Archive for February, 2010
LE FIGARO. – ArcelorMittal escapes shortly after the first loss in its history. Are you satisfied with this performance?
Lakshmi Mittal. – No, although, given the circumstances, we are very far out. We achieved all our objectives of lowering costs, reducing debt, adjusting our production, and have negotiated with the various unions in the world … while 2009 was one of the most difficult years for thirty years the capitalist world. The crisis is not over. The recovery will be slow and gradual. But we managed to overcome the crisis successfully.
Using your production capacity from 50% in late 2008, to 70%. Do you anticipate this year?
Our production planning is based on the request of our customers. In 2009, only 10 of its 25 blast furnaces were in production. Now, twenty are active.There remain four or five who are temporarily stopped and restarted when demand recovers. At the end of 2010, our plants should operate at 85% of their capacity. The automotive market is expected to improve slightly over fourth quarter 2009 in Europe and strong growth in emerging countries. We organize days of innovation with our major customers. We present our new products, our development programs. They are still waiting for better products, steel both stronger and lighter, and more services.
How do you make 5 billion cost-cutting announced in 2012?
This total includes 5 billion of the savings already achieved (2.7 billion Editor's note). We have implemented many measures to improve our productivity.ArcelorMittal is a great company so we can make a "benchmark" in the group! We have implemented a continuous improvement plan which aims to save $ 30 (or 20 euros) per tonne of steel produced. There were hundreds of initiatives in this area. In 2009, we managed to save 13 euros per tonne. We still have to win 7 euros. At group level, it will represent an additional saving of 1.4 billion euros. And we can still reduce our administrative costs and expenses. This will include a specialization of production sites that could be devoted to one type of product payday advance . That does not mean that we will close …
… Or that you will continue to reduce your workforce?
The group has 35 000 employees less in 2009 than in 2008.We have plans in place starting in early retirement, voluntary severance schemes … We have nothing planned as of this year. We have just completed what was started. There is no excess production capacity in Europe. In China, yes.
You also talked about the resumption of investment.
Yes. We will resume mining projects and investment in developing countries, including Brazil. We do not expect to make further acquisitions in the steel. The cost would be higher than the expansion of existing capacity. We focus on the latter solution.
The introduction of carbon tax is a threat to your business in France?
We will be less competitive in Europe. We are in discussion with the French Government, to explain the impact of this tax on our costs.I met President Nicolas Sarkozy a few weeks ago. He says he wants a strong industry in France. We'll have to find solutions. European policy in terms of CO2 is already a burden for the European steel industry, compared to our competitors in China or India. This clearly represents an additional cost, difficult to quantify but very real. Finally, the carbon tax would be inconsistent with a strong industry. But both will have to coexist.
Chinese production of steel which starts again on the rise is a threat to your industry?
Last year, net exports of Chinese steel amounted to 10 million tonnes. This year, they should not exceed 25 million tonnes. First, because the Chinese domestic demand has picked up.Then, because Chinese steel production depends on imports of raw materials, making it less competitive for export. Finally, China mainly exported to South-Eastern Asia. Nevertheless, we are always attentive. If China's exports, it can make European prices down, it already happened before 2008. There is always a risk.
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Nearly eight billion dollars. Or nearly 6 billion euros. In one week, traders and hedge-funds (hedge funds seeking higher returns, in particular through the options) were initiated some 40,000 contracts against the euro, according to the online edition of the Financial Times on Monday evening. Investors have decided to take so-called short positions on the euro, that is to say, bet down on the currency. In total, these investments "shorts" are a massive $ 7.6 billion, according to the website of the newspaper, stating that this is the first time such a sum is committed to bet on falling the single European currency.
The reason for this change of strategy: the loss of confidence in the euro, which no longer seems able to resist the contagion of the Greek debt on other European countries.Greece is central to the nervousness of financial markets, both on the Old Continent as the other major stock exchanges worldwide. And worries extend to serious budget situations Spanish and Portuguese.
Yesterday, Monday, Elena Salgado, Minister of Finance of Spain, and Jos? Manuel Campa, his deputy, flew to London to allay fears: They reiterated their goal of reducing by 3% budget deficit by 2013. It reached 11.4% of GDP in 2009.
The euro has won almost 10% in two months
On Tuesday, around 8:30 am, the euro regained some color since last night, going above 1.37 euros at 1.3728 dollar guaranteed approval cash loans . On Monday, the European single currency remained broadly under that threshold.There is still a week against the euro was trading more than 1.4 dollar.
The d?grindolage actually started last December. The euro was trading at nearly even $ 1.51. It is almost 10% more than two months later. Just this last month of 2009, the euro has won nearly 5%, losing 30 days that the currency had taken three months to win.
By touching a low at 1.3585 euros February 5, the euro has regained its level in May 2009 …. and August 2007.
For some analysts, the slide is not over, and the euro could well return to the threshold of 1.25 dollars, amid U.S. growth stronger than expected.
The political spotlight
Tomorrow, Wednesday, Ben Bernake, will explain why the strategy for ending the crisis that has put in place.Any speech that would imply a monetary tightening will cause the wrath of the financial markets.
Then, next Thursday, it was the turn of Europe to be in the limelight, with the meeting of heads of state of the eurozone.
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After the sharp market downturn in Paris last weekend, with the Cac 40 lost nearly 7% in 48 hours, optimism is in order at the beginning of the week Award paris.le CAC 40 is up 0.89% to 3595 points.
On the macroeconomic front, gross domestic product (GDP) of France is expected to grow by 0.5% in first quarter 2010, according to a first estimate of the Banque de France (BdF) on Monday.
The latest forecast from the National Institute of Statistics (INSEE) published December 17, the economic recovery in France will confirm in early 2010 but will be "laborious and delicate, with a growth of around 0.3 % to 0.4% per quarter until midyear.
The government recently revised upward its growth forecast for this year, rose 0.75% to 1.4% in the revised budget.
INSEE has published Friday its first figures on French growth in the last quarter of 2009. The government forecasts a GDP drop of 2.25% over the last year.
The detailed values to follow.
It is a Mexican entrepreneur, owner of a chain of hotels in Cancun, which offers a Hublot watch at 700,000 euros. It is a couple of Singaporeans looking for a pied-?-terre in Paris, which is close to 10 million euros on the table for a 400 square meters overlooking the Seine. Or a Parisian lawyer who finally cracked in the Porsche 911 … The dreams of luxury customers are return guaranteed payday loans . After an abrupt end after the bankruptcy of Lehman Brothers followed by a year to land, rich of the planet reflected their platinum cards without false shame. The distribution in these days of record bonuses in finance in New York, London or Paris will only encourage fever after a year of dieting.
The euro fell on Thursday to its lowest level since June 22, 2009. This morning, the euro was worth 1.3827 U.S. dollar before recovering to 1.3834 dollar. The single European currency also retreated against the yen at 125.70 yen.
This drop is explained in particular by the concern of traders due to budgetary problems of many countries in the euro area. Many expect a strong intervention of Europe and even appealed to the International Monetary Fund (IMF) to help Greece to get out of a budget crisis without precedent.
Another concern is about the euro on the currency market, the case of Spain, which has poorly digested crisis including an unemployment rate of nearly 20%.Besides Dominique Strauss-Kahn, IMF head, spoke Thursday on RTL crisis "very strong in Spain and that the country had" an effort "to reduce public deficits one hour payday loan . The Spanish public debt has soared just over 60% of GDP in 2010 while in 2007 it accounted for only 36.2% of GDP.
Tuesday, Paul Krugman, Nobel Prize in Economics in 2008, believed that Spain was the main weakness in the euro area. To this the Spanish Minister of Economic Affairs, Elena Salgado, has responded Thursday by saying on the radio station La Cope: "The euro is a very strong and we continue to strengthen the currency.I see absolutely no risk for the euro area, "adding," there may be a lack of understanding about what the euro means for our economy. "
Another country in the euro area is also starting to worry, Portugal, again because of deteriorating public finances of the country. Besides the titles of Portuguese banks fell by 5 to 6% Thursday on the Lisbon Stock Exchange.
The "opinion leaders" have not yet digested the crisis. The distrust that policymakers feel about financial institutions and banking remains strong, according to the Edelman Trust Barometer 2010 *. The distance is widening not just with the general public. The confidence rating of banks has melted most of the 22 countries of the investigation by the public relations agency. In the United States, for example, has dropped 39 points in three years, falling from 68% in 2007 to 29% in 2010. It is even lower in France, 21% in 2010 (against 41% in 2007).
The technology sector has the symbol
More generally, the confidence of elite companies to progress (54% of "opinion leaders" interviewed). Except in France, where it remains at a very low level (37% this year against 36% last year). If the banking and insurance are at the bottom of the table, the technology sector is racing ahead.Nearly 80% of elites trust it globally, and 70% in France. "The elites can not forgive the banking sector's responsibility in the crisis," Journet analysis Isabelle Rahe, president of Edelman France, in presenting the study. "Beyond the economic impact, it is the lack of transparency that is punished quite heavily."
Pessimism about the lessons learned from the crisis
The opacity of the financial system is well and truly under fire from critics. For 67% of respondents in 22 countries, transparency is a major asset in building the reputation of a company to the responsible management of human resources (63%) and civic attitudes (50%)."The elite give more confidence to businesses that engage in society beyond the creation of wealth and employment," says Antoine Harary, director of StrategyOne, the subsidiary of Edelman specializes in studies and assessments Marketing and Public Relations free credit report online .
But transparency and civic engagement are not everything. As stressed in the barometer makers fear that companies will not return to their "old habits", ignoring the lessons of the crisis. They are 68% internationally and 74% in France to expect that the famous "business as usual" make a comeback after the crisis. Pessimism up to nourish the hope that the elite opinion.That's about profound changes in their working methods that companies will be judged in the future.
* The 11th edition of the Edelman Trust Barometer was conducted among 4875 opinion leaders in 22 countries. The "opinion leaders", according to the criteria of Edelman, are graduates, who earn high incomes and are closely watching the news business and politics.
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Companies that have lost or gained the confidence of French in 2009
Edelman StrategyOne France and joined the research institute OpinionWay to conduct a further study with a sample of 1,000 French.These forty companies have found French or international, citing those in which they more or less confident today than in 2008. Notably, the Post is named in both charts.
• Winners
Google: 31%
E. Leclerc: 26%
Post: 26%
EDF: 24%
France TV: 21%
• Losers
France Telecom: 36%
Societe Generale: 33%
SNCF: 32%
Post: 30%
Total: 30%
Medef to Unemployment Insurance, Union des industries and metal trades (UIMM) becomes very visible social issues. It has always been the heart of its expertise and sphere of influence, but the employers' federation was forced to the discretion, after revelations about the cash withdrawals from his former manager and his huge windfalls anti-strike . IAJ President since late 2007, Frederic Saint-Geours, 59, chief financial officer of SAP, warns against the risks of "clip the wings of the recovery", defends the need for strong industry and answered questions found on the ambitions of "Steelworkers" among employers.
LE FIGARO. – The latest unemployment figure is better. Is this a sign of lasting improvement?
Fr?d?ric SAINT-GEOURS.-feeling of our members on their activities is very varied.Capital goods or export sectors are still in great difficulty. Others are more like the automobile, with the premium snack, or remain at good levels as railway equipment. I have two concerns for the future. First, many companies have exhausted the means for maintaining the relationship with their employees, including partial unemployment. If their order book does not go back, they should ask themselves questions about their workforce. Therefore, the employment situation will not improve substantially until a few months. You have to look if it is possible to extend these devices. Second concern: in two or three months, the companies have completed their 2009 accounts, which are often degraded.If banks apply their analytical tools such classic figures, they refuse many loans – I am not talking about fund investments, but simply increasing needs for working capital resulting from a rebound in activity. The risk is to clip the wings of the recovery. We are working on this with the mediator credit, Gerard Rameix.
You have to participate in the States-General of Industry. The final report sets the goal of "restoring an industrial ambition" to France. Does it still make sense to argue at the national level?
Clearly, yes. Exports from France, this is 80% or 85% of industrial goods.However, if we had kept our market share of ten years ago in world trade, it would be 100 billion euros 'turnover' in addition to France, so perhaps hundreds of thousands of jobs, billions in tax revenue, R & D … But in France, the industry faces obstacles that are not specific to him: taxes, too focused on factors of production, education must increase training to new technologies, new businesses such as green growth, or difficulty in finding long-term financing. Now we need the conclusions of the General does not remain in the state report.
When it comes to the carbon tax, this time you prefer to speak to Europe!
Exactly.The business tax was a mistake French, it is deleted and that is not enough to put French industry at par with its rivals in terms of competitiveness – and I speak of our European rivals, not Chinese! Do not create another anomaly French with the carbon tax.
On behalf of the same desire to save France in the industry, the state interferes in the strategy of Renault and Total. Shoot there too far interventionism?
The State must play its role as guarantor, no manager. The dialogue, the contract may be more effective than law and regulation, because they give companies greater flexibility, flexibility.That is how the UIMM signed agreements on training, employment of older workers, after taking a diagnosis with the unions in the sector.
The Delegate General of the UIMM, Jean-Fran?ois Pilliard, took the head of the Social Protection Committee of the MEDEF. So, does it change the approach to the appointment pensions?
I recommend that we proceed at cross as we used to do in the UIMM: establish a working group, consult widely to build the position of business before entering the "hard" discussions. This must be done quickly, but there are already many tests. Finding a consensus will be difficult, but we must absolutely try.
Your annual convention, March 18, will focus on how employers' organizations can be useful to businesses.Three months after the start of the food industry, the MEDEF should it be seen as a veiled threat?
On the contrary! The subject is exactly one: from business needs and how to respond with a simple, cost control, and effective. Effective, that is to say, which makes a service to members (of the economy, tax, legal, social …) which allows them to best be heard locally and nationally. This suggests the most appropriate organizations. Asking these questions is not a threat, as an aid to employers throughout the world. How many times have we heard of the structural complexity employers!
Should we open the question of the employer's representative?
I can not imagine anyone not treated during the convention. I would add that the UIMM be extremely firm on the joint system: it must develop.We need stronger intermediary bodies to better address important issues, which must generate the widest possible accession. As to the joint management (Insurance Unemployment Agirc-Arco …), it must go further now that the new rules of representation reinforcing the legitimacy of unions. This requires changing the rules of governance, transparency, funding. It is possible the UIMM did in six months.
Do you agree with the criticism of the President of the MEDEF?
There is no question for us to weaken the MEDEF. Businesses need a strong employer representation and united.Our convention and the arrival of Jean-Fran?ois Pilliard as President of the Welfare Committee of MEDEF serve to strengthen it.
But when your delegate said that joining the team of Laurence Parisot does not constitute support for the renewal of its mandate, it is a sign of defiance!
Not at all. What is being done every day, Jean-Fran?ois Pilliard and me? We work. In UIMM and MEDEF. We are all employers who are negotiating delegations, which met the government. No confidence, we serve the cross. I do not say it was easy every day …
The present UIMM Does a candidate for President of the MEDEF?
We will do things in order. We will set our direction in our convention. We'll see if one candidate or another the endorsement.Otherwise, we'll see.
Where are your projects using your famous "kitty"?
Again, the idea is to use these reserves heritage as a service to businesses. What are their issues? Develop. In January alone, our system of capital development has taken investment decisions totaling 9 million euros, and these are multiplied by 4 to 10 other investors. Second issue, recruit. We will launch the next wave of our communication campaign in the spring, to show young people that may be realized in the industry. And we've released several million as part of our integration fund to help companies find skills, including among those furthest from employment. Finally last challenge, innovate.Our other endowment funds joint research projects university-industry or education programs that meet the needs of businesses.
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