Business & Financial News

Faurecia announced Wednesday the acquisition of 18.75% of the Chinese automotive Xujang Group, where he became the strategic shareholder.

The Chinese automotive market, already become world number one, is expected to double in size in the coming years.

The French supplier said in a statement it will rise in the capital Xujang Group through a capital increase reserved.

It also said it had signed an agreement with the Chinese in light of expanding its range of products and services in the seats, interior systems and modules and acoustic liners.

Xujang Group is a leading provider of group FAW (First Auto Works), the first Chinese carmaker, and its international subsidiaries including FAW-VW (Volkswagen and Audi).

Faurecia employs 4,000 people in China where it has 17 factories – with a goal of thirty in 2014 – and four search and development centers.

The group targets a turnover of 1.7 billion euros in China in 2014 against 670 million in 2009, all of Asia before then represent 15% of its total sales instead of 7% per year past.

In total, Faurecia expects a turnover of 16.5 billion euros in 2014, a jump of nearly 80% compared to 2009, driven notably by the growth of emerging countries and accompanied by a significant recovery in operating margin.

States must reduce their deficits and central banks should not take too long to raise their rates because the side effects of prescribed remedies against the global recession could trigger a new crisis, says Bank of International Settlements (BIS).

The economy and global financial markets are recovering but the recovery is still fragile in the advanced economies and the debt crisis in the euro area threatens the recovery, the agency said in its annual report.

"We can not expect the resumption of strong growth to begin the process of correcting policies," said its director general, Jaime Caruana, at the general meeting.

"In particular, a postponement of fiscal adjustment policies that would create a risk of heightened financial volatility, market disruptions and tensions in the financing."

The BIS, who plays the role of central banks' bank and the discussion forum for the monetary authorities, believes that reform of financial systems is critical to prevent further crises.

The major industrialized countries meeting at the G8 commitment to have abandoned an agreement to liberalize global trade through the Doha Round this year, but felt that bilateral or regional negotiations were pending to help remove the barriers to free trade.

The communique issued after their annual summit in Huntsville, simply remember "their commitment to the successful conclusion of the Doha development agenda, based on progress already made."

At the G8 summit of L'Aquila in July 2009, as at the last summit of the G20 in Pittsburgh, September, 2010 deadline for an agreement in the World Trade Organization (WTO) had been confirmed .

Launched in 2001, the Doha Round negotiations have stalled over disagreements on issues like the abolition of agricultural subsidies in rich countries and opening markets in emerging countries.

'I'm never going to say that Doha is death, "said Canadian Prime Minister Stephen Harper.

'I think that this is not true and I do not think you can afford to say.We must find a way to reach a positive conclusion in time. "

"Those of us who believe in free trade will not sit idly (…) Canada and many other governments are determined to aggressively seek more bilateral and regional trade agreements as a means to advance the process as that the Doha talks remain frozen, "he further said.

"We will continue to resist protectionism and promote liberalization of trade and investment in the WTO by reducing national barriers and through bilateral and regional negotiations," one reads in the G8 communique.

There is no reason to believe that the sovereign rating of the French debt ("Triple A") is threatened, confirms Christine Lagarde.

"The notation of France is triple-A stable there are other triple A which are less stable, I look across the Channel by example", said Minister of Economy on France Inter.

Asked if the memo from France was threatened, she replied: "There no reason to think so."

Referring to reform pensions, it said the government planned and sent "a message of security" market.

"We need lenders who invest in France to know that the risk that risk is well managed," she stressed.

Agricultural Bank of China plans to raise up to $ 11.4 billion (9.3 billion euros) as part of its planned initial public offering (IPO) in Hong Kong.

The third bank in China with 1.400 billion dollars in assets, which will launch on Thursday the promotion of its IPO, has established a price range from 2.88 to 3.48 HK dollars per share issued in the IPO in Hong Kong said here Wednesday with sources close to the deal.

The price range for the part of the Hong Kong IPO of AGBANK expected to bring out a ratio between the Group's market capitalization and its book value of between 1.55 and 1.79 before the regulation of IPO , before taking into account all options, and from 1.53 to 1.76 after the operation, according to sources.

A senior bank official said Wednesday in a Chinese newspaper that the IPO in Hong Kong would be at 2.80 Hong Kong dollars.

AGBANK plans to enter the Stock Exchange of Hong Kong will emit 25.4 billion of shares so that the square of Shanghai with the issuance of 22.2 billion shares, representing 8% and 7% of its total capitalization.

Sources close to the situation have previously reported that the Chinese bank has finalized a list of eleven investors will reference 5.45 billion worth of stocks in the introduction in Hong Kong.

If the bank succeeds in achieving the goal of 23 billion it has set, also counting the 11 billion it intends to raise in Shanghai, this will be the largest IPO in history.

The Nikkei closed down 1.22% Tuesday, a victim of profit taking after earlier touched a month on Monday, prompting some investors to go on sale.

The Nikkei lost 125.12 points to 10,112.89 and the broader TOPIX, yielded 7.93 points (-0.88%) to 894.56.

Analysts said the break after the logical progression of 3% recorded last week by the Nikkei, its best performance in three months, and up Monday, and they add that the underlying trend upwards is probably not questioned.

The decline in Tokyo, however, was limited by the fact that the stock exchanges of Hong Kong ShanghaShanghai and remained in the green Tuesday.

The major export values are among the largest declines, like Nissan (-1.74%) and Honda (-1.0%).

The technology has also suffered significant decline in the Nasdaq on Monday (-0.9%): Sony has dropped 3.24% and Tokyo Electron 3.6%.

On the upside, Tokyo Electric Power (TEPCO), the first power company in Asia, gained 0.12% after the Nikkei newspaper article referring to a proposed investment of "tens of billions of yen" in a new plant coal in Vietnam, as part of an alliance with a local group.

The President of the Eurogroup Jean-Claude Juncker, called Sunday for more discipline in the statements of European leaders, which can trigger the "irrational movements" in the markets.

At the International show on TV5 and RFI, the Luxembourg Prime Minister alluded to the new Hungarian government but also to officials in member countries of the euro area.

"Any sentence poorly thought gives rise to irrational movements", said President of the Eurogroup on the eve of a meeting of finance ministers of the euro area.

"It takes a certain verbal discipline, we can not say anything," he said.

The center-right Hungarian, came to power in late May in Budapest, accused the previous Socialist governments have sought to hide the deficits of the country.

On Thursday, a website has reported the remarks of Vice-Chairman of the ruling party saying he found the finances in a worse condition than expected and believed it would be difficult to avoid a crisis similar to that of Greece.

Markets have reacted badly to the suggestion of a risk of default, contributing to a sharp decline in European stocks and Wall Street and the weakening of the euro, which fell Friday to below $ 1.20.

"The Hungarian situation does not worry me," said Jean-Claude Juncker Sunday but "there have been imprudent of some leaders.

EUROPEAN RATING AGENCY

He was asked about the course of the single European currency, which hit Friday its lowest level against the dollar since 2006.

"I never comments on exchange rates.I was surprised by the rapidity of the fall but I'm not worried by the current level, "he said.

"The euro in the eyes of the market looks very weak (…) The markets believe that we have less reactivity than a State, must now be careful in the interpretation of what they may have," he said.

On Friday, French Prime Minister said he could see that "good news" in the current level of the euro, which has provoked an immediate market.

Francois Fillon mentioned was initially the "parity" between the euro and the dollar before adjustments.

After two days of meetings in South Korea, the G20 finance ministers have called on governments to restore order in public finances to restore calm in financial markets shaken by the budget crisis in Europe.

They buried the proposed creation of a global banking fee.

"If such instruments should be created, they should be at international level," said Jean-Claude Juncker Sunday.

He has however decided to create a European rating agency.

"A single currency and a single economic area in need of a rating agency," he said, denouncing the "methods not quite transparent" of the three existing agencies Anglo-Saxon.

According to Christine Lagarde, who participates Friday 4 and Saturday, June 5 at a meeting of finance ministers and central bankers from the G20 in Busan, South Korea, there exists within the G20 a "mainstream to bring the level of fiscal consolidation number one priority. more minority voices Some insist on the need to support growth. "

The French Minister of Economy has nevertheless emphasized "the need for three things simultaneously: maintaining growth, fiscal consolidation and reform." "We all have the same concern: we must make fiscal consolidation, there is no doubt. We can not afford the risk of having high interest rates that would destroy the trust and which are not at all compatible with the need for investment.But at the same time we must not strangle growth, "she said.

Lagarde also said that the European members of the G20 had convinced their partners merits massive plans for the stabilization introduced in several euro area members, mainly Greece, are experiencing serious debt problems. "I felt that our partners were somewhat reassured by the mechanisms we have put in place," Plassnik said. The U.S. Treasury Secretary Tim Geithner "noted the speed of the two plans," she explained in particular.

The ministers and central bankers from the G20 should discuss Saturday reform the global financial system, and in particular the possibility of imposing a tax on banks to force them to participate in government efforts to contain financial crises. "I hope we will reach a consensus on principles.On how to schedule, we'll see, "said Lagarde. Countries that oppose a tax would believe that their banks will not pay to repair the financial rout which are primarily responsible for U.S. banks and Europe.

Rating agency Standard and Poor's downgraded a notch Friday mark the SNCF, estimating that "the EU rules could make it more difficult for possible financial support" to the French government owned company. The note of the long-term debt of the SNCF has grown from "AAA" – the best possible – to "AA +", the view is stable. This implies that Standard and Poor's should not deteriorate further note soon.

"We believe that the most profitable activities (the SNCF) will be gradually exposed to competition," said Standard & Poor's said in a statement. Since December 2009, the European market for passenger rail, once the preserve of public operators, has entered a gradual process of opening to competition."In addition, we believe that European rules could make it more difficult for possible financial support from the French government," the rating agency added.

"It's still a very good note! Many European states have a rating of AA +," responded David Azema, the deputy director general in charge of finance and strategy of the SNCF, which is expected since the prospect was negative since September 2008. "They look at the degree of support that the station can expect from the state," French, "he commented to AFP. "The AAA rating corresponds to an almost automatic support of the State in case of default and AA + to support very highly likely." "Specifically, the additional financial burden will be quite low for the station," said David Azema, who believes "the order of a few million."

For Mr.Azema, "there is no direct connection with the controversy over the status of the station," as "the negative outlook made this likely evolution.

The European Commission contests the status of a public industrial and commercial (Epic) from SNCF, saying it "would imply a guarantee of unlimited financial debts, which it considers contrary to European competition." "We do not expect the station ownership changes in the medium term, although there might be increasing pressure from the EU to change the status of Epic of SNCF," said Standard & Poor's.

Imports volumes of the euro area (annual% change) 2010 2011 Aurel BGC 6.4 8.4 Banco Santander 3.3 4.7 BNP Paribas 4.2 4.4 5.0 7.1 Merrill Lynch BoA CPE 4 , 2 4.0 Deutsche Bank 5.1 4.4 4.3 4.3 Euler Hermes Feri EuroRating services 3.5 4.3 Goldman Sachs 2.8 2.6 France 3.8 4.4 HSBC JP Morgan Chase 6 , 8 NC Natixis Nordea 4.5 1.8 5.5 5.3 3.7 4.6 Oxford Economics Societe Generale UBS 6.8 4.5 3.9 5.0 Average 4.6 4.6 Netherlands 2 Top 8 1.8 6.8 8.4