Business & Financial News

The title London Stock Exchange (LSE) was sharply higher in early trade Thursday on the London Stock Exchange after the operator of the latter was canceled at the last minute his proposed merger of $ 3.5 billion with TMX Group.

Around 7:35 GMT, the LSE share jumped from 5.02% to 10.04 pounds, investors felt that the group without TMX, is likely to become prey in the current phase of industry consolidation of stock exchange operators.

The LSE and TMX, the operator of the Toronto Stock Exchange, announced Wednesday the cancellation of their planned merger, which was initiated in February.

In short news broadcast one day before the general meetings were to rule on their merger, both groups said they had realized that the shareholders of TMX would not give them the required majority of two thirds.

Analysts point out that Nasdaq OMX, which has already tried twice to get your hands on the LSE, is the candidate most likely to buy the operator of the London Stock Exchange.

After four consecutive months of decline, the curve of unemployment in France is rising again in May, a reversal in which the government took note and promised to "redouble efforts".

The number of job applicants in category A, those who exercised no activity during the month, increased by 17,700 (+0.7%) last month in France to $ 2,686,800, show Statistics released Tuesday by the Ministry of Labour and job center.

This is the first increase for this category since the start of the year.In one year, the number of unemployed in category rose by 0.3%.

By adding the persons engaged in small (B and C), the increase in the number of unemployed reached 1.0%, 39,400 more people in one month, reaching 4,078,500. On an annual basis, this figure represents an increase of 3.8%.

If we include the overseas departments, the number of job seekers in categories A, B and C reached 4,341,400.A figure up 0.9% over the month and 4.1% year on year.

Xavier Bertrand, Minister of Labour, Employment and Health, noted the increase in a statement, stressing that it "calls into question, however, the downward trend registered since the beginning of the year ".

Between January 1 and May 31, he notes, the number of unemployed fell by Class A 35,700.

The government has set a goal of reducing the unemployment rate in France under the symbolic level of 9.0% by the end of the year, against 9.3% in late 2010.INSEE table on its side on a rate of 9.0% in the fourth quarter.

"Redouble their efforts"

Dominique Barbet, economist at BNP Paribas, stresses the decline of 8.5% of employment repeatedly declared that he says can be explained by the lack of public holidays on weekdays in May and approach the entrance effect of pension reform (July 1), "which could have reduced the need for replacement workers."

The detailed figures for May showed a persistent weakness of the French labor market, namely the difficulty to reduce youth unemployment and that of seniors.

In less than 25 years, the number of jobseekers in Class A has increased by 1.3% last month, but remains down 6.6% year on year.For over 50 years, the increase was 0.9% over one month and reached 12.3% year on year.

Another trend is confirmed: the importance of long-term unemployment. The number of persons unemployed for a year or more increased 0.8% in May for categories A, B and C and rose by 10.5% compared to May 2010.

"The results of May to encourage greater efforts to reduce unemployment," said Xavier Bertrand.

Public policy based in particular on the promotion of learning, improving the economic support of licensees and a better balance between supply and demand by focusing on business "in tension", that is say, lack of labor, like construction or catering.

Christine Lagarde looks set to lead the International Monetary Fund (IMF) this week, despite an unprecedented protest by emerging from the traditional domination of Europe on this post.

An informal poll conducted by Reuters with the voting countries suggests that the French economy minister should get a majority hands down against the candidate of Mexico Agustin Carstens.

The governor of the Mexican central bank raised Friday, however, supported by Canada and Australia, but it should not come to tear this position the hands of the Europeans, who hold between 40 and 47% of voting shares.

The 24 permanent members of the Board of the IMF should conduct an informal survey Monday to determine if one of the two candidates wins a clear majority.

This leadership race of the IMF was one of the most contested in the history of the institution, developing countries have strongly called for a selection process based on the candidate's qualifications and not on nationality, against the opinion of the European group.

The choice of the United States, which have not officially announced which candidate they supported, will be critical over the next two days, the world's largest economy accounting for 17% of the votes in the IMF.

However, we expect the Obama administration that it supports the candidacy of the French Minister for 55 years, thus preserving the tradition that gives the job to the Europeans while those in number two of the IMF and World Bank President is vested with Americans.

OUTSIDER

Japan and China, second and third respectively in terms of influence to vote, have also avoided pronouncing in favor of either candidate.But, as the United States, several IMF officials said the two countries would vote for Christine Lagarde.

Candidate self-proclaimed outsider, Agustin Carstens has highlighted his experience as a former head of the IMF to support his campaign, and his knowledge of the treatment of economic crises in developing countries.

With the rallying of Peru and Chile on Friday, he now has the support of all Latin American countries except Brazil, remained silent.

Supporters of Christine Lagarde put forward political and economic credibility across Europe, key areas of the IMF's efforts to avoid another global economic recession.

The agenda of the minister remains silent on Friday after Wednesday, June 29, the eve of the deadline for appointing the new CEO.

The position became vacant following the arrest and indictment of its former director, Dominique Strauss-Kahn, in a case of sexual assault of a maid in a hotel of New York.

Before his resignation, Dominique Strauss-Kahn oversaw a reform of the IMF votes now giving more voice to the emerging but still less than they demanded. In accordance with the requests of these countries, both candidates have pledged to give more weight to emerging economies in the voting system.

After a very dynamic first quarter, the French economy is expected to mark time before rebounding and reaching 2.1% over the year, exceeding the government's objective, according to INSEE. French managers come to the business district of La Défense

French growth should undergo a brake in the second quarter before rebounding and reaching 2.1% over the year, slightly more than the government's objective, according to new estimates published by INSEE on Thursday. After a very dynamic first quarter in which gross domestic product (GDP) grew by 1%, the French economy would have stalled, says the National Institute of Statistics in its first forecast for the whole of the 2011.

As in other advanced economies, France has experienced the full number of shocks, such as rising commodity prices, the consequences of the earthquake in Japan, or more restrictive economic policies. However, these shocks will be "temporary" said Sandrine Duchêne, head of the economic situation of INSEE. And factors should slow fade in the second half.

After an expected growth of only 0.2% in the second quarter, activity should then bounce back with an expected GDP growth of 0.5% during the last two quarters of the year. Over the whole of 2011, growth would reach 2.1%, slightly higher than the official government forecast (2%).

This performance is consistent with the euro area average. As usual, Germany will remain the locomotive of the region, INSEE provides a 3.7% growth for the country in 2011.Conversely, Spain (+0.7%) and Italy (+0.8%) will be left behind.

Unemployment folds

Over the period, the labor market should continue to improve in France, total employment grew more strongly than in 2010. Unemployment, which stood at 9.2% of the workforce in the first quarter, fell back slightly by the end of the year to 9%.

Household consumption, even in the first quarter supported by a "drag effect" of scrapping, related to the timely delivery of vehicles ordered in late 2010, should fall back sharply in the second quarter, "backlash". She then rebound in the second half, however, at a rate slightly lower than before the crisis, according to Insee.

Traditional engine of French growth, consumption would increase by 1.2% over the year, after rising 1.3% in 2010.Business investment will remain dynamic, while the trade would have a broadly neutral impact on growth.

Household income would be supported by rising employment and wages. The decision to pay a premium to employees in companies distributing dividends is expected to contribute to this increase, according to INSEE.

Inflation of 2.2% trim on the purchasing power

But this acceleration will be partially eroded by the pursuit of expected inflation. To INSEE, the rise in food prices, already substantially since March, is expected to continue in effect until December. On average, inflation should be 2.2% throughout this year, a level higher than the 1.8% forecast by the government.

Thus, household disposable income, which should accelerate in 2011 (+3.3% after +2.0%), would contreblancé by higher inflation.Overall, the purchasing power of households rise by only slightly faster in 2011 than in 2010 (1% after +0.8%).

A greater than expected weakness in the U.S. economy or boost pressure on sovereign debt, however, could darken the picture, warns INSEE. Conversely, if the French households decide to save less this year, would benefit just the consumer, so to growth.

G20 countries have adopted in Paris on Thursday a plan of action to fight against the high volatility of prices of agricultural products, announced the French minister of Agriculture Bruno Le Maire.

Meeting in Paris, their agriculture ministers agreed to "concrete, specific and ambitious" on topics such as the increase in world agricultural production, market transparency, or physical management of food crises, he said at a press conference.

They also called for stronger regulation of derivatives and futures markets in agricultural products, which is under review by the finance ministers of the G20, using tools like "setting position limits ex ante, "he said Bruno Le Maire

A faulty gearbox which nailed to the ground during the A400M Paris Air Show is probably rooted in a manufacturing defect, said Tuesday one of the program.

Airbus and engine manufacturers are studying this box, which broke a few days before the beginning of the troop transport plane in the sky at Le Bourget, forcing the manufacturer to cancel its demonstration flights.

"For now, it seems to be a manufacturing problem related to components rather than a design problem," said the official, who wished to remain anonymous.

The box is manufactured by the Italian Avio, the consortium led by Europrop engine manufacturers Rolls-Royce and Safran.It was sent at Rolls-Royce in Britain for analysis.

A spokesman for Europrop was too early to comment on the ongoing investigation.

A series of problems on turboprops have resulted not delay and cost overruns of the most important European military program.

Manufacturers will be relieved if it is confirmed that there is no design flaw in the gearbox.

However, according to several sources involved in the A400M program, it is not the first time that problems have been attributed to this box.

During the development program, we had detected cracks on one of the boxes but the problem had been resolved, the sources explained.

The A400M is to equip the French armed forces, British, German, Belgian, Luxembourg, Spain and Turkey.

The first copy must be delivered in 2013.

Wall Street opened lower Monday as investors exercise caution after turning on the conditions on the disbursement of aid to Greece and the warning by Moody's of a possible lowering of the sovereign rating of Italy.

A few minutes after the start of trading, the Dow Jones yielded 0.17% (-20.43 points) to 11,983.93 points, the Standard & Poor's 500 index 0.17% to 1269.29 points and the Nasdaq Composite 0 , 15% to 2612.45 points.

The prevailing uncertainty about the evolution of the issue of Greek debt penalizes financial stocks. JPMorgan Chase flexed to 1.47% and Bank of America gave up 1.3%.

Suntech Power fell by his side of 4.19%.The world's largest manufacturer of solar cells said Monday it plans to produce more semiconductor wafers in-house for up to 50% of its total production capacity of cells.

Nicolas Sarkozy and Angela Merkel on Friday called for a quick solution to the crisis of the Greek debt. The participation of private creditors will be made only on a voluntary basis, said the two leaders after a meeting in Berlin. French President Nicolas Sarkozy and German Chancellor Angela Merkel wants a "quick fix" to the debt crisis of the Greek, the two leaders said after talks in Berlin Friday, June 17, 2011.

German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed Friday to seek a quick solution to help Greece to meet its debt with a voluntary participation of private creditors. "We need a solution quickly," Merkel said, while refusing to give a precise date, like Mr. Sarkozy at a joint press conference in Berlin.

"We want the private sector is involved on a voluntary basis (the bailout of Greece). I want to emphasize this, there is no legal basis for mandatory participation," she said. France, like the European Central Bank (ECB) insisted for weeks on the voluntary participation of private creditors – banks, insurers and investment funds – not to frighten the markets. Germany was much less clear on this point.

Carrefour said on Thursday the appointment of Christmas Prioux to head its operations in France and Thomas Hübner Martin to head its operations in Europe, indicating that the results of the first semester in France were below our expectations.

The distributor said in a statement that its chief executive Lars Olofsson "continue to oversee operations of Carrefour in France."

Christmas Prioux (51 years), who has spent his entire career at Carrefour, replaces with immediate effect, James McCann, who was fired by the group in May for performances deemed insufficient.

After leading hypermarkets in France, Christmas Prioux was notably responsible for Carrefour in Colombia, Spain and the region of Southeast Asia.He had just been appointed executive director in May for Europe.

Carrefour had justified the eviction of the beginning of May by James McCann disappointing performance in this key country which accounts for more than 40% of its turnover but when it loses market share.

Thomas Hübner Martin, 53, Swiss citizen, meanwhile replaces Vicente Prius, party in the Canadian Loblaw. He made a career in the food industry and distribution, including at Metro Cash & Carry International.

MEDEF, UPA CGPME and explain that the payment of dividends does not depend only on the level of results. Dirigenate the MEDEF, Laurence Parisot (here in Paris at a conference in March 2011)

Three employers' organizations, the MEDEF, CGPME and UPA (craftsmen), have reaffirmed their opposition Monday, June 13 at the introduction of a bonus paid to employees of companies with rising dividends, which must be examined Tuesday night or Wednesday by deputies. "The three inter-employer organizations would recall that the project ignores the economic reality of companies and the contribution of social dialogue," they write in a joint statement.

According to them, "the payment of dividends meets many criteria, and does not depend only on the level of outcome or performance of the company, contrary to the participation or profit.""The payment of a premium to improve the purchasing power of the French can only be considered in the framework of a voluntary and universal," continues the UPA CGPME and MEDEF.

They also complained that it "unnecessarily introduces a new requirement to negotiate when the right balance between employees and employers can be found during the annual negotiation required". Launched in mid-April some confusion as the "premium to 1,000 euros," it will be mandatory for companies with more than 50 employees who have paid their shareholders dividends up from the average of the last two years. It should cover four million employees. The trade unions are also opposed.