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.

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.

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."

Baroin and Valerie Pécresse have one week to make proposals to Nicolas Sarkozy to secure the goal of deficit reduction. Exec. UTIF arbitration will make its August 24. The budget minister has already announced that tax loopholes will be deleted. Baroin was appointed Minister of Finance and Econo Wednesday, June 29, 2011. He was replaced by Valerie Pécresse Budget.

Ministers Baroin (Economics) and Valérie Pécresse (Budget) will have to be Nicolas Sarkozy proposals to ensure compliance with the goals of deficit reduction that will be subject to "final decisions" on August 24, announced the Elysee Wednesday. At a meeting convened at the Elysee Palace, Sarkozy recalled that France's commitments on this issue "are intangible and will be required regardless of changing economic conditions."

Proposals requested from Mr.Baroin and Mrs. Pécresse to ensure compliance will be first reviewed by Nicolas Sarkozy and François Fillon August 17 and then the "final decisions will be made August 24" at a meeting between the four of them, the statement of the Presidency. The meeting on Wednesday, August 24 will take place after the Council of Ministers of the season, on the morning of that day.

"This will be the day of decisions, actions to achieve these objectives (public deficit, ed), regardless of the impact of global uncertainties, the announcement of the deterioration of the American note by Standard and Poor's (…) the volatility of markets, "said Baroin told reporters after the crisis meeting for which MM. Sarkozy and Fillon have interrupted their holidays.The French government has pledged to reduce its public deficit, which amounts to 5.7% of Gross Domestic Product (GDP) this year to 4.6% next year, and 3% in 2013.

Speaking of the objectives of reducing public deficits, he added, "the intangible that is what set the budget for the year 2011 (…) which is fixed under the law for triennial 2012 perspective, these are the objectives of deficits that will form the matrix of measures that we will have to make. "

Valérie Pécresse has in turn announced that tax loopholes would be eliminated, reaffirming the possibility of an "extra effort" to keep the financial commitment of France, in an interview on BFM TV. "We will remove tax loopholes (…) because we will not raise taxes," said budget minister without specifying what niches were covered.Niches, she said, are "tax exemptions sometimes justified" and "can be very inefficient." "We have already pledged to remove 3 billion euros in 2012 (…), tax loopholes for perhaps he will go the extra mile," added the minister.

By the way Nicolas Sarkozy again called the gathering "beyond party lines" in order to restore the balance of public finances, the statement said. An allusion to the refusal of the PS to vote the "golden rule" which the Head of State wishes to inclusion in the Constitution. For this he needs the votes of 3/5èmes Parliament meeting in Congress.

Costly wars, tax breaks, financial crisis … Some of the factors that led to the debt of the world's greatest power to reach the ceiling of 14,300 billion authorized by Congress.

Expensive wars, tax cuts and the crisis of 2008 are some of the factors that make the U.S. world power, now find themselves on the verge of default, which could affect severely the economy in the world.

As Barack Obama said bluntly in a speech to the nation Monday night: "During the past decade, we have spent more money than we collected." In 2000, the U.S. federal budget showed a surplus of 236.2 billion dollars.In February 2011, the Obama administration projected a deficit of 1650 billion for the current year, a figure recently reduced to 1,300 billion by the Congressional Budget Office (CBO), a non-partisan.

The Democrats like to point out that the federal budget was in surplus when Bill Clinton left office in January 2001 and that the deficits began to reach heights under the chairmanship of his successor, George W. Bush. But Bill Clinton himself had benefited from tax increases decided by his predecessor, George Bush, to whom they may have cost her re-election. The "bubble" in the IT sector was also boosted federal revenues under Clinton. She would burst in March 2001 under the presidency of George W. Bush, a year that would end on sending troops to Afghanistan after September 11.

In 2003, President Bush ordered the invasion of Iraq to dislodge Saddam Hussein, but refused, with its Republican allies, to make tax increases. Many Democrats will still vote the funding of these two conflicts, including Senator Barack Obama. For their part, Republicans now leading advocates of fiscal restraint, as the leaders of the party in the House of Representatives and the Senate, John Boehner and Mitch McConnell, also had fully supported the approach of George W . Bush. The United States spent U.S. $ 1.283 billion for the wars in Afghanistan and Iraq in 2011, according to a report in March by the Congressional Research Service (CRS), another non-partisan entity.

According to the CRS, the tax cuts enacted between 2001 and 2004 have cost, again in 2011, 1,760 billion in the federal budget.The New York Times, "If these tax benefits had expired as scheduled in 2012, future deficits would be halved."

In addition, a drug reimbursement policy more beneficial to the elderly, approved in 2003 by the two parties, resulted in an additional cost of 552.2 billion dollars over 10 years, according to the CRS.

George W. Bush inherited a debt of 5,700 billion. In January 2009, at the end of his second term, she had grown to 4,900 billion and the U.S. economy suffered the brunt of the crisis "subprime". "Wall Street got drunk and now it's cooked," summed up President Bush in July 2008.

The rescue plan set up by Obama has cost 800 billion dollars more, but failed to boost employment.And the debt continued to accumulate, reaching 16 May 2011 the ceiling of 14 300 billion authorized by Congress.

Which Bush and Obama is to blame most for the digging of the debt? The New York Times table below compares the new spending under the two presidencies …

It's a painful choice awaits U.S. leaders on August 2, when the government will end up running out of expediency if the ceiling is not raised: to default on part of the debt or cutting spending or health retirement. And economic and financial world feared the shock waves in the world if no agreement is reached. Obama himself spoke of a "Apocalypse" economy.

But Republican leaders must manage the intransigence of their ultra-conservative members, close to the movement of the "tea party", who reject any tax increase, away from the prospect of a compromise.

Bulgari, being acquired by LVMH the French, reported Monday a net profit in the first half and confirmed the offer price of the French group.

The Italian jeweler posted a net profit of 9.1 million euros against a loss of 7.7 million in the first half of 2010.

Turnover appears to 548 million euros, up 23.3% at constant exchange rates.

Bulgari said that its board of directors has confirmed the fairness of the price of 12.25 euros per share offered by Bulgari

LVMH.

According to a report Sunday, the Italian stock market is considering a complaint from an investment fund over the price offered by LVMH.

Sodexo confirmed on Wednesday by announcing its 2010-2011 targets an increase of 7.7% of sales in the first 9 months of the year in which emerging markets have achieved growth rates in double digits.

The world number two behind the catering Compass UK has published sales of 12.408 million euros marked by a growth of 5.2% and a positive currency impact of 2.6%.

Sales in the core business, catering and services, now grouped under the term "on-site service solutions", reached 11.888 million (+7.6%) with organic growth of 5.1%.

Those of service vouchers and cards (meal vouchers, gift vouchers), now "solutions motivations" were $ 532 million (+8.9% as reported and 6.2% organic).

Sodexo confirms forecast for the full year 2010-2011 a growth in sales "around 4.5%" and operating profit up "order" of 10% excluding currency effects.

Last April, Sodexo had raised its forecast for full year 2010-2011 showing a growth target of around 4.5%, whereas it previously was counting on an increase of 3 to 4%.

He said to remain "very confident" in its medium-term prospects, which include an average annual growth in sales of 7% and an operating margin of 6%.

By geographical area and in the industry "on-site service solutions", organic growth was 4% in North America, 3.8% in continental Europe and 15% in the rest of the world. But in the United Kingdom and Ireland, Sodexo shows a decrease of 0.2% internal.

Sodexo shares closed Tuesday at 53.95 euros.

This was requested by the British Minister of Labour to reduce the high unemployment rates painfully young. In the UK, 87% of the 400,000 new jobs created since May 2010 went to immigrant workers. The minister said businesses have a tendency to recruit migrants, less fussy about their conditions of pay and working.

The British Minister of Labour on Friday urged the companies to employ primarily young unemployed British workers before immigrants in the UK, in a speech in Madrid.

More than half of new jobs in the UK since coming to power of the Liberal-Conservative coalition in May 2010 were filled by foreigners, the minister acknowledged Iain Duncan Smith, during a lecture to a foundation Spanish for Social Research near Madrid.According to official statistics, it is 87% of the 400,000 new jobs created during the first year in office the Liberal Democrat coalition, which went to immigrant workers.

To reduce the "painfully high" unemployment among young people, the government pledged to tighten controls on immigration, said the minister. Companies have a tendency to recruit migrants, less fussy about their conditions of pay and working.

The unemployment rate among 16-24 year olds than 19%

"The government can not do everything alone," said Minister of Labour."If we work hard to reduce dependence on the welfare state and put the youth in the labor market, we also need companies that give them a chance, and that does not rest only on foreign workers, "he added.

His statements echo a sentence of former Labour Prime Minister Gordon Brown in 2007 on "British jobs for British workers". Gordon Brown was criticized, while the figures showed that 80% of jobs created under Labour office were filled by immigrant workers.

According to a copy of his speech, Mr. Smith promised to "reform the welfare state so that work pays, and to bring people back to work.""And toughening sanctions against those who refuse to accept available work," he added.

The immigration control is "indispensable" to avoid "leaving a new generation to fall into addiction and despair," said the minister. The unemployment rate for those aged 16-24 was 19.3% active, according to the latest statistics on the three months ended in April. The unemployment rate in the UK under the International Labour Office has stabilized at 7.7% over this period.

Eurazeo announced Monday the acquisition for 418 million euros from 45% of the group's ready-to-wear Moncler, pushing the de facto draft IPO company that has developed in Grenoble luxury.

The announcement comes less than Eurazeo a week after the green light from the Milan stock exchange operator in the IPO Moncler, known for his goose-down jackets.

Eurazeo becomes the largest shareholder of Moncler in place of Carlyle, which reduces its stake from 48% to 17.8%. Remo Ruffini, president and artistic director of Moncler, will retain 32% of capital against 38% previously.Brands Partners 2 remains the third largest shareholder with a share fell from 13.5% to 5.0%.

The proposed IPO is a strategic objective in the medium term, however, stressed Virginie Morgon, Moncler board member, during a conference call.

"We worked on this investment project for several months now in parallel with a project known IPO and announced by the company," she said. "We took advantage of a market environment a lot more complicated for the IPO.We have taken advantage of this opportunity. "

BUSINESS VALUE OF 1.2 BILLION EUROS

The redemption of Moncler, whose enterprise value of EUR 1.2 billion represents 12 times its Ebitda reached in 2010, should be completed in the third quarter, Eurazeo said in a statement.

Moncler hoped to make around 500 million euros from the IPO of over 50% of its float and was valued at over 1.28 billion by analysts, said last week, sources familiar with the matter.

"This announcement is surprising because until recently the group Moncler evoked an IPO," said CM-CIC in a note."The 2012 ratios show a discount to the luxury sector, but this seems justified by the group profile.

Patrick Sayer, CEO of Eurazeo, said the IPO would not intervene in the coming months, certainly not this year.

"The project seems quite attractive to the company, we maintain an extremely active standby," but added Virginie Morgon.

Founded in 1952 in Grenoble, Moncler develops five brands: Moncler, Henry Cotton's, Marina Yachting, Weber & Ahaus Coast, and a license 18CRR81 Cerruti.

Originally a technical brand specializing in down jackets, Moncler has a network of 55 stores in Europe, Asia and North America in 2010 and achieved a turnover of 429 million euros, with a EBITDA margin of 24%. It employs over 1,000 employees.

Virginie Morgon said Eurazeo Moncler was for a strengthening of its markets, like Italy, France, Germany or China, the penetration of South Korea and Russia and the opening of stores in Brazil .