Business & Financial News

The White House expressed opposition Tuesday to a general moratorium on foreclosures, fearing that this would affect the housing market slows down and does a cover of this sector.

"A moratorium has expanded a number of undesirable consequences," said the press spokesman Robert Gibbs.

He added that the government was committed to tackling the root of the problem of early seizures."We want to be just and necessary measures to ensure that the legal proceedings continue," he said.

"At the same time, we do not want the housing market and the recovery of real estate are suffering."

A source familiar with the matter told Reuters on Sunday that more than two-thirds of American attorneys general had opened this week a joint investigation to determine if banks have entered some homes without due process.

Industrial production in France remained stable in August compared to last month's rebound in July was revised down slightly, according to data released Monday CVS-CJO by INSEE.

Twenty-four economists surveyed by Reuters had expected an average increase of 0.3% in August, with estimates ranging from -0.5% to +1.0%.

The increase of industrial production for the month of July compared to the previous month was revised down to +0.8% against +0.9% in the first estimate.

Manufacturing output, which is to say, but excluding energy with food included, also remained stable after revised upward to 1.2% (+1.4% in the first estimate) the previous month.

During the three months to late August from the previous three months, production in manufacturing declined by 0.1% and in the entire industry by 0.3%.

Governments and businesses are starting to worry about the impact of the rising euro on European growth, but the single currency is still far from levels that could actually penalize the recovery or lead to emergency measures to to slow its progression.

The euro has appreciated by about 10% against the dollar in the space of one month and reached Thursday, the bar $ 1.40, generally considered by some officials and European exporters as its "threshold tolerance. "

The chairman of the Eurogroup Jean-Claude Juncker ruled Friday that the euro was at $ 1.40 too high because, he argues, the U.S. dollar at this level does not reflect the fundamentals of the United States.

France, whose trade balance has deteriorated this year, has made reform of the international monetary system a priority for the presidency of the G20 will take it from mid-November.

French authorities fear a new round of quantitative easing by the Federal Reserve of the United States weaken the dollar further.Moreover, if China continues to refuse to allow its currency to appreciate significantly against the greenback, the euro could end up paying the price of global trade imbalances in appreciating rapidly.

"Europe clearly has something to say in this debate is precisely because the risk that the euro becomes a variable adjustment," said one French official.

Even Germany, which generally show greater deference than its European neighbors in its comments on the exchange, promised to vigorously participate in discussions on currencies in the G20.

MODERATE REACTIONS

In the private sector also, there are voices of concern about the rapid rise of the euro.

"We reach the level that starts to be problematic for the export performance of European enterprises," said Marc Stocker, chief economist at BusinessEurope, the largest federation of European employers.

For the European aircraft manufacturer Airbus, often presented as the European company is most sensitive to the dollar, ten cents a variation of the exchange rate of the euro would result in estimated by a differential of one billion euro in terms of operating profit.In the first half, EADS, the parent company of Airbus, has reported net earnings of 185 million euros.

However, the reactions appear relatively moderate compared to those of late 2009 when the currency was at $ 1.50, and those from mid-2008 when she hit the highest record of $ 1.60.

At the time, governments from the European Central Bank to the European Commission, to Member States, had warned against the threat posed by the strong euro.

This time, the reactions are less numerous and more measured, the ECB president Jean-Claude Trichet declined to describe the evolution of the euro as "brutal" as he had done on several occasions the past.

In 2008 as in 2009, the ECB has not intervened in currency markets to try to weaken the euro, suggesting that the probability of such an operation today is relatively low.

One possible reason could be that this moderation weighted trade, the appreciation of the euro against the dollar is actually more limited.

A RISE in perspective

An index measuring the evolution of the euro against a basket of 21 currencies weighted exchange shows that the euro is now at the threshold of 106.1.The last time the euro had reached $ 1.40 in January 2010 it was around 110.

Much of the foreign exchange market also considers it unlikely that a further rise of the euro relative to current levels. A Reuters poll of 60 analysts to suggest that the European currency is expected to decline to a median level of $ 1.30 within one year.This estimate, however, was revised up from an earlier poll that saw $ 1.23.

In addition, the appreciation of the euro does not seem large enough to threaten the recovery in the euro area.

A 10% trade-weighted dollar, euro drags down economic activity in the euro zone by 0.25 percentage points in the first year and 0.5 points over two years, says Jürgen Michels, an economist at Citigroup.

Olivier Blanchard, chief economist at the International Monetary Fund, is not worried about the rising euro against the dollar and believes it should not continue.

"I think we turned to parity levels we had seen a few months ago before the European crisis.I do not see anything alarming, "he said Friday on the television channel France 24.

Siemens will supply 10 trains Eurostar high-speed next generation through the investment plan of 700 million pounds sterling (796 million) incurred by the railway company, announced this last Thursday.

The German industrial group won the contract while the French company Alstom has hitherto been the main provider for the operation of Eurostar high-speed lines Channel.

Eurostar, a joint subsidiary of the French SNCF, SNCB Belgian and British public CSF group, did not specify the terms of the contract with the German group.

The former Societe Generale trader Jerome Kerviel, held solely responsible for a historic loss of 4.9 billion euros in 2008, was sentenced Tuesday to five years in prison, three farms.

Him guilty of "breach of trust, forgery and use of false and fraudulent entry of data into a computer system", the Paris court forced him to repay the damage, exactly 4,915,610,154 euros.He dismisses any fault of the bank.

"By his deliberate action, he (Jerome Kerviel) has jeopardized the solvency of the bank that employed the 140,000 people which he belonged and whose future was seriously undermined," reads the 73-page ruling.

"The magnitude, specificity and context of crisis in which they are registered, these acts have undoubtedly undermined the international economic order," added the judges.

$ 4.9 billion, that would Kerviel over 177,000 years to repay if he gave all his current salary of 2,300 euros per month, is the largest financial penalty ever imposed in the history of France cons an individual.

The young man of 33 years will appeal, said his lawyer, Olivier Metzner.It will not pay right away and not return again to prison, where he has already spent 38 days during the investigation. The second trial should be held within a year.

"It is unacceptable to judge his character totally excessive," Mr. Metzner said as he left the courtroom.

Jean Veil, Societe Generale lawyer, welcomed the court's approval."Societe Generale has been the victim of the case, it is recognized today, I can only be satisfied," he said.

The attribution of responsibility for the loss to the trader away from tax and legal risks for Societe Generale, which was covered by a "class action" in the United States.

POSITIONS OF 50 BILLION

Jerome Kerviel has admitted to taking positions since 2005 at risk dizzy on European stock market indexes have reached nearly 50 billion euros, and camouflaged by other orders passed from dummy.

Unsettled after their discovery by the bank, in full rout of financial markets, these positions have caused the final loss of the heavier Financial History.

At trial last June, the former trader, while admitting mistakes and expressing "regret", had complained of his superiors, who he says have turned a blind eye.He accused the wider financial system and its operation.

His lawyer had submitted "a creature of the system," lampooning the supposed hypocrisy of finance.

The court did not follow and concludes that nothing in the case no suggestion that the bank was able to tolerate or even suspect the actions of its employee.

KERVIEL Emotionless

According to the ruling, Kerviel was located in "full knowledge of causes beyond its mandate to trade" because it had received written professional instructions, seized by the police, prohibiting the acts he admitted.

He admitted at trial that she had been aware that the limit of collective commitment to end the day for his "desk" trading was 125 million euros.

Judges paint a portrait of the accused fatal, condemn its "cynicism", his "coolness and composure Standing misleading."

"He engaged in a total reversal of roles in positioning itself as a victim of a system which he said the creature," wrote the court.

Judgement shall charge the same responsibility for the deterioration of working conditions for employees of the bank following the case and ordered him to pay 2,500 euros compensation to each of two employees, the civil parties.

Dark suit and tie, Jerome Kerviel remained impassive on the face of trial, remaining time sitting on his bench, looking at his mail on his laptop. He left the court, avoiding journalists.

Hochtief is preparing to thwart the hostile bid by its Spanish shareholder ACS said Monday Siegfried Mueller, who directs the works of German construction group.

Siegfried Müller said that employees of Hochtief supported the direction opposite to the takeover of ACS.

Later in the day will hold an extraordinary meeting of the supervisory board about it.

"We plan events and other measures," he said.

ACS, which already holds 29.9% stake in Hochtief, revealed last month that an offer Chief Executive Herbert Lütkestratkötter quickly dismissed, holding hostile.

For this job, ACS is a little more than half of the group's capital, which gives him control of cash flow for the Australian subsidiary Leighton.

Offering eight titles ACS Hochtief held five titles, the Spanish group has complied with the minimum price required by German law. This offer values the share at 32.85 euros and ACS that of Hochtief to 50.97 euros.

The CEO of Hochtief therefore seeking a white knight to thwart the approach of ACS, which he says, took him by surprise, we read in an interview with the magazine WirtschaftsWoche.

French carmakers have shown commitment to the World Cup remain on the high end, a decision that the potential for growth in emerging markets and China in particular has probably facilitated.

The automotive crisis of 2008-2009 led to the freezing of several premium programs and led analysts to question the interest in the hexagonal manufacturers continue to invest in a market dominated by the trio Germanic BMW, Audi and Mercedes.

While they remained fairly elusive thus far about the revival or continuation of their high-end projects, PSA and Renault held during the show press days of the Paris Motor remarks suggesting that the issue was longer posed.

"Our two brands, we will draw up, we go up in range, and there is no such strategy without a strong and assertive presence on the D-segment (major roads)," said Philippe Varin, CEO of PSA during the press days before the opening of the exhibition.

Laurens van den Acker, newly appointed director of design at Renault, said he agreed that all manufacturers require a few florets.

"We are a generalist brand, and we can not confine ourselves to small cars and high tech cars, we must have a complete and segment D is a part," he said, referring in particular to the space, a flagship model of Renault.

The renewal of this great family van upscale was suspended during the crisis but the CEO of Renault, Carlos Ghosn, announced in the World on Thursday that new space was going to happen. "We can not be without a global manufacturer of high-end," he added.

REINFORCEMENT IN ASIA

Several recent decisions of the French manufacturers had thrown the disorder in their factories specialized in premium models – Sandouville for Renault and PSA Rennes – by being interpreted as a first step towards a relocation of a segment become difficult to return the light volumes.

Renault has decided to market in Europe under the name of the great Latitude SM5 sedan made by its Korean affiliate, while VelSatis still has no replacement.SAP has meanwhile launched the 508, its first model designed in conjunction with the European and Chinese market.

In this context, the rumor spread last week that the replacement of the C6, positioned above the segment C5/508, would be relocated to China.

"In large sedans, which we will continue to work, we have a strategy that will be more and more European at the same time an Asian, especially Chinese," said Philippe Varin.

"That does not mean that the replacement of the C6 will be manufactured in China for the European market," he added.In contrast, the Chinese market is a boon as it rises like the example of 508, which will be manufactured in France for the European market.

"It's an asset we have, in the future to amortize our development, not only on the European market but also in Asian markets, which has not been the case in the past," added Philippe Varin.

Renault may account for its share of its alliance with Nissan, which owns the premium Infiniti brand very, and ultimately rely on its recent merger with Daimler, as these partnerships offer substantial synergies in development costs.

"Paradoxically, we gain a lot of money on small cars and you lose the fat, while for other manufacturers is the opposite (…) Nissan, which makes a lot of money on the high end, we can help change things, "he said Carlos Ghosn in the world.

The global automotive market will be drawn again in 2010 by the catching of China and the local appetite for big cars "statutory". According to estimates, sales in the Chinese market should grow 15 to 20% after surging 50% in 2009. PSA particular account sell 200,000 copies of the 508 full-year, one third in China and two thirds in Europe.