Nothing like that to go talk with the best of the class to get some good ideas. On Tuesday, French Budget Minister Francois Baroin went to Berlin to meet Wolfgang Schäuble, the German finance minister, but Otto Fricke, a spokesman on budgetary matters of the FDP, the party with which the CDU and CSU have formed a coalition. Up for discussion: the prospects for public finances, the convergence of tax systems and the EU budget.
"A very good news for France"
To say that the budgetary comparison is not in favor of France. So that France should post a deficit in 2010 of 8% of GDP, Germany could be below the 4.5% forecast until now. The German public finances are benefiting from the strong economic recovery.For now, the government of Angela Merkel sticks to hard line: any additional revenue related to growth must not be redistributed as tax cuts, but must be used to reduce the deficit. "There is a consensus in German society about deficit reduction, welcomed Baroin.
One way to be disappointed that this is not the case in France, while the government has decided to be as strict on the surplus revenue? In any case, Baroin wished to emphasize that the dynamism of Germany "is also a very good news for France, because it is our first partner." But no question of imitating unrestrained economic model Germanic."We, we focused our policy on power purchase them on the productivity gains through wage moderation," said the Minister.
Despite their differences, both countries are working to converge their taxes. The site was launched in July by Nicolas Sarkozy, Wolfgang Schäuble when was attending a Council of Ministers in Paris. By late September, the Court of Auditors will issue a preliminary report on the subject. His conclusions will inspire action that will be incorporated when considering the draft budget law to Parliament.
Fight together against the tax leakage
Regarding the tax system, harmonization would be quite happy for the French since Germany has removed the ISF. "But we must see if it is relevant," temperate Baroin.Indeed, both governments are working primarily on other taxes: the ecological tax, VAT and corporation tax (IS). Paris and Berlin in particular want to fight together against the flight tax that allows the development of the Internet. The major manufacturing groups chose to localize their headquarters in a country of the Old Continent as low tax Ireland and arrange to channel all their European business.
In addition, French and German governments want to raise, at European level, the project to harmonize the basis of calculation of corporate tax (IS). Today, each country has different rules for determining taxable income, which confuses the issue.
Finally, Paris and Berlin will work hand in hand for the European budget does not slip.The Brussels Commission initially proposed that the budget of the European Union increased 4.9%. The European Council has succeeded in getting the increase is limited to 2.9%. To meet this objective, Baroin account in addition to the support of London.
The crisis has played a role in accelerating power for China. Faced with the slowdown in traditional engines of the planet are the U.S. and Japan, the People's Republic sees himself propelled to the rank of second largest economy, instead of his neighbor nippon, but still far behind the United States. "China is already the second biggest economy, has said over the weekend Yi Gang, director of the State Administration of Foreign Exchange (SAFE), in charge of foreign exchange controls.
In an interview with the magazine China Reform and accepted by the site of the Safe, Responsible merely formalizes what everybody expected this year. The calculation is done quickly. In late 2009, the gross domestic product (GDP) of Japan 5070 billion was already closely followed by that of China, to 4980 billion.With an expected growth of 9.5% throughout the year and 11.1% in first half against less than 3% for its neighbor, the Middle Kingdom has probably exceeded that of the Rising Sun between April and June And this, ironically, even as the country tries to avoid overheating. Manufacturing production slowed further in July for the second straight month, thanks to measures limiting credit growth and real estate speculation.
The Chinese authorities do not brag with their new status as world's second largest economy, since many challenges remain before inevitably take the top spot in a couple of years, according to the World Bank. "The problem of China's economy is the quality of its growth.Why we must proceed with structural adjustment and transform our business model, "said Yi Gang, referring to the refrain that government consumption has to take over investment and exports as an engine of growth.
The gap will shrink
This ongoing concerns prompt the government to closely monitor all aspects of the economy, starting with the very sensitive political exchange. Referring to the convertibility of the yuan, Yi Gang made it clear that no timetable had been arrested. China becomes the heir of the world economy without having an international currency.
But Beijing is still more to paradoxes, mixing the issues of developing countries with those of a rich country. Imbalances continue to widen between rural and urban, rich and poor.Before he finished his economic metamorphosis, the Middle Kingdom is already old. Today, six active contributors per pensioner, they will be more than two in 2040.
In fifteen years, GDP per capita – U.S. $ 3,600 in 2009 – will probably still not caught up with its rivals, with $ 42,000 for the United States and 37,800 in Japan. But the gap is very narrow. Yi Gang expects Chinese growth between 7% and 8% in the decade ahead.
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A few days after the publication of a sales soaring and better than expected, Ghosn perfect its operation seduction. The CEO of the automaker, which suffered heavy losses last year with 3.1 billion euros of losses, it is one of the most important sector, pledged on Friday at the annual Shareholders' return in the green "no later than 2011.
A challenge for the "cost killer" at Nissan, whose re-election as head of French carmaker should, except surprise, be endorsed. Five years after its accession to the presidency of the group, the economic conditions in 2010 should however be difficult.The scheduled shutdown of the scrappage scheme in particular, should not contribute to boost the profits of Renault.
To find the flexibility brought by the loan of 6 billion euros granted by the state earlier this year, Ghosn has also committed to the shareholders to repay that money more quickly than expected, it ie before the year 2014. "We will refund well before the deadline and we will refund if possible in concert with our friends at PSA," he said as well.
The manufacturer expects to have the freedom again to close and installing production units it wants to reduce its costs. One recalls the intervention of Nicolas Sarkozy to prevent the complete production of the Clio in Turkey …
Energy: one week for the troubled oil
Gravitating around $ 85 last week, oil prices have slowed their rise this week. On the New York Mercantile Exchange, a barrel of light sweet crude for May delivery traded at 84.52 dollars on Monday against a peak of $ 87 on Tuesday of last week. "It comes back to earth, ironic one analyst.
This correction then explained by an increase in inventories of crude reserves in the United States for the tenth straight week. Oil prices continued their decline in the rest of the week despite the fact that the International Atomic Energy Agency (IEA) has again raised its forecast for global oil demand in 2010 of 2% compared to 2009.Investors have been cooled by the analysis of JP Morgan believed that the offer would remain significant because of high inventories of non-members of the Organization of Petroleum Exporting Countries (OPEC).
A wake was held following the publication of positive quarterly results from Intel. The U.S. Agency for Energy Information (EIA) had also announced a surprise drop in crude inventories at 354 million. Since Wednesday, the price has recovered the $ 85. Friday, prices have stabilized around 85.69 dollars per barrel WTI.
Metals: copper, always leading
When China talks about his growth figures, the metals markets are rubbing their hands. Latest macroeconomic figures in Chinese date, the country grew 11.9% yoy in the first quarter. A new whetting the appetite of investors.Remember that China is about 8% growth in 2010.
In markets, copper continued its path toward the summit despite a small reflux (-0.47% over the last 5 days). Friday on the London Metal Exchange (LME), the ton is trading at a consistently high level of 7874 dollars. The goal of $ 8,000 is not far.
Aluminum is also up on the LME, with a gain of 4.30% over 5 days and a high of 2,423 dollars per tonne reached Thursday. A fine performance as the industry giant, the American Alcoa announced Monday that he remained in the red in the first quarter due to special charges related to restructuring. The group was divided into two loss over one year to 201 million dollars.
Nickel is also 8.70% on the week. Ton set a record Thursday at 26,685 dollars on the LME.
Precious Metals: Greece weighs on gold
Gold has had a week sawtooth.The gold shows a decrease of 0.62% over 5 days. Friday, traded 1153.80 dollars per ounce, in a market down by 0.52%. This weakening is due to the rise of the dollar against various currencies worldwide that drives investors to take profits. This weekend, the euro lost 0.3% to an average of 1.3535 dollars amid concerns about the ability of Greece to cope with its crisis. The country has announced its intention to use EU funds to cope with its debt. Gold therefore moves away again from the "peak" predicted by the consulting firm GFMS in its annual report 2010.
The money follows the same path as gold, down from 0.49% to 18.35 dollars per ounce on Friday.The metal still remains above the 18 dollars, a level reached the first time since January last week.
Palladium was trading Friday around $ 540 an ounce on the London Bullion Market (LBM). Prices dropped slightly over the weekend but that does not make the metal more than 6% in 5 days.
Agricultural products in the green
This week has been marked by rising prices for soybeans, corn and wheat on the Chicago futures market. A bushel of wheat climbed Thursday to $ 4.80, allowing a gain of 3.78% over 5 days. Corn was trading at 3.62 dollars per bushel (44.24% in 5 days), while soybeans traded 9.78 dollars per bushel (3.19% in 5 days).
The announcement of a 11.9% growth yoy in the first quarter, China has boosted the morale of investors who expect a steady increase in demand from countries considered major consumers. The news has mostly benefited the soybean: China buys alone 60% of U.S. exports, according to the U.S. Department of Agriculture (USDA).
Sodexo pushed back to the wall by an elected California. Loretta S?nchez, Democratic member of the House of Representatives, announced on their website have filed an application with the agency responsible for auditing the public accounts in the United States, the Government Accountability Office (GAO). She claimed a GAO investigation into a contract signed between Sodexo, French catering group, and the Marine Corps. This contract of $ 881 million, for a period of eight years, is nearing completion and Sodexo expects to see it renewed for an even larger amount of 4.1 billion.
But Sanchez Loretta has put a spoke in the wheels of the French group. Indeed, the elected Sodexo suspected "of waste and potential health problems" in the power supply on military bases.Loretta Sanchez also refers to a reversal of the restaurant group in the middle of his contract, making the service "less effective than originally promised."
Alarming health reports
In 2001, when Marine Corps decided to reorganize the delivery of food to its bases nationwide to save $ 20 million per year, Sodexo was first in line. The group appealed and won the gold contract through its food production unit based in Tennessee. A center to centralize the production of fresh meals. These are then frozen and shipped to bases across the country. But in July 2007, Sodexo stops the production unit.
This shift comes a month after a recall by the USDA, the U.S. Department of Agriculture, 3,000 chickens potentially contaminated with listeria.In fact the meat had been sent to bases at Camp Pendleton in San Diego.
In addition, public reports of recurring health problems in the production center of Sodexo. Among these reports, 70 are published by USDA and refers to "non-conformities" over a period from December 2005 to September 2009.
Loretta Sanchez, also a member of the Armed Services Committee, therefore demanding a thorough investigation before renewing the contract for a higher amount. "I asked the GAO to investigate. This is part of broader efforts to target waste in government, "she says.
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From our special correspondent in Mexico City
The figure is official. Mexican GDP in 2009 dropped by 6.5%, is one of the steepest declines in the OECD. What has become a rising star in Latin America? On the world economic map, Mexico, thirteenth largest by gross domestic product (GDP), is overshadowed by Brazil. The two countries share the same advantages, however: young and large population, oil wealth and agricultural, industrial potential … and the same disadvantages: clientelism and corruption, social inequality and crime records.
Click on thumbnail for larger graphic
Economic conditions continued to improve in the United States in January-February, "although harsh snowstorms in early February have dampened activity in several regions," according to the Beige Book released Wednesday by the U.S. central bank (Fed).
The document states that the activity has increased in nine of the twelve regions (by cutting the Fed), but that "in most cases, these improvements were small.
The information provided by the Beige Book are very important because they serve as a reference to the meeting of the Monetary Policy Committee of the Fed scheduled for March 16, which will decide on changes in interest rates.
Regarding the labor market, for which the Fed chairman, Ben Bernanke, gave recently bleak outlook before Congress, the document notes that "the pace of layoffs has slowed in most regions, but that hiring plans of companies remain "soft in general."
As for expenditure on household consumption, traditional engine of growth of the country which is struggling to regain its role, they "grew slightly in many areas, but have been hampered in some by the snowfalls of early No teletrek payday advance . The metallurgist is the red lantern index in Paris.
PSA Peugeot Citroen (-1.97% to 21.87 euros, 2nd largest drop) announced Wednesday a net loss of 1.161 billion euros in 2009 against a net loss of 363 million a year ago, for a turnover 'sales down 10.9% to 48.417 billion euros.Natixis welcomes performance Faurecia and Gefco, but is very Decca automobile.
Sanofi Aventis (1.03% to 53.2 euros) recorded an adjusted net income of 7.8 billion euros in 2009 up 11%.
According to Le Monde, Renault (+0.27% to 33.4 euros) to consider building a plant near Algiers, which produce 50,000 vehicles annually for the local market.
Nexans (-0.86% to 55.32 euros) worldwide leader in the cable industry, has seen its annual profits collapse at 8 million euros, mainly due to restructuring and divestitures of businesses by group, and remains cautious for 2010.
EDF Energies Nouvelles (+4.82% at 35.85 euros) announced Tuesday a net annual increase of 39% and EBITDA up 47%.Gilbert Dupont went to purchase.
Apart from publications, the bank stand on the CAC 40, including Cr?dit Agricole, headlining, up 4.66%, to 10.85 euros. Axa rises of 4.13% and Societe Generale is 4.41%.
CAC Hors, Havas (6.71% to 3.08 euros, head of the SBF 120) on Tuesday posted a turnover decrease of 4.4% on an organic basis in Q4 2009, to 1441 million 'euros. Unrealized net budgets amounted to 1,270 million euros in 2009. The group has been identified by Goldman Sachs and Nomura.
Medica (+7.92% at 14.03 euros) announces that its IPO was a "success".The French and international institutional, meanwhile, have subscribed for about three times the size of the offer.
Theolia (6.25% to 3.23 euro) has published a turnover increased almost five in 2009 due to the resumption of sales of wind farms by the group.
Ubisoft (-1.72% to 9.66 euros) said Tuesday night "expects to return to profitable growth and a cash from operating activities positive" for the year 2010-11.
Vinci (+1.17% at 38.43 euros) on Tuesday announced acquistion of 89 contracts for parking company Interpark the United States through its U.S. subsidiary LAZ Parking.
Vilmorin (+1.29% at 79.86 euros) issued a turnover up 2.7% in the first half of 2009-2010 and has announced a joint venture in wheat seed in Argentina.
The official figures will be at noon. But information BFM suggest the outlines of this publication. Namely a difficult 2010, despite a January under good auspices. In fact, "we can expect good numbers in the coming weeks before a turnaround due to falling orders," anticipates does one on the radio station.
The first weeks of this years new register and the continuity of orders made last fall, boosted by the fact scrap bonus. But the whole year is expected to decline by 20% in terms of global vehicle sales. With forecasts of a little less pessimistic (-10%) for the German Volkswagen's new Polo and easy payday loans