News – Business & Economi

EADS confirmed Friday its objectives, driven by the commercial success of its subsidiary Airbus which he now expected more than 1,000 gross orders this year.

The European Group on Aerospace and Defense, Airbus' parent company, reiterated a target for 2011 growth in turnover and operating profit (EBIT) before special items compared to the stable level of 1.3 billion euros 2010, again on the basis of one euro to 1.35 dollar.

In the second quarter, EADS generated adjusted EBIT of 371 million euros in the second quarter, net profit of 121 million and a turnover of 12.082 million.

Analysts on average expected for the second quarter an adjusted EBIT of 317 million euros, a net profit of 160 million and a turnover of 11.598 million, according to the Thomson Reuters consensus I / B / E / S.

Airbus reached an adjusted EBIT of 87 million euros and a turnover of 8.299 million, respectively, against 144 million and 7.986 million expected.

Still no agreement between the White House and Congress on raising the legal limit of debt. The prospect of a failure to pay the United States is increasing. At the risk of creating a shock wave in global finance. View of the Capitol, seat of Congress. At 15 days of the deadline of August 2, elected Democrats and Republicans do not agree on conditions for raising the U.S. debt ceiling.

In Washington, the pressure is increasing on the White House and Congress. For two weeks the deadline of August 2 to raise the legal ceiling of U.S. debt, the elected Democrats and Republicans still can not agree on the terms of such recovery. Result: the rating agencies threaten to impair the sovereign rating of the world's largest economy.

Why is it necessary to raise the ceiling of U.S. debt? Benchmarks

The U.S. public debt is around 100% of GDP, the deficit to 10%. In comparison, the French debt amounts to 2.5 trillion euros, or 85% of GDP, the deficit and 7%.

The debt ceiling is a maximum level of indebtedness, level regularly adjusted by the U.S. Congress since 1917. He was raised ten times over the past decade. Last time, in 2010, this ceiling was increased to 14 297 billion. Yet the level of U.S. debt has reached this limit in May. It is bypassed, since only by technical adjustments Treasury. But beyond the August 2, if the legal limit of debt is not raised, the U.S. will no longer honor their commitments.

What happens if the debt ceiling is not raised?

Specifically, the U.S. will not lift the markets the amounts needed to pay interest and renewal of their debt. The state must pay U.S. $ 30 billion monthly interest on the debt. They also need to refinance in August more than 500 billion dollars of debt. So the U.S. is lacking on some of their deadlines, or they sacrifice other spending. The first hypothesis would create such a shock wave throughout the international financial system that seems to be excluded. To honor the interests of their debt, the U.S. will have to cut spending. President Barack Obama spoke a non-payment of pensions for retirees and veterans – the state must pay $ 23 billion on Aug. 3 to Social Security for these payments.The U.S. Treasury announced meanwhile that the state must cut spending by 40% overnight, which is equivalent to 1.5 trillion dollars, or 10% of GDP.

Why Republicans and Democrats do not reach an agreement?

Democrats and Republicans oppose the plan to reduce the budget deficit, which conditions any agreement on raising the debt ceiling. Barack Obama is committed to savings. He even agreed to cut heavily in social spending, including health insurance. But it requires an offsetting increase in taxes for the wealthiest households and businesses. What the Republicans, including elected officials from the ultra-conservative movement of the "tea party" categorically refuse. They advocate on their side a more drastic reduction of public spending, the ceiling of 18% of GDP against 24% today.

A compromise is still possible?

The White House thought Sunday still possible to find a compromise with Congress to raise the debt ceiling of the federal state. "Things have progressed in recent days," assured Jacob Lew, director of the Office of Budget, one of the negotiators of Barack Obama. "The American political life is punctuated by psychodrama between the White House and Congress, said Christophe Desta, Deputy Director of the CEPII. It is possible that both sides reach an agreement on August 1 at midnight." Especially there is a backup solution, proposed by Republican Senator Mitch McConnell: a legislative maneuver allows the president to veto the congressional vote against raising the debt ceiling. This veto can be overturned as a two-thirds majority, the Republicans have not.Barack Obama might as well take it upon himself to raise the debt ceiling to 2.5 trillion dollars by 2012. It's better than nothing.

The "AAA" of the United States is threatened?

Yes, even if the debt ceiling is raised. Moody's and Standard & Poor's, which put the U.S. debt under pressure last week, have both said they expected a "credible plan" to reduce the deficit and debt in the medium term. S & P expects a budget saving of 4000 to 5,000,000,000,000 dollars over the next ten years. Now both agencies are skeptical of the likelihood of an agreement on a plan of fiscal consolidation between the government and the Congress in 2012, the year in the U.S. presidential election. The possibility that the United States lose their triple A is not excluded. This would have potentially disastrous effects.Not so much for the United States, which will continue to support the markets without difficulty, although it should be at a higher cost, but for the financial system as a whole. The U.S. Treasury is in fact the investment vehicle most prevalent in the world. The total amount of "Treasures" held by institutional investors (governments, central banks, banks, insurers, etc..) Reached $ 13.6 billion in late 2010. The loss of "AAA", indicating that the U.S. debt is no longer safe, would lead to a devaluation of the value of Treasury bonds, so the asset portfolio of most international financial players.

Finance ministers of the euro area Saturday released a tranche of aid to Greece to 12 billion euros, thus avoiding in Athens to default on its debt in the coming weeks.

In a statement issued after a conference call of the Eurogroup, the ministers also said they continued their discussions on the establishment of a second aid plan for Greece, which could be a similar size to the forefront of 110 billion euros agreed in May 2010.

"The Ministers welcomed the progress made by the Greek authorities (…) In particular, the Ministers noted with satisfaction the adoption by the Greek parliament of key legislation relating to tax strategy and privatization, "it is written in the text.

"Therefore, the ministers endorsed the report of the Commission and the signing of the MoU," can we still read.

The payment of this tranche of aid, the IMF has yet to formally approve, was conditioned to a new austerity program of about 28 billion euros that the Greek Parliament adopted Thursday.

The sixth installment of aid, from 8 billion euros, must now be paid during September but the Europeans hope to tie up by July 11 the second aid plan, which they hope to involve banks, insurance companies and private investors.

"Consultations with the Greek creditors are underway to define the modalities of voluntary participation from the private sector in order to achieve a drastic reduction in annual funding requirements of Greece, while avoiding selective default" the statement said.

The Paris Bourse pauses at the opening Friday after significant progress in the four previous meetings in favor of easing fears about the financial situation of Greece.

At 9:30, the CAC 40 index gave up 0.24% to 3972.48 points after ending the day for the first time since May 30, above its moving average 50 days, then at 3941.89 points .Since the beginning of the week, the benchmark index of the Paris wins again about 5%.

As for values, Renault and Peugeot lose respectively 1.24% (biggest drop in the CAC 40) and 1.1%, declining from 12.6% in June sales of new cars in France feeding on profit taking the automotive sector.

CGG Veritas shows the largest decrease in the SBF 120, with a decline of 3.39% to 24.54 euros, hurt by Goldman Sachs's decision to withdraw the value of its Pan-Europe Buy List (list of values ​​pan-European deals, purchase) and to lower its recommendation to neutral.

Other major European markets are also falling, London and Frankfurt declined by 0.12% and 0.24%.Of the European indices, the EuroStoxx 50 and yields 0.2% Eurofirst 300 lost 0.17%.

The euro edged up 0.2% against the greenback at 1.4523 dollar.

A barrel of U.S. light crude was down 0.78% to 94.68 dollars.

Despite the anger in the street, the project received 155 votes out of 300. The country will be able to receive the last installment of the aid from the EU and the IMF and avoid the default.

The austerity plan for the period 2012-2015, Greece needed to secure new funding from its creditors, but strongly contested in the streets because of the sacrifices it represents for the Greek people, was adopted Wednesday by Parliament.

While police continued to make shots of tear gas in front of the parliament which houses since morning demonstrators opposed to the project, the plan finally received 154 votes and a socialist dissident voices on the right, the 298 deputies present ( of 300 seats) in parliament Wednesday, according to an official count. 138 members of the opposition of left and right voted against.

Members who voted one by one to the call of their name and district must also vote Thursday on the implementing legislation which establishes the means to achieve budget savings in the plan by 2015.

A Socialist deputy Panayotis Kouroublis, voted against the plan, but a conservative colleague on the right has defied the instructions of his party in New Démoratie and supported the plan. Five members of the center-right who defected for months the main opposition party of New Democracy voted white.

Immediately after the vote, Prime Minister, George Papandreou, said the group's exclusion of Mr Kouroublis, reducing to 154 votes out of 300 most of which now has the socialist government, faced on Thursday to a new crucial vote on law enforcement's master plan voted on Wednesday.

Mr.Kouroublis had said shortly before the vote that he "could not accept blackmail" exercised by the euro area ", which referred to the probability of bankruptcy of the country to urge Athens to adopt a plan deemed" unfair ".

His colleague Alexander Athanassiadis Socialist, who had previously stated publicly that he would vote against the project changed his mind, saying he was "convinced" by the speech of Prime Minister George Papandreou in the gallery.

He is a member of the Department of Kozani (NW), where a large unit of the public electricity company, the DEI whose planned privatization has faced strong opposition. DEI's employees on strike shall, moreover, to power outages affecting wild for a few days randomly neighborhoods of large cities.

"Framework medium-term fiscal strategy," the new plan, dictated by the EU and the IMF, provides savings by 2015 from 28.4 billion euros and mass privatization to bring 50 billion euros .

Since morning, the whole of Europe had their eye on Athens. This project was a precondition imposed by the euro area for further financial support to avoid a default of Greece, which would put at risk.

The finance ministers of the euro zone must meet July 3 to decide the payment of a fifth installment of the loan assistance of 110 billion awarded last year to Greece.

Wednesday, from morning police fired tear gas before the Greek Parliament to clear the protesters, however, fewer than in previous events, but more determined.Protesters had arrived early Wednesday to try to prevent at least symbolically vote for the project, surrounding the parliament.

From 0500 GMT, police conducted the first firing of tear gas at small gatherings trying to block the main roads around Athens.

The general strike started Tuesday 48H also disrupted for second day air transport, ports also immobilizing the ferries to the islands. Banks and pharmacies are closed, the public sector paralyzed.

In addition to the persistent pressure from the EU, including President Herman Van Rompuy said Tuesday that the hours "ahead are decisive" for Greece, Greek MPs also received a warning from the new executive director of the International Monetary Fund Christine Lagarde, who started his appointment as a call for "national reconciliation" policy in Greece.

CFM, a joint venture between General Electric and Safran specializes in aircraft engines, said Thursday it earned $ 11 billion in orders for its engines LEAP-X1A, which will equip the Airbus A320neo.

This aircraft will enter service in 2015, has by far been the best-selling model during the Paris Air Show.

Earlier in the day, CFM said to have accumulated during the show $ 4.2 billion of orders for its CFM56-5B and CFM56-7B engines, which power the A320, respectively, and the Boeing 737.

Around 16:30, the title Safran lost 0.81% to 28.86, outperforming the SBF 120 (-2.22%) and industrials index grouping the European

(-1.62%).

Foster's on Tuesday rejected a cash offer of SABMiller in the amount of 9.5 billion Australian dollars (7.0 billion), considering the premium low.

The group based in Australia said it had received an offer of 4.90 Australian dollars per share. Monday, the title was closed at 4.53 Australian dollars.

SABMiller said Monday will continue its offensive, considering its attractive offer for shareholders of the target.

The brewing industry is facing rising commodity prices and a slowing growth in mature markets that pushes its players to seek new growth drivers.

The offer raises the price of its shares by nearly 13% at the opening of the Sydney Stock Exchange.It closed at 5.14 Australian dollars, an increase of 13.47%.

"It is certainly a first phase. SABMiller is a large group at international level and has significant margin over its competitors," said Jason Beddowle CEO of Argo Investments.

Foster was the target of several takeover bids since the announcement last year of its proposed sale of its wine production, which forced her to spend nearly $ 3 billion Australian dollars in expenses during the years.

In addition to its flagship brand, Foster's has the Victoria Bitter, Carlton Draught and the Cascade.

This is what "Brussels said Friday. The process would be voluntary on the part of creditors.

The euro area "analyzes the feasibility of rescheduling" of the Greek debt on a voluntary basis by creditors, said Friday a spokesman for the European Commission.

"We discussed these days an initiative of the Vienna style", where the creditor banks of Romania undertook in 2009 to maintain their maturing loans to that country, then faced a serious crisis, Amadeu Altafaj said Friday, the spokesman for the Economic Affairs Commissioner Olli Rehn.

"In this context, we also examined the feasibility of a voluntary debt rescheduling or reshaping" of the debt, he said.

But he insisted that it got on "course provided extremely important that this does not create a credit event," namely "a debt restructuring" that could create panic in the markets.

Intense negotiations are underway to find a solution for involving private creditors in a new plan of aid to Greece without triggering a default, said Monday Jean-Claude Juncker.

The chairman of the Eurogroup, speaking before the Committee on Economic and Monetary Affairs of the European Parliament in Strasbourg has also warned that privatization does not solve all the problems of Greece and a political consensus was more necessary than ever in the country.

"With the ECB, we are working on a formula that does not involve a final determination and negative by the rating agencies and that does not involve the finding of a defect," said Luxembourg Prime Minister.

"These solutions are under consideration.The negotiations are difficult and burning, "he continued.

The European Commissioner for Economic and Monetary Affairs, Olli Rehn, said that this solution would be found in time to June 20

The rating agency Fitch said Monday it would consider an exchange of debt, even voluntary, as a credit event.

A credit event could enforce payment of insurance instruments such as CDSs, an event potentially serious consequences that oppose the European Central Bank and many countries.

Greece will probably in July a new tranche of aid from its international donors, enabling it to avoid default, in exchange for a new package of austerity measures.

ATHENS BUDGET ON TRACK

After considering for a whole month implementation by Greece of the first rescue plan 110 billion euros decided in May 2010, inspectors for the Commission, the International Monetary Fund and the European Central Bank said Friday that Greece had made considerable progress but need to accelerate structural reforms.

The Greek Finance Minister George Papaconstantinou said that Athens would be unable to meet its obligations from mid-July if the government did not get the next tranche of 12 billion euros as part of bailout EU and IMF, which was originally scheduled to be released June 29

According to the Greek newspaper Kathimerini, the new rescue plan for three years for Greece, which will therefore go up to 2014 will amount to 85 billion euros, slightly less than half will be provided by the EU and IMF.

As Jean-Claude Trichet, president of the European Central Bank (ECB) Jean-Claude Juncker said Monday that Athens had made progress in implementing its program of fiscal adjustment.

"The Greek government is on track to meet its budgetary targets for 2011," he told MEPs, while preventing the privatization program of 50 billion advanced by the Greek authorities would not solve all the problems of countries.

Jean-Claude Trichet said that the use of a debt restructuring Greek – solution that many analysts consider inevitable – is not appropriate as the country maintains its reform program announced, including urging Athens to conduct a privatization process credible and rigorous.

Jean-Claude Juncker and Olli Rehn also again called on the Greek political forces to reach a broad consensus on new austerity measures.

"If this is possible in Ireland or Portugal, why it would not be in Greece?" Asked Olli Rehn.

Prime Minister George Papandreou said he would not rule to consider holding a referendum on those measures.

Boeing is facing financial difficulties as part of its program to build the 787 Dreamliner, said Thursday Chief Executive Jim McNerney.

He added that the production of this device would not be profitable for some time, without revealing a timetable.

The budget for this unit was in fact far exceeded and the delivery was delayed for about three years due to social conflicts and false notes in the global supply chain.

The company expects, however, deliver its first aircraft 787 in the third quarter. About 830 orders were received for this device.

The title of Boeing advanced 0.41% to 1630 GMT.