Business & Financial News

On the eve of crucial European summit must agree on strengthening the EFSF, rumors are going well. The scenario of the report shook the stock markets. The trading floor in Frankfurt

According to information from the daily Die Welt, Germany could request that the date of the scheduled EU summit be postponed Sunday. Significant differences remain in effect for the implementation, especially the status of the EFSF "reinforced". A European diplomat had already emphasized this point of contention with the AFP in the morning.

The silence of Angela Merkel and Nicolas Sarkozy after their meeting Wednesday Express is not a good sign according to some analysts.

The summit, originally scheduled October 17, has already been postponed once.But several senior sources directly involved in the preparation and organization of the EU summit on Sunday, said on Thursday told Reuters not be aware of any proposed postponement of the meeting.

Another fear of the markets, they are trying to learn more about a paper on the EFSF, obtained by news agencies and that the European fund would be used as a last resort to recapitalize banks after the stress shareholders, private investors and governments.

Markets nervous

In this waiting period, nervousness is being felt in markets. Losses CAC40 who had reduced to just 0.5% to double and even more since the French values ​​now fall -1.35% to 15h.

European markets were down -1.1% on average (such as Madrid and Milan), but Frankfurt falls of -1.5%.

Finance ministers and central bank governors of the G20 agreed Saturday to impose a surcharge mandatory capital up to 2.5% of their capital for systemically important banks, to be set up gradually from 2016.

According to the statement issued after a two-day meeting in Paris, they endorsed the device in the sense proposed by the Financial Stability Board (FSB), ignoring calls from financial wishing a review of it these or additional time for implement.

Overload, which can be between 1% and 2.5%, will apply to all institutions, by their size, would be of overall risk to the financial system in case of failure.

Would be affected banks like Goldman Sachs, HSBC, Deutsche Bank, JPMorgan Chase but also the largest French banks: BNP Paribas, Societe Generale and Credit Agricole.

"Now that we have agreed on the framework for these institutions, we urge the FSC to define how to extend this system without delay to all systemically important financial institutions," we read in the statement.

The aim is that these banks have enough capital to get through the turbulence of markets so that states are not forced to wear to their rescue when the next crisis.

This overload should be finally adopted at the next G20 summit on 3 and 4 November in Cannes, at which the names of the banks concerned will be announced.

It is one of a set of provisions on the financial sector ministers and central bank governors have adopted Saturday.

AGREEMENT "TEST BANKS"

Among these include the use by supervisory authorities in the sector of "common tools" to liquidate banks in trouble, writing "wills" by major banks to facilitate their dismantling in case of difficulties or strengthening the monitoring of such institutions.

The CSF, which coordinates the work on financial regulation for the G20, has already defined the criteria implemented in a systemic overload.He identified 28 banks that could be subject, but a source close to the G20, it was reported that the number will be between 29 and 50.

The CEO of JPMorgan Chase, Jamie Dimon, the device has already denounced as "anti-American", while the banks concerned will apply in addition to the new prudential framework called Basel III will require them to hold capital "hard" to at least 7% of their commitments.

The CSB has received other support from the G20 for his work on the definition of "shadow banking system" to a regulation of it, with a view to prevent risk activities will migrate banks to other parts of the financial sector such as money market funds or special entities.

Regarding the regulation of commodity markets, one of the priorities of the Presidency of the G20, Paris could not succeed in setting limits on positions that investors can hold.

The statement calls for implementation by the end of 2012 recommendations of IOSCO, the umbrella organization for national supervisors of markets, derivative markets of raw materials that do not provide for such limits.

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.

Power focus on health is a major strategic focus for large food manufacturers, but their ambitions are hampered by regulations become more stringent and consumers more wary of offering is often expensive, analysts said.

The major industry players such as Danone, Nestle and Unilever should nevertheless continue to invest in these foods which the operating margin is much higher than ordinary food, they say.

The taxation of the "junk food" makes this strategy even more relevant.Denmark has introduced a tax on products that contain saturated fats and France wants to introduce a tax on sugary drinks.

The global market for "functional foods", expected to provide a benefit to consumers with diabetes or obesity, is estimated at 150 billion.

"The food chain can no longer ignore the trend nutrionnellement correct.This is an important issue given the aging population and increased diseases such as diabetes in developed countries, "said Isabelle Senande, director of studies at Xerfi.

But, she adds, "given the regulatory, industry think twice before launching."

One analyst, who requested anonymity, believes that for his position "is a condition of survival, not a niche market."But, he adds, "industry groups are becoming more cautious as inflation promises led to a tightening of regulations."

90% OF CASES ACCEPTED

The bifidus yoghurt, dairy products fortified with calcium and omega 3, or branded foods "low fat", "no sugar added" or "high fiber" are subject to strict control of the European Food Safety Authority (EFSA), which ensures that the benefits put forward by the industry are justified scientifically.

Danone, which boasts of wanting to "bring health through nutrition," had experienced a crushing defeat in 2009 yoghurt Essensis that would "feed the skin from within."For its part, Nestlé has had a few days ago to withdraw his drink Nesfluid after only one year of marketing.

The Danone Actimel can show that it "strengthens the body" and that Activia "helps regulate transit in 15 days". The European regulator has however endorsed Danacol "reduces cholesterol" or Densia and Petit Gervais "that help maintain bone density."

At the National Association of food industries, Cécile Rauzy, project quality, nutrition, regrets that the demands of the EFSA is based on criteria "that are not necessarily the field of nutrition but to the pharmacy," the that could "slow the nutrition research."

Of the 2758 claims assessed between 2008 and 2011, the EFSA has delivered 90% of negative opinions.In particular, it rejected all those on fiber because, judging that their beneficial effects on intestinal transit had not been demonstrated.

The EU regulation on consumer information, passed last week and will be published by the end of 2011, require nutrition labeling for all companies.

"This is a major change because of the 10,000 enterprises in the French food industry, 95% are SMEs, many of which have never been labeling or nutritional analysis," said Cecile Rauzy.

BYPASS STRATEGY

Also in 2012, all health claims must be submitted to the French health authorities and the EFSA opinion which must be approved by the European Commission before being published on a register of authorized health claims. Only after the company can rely on it.

For Cecilia Rauzy, this procedure could lead very long "all small businesses, as well as large groups, to question a reorientation of their research."In fact, few major innovations have recently arrived on the shelves of distributors, agribusiness around obstacles by offering natural products with no artificial additives or colorants.

Francis Priest, an analyst at CM-CIC Securities, believes however that "the consumer is willing to pay more for food really good for his health in mature as in the emerging".

With margins of 13% to 18% which gives it a medical food, against 12% for an ordinary product, a company completely marginalizes the impact of the rising cost of raw materials, says the analyst.

In order to develop this market, industry players segments of business or carry out acquisitions.

Thus, Danone has created a division "Medical Nutrition." Nestle it launched last year a division specializing in health encompasses both activities in the nutrition of infants and sick and Jenny Craig, its subsidiary concurrent Weight Watchers. Without complex, the Swiss group has offered in the wake of frozen pizza, Kraft Foods for $ 3.7 billion.

At the same time, 51% stake in Yoplait were acquired for 1.2 billion euros by the American General Mills, while PepsiCo has offered the Russian group of dairy and fruit juice Wimm-Bill -Dann to 4.1 billion euros.

François Fillon has aroused the wrath of unions by proposing to move towards a common retirement age between the two countries, without elaborating. But the French and German are not based on the same criteria.

The German model inspires François Fillon. In a speech on the "convergence" tax, the prime minister even tried to bring the debate in the field of pensions. But considering that it was necessary to "move towards a common retirement age" with the neighbor across the Rhine, it has sparked an outcry, just months after the entry into force of reform swept-fought.Since then, unions, employers' policies and comment on his remarks, not always understand what the Prime Minister referred.

If François Fillon spoke of the legal age …

His little phrase is especially feared the unions and the opposition a further decline in the minimum legal age of retirement, ie the age at which an insured can collect his pension. And it has nothing to do with the threshold of 65 or 67 years in force in Germany.It is "easy to talk about such retirement to 67 years in Germany and to face the French 60 years, omitting the one hand, remember that this is for Germany the retirement age full-rate and for France the legal age of cessation of activity, "lamented last year already economist Julia Cage, in a study of the Jean Jaures.

For the first, from 60 to 62 years by 2018 with the last pension reform, is the legal age of retirement. But for a full pension, you also claim a number of years of contributions, 40 and 3 months now. If it did not, it undergoes a discount at least 65 years of waiting-line gradually lengthened to 67 years in 2023 – the legal age which guarantees the full rate, regardless of the contribution period.The French system is indeed one of the few to impose a double bind, age and minimum insurance.

In Germany, for against, it is primarily the first which is taken into account. Employees receive their full pension at age 65 on the sole condition of having contributed five years. From 2012, this threshold will be gradually decreased by one, then two months per year to reach 67 in 2029, according to the reform adopted in 2007.

If he spoke of the age at full rate …

And so Francois Fillon was actually referring to a convergence of ages starting at the full rate, then the situations in France and Germany do not differ that much. In Germany, it will reach 67 years that by 2028. In France, it will be 67 years from 1 January 2023, for the generations born after 1956.The difference is that the French will have all their quarters from before, while the Germans, with some exceptions, can not do with discount.

The German decision to delay the age of two years starting at the full rate is also one reason: the German population is aging while the birthrate falls. The fertility rate is only 1.3 children per woman, against 2 in France, where the birthrate is one of the most dynamic in Europe. The passage of 67 years accompanied by an appeal also more massive premium pension and a decrease in the level of pensions. Between 2007 and 2009, the poverty rate in over 65 rose from 10.5 to 12.1%.

In Germany, the decline in the age of retirement has therefore not been smooth.Very hostile to reform, the unions pointed out that in a crisis, extend the service period is most likely to create unemployment. Especially since the "seniors" are often left behind when the job market is scarce. In 2009, their participation rate was only 56.2% across the Rhine. In France it was less than 39%.

The Greek finance minister ruled out Saturday the event of imminent bankruptcy of public accounts.

"The commentary and analysis about an imminent default or bankruptcy of Greece are not only ridiculous but irresponsible," said Evangelos Venizelos said in a statement.

"All weekend, Greece (…) is the subject of organized attacks by speculators on international markets," he lamented, ensuring also that the cancellation of the visit of Prime Minister George Papandreou United States did not meet any economic emergency.

The head of government, which was scheduled to visit the headquarters of the United Nations and the International Monetary Fund, made a stopover in London when he decided to turn back after a meeting with his finance minister.

"The prime minister felt he should not miss. He wanted to ensure that all commitments would be required of Greece," said Reuters spokesman for the government.

Airbus, a subsidiary of European aerospace and defense group EADS, announced Friday the signing of a contract with Lao Airlines to sell two single-aisle A320.

The two aircraft will be powered by CFM56 engines produced by CFM International, a joint venture between General Electric and Safran.

The airline, a new Airbus customer, has to operate the device including Bangkok and Singapore from Vientiane, the Laotian capital.

Airbus has garnered 922 gross orders (785 net) in the first seven months of the year and delivered 298 aircraft, well ahead of Boeing, including through the avalanche of contracts garnered at Paris Air Show in June.

Around 11:25, the EADS share price fell by 1.05% to 21.165 euros, while the CAC 40 index yielded 0.64% at the same time.The title earns 21% since the beginning of the year.

The trade deficit of France was greatly reduced in June to 5.598 billion euros, after 6.415 billion (revised) in May, according to data CVS / CJO published Friday by Customs.

Nine economists surveyed by Reuters on average expected a deficit of 6.5 billion euros, with estimates ranging from -5.0 to-7, 5 billion.

The deficit for May was announced in early July to 7.42 billion euros.

The balance accumulated since 1 January amounted to EUR -37595000000, -24817000000 against the first six months of last year.

Exports FOB data CVS / CJO came out to 34.575 billion euros against 34.583 billion in June in May.

Imports fell to 40.173 billion euros from 40.998 billion in May, explained that Customs include a decline in imports of energy products and transport equipment.

In June, France sold its 27 Airbus reported 2.036 million euros against 21 in May to 1.334 million.

Wall Street opened Monday's session down as investors worried about the stalled negotiations on the U.S. budget, a few days of the date by which Washington could face a default situation.

The elected Democrats and Republicans in Congress have failed to agree on a compromise and decided to work separately on separate projects.

A few minutes after the start of trading, the Dow Jones yielded 0.84% ​​to 12,574.56 points, the Standard & Poor's 500 index 0.84% ​​to 1333.72 points and the Nasdaq Composite 0.87% to 2834.04 points.

On the values ​​front, the title Kimberly-Clark fell by 0.4%.The manufacturer of tissue paper announced that its earnings per share for the year could end up in the bottom of the expected range.

Research In Motion lost 1.66% after its comprehensive cost optimization program, which includes 2,000 job cuts.

The title London Stock Exchange (LSE) was sharply higher in early trade Thursday on the London Stock Exchange after the operator of the latter was canceled at the last minute his proposed merger of $ 3.5 billion with TMX Group.

Around 7:35 GMT, the LSE share jumped from 5.02% to 10.04 pounds, investors felt that the group without TMX, is likely to become prey in the current phase of industry consolidation of stock exchange operators.

The LSE and TMX, the operator of the Toronto Stock Exchange, announced Wednesday the cancellation of their planned merger, which was initiated in February.

In short news broadcast one day before the general meetings were to rule on their merger, both groups said they had realized that the shareholders of TMX would not give them the required majority of two thirds.

Analysts point out that Nasdaq OMX, which has already tried twice to get your hands on the LSE, is the candidate most likely to buy the operator of the London Stock Exchange.