in the euro area will not long concealed the absence of concerted policy response to the crisis. On behalf of the Europeans, the President of the Eurogroup Jean-Claude Juncker declined projects Tim Geithner, citing "differences in approach with our American colleagues."Treasury Secretary, he has put his finger where the euro hurts: he publicly expressed concern "of the conflict between governments and the European Central Bank," a week after the sensational resignation of the Chief Economist of the ECB .
Barack Obama's America, soon launched a presidential campaign, fearing a collapse of Greece, a contagion to European banks and a possible fracture of the euro area. If the crisis deepens, it is the U.S. economy would suffer the backlash, shock reverse of that which had hit Europe after the collapse of Lehman Brothers in 2008.
The first message in Washing-ton is to push the Europeans to speak with one voice and act decisively. "Governments and the Central Bank should work together (…) to avoid catastrophic risks for financial markets," said Treasury Secretary.And he insists, denouncing the cacophony that destabilizes the common currency: "Everyone should also abstain from loose talk about the end of the euro area." Targeted: the proponents of expulsion from Greece …
Denial of a tax on financial transactions
The unprecedented invitation launched by Poland – host country because currently presiding the EU – Timothy Geithner had anything to embarrass, in turmoil, the finance ministers of the euro. We saw Baroin host the head of U.S. Treasury of a strong handshake in Wroclaw. But the Euro has carefully kept at a distance. He has not formally participated in the circle, but a "preliminary conversation" about an hour. Contrary to custom, he did not sent to journalists.To tell his truths to Europe, he preferred an audience of bankers in another part of town.
Some did not take gloves to say that Europe has no lessons to learn. The United States, collapsing under the deficits should put their own house, says the Belgian Didier Reynders. "America has nothing to dictate when the person refuses flatly our suggestions," added the Austrian Maria Fekter. It is true that Tim Geithner repeated Friday his opposition front to the tax on financial transactions carried to Paris, Berlin and Brussels.
Decisions deferred
For the second time in eight days, Treasury Secretary left Europe empty-handed. Friday, the Europeans have made a face at her suggestion to "leverage" means the EFSF, the bailout fund for countries of the euro in difficulty."This is not a subject that is discussed with a country outside the EU," Jean-Claude Juncker meant. Same end of inadmissibility of the American idea of supporting the growth of public funds "even a donkey does not stumble twice on the same stone, 'says Didier Reynders, convinced of the urgency to fight first against the deficits.
For the Americans as to Europeans, the European event in Wroclaw ends with a disturbing sense of incompleteness, even for emergencies. The Eurogroup has pushed to mid-October a decision on payment of 8 billion euros to Greece. He did not reach an agreement on guarantees that Finland requires Greece.
Relief from international stock markets. Wednesday after the U.S. places, it's time for Asian indices on Thursday morning to welcome the statements of Nicolas Sarkozy and Angela Merkel reaffirmed their commitment to maintaining Greece in the euro area. The Asian markets – and notament Tokyo – earn up to 1.5%. For its part, the euro ahead by 0.5% against the dollar and 1.375 against the dollar is trading early this morning. The "future" on the European stock index Eurostoxx 50 show an increase of 2.50% on opening.
Following a conference call held late in the day Wednesday between Nicolas Sarkozy, Angela Merkel and George Papandreou, the Franco-German couple has been very clear in stating that "the role of Greece in the euro area. "In a statement released in the process, they attached a condition, however, also very explicit: "The implementation of strict and effective recovery program of the Greek economy supported by the countries of the euro area and the IMF and which conditions the disbursement of future tranches of the program. "
Since the Davos Forum held for three days in Tianjin, China, Zhang Xiaoqiang, deputy director of the China Development and Reform, confirmed that China stands ready to buy securities with sovereign debt states involved in the debt crisis.Earlier in the day, Chinese Premier Wen Jiabao had made statements to this effect while advising countries to reduce their deficits and to open their markets rather than relying on China to pay off the debts of the world's economies wide.
Similarly, the president of Brazil, Dilma Rousseff, said his country is ready to participate in a "global effort" against the economic crisis that affects rich countries, following the announcement of a meeting of countries emerging Brics (Brazil, Russia, India, China and South Africa) to discuss aid to Europe.The head of state stressed, however, that there is no "global solution" to the crisis and that much depends on the countries concerned.
For its part, the U.S. Treasury Secretary Timothy Geithner who should participate in a meeting Friday of finance ministers in Europe, had said before the conference between France, Germany and Greece, convinced that the Europeans "have financial resources to do what is necessary and avoid the collapse "of the euro area". He had, however, added that the Europeans will have to "recognize that they will have to do more and have fallen behind."
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McGraw-Hill confirms the dismantling of its activities. The group, which holds particular one of the three major rating agencies worldwide, Standard and Poor's (S & P), Monday announced its split into two independent companies.
One, called Mc Graw-Hill Market, will specialize in financial reporting. It will include S & P, but also the manager of indices S & P indices, the information service Platts Energy, the research firm JD Power and Associates market, and several publications such as Aviation Week, on the aeronautics. This new venture will be headed by a member of the founding family, Harold McGraw, who was already operating within the conglomerate.
The other company will be named McGraw-Hill Education. It will specialize in publishing, including the sale of school and university textbooks.The group is currently looking for a leader to lead this new company.
Reduce costs
This dismantling was called in late August in person by two shareholders of the group who felt that the issue had become a weight in the activity of McGraw-Hill. Indeed, it represented only 23% of operating profit last year while the activity of the only rating agency weighed nearly 50%. This division is not fully compliant with the wishes of those shareholders who demanded that the financial activity is divided into two with one assessment activity independent of the indices Low fee payday loans. In addition to a specific company for editing and one for the information professional. Four entities distinctness.
Mc Graw-Hill, a division of the two seems sufficient.It should eventually reduce the operating costs of approximately $ 1 billion and improve the group's value for shareholders. Lea management announced in passing that the repurchase program of its own shares will increase to $ 1 billion full-year.
McGraw-Hill Market this year should generate a turnover of $ 4 billion, made almost 40% abroad, and growing "double digit". McGraw-Hill Education should she reach the years of income of 2.4 billion.
On Wall Street, investors welcomed the ads. The action McGraw-Hill climbed 1.44 dollars to 39.26% at 17 hours, Paris time, in a market down 1.04.
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The president of the U.S. central bank (Fed) Ben Bernanke has a surprise in Jackson Hole, in the northwest United States. Instead of announcing new measures to support the U.S. economy, as expected by the markets, the Fed chairman on Friday merely noted that the issue will be discussed at the next meeting of the Monetary Policy Committee of the institution, scheduled Sept. 20. While stressing that "to weigh the pros and cons" of such a decision, the next meeting will be extended by one day. Suffice to say that a consensus on whether to implement any new measures to support the U.S. economy is far from certain …
It is precisely here that the speech of the day was to shed light.Investors hoped a higher profile, particularly on the implementation or not of a third program of monetary easing (or quantitative easing EQ3), after two other applications since 2008.
Ben Bernanke returns the ball in the political
"The Fed has a range of instruments to provide economic stimulus," said Ben Bernanke, however, supported. Insufficient to convince. For the other hand, the Fed chairman said that U.S. politicians had more room for growth, calling for fiscal stimulus. A sentence which leaves in doubt the ability or willingness-to-the Fed to reignite growth overseas.
"The Fed will certainly do its utmost to help restore growth rates and employment rates in an environment of price stability.However, most of the economic policy measures to support the long-term growth is a spring outside the central bank, "said Ben Bernanke.
The Fed chairman has confirmed rely on weak economic growth in the short term, after the Fed revised its growth goals of the U payday loans with no fax.S. economy, but did not specify the extent of this reduction.While recognizing that the crisis is more difficult than expected a few months ago, Ben Bernanke refuses to show alarming: he predicts that U.S. GDP "should improve" the second half and that inflation will gradually subside, and return to less than 2%.
He said he was also confident "in the fact that [his] colleagues in Europe have completely aware of what is at stake in the difficult problems they face today and that over time it will take all necessary measures and appropriate to address them fully and effectively. "
Deception temporary markets
Initially, this lack of concrete measures to try to revive an economy whose recovery is "much less robust than expected" in the words of Ben Bernanke, has dampened market expectations, suspended for two days this intervention .Sign of these expectations, the U.S. indices, already feverish, have widened their losses immediately after the announcement of the postponement within a month of discussions at the Fed on possible support measures. Similarly, in Paris the CAC 40 index plunged more than 3%.
But an hour after the intervention, investors rallied. The index in Paris reduced its losses, while on Wall Street, the Dow returned to the same balance. The markets have indeed put their disappointment. If the hope of a decision of intervention by the Fed was huge, the probability that a major action plan to be presented today was very thin, many commentators had warned in recent days.
The speech will be delivered to a very limited audience, but it will be heard by the entire financial world. The head of the Federal Reserve, Ben Bernanke, will speak on Friday afternoon (French time) to his counterparts at the traditional central bankers in Jackson Hole Symposium, Wyoming.
While the U.S. economy slows dangerously, investors expect a tough response from the Fed. But they may be disappointed because, faced with two problems, the central bank runs out of ammunition.
Misdiagnosis
First, Ben Bernanke erred in economic diagnosis. He underestimated his own admission, the low growth in the first half and was counting on a rebound in demand in the second, which for now does not materialize.Problem with its main policy rate at zero since December 2008, the Fed has little room to revive again the supply of credit. Some members of the Monetary Committee refuses to go further. Among the reluctant, Richard Fisher, president of the Dallas Fed. It is estimated that on August 9 promises to continue until mid-2013 interest rates unusually low, the Fed made a mistake: the promise deters businesses and individuals to borrow quickly as they know that the rates are not nearly up cash advance america.
So what can Ben Bernanke promised? The resumption of purchases of long-term bonds the Treasury is the preferred option by the markets. But given the high level of inflation, the method is risky.In addition, low interest rates leaves little hope that this new "quantitative easing" has a significant effect on credit supply.
Ben Bernanke should focus on technical measures. The Fed could cut the compensation of bank reserves. It would be a way to push banks to lend rather than storing their cash with her. The second measure seeks to change more or less gradually the composition of its balance sheet, which reached 2.7 trillion dollars. To maintain long-term rates as low as possible, the Fed may decide to increase the proportion of its balance sheet invested in long-term securities, while reducing the one placed in short-term securities. The decline in long rates will encourage companies and individuals to refinance their debts and support the real estate.
When in 2007 the Merkel government has created an additional income tax of 45%, Germany was against the current. At the time, it was time to lower taxes to encourage work. But the crisis and rising public deficits have changed everything. Germany has become more and more followers. In 2010, the UK has increased to 50% the rate of the highest portion of its income tax (IR). And Italy is preparing to introduce a solidarity tax for employees earning over 90,000 euros.
More surprising number of taxpayers potentially affected by such a tax do not hesitate to ask now open! American side, the billionaire Warren Buffett has called this week for a contribution of "mégariches."In France, Maurice Levy, chief executive of Publicis Group and president of the Afep (French association of private companies), wrote in his name, an article in Le Monde, where he considered it "essential that the effort Solidarity begins with those whom fate has spared. " All indications are that it will be heard as the French government pledged last spring to introduce a tax on high incomes. "Today we are working on the issue of remuneration is said sometimes extravagant," reiterated on Wednesday on Europe 1, the budget minister, Valérie Pécresse.
The majority has already noted last year from 40% to 41% in the final tranche of IR. But this time it is hit with higher incomes (the final installment begins 71,000 euros in annual revenues). And this without creating a new rate of IR.While some lawmakers, like Senator Jean Arthuis centrist, still defend the idea, Nicolas Sarkozy is opposed to any new slice. Since the fall, the government has consistently rejected in Parliament every initiative of his majority to create a slice with 46% annual earnings per share in excess of 100,000 euros.
A million or 150,000 euros of income a year?
The Ministers of Economy and Budget has established a working group of parliamentarians who must propose measures in the fall, in the 2012 budget pay day loans. The idea of the executive, initially was rather taxing high incomes via the company by making non-deductible from corporate tax wages above a certain level. But the government now seems to favor a direct taxation at the household level, a solution advocated by many parliamentarians.Gilles Carrez, the UMP rapporteur of the budget in the Assembly proposes to introduce a contribution of 1% to 2% of annual revenues in excess of one million euros.
Advantage: All income is affected, including dividends and capital gains, not just wages (as with the non-deductibility). The threshold of 1 million French can target very easy – 30,000 homes would be affected. "The measure must be a symbol. This is not to bail out of the state, "said Jerome Chartier, UMP du Val-d'Oise. In fact, 2%, the new tax would yield only 300 million (against $ 1 billion for the portion eg 46%). "Be careful not to pour into demagoguery and rich hunting. The contribution must be calibrated, "adds Philippe Marini, UMP rapporteur of the budget in the Senate.
Problem: all members do not see it that way.Pierre Mehaignerie, the UMP president of the Committee on Social Affairs in the Assembly hopes that the contribution applies from 150,000 to 200,000 euros in annual income for couples and 80,000 euros for a single. At this level, more than 300,000 homes were affected, including many executives. "I understand that. But our people are ready to make an effort if, at the same time, the state reform, "Pierre defends Méhaignerie. The animated discussions ahead in the majority!
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Still pending for a summit in the euro area. While Monday's major stock markets reopen on Tuesday, European capitals and investors will have their eyes on the meeting at the Elysee between French President Nicolas Sarkozy and German Chancellor Angela Merkel. After a week very rough on the markets, particularly in France, this meeting is an opportunity for two leaders to show their unity.
Above all, it will be the first public Angela Merkel, back from vacation, since the revival of the crisis.Angela Merkel and Nicolas Sarkozy "are among the few political figures on which the fate of the euro, the EU and Europeans," says the German newspaper center-left Süddeutsche Zeitung, adding that French President 's 'prepares to live the most important week of his career. "
The markets expect a lot of European leaders. Some analysts point to the inadequacy of the means used to protect the euro area at a time when the first signs of a contagion is observed in Spain and Italy. The European Stability charge to lend to countries in difficulty, and would not have sufficient financial resources to save Italy as if it fell before it, Greece, Ireland and Portugal.
Pooling of liabilities
Investors, but also the European Socialists are calling for the creation of "Eurobonds", which would sign the pooling of public debt in the euro area. If this had been established, it would have prevented the current crisis, said Saturday the Italian Finance Minister Giulio Tremonti. Berlin is officially fiercely opposed, saying it would amount to finance the deficits of the least virtuous of the euro area. But the government no longer opposed Eurobond "to preserve the euro area" as a last resort, reports the conservative newspaper Welt am Sonntag quoted a government source no fax payday loans.
The Franco-German summit is unlikely to provide definitive answers on these two subjects.The German Finance Minister Wolfgang Schäuble has dampened the hopes of the most optimistic in an interview published this weekend in the German magazine Der Spiegel: "We left there: there is no pooling of debt and no help to the infinity. There are support mechanisms, as we continue to develop, under strict conditions. "His French counterpart, Francois Baroin, for his part said he was working on" a convergence between France and Germany "about to a tax on financial transactions.
Most stubborn
The German government is already struggling to push through the reforms agreed at the EU summit on 21 July. In parliament, the majority balks, cooled by a public increasingly distrustful towards the euro. Angela Merkel's allies, the liberal FDP, and require strong counterparties in exchange for their support."With us there will be no blank check for the redemption of bonds of other countries" (a measure of support to countries in difficulty decided July 21) warned Sunday the leader of the FDP Rainer Brüderle. He wants a limit on the debt be written into the constitutions of all countries in the euro area, as is the case in Germany.
A sign of the tensions within the majority of Angela Merkel, President of the Bundestag, the upper house of German parliament, is reluctant to adopt reforms in the euro area in a timely manner by the government. "The subject is so important," he "will surely be impossible to pass it between 20 and 23 September," he said. One more reason to be anxious for the markets.
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