News – Business & Economi

The European Commission gave on Thursday, with the revision of the Markets in Financial Instruments Directive (MiFID) and market abuse (MAD), launched a very heavy fall in the regulation of the finance sector .

Other texts to be published in the coming weeks include the third draft of the regulation of rating agencies, a European framework for the management of bank failures or closer supervision of the audit activity, not to mention ongoing negotiations on derivatives and the transposition of European agreements known as Basel III on bank capital.

The new rules on markets in financial instruments cover both the activities of banks in terms of brokerage, consulting, trading, portfolio management and underwriting services.

They also regulate the operation of traditional exchanges and other trading platforms – also called "multilateral trading facilities."

The rules on market abuse for their prey to cases of insider trading and market manipulation.

Eager to get tough practices, the Commission proposes a non-binding framework calling on member states to integrate criminal sanctions in their national legislation for people found guilty of such abuses.

In a statement, the Commissioner for the Internal Market, Michel Barnier, has insisted that the legislation met the market developments in recent years.

"The financial markets have to work to the real economy and not the other way (…) The crisis has shown that certain activities and financial products reached a degree of complexity and opacity changes as have become indispensable" , he said.

MARKET DEVELOPMENTS

Here is a list of the main proposals contained in these texts:

* Outside the MTFs and regulated markets, "organized systems of negotiation," in which particular exchange traded derivatives contracts will now be covered by European regulations.

* Algorithmic trading and the high frequency will be better framed to take into account the systemic risk they represent.

* The text on markets in financial instruments will also seek to increase the transparency of trading on equity markets, including the "dark pools".Bond markets and derivatives too should meet the rules of transparency.

* Supervision and oversight of derivatives markets on commodities will be increased. In coordination with the new supervisor European markets, national supervisors may prohibit certain products when they undermine investor protection, financial stability or proper functioning of markets.Operators have an obligation to report their positions and position limits will be introduced in case of market disruption.

* The rules for portfolio management, investment advice and offers of complex financial products are also strengthened.

* In terms of market abuse, the new regulation also seeks to adapt itself to the recent market now covering instruments traded on alternative platforms and OTC.

* Regulators will have increased access to information needed to detect and punish market abuse.The latter will be able to require disclosure of data from the telcos and access to buildings or private documents when a suspected market abuse.

* Finally, the range of sanctions is itself also revised upwards. Fines will not be less than the benefit obtained from the market abuse and may be up to twice that amount. The Commission also proposes to harmonize the national sanctions in this matter by criminalizing the countries where they are not considered as such.

Erste Group Bank said on Monday forecast a loss of 700 to 800 million euros in 2011, due both to past depreciation of the Romanian and Hungarian subsidiaries and reducing its exposure to the euro zone, which makes plunge under the Austrian bank.

By 10:30 GMT, action Erste Group fell by 13.07% to 17.99 euros while the index grouping the European banking stocks were unchanged.

The number two industry in Central and Eastern Europe also said that postponing the repayment of public funds and that it would pay no dividend for 2011.

"It's obviously disappointing news.We believe today's announcement is likely to trigger a cycle of lowering note and renewed concerns about the capital, in the light of the deteriorating business environment in Eastern Europe " commented GFI Research Institute.

Erste said that Hungarian law allows customers to repay loans taken in foreign currency at lower rates than the market would result in a loss of 500 million euros for its local subsidiary, which will thus 600 million euros of fresh capital.

The other Austrian bank Raiffeisen also plans to inject new capital into its Hungarian subsidiary as a result of legislation passed in Budapest.

In Romania, an economic recovery slower than expected will have the effect to Erste impairment pre-tax 700 million.

Erste also said to have reduced its exposure to sovereign debt of Greece, Portugal, Spain, Ireland and Italy at 600 million euros at end September, 95% of its exposure was valued at market value.

She said its Tier 1 ratio "core" would remain unchanged at 9.2%, operating income contributing to the compensation of special items.

The group's management said they do not need to raise additional capital or to receive from the State to ensure its compliance "Basel III".

In Berlin, the worlds of energy and finance very seriously discuss the creation of a foundation that would take over the management of German nuclear power plants to improve the investment capacity of major operators in the renewable. A nuclear power plant in Bavaria.

The revelation of the existence of a project to create a "bad bank" to manage public the twilight of the 17 German nuclear power plants causes a controversy surrounding the funding of the output of nuclear power. In its edition of Friday, October 7, the business daily Handelsblatt confirmed that it held the plans for such a project. Developed by the investment bank Lazard, it is currently under discussion between government and big energy companies.According to the newspaper, the Bad Bank would take the form of a foundation to which we would transfer the management of power plants owned by EON, RWE, Vattenfall and EnBW, the four major German operators of nuclear power. The ultimate goal would be to delegate the responsibility of dismantling the foundation to restore financial credibility of their owners and thus increase their ability to invest in renewable energy.

The dismantling will cost 28 billion

The plan, which is still called "secret", poses the problem of financing the abandonment of nuclear energy in Germany. This abandonment, which requires to increase the share of renewables in the energy mix currently 20% German and 35 in 10 years, should cost around 250 billion euros, according to estimates by the state bank KfW.In ten years, Germany will therefore have to adapt its grid to the mode of decentralized production of renewable energy. Expensive sites such as strengthening the north-south but also the construction of many regional lines to low voltage are on the program, as well as the construction of new gas power plants and cogeneration and the erection of multiple wind farms and PV. Meanwhile, companies but also individuals should invest more in equipment and housing less voracious.Moreover, the cost of phasing out nuclear power plants was assessed at least 18 billion euros, which will add at least 10 billion for reprocessing and storage of radioactive fuel not included.

The development bank KfW has provided 100 billion euros over the next 5 years to meet the needs of corporate finance. But they and their shareholders, will also participate to a large extent these investments. However, the financial position of the four major energy producers in Germany has not improved since Angela Merkel urged the country to the output of nuclear power. The cessation of all nuclear power plants by 2022 will deprive them of lucrative profits. They also will have to invest heavily in non-polluting power plants and the production of renewable energy.

A very controversial Bed Bank

The predicted fall in profitability is not made to attract investors. Already, rating agencies have downgraded to EON and RWE, which in future will have to pay more for the money. Hence the idea of ​​the foundation. In the scenario described, operators freely transfer their plants in the foundation. It would become responsible for their management and their dismantling and storage of fuel. In return, the Foundation would benefit from the income generated by the plant operating until 2022. Nearly 15 billion euros. Or 13 billion euros less than the cost of decommissioning.The difference would be borne by the state in exchange for a recognition of debts that can not be deleted if these companies are investing in renewable much higher.

This is only for the moment that the outline of an unofficial plan but some find difficult to avoid. Michael Vassiliadis, president of the powerful union IG BCE Energy, believes it will be difficult to meet the challenge of phasing out nuclear power by passing capacity of large energy companies. But Ms. Bärbel Höhn, vice president of the Bundestag parliamentary group environmentalist, does not share this view: "I have rarely seen a plan as naive and transparent.This project led to the foundation of the risks that outsourcing will return to offer a lot of money to EON and RWE, "she said by stating that the plant operators had long been provisioned as are needed to decommissioning. As for Hermann Albers, President of Federation of the main companies in the wind (Bundesverband Windenergie), it considers that these plans are outrageous because again, "they are negotiated in secret" and "it is the consumer who will costs ":" The turning point energy can do without monopolistic structures. Its interest lies in the fact that it will promote a decentralized supply and promote competition, "he said.

Barack Obama lashed out at banks, on Thursday at a press conference at the White House, justifying the growing popular discontent against economic inequality.

The Democratic president, including the possible re-election in November 2012 will be played primarily on the fight against unemployment, said the Republicans had in the first place, to support the economy back on measures of financial regulation that his government s is used to push hard.

Barack Obama also said understand the frustration of "outraged" that manifest several days on Wall Street and in other cities of the United States.

"These demonstrators expressed a more widely shared suspicion towards the way our financial system," said Bush.

"We still see some of those who acted irresponsibly fight efforts to end abusive practices," he added.

Barack Obama said his financial reform known as the "Dodd-Frank" was precisely designed to prevent abuses of Wall Street.His way to insist on the subject suggests that this issue will be among the major themes of his presidential campaign next year.

"To have a sound financial system requires that banks and other financial institutions to compete on the basis of better service, better products and the best rate," he said.

"We can compete through hidden fees, deceptive practices or cocktails of derivatives that nobody understands and that expose the entire economy at huge risk.That's why Dodd-Frank was designed. "

Barack Obama also expressed regret that U.S. banks have recently raised their commissions, suspecting a practice necessitated by the inability to raise other rates. This is not a "good practice", he said, and it is "not necessarily just for consumers."

The left won Sunday for the first time under the Fifth Republic by an absolute majority by winning the 25 extra seats it needed, seven months before the presidential election in France. View from the Senate at the Palais du Luxembourg

The left won 265 Sunday in September 2011 a historic victory in Senate elections by toggling the Second Chamber of Parliament in his camp, for the first time of the Fifth Republic, causing a political upheaval in seven months of présidentiellme. "For the first time, the Senate knows alternating" said the boss very moved senators PS, Jean-Pierre Bel. While all the results were not yet arrived, he announced that the left had "175 senators, that is to say beyond the majority". "The change is underway," he added.François Hollande, a candidate for the PS primary, leading in the polls, saw "a breakdown of the system Sarkozy", "prescient" in 2012.

As in the day, the results are severe for the majority who have fallen. The Minister of the City, Maurice Leroy, beaten, won an eighth seat on the left in Paris where the UMP holds only two senators. A gain of one seat to the left in the President's own Department of the Senate UMP Gérard Larcher. Loiret, Isère, Nord, Pas de Calais, Hauts-de-Seine, Val de Marne, Oise, Manche, Pyrénées Orientales … the list of departments where the left rose grows signing a very strong push for the opposition. "More than two senators UMP in Paris is a historical and political defeat," he triumphed Anne Hidalgo, Deputy PS first mayor of Paris, Bertrand Delanoe.Pierre Charon, suspended from the UMP to dissent and still elected, made a triumphant arrival in the Senate.

Progresses across the left

The re-election in the first round in the Loiret department traditionally right out of Senator Jean-Pierre Sueur and that, in the Morbihan, the outgoing Herviaux Odette, also PS, gave the signal for the win at midday . In the wake of victory in the Pyrenees-Orientale President of the Regional Council of Languedoc-Roussillon, "frêchiste" Christian Bourquin confirmed the trend.This is "a historical progression to the left and an unquestionable sanction for the UMP," said the PS first secretary of Acting, Harlem Désir, came to the Senate shortly after the primary candidate for the PS and Martine Aubry that of François Hollande.

This victory is particularly favorable for the latter, a large majority of senators voted for PS having the member of Corrèze. Has lost the right departments since it held almost always as the Lozere. "The left is progressing everywhere, you feel a groundswell," assured of Public Sénat, the Socialist Party national secretary in charge of elections, Christopher Borgel. It is a defeat all the more important that there is "a denial of the right of the electors," added Michel Delebarre, Mayor of Dunkirk and PS top of the list in the North where the left won a seat and missed the sixth to one vote.Gérard Longuet ministers (Defence) and Chantal Jouanno (Sport) were elected.

At seven months of the presidential defeat sounds like a very bad signal to President Nicolas Sarkozy. Saturday will be the election of the President of the Senate and a majority of the left should result in a leftist president. Catherine Tasca should try his luck against Jean-Pierre Bel, which theoretically should succeed the perch to Mr. Larcher. The left Sunday's success to his victories in recent local elections (municipal, regional, cantonal). The right wing has suffered from its strong divisions and strong discontent of local officials, who have unwelcome territorial reform and consolidation of Commons forced march led by the prefects.

The president of the AMF considers that the situation in the markets is "very, very worrying." He said a collapse of the entire global economic system is to be feared. Jean-Pierre Jouyet said that "it is not in a better situation than in 2008."

The chairman of the Financial Markets Authority (AMF) Jean-Pierre Jouyet spoke Friday of "situation, very, very worrying" in the markets and expressed concern of a "risk of systemic crisis" able to dive all the world into recession.

"We are in a State of Crisis" with "before us, the risk of systemic crisis", that is to say a collapse of the entire global economic system, noted Mr. Jouyet, questioned France Inter.This is due to "a very high debt in Japan", the "U.S. imbalances that are extremely deep despite recovery plans that do not give great result" and, in Europe, "the sovereign debt crisis," he said former Secretary of State for European Affairs.

"We need urgent action at the international level," he said, hoping that "the Europeans, Americans and the International Monetary Fund (IMF) will at least get to make a shared". "This is expected by the markets," he said, "is to see a little clearer." "We are in a situation of a crisis of debt in 2008 was characterized by a rise in private debt, which today is characterized by a rise in public debt, government deficits and imbalances in all the world economies, "he summarized."It turns out that Europe is the epicenter of this crisis." "We're not in a better situation than in 2008," he warned.

Jean-Pierre Jouyet also found that the introduction of a tax on financial transactions, to which he was in favor, could worsen the current liquidity crisis in the euro area. "I am in favor of a tax on financial transactions" but "we must choose when it is made." But "what I said – and I take into consideration in my work – is that today, it will further increase the reluctance of investors, including Anglo-Saxon and American, to respect to the euro area, "said the president of the AMF.

After Paris and Berlin were in favor of such a tax in August, the summit of the major developed and emerging countries of the G20 in Cannes (South of France) should address the issue in early November.Britain and the United States were opposed to establishing such a mechanism. A transaction tax, such as those popularized by the economist James Tobin, is to take a very small percentage of financial flows ..

Obama says he wants to put 447 billion dollars on the table for the fight against unemployment. Will he able to implement its plan? The proposed measures can they walk? Uncertainties abound. Barack Obama October 31, 2010.

Unemployment remains stuck above 9% in popularity to the lowest since his election … For Barack Obama, the fight for employment is the decisive battle of the last years of his term. He then presented a plan Thursday, the American Jobs Act, which promises to spend 447 billion dollars, 300 billion euros, to create and maintain jobs. And despite a budget deficit and a debt of a magnitude abysmal. Is a financial effort of the same level as the Stimulus Plan of 2009.It was 787 billion over two years while the effects of the new plan should focus on 2012.

Mark Zandi, chief economist at Moody's Analytics, quoted by Bloomberg as he believes could have a greater macroeconomic impact. Additional growth is estimated to be 2 percentage points and a one-point drop in the unemployment rate … provided it is fully implemented. For the first unknown of this plan is whether it will be voted on by the Republicans who have displayed more hostility. Aware of the political balance of power, Barack Obama has also favored measures likely to receive support, as this is tax cuts.He also insisted that Republicans had proposed similar measures.

Priority to the reduction of social charges

Obama can talk about his plan as a shock, its revenues have nothing very original. More than half of the plan – $ 240 billion – be used to offset reductions in payroll taxes owed to Social Security.

Employees could then see their 2012 employee contribution rates to 3.1% instead of the already improved rate of 4.2% they receive until the end of the year. Knowing that the standard rate of 6.2%. The objective here is to stimulate activity through consumption by giving purchasing power to them.The problem is that Americans are heavily indebted and some economists fear that some of this money ($ 175 billion, averaging $ 1,500 per family) rather don not in bank vaults in stores .

Companies are not forgotten. Obama breaks new ground even in the matter by proposing to cut the same way the employer contribution rate by half to 3.1%. A reduction that would apply within the first 5 million in payroll to benefit small first. All for a $ 65 billion.

Last "gift", also for companies: a total exemption from social security in case of creation of positions or salary increases. And within the limits of an increase of $ 50 million in payroll.So this is a direct incentive to job creation or wage increases (5 billion).

In total, the White House believes that such measures could create 50,000 jobs per month. Or 600,000 over the year 2012. That compares with the average loss of 35,000 jobs per month in the last quarter. But the New York Times also points out that companies must be able to offer more than 100,000 jobs each month just to cope with population growth

New aid to the unemployed

Here the opposition of Republican likely to be greatest. The White House wants to implement because it boasts as "the most innovative reform of unemployment insurance for 40 years."It aims to maintain the payment of allowances for part-time employees, trainees or unemployed entrepreneurs and set up a special tax credit for hiring long-term unemployed. Added to a fund to finance initiatives for the return to work in the direction of the unskilled and disadvantaged.

$ 140 billion of public investment

These measures Keynesian will involve upgrading transport infrastructure to the tune of $ 50 billion, and the creation of a National Infrastructure Bank. Obama hopes to win in each case the support of elected Republicans who have requested by a line of railway, is a bridge …A strong emphasis on education with the project to upgrade at least 35,000 public schools (30 billion) and freeze up to 280,000 job cuts for teachers, police and fire (at a cost of 35 billion). Not sure that this component easily passes the Cape of Congress.

Finally, two obstacles remain to the effectiveness of the plan of Obama. The funding, first. The U.S. president said he would be fully resolved in the process of reducing the long-term debt of some 1.5 trillion dollars. Task that was entrusted to a bipartisan committee that must report its findings in November. Barack Obama has promised to unveil his own proposals September 19, in the matter.

Then, the American Jobs Act, even if passed in its entirety, is not the absolute anti-crisis weapon. Its effectiveness will depend upon the strength of the economy.Thus the decline of social enterprises, a key measure, may well be theoretically effective, it is not enough to convince an employer to hire if the demand is not there. But the latest indicators in this regard are contradictory. For if consumer spending rebounded in July, trust her, fell in August to its lowest level since November 2008.

The UMP is considering the possibility of lowering unemployment benefits for top earners. Medef protests. Update on the controversy. The compensation of executives in unemployment in the viewfinder of the UMP. What exactly is the proposal of the UMP?

Speaking of "proposal" is a bit premature. It is rather a reflection outlined by Bruno Le Maire in an interview with L'Express, in the form of question: "Can we keep a system of unemployment benefits among the most generous in the world, especially for executives with high salaries? "asked the Minister of Agriculture, also supports the party platform for 2012. But this idea does not come from nowhere. It was brought by Peter Méhaignerie early years, in an interview with Marc Landre, Le Figaro journalist and host of the blog The Cartoon Network.And quickly put away in the closet.

Why is unemployment compensation cap frames?

Because the government does not know where to save money, and that the financial situation of the UI is poor: 10.5 billion euros of debt accumulated by the end of the year, and a deficit of 2 billion for 2011. Yet some executives, those who earn 11,000 euros a month and can accommodate up to 6000 euros per month. And for two years. The temptation is great to scrounge money from this population, especially as our European neighbors, the limits of compensation are much lower: 1400 in Spain, Germany 2200 or 1000 in Italy, as Marc Landré points.

It would still not a measure of social justice?

Difficult to present it as such … Managers reported more than they cost to unemployment insurance, as confirmed Unedic.Bernard Van Craeynest, the President of the CFE-CGC, for his part said on BFM TV "they account for 30% funding of unemployment insurance and consume roughly 15 or 17%." In fact, they are less affected by unemployment than other occupational groups and the contributions they pay are higher, since these contributions are a fixed percentage of salary and wages are higher. Lower the contribution limit would create a mechanical reduction of these contributions, and crop revenue so the UI, as outlined Laurence Parisot, president of MEDEF, against the proposal. Unless you do not reduce contributions … "It would be discrimination, an analysis of the trade union CFE-CGC. And it would be questionable in court for breach of equality, the principle is that you receive based on what you contribute."

Failures and start-ups fell by 3.5% and 21% in the first half in France over the same period last year, Coface said on Monday.

The decrease is due creations, according to the credit insurer, for a lesser interest in the status of entrepreneur.

The number of failures has reached 32,655, a level that is far from the pre-crisis, when the failures did not exceed 30,000 a semester, said Coface.

Only five sectors are increasing the number of failures, including transportation (9%), food (7%) and distribution (5%). Pharmaceutical, energy and agriculture and fisheries recorded in contrast to declines of more than 20%.

The number of jobs threatened by bankruptcy decreases by 7% over the first half of 2010.The failure of a company threatened 3.3 jobs on average in late June against 3.5 in late 2010.

The half saw a decrease of 19.6% in the number of creations, with nearly 320,000 new entities created, including 21% for businesses, which represent 85% of all creations.

The U.S. economy in the second quarter growth initially announced lower, weighed down by business inventories and exports despite the upward revision to consumer spending.

The second estimate published Friday by the Commerce Department, the gross domestic product (GDP) of the United States rose by 1.0% over the period April to June, against 1.3% in preliminary data.

Analysts had expected a growth rate revised to 1.1%.

"This is entirely consistent with what we expected and the slowdown was observed during the first half of the year.We expect some downward revision, which reflects the headwinds that the recovery is facing, "Judge Paul Ballew, Nationwide Insurance.

This figure revised down is mainly due to lower inventory accumulation by firms estimated initially. Companies saw their stocks increased $ 40.6 billion, against 49.6 billion according to preliminary figures, subtracting 0.23 percentage point growth rate.

GDP was also impacted by lower exports announced, with an increase of 3.1% against 6.0% in the first estimate.Imports rose 1.9% (revised from 1.3%), which has almost wiped out the contribution of foreign trade to growth, previously amounted to 0.58 percentage point.

"Net exports and stocks seem to be the big piece of this downward revision.Overall it's still consistent with a recovery very soft so these figures do not generate optimism. "

The bad news, however, have been offset by consumer spending, which reflected an increase of 0.4% (revised from 0.1%).

Final sales rose 1.2% against 1.1% in the first estimate and consensus of 1.0%, while business spending were revised up to 9.9% as against 6 3%.

The PCE price index rose 3.2% over the quarter (revised from 3.1%) after 3.9% in the first quarter. Economists surveyed had forecast 3.1% between April and JuneAs for the price index of basic ("core"), which excludes volatile items and is followed closely by the Federal Reserve, it reflects a slight lull on the inflation front with an increase of 2 , 1% (revised from 2.2%).