Daily International Headlines

"There will be a reasonable evolutionary vision. By this sentence while caution Eric Woerth summarized what would be the attitude of the government on pension reform next week.

The text will be considered at the Assembly from Tuesday, when all the unions call a strike and demonstrate. "There will be many people in the street" without that "France would not France, already primed by the Minister of Labour, on Thursday, before the Association of business and financial journalists. No way to change "fundamentally" the bill after that day, but the government "will file amendments.

The game continues on balancing the grant "most important" requested by Wednesday François Chérèque (CFDT): 2018 reject the decision to raise from 65 to 67 years the age at which anyone can receive a full pension even without having contributed all his quarters. As it stands, the government draft plans to implement this measure in stages starting in July 2016 (ie, for all those born from July 1951) No fax payday loans.

Possible additional measures on the arduous

"It's very important that there be two terminals of age," argues the Minister of Labour, for whom it would be "unfair" that people with long and often deliberately interrupted their careers – housewives, for example – able from the same age as the others (60, 62 in 2018) without financial penalty.However, "I do not think everything is locked. Eric Woerth temporizes also possible additional measures to take account of hardship: "You can probably go a little further, it is unresolved. We allow a maximum time. "

ALSO READ

"Pensions: the opening of François Chérèque

"Woerth:" Retirement at age 62, is to hold an age of reason "

On Monday, the euro has exceeded a threshold important to the dollar. Crossing $ 1.32 per euro, the European currency has confirmed that his movement assessment started in June was solid. According to technical analysis, once reached this milestone, "there should be a rally towards $ 1.34."

The explanations are manifold, since by definition, when the exchange rate Euro / Dollar rises, it may come from a strong euro, but also a weaker dollar. In this case, currently, the two factors at play.

The euro rises

First, the rise of the euro reflects a growing confidence in Europe.If the euro has fallen more than 20% in less than six months, overwhelmed by the problems of sovereign debt, Greek, Portuguese, Spanish, Irish, etc.. Have even questioned the existence of the euro, European currency recovers while the EU has proven, with the IMF, she was desperate to save a member of the bankruptcy, and it would be tough on states to put in stringent budgetary policies.

The renewed confidence is also bolstered in recent weeks by a series of rather positive economic statistics in Europe. Especially in Germany.

The dollar drops

On the other hand, the dollar decline. First, the inverse relationship between changes in U.S. equity markets and the greenback continues to hold. But Wall Street has recovered well in July (7.18% on the month for the Dow Jones) and the month of August has begun.In reality, investors are becoming more appetite for risk and sell the dollar in favor of assets or currencies more risky.

On the other hand, the economic statistics on U.S. rather disappointed and shed doubt on the strength of the recovery across the Atlantic. Good reasons to abandon the dollar.

The yen is at its highest in fifteen years

The weaker dollar also largely explains the surge in the yen, which reached a higher Wednesday since April 1985. What open competitive Japanese companies, including the key word for success is export.

For three months, the dollar has lost 9.48% against the yen. A worrying trend: according to calculations by the OECD, a 10% appreciation of the yen would cut growth by 0.2 percentage points in the first year and 0.4 the second and third year."The impact is not significant when the forecast is 2-3% growth per annum over the next two years," relativized in a note Takuji Okubo, senior economist at Societe Generale IPC.

According to Raymond Van der Putten, Japan specialist at BNP Paribas, "the yen's appreciation is mainly due to poor growth expectations in the United States."

IN BRIEF – Australian dollar and sterling

The doubling of the surplus balance of trade of Australia and its implications for sustained economic growth, has rekindled hopes of a future market for new rate hike by the Australian central bank, providing support this morning the Australian dollar.

In the United Kingdom, the earnings published by the UK banks have supported the pound sterling, which reached a high of six months against the U.S. dollar.

ALSO READ:

"The rising yen is the least of worries for Tokyo

The green will not stay very long on Wall Street Wednesday. After starting up in, carried by companies satisfactory results, the markets fall into the red of -0.57% to 10,172 points for the Dow Jones -1.12% to 2198 points and the Nasdaq – 0.80% in 1075 for the S & P.

A reversal following direct speech, much anticipated, Ben Bernanke. The Fed chairman, who delivered his verdict on the U.S. economy before the Senate Banking Committee, said that the takeover of the U.S. economy "continues at a slow pace" and that "the economic outlook remain unusually uncertain" . If no measure of support is mentioned, the Fed is willing to act.

"The market reaction reflects the caution shown by the markets," notes Nick Kalivas, an analyst at MF Global in Chicago."Yet, to some degree, support annocée the Fed would have meant that things were worse than we thought."

These ads are disturbing in any case overshadowed the results published before market trimestreils …

Record earnings for Wells Fargo

Wells Fargo (4.32% to 27.03 dollars) on Wednesday posted a net profit of the group "record" for the second quarter to 2.787 billion dollars, up 12% over a year and above expectations, and reported an improvement in the credit greater than planned. Based on the number of shares, the benefit amounts to 55 cents, while analysts were only expecting 48.Net revenue (turnover) of the fourth largest U.S. bank stood at 21.394 billion dollars, yielding 5% a year.

The U.S. investment bank Morgan Stanley (8.05% to $ 24.25) Wednesday announced a net profit group share of $ 1.578 billion in the second quarter, much better than expected, with a turnover also exceeding analysts' forecasts. Per share, net income totaled $ 1.09 and 80 cents without considering the integration of brokerage Smith Barney Citi bought instant credit report.Analysts had expected 46 cents per share excluding special items.

The U.S. giant soft drink Coca-Cola (+2.05% to 54.32 dollars) net earnings up over 16% to $ 2.37 billion in the second quarter, slightly less than expected thanks to higher sales volumes internationally. Reported per share, current earnings is $ 1.02, slightly less than the $ 1.03 expected by analysts, but better than the 92 cents recorded a year earlier.

Apple has released its quarterly after the close of Wall Street. The firm at the apple once again exceeded market expectations in the third quarter of fiscal offset with net income up 78% year on year to 3.253 billion dollars, and sales far beyond forecasts.The securities earn 3.81% to 261.48 dollars.

The U.S. Internet portal Yahoo! posted a group net profit up 51% year on year to 213.32 million dollars in the second quarter, better than expected by analysts, but its sales came out virtually unchanged. The shares dive: -8.88% to 13.85 dollars.

Moreover, the oil giant BP traded on Wall Street Tuesday concluded an agreement with U.S. rival Apache to sell him to seven billion dollars in assets, making a sudden the majority of assignments to which he had hired to offset the cost of the spill. The news was welcomed: securities rise of 3.35% to 36.38 dollars.

Note that the foreign exchange market, the euro retreated against the dollar, traders were playing the card of caution before the release Friday of the results of resistance testing of the 91 largest European banks. In the morning, the euro was at 1.2867 dollars against 1.2881 dollars the previous day.

Good news for residents of 133 communes in the Ile-de-France. The new contract for water distribution unsurprisingly won Thursday by Veolia provides a decrease in the price of water in the order of 6%.

On its website, the union of the waters of Ile-de-France (SEDIF), explained that the tax price per cubic meter fall under the responsibility of end December 2010 from 1.75 to 1.51 euros or 1.41 euros , following the return or not nine municipalities in the SEDIF. A decrease of at least 14% plus taxes, which amounts to 6% taxes, according to Le Parisien on Friday.

The new contract also provides for the creation of a multi-rate habitat option that will allow residents of an apartment building to "benefit from rates close to those living in individual homes. The union figure to 19 cents per cubic meter of savings for consumption of 180 cubic meters.In return, the affected households will pay a quarterly subscription of 5.72 euros on 1 January 2011.

Other measures under the contract, an amount of 2.5 million euros devoted to households in difficulty should be established. 1% of revenue from water sales will be allocated according to the statement from Veolia. Tariff escalation in the volume of water consumed should also be introduced.

A highly concentrated market

According to André Santini, President of SEDIF and deputy mayor of Issy-les-Moulineaux, is "the price" that made the difference in the manager's choice of water in the Ile-de-France for the next twelve years. For this mega-contract that represents a combined turnover of around 3 billion euros, the offer of Suez Environment has been ruled out from the month of May in favor of Veolia Environment.Leading distributor of water in France, with 24.6 million users, Veolia is already holder of the Paris agreement since 1923 and is now committed until 2022.

Lack of competition in the market for water distribution in France is regularly singled out by the Competition Council. Some cities are returned to management in public ownership (without going through a private company), as Paris at the beginning of the year. Yet, according SEDIF is "the direct competition between candidates" who has achieved this "significant decline" in prices.

However, the issue of price allow the investor indifferent. At the Paris Stock Exchange shortly after 9:30 am, the title Veolia Environnement rose 0.46% to 20.955 euros on a market up 0.44%.

ALSO READ:

"War of the water in the Paris region

China has emerged unscathed from the slump that has upset the global financial system. "Last year, Chinese banks have been the arm of an expansionary monetary policy", said Yang Zaiping, executive vice president of the Association of Banks of China, during an interview with China Central Television (CCTV) last February.

In 2009, Chinese banks have indeed given some 9.6 trillion yuan (1.150 billion euros) in loans. A staggering amount, to the extent of the recovery plan of 4,000 billion yuan (430 billion euros) set up by Beijing in late 2008. The grants funds have exploded from 30% in China in 2009 and projected to grow further by about 18% in 2010, according to the World Bank. In the first five months of the year, loans have jumped 7.6%, reports the institution in its latest report on China on Friday.And despite the many measures adopted by the central government in recent months to limit the risk of bubble and soaring property prices.

The regulatory tightening is not the business of foreign banks operating in China. These institutions expect that the legislation, already significant concern in recent years, a rigid further, the survey shows "Foreign Banks in China" * PricewaterhouseCoopers, published recently.

Since the opening of the Chinese banking market, 11 December 2006, following China's accession to the World Trade Organization (WTO) in 2001, foreign banks have rushed into the breach. "The market share of foreign institutions is still limited to 2% today, after a slight decline in 2009," said Herve Demoy associated financial sector specialist with PricewaterhouseCoopers in France.

A share market still weak

And half of banks surveyed by the consulting firm believes that this market share will not increase in 2010. Access to the Chinese market is an obstacle course for foreign banks. Three paths are possible. First track, making participation in a local bank. "The regulations limit the non-Chinese banks at 20% equity stake, which limits the chances of key positions within schools," notes David Bernard, associate director of retail banking outside France's Societe Generale Group .

By buying in 2004 a 19.9% interest in Bank of Communications, the fifth largest commercial bank in China, one year after acquiring 8% stake in Bank of Shanghai regional bank, the HSBC Group has quickly made the bet external growth in China.The formation of a joint venture with a Chinese partner is a second possibility for foreign banks, but it is restricted to a specialized field, such as asset management or private sale.

A third solution is to create a subsidiary to 100% Chinese cheap payday advance. "To open an agency and develop a network, you must obtain multiple licenses for geographic location or product offering," according to David Bernard, who estimated five years the time required for a foreign bank, once obtained the license for its network covers all of its products and services. Especially since the rules limit the pace of network expansion of foreign banks to open a new parent agency by city and year or so a year to two agencies in a city where the bank is already established .Despite these obstacles, Societe Generale has decided to develop its own network in the Chinese territory, following the failed acquisition of Guangdong Development Bank (GDB) against Citigroup in 2006.

Chinese banks gaining momentum

The regulatory environment is not the only challenge facing foreign banks in China. Competition with Chinese banks has increased, following the implementation of the huge recovery plan, says PricewaterhouseCoopers."With the importance of their networks and their growing expertise, particularly in the development of innovative products, Chinese banks are now better equipped to cope with foreign competition," said Herve Demoy.

However, some foreign banking players fear a backlash for their Chinese competitors, which have multiplied the granting of credits or risk having to cope with non-performing loans to term. On the other hand, Chinese banks are not exactly the same target customers as their foreign counterparts.

"International banks are working with foreign companies that have operations in China," according to David Bernard. But not only. A new type of clientele grows. "Chinese companies are parties to conquer the world and foreign banks are focusing on those slots," says the head of Societe Generale.They support projects and Chinese actors in Africa, where Chinese banks are not present.

If the conquest of Mecca is difficult Chinese, foreign banks remain optimistic. "Most of them expect an increase of 10% to 20% of their activities in 2010," says PricewaterhouseCoopers. Their ability to adapt to playing in China will be the key to their success.

* PricewaterhouseCoopers presented its fifth survey on foreign banks in China, which follows four previous studies published since 2005.This survey was based on interviews conducted in January and February 2010 with CEOs and senior Chinese branches of foreign banks from 42 in Beijing, Hong Kong, Shanghai and Shenzhen.

ALSO READ

The banking giant HSBC is up to his Chinese roots

"The real estate bubble in China more risky than in the U.S.

"We are resigned to the fact that there may be a suspension of the dividend," said Tony Shepard, an analyst at Charles Stanley, quoted by Reuters. After many setbacks experienced by BP for almost two months and the explosion of the drilling platform, the oil group could suspend payment of its dividend this year. Anticipating that caused a fall of 4.24% to 391.55 pence on BP's share price at the close of the London Stock Exchange, while the British FTSE gained 1.15%.

On Friday, BP has reaffirmed its intention to announce to its shareholders on July 27 the amount of its interim dividend by way of the second quarter.Dividends paid by the group representing some 10.5 billion dollars (8.7 billion euros) per year.

Yet another bad news for the oil group that is not due to his inability to pay, but the fact that the U.S. authorities there are not favorable. "It does me no problem that BP complies with its legal obligations (to its shareholders, Ed), but I want them to know they have a moral and legal obligations here in the Gulf, warned Tuesday Barack Obama.

The U.S. authorities have also sent an ultimatum to compel them to BP by unveiling its plans to 72 hours to stop the leak.

"BP must state its plans for its parallel initiatives ongoing and alternative oil recovery, including establishing a timetable within 72 hours after receipt of this letter," says the letter from the admiral-cons Coastguard James Watson chief operating officer of BP, Doug Suttles, and dated Tuesday.

With the installation of a funnel, BP has accelerated since last week the recovery of oil leaking from the wells to 1,500 meters below the surface of the water for more than seven weeks. But the water continues to move towards the U.S. coast and crude oil continues to flow.

ALSO READ:

"BP buys keywords on the web to improve its image

"Obama roundly on BP

"Oil slick: BP has spent 1.25 billion dollars" BP: the cost of the spill was "impossible to predict"

Activity in the first quarter was strong for the group phamarceutique Sanofi-Aventis. Like all its competitors, the French group has benefited from the epidemic of influenza A, which boosted its sales activity of vaccines.

Sanofi-Aventis issued a net profit from growing 9.7% to 2.427 billion euros at constant exchange rates. It's better than expected. The consensus reached by Reuters stood at 2.28 rather billion. Reduced to an action, the net earnings from spring up 9.4% to 1.86 euro. Good performance also operational. Operating income rose 6.5% to 3.3 billion euros while sales reached 7.38 billion euros, up 3.9%.

So the vaccines business that has been the source of this performance fast cash now.This branch has indeed registered a 56% to 944 million euros, 413 million euros on sales of vaccines against H1N1.

Sanofi-Aventis confirmed its 2010 targets

The world number four from the pharmacy always think to do for all of fiscal 2010 to grow its earnings per share from continuing operations of between 2% and 5% at constant exchange rates, "unless major unexpected adverse events .

The group said in a statement that this forecast reflects the input of generic medicines market in 2009 and sales of H1N1 vaccines in the fourth quarter of 2009. They also include the expected impact of health reform in the United States.

ALSO READ:

"The laboratories are revolutionizing their R & D

The Wednesday session of the Board of Retirement Guidance (NRC) was less tense than the previous one, which saw employers and unions clash. It was yet to adopt the report with the forecast, unveiled yesterday, financing needs astounding: 72 to 115 billion "gap" year in 2050. These data were endorsed without major debate. The MEDEF has put away his previous criticism of the unrealistic projections and refocused his speech: these figures indicate the need to act, even if they return to full employment, "commented essentially the employers' organization.

The final text was hardly changed, notably to highlight more explicitly the effects of the crisis. She leads by 20 to 25 billion euros shortfall in 2020 for the whole pension system, which is half the funding needed for this date, according to the CFDT.While Jean-Claude Mailly disputes the projections themselves: "Nobody can make serious predictions in 2050. It's Nostradamus, there is more than the economy. "The Secretary-General FP – which is not in itself the ROC – found on Radio Classique that these forecasts would" serve to government propaganda " to impose painful measures. For its part, Solidarity did not dispute the data but interprets it this way: "The gloom is not appropriate, says the union. There is no fundamental problem, not the new situation created by the crisis. "

Two voices well insulated. Other reactions are all in the same direction: the need to act quickly. For the president of the NRC, Raphael Hadas-Lebel, these projections introduce "something new" compared to the previous (2007): "The challenge is immediate."Without effective measures, "the younger generations will have more confidence in the system," puts it on hold.

"We need not to short-term measures, timely, symbolic, but structural measures" hammered Francois Fillon. Otherwise, warned the prime minister, "the system would collapse under the weight of deficits". Neither the left nor the majority of unions have challenged this requirement. But all have reached a conclusion in which the government refuses: he will raise taxes to finance pensions. "The NRC shows that if we play only on length of service, private sector employees must work up to 72 years, said Jean-Christophe Le Duigou CGT union representative within the institution saving account payday loan. Everyone knows it's impossible.Eric Woerth I put the challenge to find the solution without increasing resources. "

Runs Preferred

For the CFDT, "income from property and financial investments will be further used '. Member of the ROC under the CFE-CGC (union frankly admits the need to work later) and president of the Caisse Nationale d'Assurance-old Daniele Karniewicz concurs: "This report shows that it will anyway additional resources to spend more points of GDP in retirement. Both the job. "

In a long gallery in the world, Martine Aubry, refused to yield "to an ultimatum," accusing the executive of "seeking to dramatize" the situation with figures as disturbing. The first secretary of the PS drives the point home: "Employees and retirees can not be the only underlying all efforts.Reforming pensions calls to introduce new resources without delay. "The first secretary of the Socialist Party – which says in passing that the Socialists defend" the maintenance of legal age to 60 years ", following statements far more ambiguous – believes that this is the "blind spot" of previous reforms: "Not the right has taken the trouble to make very high incomes, products of financial capital or annuity to the imperative of solidarity."

What does the management? The response of "Mr. Retirement MEDEF members of the NRC, is precise:" Among the resources, there are contributions on wages. We are strongly opposed to any increase in rates, warns Jean-Fran?ois Pilliard. This would be a contradiction. This would weaken the competitiveness of businesses and ultimately increase unemployment, thus aggravating the social deficits.Otherwise, the MEDEF is very clear: he did not rule on the taxation of individuals. "If the postponement of legal age and longer duration of assessment remain the preferred tracks of the MEDEF, Jean-Fran?ois Pilliard recognizes that "politically and socially, it comes to the idea of imposing person to work up to 72 years consistently.

ALSO READ:

"PAPER – The report of the NRC

"The tax benefits of retirees coveted

"Pensions: 72 to 115 billion" hole "in 2050

"Financial projections: three scenarios NRC

Neither seen nor known. For five years, just ahead of their quarterly publications, 18 major banks like Goldman Sachs, Morgan Stanley, JP Morgan Chase or Citigroup, have simply replaced the box for "debt", a figure from another, much smaller, according New York Fed. On average 42%, according to figures from the institution, reports the website of The Wall Street Journal (WSJ).

Why? Because they fear being punished by the stock market investors, who watch carefully the amounts of debts and, thus, the risk levels of a bank. And also because they fear that the ratings agencies are reviewing their notes down overnight pay day loans. What would frighten investors Exchange.

In fact, between two publications, the debts are upgraded in the accounts.In the end, nothing illegal, writes the WSJ Online, which emphasizes that while some complained of the banks confirmed this tinkering, representatives of Goldman Sachs, Morgan Stanley, JP Morgan Chase and Citigroup, have made no comment.

The spokesman for Bank of America has however stressed that "efforts made to manage our balance sheet size are suitable, and these strategies are compatible with the rules and accounting standards.

Two years probation and 375,000 euro fine. Such is the penalty required by the prosecutor in Nanterre cons Antoine Zacharias, CEO of Vinci from 1997 to 2006. Prosecuted for abuse of social good, Antoine Zacharias came to explain Thursday morning in court. His trial was held today and tomorrow before the fifteenth penal court of Nanterre. Specifically, it accuses the former CEO of Vinci have intrigued to receive a disproportionate amount. 12.5 million severance bonus when he left the company in June 2006, over two million annual pension from a salary of 3.3 million in 2004 and stock options with a greater potential value of 124 million.

To penetrate this mystery to date, the judges were interested in changing the membership of the Compensation Committee of Vinci in May 2004. Indeed, it is this committee that changed the method of calculating the salary of the big boss."It was good to renew the committee because some members like Alain Minc were benefits to Vinci, which deprived them of a form of independence," said Antoine Zacharias. A demonstration unassailable except that Zacharias had still left Alain Minc continue to serve on the board of the world leader in construction as the conflict of interest was the same.

Another element that is the problem, the consulting firm Towers Perrin had been consulted by the compensation committee on whether to remove ceilings on wages of Zacharias. He said it was negative, citing "inflation risks." But his advice was not followed or even communicated to the Board of Directors has decided to enforce rules that made Zacharias the highest paid boss of France.