Business & Financial News

The euro fell to its lowest level in four months, tormented by the crisis in Greece and its possible output of the common currency. View from the seat of the ECB in Frankfurt

The euro fell below 1.27 dollars Wednesday, displayed at its lowest level in four months, following the failure of the formation of a coalition government in Greece, which worries the markets.

Wednesday at 7:00, the euro bought 1.2693 dollars, its lowest value since January 16 when he was traded again to 1.2728 dollars on Tuesday to 9:00 p.m.. The single European currency also fell against the yen, quoting 102.00 yen, its lowest level since mid-February vis-à-vis the Japanese currency. It was still worth 102.12 yen Tuesday at 2100.

Investors were worried about political instability in Greece, where new elections will take place by end June, no coalition government could not be formed at the end of negotiations following the elections on May 6

This election saw the Greeks punish the two pillars of the country's political system, the New Democracy (right) and PASOK (Socialist), because of their support for the austerity measures imposed by creditors in exchange Athens international loans needed to avoid bankruptcy the country. The party of the radical left Syriza, who focused his campaign on the rejection of rigor, came in second place on May 6 and seems to have the wind in their sails.

The political impasse has revived fears of a possible exit from the country of the euro area, the consequences seem difficult to predict. At their first joint press conference Tuesday evening, German Chancellor Angela Merkel and new French president Francois Hollande were willing "to consider additional measures for growth in Greece," if it requested. They also stated their desire that the country "remains in the euro area".

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France Telecom has managed to limit the impact on revenues of Free Mobile launch in the first quarter in spite of numerous defections among its customers, tempering the market pessimism on its ability to pass through this turbulence.

The incumbent has suffered a decline in its overall turnover and profit margins as a result of declining revenues in France, whose magnitude was, however, revealed lower than market fears.

The group has particularly benefited from the roaming agreement concluded with the new entrant for the use of its network that pays more than expected at France Telecom.

At 10:50, the title gained 2.3% to 10.48 euros, while the CAC 40 and the European telecoms sector index are 0.96%. 

"The motive in France was stronger than expected," commented analysts at Jefferies in a note, acknowledging also the commercial cost control, remained stable over the period despite increased competition in early January with the launch of Free on the mobile market.

The results of France Telecom, the first operator to provide its quarterly, were eagerly awaited by the market for an initial diagnosis of the impact of entering the fourth on the French market, while France Telecom does not disclose details of its margins by division.

The incumbent has recorded a total loss of 615,000 mobile customers in France during the first three months of the year, a figure to compare to the 219.000 departures recorded on the corresponding period last year.

Applications portability "returned the last two weeks of March to the level before the arrival of Free market," said CFO Gervais Pellissier during a conference call with reporters.

"The customer losses are slightly higher than what we expected but what is most reassuring is that the group indicates that the tumult caused by the arrival of Free market seems to calm down, "said Guy Peddy, Macquarie, which says a bit more optimistic even though" much work remains to be done. " 

NEW PROSPECTS EXPECTED TO SUMMER

Throughout the first quarter, the total turnover stood at 10.92 billion euros, down 1.8%, while adjusted Ebitda stood at 3 , 43 billion (-7.0%), giving a margin of 31.4%, down 1.7 points.

The market expected a turnover of 10.81 billion euros and an EBITDA of 3.45 billion euros, according to Thomson Reuters I / B / E / S.

The group has suffered from the 4.2% decline in sales in France related to the impact of Free mobile subscriber base and its price, which has however been partially offset by income generated by the first roaming agreement concluded with Free Mobile, a subsidiary of Internet service provider Iliad. 

The operator now believes that he should yield about one billion euros over three years against the same amount over six years previously.

France Telecom, which reiterated a target operating cash flow of nearly 8 billion euros in 2012, has however confirmed that he no longer maintained the objectives for the period 2013 to 2015 announced ; s in May 2011 as part of its strategic plan.

"While the arrival of Iliad was expected, the price level at which it is set in January is lower than what we have anticipated in May, or even what we might anticipate yet at last November, "said Gervais Pellissier, adding that the group continued to anticipate an early recovery for next year. 

"We made an appointment to investors in the summer to tell them what would be 2013," he added.

Despite pressure on its margins and its sales, France Telecom does not provide for downsizing in the Hexagon, said the CFO.

Competitors Bouygues and SFR have undertaken a series of measures to reduce costs.

Saffron flames on the stock market Thursday after announcing strong growth in quarterly revenue, supported by its commercial engine business, and reaffirmed its 2012 objectives and confidence for years to come in light of trends in the market.

The supplier for the aerospace, defense and security sees its title clinch 7.40% to 28.65 euros by 9:55, the fastest increase in the CAC 40.

Safran, whose capitalization reached 12 billion, returned 24% since the beginning of the year.

The group confirmed target for 2012 growth of around 10% of its turnover and an increase of about 20% of its EBIT, free cash flow which should represent about a third. 

The Thomson Reuters consensus I / B / E / S reported for 2012 a turnover of 13.111 billion euros, representing growth of 11.7%.

In the first quarter, the group achieved a turnover of better than expected 3.108 million up 15.9% in raw data, representing organic growth of 7.3%.

It takes advantage of the 15.1% of its business services to commercial engines in U.S. dollars, thanks to the CFM56 product as part of CFM, its joint venture with General Electric to parity.

Saffron continues to expect growth in commercial engine business to nearly 10%, stressing "the fluctuating behavior of airlines inherent in economic conditions deteriorated ". 

MEDIUM-TERM OUTLOOK ENCOURAGING

Group CEO Jean-Paul Herteman said in a conference call to count on an increase in passenger and cargo traffic and the need for newly aging fleets of fuel-efficient in a context of price e rose oil.

Leap engine, successor to the CFM-56, was selected for the A320neo and 737MaX, remotorisées versions of single-aisle Airbus and Boeing, and for the Chinese Comac C919.

Safran reported 378 deliveries of new CFM56 engines in the first quarter – 56 more than the first quarter of 2011. Orders and purchase intentions and the CFM56 Leap totaling 695 units to 19 April, with an order book remained at about seven years of production.

On this basis, Jean-Paul Herteman spread the risk of occurrence of a bubble, a concern emerged after the record garnered orders from Airbus and Boeing in 2011, especially from companies Asian.

"The term bubble is certainly excessive," he noted, recalling that the shifts were still possible orders in the aerospace sector.

"(But) it does not involve sales growth and activity of the profession in the coming years unless major economic cataclysm," he added. 

He thus echoes the comments of Olivier Zarrouati, CEO of Zodiac Aerospace, a company specialized in equipment for aircraft cabins, who did not believe either to emergence of a bubble.

In terms of acquisitions, Jean-Paul Herteman declined to comment on the new interest in Safran for Italian Avio, controlled by private equity funds Cinven alongside Finmeccanica, which owns 14% stake.

John Paul was reaffirmed in February Herteman identify complementarities with Avio in the fields of space and aeronautics. 

The Italian public fund Fondo Italiano Strategico last week showed his interest for a stake in Avio, including an IPO was considered.

Jean-Paul Herteman also said he had signed the April 20 agreement establishing a joint venture with Thales for commercial and technical optronics, combining optical and electronic technology that facilitates including night vision for soldiers.

He added that the proposed JV parity announced just before Christmas was being investigated by the authorities of the staff.

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.

Areva announced Friday an agreement with EDF to provide the public with electrician nuclear fuel assemblies and related services for the years 2013 and 2014.

Financial details of the agreement were not specified.

The fuel assemblies, which confine radioactive material in sealed ducts, are the Centrally? Heart of a nuclear reactor, where fission takes place.

Areva and EDF also agreed to negotiate a framework agreement in the medium and long term on the fabrication of fuel elements.

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. "

This is a Rupert Murdoch angry that went against the attack Thursday against the "enemies" who accuse his media group News Corp. to have hacked his rivals, calling them "aristos and conservatives "finding their privileges of the last century.

Already weakened by the scandal of illegal wiretapping in Britain, News Corp. is in the center of new allegations made in Britain and Australia that a subsidiary of would have had the mission of promoting piracy of pay TV channels competing.

The Australian Financial Review reported Wednesday that News Corp. had made use of Operational Security, a subsidiary established in the mid 1990s, to sabotage its competitors. The Panorama program, broadcast earlier this week in Britain by the BBC, had already reported similar suspicions.

Operational Security was a branch of NDS, a subsidiary of News Corps specializes in signal encryption, a crucial activity for pay-TV channels.

News Corp. as NDS, exit from the orbit of the Murdoch group, pitted categorical denials to the allegations.

"It seems that each of our competitors and enemies accumulate lies and slander," wrote Rupert Murdoch on his Twitter account Thursday, adding that the response was being prepared and would be severe. 

News Corp., whose activities span the spectrum of media and whose power is said to be able to make or break political careers, is subjected to very high criticism since the scandal broke wiretaps in Britain who notably led to the closure of the tabloid News of the World last summer.

But faced with these new charges, Murdoch, who confessed last July to a parliamentary committee having lived "the most humiliating day of his life", seems to have opted for a response from any other type .

Always on the microblogging site, he believes his "enemies have different aims" but they are "the worst old aristocrats and conservatives who want to preserve the status quo of the last century with their monopolies ". For a staunch Republican such as Murdoch, "aristo" comes under heavy insult.

THE BBC AND MAINTAIN THEIR AUSTRALIAN FINANCIAL REVIEW INFORMATION

But the BBC, which was repeatedly in trouble with BSkyB, whose News Corp. owns 39% stake, maintained Thursday the revelations of the magazine Panorama.

"We received the letter and have knowledge of NDS by News Corp's rejection of the revelations of Panorama. However, emails released this issue have not been manipulated, contrary to claims that NDS, and nothing (…) does not minimize the evidence released es in this issue, "said the public channel

. At the opposite, the Australian Financial Review, property group Fairfax Media, chief rival of Murdoch in the Australian press, has also maintained its information

. "Fully secured to the extraordinary investigation Neil Chenoweth, "the journalist who released the information, Michael Stutchbury, editor of the Australian Financial Review, said the newspaper was" in no way motivated by any desire either to harm a rival financial group that manages the Financial Review ". "We only cover a case and publish what we found," he said.

No evidence uncovered by the BBC as the Australian Financial Review to suggest that Murdoch or any senior executive of News Corp were not aware of practices lent to NDS.

According to the Australian Financial Review, Operational Security reportedly recruited hackers to decipher codes or access cards provided by pay TV competitors to their subscribers. These codes were then distributed on the black market via "yes cards" to monitor programs encrypted channels without paying a penny.

The Australian Financial Review, which suggests a shortfall amounting to millions of dollars, said particular rely on 14,400 emails retrieved from the hard drive of a laptop that used it Ray Adams, responsible for Europe NDS Operational Security from January 1996 to May 2002.

Monday, a report broadcast by the BBC as part of its documentary program Panorama has ensured that NDS hired a consultant to broadcast via its website access codes to ITV Digital, a competitor to Sky TV , chain that belonged to Murdoch. 

ITV Digital, which has accumulated difficulties at launch (rivalry between shareholders, lack of flagship programs, price war with BSkyB), disappeared in 2002.

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.

Unemployment insurance has been reminded by the Supreme Court the obligation to provide full information to job seekers, particularly in access to benefits. She has no room for error in this regard. Which should cause it to reorganize its procedures. Agency employment center in Nice

This is a decision that may have serious consequences for employment center to the edge of implosion. The Social Chamber of the Supreme Court ruled on February 8 that judge as unemployment insurance has failed in its obligation to deliver a "comprehensive information" to a woman about jobless benefits she was entitled. This decision "at the expense of employment center a general duty of information for all job seekers," he told AFP Me Christelle Mathieu, confirming a report by France Bleu Nord. "Now the burden of proof shall be on the employment center," while far a job seeker who felt cheated had to prove its allegations, she said. "It will be the employment center to prove that he has informed the job seeker," she added.

An obligation to properly inform

Moreover, "the Supreme Court has said that employment center has an obligation to provide full information," said the lawyer. Brochures and flyers have indeed been declared inadequate by the courts. The question is will it involve in terms of organization for the employment center. "One can imagine that (…) it will be individual interviews with job applicants, but since depth interviews will need to define precisely what rights the job seeker", which is entitled to several benefits, Mr. Mathieu said. "When we have two possible allocations, employment center will guide the job seeker to one that is most advantageous to him," she said.

His client had requested a specific solidarity allowance (ASS) which was paid from 2004. But during 2005, she had learned "by chance", she could benefit from the retirement allowance equivalent (EAR), the more advantageous, according to his lawyer. She asked that the EAR, it could actually benefit since 2003, he be paid retroactively, as unemployment insurance refused him. She was then approached the court and obtained the High Court of Valenciennes, April 27, 2009, 14,774 euros in damages for the injury sustained, Mr. Mathieu. This judgment was upheld by the Court of Appeal of Douai 16 June 2010.

Now, what will happen to employment center? Unions never fail to complain about a lack of resources and personnel and a degradation of services to job seekers, since the merger of the ANPE and UNEDIC. This lack of resources also derive worse working conditions for staff of employment center, whose workload has exploded and that no longer benefit from 1,800 additional posts in CSD granted when the crisis erupted.

General Motors announced Monday it will pay 320 million euros to take 7% of French carmaker PSA Peugeot Citroen.

The manufacturer also says that the partnership plans to build at least four common models by 2016.

In a regulatory document sent to the Securities and Exchange Commission, Constable of the American Stock Exchange, General Motors said that the alliance is expected to last 10 years and will be renewed ; unless either party has an objection to this extension. 

Peugeot unveiled last week its strategic alliance with General Motors through which it hopes to save on purchase costs and development , with an entry of U.S. giant in its capital up to 7%.

The alliance will go off if a competitor of GM captured 10% or more of Peugeot, directly or indirectly, the U.S. group says in a statement.

Meanwhile, the partnership may be terminated if the share held by the Peugeot family falls below 15% and a competitor amounts to 5% or more in the French manufacturer.

A clause further provides for an end to the partnership if another automaker acquires 3% of PSA following an agreement with PSA Peugeot or with family.