Archive for September, 2010
Done. The central bank governors and heads of Supervisors entered into an agreement on new standards for solvency of banks. This device known as "Basel III" to oblige including banks increase their capital to withstand crises. What cringe French banks. "The" wise men "Basel III asking us to do in six years what we have done since the existence of BNP Paribas, said Tuesday Pébereau, Chairman of the Board of Directors of BNP Paribas there.
The core equity increased to 4.5%
The Basel Committee requires financial institutions to show a Tier 1 capital ratio (capital "tier one" is the core equity of financial institutions, Ed) of at least 4.5%, against 2% far. Mattress additional 2.5% is required.This brings the total percentage to 7%.
He meant by this formula required for French banks to raise 150 billion euros. "These measures are unreasonable, he says. They will drain the interbank market (the market where banks lend to each other, Ed) and destroy the growth that is already not very high. The controller goes in the direction he had just avoided.
Next step: the G20 South Korea
These measures could lead some banks to launch capital increase to strengthen their balance sheets.This is particularly the case of the first German bank, Deutsche Bank, which confirmed on Sunday that it would increase its capital by at least 9.8 billion euros for further increase its capital, increasing its share in settlement Postbank's capital, which it owns 29.9% of capital.
Bankers and analysts expect the new rules are applied from 2013 and have five to ten years to implement these measures and those which could also include the supervision of the leverage and Rules long-term liquidity.
At the upcoming G20 will be held on November 11 and 12 in Seoul in South Korea, the Heads of State and Government should endorse this device called "Basel III".
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"The structures of banks are not quite healthy"
Lefigaro.fr: The findings of the Wall Street Journal (*) are they worrying for banks and thus for the economy?
Philip Dessertine – These conclusions are justified. But let there be no mistake: the fastness test banks (stress testing, Ed) are not bad tools, on the contrary, they are very useful, since they can simulate the extreme risk. These are banks that have lacked transparency and have voluntarily dismissed their exposure to sovereign debt. What is the opposite of what is required by stress tests.
Why were they rejected these extreme risks?
The banks acted under pressure from the regulator and the European states. What do they want? Boosting growth. For this, they must restore confidence to investors. They believed that making public the results of stress tests, they were reassured. It is precisely the opposite happened.The stress tests are not tools of communication, but the technical tools. He was therefore imperative that states not communicate results of stress tests, but the technical means to implement to reduce their indebtedness.
What risks does this pose it?
It is now proven that countries like Greece, Spain, Portugal and Ireland will have to reschedule their debts. Therefore, this poses two problems. The first, a risk of deadweight losses on different assets for its creditors, then the European banks. The second, a liquidity risk. If Greece repay its debts later, the banks could again face a liquidity crisis. Therefore, they could no longer raise capital on financial markets.New tensions are therefore likely to appear on bank stocks.
The banks need to submit it, as suggested by Michel Barnier, European Commissioner for Financial Services, with regular stress tests?
The idea of stress testing is scheduled and coordinated sound. However, Michel Barnier takes a Franco-French. Again, stress tests are not tools of communication. It does no good to make them public. Moreover, banks are constantly subjected to stress tests. The idea is to coordinate for the entire banking system, to anticipate a possible "domino effect". More stress tests will be coordinated, structurally more they will restore investor confidence.
What do you think of the position of Christine Lagarde, Minister of Economy, on measures Basel III (**)?
It has both right and both wrong.It is true that international coordination is essential. The Americans want to cause "chaos", by regulating their finances without the help of Europe. They are wrong. However, it is also essential for European banks to implement the measures Basel III. Failure to do so would prove that we have not learned the lessons of the past. Banks must accept that to boost growth, they must now take less risk and therefore have a maximum equity. We have seen what impact on the economy of excessive risks taken have given.
Banks Have the means to double their capital in such a short time?
The 150 billion raised by Michel Pebereau (Chairman of the Board of Directors of BNP Paribas, Ed) exist on the market (***). Investors do not know what to do with their cash.If banks are afraid of not finding them, it is not the responsibility of "wise men" Basel III, which are independent bankers seeking only solidify the banking system. This simply means that the structures of banks are not as healthy as can be derived from stress tests and profitable to attract investors. To raise funds, a bank must inspire confidence. For this, the structure must be sound. From there, it can finance growth.
The Basel Committee should make public the measures this weekend. What do you expect? A showdown between Europe and the United States is it possible?
I hope he will stay on its logic and maintain its technical measures, which, again, are healthy for the economy. It is time to draw lessons from the past.If we do not, we're heading straight to disaster, because states no longer have the means to recover from a second "Lehman Brothers". A showdown between Europe and the United States is feasible, but let's not forget they have a competitive advantage over us.Just look how easily Barack Obama will find 50 billion dollars to revive the U.S. economy, while Greece only to raise 8 billion euros.
(*) According to the Wall Street Journal, dated September 7, 2010, the stress tests conducted by the European Union have downplayed the risks taken by some European financial institutions.
(**) In an interview with La Tribune, Thursday, September 9, Christine Lagarde said that Europe will not apply the Basel measures 3 "if Americans are not doing much, especially as their banks participate less than their European counterparts to finance the economy ".
(***) On BFM Radio, Thursday, September 9, Michel Pebereau said that "the wise" Basel III to French banks seek to raise in six years, we have raised since the existence of BNP Paribas (to About 150 billion euros, Ed).
What is stress testing?
The stress test (or stress tests) are to simulate economic and financial conditions worst in order to study the impact on institutions, in this case the banks, and to measure their resilience to such situations.
In July, 91 major European banks have been subjected to the stress tests. Seven have been scaled. This means they will raise funds to strengthen their financial position. By comparison, 10 of 19 U.S. banks had been tested in early 2009 the obstacle. Although she passed the test, apparently preparing Deutsche Bank, the Financial Times, to conduct a capital increase of between 8 and 9 billion to strengthen its solvency for tighter regulation of financial standards .
Strong Momentum ". This is the name of the new strategic plan for Scor, for the period 2010-2013. France's first reinsurer, and fifth worldwide, plans to increase its organic growth of around 5% per year, and considers both profitability and solvency strengthened, while creating value for its shareholders.
One of his goals is to optimize its risk profile and win a "financial security level AA", details the statement. During his previous plan (2007-2010), marking the group went from A-to A: its capital have in fact increased from 3.6 to 4.2 billion euros and its debt ratio declined of 18-11%, says the company.To recall, late August, the rating agency Fitch raised the prospect of the note A SCOR from "stable" from "positive".
Now, SCOR intends to continue its model of balanced development between the activities of life reinsurance and non-life reinsurance (that is to say everything that is not life insurance), expand its customer base and improve its relations long-term customer payday loan.
In late July, Scor said in a statement that an increase of 31% of its net profit in the second quarter to 120 million euros, an increase due to better performance of its financial investments and improved margins in reinsurance life.The French reinsurer said the second quarter also benefited from a good campaign for renewal bills maturing in late June, marked by an increase of 18%.
SCOR in the world
In Green's position in the reinsurance SCOR vie.En blue, the position of Scor in non-life reinsurance.
"Why are there two pilots in the aircraft?" Asks Michael O'Leary river in an interview with a reporter from Bloomberg Businessweek. "A pilot is enough, really!" Exclaimed the Irishman who has an answer for everything: if one driver had a heart attack, he is sounding the alarm and will be replaced by a hostess trained to land …
King of provocation
Last date in jest, this release of Michael O 'Leary is part of a long series of provocations of all kinds. In February 2009, he proposes to pay a pound toilet facilities on board. Laughter, then public outcry when users realize that not joking. Suddenly, the CEO of Ryanair launches a public consultation to find the best way to save money. Measure popular with customers: the charge for overweight passengers.Again, associations rose up before Ryanair does not publish a press release stating that the company had "no logistics to collect this" tax obesity without disrupting its unmatched timeliness "
And the list does not stop there. Only since August last, the hyperactive president has stepped up attacks with vitriol. On 13 August he treats employees on strike from BAA (British Airport Authority) to "selfish", providing passengers angered address and telephone number of the union leader so they can complain directly to him. On 17 August he issued an ultimatum of seven days for British authorities, threatening to leave the country if the airport security rules are not relaxed. Finally, in an interview with the magazine Capital in September, he reiterated, very seriously its commitment to travel standing passengers."If we take the last ten rows of seats, instead of putting 189 passengers in the aircraft, we can save 240. This will reduce our costs and I can assure you that if we sell those seats to 1 euro, they will be the first to go. "
A technique of effective communication
Michael O'Leary has admitted himself. These repeated provocations are a great way to talk about his airline Ryanair. Advertising "low cost" in some way. Rather than develop advertising strategies complicated, the inexhaustible boss pays him. He does not hesitate to dress up as pope, snowman or even mobile phone and broke the rules of communication.On 15 July, the CEO of the low-cost airline has had to make a public apology to Sir Stelios, easyJet founder, having suggested in one of its advertisements that it systematically lied about the punctuality of its flights . A week later, Michael O'Leary is looking forward to what he considered a very good publicity campaign.
"We were more about us through advertising original, but we have done more about us when he (the CEO of Easyjet, ed) pushed me to make a public apology for the fifth time this week" .
A company that takes precedence over its rivals
If Ryanair was still the small company from its beginnings, its competitors could take advantage of laughing. But now Michael O'Leary is poised to become a heavyweight in the sector.With a market capitalization of 7.2 billion, which is broader than easyJet which pales with 2.3 billion dollars. And the success is undeniable. The airline carried 7.68 million passengers in August, 12% more than in August 2009. Over the same period, British Airways, the UK incumbent has sold half the tickets. Same is true in Spain where the Irish airline Iberia has exceeded the number of passengers carried.
Result, the competitors come to copy the methods of the man they hate. Air France considering launching an offer "low cost" for its domestic flights, and Continental Airlines launched in July in Houston on self loading. The passengers themselves open the door leading to the aircraft with their boarding pass.Purpose of the operation: take the plane should be as simple and quick passing through any other means of transportation. An idea has always been defended by some … Michael O'Leary.
Last April, the cloud of smoke from the eruption of an Icelandic volcano, which shook the air traffic worldwide has cost about 200 million euros for French airlines. Besides the lack of profits for the cancellation of thousands of flights, they have incurred costs for test flights to measure the impact of ash on engines or empty flights to repatriate French stranded abroad.
These costs are estimated at 51 million euros. So says a letter sent by the National Federation of the commercial aviation (fname) – which includes trade unions of air transport – the Department of Ecology.This letter was sent "in early August," said Jean-Pierre Le Goff, the managing director of the fname, who came on Saturday to confirm the information Parisien Today in France no fax cash advance.
French companies demanding repayment of 51 million euros. Such government action "is important to recognize the exceptional mobilization of air carriers and their contributions, and is also economically important for companies still in the midst of the crisis," said the official.
For now, no reply to that letter, the next team of Jean-Louis Borloo. As Secretary of State for Transport, it was confirmed that the case "is under investigation.FNAM said, she expected to return "next week".
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Capgemini has signed a big deal. In offering a 55% stake CPM Braxis, a leading Brazilian IT services, the French company moved to a country with promising prospects, and strengthens its financial services, an activity that is the workhorse of the Brazilian . Capgemini has spent 233 million euros, based on an enterprise value of 437 million euros to acquire the entire capital. Capgemini may exercise its option to purchase the remaining 45% between the third and fifth year following the date of acquisition.
This price may seem a bit high at first sight. But it seems the price to pay to enter a market enjoying strong growth: 10% per year until 2014 according to Gartner.Especially as CPM Braxis seem to do much better than the market's turnover is expected to 450 million euros in 2010, up 20% and operating margin should be about 6%.
"Brazil is an important market, it is twice as important as the Chinese market," said CEO Paul Hermelin, during a conference call.
IBM, Accenture, HP and Unisys loyal
Brazil represents 47% of the IT services market in Latin America, valued at $ 23 billion, says Capgemini.CPM Braxis employs 5,500 employees and has 200 customers, particularly in the financial sector, but it is also present in the telecom sector and industry.
"This transaction will enable Capgemini to enter the Brazilian market through the front door in a market dominated by American players, the top 4 players in the market as IBM, Accenture, HP / EDS and Unisys that lock them four to 25% market, "says Dov Levy, analyst at CM-CIC Securities.
The capital increase will be financed from net cash of the group.It will be done through a capital increase CPM Braxis 129 million underwritten by Capgemini, coupled to a redemption of shares from existing shareholders of the Brazilian society of 104 million euros.
In exchange, the news is appreciated: 1.48% to 35.07 euros when the market drops 0.69% to 3598.99 points, about 10 hours.
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