Business & Financial News

The New York Stock Exchange ended down slightly from 0.01% Friday, the Dow Jones 30 industrial yielding 1.74 points to 12,982.95. The S & P-500, wider, took 2.28 points, or 0.17%, to 1,365.74, a closing level since June 2008 unpublished.

The Nasdaq Composite Index advanced 6.77 points on its side of (0.23%) to 2,963.75.

For the week, the Dow was awarded 0.3%, as the S & P 500, while the Nasdaq took 0.4%.

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 amount of mortgage loans fell by nearly 26% over a year and nearly 50% compared to December. A real "blow". http://www.flickr.com/photos/gcattiaux/

The amount of loans granted by banks recorded a very sharp decline in January, falling 25.7% over the corresponding month of 2011, according to a study by the Housing Credit / CSA published Monday. "The year 2012 did not start very well. In a sluggish economy, the backlash movement anticipation of the end of 2011 is significant," notes the study.

On a monthly basis, the collapse is indeed brutal: -49.4% between December 2011 and January 2012 (after already falling by 34.1% between December 2010 and January 2011). "It's a blow. The fall is comparable to 2009, when the subprime crisis + + U.S., "said Michel Mouillart for AFP, professor of economics at the University of Paris West and industry expert

. For Mr.

Mouillart two decisions specific to the sector in addition to "concerns about rising unemployment, purchasing power and the unfavorable economic outlook". "First of all the strong decrease in the rate (from 22% to 13%) of the tax benefit for investors buying a new home and, in addition, the removal of zero-interest loan (PTZ) for buyers of older homes, "said M . Mouillart

. For the full year 2012, loans granted banks should amount to only 130 billion euros, a drop of almost 20% compared to 2011 (160 billion), far from the high of 2007 (170.2 billion), said Mr. Mouillart. The reversal came after an explosion of these funds since the beginning of the century who had contributed to buoyant property market in France: 70.8 billion in 2001, 87.3 in 2003, 143.7 in 2005 and 170, 2 in 2007.

Interest rates on mortgages continued to rise in January 2012 and have averaged 3.97% against 3.94% in December 2011 and 3.86% in November, a jump of more than 70 points base compared to the lowest level since 1945 (3.25% on average) reached in November 2010, according to Credit Housing.

The main unions of pilots, stewardesses and stewards have issued a strike notice for four days starting Monday. Air France has said it already able to provide over 80% of its flights. Of passengers at the information board on flights at Charles de Gaulle

French unions aviation, including pilots of SNPL and the main organizations of hostesses and stewards, confirmed Friday their strike call from 6 to 9 February to oppose a bill regulating the right to strike in this sector.

Air France plans nonetheless provide at least 80% of its flights. But warns that the percentage may be reviewed depending on the number of employees that arise at work, they are not forced to declare strikers.

For its part, EasyJet does "no major disturbances" on its flights despite the strike call.

In addition to the pilots and flight attendants, federations FO, CFDT, UNSA and CGT have the air, after an inter-union, called the staff of companies and their service providers to mobilize. The bill "has been hardened to the Assembly and the government does not want to negotiate, the National Council of SNPL therefore confirmed the strike on Friday from 6 to 9 and decided it would be renewable, either directly after 9, or at another time, "he told AFP Yves Deshayes, national president of the SNPL, the main pilots' union, super-majority at Air France.

"In the action via other means"

"At the Inter, after our board meeting, it's the same with a strike from 6 to 9, and a few different versions according to the unions," said Yves Deshayes. "The three main trade unions of PNC (flight attendants), the SNPNC, the Unac and UNSA also call from 6 to 9, "said the driver. "The strike is held from 6 to 9," also said Franck Mikula, president of the Unac (CFE-CGC) at the conclusion of the Inter.

The SNPL said that among the ground staff would go on strike and some others would be "in action via other means." "We call for the strike in all French airlines, in metropolitan and overseas territories" , said Yves Deshayes.

The Chinese government will send next year a delegation of Chinese investors in Europe to acquire companies. Nicolas Sarkozy and Hu Jintao in Beijing, April 28, 2010. French President visited China for the inauguration of the Expo.

The Chinese government will send next year a delegation of Chinese investors in Europe to "buy European companies," said Chinese Commerce Minister Chen Deming, quoted Tuesday by the newspaper Global Times. "China wants to invest its large trade surplus and will not hold billions of dollars that depreciate," said Chen Deming Monday at a conference in Beijing."We are prepared to further open our market, for example the financial sector, but other savings should in turn be more open to our place," he said, always cited by the Global Times.

The paper does not specify the countries that the Chinese delegation will visit, or the composition of the delegation, or the amount or nature of such acquisitions. China holds huge reserves, which exceeded the end of September 3200 billion. She had invested the same date of $ 1.148 billion in U.S. Treasury bills while according to experts, it holds more than 550 billion sovereign debt of European countries.

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 billionaire is the target of a tax adjustment record says Tuesday Médiapart site. The IRS would make him pay including the concealment of twelve bank accounts abroad and the acquisition of the island secret watering. Liliane Bettencourt at the fashion week in Paris, January 26, 2011.

Nearly 78 million euros. This is the tidy sum claimed by the IRS to Liliane Bettencourt said Tuesday the site Médiapart, who had access to the report of the National Directorate of tax audits (DNVSF). "These are the amounts charged (including penalties and fines) under the wealth tax for the years 2004 to 2010 and, under the income tax for the years 2006 to 2009. The Negotiations are underway on this issue, counsel for the heir seeking a reduction in the total amount of this addition, "the site.

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.

The agreement snatched in the night between Wednesday and Thursday by leaders of the euro area has temporarily turned off the fire that threatened the single currency but many risks still on the Greek debt restructuring and strengthening of the support fund the euro.

After more than ten hours of the summit, the Heads of State and Government of the single currency agreed with banks to reduce by 100 billion euros Greek debt and endorsed a complex mechanism to bring the firepower the European Financial Stability Fund (EFSF) to 1,000 billion.

European markets jumped and reached their highest level in three months while the euro was appreciating at more than $ 1.40, a value that had not crossed since early September.

But if this complex agreement among the most ambitious concluded since the bursting of the debt crisis in Greece in late 2009, it is nonetheless flawed, full of question marks and carries significant risks on its realization.

The bankers must first confirm their voluntary commitment to participate in the new bailout of Greece – a process that was long winded in the previous program.

Countries in the euro area should then agree on a series of far from trivial details in the implementation of the new EFSF, as the participation of international investors to it.

"I think the main risk would be to wait too long the implementation of these agreements," warned Thursday Ewald Nowotny, a member of the European Central Bank.

"Speed ​​is essential in this case," he told Austrian radio ORF.

GREEK RESTRUCTURING

Three months ago, European leaders had already reached agreement on a major debt reduction Greek involving private creditors, but the delays in implementing the plan and its lack of ambition have quickly rendered inoperative, at least in the eyes of the markets.

Decisions taken at dawn Thursday, finally attacking head-on questions of Greek debt and contagion of the crisis to larger countries such as Italy, Spain or France, are expected to avoid the euro area to repeat the same mistakes.

For Greece, it is expected that the debt be reduced from more than 160% of GDP to 120% in 2020, a level considered sustainable by the European authorities.

To do this, the governments of the euro area will set the table 130 billion euros in loans and guarantees, while private creditors will remove 100 billion from 210 billion euros of Greek securities they hold.

This voluntary contribution, expected to be received by the end of the year will amount to a waiver of 50%, said Nicolas Sarkozy and Angela Merkel, who had to meet in person with representatives of banks and weigh their weight to force the decision.

The Director General of the Institute of International Finance (IIF) Charles Dallara, who represented the banks in the negotiation, welcomed the agreement, which revises the plan of July 21, in which the private sector was engaged only up to 50 billion euros.

As expected, the leaders of twenty-seven have also endorsed the plan to recapitalize banks to the tune of 106 billion euros by June 30, 2012, of which 8.8 billion for French banks.

The plan also provides government guarantees to enable banks to secure funding in the medium and long term, similar to those that were implemented in fall 2008 at the height of the financial crisis.

1.000 BILLION FOR EFSF

Third and final part of the European response to the crisis, Europeans also agreed on a scaling capabilities of the European Financial Stability (EFSF), which could then be brought up to 1.000 billion euros.An initiative likely to reassure markets on its ability to fly, if any, help from countries like Italy or Spain.

The Fund had in its creation of 440 billion euros but the support in Portugal and Ireland and the complex financial arrangements necessary to give it a AAA rating reduced to about 250 billion today its actual capacity remaining.

The leverage will be achieved via a dual mechanism: on the one hand it will provide partial debt issued by troubled countries and, secondly, to create a new "special vehicle" backed by the EFSF and the International Monetary Fund (IMF) with the participation of international investors, such as China and other emerging countries.

Nicolas Sarkozy, who said in Brussels that the Chinese participation was envisaged, met Thursday on the phone with his Chinese counterpart Hu Jintao.

The Director General of EFSF, Klaus Regling, will visit China on Friday to meet with investors.

If he had been excluded from the weekend to leverage the EFSF by providing access to unlimited liquidity to the European Central Bank, the central bank has been active in the preliminary summit.

Providing some relief to markets, the future President of ECB, Mario Draghi, stated Wednesday morning that the bank would remain present in the bond markets as they would be unstable, an expected sign for several days which was welcomed by Nicolas Sarkozy.

"I am not the spokesman for the ECB. The ECB is an independent institution. Mr. Draghi did not interviewed before making that decision, we did have asked for anything, but it is permitted to rejoice in what 'he said, which is quite clear, "he said at a press conference, then insisting on these redemptions of debt.