Business & Financial News

Even before the inauguration of the second Socialist president of the Fifth Republic, the president of MEDEF multiplies the signals conciliatory address.

Laurence Parisot and Francois Hollande said on Friday, already engaged in consultations with European leaders, was right to put the topic of growth on the table.

"We want to work to ensure that as soon as possible our country finds the path of sustained economic growth," she said on RMC and BFM-TV. "We have some impatience to meet the government or the president."

The chairwoman of the main French employers' organization believes, however, should not oppose this issue to that of fiscal discipline, which was one of the axes of attack of the outgoing president Nicolas Sarkozy against Francois Hollande during the presidential campaign.

"Obviously we need, all European countries today, methods, disciplines to manage our budgets," she said.

One position it defended in an interview with Les Echos, in which she wondered, however, also on how to complete the "budget package" signed in January by 25 of the 27 countries of the European Uni ; enemies by a "growth package". 

"We must also ask how to create a confidence shock that would be a growth shock without exacerbating the deficit," said the president of MEDEF. "In other words, we support a growth initiative, a 'compact growth' but not renegotiate the 'tax compact'."

It is in this context a series of proposals – hire a general review of European policies, define priorities in infrastructure to be financed by public-private partnerships or "project bonds" – bonds related to investment programs, etc..

CALL TO THE ECB AND BERLIN

"The chamber is clearly European. We join the call by Jacques Attali and Pascal Lamy for a government and an economic growth of European budget ", says she

……. .. The former collaborator of François Mitterrand and the current Director General of the World Trade Organization are deemed close to the Socialist Party

.. Laurence Parisot ……. Les Echos also develops in any argument that would not have denied the candidate Holland

. "We want Europe to have a clear doctrine and assumed in terms of competitiveness, that is better coordination between monetary policy, fiscal policies and an investment policy that could be decided at EU level, "she said. 

The chamber also wants the European Central Bank "to make sure that the euro is not so high against the dollar, which depends on interest rates but also the speech of his pre President ", and that Germany," who has no interest that the euro zone into recession, has a more cooperative approach and a policy based more on demand ".

These convergences with the program of Francois Hollande do not erase important differences, including the fate of the pension reform, corporate taxation and a possible "boost" to the minimum wage (SMIC).

But on these subjects, Laurence Parisot is rather conciliatory. She says well prepared to discuss the calculation of the minimum wage, wants the introduction of such a minimum wage in Germany and does not reject the idea of ​​framing the high salaries in the public enterprises.

CONTACT

"I can not tell you if a scale of 1 to 20 is good or not," she told BFM-TV and RMC. "But (…) I expect a lot from the President on this point (…) There is a balance to find." And estimate, again, that Francois Hollande is right to put the subject on the table, "because it is the social bond is at stake."

She confirmed on BFM TV and RMC officials that Medef already working with employees of successor Nicolas Sarkozy, who takes office Tuesday.

"I myself have met several members of the team of Francois Hollande," she added. "We are sweeping all subjects and at the same time (…) we are already working with the unions."

During the campaign, the candidate Holland announced his intention to convene in mid-July a national conference for growth and employment.

"The approach of Francois Hollande on social dialogue is very much that we have long advocated," said in Les Echos Laurence Parisot, who even considers "interesting" sound idé e of "generation contract". 

Nicolas Sarkozy, after betting on dialogue with unions to ensure social peace, has only had its share of stops during the presidential campaign to denounce the "intermediate bodies" charged tied up and threaten to appeal directly to the "people" by means of referendum.

Lafarge will continue in 2012 its price increases, to reduce its debt and its asset sales, in a context of increasing global demand for cement which supported its first quarter results.

The world's leading cement, who is currently refocusing on the job and on the concrete and aggregates while leaving the plaster continues to anticipate for the year increased 1 to 4% demand for cement due to emerging countries, where it now generates 60% of its sales, and even Europe, especially in the South.

It is right to catch up on prices, particularly favorable to the margins of the group Lafarge anticipates a more moderate cost inflation in 2012 and 2011. 

"Price increases passed successfully at the beginning of the year confirm our optimism on prices for the entire year," said Chief Financial Officer Jean- Jacques Gauthier during a teleconference.

He also expressed confidence to proceed to a further increase in August in the U.S. cement.

Lafarge has maintained its estimate of the market in 2012 despite weaker business in Greece on the one hand, and despite the rebound in the U.S. on the other. Jean-Jacques Gauthier said that the North American market, the group wanted to wait safely in the second quarter before rising to possibly refine its current forecast of demand for cement, between -1 and +2%.

"The main figures should receive a positive reception, especially in light of recent pressure exerted on the action," said Goldman Sachs in a note.

Around 11:30, the title Lafarge is 3.2% to 30.92 euros, after a day earlier to 31.80. At the close of Thursday, title, posted a gain of 10% since the beginning of the year, after -42% in 2011.

OVER ONE BILLION EUROS FOR TRANSFERS OF ASSETS IN 2012

Lafarge posted first quarter revenues up 5% to 3.35 billion euros, slightly above the consensus reached by the editor of Reuters ; estimates from eight analysts who gave $ 3.3 billion.

The EBITDA increased its share to 8% and operating profit by 28%, while net income, group share, showed a loss of 44 million euros , -29,000,000 against a year earlier, reflecting restructuring charges corresponding in particular to the 500 job cuts brought worldwide as part of the reorganization of the group. 

Excluding these charges, Lafarge has emerged over the period with net income of 18 million euros.

Lafarge intends to reduce by at least 400 million euros this year and costs limited to EUR 800 million investment as part of its debt.

In the first quarter, the group's net debt, largely inherited from the acquisition of Orascom in 2008, declined by 13% year on year to 12.4 billion euros . One quarter to another, it is clear, however, up 3%, a trend linked "to normal seasonal variations in working capital (working capital needs)," said Lafarge.

To seek "significant" this debt in 2012, the group also to give one billion euros in assets, of which 71 million were performed on the quarter.

Jean-Jacques Gauthier said that Lafarge would exceed the figure of one billion, but without saying how much.

Both activities are the subject of rumors of transfers, the plaster in North America, a trade balance which the group is almost released last year, and cement in South Africa. Lafarge must also achieve significant asset sales in Britain required by the Competition Authority to give its green light to the proposed joint venture between Lafarge and Anglo American.

"It is not impossible that these divestitures can be made in 2012," said his side the CEO of Lafarge, Bruno Lafont, during a teleconference .

The Belgian economy has resumed growth in the first quarter and was not in recession in the second half of 2011 contrary to what was originally advertised, showed particular are released Wednesday.

The Gross Domestic Product (GDP) grew 0.3% over the first three months of the year compared to last quarter. In annual terms, sales rose 0.5%, announced the Belgian central bank.

In the fourth quarter of 2011, the Belgian economy shrank by 0.1%.

However, the central bank has revised its figures for the third quarter GDP, from -0.1% initially announced, to no growth (0.0%).

This means that Belgium did not ultimately experienced a recession, defined as "technical" recession establishes that at least two consecutive quarters of GDP contraction.

In 2011, Belgium recorded an annual growth of 2%, against an initial estimate of 1.9%.

GDP figures for the euro area for the first quarter will be published May 15, along with those of Germany, France, Italy and the Netherlands. 

In the fourth quarter of 2011, the GDP of the eurozone declined by 0.3%.

The current account deficit of France widened in February to 5.0 billion euros from 4.4 billion in January, show figures released Thursday by the Bank of France .

The trade deficit in goods rose to 6.6 billion euros against 5.8 billion a month earlier.

Trade in services have in turn generated a positive balance of 1.3 billion euros after 0.7 billion in January.

The balance, positive income decreases to 2.6 billion euros from 3.1 billion in January.

The deficit in current transfers remained stable at 2.3 billion euros.

The financial account was positive at EUR 15.8 billion in February from -2.8 billion in January. 

French direct investment abroad stand at 1.5 billion euros from 4.1 billion a month earlier, while direct investment by non-residents in France rose to 2.6 billion after $ 0.9 billion in January.

Portfolio investments are the source of capital inflows to 18.5 billion euros "mainly due to purchases by non-residents of securities (public and bank) issued France ", according to the Bank of France, after trips to 23.4 billion in January.

The residents have reduced their holdings of 0.3 billion euros (-21.3 billion in January after), while non-residents have made purchases , height of 18.8 billion (-2.1 billion in January after). 

Other investment outflows display of 6.3 billion euros from 26.7 billion of inflows in January.

The first tripartite round table on the future of the plant PSA Aulnay-sous-Bois has resulted in no concrete progress on Friday and the prefect of Seine-Saint-Denis set the next appointment in late June, after the presidential election.

The interview between the State, represented by the prefect, the direction of the automaker and the unions and local politicians, claimed for nine months by them, was stormy said Jean-Pierre Mercier, representative of the CGT, and five trade unions on these seven left the room before the end.

"The unions have called for PSA agrees in writing (…) To maintain all jobs at least until the end of 2016, officially ended production of the C3, and assign a new vehicle to replace the C3. But management does not want to commit to anything, "he said

." The next date falls after the presidential and the law, it is exactly the speech Peugeot: do not use that either in the middle of election campaigns, "he said

… In an attempt to …… get rid of this calendar, the CGT called for a rally next Thursday before the campaign headquarters of Nicolas Sarkozy in Paris

.

The Department of Industry, has said his side "fully alert and mobilized to the site's future automotive Aulnay-sous-Bois" and stressed in a statement, the group confirmed that it "does not consider the proposed closure of site in France." 

But at the roundtable, PSA Peugeot Citroëna again refused to discuss the C3 after repeating, as it has for several months, will still produce cars qu'Aulnay until 2014, unspecified beyond.

The builder also mentioned, the statement of the Ministry, the arrival on the surfaces of Aulnay-sous-Bois unused today, "new economic activities complementary ments ".

PSA declined to comment on the roundtable, but a spokesman said that about 40,000 square meters on the site now unused, 23,000 were de ja and 17,000 rental available for rental for industrial and real estate. 

The factory in Aulnay-sous-Bois, which produces the small Citroen sedan, employs 3,500 people and seems the most threatened European sites of PSA while the group was given two years to re ; Gler the issue of persistent overcapacity in Europe.

The fate of the Madrid plant also raises questions as no model has been announced to take forward over the last Peugeot 207 assembled therein.

European shares move in a disorganized mid-session after opening up while Wall Street is expected to have eased slightly.

In Paris the CAC 40 was down 0.15% (-4.99 points) to 3,418.82 points. In Frankfurt, the DAX rose 0.29% and London, the FTSE is virtually unchanged. The pan-European index Stoxx 50 was down 0.40%.

The index futures point to a New York opening spreads from Wall Street while the purchasing managers' index for manufacturing (ISM) will be published at 1400 GMT.

In Paris, Total continues to rebound and earn 1.27% after the announcement that British authorities will receive Monday representatives of the company to consider a proposal to send a team of experts on its platform of Elgin in the North Sea which had to be evacuated due to gas leak. The revelation of the leak on March 26 led to a drop of nearly 7% of Total's share price, the last week, despite a rebound of a , 06% Friday after the announcement of the termination of a flare which casts a risk of explosion of the installation.

PSA Peugeot Citroen fell by 3.77% after announcing a fall of 33.2% over twelve months of its new car registrations in France in March, while Renault sells 1 76% after a decline of 29.8% over the same period against -23.5% for the whole French market.

Cimpor jumped nearly 9% in mid-session after the announcement Friday by the second group of Brazilian Camargo Correa construction of its intention to launch a bid for 68.1% capital of the Portuguese cement that does not already own. 

Originally worn by an official index of purchasing managers in China better than expected and reassuring thought on the growth of the first Asian economy, some European equity markets are ironed in led by the red squares of the peripheral countries of the south.

Information from press reports that the Bundesbank planned to take over the paper in several countries, including Portugal, have weighed heavily on the places of southern Europe, before being denied by the Institute of German issue.

The acceleration of the contraction of manufacturing in the euro area in March, reinforcing fears of a recession within the bloc while the slowdown has spread to Germany and France, has also affected the trend.

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 gas leak on a Total deposits in the North Sea will be expensive to French oil group, but the situation seems out of proportion to the oil spill in 2010 in the Gulf of Mexico after the explosion of a BP platform.

Analysts polled by Reuters, the cost for Total could be limited to $ 150 million (113 million) if the leak was quickly clogged, or otherwise be at least $ 10 billion if the platform of the Elgin-Franklin field eventually explode.

Total has not ruled on Tuesday that the repair takes several weeks or up to six months, and keen Wednesday the exact cause of the leak. 

The prospect of a distant deadline for resolving the industrial crisis, the worst that Total has seen since the sinking of the Erika in 1999 and the explosion at the AZF factory in 2001, brutally brought down the stock market as Tuesday. The stock has lost 5.96%, leading to the Group's market capitalization plunge of about six billion euros.

Total lost the title still nearly 1% to 38.23 euros on Wednesday afternoon.

"Although it is far too early to make a reliable assessment of the impact of the leak (…) for Total, one can estimate a minimum cost of 150 to 200 million dollars in the best case (limited to two weeks off) or even more if the current situation was to last several months, "CM-CIC Securities.

While the field of Elgin-Franklin alone accounted for 2.5% of total production in 2011, the intermediary also assesses the shortfall for the group between 3 , 6 and 5 million per day shutdown of operations. 

LESS STRICT LAWS IN THE UK

Drilling a relief well could cost him only $ 44 million, assesses his side Exane BNP Paribas.

Analysts at Bank of America Merrill Lynch, if an explosion had finally held, "the impact could reach $ 10 billion" for Total.

This amount includes the loss of deposits and the platform and nearly deus billion to clean up environmental damage, but excludes any fines.

Most observers point out however that the situation on the Elgin-Franklin field is not nearly as critical as that of the Deepwater Horizon, in the Gulf of Mexico, including the explosion and sinking had made eleven dead in April 2010 and resulted in a serious oil spill. 

In total, the British BP has had to make provision for $ 37.2 billion deal with the consequences of this accident.

While nine million barrels of crude oil escaped from the Macondo well drilled on behalf of BP after the accident, analysts point out that only gas and products "light" is e ; chappent the Elgin wells, which should significantly reduce pollution.

Some further notes that the economic activity of the British coast is less important than the U.S. states bordering the Gulf of Mexico and the United Kingdom has not yet introduced legislation involving sanctions as severe as those imposed by the United States in case of water pollution.

"We do not expect major Total incur fines or provisions that must pass (…) As important as those of BP in the case of Macondo, "estimated the Exane BNP Paribas analysts

." This kind of accident is often unpredictable and difficult to resolve. Nevertheless, we think the probability is low to see the leak reach crisis proportions comparable to Deepwater Horizon, "he wrote on his side Fitch ……. According

.. rating agency, Total should maintain its AA credit rating even in the event of complete closure of the deposit of Elgin.

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 .