EU summit, the first act. The leaders of the EU started in Brussels on Sunday morning a summit with the goal of trying to overcome their differences on how to stem the debt crisis that is destabilizing the euro area. The meeting began around 10:20. However, no decision is expected at the end of the summit of which the second act is expected Wednesday. This afternoon, the summit will continue with a meeting of Heads of State of 17 countries in the euro area.
Europe is facing economically to "serious challenges", said President of the European Union, Herman Van Rompuy, at the opening of the meeting. He believed that the decisions to be taken by European leaders to address was "perhaps the most important" they've ever had to face the financial crisis.Greek Prime Minister George Papandreou, also felt it was "time" to take "decisive and effective." "It is clear that the crisis (debt) is not Greek. This is a European crisis, "he judged.
German Chancellor Angela Merkel, however, dampened expectations about the outcome of the summit, from the outset, reaffirming that decisions could be taken next week. "For me it is important to reiterate that today we prepare the decisions of Wednesday" because the negotiations are about "subjects sometimes technically very complex, she said on her arrival in Brussels.
"You have to reassure the markets"
For its part, the Belgian Prime Minister Yves Leterme has tried hard not announce anything at all on Sunday, in light of market pressure."It is essential for tomorrow morning at the opening of markets, we have made sufficient progress so as not to jeopardize the credibility of the euro area," he said. Same story for the European partners have not adopted the single currency, which are concerned about the fallout from the debt crisis. "The crisis in the euro area is being extended to all our economies, including that of Great Britain ', launched the British Prime Minister David Cameron.
What response to the crisis the Europeans do they negotiate? This response is intended in three stages guaranteed cash advance. It must first stabilize the over-indebted Greece and save him a total failure. This will require further international loans and losses of creditor banks in the country. Europe the figure to at least 50%.According to the report of the troika (representatives of the EU, the ECB and the IMF), the discount should be 60% to maintain unchanged the envelope of € 109 billion promised to Greece, as part a second rescue plan officially recorded on July 21. "We remain willing to explore options on a voluntary basis [for each facility, Ed] and realistic prospects for the economy of Greece and the return of that country on the capital markets," said Charles Dallara Saturday night , the president of the Institute of International Finance (IIF), which brings together major global banks.
In return, a bank recapitalization is provided. Countries of the European Union discussed a budget from 107 to 108 billion euros at the meeting of finance ministers on Saturday night.
Finally, we must strengthen the Financial Assistance Fund for the euro area countries in difficulty, the EFSF, firewall against the contagion to Italy and Spain. But differences remain on how to do this, especially between France and Germany. Yesterday, the French proposal to grant a banking license in EFSF was discarded. Only two options are being discussed to increase the firepower of the device: the mechanism acts as a partial insurance of the public debt of troubled countries or the IMF is expected to increase its participation in the scheme.
For the summit this Sunday, German Chancellor and French President had also met Saturday night to try to resolve their differences, following a meeting of EU finance ministers. They both welcomed the "progress" and "advanced" made in the negotiations.
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Barely recovered from the earthquake and tsunami of March 11 in Japan, car makers now face the wrath and flooding currently affecting Thailand and have already killed at least 300 people and damaged 10% of rice fields in the country. "It's like the tsunami in Japan who also had an impact on plants in Thailand because of shortage of spare parts," warns Payungsak Chartsutthipol, president of the Federation of Thai Industries, fearing the "massive losses" for an industry that will "several months to recover."
Regional Centre for the automotive industry with nearly 2 million units per year over the Su-East Asia, the Kingdom is home to the factories of Toyota, Ford or Honda. These floods are a blow to companies that relied on plants abroad to recover their losses in Japan.Toyota has already announced that it extended until 22 October to suspend its activities in Thailand. "The Japanese drama have exhausted by forcing them to close their factories for two months. And now, flooding slow down production in Thailand, "says Hans Greimel, Asia editor of Automotive News.
An estimated cost of 3.5 billion euros
High technology are not spared. American groups Seagate Technology and Western Digital have warned that their production would be affected hard drives. Chipmakers and électroniquesON Semiconductor Microsemi have suspended them.Finally, the Japanese electronics giant, Nikon, arrested one of its States, and its competitor Canon has transferred the production of inkjet printers to a site in Vietnam payday advance lenders.
More than the car – which represents 11% of GDP in Thailand – and electronics, the whole economy that is fragile. The University of Thai Chamber of Commerce has estimated the total cost of flooding to about 150 billion baht (3.5 billion), or between 1.3% and 1.5% of GDP in with agriculture, tourism and trade. "If Bangkok is flooded again, the losses will be even greater," warns Thanawat Polwichai, head of the forecast center at the university. According to the President of the Federation of Thai Industries, Sing Tangcharoenchaichana, quoted by the Bangkokpost, a local newspaper, the damage could even reach 190 billion baht (4.4 billion).He said the financial cost could even double if the floods continued for another two months or more. In comparison, the Japanese government had estimated the financial impact of the earthquake and tsunami in Japan to 147 million euros.
Even if the authorities is confident in their ability to protect the megalopolis of 12 million, the Central Bank should lower its growth forecast for 2011, currently 4.1%. "The experience in Japan of a fairly rapid recovery of production after the tsunami of March offers hope, but the experience in Thailand may be less happy, say consultants IHS Global Insight. Not only the affected area is much larger, but many areas suffer the consequences. "
The French, Belgian and Luxembourg governments announced Sunday mid-day they had found a solution for the bank Dexia, about to be dismantled. "The proposed solution, which is also the result of intense consultations with all relevant partners, will be presented to the Board of Directors of Dexia which is responsible for approving proposals", they said in a statement, without giving more details on how they have learned.
Sunday morning, Finance Minister Didier Reynders has indicated in an interview to the channel RTBF, as Belgium does not redeem all of Dexia Bank Belgium (DBB), the Belgian entity of the bank on track to be dismantled. "The state will rise sharply in power. If we were 100% (in the capital of Dexia Bank Belgium), I do not rule, we do not intend to stay indefinitely.This does not mean that we will stay three months or six months, "he said.
Given the scale of the debt crisis, "I do not exclude that in three years, five years, maybe more, we are still present" in the capital of DBB, the retail banking business of Dexia , said the minister.
The pattern of the decommissioning of the Franco-Belgian bank Dexia today favors nationalization of the Belgian entity and the creation in France of a new bank dedicated to local communities.
Board in 15 hours
The board of Dexia, the first victim of bank debt crisis in Europe, will meet this Sunday at 3:00 p cash advance no fax.m. (1:00 p.m. GMT) in Brussels, said a spokesman for the institution.
It will have to decide on the decisions taken by France and Belgium to break up the Franco-Belgian bank, in big trouble.A meeting will be held in Brussels between pre-Yves Leterme and François Fillon, the Prime Ministers of Belgium and French, in an attempt to complete the dismantling of Dexia.
The meeting between the heads of government must be "at lunch", told AFP a source close to the negotiations. However, no details were provided on the venue.
A Luxembourg delegation will also be present during these exchanges, while an international investor has manifested itself this week to resume the Luxembourg branch of Dexia present in the retail banking and asset management."We are ready to enter the final stretch of negotiations," said Saturday night the Belgian Prime Minister in charge of current affairs, following a limited cabinet meeting devoted to the case Dexia.
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Meetings on Greece and are very similar, a little. Following a meeting which ended yesterday, the finance ministers of the euro area have not taken any decision regarding the granting of the next tranche of 8 billion euros to Greece vital for the country.
The ministers of the Eurogroup, however, managed to find a compromise with Finland, the day after his election, had demanded of the counterparties to its participation in the second aid plan Greece's 109 billion euros decided July 21 last. Thus, the collateral will be provided in exchange for loans to Greece, said on Tuesday the Finnish government.
Efforts required to Greece
• The Eurogroup requires additional budgetary efforts of Greece, who said the day before not being able to meet its commitments to reduce its budget deficit."We call on Greece to take additional measures" in terms of savings for 2013 and 2014, thus going beyond those that have just been announced for this year and next, warned the president of the Eurogroup Jean-Claude Juncker. The euro area also recommends Athens to undertake more privatization of companies.
Increase the contribution of banks
• The President of the Eurogroup has also raised the possibility to contribute more financial rescue banks from Athens. Institutions might also undergo a discount greater than 21% of their claims previously considered Greek. There will be "technical revisions" on the subject from what was decided on July 21, he said.But Jean-Claude Juncker warned that "the involvement of the private sector, we must take into account the fact that we have experienced changes since the decision of July 21."
New missions Stability Fund
• And the ministers have suggested to increase the firepower of its Financial Stability Fund (EFSF). Ministers plan to make the fund more "efficient", as demanded insistently the U.S., but refuses however to increase its volume. This fund could help and use of leverage.
In this way, the mechanism would be allowed to use debt to leverage its ability to act. Several scenarios are circulating, the EFSF could turn into a bank that would finance itself from the European Central Bank (ECB).It could also act as an insurer from the holders of debt and cover their losses at 20% to 25%. Options involving the ECB should not be privileged ones, said Jean-Claude Juncker, without giving details.
The Eurogroup is reassuring
After the meeting, ministers have played the card of appeasement. The Eurogroup President said that Greece would be "able to fulfill its obligations" financial. He reiterated that a "failure of Greece will be avoided, adding that a person contemplates leaving Greece in the euro area."
He says that "final decision will be taken in the month of October" based on the findings of the creditors of Greece currently deployed in the country. The meeting between Nicolas Sarkozy and Angela Merkel in Berlin on Sunday planned should also do more advanced discussions.The Franco-German meeting will also prepare for the forthcoming European Council and the Eurogroup meeting on 17 and 18 October in Brussels.
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After Societe Generale and BNP Paribas, is the turn of Credit Agricole announced asset sales. The bank is expected to formalize the announcement today confirming the information in the Financial Times published on Wednesday that does not specify the amount that could take these asset sales.
Particularly exposed to the crisis in Greece with its local subsidiary Emporiki, Credit Agricole, was downgraded by one notch Mood'ys ten days ago, as its rival Societe Generale. By reducing the size of its balance sheet, the bank may, mechanically strengthen its financial soundness. BNP has already announced plans to reduce by 10% the size of its balance sheet by the end of 2012, while Societe Generale provides 4 billion of asset disposals.
This is also seeking to sell its stake in Newedge, the joint venture of Societe Generale and Credit Agricole specializing in derivatives low fee payday loans.According to a source quoted by Reuters, the bank will also consider transfer SGSS, its management subsidiary titles, but no decision had yet been taken.
Reorganization in North Africa and the Middle East
Tuesday, the head of Crédit Agricole in the UAE had told Reuters that the bank had closed its merger and acquisition in North Africa and the Middle East. "We want to focus on areas where we can create value for our customers," he said.
At the Paris Bourse, the Crédit Agricole yield 1.04% to 5.134 euros after climbing 13.10% yesterday, amid rumors of measures to support the banking sector in the euro area.
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After the 2010 reform, pensions should not be a real issue this year in the budget of the social security system. In fact, the main novelty of this result to come Woerth reform: the legal age will increase to 60 years and 8 months for those born in 1952. The other change was as expected since it corresponds to Nicolas Sarkozy's commitment to increase the "small pensions" by 25% during his five-year term: this will be done on April 1, with a final increase of 4.7 % of the minimum pension for single people.
But Thursday, François Fillon has caused confusion. Referring to the economic convergence between France and Germany, he said that things were moving in the field of corporate tax.He added: "It will take time to go to a joint work towards a common retirement age, to a gradual convergence of economic and social organization of our two countries." But the retirement age with full pension, except for long careers, will be increased to 67 years across the Rhine by 2029.
"Target needed '
Trial balloon of "Fillon-the-discipline"? Clumsiness (this passage was the only improvised his speech)? Applies to defuse his entourage: "Convergence is a general purpose necessary to maintain the competitiveness of France. The recent pension reform is an element of social convergence, and the government does not intend to go beyond in the coming months, "says an adviser.And up, tongue-in-cheek, that the barrier of 67 years had not been mentioned, and that convergence might as well be on "our" 62 years installment payday loans…
In fact, it would be difficult for the Prime Minister to explain that further reform is needed, a year after he hammered the previous balance the books. But in the midst of primary socialist and the day of the budget of the social security, his statement could hardly go unnoticed. For François Hollande, Fillon "revealed the program of Nicolas Sarkozy" in 2012. Segolene Royal accused her of "not being honest", the systems are so different that any comparison between the 67-year German and French 62 years is risky.Exact to the point that Valerie Pécresse also used the argument to play the controversy, noting that the retirement age without financial penalty for people without all their quarters of contribution, would be increased from 2023 in France … in 67 years.
These subtleties have also pushed Martine Aubry to say that the Prime Minister does "not know the subject" and "has a problem with the actual figures." What afoul of Xavier Bertrand: "She would have done better to remain silent. If there is one subject on which the PS has done nothing, other reports and reports of decisions, it's pensions, "responded the Minister of Labour.
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It's a real bolt from the French audiovisual landscape. Wednesday morning the competition authority has simply removed the authority granted to Canal + in 2006 to buy its rival TPS. Result, Canal + and its parent Vivendi will re-notify their proposed acquisition of TPS before the competition authority in a one-month periods. In addition, the authority sanctioning Canal + up to 30 million euros.
The reason for this? The Competition Authority considers that Canal + has not complied with several of the 59 commitments made during this operation.These commitments were supposed to ensure that the encrypted string abuses its dominant position in pay TV.
Among the reasons for this heavy penalty, the Competition Authority Canal + accuses of not having available to third party distributors (telecom operators and their channel packages on ADSL) in a timely manner the seven channels mentioned in the commitments. Worse, the Canal + group would deliberately degraded the quality of TPS Star, the only pay channel capable of competing with its own channel Canal +. Finally, the group led by Bertrand Meheut failed to comply with certain commitments regarding relationships with independent channels business cards.Clearly, it takes advantage of its dominant position to impose commercial conditions "opaque and potentially discriminatory"
Gendarme Competition
All of these unfulfilled commitments had been badly negotiated in 2006, on the redemption of GST. Telecom operators, Orange had in mind battled against Canal +. The competition authority had imposed severe conditions, but Canal +, no one has apparently ignored it.
With this decision, the Competition Authority comes on strong. She returns to the operation which allowed Canal + to eliminate competition in the market for pay television. Above all, the competition watchdog the fact at a time when Canal + ready to leverage its position in pay television to attack the free TV market with the acquisition of Direct 8 Direct and Star.
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The question of the succession of Yves Carcelle, who turns 65 next year, Louis Vuitton, LVMH's flagship brand is a question that torments long time analysts. It's finally out that Bernard Arnault, chairman of luxury group and parent company of Louis Vuitton, has found a rare bird. The lucky winner is a 47-year Spanish, Jordi Constans, the current head of Danone's fresh dairy products. He worked in the group since 1990. He joined Louis Vuitton to discover the group during the year 2012 and succeeding Carcelle early 2013 at the head of the first luxury brand in the world.
Yves Carcelle take over the presidency of the "Louis Vuitton Foundation" which will open in early 2013 to the completion of the project designed by Frank Gehry. He will remain executive committee member of the LVMH group and be responsible for strategic missions to the President of the Group.
Bernard Arnault acknowledges the work of Yves Carcelle which, since 1990, "hosted the extraordinary journey of Louis Vuitton.".
After a smooth start Monday, the prestigious yearling sales at Deauville * Tuesday saw the excitement of great days with a filly born to the purple.
When she was presented the "ring" of the Establishment Elie de Brignac, located opposite the racecourse The Touques, tension immediately rose several notches in the gallery hosting the auction buyers and quickly flamed .
For this filly, by the stud of Perelle, is a daughter of Galileo, the best stallion in the world (it's riding the famous Coolmore Stud in Ireland and its projection amounts to tens of thousands of euros).As for his mother, Sanjida, after the breeding of His Highness the Aga Khan is a close relative of Sarafina champion, winner in 2010 of three groups I, including the Prix de Diane, Qatar and the last third Prix de l'Arc de Triomphe.
Quickly, the auction turned into a duel between two Australian businessmen, Paul Fudge and Paul Makin, both thoroughbred breeders and owners of racehorses. Finally, the first had the last word with a bid of 1.7 million, the auctioneer lowered his gavel and say the traditional "awarded" for Lot 138.
The 2002 record still stands
This amount is probably the "top price" sales in 2011 in Deauville, which will end Thursday make quick cash. But the record set in 2002 still stands.At the time, Sheikh Mohammed Al Maktoum, Ruler of Dubai and owner of the Godolphin stables, one of the largest in the world, did not hesitate to pay 2 million euros to buy the filly Vimy Ridge. This year, like last year, Sheikh Mohammed and Sheikh Hamdan's brother, are not present on the Normandy coast because of Ramadan.
In addition to the price achieved by the daughter of Galileo, fifteen yearlings yesterday exceeded the threshold of 200,000 euros, which allowed a rebound. "On the combination of the first two days, there was a 20% increase in sales compared to 2010, said in Galop Day, Eric Hoyeau, the president of Arqana, organizer of sales. The percentage of sales increased by 68% to 71.3%. The average price 145,500 euros against 150,000 – it is substantially equivalent to that of 2010. "
After the first two days, its objective, namely a slight increase over 2010, a year marked by a fall (-28%) of sales of sales of Deauville, becomes more and more feasible .
* Thoroughbred of 18 months
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We suspect, given the global economic slowdown taking place, the government would be forced, sooner or later, to revise downward its growth forecast for 2012 (2.25%). But given the very poor GDP figures in the second quarter that were published this morning, one wonders now if the forecasts for 2011 will be held, too.
The government plans to officially 2% growth this year. According to Insee, the carry-over of 2011 (that is to say that France would increase if the activity was stagnant until the end of the year) is 1.4%. From 1.4% to 2% going to have to know the activity a dramatic rebound in the second half, which is far from certain.Balances were mediocre and above all a financial crisis that could fill a strong business investment bodes poorly for consumption and industrial production in the third quarter.
All in a context of slower public investment, fiscal discipline requires. At Bercy, yet it refuses for now to revise down forecasts payday loans guaranteed no fax. But he will have to solve it or risk losing credibility.
Huge consequences
The consequences of the stagnation of GDP in the second quarter are huge: the estimated government deficit to 5.7% of GDP at end 2011 and end 2012 4.6% are threatened. The government has pledged to do everything to achieve this intangible. He has no choice: the slightest deviation will be severely punished by financial markets.
In order to reduce the deficit in 2012 the state was counting on three billion euros in savings in tax loopholes. This figure is outdated. The aim should be 5 billion, at least, to save on niches, according to the general rapporteur of the budget Gilles Carrez. The MP also recommends additional 3 billion of cuts in public spending. Rigor looks for this winter.
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