Archive for March, 2010
On the occasion of a debate in Poland, before an audience of government officials and financiers, the Director General of the International Monetary Fund (IMF), Dominique Strauss-Kahn, once is not usually stigmatized the effects of crisis on the cohesiveness of the euro area. Among them, weak institutions with regard to non-compliance with the Stability Pact by the European countries.
"The stability pact is a pact that states must respect and when they have not done what has happened? Nothing, "said former Finance Minister. He added: "The truth is that this crisis shows that when the weather is clement, the existing institutions work well enough. But when a storm occurs, such as the global financial crisis, the weaknesses of these institutions is clear. "
The story of "carrots and big sticks"
To ensure greater coordination of economic policies, Dominique Strauss-Kahn chooses metaphors. "If we really want that European policies are implemented, we have carrots and big sticks. If this does not work, says he. We never saw the stick that would really forced the states to do what they should do and to respect their commitments.
"The euro zone should do the housework" (former Latvian president)
Also present on the occasion of this debate, Vaira Vike-Freiberga, former President of Latvia, went even further cash advance no faxing. "I think the euro area has some cleaning to do at home. This is the priority. Everyone should have the same discipline.It seems that the sufficiency of which we have seen from the example of France and Germany, as regards the deficit, is also part of the problem.
Former Latvian President and deeply regrets that the member countries of the eurozone use the crisis to push the Greek expansion into Eastern Europe. "Straight talk: Member States of the euro area have not met their own rules. If they really respected the rules of the game, they would not be in the mess they are now, "she said. Latvia has set a target of 2014 to adopt the euro.Last year, gross domestic product in Latvia fell by 18%, the sharpest contraction recorded among the 27 members of the European Union.
Poland, for which the IMF p?rvu GDP growth of about 2.75% in 2010 and 3.25% in 2011, received one of the largest loan ever granted by the IMF, a line Credit called "modular" of 15.3 billion euros on which it can draw at any moment. Romania, where Dominique Strauss-Kahn has to go on Tuesday for his part received to date of 9.3 billion euro loan of 12.9 billion made in May 2009.
A string football concocted by the Football League itself. This was promised on Monday Frederic Thiriez, its president, recalling, at a symposium on the pay-TV hosted by the High Council of Audiovisual (CSA) that "there was in France, 13 million people who were very interested in football. While TNT is paying in check, such an initiative could help to raise. And to clarify that "this does not mean that this channel will have exclusives on the championship L1. A conclusion that left doubts leaders of Canal + and Orange, Bertrand Meheut and Xavier Couture, who put on the table two years ago, 600 million to share its exclusive.
During the meeting between key players in the pay television several lines of force have emerged: beginning with the dedication of the largest operators in the sector to the concept of exclusivity.For Bertrand Meheut, the latter is the best way to fight against the "competition combined free television totaling 80% of the audience and for ISPs (Internet Service Provider Internet editor's note)" whose bids have been lower market share of Canal + to 47%. Moreover Bertrand Meheut recalled that his group distributed 240 channels including 50 exclusive, paid 250 million euros for publishers, 80 million euros in marketing and 200 million in recruitment costs "while" most operators telecommunications do not pay channels they broadcast on a non-exclusive "fast cash now.
For its part, Xavier Couture boss content at Orange, said that on pay-DTT "partnerships can be envisaged," including with Canal +. We intend to integrate the future of pay channels in our bouquet.However, he warned the market that the premium for exclusivity does not become a premium of eviction.
Later editors, all denounced the plight of pay channels. Thomas Valentin, vice chairman of the board of M6 has not hesitated to speak of "red alert" as regarding the TNT broadcast on pay cable and satellite. Laurent Solly, president of TF1 Digital, denounced "a time of crisis" as much publicity to the crisis that the stagnation of certain methods of distribution such as cable or satellite to the difficulty of the TNT charge.
Given all these facts, the president of CSA, Michel Boyon, promised that the regulator would give its position on DTT pay within three weeks.
After the affair in 2008 Jerome Kerviel, Societe Generale will she once again in turmoil? A dispute is ongoing between TCW, the U.S. subsidiary to 100% of the bank specializing in asset management, bond, and his former chief investment officer, Jeffrey Gundlach, fired for "theft, dishonesty and conspiracy, December 4 2009. "This case is completely different from the Kerviel affair," explains Jacques Ripoll, director of asset management business and services to investors in Societe Generale.
Jeffrey Gundlach, former chief investment officer at Trust Company of the West (TCW), claiming 1.25 billion dollars (about 940 million euros) to the 100% subsidiary of Soci?t? G?n?rale, it is stated in the document Reference Societe Generale on page 204.This corresponds to 1.4 times the net profit recorded in 2009 – or 678 million euros – the bank chaired by Fr?d?ric Oudea! "This amount is totally surreal, the goal is to impress," said Jacques Ripoll. "Do you realize, this is equivalent to 30 pay by Jeffrey Gundlach. Over the past five years, Jeffrey Gundlach won $ 134 million and 40 million for 2009 alone.
"A very marginal impact on Societe Generale"
It all started last December 4 when TCW, which manages $ 115 billion in assets, bought one of its competitors, MetWest. But it is his manager, Tad Rivella, which takes the place of Jeffrey Gundlach, dismissed. A transition that is grinding his teeth. And that degenerates in litigation before the courts.
Last January, WCA filed a complaint against Jeffrey Gundlach to whom she seeks 200 million dollars in damages. A month later, the American manager responds with a cons-complaint in which he stated that TCW would not honor a verbal agreement on his employment contract, his salary and that of his collaborators. For Societe Generale, there is no question of compromise. "Today, more than in the past, we no longer want to be taken hostage by managers or traders who, by their deviant behavior, put their interests before those of the group. Frederick Oud?a has made his war-horse, "said Jacques Ripoll.
After a difficult 2009, Societe Generale was slow to emerge from the crisis. "The case Jeffrey Gundlach have a very marginal impact on the accounts of Soci?t? G?n?rale and its shareholders.In the long term, our ethical and responsible decision (to have dismissed Jeffrey Gundlach, Ed) will be very positive for our shareholders. " "The worst is behind us," concludes Jacques Ripoll.
TCW: an IPO, no surrender
In a context where Societe Generale seeks to distance himself with the business of asset management, this case does not fall more, especially since the bank is considering introducing its subsidiary American Stock Exchange. "The IPO of TCW is not on the agenda today. We will consider that once the full potential of TCW implemented. In this regard a doubling of assets under management is a worthy goal for our team. In the two years ahead, our goal is clearly to help TCW to develop. Moreover, the IPO of TCW does not mean we want to cede control.
The bank hopes to delay an end to this matter before scheduling the operation, which could be followed by another IPO: that of Amund. Last December, Soci?t? G?n?rale merged most of its activities in the sector with those of Cr?dit Agricole to create Amund, the number three European asset management after Allianz and AXA, and prompted to enter the stock market " within five years. " An operation that TCW has been kept out, only 20% of capital has been brought to the joint venture.
Between 700 million and 1 billion of additional losses
At a conference with investors organized by Morgan Stanley, Frederick Oud?a, President and CEO of Societe Generale, confirmed Wednesday, according to Les Echos, the bank may suffer in 2010, additional losses of 700 million to 1 billion euros related to its portfolio of toxic assets. This portfolio contained at December 31, 2009 to 35.5 billion euros of risk weighted assets.
In addition to his 2009 results, published last January, Societe Generale had announced that its portfolio of illiquid assets, whose value reached 37 billion euros at end December 2009, generated a net loss of 2.8 billion over the year, including $ 1 billion in the fourth quarter alone.
While leaders of the European Union meet in Brussels on Thursday and an extraordinary summit of Euro zone centered on Greece is explained, Portugal came unintentionally adding fuel to the fire uncertainties Helleno – European.
It was enough that the rating agency Fitch worse on Wednesday, the credit rating of Portugal's long-term "AA" to "AA-" for markets from Paris to Wall Street, a time switch in the red before to rebalance.
The CAC 40 eventually limit its losses, closing at equilibrium at 3950 points (-0.07%). He stumbled in the late morning, to -0.55%, and touched the lowest, the 3900 points, before rising over the afternoon.Towards 16h10, he lost more than 0.36% in 3938, 30 points in thin trading volume of 2.210 billion euros.
At the NYSE, disturbed by the creditworthiness of countries in the Eurozone, the Dow Jones lost 0.25% in session and the NASDAQ 0.51%.
The European markets are rebalanced
In London, the Footsie closed up 0.07%, while in Frankfurt the Dax took 0.36% to 6039 points. In Germany, the Ifo economic institute, has published an index of business climate better than expected.Portuguese Stock Index PSI 20 lost 1.77% on Wednesday at midday cheap payday advance .
In the wake of the Dow Jones lined up Tuesday night meeting of a 9th consecutive increase, gaining 0.95% at 10,890 points, the European benchmark indices were, however, these days very well oriented, including through the adoption of the reform U.S. health and the publication on Tuesday, a U.S. leading indicator of housing sales in the former less bad than expected.
But the downgrading of Portugal, followed by two disappointing U.S. indicators have weighed on the markets: the durable goods orders rose in February, 0.5%, while analysts expected 0.6%.But it is the new home sales in the United States who have cruelly disappointed: they fell in February to their lowest level since 1963.
Meanwhile, a few hours of Thursday's European Council, France and Germany are trying to tune their violins. European aid could be associated with the International Monetary Fund, to support Greece.
Meanwhile, the degradation of Portugal by Fitch has been a blow to the single currency fell more than 1% this afternoon against the greenback, to 1.3356 euro to 1 dollar. This is the first time since May 2009 that the euro develops below 1.34 against the dollar.
The letters are left on Monday evening. Reportedly, the Health Minister Roselyne Bachelot has finalized negotiations there nearly three months with pharmaceutical companies. To date, the Government had decided to terminate 50 of the 94 million doses of vaccine against influenza A previously ordered.
Doses reserved – totaling approximately 700 million euros – in June and July 2009, at a time when the World Health recommended to the States two injections per person. A requirement under attack in November 2009. The European Agency for the Evaluation of Medicinal Products (EMEA) was then estimated that injection was sufficient. This change of foot forced the French government to reconsider its brutally volume orders. Last January, Roselyne Bachelot announced on TF1, the government would not pay the "50 million doses not delivered."A cold shower for the three laboratories involved: GSK, Sanofi Pasteur, Novartis.
Heard today in the Senate by the parliamentary commission of inquiry charged with shedding light on government management of the epidemic of influenza A, the Minister of Health outlining the results of negotiations.
The State should pay the final 48 million euro to pharmaceutical companies instead of 358 million euros initially planned for 50 million doses canceled. Conducted by the Institution of preparation and response to health emergencies (Eprus), negotiations were conducted by laboratory laboratory. "It was man enough, but correct," says one observer of the case. Logic in a big business. Especially that similar talks were held in many countries.In Europe, France and Great Britain are the last to not have fully resolved the issue.
Allowances equal to 16% of the amount set aside
The government immediately set the overall ceiling of compensation it was willing to pay 50 million euros payday loan no faxing . Given the low number of relevant doses (50 000), Baxter has escaped cancellation of orders. But with the three other laboratories, the negotiations were tough. Driven to the wall they demanded equal treatment. So that, finally, the Eprus set the maximum amount of compensation to 16% of the canceled order for each of the labs.
The Eprus and Swiss drugmaker Novartis have been finally agreed Monday. Novartis will receive 10.5 million euros, or about 16% of 65 million at stakeBoth parties waive any recourse to justice.
With GlaxoSmithKline (GSK), failing agreement, the government decided to unilaterally fix the compensation to 36 million euros. But the pill is hard to swallow for the British lab, which has collected 224 million euros if the services Roselyne Bachelot had not canceled the order of 32 million doses. GSK should take note of the proposal, but consider formally accept it.
Finally, negotiations have been particularly harsh with Sanofi-Pasteur. The world leader in vaccines against influenza had himself proposed to cancel the order of 9 million doses of an original total of 28 million.But the subsidiary of Sanofi-Aventis has found less pleasant to have to cancel another 2 million doses.
Unless last-minute deal, the government should send a notification on grounds similar to those of Novartis and GSK, is a payment of 2 million euros over the initial 12.5. Monday evening, the French lab was still hesitating to sign the proposed transaction or initiate an action.
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After Paris, Transavia settled in Nantes and Lyon. The low cost airline, owned 60% of Air France and 40% of Transavia Holland, continues its expansion in France, with a very particular economic model: it divides into effect between direct selling and selling lots of tickets Included in the package tour operators. Thus, 55% of seats are sold online, mostly on its website, and 45% by tour operators.
Weekend in the red at the NYSE. After an opening in the calm (+0.2%), the Dow Jones sank into the red (-0.36%) before closing on a decline of 0.38%. The Nasdaq also finished down 0.78%.
"The participants lack of enthusiasm, given the lack of news on the front of businesses and lack of economic indicator program," noted analysts at the financial website Briefing.com. The meeting should be led mainly by technical factors, with the simultaneous expiration of several types of options.
Prudent investors do not seem affected by the fears, renewed, Europe, for Greece.
The euro, penalized by these uncertainties Greek, lost 0.78% to 1.3504 dollar.The euro, which dropped below the 1.36 dollar remains under pressure and moving erratically for several weeks.
Palm collapses
The action of the mobile phone manufacturer Palm, is buffeted this Friday. The fall of 18.23% to 4.63 dollars. Investors punish new quarterly losses and forecast very pessimistic. Over the period from December to January, the manufacturer of Pre lost 22 million dollars, twice the previous quarter and more than expected by analysts.The revenue (almost $ 350 million) is better than expected, but because of poor consumer sales of its devices by the operators, it is expected to "less than" 150 million dollars, twice less previously anticipated fast cash without a hassle .
The largest bookseller in the United States, Barnes & Noble (-1.14% to 22.64 dollars) has announced that it would change the CEO. This is the current president of the group's website, William Lynch, who will replace Steve Riggio at the head of the company. The future leader has helped launch the electronic bookstore Barnes & Noble and he oversaw the launch of an electronic book reader called the Nook, a product designed to compete with the readers of e-books competitors, such as the Kindle or the 'iPad.
FedEx (-2.06% to 90.76 dollars) posted net earnings of $ 239 million, up 146% in the third quarter. Based on the number of shares, the result stood at 76 cents. The logistics group has exceeded its own targets, which ranged from 50 to 70 cents, and estimates of analysts, who on average expected a figure of 72 cents. The operating profit jumped 129% to 416 million dollars for an operating margin of 4.8% against 2.2% a year ago.
Aetna argues the document. The life insurer believes that its earnings per share in the first quarter will exceed the consensus Wall Street (66 cents) to 2.55 dollars, or $ 2.65. The action takes 3.67% to 34.45 dollars.
The U.S. aircraft manufacturer Boeing has announced that it would expedite the production of its 777 aircraft and 747 to meet the growing demand from customers. Sign that the aerospace market is recovering.The securities are 0.52% to 71.25 dollars after opening up over 2%.
The major French industrial firms they are partly responsible for the loss of competitiveness of French PMI meet their German competitors? The issue will arise next week at the show in Villepinte Industry.
"The major buyers French do not play the card of their industrial sector, which blocks the investment process, denouncing Vincent Schramm, CEO of Union business of technology and production (Symop). The organization of work in production chain, inducing greater solidarity between large corporations and their suppliers is a major theme of the General Industry. "To minimize production costs, the major buyers struggling to lower their purchase price and to encourage the relocation.They do not take into account the costs, like transportation, non-quality costs of monitoring … "adds Didier Bouvet, Director of Industry area in Bucci, a manufacturer of industrial robots. Instead, the big German companies to ensure their subcontractors markets for several years, re-creating a virtuous circle of local industrial production.
"In France, a supplier may lose its biggest customer overnight, without notice, regardless of financial risk taking. How an employer can invest calmly in such conditions without exposure to medium term? "Asks Didier Bouvet. However, the automation is a key to competitiveness that can withstand competition from Asia payday loan lenders . "The owners of PMI are often reluctant to robotize to preserve employment.In the long term it's a miscalculation, "said Vincent Schramm.
Robots: the late French
A study conducted for the Directorate General of competitiveness, industry and services (DGCIS) and Symop highlights the backwardness of French companies in the field of robotics. They are six times less robotic than their German and two to three times less than the Italian.
Park French industrial robots is between 17 and 18 years on average as against 10 in Germany, which further increases the competitiveness gap. However, since 1990 the price of a robot has fallen from 80% to 50 000 in average (130 000 taking into account all installation costs). In addition, 63% of robots are used by the principals of the automobile. Only one third of the 34 500 robots used in France are by companies with fewer than 1 000 employees.
Moreover, "the French PMI can still make many gains in productivity, argues Didier Bouvet. For example, the establishment of a production line and not through workshops can achieve significant gains. "Payroll taxes, nearly two times higher in France than in Germany (42.2% against 23 , 20%) are far from the only explanation for differences in industrial performance between the two countries.
The struggle between the United States and China on the currency market is far from over. In a letter to U.S. Treasury Secretary Tim Geithner, and Commerce Secretary Gary Locke, members of Congress asking that the yuan is listed currencies handled in the annual report issued by the Obama administration month next.
"The impact of the manipulation of the Chinese currency on the U.S. economy can not continue," say it does in the letter, questioning the words of Chinese Premier cheapest personal loan rates . They say the Chinese, while leaving their money at low levels, forcing other countries to reassess their own."U.S. exports can not compete with the social dumping of the Chinese about the American producers, they are disadvantaged compared to subsidized Chinese imports.
China keeps its currency stable against the dollar since mid-2008, after a period of slow appreciation.
If they were not to be heard, members of Congress are considering an appeal to the World Trade Organization.
Countries in the euro zone interlock gear. Unless dramatic turn of events, finance ministers Monday and Tuesday will give the final green light to a mechanism of financial support to Greece which is "already ready and mobilized if necessary," we learned from sources consistent with the European Commission.
This device – that Brussels refuses to call rescue plan – based on guarantees or loans which are bilateral granted by banks and institutions in different member states, though Greece requested. No precise figures are not advanced. But estimates are around 20 billion euros, an amount comparable to the maturities that Athens will soon meet.
Olli Rehn, Commissioner for Economic and Monetary Affairs, has placed the issue in an interview with Le Figaro and four European newspapers."If Greece fails, the credibility of the entire European Union that will be permanently damaged, says he. The euro is not just a monetary arrangement. The euro falls first to the heart of European political project. "
Providing Athens to appeal to the IMF
The Commission can initiate the signing of the EU as a bailout. But in the new mechanism, it would pose the "stringent conditions" required to Greece in return for aid proposed by the capitals, the sources said. It is also the key to a firm commitment from Germany, alongside France in particular. Brussels is considered as a given, despite public misgivings expressed in Berlin.The Commission will also continue its work "tight fiscal monitoring, launched last month with the help of experts from the European Central Bank and the International Monetary Fund.
This new European action, coupled with drastic budget cuts mandated by George Papandreou, is designed primarily to deter attacks against the euro. The single currency is experiencing a respite from Athens has strengthened its finances. But the timing Greek refinancing foreshadowed further shocks in April or May The mechanism also aims to provide Athens to use IMF resources, politically humiliating scenario considered by Paris and Berlin in particular.
Creating a European Monetary Fund
According to Olli Rehn, the use of Greek is the priority of a series of "key decisions" that the 16 countries in the euro area and the 27 EU discuss early next week in Brussels.This is the first floor of a rigorous device which comprises two others. First, strengthening the collective monitoring of budget deficits, desired by the President of the Eurogroup Jean-Claude Juncker. Then, in the longer term, creating a "European Monetary Fund. The German Finance Minister Wolfgang Sch?uble, critical voices among the 16, provided support yesterday noticed this missing piece of the arsenal in Europe. But Berlin attaching strict conditions of financial discipline.
The Commissioner echoed him. "It's a critical lesson of the crisis, says he. We have put in place a rigorous and systematic monitoring of budgets throughout the euro area, including the medium term. " Olli Rehn is concerned about both the widening deficits and "national forecasts rough times" that are sent to Brussels."In France, the United Kingdom and Spain, he said, the debt burden grows heavy at a speed which requires that (these three countries) meet no later than 2011 and possibly as early as this years budget discipline accepted in common. "
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