Hot Economic News Releases

According to the Minister of Economy, the European Commission proposal to increase the capital adequacy ratio of banks to 9% "can absorb a shock." Budget Minister Baroin regrets the refusal of PS on the constitutional question of the balance of finances

The proposal of the European Commission and its President Jose Manuel Barroso to recapitalize banks is "acceptable", said Friday the French Minister of Finance Baroin. "The position of the Commission Barroso and two days ago is acceptable. A level of 9% of equity" to be achieved by European banks "by the end of the first half of next year, it ' is, "he said on Europe 1 radio.

According to him, "9% in 2012, it can absorb shock." He reiterated that this concerned primarily banks that failed the stress tests at the beginning of summer and those who have passed narrowly.Banks should try to recapitalize "on the basis of their results" by distributing less dividends and less bonus, "warned Baroin, like the European Commission." They should not do so at the expense of economic activity, credit to individuals and business credit, "he said.

"If they can not, they will do in the markets, if markets are not enough they will find partners, and ultimately there will be a limited possibility of a European coordination" for public assistance, the minister added . He again suggested that the European Financial Stability Fund (EFSF) provides that state aid to schools that need it, as its new statutes in force since Thursday so authorize.Germany believes he can do that for banks in countries which already have an international aid program (Greece, Portugal, Ireland).

Baroin But he reiterated that French banks do not find themselves in the position of having to seek government assistance. On Greece, the Minister confirmed the new position of France, which was resolved Thursday to recognize that the creditor banks would have to erase the country a majority of government debt. The discount provided to date to the private creditors of Athens, in the agreement of July 21, is 21%. "For three months the markets have evolved, they have deteriorated (…) We left at 21% July 21, it will be, it is almost certain," he said. "How high? Is being discussed."

He also felt that the figures circulating going "well beyond 50%" were "fanciful"."Three quarters of the Greek debt is held by private (…) We will not cut the whole," he said. "If it requires a private discount that is not tenable, then that will invest in Greece?" Asked Baroin.

He then said that the Heads of State and Government of the euro zone announce their decision on this issue at the summit in Brussels on 23 October, without specifying whether they would disclose the amount of the new haircut or just the principle.

The number of unemployed in Britain at the highest since 1994, the private did not offset the losses of public sector jobs, a statistic that feeds a little over fears of a recession.

The number of unemployed increased by 17,500 in September, announced the National Statistics Office Wednesday, however, below the 25,000 expected by economists.

But according to the methodology of the International Labour Organization (ILO), the number of unemployed increased by 114,000 over a period of three months to August, to 2.57 million, the highest number since October 1994.

Always within the meaning of the ILO and the period from June to August, the unemployment rate rose to 8.1%, the highest since October 1996, compared with 8.0% giving a consensus.

The Bank of England last week launched new measures to support growth, but Spencer Dale, a senior economist, told Reuters that the economy weakens more likely in the fourth quarter.

A fault of Greece have unpredictable consequences, including the risk that the debt crisis in the euro area spread to other countries, said Commission President José Manuel Barroso, quoted in the German daily Bild.

Discussions between Athens and the inspectors of the mission the International Monetary Fund (IMF)-European Union (EU)-European Central Bank (ECB) continued for a payment of a new tranche under the aid plan international countries.

Greece could be short of money in the month of November without this slice of eight billion euros.

"If we leave Greece, there are more chances for the crisis is spreading to other countries," said José Manuel Barroso in an interview to be published by Bild on Monday.

The President of the European Commission stressed that no one had ever experienced a bankruptcy of a member state of the euro area.

"We have entered uncharted territory and we are talking of solutions that have never been tested before."

Didier Reynders, Belgian Finance Minister, also made comments rather alarmist, saying that Greece should be helped to prevent financial contagion across what had happened during the collapse of Lehman Brothers in any late summer 2008.

"If we do not solve the Greek problem, if there is a danger of contagion to Spain and Italy, while the worst case scenario could materialize," he said in an interview published Saturday by the Greek magazine Proto.

Nicolas Sarkozy traveled to Berlin on Sunday for talks with Angela Merkel of crisis, with a priority to overcome their differences on how to recapitalize European banks.

In announcing the end of September it moves ahead in the German capital, the French president had indicated he would discuss with the Chancellor "ways and means to accelerate economic integration in the euro area and implement as soon as possible" the new aid plan for Greece approved July 21 by the Europeans.

DEBT REDUCTION GREEK underestimated DIT SCHÄUBLE

Wolfgang Schäuble, German Finance Minister, said that Europe may have underestimated the amount of debt should be reduced Greek summit on 21 July.

The summit, which established the principle of a second aid plan for Greece and that of an extension of the powers of EFSF, provides that private creditors agree to a 21% discount on their debt Greek.

"It is possible that, in July, we held a level of debt reduction is too low," said Wolfgang Schäuble, quoted by the newspaper Frankfurter Allgemeine Sonntagszeitung.

Jean-Claude Juncker, President of the Eurogroup, said a few days ago that the finance ministers of the euro area were reviewing the extent of private sector involvement in the second bailout of Greece.

"There are significant risks to the crisis deepens and widens," said Wolfgang Schäuble.

Greece is at a crossroads and must implement "structural reforms much more stringent" to avoid failure, said the head of the IMF mission in Greece, Poul Thomsen, quoted by the German Sunday newspaper Welt am Sonntag .

"Greece is at a crossroads," said Thomsen. "It is clear that the program will not work if the authorities do not take a path that requires structural reforms much harder than we've seen so far."

"Greece is two steps forward, one back," said Thomsen."The Greek government has much of the most difficult changes are to come."

About the austerity measures, Didier Reynders warned however that we should not go too far: "We do not want a cure that will kill Greece."

Greek Socialist Prime Minister George Papandreou could propose the formation of a unity government with the opposition to try out his country from the financial crisis, a local newspaper reported Saturday.

The government has however denied reports published by the financial daily Imerisia which raises the possibility of a resignation of Papandreou order to reach a political consensus and bring together a large majority in parliament supporting a coalition government.

The Greek government approved on Sunday evening a plan to reduce the number of employees, matching the most controversial release of financial assistance from the International Monetary Fund (IMF) and the European Union (EU).

The project creates a "worklist", where 30,000 employees would be affected by the end of the year with a drop of 40% of their compensation. After a year they would be dismissed.

"Measuring worklist was unanimously approved," he told Reuters a vice minister at the meeting of the cabinet.

Axa has launched the sale of its private equity, an assignment following the withdrawal of almost general banking and insurance sector made a not very attractive for future Solvency II prudential standards.

Two sources familiar with the matter told Reuters on Friday that the bank Credit Suisse had been mandated to look after the sale that occurs in the middle of financial turmoil.

"It's like any new process," said one of them, noting that the figure of one billion sterling raised in the morning by the British news channel SkyNews seemed high.

Many financial institutions are now trying to strengthen their balance sheets in order to reassure the markets and prove they can cope with the debt crisis in the euro area.

"It's not their core business or strategic asset," said one London analyst, who is likely Axa uses the proceeds from this sale to strengthen its capital rather than make acquisitions.

The impact of this withdrawal should be limited, because private equity is not an activity that consumes a lot of capital.

Management companies such as Axa Private Equity investing in unlisted companies for several years but do not with their own capital.They invest on behalf of institutional investors or wealthy families.

But even if Axa does not change his deep financial profile of the transaction, the sale could help convince its shareholders of its determination to go after refocusing.While the future of the subsidiary was never considered a major issue.

Reconquest

Axa has launched an operation in June "conquest" with its investors with the presentation of a strategic plan in 2015 whereby it has redeployed some of its capital to emerging markets and reduce its costs in mature markets.

The title Axa lost 33% since the beginning of the year, while the European sector index limit its losses to 27%.

Axa declined to comment on Friday to become its subsidiary AXA Private Equity which manages $ 28 billion in assets and was one of the most dynamic in its sector in France this year.

In particular, it acquired in May in tandem with Clayton, Dubilier & Rice (CD & R) and the Deposit Quebec electrical engineering group Spie for 2.1 billion euros.

Axa PE also announced the acquisition in August at HSH Nordbank

the bulk of a portfolio of 620 million euros, having already completed in June the acquisition of a portfolio of Citigroup for $ 1.7 billion (1.17 billion euros) and another Barclays for 740 million dollars.

Main engine of recovery of M & A in 2011, private equity, however, shows signs of weakness in France.

The closing of the market "high yield", these high-yield bonds that fund LBOs (financial arrangements based on significant debt leverage) points to a new lean times for the sector.

The ECB president, Jean-Claude Trichet, said Saturday that the budgetary situation in the euro area was better than elsewhere. A response to criticism from the United States on the European management of the Greek crisis. The ECB President Jean-Claude Trichet reiterated, at a summit of the Eurogroup Saturday, September 17 in Wroclaw, the budget situation in the euro area was better than in other rich countries.

The Europeans responded Saturday to criticism by the United States on their management of the debt crisis, saying that the budgetary situation in the euro area was better than other major industrialized countries.Against the attack came from Jean-Claude Trichet, president of the European Central Bank (ECB), following a meeting of European finance ministers in Wroclaw, Poland.

"Taken together, the EU and the euro area are in a situation probably better than the economies of other major developed countries," he said to the press. Proof of this is: the deficit (public) of the euro area is expected to grow by about 4.5% of GDP this year, said the head of the Mint. The United States, which are struggling under a huge debt, expecting a deficit of 8.8% this year.

Disagreements over the financial tax

His comments appear as a response to statements on the eve of U.S. Treasury Secretary Timothy Geithner, who came to Poland to lecture Europeans on how to deal with the debt crisis that worries the world now. Mr.Geithner urged the euro zone to end the divisions on how to resolve this crisis, particularly between the ECB and European governments, warning against the risk "catastrophic" of disunity.

EU ministers have not enjoyed these recommendations. In contrast, Germany has suggested the United States to support the idea of ​​a tax on financial transactions, which would release the necessary funds. What the U.S. Secretary flatly refused, according to comments reported by a minister.The subject of the tax is divisive within Europe itself, since France and Germany are in favor while the British, worried about the future of the City of London, are opposed.

20,000 march against austerity

"There are significant divisions on this issue," acknowledged the Polish Finance Minister Jacek Rostowski, explaining that many states fear that a tax on financial transactions confined to the European Union "to succeed simply that transactions move outside the area. " The Belgian Finance Minister Didier Reynders, defended the tax Saturday. Failing to implement it globally, "we will do in the European Union, and if not possible, in the euro area," he said."It's a technically simple, economically viable by the financial sector, financially productive and politically correct", pleaded for its part the European Commissioner for Financial Services, Michel Barnier.

The meeting of European ministers, which began Thursday, ended on Saturday against a backdrop of protests against austerity in Europe, the appeal of the European Trade Union Confederation (ETUC). Polish police counted 20,000 demonstrators. Organizers were expecting more than 30,000. The event took place while the situation in Greece empire every day and the meeting of Wroclaw has failed to progress whatsoever on the implementation of the second aid plan in the country.

Monday teleconference between the troika and the Greek Minister of Finance

Without this rescue plan of nearly 160 billion euros, the country is threatened by a default. Mr.Reynders has predicted that the rest of the debt crisis in Europe would last for "one or two years" and that a legal guardianship of Greece – already well underway – will probably be necessary. The file blocking Greek in particular the requirement Finnish financial guarantees in exchange for new loans. "We negotiate continuously, but there is nothing new for now," said Saturday the Finnish Minister of Finance, Jutta Urpilainen.

Another source of uncertainty, the troika of donors of Greece (EU, IMF, ECB) does not return date in the Greek capital, while its presence in Athens was announced for those days.It must decide the payment of an installment loan of 8 billion euros, which is essential for financial survival of the country, according to the efforts of the Greek government.

The finance minister, Evangelos Venizelos, but officials said Saturday that the troika would meet with him Monday via teleconference. Greek Prime Minister George Papandreou has also postponed a scheduled visit to New York, "because next week is particularly crucial" for the implementation of European decisions on the Greek crisis.

Contrary to popular belief, teachers do not run on gold in France. They earn less than their counterparts in rich countries. Above all, their pay has fallen since 1995, according to the OECD. A class of primary Vincennes

A few months before the presidential election, it's a stir of Education launched by the OECD. In its Report 2011 "Education at a Glance", released Tuesday, the organization that brings together the richest countries of the world considers "alarming" the wages of teachers in France.

First, the average statutory salary (excluding bonuses and overtime) of primary teachers or secondary school is less than the average of OECD countries, both for new teachers (25% approximately), for those with 10 or 15 years of professional experience (from -14% to -17% depending on the level of education).Only late-career salaries are slightly above the OECD average.

"This is a first criterion quite alarming, but also, when you look at the evolution of the statutory salaries between 1995 and 2009, France with Switzerland is one of the two countries that have had a steady decline of teacher salaries ", commented at a press conference Eric Charbonnier, education policy analyst in the OECD. In fact, the evolution of the salary of a teacher of junior high school with 15 years of experience has gone from an index 110 to index 95, according to OECD criteria.

"These OECD statistics merely reflect a sad reality that French teachers are paid less than their counterparts in developed countries and their standard of living has steadily deteriorated over the past ten years, says the expansion. com Daniel Robin, secretary general of the SNES-FSU, the main union of Education.It is even worse for two years: the freezing of the index point in the civil service and the increase in pension contributions and CSG [through the pension reform of 2010, Ed] result in a net loss purchasing power for teachers, "he adds.

1666 euros early career

According to INSEE, the average monthly income of a primary school teacher was 2367 euros in 2008, 2423 euros for professors, certified teachers in higher education. This is slightly higher than the average wage of a civil officer of the State (2328 euros net per month). But it is almost two times less than a part in the private sector (equal status with certified teachers and aggregated), who earns an average of 4081 euros per month.

According to the compensation schedule of the Ministry of Education, a school teacher earns 1666 euros early career and 3026 euros in late career. Same salary scale for certified teacher. The aggregate earn more: 2032 euros in early career after Euro 3722 30-year career. For secondary school teachers (secondary schools), in addition to such remuneration bonuses, miscellaneous allowances and overtime. All of which can reach 200 to 250 euros per month depending on the SNES-FSU.

Levels well below other major economies. In Germany, the average monthly salary of a certified teacher of over 15 year career amounts to 5,400 euros, according to OECD data. United States, the same teacher earns 4150 euros a month.In France, it affects only 1913 euros and 2540 euros (after 20 year career) to finish at 3,000 euros.

These statistics will not run out of the debate for 2012 election, while the right plans to increase the time spent by the course teacher, for a fee (the "work more to earn more" dear to Nicolas Sarkozy ), as Martine Aubry proposes to take into account the number of hours team meetings and meetings with parents, and Francois Hollande is prepared to recreate the 70,000 positions eliminated in five years. Alas, none of the candidates meets the wishes of the unions, "an appreciation of teachers' salaries at a level at least as high as the average of rich countries," explains Daniel Robin.

The investment company Eurazeo announced Thursday a loss of 106.3 million euros in the first half due to losses on derivatives and goodwill.

The results related to the business are better and Eurazeo shows a revenue increase of 5.3% to 1.907 billion euros.

EBIT (earnings) of consolidated companies adjusted to 200.5 million euros it is up 7.7% over the same period last year.

Eurazeo reported a stable net asset value to 70.1 euros 70.3 euros against 31 December 2010.

The financial holding company, which had returned to profitability in 2010, reiterated its goal to create 2 billion of value creation by 2014 thanks to new acquisitions.

Eurazeo has launched this year in a series of acquisitions by taking over the fund OFI Private Equity, participation in the group of ready-to-wear Moncler and the land administration.

The holding company has stakes in listed companies such as Accor or private car rental company Europcar.

DIA, the company split from discount stores with Carrefour, reported Tuesday a 10% increase in underlying profits in the first half, strong growth in emerging markets offsetting difficulties in its main markets of France and Spain.

The Spanish group, which made its IPO last month, has reported a gross operating profit (EBITDA) of 233.8 million euros.

The eight analysts polled by Reuters expected a profit of between 217 and 236 million euros.

The action DIA opened up 3.18% to about 2.73 euros.

The stock fell nearly 23% since the IPO of 5 July, amid fears about consumer spending in Spain, France and Portugal, where the group achieved in 2010 over three quarters of its sales.

Sales of DIA, which operates over 6,400 stores in eight countries, emerged up 2.5% to 4.79 billion euros in the first half.

Sales at stores open at least a year jumped 14.4% in emerging markets and increased 0.2% in Spain and Portugal, offsetting a decline of 6.4% in France.

The EBITDA margin increased 30 basis points to 4.9%.

The group said it maintained its full-year, which increased sales by 4% and an increase of 6.5% of adjusted earnings.

Carrefour, the first European distributor, launched last month a warning on its earnings because of its poor performance in France. It must publish its interim results on Wednesday morning.

Austria, the Netherlands and Slovakia want to turn the establishment of a collateral attached to loans in Athens if the agreement between Finland and Greece is approved by the countries of the euro area.

"The model collateral must be open to all countries in the euro area.We'll see if this is the case, "said Harald Waiglen, spokesman for the Austrian Ministry of Finance, in the pages of Helsingin Sanomat.

The three countries want to follow the lead of Finland have paid for approximately 11% rescue plan 109 billion euros granted to Athens.

Finland has reached an agreement with Greece on the collateral attached to loans from Helsinki to Athens, which should facilitate the establishment of a Nordic country using the most indebted to the members of the euro area.

The establishment of a collateral – collateral assets in a loan – its loans was a sine qua non for Finland agrees to participate in the Plan aid to Greece.

The country's cooperation with this plan is considered important, not because of the size of its stake, but because it is one of six members of the euro area to receive a rating of "AAA" , the highest possible.

A representative of the Greek government but warned that extending this option to other states in the euro area would be to nullify the effects of emergency aid.

So he quickly indicated that Athens did not evoke such an event with other countries than Finland.

"We do not discuss this," he said on condition of anonymity."Launching such discussions would be to cancel the effect of the rescue plan."

The Greek Minister of Finance declined to comment on this information.

"If other Member States of the euro area require collateral to ensure their contribution to the second bailout plan, the amount of funds available is dwindling, threatening the success of this new aid," said Theodore Krintas Attica Bank.

Marco Valli, chief economist at UniCredit in the euro area, for its part believes that multiple requests "undermines the credibility of the assistance plan."