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.
Orphans ten years, Parisians are delighted to over 80% (according to a survey of figaro.fr) back on the Champs-Élysées of teaching English, founded 127 years ago. Although the 1400 m2 on three floors above are devoted to fashion, small radius supply more than a delight.
The strategy's return
M & S logo (CD)
McDonald's could have done this new scandal. Committed for 10 years in a campaign to improve its image and to defend the quality of its products, the giant U.S. fast food undergoes further attacks of his detractors. At issue this time, the treatment of chickens by a subcontractor of the group providing the eggs used in the preparation of McDonald's products. The title of the video is unequivocal: "McDonald's, the truth rotten egg McMuffin"
Made with a hidden camera and broadcast for the first time Friday on ABC, the video was shot by Mercy for Animals Association (Pity for animals) in a poultry farm in Minnesota "Sparbo Egg Farms" .
The U.S. stock markets, ended sharply higher on Friday: the Dow Jones gained 2.31% to 11,808.79 points, the S & P 500 1.88% to 1238.25 points. Thursday already, the New York Stock Exchange ended without direction. The Nasdaq was in turn awarded 1.49% to 2637.46 points. Over the whole week, the Dow and the S & P rose by 1.3% and 1.1% but the Nasdaq fell 1.1%.
Buoyed by the performance of large U.S. companies, the market will also confident about the progress of the sovereign debt crisis in the eurozone as EU leaders have pledged to agree on a solution by Wednesday. Sunday will begin a crucial summit and Paris and Berlin have announced that Nicolas Sarkozy and Angela Merkel will hold talks in Brussels the day before to prepare an "ambitious and comprehensive response" to the crisis.Concrete measures will be considered Sunday to be adopted during a second peak "no later than Wednesday."
Discussions will focus on how to increase the capacity of the European Financial Stability Fund (EFSF), but also on the rescue of Greece. Meanwhile, in Greece, the anti-austerity continues. A new law has been de rigueur in the Greek Parliament voted Thursday. This Friday night, the euro area has announced its approval of the sixth tranche of aid to Greece scheduled in the first rescue plan adopted last year. Remains the green light from the IMF co-finance the loan.
Summit high risk in Europe
For many observers, however, profound differences remain between France and Germany. "There is no joint proposal" European at the moment, has acknowledged Thursday the German Finance Minister Wolfgang Schäuble.For his part, President of the European Commission Jose Manuel Barroso called on Europeans to "compromise" to reach decisions "resolved" and "immediate."
Another failure might further undermine investor confidence in the ability of Europeans to fight effectively against the debt crisis. They would now have a highly sensitive situation at the G20 to be held in early November.
Pressure rating agencies
Rating agencies are increasing the pressure on the euro area. After Moody's, S & P raised doubts about the AAA rating of the long-term debt of France.The agency suggests a probable degradation of notes France, Spain, Italy, Ireland and Portugal according to economic conditions.
On the macroeconomic front there was no major indicator not on the agenda of U.S. investors no credit check payday loans.
On the foreign exchange market, the euro lost ground to 1.3893 dollars against 1.3772 dollars on Thursday night. Oil prices ended in a disorganized after rising following the announcement of the disappearance of the former Libyan leader Muammar Gaddafi. The barrel of "light sweet crude" for December delivery gained $ 1.33 to 87.40 dollars on the New York Mercantile Exchange. On the week, won 60 cents per barrel.In London, a barrel of Brent North Sea crude for December delivery lost 20 cents to 109.56 dollars on the Intercontinental Exchange (ICE).
Earnings rise for McDonald's and Microsoft
The side of values, General Electric (-1.92% to 16.31 dollars) announced Friday that it saw its net profit rise by 18% in the third quarter to $ 2.4 billion, in line with market expectations and announced an increase to rely on double-digit earnings per share in 2012.
Verizon Communications (0.86% to 37.42 dollars) recorded a profit in the third quarter of $ 1.38 billion, against 659 million (23 cents) a year earlier. The turnover registered at 27.9 billion against $ 26.5 billion over the same period a year ago.
Honeyell (5.82% to 51.28 dollars) has announced a 45% increase in net profit in the third quarter to 862 million.
The world's leading fast food McDonald's (3.72% to 92.32 dollars), reported a net income above expectations at 1.51 billion dollars against 1.39 billion a year earlier.
Schlumberger (-0.90% to 67.38 dollars), worldwide leader of services to the oil industry, announced a profit lower than expected in the third quarter, with $ 1.3 billion (96 cents per share) against a , 7 billion ($ 1.38 per share) a year earlier.
After the close Thursday, Microsoft (0.44% to 27.16 dollars) issued for the first quarter, revenues of $ 17.4 billion, up 7% year on year. Net income reached 5.74 billion, up 6%, while earnings per share rose 10% to $ 0.68.
Capital One Financial (6.94% to 43.29 dollars) issued for the third quarter net income of $ 813 million against 803 million last year and 911 million in the second quarter.
Note also, from Monday, October 24, the company Groupon, which specializes in online distribution of discount coupons for shopping in local markets, should do its IPO on the basis of a valuation from October to December billion. However, it is far from the capitalization of 15 to 20 billion, of which Andrew Mason, founder of the company was still dreaming in June.
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 ocean depths to the financial markets, there is sometimes a step … that the U.S. company Odyssey Marine Exploration Exploration has already passed! Like the leader of the search for shipwrecks listed on the New York Stock Exchange since November 2003, other companies specializing in the maritime treasure hunting, smaller fund will come on the market and join the ranks of actors of the industry.
Even if the secret is king in the realm of salvors, one thing is certain: the hunt for sunken treasure under the sea can pay big dividends. Odyssey Marine Exploration, one of the few companies to communicate about its activities, has won the moon in September 2003 with the discovery of the Republic, an American steamer full of gold coins that sank off the coast of Georgia in 1865.After twelve years of research, American society has gotten hold of a booty containing nearly $ 400,000 of the coins in time, a current value between 120 and 200 million dollars. The company has retained 90% of the cargo. Odyssey was also able to develop products derived from this expedition. This discovery was also made flame the action of the group in exchange. And the eyes of the officers, "the 20 million spent on research is only one drop of water compared to the potential value remains of the Republic."
And if the gold and precious stones continue to dream the salvors, they are not the only treasure of value. Coins, guns, cups, bottles and even old cargo of raw materials can also be rewarding.Thus the British company Blue Water Recoveries, established in 1995, has collected 23,000 tons of precious metals through its research of wrecks.
Thirty wrecks profitable to recover
But finding a wreck diving at a cost. According to Unesco, nearly 3 million shipwrecks littering the ocean depths, but only a thousand of them contain enough valuables to recoup research.
The investigations carried out to find shipwrecks hundreds of feet deep are indeed very expensive. It requires a technologically advanced equipment and crews experts, for shipments that can last for months or even years. Besides the work prior to the launch of an operation: tracking down archival maps and documents all able to identify and map potential treasures.John Morris, co-founder and CEO of Odyssey Marine Exploration and felt "less than thirty wrecks are financially attractive to recover" all over the world.
In addition, the development of technology makes the research more accessible and attracts treasure hunters. The funds of the world's oceans are scrutinized. Shipments are mainly carried out by Anglo-Saxon societies run by financiers. In this context, John Morris believes that "all the wrecks are likely to have been visited in ten years: our niche is very limited." A race against time is thus committed, sometimes in defiance of the rules.
Regulations wrecks hardens
In late 2007, Odyssey has been unraveled court.American society has gotten hold of the treasure of the "Black Swan", code name given to the mysterious shipwreck discovered off the coast of Gibraltar and which Odyssey has kept the cargo of 17 tons of gold and silver. Problem, Spain claimed ownership of the vessel and the treasure and she wants to recover the loot and the location coordinates of the wreck, kept secret.
In fact, the marketing of the treasures of the sea is governed by laws. The cargo must be declared and identified only the treasures found in international waters can be preserved, provided that vessels not flying the flag recovered Spanish, English, French or American, if not the rights of loot then return to the countries concerned. And Unesco is trying to further tighten the laws to limit the looting.The United Nations estimates that particular decade, almost three wrecks were destroyed and exploited commercially in Asia, and regrets for each looting of 500,000 objects.
In France now, "all the maritime discoveries belong to the state," said the Department of underwater archaeological research and submarine, affiliated to the Ministry of Culture. However, the rewards are awarded to the discoverers of wrecks and treasures.
A researcher from the body of wreckage hunt bin Laden
The hunt Seabed no longer the sole purpose of finding gold and other fabulous booty. Recently, a researcher of wreckage and chose to leave the body in search of bin Laden.Bill Warren, a famous scholar of American wreck, wants to prove to skeptics the death of the leader of the terrorist organization Al Qaeda, and touch in passing a premium of $ 25 million. To do this, the diver of 59 years will probe the northern Arabian Sea to find the body of the former number one enemy of the United States. But according Sciboz Bertrand, also a researcher of wreckage, "a body search in the Arabian Sea while there are 2000 meters deep, this operation is totally impossible."
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Aug
21
Operation seduction for Joe Biden. The U.S. vice president, who loop a five-day official visit to China, wanted to reassure foreign creditors first in Washington on the economic strength of the United States. Americans "have never been in default and never will be," he said Sunday.
According to Joe Biden, even if the agreement signed last moment three weeks ago by Congress to prevent this disaster has cost the country a deterioration in its S & P notes, "The United States remains the best option to invest."
The message is "clear"
Beijing, which holds nearly 1.17 trillion dollars of U.S. debt, had been very critical of the U.S. government after the historic decision of the rating agency. The country was particularly called on Americans to stop living above their means.
The visit of U.S. Vice President in China, entirely focused on the issue of U.S. debt and the solidity of the world's largest economy, appears to have reassured. "You have sent a clear message to the Chinese public, that the United States will keep their promises and their commitments to their sovereign debt," has said Premier Wen Jiabao. This will ensure the safety, liquidity and value of good Americans. " The Chinese leader also claims to have "full confidence in the fact that the U.S. will overcome their difficulties and put their economy back on track for healthy growth."
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The Italian government, which has set a target to stop the speculative pressures of markets on Friday adopted an emergency order providing for a new austerity plan amounted to 45 billion euros over two years. These austerity measures designed to recover "20 billion euros in 2012 and 25 billion in 2013." Their adoption will enable Italy to cancel its public deficit to 3.9% today – by the end of 2013.
For the first time, the prime minister has agreed to weigh the tax burden with a "solidarity tax" on higher incomes. According to leaks distilled by the social partners, this contribution could rise to 5% for every € 10,000 for employees earning over 90,000 euros, and 10% in excess of 150,000 euros. Self-employed workers earning more than EUR 55,000 will be taxed at 41%. However estates and housing will remain free of taxation.A single tax of 20% will be charged on income from capital, currently 12.5% against and 25% of bank deposits. The introduction of fiscal federalism will be early in 2012, the government hopes to make them more aggressive fight against tax evasion us fast cash. The bill payments in cash will be severely restricted. A single municipal tax will also be created.Finally, the Economy Minister Giulio Tremonti said, in an interview with representatives of regional and local authorities, that the government intended "to reduce the number of provinces (departments)" and "consolidate the common" – today the number of 8000.
Heavy sacrifices will be required to Italians in particular with regard to the welfare (social services and family) who will suffer next year the bulk of the effort (about 20 billion euros) all levels of social assistance and transfers to local governments will be affected. However the Northern League had opposed the cuts, pensions will be spared. Women in the private sector will be encouraged to continue working until age 65, or 7 years older than today.
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Backlash. Banks, which had caused the market collapse in the fall of 2008, are caught by the crisis of states. Investors expressed their concerns about sovereign debt and the prospects of sluggish global economic growth, by sanctioning the financial sector on the stock market. The European banking index, the Stoxx 600 Banks, Tuesday and hit its lowest level in two years at 147.51 points. In one month, the U.S. Citigroup, the UK Royal Bank of Scotland (RBS) or the French Societe Generale lost nearly 30% of their market value. On both sides of the Atlantic, however, banks face the storm in better shape than two years ago.
At once massive recapitalizations – 100 billion euros for the only European banks – the institutions have strengthened their balance sheets. But the suspicion now exceeds basic banking.European side is of course the exposure to sovereign debt that is hunted. To reduce their deficits and repay their loans, the States' policies of fiscal austerity and hope to revive economic growth. The prices of banks are very sensitive to the beam of bad news on the front of growth.
Thus, the spiral of concern about the third largest economy in the euro zone, Italy, has greatly affected the French institutions. End of 2010, according to the Bank for International Settlements (BIS), their commitment to the Italian economy amounted to 393 billion dollars, almost half of the commitments of European banks.
In this context, investors expect, without much hope, strong signs of governments and the ECB."Many banks, especially Italian or Spanish, can not refinance at the current level of spreads, said Yves Le Cocheca, manager at CQS. The risk is therefore forced to see the ECB to increase its rate of liquidity at a time when the European banking system is facing more than 1000 billion of maturities in the next eighteen months. "Deposits banks with the ECB had "increased massively. It's a bad sign, "acknowledged Tuesday a member of the Board of Governors, Ewald Nowotny. Last Friday, they reached 134.8 billion euros, close to the highest level of the year in February. A rapid implementation of bailout Greek send a first message of confidence. Especially as the growing doubts about the level of discount that will pass the institutions participating in the plan payday loans no teletrack.With the exception of the insurer Axa, all French financial provisions have spent up to 21% of their outstanding debt to Greece, when RBS, for example, opted for a discount of 50%.
Subprime bill
U.S. side, it is not so much the loss of "AAA" rating of the sovereign or political differences on the treatment of debt madden investors, but the economic slowdown and its impact on the housing market. The control of the nationalized insurer, AIG, to sue Bank of America to recover more than 10 billion of losses on securities backed by mortgages, has not eased the climate. Banks may find themselves forced to pay a subsequent part of the bill of subprime. The medium-term prospects are hardly more reassuring.The IMF in the next two years, global banks will have to refinance to the tune of 3.6 trillion dollars, markets, stormed by sovereign states …
Shareholders' equity under pressure
The ratings downgrade of the sovereign debt of the United States will cause a shock to the global economy if it leads to alienation of investors for U.S. securities and in its wake a rise in interest rates. A scenario that has not materialized yet.The impact of the decision by Standard & Poor's short-term should be limited to a slight increase in the cost of borrowing for the Authority and U.S. government agencies.
The Federal Reserve has indeed ensured that the degradation would be no need for additional capital for banks, insurance companies and other institutions exposed to U.S. debt.
A spokesman for the central bank said the loss of "AAA" will not affect his view of the quality of U.S. Treasury: banks can still make these securities as collateral in its refinancing operations without paying fees additional.
The Basel Committee, responsible for European banking regulation, did not, however, expressed on the issue.The new supervisory body, Basel 3, which will take effect in 2019, encourages schools to hold sovereign debt, both in its solvency requirements only on the foreheads of the liquidity ratios. "Basel 3 has prompted banks to downgrade their balance sheets by holding much larger quantities than necessary sovereign debt, now decommissioned," so sorry Bonnevay Frederick, a partner at Anthera Partners.
LE FIGARO. -The markets are highly concerned in recent weeks of debt crises. In this context, the economy has not she also helped to disrupt?
Jean-Michel SIX. -If, of course. And we must start by saying that in times of summer holidays, the markets, which were then much lower volumes, overreact to any new economic situation. The lower the index is up or dive in a much more important than what happens in winter.
Right now, they are rather dive …
For several months, both sides of the Atlantic, the signals on growth are not good. United States, including employment prospects are very disappointing. In fact, employment is not really left since the 2008 financial crisis.Labor mobility is limited due to the housing crisis: moving to take a new position, which is much the United States, is difficult because it becomes difficult to sell his house. As for household consumption, it is significantly weakened by the debt levels of Americans. A total of 2011 should result in a 2% growth, which is very disappointing for the U.S., where the pace of activity is generally much higher than in Europe.
Europe, precisely, is it in a perilous situation?
The problem of Europe is the growing divergence between North and South. This is something that worries the markets, which are asking what does that mean in terms of consistency of the euro area.Then, after a strong first quarter, it was believed that the air hole is the second passenger (once the effects of the earthquake in Japan absorbed and oil back to lower levels). But we realize that the sequence is also likely to be poor.
Markets can they regain composure?
It is quite possible to restore calm in September thanks to coordinated action. What happened in July is that we have simultaneously witnessed a loss of U.S. leadership, unable to break the deadlock of debt and a crisis of leadership in Europe in a context crisis on public finances. This is exactly the opposite which would have required!
So how about it?
First, we must continue the work on European Governance. This is critical. Second, the timing of implementation of the second plan is important for Greece.The European Financial Stability Fund will be endowed with significant firepower, which is to say the least-welcome, but there is some impatience markets. It is important not to drag the national parliaments to adopt the device. The political signal must come quickly. Finally, the ECB has played its role, it must continue to appear reassuring.
That's what she tried to Thursday …
The measures announced by President Trichet, in particular the resumption of purchases by the ECB on secondary markets, are extremely positive.
Investors do they always trust in the euro area?
Yes. Investor confidence, especially in emerging countries has not disappeared. She even remained strong, as evidenced by the excellent performance of the euro since the beginning of the crisis.The euro zone faces a crisis of governance, not a crisis of its currency.
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