Business & Financial News

MEPs have just voted a bill to ban the diversion of assets in the event of bankruptcy. Hours before his bankruptcy, the French refinery had emptied its accounts. .

The National Assembly passed in the night from Tuesday to Wednesday UMP text to prevent the diversion of assets of a failing company and for Petroplus, with the support of the PS who tried in vain to pass as its own proposals ArcelorMittal targeting. The bill passed almost unanimously (only the communists abstained), and pass Thursday before the Senate, was filed by the UMP deputies of Seine-Maritime, where the Petroplus refinery in Petit Couronne ( 550 employees), in bankruptcy since late January.  

The refinery has "seen its accounts in France emptied of all its cash by the banks of its parent company just hours before the bankruptcy filing," recalled Frances Guégot, lead author of the text. This allows the court to take trade measures (seizure of assets or sale of stocks, for example) of a company, not only at the stage of liquidation as at present, but also upstream, when the power is backup or receivership. Its urgent nomination to the agenda had been an agreement between Prime Minister Francois Fillon and his Socialist predecessor at Matignon, Laurent Fabius, Member of Parliament of Petit Couronne. A fact underlined by the Industry Minister, Eric Besson, who came into the chamber to support the text along with his colleagues Michel Mercier (Justice), Patrick Ollier (Relations with Parliament) and Xavier Bertrand (Labour).

As the minister, Laurent Fabius has paid tribute to the Inter Petroplus, whose representatives attended the debates. But, while approving the bill, he criticized the government for "lack of vigilance" on successive Petroplus, especially during the sale of the refinery in 2008 by Shell. He regretted that Nicolas Sarkozy has announced a "temporary respite" for the refinery during his visit last Friday at Petit Couronne.

Holland rejected the proposal

Left and right agreed on an amendment providing information to staff representatives on the measures. The majority is also committed to respect for social obligations of a bankrupt company, but in terms considered ambiguous by the opposition, particularly the Communist Party, which abstained for that. The Senate, leftist majority should approve the text Thursday.

But this relative consensus has given way to confrontation when the socialists have defended in vain amendments, drawing another bill filed that morning. It was announced Friday by Francois Hollande during his visit to the site of ArcelorMittal Florange (5,000 employees), two blast furnaces are shut down for months. The PS proposed to require a manufacturer withdrawing from a French plant to transfer her to a buyer. "ArcelorMittal has a clear strategy of disengagement from the territory and we must respond," insisted the MP PS Moselle Aurélie Filippetti.

In the wake of Nicolas Sarkozy, who said Monday "does not see the benefit of this proposal" and promised another solution soon, the majority rejected these amendments, the government said, "would undermine the freedom of and undertake to ownership ". The left has once again criticized the head of state to have announced, in February 2008 on the site near Gandhinagar, public investment to maintain the activity, one year before the plant would close anyway.

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.

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.

The Swiss pharmaceutical company Roche made Wednesday his confidence for the current fiscal year while announcing a 2011 annual result in line with expectations despite significant currency effects. Roche also pointed out that the year 2012 was marked by the takeover bid that leads on American society Illumina Genome Sequence . Revenues fell 10% to 42.53 billion Swiss francs (35.29 billion euros), while analysts had expected 42.37 billion. At constant exchange rates (CER), it appears, however, an increase of 1%. The Pharmaceuticals Division has contributed nearly $ 32.79 billion, down 12% year on year. Sales and the Diagnostics Division for their part, declined 7% to 9.74 billion but increased by 6% TCC. Markets expected 32.69 billion for the Pharmaceuticals Division and 9.73 billion for the Diagnostics Division. The net profit was up 7% in France and 26% TCC to 9.54 billion francs, while the market had forecast 9.49 billion. The Board of Directors propose a dividend of 6.80 francs per share and enjoy good (titles stripped of voting rights) for the past year against previous 6.60 francs ; ously. "As for 2012, we expect sales growth of the group in the lower part of the medium single-digit range and have set our target for growth in earnings per Share core activities in the upper part, "said CEO Severin Schwan said in a statement. Roche also aims for its Diagnostics division higher growth than the market and is committed to pursue its attractive dividend policy. The Director General also reiterated that all the hopes placed in Illumina Roche, the U.S. company for which his group has launched a tender offer unsolicited e at a cost of $ 5.7 billion. "The planned acquisition of Illumina will strengthen our presence in the fast growing market of DNA sequencing and enable the discovery of biomarkers for complex research and to clinical purposes, "he said.

Vilmorin confirmed on Tuesday its full-year after a first quarter marked by an increase of 5.9% on a comparable turnover, particularly due to the field seeds.

The fourth seed said the world from July to September quarter, the first of the year the group has traditionally been the smallest of the year as it weighs just under 15% of total revenue.Over the period, sales reached 178.8 million euros.

"In an uncertain economic and financial environment and despite the supply of maize seeds below the targets initial production plans, Vilmorin confirms its outlook for revenue growth and operating margin for the year 2011-2012 , as announced last October, "the group said in a statement.

Vilmorin is always a growth of over 7% of its consolidated revenues on a comparable basis and an operating margin of 11% research effort included.

A year ago the head of state has big plans for the G20 in Cannes, hoping to legitimize its position as world leader and presidential candidate. But on the eve of the summit, Nicolas Sarkozy saw his hopes dashed. The European Council President Herman Van Rompuy, Nicolas Sarkozy and Angela Merkel in Brussels.

It must have been a great moment for France. And especially to Nicolas Sarkozy. Arriving to obtain the presidency of the G20 and G8 in 2011, with the help of his friend Gordon Brown, the head of state hoped to do two things at once: to become the great president of the International that he has always dreamed of being, and credibility for election in 2012. "In a way, it is served by the crisis," he said in November 2010, so do not hide its ambitions.At the time the French president harbored grandiose plans for the world economy: reforming the international monetary system (set the dual problem of the dollar and the yuan), limit the volatility of commodity prices, agricultural, or modernize the governance world. It will not happen, or not much. Already because of Nicolas Sarkozy's ambitions were too ambitious … But also because since November 2010, things have changed for France and its President.

Europe is no longer inspires confidence

It seems a long time since Germany and France landed at the G20 with the design, a bit peremptory, to moralize the financial world. At the time – at the G20 London in particular – the plight of the markets appeared to be the cause of all evil in the world economy.Today, on the verge of drowning, Europe assumed the costume of the responsibility for the crisis, wasting less time than it takes to say its capital credibility.

And it is likely that the G20 is a great opportunity for other states to remind him. All actors have to say good conscious "support and rebalance the global economy face significant risk of deterioration," for most, nothing can be done before that Europe treats his own evils. It is for this reason that the Europeans, Nicolas Sarkozy in the lead, have both hastened to find a solution for Greece. Alas, the great promises of the European Union will not be at the rendezvous.

Tuesday, to everyone's surprise, the Greek Prime Minister George Papandreou decided to submit the European Agreement on Greece in the popular referendum and drawing a large question mark over the future of the euro area.

Wall Street opened the session sharply down Monday after four consecutive weeks of gains, including a fold related to the decline in commodity prices, hurt by the strong dollar.

In early trade, the Dow Jones lost 1.05% to 12.10,05 points.

Wall Street opened in fall Monday after two weeks of gains, weighed down by a statement by the German Finance Minister Wolfgang Schäuble that the next EU summit will not produce a definitive solution to the debt crisis.

In early trade, the Dow yielded 0.59% (56 points) at 11,575 points.The Standard & Poor's, wider, fell by 0.62% (7.5 points) to 1217 points while the Nasdaq composite lost 0.64% (17 points) in 2650.

Germany warned Monday against the dream "unrealistic" to see the European Summit of 23 October Sunday settle the debt crisis in the euro area, keeping the pressure on banks to grant a discount over important Greek debt.

Wall Street was completed Friday a second consecutive week of gains, seeing the S & P 500 gaining over 8% on the hope of curbing the euro area's debt crisis and the global economy avoid a recession.

But a barometer of manufacturing activity in New York Monday revived fears about the U.S. economy.

The Empire State index of the Federal Reserve of New York stood at -8.48 in October, its fifth consecutive month in negative territory, while the market expected a slightly less marked contraction (-4.00) from -8.82 in September.

Industrial production has in turn increased by 0.2% in September, as expected, the manufacturing sector offsetting a decline in the utilities.

Citigroup gained 1.2% at the opening after reporting a profit increase in the third quarter.The bank has indeed had to be provisioned are less clear for its losses from toxic assets, while benefiting from an accounting gain that banks can reap when financial markets are turbulent.

Wells Fargo lost 5.6% after posting a profit rise in third quarter but have just missed the consensus of analysts.

The growth in world oil demand will grow less than expected in 2011 and will accelerate next year, predicted Wednesday the U.S. Agency for Energy Information (EIA).

The EIA, which has already significantly reduced its forecast last month, has not made this time only a small adjustment with growth forecast revised down 50,000 barrels per day (bpd).

The agency now predicts an increase in demand of 1.32 million bpd to 88.4 million bpd this year and an increase of 1.44 million bpd in 2012.

These figures are higher than the predictions of the International Energy Agency, based in Paris, which expects growth of only 1.25 million bpd.

The Organization of Petroleum Exporting Countries (OPEC) has plans to increase the demand limited to 880,000 bpd in 2011 and an increase of 1.19 million bpd next year.

The EIA notes that if the supply of oil is still subject to a number of uncertainties, which she attributed to the instability in the Middle East, demand will continue to be penalized by the jolting of the economy.

"The downside risks dominate as fears continue to weigh on the pace of global recovery, the debt crisis continues in the European Union and other governments still face the challenge of deficits," said the EIA in its report.

A new week promises to be tense on Wall Street, where investors are worried about a possible erosion of corporate earnings against the backdrop of the debt crisis in Europe and slowing Chinese economy.

The U.S. stock markets fell more than 2% Friday, signing the third quarter of their worst quarterly performance in three years, and some fear that the benefits of big names backed out because the rating is supported by foreign demand.

Past two years, export sales have averaged 30% of the turnover of listed companies in the S & P 500, allowing the results of many of them to exceed the expectations of analysts.

"If the euro falls, it will have a huge negative impact on companies like McDonald's," Judge Todd Schoenberger, LandColt of Trading.

"I do not expect quarterly results very fast", he adds. The ball must begin quarterly publication October 11 with Alcoa.

In addition, many U.S. multinationals have benefited in recent months the relative weakness of the dollar to support exports.But the euro shows a quarterly decline of more than 7% against the greenback, depriving companies of the damper.

Last major undertaking as to have lowered its profit forecast, Ingersoll-Rand fell by over 12% on Wall Street Friday after the announcement.

Of surprises anyway?

While the S & P 500 fell 14.3% in the third quarter, 1,700 billion in value gone up in smoke, a period of disappointing results could accentuate this downtrend, analysts said.

Most of them have lowered their expectations of results.According to Thomson Reuters data, earnings for the third quarter are expected up 13.3% over the same period of 2010, against an expected increase to 17% in early July.

In this context, investors will closely monitor the economic indicators to try to learn more about the state of U.S. growth.

The employment figures, released Friday, will be eagerly awaited, as well as the ISM index of purchasing managers in manufacturing (Monday) and services (Wednesday).

Still, some strategists believe to possible surprises on the forehead of the results, as Natalie Trunow, Calvert Investment Management.

"U.S. multinationals do not necessarily derive all their additional benefits (European market), and China, the statistics point to a slowdown but not a hard landing," said she.

Others point out that the drastic austerity measures that large firms have emerged after the 2008 financial crisis will maintain their accounts afloat.

"From our perspective, U.S. companies have learned to make a profit in this context (difficult)," wants to believe Hank Smith, chief investment officer at Haverford Trust.