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.

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 monetary institution observes that the business climate has deteriorated slightly in October in the industry (-1 point 96) and in services (1 point 95). In industry, the factories do not increase the use of production capacity. In addition, the order books are somewhat empty. In services, "the outlook is geared towards a stable activity in the short term," analyzes the Bank of France us fast cash.

The monthly survey of the Bank of France confirmed the slowdown in growth by some economists. In view of the evidence advanced PMI, France would be even already in recession, say the economists at JPMorgan. Another U.S. institution, BofA Merrill Lynch, believes that France is expected to decline 0.3% of its activity in the fourth quarter compared to the previous one, and not resume growth until late 2012.

So, if the average of analysts' forecasts remains at 0.9% growth for the euro area in 2012, large banks have seen their shelves these days. On the downside. Exane BNP Paribas has drastically revised its analysis and expects zero growth next year to France, while in September it still expects growth of 1%.

Earlier in the day, the announcement of the referendum led to a further fall in European equity markets."It's a strange way of acting," said the German Rainer Brüderle, chairman of the FDP parliamentary group (Liberal), a partner with the Christian Democratic Union (CDU) of the ruling coalition. "It looks like someone is trying to emerge from what has been agreed. Prime Minister Papandreou has agreed a rescue plan that benefits the country. The other countries are willing to considerable sacrifices for decades of mismanagement and poor governance in Greece, "he lamented over the airwaves of Deutschlandfunk payday loans.

Finnish Minister for European Affairs Alexander Stubb, said he agreed that the referendum will be equivalent to a vote on the country's membership in the euro area. A view shared by Christopher Pissarides, Nobel Laureate: "If no victory, Greece would fail immediately.The leader of the opposition conservative (New Democracy), Antonis Samaras, said the Prime Minister "can not govern and instead to withdraw with honor, he just dynamite." "I never thought that Papandreou would make a decision as dangerous and frivolous," said the former Foreign Minister Dora Bakoyannis, who heads the Democratic Alliance (a small center-right party).

Even the national press is unleashed. "The country will be paralyzed by endless debates, the government, the state apparatus and institutions no longer function," says the conservative daily Kathimerini.

"A minimum of democracy"

However, few voices to salute the decision of the Papandreou government.

The two main opposition parties, the Social Democrats SPD and the Greens, reported Tuesday their intention to vote a joint motion with the majority. The Chancellor should reach the European summit armed with a strong mandate and clear the lower house of Parliament, even though his own majority does not always gained him Tuesday night.

"I am bound by my duties to avoid damage to the German people to do what is good for the German people. This is my guideline in the negotiations, "said the Chancellor, calling for the broadest possible support of the deputies."We have reached a tentative agreement between the majority and the opposition," said Carsten Schneider for his part, the SPD budget expert.

The joint motion of the multiplication of the European Financial Stability Fund (EFSF) implies that the European Central Bank (ECB) continues to buy bonds on the secondary market. In a draft final communique of the summit on Wednesday, traveling Tuesday between European capitals, the Heads of State and Government were preparing yet explicitly encourage the ECB to do so.

The Chancellor said that she refused the European states impose a course of action to the ECB, exposing a new source of tension with its partners on the eve of EU summit. "We are negotiating for a position of the ECB, who says she wants to do to help countries in the euro area in crisis.Do not let emerge the false impression that the policies expect something of the ECB, "she said, stationing themselves in guaranteeing the independence of the monetary institution payday loan online.

Avoid the humiliation

Angela Merkel told the parliamentarians that the strike force of EFSF should be given to over 1000 billion euros with leverage. The reduction of the Greek debt to private creditors imposed should be "above 50% and below 60%," she added. The joint motion submitted to the Bundestag is also considering the deadline of June 30, 2012 for a recapitalization of European banks.

Merkel faces a new rebellion against its European projects within his own camp. Tuesday, during a test vote, seven members of the CDU, his own party, voted against the motion of EFSF multiplier and three others abstained.A month ago, during a Bundestag vote on extending the powers of EFSF, Merkel had already had to fight to the end to avoid the humiliation of not collecting his own camp. The Chancellor had finally obtained a large majority.

In a ruling last month by the Constitutional Court, the German government can not engage with its European partners on budgetary matters without a mandate from the Bundestag.

Merkel might have to settle for a vote of the Budget Committee. At the insistence of the opposition, she finally chose to ratify the text in plenary session, thus saving the reproach of wanting to leave the key in Parliament.Thus it will arrive in Brussels also armed with a very strong mandate, which will leave only a small place in the negotiation … to better enforce German diktat.

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According to the scheme blessed by Bercy, The Post Bank is expected to take over from Dexia on new loans, via a joint venture which it will own 65% and the Deposit 35%.But in the current discussions, Philippe Wahl, chief executive of The Bank intends to significantly reduce mailing the scope of its intervention.

According to an internal document that has acquired Le Figaro, a subsidiary of La Poste aims to establish "a secure and cost-effective model." A slogan: zero risk on its balance sheet, zero financial resources and significant margins. The Post Bank and excludes to the liquidity available for its core businesses such as home loans or consumer credit in the service of this new clientele. A surprise because it is precisely to tap into surplus resources of the Post Bank that it had been in the loop.

Instead, the "new player in the financing of local authorities" – as he describes himself – is that its production loan is refinanced entirely by Dexma, the tool securitization Dexia which the Deposit will hold 65% Dexia Bank 30% and 5% PO. This necessarily limited new production.

The strategy of small steps

The Postal Bank does not hide it: it does provide "a gradual entry in the market." It must be said that the bank does not have jurisdiction over this area. A solution would involve Dexia to the joint venture, but Philippe Wahl opposed it, arguing that he had drawn a line under the past.If "tools and know-how" will be taken, much remains, at this stage in DCL, which will continue to do business consulting and other brokerage insurance: paying as many services that are generally obtained when The bank, first granted a loan, often less profitable. In other words, the relationship promises to be complicated.

The strategy of small steps of the Post Bank suggests some difficult years for local governments. While their financial needs are increasing, the supply of credit is reduced to a trickle. The difficulties of Dexia added in effect to the decision of Savings and Credit Agricole others to desert, from mid-2011, this market is too expensive in terms of regulatory ratios.The Deposit has set up an emergency budget of 3 billion euros, when experts estimate that 7 billion unmet needs. Next year it will be even more.

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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As for the index of business climate as a whole (including services, construction, wholesale and retail trade), it falls along eight points to 97 points. Clearly, "the economic climate deteriorated in all sectors except construction," says INSEE.

Even pessimistic side of French households, whose confidence index has lost five points to 80 points in September, according to data from the institute free business cards.This is its lowest level since February 2009. This indicator had a slight gain in July (three points) after months of stability. But in September, households appear significantly higher than in July to anticipate an increase in unemployment (23 points).

To this must be added the concerns of their income: between July and September, the opinion of households on their personal financial situation has deteriorated further, the balance corresponding dropping six points. Thus, the French are less numerous than in July to consider appropriate to make major purchases (-5 points). About their nest egg, they also feel that the time is not conducive to spare that the balance corresponding losing 8 points in its long-term average.

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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Banks lend to their clients because at rates directly correlated to the performance of bonds. However, the higher the rating of a country, the lower the rates at which it must borrow increases.According to rating agency Standard & Poor's, the loss of "AAA" could cost between 0.25 and 0.5% growth rate in the United States. Analysis challenged by some economists, who point out that Japan, after seeing his note deteriorated in the early 2000s, had seen the contrary interest rates fall.

"Zero risk"

Still, never in the history of the United States has lost their prestigious note, despite a technical default part in 1979 (a few dates could not be met on time). It symbolized far "zero risk" to markets, which could buy U.S. debt with the confidence of being repaid.

A decline in the note, a real paradigm shift, "would affect the actions and change," warns Ciaran O'Hagan, strategist at Societe Generale. How much? Hard to say.The United States never lost their prestigious note, "the unprecedented nature of this reduction makes it difficult to determine all the ramifications of the financial markets and the economy," says agency Fitch.

Thus, it is not clear that the long-term investors seeking safe investments are fleeing the U.S. Treasury. For example, foreign central banks, which own 33% of U.S. debt, will not sell their shares, say analysts surveyed after UBS interested. According to Fitch, the Treasury will keep the short and medium term "their status as reference for interest rate markets."Clearly, there will be no widespread panic in the market for U.S. debt.

More than a threat to the United States themselves, "noted a deterioration in the U.S. crystallize the challenges for all developed countries, probably by opening the way for the degradation of other countries," says Jean- Baptiste Pethe, Exane BNP Paribas. If the U.S. lose their "AAA", France and the UK may well follow. The United States could then argue them, as Secretary of the Treasury Nixon had done about the dollar, "it is our rating, but your problem".

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