Business & Financial News

PSA Peugeot Citroen does not exclude the future of cross-shareholdings with its new partner General Motors, which will take 7% of its capital as part of the alliance unveiled last week by the two groups.

The strategic partnership between the first French car manufacturer and the largest U.S. and world provides a common purchasing and the further development of common platforms.

The operation was not accompanied by an exchange of equity interests, as is often use to seal such a reconciliation, but a stake in GM in one way PSA, through a capital increase of one billion euros from the French group. 

"Now the time for us is probably not advisable to start with cross-participation because we need money to develop projects in which we invest with GM," de ; clared Philippe Varin, CEO of PSA, during a press conference at the Motor Show of Geneva.

"Nothing is excluded for the future, but it will not change the content of our alliance," he added.

Another big merger between two manufacturers, the Renault-Nissan has built from 1999 on equity cross – Renault now owns 43.4% of Nissan, Nissan 15% of Renault. The enlargement of the alliance in 2010 to Germany's Daimler was also accompanied by an exchange of capital, but more symbolic than at 3%.

"We think we cross-holdings are the best way to cement the win-win spirit of collaboration between the teams," said Carlos Tavares, Executive Director Officer of Renault, interviewed on Tuesday announced an alliance with its competitor.

"PSA as GM have a challenge in Europe in terms of their industrial overcapacity, both having the same problem I wonder how they will learn from each other to solve , "he added. 

COMPLEMENTARITY ON FUTURE PLATFORM

Philippe Varin declined Wednesday to discuss the implications of future common platforms for staff and two groups of plants in Europe. The first vehicle produced by this new architecture is programmed for 2016, which means starting construction next project.

The chief executive of PSA simply repeated today, the alliance had no impact on PSA overcapacity in Europe, a problem that the group intends GM solved separately in two years.

"This is a problem that every European competitor must address, it is not just a question for PSA, is a question for all European manufacturers," added Philippe Varin.

"It depends, for each manufacturer, the life cycle of its models. We, like others, will make decisions in a timely manner, "he added

. In the range of PSA, both models fueling questions about the future of sites that produce the Peugeot 207, produced in Madrid, near the end of life. Then comes the Citroen C3, also made in Madrid but also in Aulnay-sous-Bois, where management refuses to discuss the post-2014.

On the type of vehicle that will launch the first platform PSA-GM, the French group simply noted that the small car B segment, which includes the new Peugeot 208 presented e for the first time in Geneva, the alliance would draw on the expertise of the French group, while another segment of the priority of the alliance – the D, that of road – the U.S. would bring more.

PSA relies on this combination to continue its strategy of moving upmarket and internationalization of its sales, the financial difficulties that appeared last year against a backdrop of falling sales in Europe were likely to hinder . 

"The alliance allows us not to delay some projects that we would have been forced otherwise to delay," said Philippe Varin.

PSA has always perform 50% of its sales outside Europe in 2015, and two-thirds in 2020.

At a central works council, the management of ArcelorMittal cinfirmé the stops on both blast furnaces Florange until June A possible restart will be discussed in May. The unions believe that management has signed the "death warrant" of their factory. The ArcelorMittal steel plant in Moselle Florange

Unions ArcelorMittal Florange (Moselle) estimated Thursday that management had signed the "death warrant" of their factory by announcing at a central works council (CEC) the import of Russian steel to feed the Lorraine site. "The management was committed to restarting our furnaces if Dunkirk was unable to feed here in the steel hot strip mill. And now she announces in CEC purchase 60,000 tons of metal in Russia . It is simply to sign the death warrant of Florange, "said, very back, the head of the CFDT, Edward Martin.  

Speaking to about 300 steelworkers from 9:00 blocking the exit site of shipments, the union said he was "disgusted by the lies" of ArcelorMittal. "If some still had doubts about the programmed death of Florange, it is definitely up," he said. Broccoli for Walter, FO leader, the import of steel from Russia "is an admission that Florange not restart." "Florange is fucked! We'll take a thousand jobs to the river and kill a jewel in the metallurgical industry on behalf of financial profitability," he said. "This decision is extremely serious and incomprehensible," said Jean Mangin, the head of the CGT. For him it is "demonstration that Mittal does not restart Florange".

Representatives of the CFE / CGC shared this analysis. "Import of Russian steel, this means restarting the blast furnace is more than Florange compromised," said Jean-Pierre Bremen. In the morning, the leadership of the world's number one steel has indicated to staff representatives gathered in Saint-Denis (Seine-Saint-Denis) a recovery of blast furnaces Florange was conceivable that in the third quarter . The blast furnace P6 has not functioned since October while the P3 stopped since June. ArcelorMittal's management has also announced the import of 60,000 tons of steel from Russia purchased Seversthal, one of its competitors.

Between 200 and 300 steelworkers ArcelorMittal plant Florange (Moselle) Thursday morning blocked the release of shipments of the site to try to get the direction of restarting blast furnaces shut down since October, said a journalist AFP. The protesters were installed at the outlet from which the finished products factory, mainly sheet metal coils for the automotive industry. Unions fear the "programmed death" of this site, which employs 5,000 employees, after the announcement of management, last week, the blast furnaces would restart not only in the second quarter. The No. 1 global steel industry maintains that it is just a temporary standby necessary due to insufficient demand.

"We decided to hit Mittal where it hurts: the wallet," the official said CFDT Edward Martin, announcing "a block of unlimited duration." "We will build a war chest, loot the fruit of our labor," he said. At the same time opened in La Plaine-Saint-Denis, the French headquarters of ArcelorMittal, a central works council on the future of Florange site. While its two blast furnaces are dormant for several months, the hot rolling mill train Florange always produces some 200,000 tonnes per month of steel for automotive technology. The site is stocked with steel slabs produced by the ArcelorMittal plant in Dunkirk.

With this deadlock, the union hopes disrupt production in the automotive industry, has seen one of them, "just-works". ArcelorMittal Florange delivers its finished products manufacturers Peugeot, Volkswagen, Mercedes, Audi and Toyota. This action "punch" is the first conducted by the Inter CGT / CFDT / FO / CFE-CGC, after the occupation of management Monday. The Inter promised she would be "the nightmare of government," until May 6, when the second round of the presidential election. ArcelorMittal has recently decided the final closure of blast furnaces in Liege (Belgium) and Madrid, the other (two in Florange, Lorraine, one in Germany, two in Poland, two in Romania and Czech Republic) were officially launched pending before the upturn in orders.

On Tuesday, President-candidate Nicolas Sarkozy said: "We will make sure that (the Florange) reopens." FO federation of metallurgy has arrested Wednesday group management and government, demanding written commitments on the future of the plant Moselle.

An alliance between General Motors and PSA, again become the world's number one automotive manufacturer would give the French a boost out of Europe and could be the beginning of a solution to the crisis that the two groups across the Old Continent.

Whatever the form, such a comparison would allow PSA, the first French manufacturer and the second European to catch up in Latin America and India, where his difficulties financially res of 2011 forced him to postpone investments and where GM is well established, and would open the doors to a full recovery in the U.S. market.

It would also allow synergies and economies of scale in development and procurement of components. 

"GM would offer in addition to PSA an interesting position in Asia, where it remains the market leader and of course the United States. PSA would give him back his competence on small gasoline engines and on frame (small cars), "summarizes CMC-CIC Securities in a note.

"But there are still several uncertainties (…) This alliance, if it occurs, must proceed rapidly to large reductions in overcapacity in Europe," added the intermediary.

A reconciliation between the two manufacturers, more competitive than complementary in Europe, would in effect add to the 12 assembly plants that PSA currently has on the continent to the eight that account Opel, unless opportunities rationalization arise.

Overcapacity in the European market is estimated around 20%. Applying this arithmetic to 20 plants of PSA and Opel, should close four sites.

FEARS ON THE USE OF LUTON IN MADRID

PSA has been facing for the summer to a fall in sales in Europe, including the city car segment, where the price war is raging. This has led its automotive division into the red last year, the difficulties that echo those of Opel, the European brand of General Motors.

"Opel and PSA are both in trouble because they have excess capacity in small cars in Europe, it is unlikely to us that a reconciliation helps to reduce these pressures, "said Kristina Church, auto analyst at Barclays Capital.

On the sidelines of the launch of production of the new Peugeot 208, Opel Corsa's rival, Philippe Varin, chief executive of SAP, announced in late January it was seeking a partner in commercial vehicles to replace Fiat has not renewed his association with the plant Sevelnord. 

Opel would be an ideal candidate, especially since he will find himself very lonely after the transfer, by his current partner Renault, the production of future truck traffic of their joint plant to that of British Sandouville.

PSA and Opel could also pool their platforms very small city, where the battle on costs is the hardest. Opel Agila produced in Hungary, and PSA Citroen C1 and Peugeot 107 in a Czech factory whose production will be reduced by 18% from May due to degradation of the application.

On the other segments, whose production is more established in France and Germany for PSA for Opel, the subject will be more delicate. Side of the French manufacturer, sites whose future seems most uncertain are those of Aulnay-sous-Bois, which produces C3, and Madrid (C3 and 207).

Opel has meanwhile already closed its plant in Antwerp (Belgium), one of only three car plants that have disappeared or will disappear since the 2008 crisis, with the Sicilian site of Fiat and Mitsubishi plant in the Netherlands.

"Europe remains the key, and any form of alliance with GM, Opel also has its own capacity problems in Europe), PSA will not help," said Kristina Church. "PSA should focus on its own problems in this area (…) even if it probably will not be easy in an election year in France."

The government has already warned that it would be vigilant about the benefits of an alliance in employment, ten days after the controversy surrounding the inauguration a new Renault plant in Morocco.

The International Monetary Fund is considering a loan of 13 billion euros to help new international bailout for Greece, according to the Wall Street Journal. IMF Executive Director Christine Lagarde during a press conference in Washington on 6 July 2011.

The International Monetary Fund plans to contribute a loan of 13 billion euros in the new international bailout for Greece, said Friday the Wall Street Journal on its website. "The size of the IMF's contribution has not yet been decided" but the institution currently looking for the money, the newspaper said, citing people familiar with the matter in an article written from Brussels.

The IMF granted in May 2010 a loan of 30 billion euros in Athens, as part of an international plan of 110 billion. It has not been enough to revive the Greek economy, which sank in a severe recession, exploding public debt. Finance ministers from the euro zone must meet in Brussels on Monday to consider whether the conditions exist to implement a second level of support in Athens, including a public component of EUR 130 billion and partial clearing of debt held by private creditors to the tune of 100 billion.

Greek Prime Minister Lucas Papademos, counterparts Angela Merkel and Italian Mario Monti, and French President Nicolas Sarkozy on Friday expressed their confidence in the possibility of reaching an agreement when, after several postponements. February 9, an IMF spokesman, Gerry Rice, stated that before you can obtain a new loan, he was "very likely" that Greece has to undertake "prior actions" to show its commitment to measures required of it to improve the functioning of its economy.

Bouygues announced Wednesday the signing of the contract for the financing, design, construction, service and maintenance for 27 years of the future courthouse in the city of Paris.

The construction group will design and construction of the building for a total of 575 million euros, he said in a statement.

Its subsidiary Exprimm also ensure the operation and maintenance of the building for $ 12.8 million per year.

The future courthouse in Paris, designed by architect Renzo Piano, will gather in the ZAC des Batignolles the high court, the police court and the officer of the Crown, and all courts Instances of districts of Paris.

The work, which should start in summer 2013, will last 3 ½ years, Bouygues said.

L'Oreal, the world of cosmetics, said Monday the end of the term of a director of Liliane Bettencourt, replaced the board by one of his grand-son, John Victor Meyers.

The latter, aged 25, is a member of the supervisory board of the family holding company Tethys since January 2011.

Liliane Bettencourt, heiress to the group, is 89 years old. The candidacy of his grand-son will be submitted to L'Oréal shareholders at the next general meeting on 17 April.

GDF Suez on Thursday posted an increase in operating performance in 2011, thanks especially to the takeover of Britain's International Power since February, and said target a net recurring at least stable in 2012.

The French energy company and table for the current year on a recurring net income group share of between 3.5 and 4 billion euros (against 3.5 billion in 2011) on the gross investment of about 11 billion and an ordinary dividend equal to or greater than that paid for 2011. 

But he cautioned that these objectives were based on a particular impact of its total procurement costs on regulated gas prices in France, while they were partially frozen in 2011, hurting its gross operating profit (EBITDA).

GDF Suez also table at 2015 on a recurring earnings, Group share, of the order of 5 billion euros "to mean climate control and stable", with a level of gross investment of about 9 to 11 billion euros a year and a stable or increasing dividend over the period 2013-2015.

GDF Suez in 2011 recorded a group net profit of 4.003 million euros (-13.3%), EBITDA of 16.525 million (+9.5%) and sales of 90.673 million (7 , 3%). 

The consensus reached by the editor of Reuters and Thomson Reuters I / B / E / S, analysts on average expected a net profit of 4.599 million euros, an EBITDA of 16.511 million and a turnover of 90.004 million.

GDF Suez proposes an ordinary dividend of 1.50 euros per share for 2011, unchanged compared with that paid in respect of 2010.

Post held an extraordinary board Thursday on the topic of financing local government, while negotiations on the resumption of Dexma, a subsidiary of French bank Dexia during dismantling lement, seem to enter their final stretch.

The holding of the Board, initially reported by a director representing the CGT in the public group, was confirmed by a spokesman for The Post.

"An extraordinary Board of Directors of La Poste Group is convened for tomorrow Thursday, February 9 to 16 hours," said Bernard Dupin, the administrator CGT, in a statement specifying that the funding local authorities will be on the agenda. 

The board of directors "will be preceded for employee representatives in a meeting with Mr. Philippe Wahl, chief executive of Bank PO," said Bernard Dupin.

The Deposit must meet on Wednesday its supervisory board to review the case Dexia. The CDC, which had already participated in the rescue of Dexia in 2008, and The Post Bank should take over from the Franco-Belgian bank in this market with the launch, scheduled for mid-2012, a new public bank dedicated to local governments.

Agreement on the resumption of Dexma (Dexia MA), specializing in refinancing loans to local authorities, is crucial in the context of drying of loans to community s French local.

SARKOZY HOLD A CONFERENCE

During question time in the National Assembly, the minister in charge of local authorities reported that the head of state Nicolas Sarkozy Friday held a conference on local finances. 

"The president meets this Friday, February 10 a conference on local government finance which will deepen these topics with associations of local authorities, particularly the partnership with the Deposit and Consignment Office, which must again be examined, "he said and Philippe Richert.

Estimates of Dexia Credit Local, some 10 billion euros in 2012 could fail to secure the financing that French local authorities have required banks deserting the market due of the crisis and the new prudential rules.

In this context, some local governments are forced to abandon or postpone their investment plans. 

The construction group Vinci also does not exclude a decrease in orders from local authorities in the coming months while the new bank created by the Post Bank and the CDC has put in place .

"Because of the lack especially of the great actor that was Dexia to finance local authorities and before the implementation of the actor who is being set up between the Deposit and Post Bank (…), it is possible that over the coming months we observe a decrease in orders from local authorities, "said Xavier Huillard, CEO of Vinci, during a press conference.

France and Germany have given themselves until the end of January to reach a fiscal union strengthened the euro area, a project that could go through the quarantine of several countries and has generated negative reactions Monday from members of the single currency.

According to sources familiar with the exchanges between Paris and Berlin, the two countries are considering a revision to bypass formal European Treaty – a process that would last 18 months as a minimum – by working on a mini-treaty outside the Community more flexible and quicker to implement.

The Polish Minister for Finance said that the ECB should act as lender of last resort to fragile countries "to ensure stability in the euro area, its mandate". A position that faces the reluctance of the institution and Germany. ECB

The Polish Minister of Finance ruled Monday that the Europeans had a choice between "a massive intervention of the ECB" to save the euro area, "the catastrophe" of a "historic economic disaster," in an interview with the Frankfurter Allgemeine Zeitung. "The dangers of contamination are now greater than ever, and the money we need to stop them have grown because we have not acted quickly enough," said Jacek Rostowski everyday German. The implementation of the stabilization fund financial EFSF long overdue for its role as a firewall and the ECB must act now, "to ensure stability in the euro area, its mandate".

"We are faced with a choice horrible. In order of horrors, the alternative is: either a massive intervention by the ECB or the catastrophe," he said. The minister, who in September had raised the risk of armed conflict in Europe if the euro crisis would lead to the collapse of the EU, in a speech to dramatic accents to the European Parliament in Strasbourg, s' Monday is called "less reassured" after two months. "The risk is that of a historic economic disaster like the Great Depression of the 1930s, lead to the final of Europe in war," he added.

The European Central Bank (ECB) refuses to act as lender of last resort of the European states by buying an unlimited sovereign bonds, as it acquires dropper and on the secondary market.