Business & Financial News

General Motors announced Wednesday consider selling its manufacturing plant in Strasbourg gearboxes and be looking for potential investors.

The U.S. automaker, which has taken an investment bank, said in a statement it had committed a "strategic review" concerning both the production as engineering and development of this plant.

He was willing to explore the internal and external solutions to find "viable alternatives and potential solutions to secure the future of the site".

GM intends to favor buyers who will continue the work site with the current force is about 1,000 people.

Last year, the plant produced 280,000 six-speed automatics, mainly for customers outside of Europe. 

GM announced in February an alliance with French carmaker PSA Peugeot Citroen.

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%.

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.

Executive Director International Monetary Fund (IMF) Christine Lagarde said Wednesday that member countries pledged to provide a total of at least $ 316 billion of priesthood ts to the fund to hold the debt crisis in the euro area.

"We have promises for more than $ 316 billion and I have more in the bag," said Lagarde.

The IMF said in January will increase its financial resources of $ 600 billion to guard against any spillover of the crisis of European debt. But obtaining firm commitments at meetings of the IMF, World Bank and G20 at the end of this week in Washington, might be difficult.

The United States including that they would not participate in these efforts. Canada has estimated that Europe had sufficient funds. Other countries, including China, Brazil and Russia expressed readiness to contribute to the financial effort but if they get in return more of the voting rights in IMF.

Christine Lagarde said last week that it was possible that the IMF has required fewer resources than he thought a few months ago, the economic and financial risks are being mitigated ; s. These resources could be increased from 400 to 500 billion dollars, an amount less than $ 600 billion initially cited, told Reuters several G20 leaders.

The Defense Ministry said Tuesday it has given to the supplier Thales the first tranche, amounting to 263 million euros, an equipment contract of the French army in next-generation tactical radios from 2018.

The radios of the "Contact" will allow simultaneous transmission and highly secure voice and data for the infantry and armor, the ministry said in a statement.

In a second step, these positions also equip combat aircraft, intelligence and transportation and vessels.

The first installment, devoted to development work, will be notified at Thales Communications in the coming days, the ministry added. 

The contract, which is part of Scorpio French military modernization, especially equip future multi-role armored vehicles (VMBR) called to replace the current armored vehicles ahead (VAB).

According to Le Figaro, the contract of three to four billion euros in total over a period of 22 years had been approved by the Ministry of Defence, but that's the Economy ' objected to the notification of an important contract in its presidential campaign, prompting Prime Minister Francois Fillon to rule in favor of the project.

The Defense Ministry was not immediately available to comment on this point.

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. "

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 .

The activity of the French manufacturing sector has improved slightly in February, according to final results of the survey from Markit purchasing managers published Thursday.

The PMI rose to 50.0 last month, slightly below the first estimate (flash) published on February 22. He had registered at 48.5 in January.

The index found the 50, which separates growth from contraction, after six months in negative territory.

The index of manufacturing production also increased, to 50.8 against 48.8 in January and 51.4 in the first estimate.

That of new orders increased to 48.2 against 45.7 a month earlier (47.9 in flash).

"After having contracted slightly over the last six months, the French manufacturing sector appears to be stabilizing in February, showing an increase in production very marginal and the volume of new export orders increased moderately, "said Jack Kennedy, economist at Markit. 

"The weak demand persists, however, the domestic market while the purchasing price inflation is increasing and reached a high of eight months," he nuance.

"The resurgence of price pressures in a context of weak demand puts businesses in a difficult situation, any attempt to protect margins could result in a further decline in new orders."

Bouygues announced Wednesday the signing of the contract for the financing, design, construction, service and maintenance for 27 years of the future courthouse in the city of Paris.

The construction group will design and construction of the building for a total of 575 million euros, he said in a statement.

Its subsidiary Exprimm also ensure the operation and maintenance of the building for $ 12.8 million per year.

The future courthouse in Paris, designed by architect Renzo Piano, will gather in the ZAC des Batignolles the high court, the police court and the officer of the Crown, and all courts Instances of districts of Paris.

The work, which should start in summer 2013, will last 3 ½ years, Bouygues said.