Business & Financial News

List of stocks followed Friday the Paris Bourse, where the CAC 40 index lost 0.1% to 3008.86 points to 12.30, after posting a new low for the year to 2,970.10 points early trading as risk aversion is increasing in Europe, Fitch has downgraded Greece Moody's and that of several Spanish banks.

* Many CYCLIC and / or values ​​at high risk of suffering INTERNATIONAL also fears about the U.S. and Chinese growth after the publication of several unfavorable statistics.

Pernod Ricard was down 2.74%, largest drop in the CAC 40, PPR of 2.18%, 1.82% LEGRAND, and CAP GEMINI of 1.63%. The Stoxx European car sector (-1.93%) shows the largest sector decline in Europe.

* The oil services also receding in the wake of oil prices. TECHNIP loose 1.4%, 0.6% MAUREL AND PROM and CGG VERITAS 2.35%.

TF1 * still leaves 4.75%, after pressing an important technical support around 6.60 euros, according to technical analysts. Since the announcement May 15 of its withdrawal from the MSCI at the end of the month, the value lost almost 13%.

* A reverse trend, financial stocks have regained some color after the first exchange in the red, traders citing a report in the Spanish newspaper Cinco Dias that Spanish banks want a ban on sales to ; discovered. In addition, the trade commissioner, Karel De Gucht, said the European Commission and European Central Bank are working on a contingency plan in case Greece should leave the eurozone .

SOCIETE GENERALE advance of 4.75%, largest increase in the CAC 40 and SBF 120, BNP Paribas took 4.08% and Crédit Agricole, who scored early Matiné e a new record low at 2.934 euros, were up 2.73%. The Stoxx index of European banking sector sign up only in Europe (+0.4%).

* ARCELORMITTAL grants to 1.55%. The steelmaker Nucor has announced the acquisition of Skyline Steel LLC, a steel foundation, with ArcelorMittal for about $ 605 million (478 million).

* EDF, which had lost over 3% yesterday, back to 1.78%. Edison (-0.06%), which the French group is preparing to take control, has expressed interest in gas reserves off the Israeli coast.

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General Motors announced Wednesday consider selling its manufacturing plant in Strasbourg gearboxes and be looking for potential investors.

The U.S. automaker, which has taken an investment bank, said in a statement it had committed a "strategic review" concerning both the production as engineering and development of this plant.

He was willing to explore the internal and external solutions to find "viable alternatives and potential solutions to secure the future of the site".

GM intends to favor buyers who will continue the work site with the current force is about 1,000 people.

Last year, the plant produced 280,000 six-speed automatics, mainly for customers outside of Europe. 

GM announced in February an alliance with French carmaker PSA Peugeot Citroen.

Labor costs in Germany rose at the slowest rate of any European Union over the past decade, said Tuesday the Federal Office of Statistics , emphasizing the positive effect of wage moderation.

The cost of one hour of work in the private sector rose 19.4% between 2001 and 2011 in Germany, which is half that in France, where the cost jumped 39.2 % over the same period, well above the European average of 36.1%.

The moderate wage growth, which started from a high base, helped Germany to remain among the top exporting economies in the world and to remain competitive . 

"The moderate wage growth in recent years has made possible a positive development (…). Many new jobs were created and existing jobs are been protected, supporting consumption, "said the director of the Chamber of Commerce, Martin Wansleben.

In 2011, German employers paid an average of 30.10 euros for each full hour of work in the private sector, well above the average for the EU to 22.80 euros.

Belgium shows labor costs the highest in the region at 39.30 euros per hour while Bulgaria has the lowest, to 3.50 euros.

This derivative launched by a subsidiary of Deutsche Börse, the heart of a lively political debate in France before the presidential election, opened in fall lst. The trading floor in Frankfurt

The new futures contract on the French debt, in the heart of a lively political debate in France before the presidential election, yielded 0.17% on Monday but was not exchanged at the edge of its first trading day on the market German Eurex. The futures contract maturing in June on the obligations of France stood at 125.80 euros a little before 9:00 (0700 GMT) for a first course to 126.02 euros. Only seven contracts were traded, making it insignificant at this stage of fluctuations. Meanwhile, the 10-year rate of France in the bond market was a slight increase of 2.960% against 2.943% at Friday's close.  

The futures contract was launched by Eurex derivatives specialist and subsidiary of the German stock exchange Deutsche Börse. But several political parties including the Left Front, Europe Ecology-Greens and the National Front, see it as a tool to encourage speculation against the French debt on the eve of presidential elections. Francois Hollande wanted last week that the German authorities "cancel" the introduction of the futures contract, a proposal derided the president candidate Nicolas Sarkozy. For his part, Jean-Pierre Jouyet, President of the Financial Markets Authority (AMF), held that the launch of this product was not a good signal, just days before the first round of French presidential election.

Audi, the premium brand of Volkswagen sold 143,500 vehicles in March, a record, or 14.1% from a year earlier, thanks to solid demand from the States U.S. and China.

Over the quarter, the manufacturer sold 346,100 vehicles, representing an increase of 10.8%.

"We started the year 2012 successfully and we anticipate continued growth in the coming months," said in a statement Peter Schwarzenbauer, responsible for sales of Audi.

The Supreme Court could reverse the conviction of Total over 12 years near the wreck of the tanker Erika off the Brittany coast in 1999, reported Friday Liberation and Ouest-France.

The highest French court, which must rule on May 24, could simply cancel the entire procedure conducted since the disaster in December 1999, according to two dailies.

Senior judges make this recommendation in their conclusions with the main argument that the wreck, which caused the pollution of 400 km of coastline, has not occurred in French waters, writes Libération ration and Ouest-France.

The Erika disaster led to two trials in 2007 at trial and on appeal in 2009. The judgment established each time the liability of defendants, which the charterer Total.

The oil company could not be contacted immediately to make a comment.

Wall Street opened sharply lower Wednesday, still within the scope of the minutes of the last meeting of the Monetary Policy Committee of the U.S. Federal Reserve seems to suggest that that new measures to support the economy are no longer topical.

In early trade, the Dow Jones yielded 0.91% (or 120.49 points) to 13,079.06 points. The Standard & Poor's, wider, lost 0.86% (12.10 points) to 1,401.28 points while the Nasdaq composite fell back to 0.89% (27.82 points) to 3085, 75.

This decline, following a decrease of about 0.5% yesterday, comes despite better than expected figures for employment in the private sector. According to ADP monthly survey, the private sector has indeed created 209,000 jobs in March, against 200,000 expected.

But what continues to attract the attention of investors is that only two members of the Monetary Policy Committee of the Fed felt that other measures could be necessary if the Economic activity weakened or if inflation remained at a low level for an extended period.

Support measures implemented by the U.S. central bank was the main catalyst for a jump of 30% recorded by the S & P 500 since October, although improving conditions in the United States, as reflected by the indicators, also played. 

"The minutes of the Fed questioned the certainties of those who thought they could relax without end," said Sal Arnuk, co-head of investments at Themis Trading.

For its part, the European Central Bank has unsurprisingly left rates unchanged at a record low, Mario Draghi, chairman of the ECB, saying it was pre premature to start talking about the withdrawal of the measures to end the crisis.

The title General Electric, Heavyweight Dow Jones down 1.3% to 19.70 dollars after Moody's downgraded the industrial conglomerate from Aa2 to Aa3. 

The action Sandisk falling more than 9% after the specialist NAND chips has reduced its forecast for sales in the first quarter, citing lower demand than expected and conditions unfavorable pricing.

The deficit narrowed more than expected in 2011. Good news for the future president. But the deficit target of 3% of GDP by 2013 seems difficult to achieve, given the campaign promises made by candidates at the Elysee Palace. View of the Ministry of Economy and Finance at Bercy.

At twenty-three days of the first round of presidential elections, Nicolas Sarkozy may finally assert some good news on the economic front: the public deficit of France was reduced to 5.2% of GDP in 2011, against 5, 7% initially foreseen in the budget law. President, UMP candidate at the Elysee Palace, was granted the first to hear the announcement this morning on Europe 1, grilling politeness in passing at the National Institute of Statistics.

Members of his government were also quick to react. Valérie Pécresse, the budget minister, welcomed an effort "historic". "Never has the government deficit in France has fallen as far from one year to another," Francois Fillon welcomed. "This is the result of both structural reforms that the president and government have undertaken since 2007 and the reactivity of which we have been to take timely steps to preserve our cap facing the crisis, "said the Prime Minister.

In fact, the deficit is indeed historic. It is almost two percentage points of GDP – the deficit was 7.1% in late 2010 – or nearly 40 billion euros. "This is a performance ever," says Jean-Christophe Caffet, economist at Natixis. This improvement comes at a time of buoyant revenue, which rose from 49.5% to 50.7% of GDP, and expenditure restraint, which rose from 56.6% to 55.9% of GDP. The sharp increase in expenses is largely due to strong tax bases and good elasticity of taxes to the moderate growth – 1.7% in 2011.

Taxes on income and wealth have risen by 10% in 2011: the increase in tax revenue comes from both the corporate income tax (8.7 billion) that the income tax (3 , 6 billion) and social contributions (13.3 billion) due to higher payroll. Measures taken in the context of both austerity also had a positive effect: the CSG revenues increased 5.2 billion due to the introduction of taxation over the water revenues of life insurance, VAT receipts were boosted (5.8%) by increasing the tax on insurance contracts and the removal of VAT reduced on triple play.  

The deficit target for 2012 is achievable

Result the tax burden rose 1.3 points to 43.8% of GDP last year, surpassing 2007 levels, while Nicolas Sarkozy promised to lower them. As for spending, they have continued to increase, but it is true more slowly than inflation. Operating expenses of the state, including staff salaries, slowed sharply (+1.6% after +2.1% in 2010), by freezing of the index which is indexed on the salaries of civil servants . Spending inputs have, they, down 1.5% due to very low shipments of military equipment in 2011, and public investment has registered a moderate increase (+1.6%). Ultimately, Jean-Christophe Caffet calculates, "the structural effort of the government is only about a third of the deficit reduction in 2011."

Nevertheless, the result is there. And strength of this success, the executive has even lowered the public deficit target for this year to 4.4% of GDP against 4.5% previously. Given the growth overhang the first half of 2012 to 0.5% according to INSEE – and reduces the effort required this year – 0.8 percentage points of GDP or 16 billion euros -, "this goal deficit is largely achievable, "said Jean-Christophe Caffet. Especially as many measures as part of the austerity plan – increase in VAT reduced from 5.5% to 7%, establishing an outstanding contribution on high incomes, freezing the scale of the income tax, freeze benefits, etc.. – Come fully into force this year.

A boon for the next president to be elected in May and the government that emerges from the polls in June. "The big uncertainty is 2013, warns economist of Natixis, because nothing is known about how the structural effort that will achieve, or about 30 billion euros". France has indeed committed to Brussels next year to bring its public deficit to 3% of GDP. Nicolas Sarkozy and François Hollande, have both confirmed this objective during the campaign. The two favorites in the race to the Elysee to differ only after the UMP candidate promising to balance the budget by 2016 while that of the PS wants to achieve in 2017.

The problem is that Nicolas Sarkozy has not announced anything else, for now, that further measures of reduced spending over the past two years. But it will not be sufficient to reach 3%, especially if growth is still not at the rendezvous. As for Francois Hollande, it provides 25 billion of new spending on the five-year and 40 billion annual tax increases. Increases which will focus on businesses, which may penalize growth. From this perspective, The Economist is right: "Whoever wins on May 6 will adopt a tough stance against the deficit, writes the weekly UK this week. Nicolas Sarkozy will make further cuts in the budget, Despite his promise to protect the French austerity. Francois Hollande will push, if not waived, that many of its spending promises. "

CaixaBank Monday agreed to buy Banca Civica to 1.97 euro per share, valuing the latter 980 million euros, said on Monday close to the matter.

A second wave of consolidation is currently at work in the Spanish banking sector, many banks needing fresh capital to cover losses related to the break at the end 2007 a real estate boom a decade.

The newspaper Cinco Dias reported on Monday that would propose CaixaBank 2.2 euros per share Banca Civica through a share exchange transaction valuing the target at 1.1 billion euros .

The number of referrals to the Ombudsman of energy increased 14% in 2011. At issue: payment difficulties. The Ombudsman proposes to introduce a general truce breaks from November 1 to March 15.

The cases of fuel poverty rose sharply last year in France, as a result of the crisis and rising energy bills and gas, says National Energy Ombudsman in his 2011 report published Tuesday. The Ombudsman, an independent administrative authority which began operations in 2008, saw its number of referrals increase by 14% last year, in 8044, it said in its annual report, up a bit weaker than the explosion recorded in previous exercises.

But of that total, the number of cases related to payment difficulties has increased by 80% compared to 2010, and represented over 15% of all referrals, calculated the Ombudsman. "The economic crisis and rising energy prices have compounded the problem of fuel poverty", that is to say, struggling to pay their electric bills or gas, and pushed more and more income households to seek mediation, the institution said. The Ombudsman recalls in passing that the regulated gas prices rose 25% in two years, and those of electricity by 8%.

The Ombudsman also proposes measures to better fight against the rise of fuel poverty, considering the schemes (such as social tariffs for electricity and gas, whose allocation has been made automatic for all eligible households ) insufficient, even if they are "in the right direction." It proposes the establishment of a general truce breaks from November 1 to March 15 for all consumers, on the model of the winter break of evictions (a truce energy cuts already applied but only for some consumers), and the establishment of an "energy check", which may be substituted for social tariffs.