Business & Financial News

Novelty, even wealthy households are tightening their belts during the holidays.

More than half of French plans to tighten their budget for holiday season, a larger proportion than last year, according to an Ipsos poll conducted for France Bleu Monday.

Sign that the economic crisis weighs more than in 2009 on consumption, 53% of the French plan to tighten their budget, against 43% in 2009.

Only 5% plan to spend davatange, while 41% of respondents plan to spend as much as last year.

The reduction of the budget for year-end holidays primarily affects lower income households (64%), but she is more prevalent among higher income (35% instead of 23% in 2009).

This survey was conducted on 19 and 20 November 2010 with 1,024 persons, constituting a representative sample of the French population aged 15 and older.

General Motors has completed Friday the biggest IPO ever in history, amounting to $ 23.1 billion (17.4 billion euros).

The U.S. carmaker has exercised the over-allotment option a week after his return to the market, increasing the amount of the operation of three billion dollars.

These additional titles allow IPO General Motors beat the record set last July by the Agricultural Bank of China – $ 22.1 billion.

GM said that banks Underwriter – Morgan Stanley, JPMorgan Chase, Bank of America Merrill Lynch and Citigroup – had purchased 71.7 million additional shares for a total of 2.37 billion and 13 million shares for 650 juniors million.

The IPO of General Motors last week had allowed the builder to raise $ 20.1 billion of common and preferred shares, which was already the largest IPO ever in the history of the United States.

This marks the first step in a spectacular recovery, still considered unlikely a year ago, when the manufacturer has been rescued from bankruptcy by the U.S. federal government money to the tune of 50 billion dollars.

The success of the IPO could help the Obama administration to argue that the auto giant's controversial rescue by the taxpayer was worth being made.

The White House said Americans should return the investment made by their government, which hopes to fully recover its implementation by the end of 2012.

The U.S. Treasury is the main shareholder in GM with one third of outstanding shares.

On the first day of trading Nov. 18, the GM shares rose 3.6%. It closed Friday at 33.81 dollars, 2.5% above its IPO price of 33 dollars.

Several senior members of the eurozone spoke Thursday to ensure that the euro area was not likely to burst.

Many economists, especially in the United Kingdom and the United States, now suggest a dislocation of the euro area, pulled by the high deficits of the countries known devices, a significant loss of competitiveness vis-à-vis the German locomotive.

"There is no danger," said Klaus Regling Thursday, Director of the European Financial Stability (FESF), the daily Bild that he was asked if the euro zone could burst.

"It is not conceivable that the euro collapses."

"Of course the situation is serious," he said when he was asked to comment on the remarks by Chancellor Angela Merkel Tuesday judging the situation of the euro "exceptionally serious".

The FESF was created this year after the crisis in Greece and is expected to intervene on behalf of countries in the euro area which would have financial difficulties.

"No country will not abandon the euro voluntarily. For the lowest, it would be economic suicide, and also for the strong too.Europe would lose half its value policy without the euro, "said Klaus Regling.

He added that France and Italy were in no danger and that other EU countries should not exert pressure on Ireland to increase a particular type of tax.

"Italy has weathered the crisis and its public deficit under control. And France has the same credit rating as Germany," he said.

Ireland agreed Sunday on a principle of EU aid and the IMF at the price of a four-year austerity program it presented on Wednesday.If this plan includes an increase of VAT, it does not affect the tax on corporations, including the very low rate (12.5%) goes wrong with the other EU countries.

PORTUGAL THE MONITORED

The cost of insuring debt in Ireland has continued to climb Thursday, the markets remain skeptical of the announcement of the terms of the austerity plan in Ireland.

The European clearing house LCH.Clearnet noted Thursday for the third time in a fortnight, his margin calls on the Irish government bonds to raise 45% of net positions (against 30% since November 17) to reflect the performance gap between the Irish and German government bonds.

Fears of contagion to the Irish Iberian peninsula still weigh on markets.The euro, in particular, lacked momentum to rebound above 1.3335 dollars around midday.

This fear that Portugal and Spain may be forced to accept an international plan similar to the assistance to Greece in the spring and now in Ireland causes a surge in borrowing costs in Portugal and the Spain.

The Portuguese Ministry of Finance on Thursday denied a meeting between the Minister and the leaders of the four largest banks in the country, information announced by the daily Diario Economico.

Vitor Constancio, Vice-President of the European Central Bank and former governor of the Bank of Portugal, for his part reiterated that there was no connection between Ireland and Portugal.

Each case is different, the banking and financial Ireland and Portugal are different, he stressed, adding that he did not hand the game predictions about the need for assistance in Portugal.

Portugal experienced its first general strike Wednesday for 22 years to protest against austerity measures in Budget 2011 that the government hopes to get approval Friday by the parliament.

The European Commission has advised that no discussion was initiated concerning funding of the EU to bring in other countries.

"The rear Financial are insured, they are well fed and they are ready to be used where necessary and upon request.There are currently no discussions in this direction, "said Amadeu Altafaj, spokesman for the Commission, during a press briefing.

The chairman of the Eurogroup Jean-Claude Juncker for his part reiterated that he does not fear for the euro but that the position of Germany aroused concerns.

"I'm not worried for the survival of the euro nor the European Union," he said in an interview with German newspaper Rheinischer Merkur. "I fear however that Germany, the federal government and local authorities are gradually losing sight of the common European good."

Barack Obama is the biggest emitter of CO2. That's the conclusion of the magazine Terra Economica, which calculated the pollution generated by travel of world leaders in 2010. The complete results in pictures.

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Apprentices most graduates have a more stable work situation and access to employment more quickly than others, according to a study of the Dares.

Nearly two thirds of young people out of a training contract in 2004 were employed at the end of their contract and were 86% after three years, according to a study released Monday by the Dares (Labour) .

According to the survey of Dares, covering the period 2004-2007, 61% of youth – 18 years on average, emerging from a period of learning have been employed at the end of their contract in 2004, 24% were in search of employment and 15% experienced a period of inactivity.

Half (52%) of those in employment was hired in the company where they had been apprentices (half CDI).Employers in the Catering and hairdressing apprentices hired less often than other services and construction.

Three years later, in 2007 they were 86% to be employed and by those looking for a job has been divided by two (10%), an improvement that "reflects their integration" but also "the improving the economic situation "between 2004-2007, before the 2008 crisis, the study found.

Only 15% of school leavers in 2004 (101,000 in a population of 671,000) went through an apprenticeship (a period of 22 months on average). Boys are the majority (70%), girls are slightly older and more skilled.

More than one in three claims to have used his family or social network to find the host company. 68% consider that their master learning has often helped in their work.The qualifications listed were mostly level CAP-BEP, but over 20% have graduated from Bac +2 or more. Apprentices most graduates have a more stable work situation and access to employment more quickly than others, notes the study.

Three years after entering the labor market, three-quarters of the apprentices have the impression that employees at their skill level. President Nicolas Sarkozy had called last week to double the number of trainees, through both apprenticeships and professional, to fight against unemployment.

The Irish Finance Minister Brian Lenihan confirmed on Sunday that Dublin would seek help from international lenders and would introduce an austerity program over four years to his colleagues.

"I will recommend the government to request the establishment of a program and to formally open negotiations," he said, before adding that there was no question of touching the base of the corporation tax than many other European capitals want to see lifted.

According to Brian Lenihan, such an increase would jeopardize the growth capacity of Ireland.

He also explained that the amount that Ireland would seek will not be "a sum of three numbers."Sources have told Reuters that the country might need 45 to 90 billion euros.

The meeting of the Irish government intervenes in a context of tension as more and more people want the crisis management changes hands business card layouts.

The critics are no longer only from the opposition and unity of the party of Prime Minister Brian Cowen, Fianna Fail, is cracking while the press relayed the concern of the growing Irish.

"You lied, you've dropped. For the salvation of Ireland, go now", claims the Sunday Independent in one.

THE GOVERNMENT OF VULNERABLE

Popular discontent has increased during the last week, public opinion criticizing the government's communication on the issue of the crisis.On several occasions the government has ensured that there was no negotiation, so that informal discussions were held.

"The government's behavior and his comments over the last ten days have greatly undermined the public trust," said Willie O'Dea, former defense minister and member of the ruling party in the columns of the Sunday Independent.

Some of his colleagues were even further.

"As a party, Fianna Fail must change and must call an election, even if it means he will lose power," Justice John McGuinness, parliamentary member of Fianna Fail."Brian Cowen must resign."

The government is finalizing a plan Sunday austerity designed to save $ 15 billion by 2014.

According to Irish media, such measures should include a new property tax, a reduction in the minimum wage, family allowances and allowances for jobseekers free business card creator.Certain tax exemptions enjoyed by high income could also be removed.

This four-year plan should be formally unveiled later in the week.

Since Thursday, officials from the IMF and the European Commission in Dublin are to lay the groundwork for the aid plan that Ireland should apply.

The Irish banking sector is in the eye of the cyclone and the questions and uncertainties surrounding it pushed the cost of borrowing.

The brink of collapse since the sectors of real estate and construction, the Irish banks owe their survival to intervention by the ECB that they are increasingly dependent while in parallel, deposits Irish investors are leaving the country's banks.

The EU must find a solution to economic imbalances among member states and facilitate the flow of labor if it is to solve "a serious growth problem," said Friday the chief of the International Monetary Fund.

Dominique Strauss-Kahn, according to the text of his speech to the European Banking Congress, said that European states would have to diversify their sources of growth, citing in particular the need for Germany to increase its domestic demand.

"As we are concerned about global imbalances, we should also worry about imbalances within the euro area," he said.

"The current account deficits in some European countries will have to be reduced, and at the same time in other countries such as Germany's growth will be driven more by internal," he added.

About the European labor market, Dominique Strauss-Kahn said that the necessary reforms could be accelerated by harmonizing laws in the euro area.

"The euro area can not achieve its true potential with a confusing patchwork segmented labor markets," he said.

"It is time to put on an equal footing with European workers, particularly as regards the taxation of labor, the social benefit systems and portability and legislation on employment protection. "

Where there are shortages of skilled workers, European countries should seek to immigrate to meet their needs, "he further said.

"The long-term growth could also benefit from a less restrictive approach on immigration," he said. "It makes sense to use immigration to deal with problems of classification as was done in North America."

U.S. stocks ended sharply higher Thursday, with the prospect of any future resolution of the debt crisis through Irish and successful return of General Motors stock.

The Dow Jones industrials gained 30 1.57% or 173.35 points to 11,181.23 points while the Standard & Poor's 500 broad, took 1.54% or 18.10 points at 1196 , 69 points.The Nasdaq Composite was awarded 1.55% or 38.39 points to 2514.40 points.

Investors welcomed the imminent international financial assistance to Ireland, the central bank governor has said he expects Ireland to grant a loan to Ireland several tens of billions of euros from the European Union and the International Monetary Fund.

GM signed a return on the stock market with much fanfare over a year after exiting the bankruptcy system, thus achieving the largest IPO in the history of the United States with raising $ 20.1 billion (14 8 billion euros).

GM gained 3.6% to 34.19 dollars in after sitting up 9%.Its IPO price was set at $ 33.

Reflecting the decline in uncertainty, the CBOE volatility index, also called the fear index, fell 13.8% to 18.75, falling below the 20.

Different sectors were generally buoyant. The S & P materials sector gained 1.9%, while the financial index took 1.4%.

The S & P industrials took 1.8%.

The advance of GM's other major disadvantage-listed automaker. Ford ended down 3.36% to 16.12 dollars.

Also in decline, Sears Holds fell 3.8% to 63.70 dollars.The supermarket group announced a widening of its quarterly loss and a decline in sales.

The renewed optimism was reinforced by macroeconomic indicators of the day better than expected. The weekly listings rose slightly less than expected, while the index of activity in the Philadelphia Federal Reserve stood at 22.5 against 1.0 in October. Economists polled by Reuters expecting to 5.0.

The Indian and Russian automakers could emulate the precedent set by China to expand their business, "says Meyrick Cox, sector specialist at the investment bank Moelis & Co.

Within ten years the Chinese auto industry has developed technologies, brands and capabilities in terms of distribution through alliances, partnerships or even acquisitions, like the acquisition of Volvo reached by Geely this year.

Meyrick Cox, speaking in London during the summit Reuters on automobiles, said that the Russian automotive industry was facing "the same challenges as China ten years ago."

Despite the existence of joint ventures – like AvtoVAZ, the manufacturer of the Lada, Renault – Russian manufacturers are under "tremendous pressure from the Kremlin" to modernize the automotive industry, "he added.

"They should do it by using consultants to help them develop (…) or via the purchase of assets, it remains to be seen, but I think it is quite possible to see make acquisitions if there are assets to buy. "

In the same vein, Meyrick Cox believes that the Indian conglomerate Hinduja Group as, to family capital, or Mahindra Group, whose division Mahindra & Mahindra is the leading manufacturer of utility vehicles in the country, are also likely to form agreements internationally to better benefit from the growth of the Indian market.

That said, all these groups Russian and Chinese are facing a big question: where to look for acquisitions?

"There remains much left to be redeemed. The automotive sector tends to reshuffle the cards once every ten years and we can say that the last movement of this kind goes back two years ago," said Meyrick Cox.

These comments echo those made in August by Li Shufu, chairman of Geely, told Reuters that it was very difficult to find a brand of quality Volvo.

The joking, Li Shufu added that Chinese manufacturers would be interested if ever Daimler Mercedes put the famous brand for sale.

The financial problems of Ireland are not limited to a budget crisis and banks are the heart of the country's difficulties, said Monday the vice-president of the European Central Bank Vitor Constancio.

Sources within the European Union, it was indicated that discussions were underway on a possible bailout of Ireland and Dublin was considering asking for help its banking sector. This option would be less risky politically than to ask assistance for the state.

Vitor Constancio, Governor of the Portuguese central bank until June, said he belonged to the Irish authorities to decide to seek assistance from the EU if necessary but that at present no formal request had been made .He said he would support a possible solicitation of Ireland.

"The problem also comes from banks, which are central to the difficulties," he told a news conference in Vienna.

On Sunday, the Irish authorities have indicated that they did not rule out seeking European assistance.

According to the Irish Independent newspaper, Finance Minister Brian Lenihan could ask his counterparts on Tuesday in the euro area it would be possible to help the banks to which he has already pledged 50 billion euros.

The Eurogroup will meet Tuesday in Brussels before an Ecofin council on Wednesday.

Tensions have eased slightly Monday on the credit derivatives market in anticipation of support in Dublin.The cost of insuring against a default of Ireland fell by 20 basis points, according to Markit following this market.

THE BANK OF SPAIN impatient

Vitor Constancio said that if requests for assistance, should appeal to the Dublin European financial stabilization mechanism, the European authorities have no authority to directly fund the banking sectors.

"The Irish banking sector problems, as we have seen, not just liquidity problems but in some cases problems of capital to absorb losses and, for that, the European Facility would be appropriate," said he said."But it can not lend directly to banks, ready states, and states can then use the money for that purpose, as was done in Greece."

Irish Opposition considers a bailout for its European and imminent.

"I think European aid is under way," said the spokesman for Fine Gael financial matters, Michael Noonan."I think the Irish government is fighting a rearguard action to save face, but there is a meeting tomorrow in Brussels of finance ministers of the euro area, and the day following a meeting of Ecofin."

"I think things will be achieved within 24 hours," added the representative of the opposition, arguing that a bailout would prevent Ireland to support the market for three to four years.

The uncertainty surrounding the Irish situation weighs on markets, for its part, deplored the governor of the Bank of Spain, Miguel Angel Fernandez Ordonez.

"We expect an appropriate response from the Irish authorities (…) To calm the markets and ease concerns unfounded, "he said on the sidelines of a conference on banking in Madrid.

"The market situation has been negative in part by the absence of a decision of Ireland. It's not for me to make a decision about Ireland is Ireland to make the decision right time. "