News – Business & Economi

The European Commission on Friday gave the green light to unconditional takeover of Edison by EDF Italian electricity.

"In a decision dated May 10, 2012, the European Commission has approved without conditions the acquisition of sole control by EDF Edison under the European regulations on the control of concentrations, "said the EU executive said in a statement.

"This decision raises the condition precedent to the completion of this transaction related to obtaining permission from the relevant competition authorities," added the Commission. 

Upon publication of its turnover, Thursday, EDF said it has completed the first quarter of the takeover of Edison, for which the French electricity has increased to 0.89 its offer per share to minority shareholders. This new proposal represented for him a net additional cost of 25 million euros.

Cash advance is meant to provide short term relief to borrowers. Since these loans charge high interest rates, rolling over the loan may not be very easy.

Deutsche Telekom said Thursday it kept its annual forecast issued after the morning a current profit unchanged, reflecting a stabilization of its European operations, which still face a stable environment.

Earnings before interest, taxes, depreciation and amortization (EBITDA) came out unchanged at 4.48 billion euros in the high end of analysts' forecast whose consensus ranged from 4.32 to 4480000000.

"It was a very good quarter for us," said Chief Executive Rene Obermann said in a statement.

"We have made significant progress in many areas and we can now confirm our annual target."

The Bonn-based group predicted a current profit excluding items of 18 billion euros against 18.7 billion in 2011

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Incumbent President warns that Europe is still recovering and that if France relaxed its efforts to reduce the deficit, it would suffer the same fate as Spain. During a meeting place de la Concorde in Paris, Sunday, April 15, Nicolas Sarkozy called for the ECB to support European growth.

French President Nicolas Sarkozy said Friday that there was "more likely to collapse of the euro", but that Europe was "recovering", warning that any "loosening" in the reduction of deficits would convey to France "the fate of Spain."

"The risk of implosion of the euro no longer exists, but Europe is recovering, it is a reality and we have no room for error," the president said on RTL candidate. According to him, "the minute we let up the pressure on spending cuts, deficit reduction, debt, France experienced the fate of Spain."

"France has raised 8 billion before yesterday (Wednesday, ed) to finance its debt. It did so in a historically low, below 3%. Spain, at the same minute, borrows to finance its debt, twice the price of France. The same causes produce the same effects, "he said.

"During the 2007 campaign, Ségolène Royal, PS candidate, praised the example of Spain, and Mr. Holland was received" during the election campaign "by one Prime Minister (Jose Luis Rodriguez) Zapatero," former Spanish Prime Minister, Socialist. "I do not know if the Spanish example is still relevant," he added.

The Spanish Minister of Economy admitted on Monday that the country had fallen into recession for the second time since 2009, as investors demanded higher yields to buy debt securities the country.

Official figures on gross domestic product (GDP) of the Spanish first quarter of 2012 will not be published before April 30. The Minister of Economy, Luis de Guindos, however, said that the Spanish economy should be in the first quarter contraction similar to the last quarter of 2011, which was 0.3 % over the third quarter.

Two successive quarters of declining GDP correspond to the technical definition of recession, which was widely anticipated in Spain.

According to the minister, who gave an interview to El Mundo, the decline will however not as serious as feared.

"If you had asked me this question two months ago, I would have thought the first quarter of 2012 would have been much worse than the last quarter of last year. But this does not happen, "said Luis de Guindos

" For now, I see a first quarter like the last quarter of last year. "

These words fall in line with other recent statements by government members, suggesting Spain is in recession again

. The rightwing government of Mariano Rajoy has committed to undertake significant budget cuts. But, the markets, there is concern growing that the recession makes it impossible to goals of deficits and that Spain should seek international assistance in one form or another, to ; like Greece, Ireland and Portugal.

Yields of Spanish debt to ten years have passed Monday morning above 6% for the first time since the beginning of the year, while the Spanish CDS reached new records.

CRISIS MODE

"We returned a crisis mode," said Lyn Graham Taylor, a specialist rates to Rabobank. "It seems increasingly likely that Spain would have to resort to some form of rescue. If there is no intervention (ECB), there will be no ceiling to Spanish yields . They will just keep climbing. "

The Spanish economy is in contraction or stagnation since the bursting of the real estate to ; re in 2008. While housing prices are still falling, the survival of some banks and the new government's ability to control its finances are subject to debate.

The Popular Party (PP), which won elections in November against the Socialists in place, has taken a number of measures to reduce the deficit Spanish, one of the highest the euro area.

But confidence in the ability of President Mariano Rajoy of the Government to work within budgetary limits of the euro area was tested when the head Government has unilaterally lowered the deficit target in 2012 beginning in March, which was strongly up the risk premium on Spanish debt. 

The Minister of Economy also said that the government would take further measures to help small and medium enterprises solvent to obtain credit from banks.

Moreover, the government could get involved in finances too spendthrift regions as early as May, said on Monday with the government.

If Spain has largely missed its target deficit for 2011 is largely due to the expense of regions. The 17 Spanish autonomous regions must reduce its public deficit to 1.5% of GDP in 2012, against 2.9% last year.

A law is being voted in parliament to give the central government the power to punish regions that did not comply with the objectives of deficit narrowed.

Wall Street opened Friday declined amid concerns related to persistent budgetary situation of Spain and slowing growth in China.

In early trade, the Dow Jones dropped 0.46% to 12,890.00 points. The Standard & Poor's, wider, yielding 0.47% to 1,379.40 while the Nasdaq composite retreated 0.48% to 2725.50.

Performance of public debt to 10 years Spain has exceeded 5.9% after the publication by the ECB shows that Spanish banks have been steadily increasing their borrowing at the ECB in March.

Moreover, the gross domestic product (GDP) of China rose 8.1% annual rate in the first quarter, the lowest figure recorded in nearly three years.

"The number of Chinese GDP is weaker than expected while anyone had used it as pretext to rise yesterday," said Peter Boockvar, equity strategist for Miller Tabak & Co. 

Bank stocks are also oriented downward despite better than expected results published by JP Morgan Chase & Co. and Wells Fargo.

Both titles lose respectively 1.18% and 1.88%.

Google also declined, its quarterly earnings above the consensus being overshadowed by a further deterioration in the profitability of its advertising links. The action gives up 2.8%.

The Prosecutor General of the Supreme Court has definitively cancel the condemnation of Total over 12 years near the wreck of the tanker Erika off the Brittany coast in 1999, which caused ; a major ecological disaster.

This 24-year-old ship broke in two on 12 December 1999 in a storm and sank, spilling 20,000 tonnes of fuel on 400 km of the Breton coast, killing dozens thousands of birds and ravaging the seabed.

The prosecution based its opinion on the fact that the disaster has not occurred in French waters but "exclusive economic zone" (EEZ), and that the ship flew the Maltese flag, which would remove any possibility of prosecution in criminal justice. 

The Court of Cassation, the highest French court, which will meet May 24 and will make the final decision after a deliberate, however, is not bound to follow the opinion of floor, reading was revealed by Liberation and Ouest-France.

The public prosecutor asked the permanent cancellation without retrial, the conviction for "marine pollution" of the first French company announced after two die decisions at first instance and on appeal in 2008 in 2010.

In addition to the Total group, sentenced to a fine of 375,000 euros, Rina, the Italian maritime regulatory body which gave its airworthiness certificate to the ship (175.000 euro fine), Giuseppe Savarese, a former Italian owner of the ship, and Antonio Pollara, Italian former manager of the Erika (75,000 euro fine each) were convicted in appeal.

The lower courts have so far retained the right of other interpretations. The plaintiffs believe that the French territory was hit by the effects of the offense is sufficient to render the French competent judges.

THE ENVIRONMENTAL DAMAGE IN DANGER

The floor of the Court of Cassation also recommends abandoning the notion of "environmental damage" introduced in 2008 by the trial judgment that can demand compensation for environmental damage , as well as for moral harm, economic or property.

After a review of the complex thicket of international conventions governing shipping, the prosecutor's office believes it is impossible to legalize this notion. 

Corinne Lepage, one of the lawyers of the plaintiffs and former environment minister, said that it was here that a notice and hoped that the Court would not follow him.

"It would be a double disaster legal, not for the common (…) but in terms of law in general because it means that charterers could continue to take as Total boat was rotten like the Erika for reasons of pure greed and polluting the coast without nothing happens, "she said on RTL. 

NO EFFECT ON PAYMENTS

The folder is marked from the beginning by a very complex debate, shipping is governed by a series of international conventions and national laws very bushy, with idé e general far as the charterer of a tanker is in principle not liable criminally or civilly.

The Court of Appeal had also, on this point, not fully completed the first judgment, concluding that Total was guilty but not criminally responsible civilly.

This point has not had an immediate effect because Total has already paid in 2009 without possible cancellation of 170 192 500 000 compensation ordered in the first instance in 2008, 153 for the state. Rina has paid the surplus, and an "extension" decided on appeal where the total bill rose to 200.6 million euros.

Total said it would ask for a refund, whatever the final decision to the Supreme Court, where lawyers of some 80 civil parties, municipalities, regions, departments and advocacy groups the environment will plead.

French society has always said he was the victim of a "hidden defect" of the boat, never a thesis accepted by the court. 

Given another 200 million euros paid by the company in 1999, including the cleaning of beaches and pumping oil from the wreck, the total bill to stu ve for it to nearly 400 million euros, an amount limited compared with the annual profit of nearly $ 12 billion company.

ArcelorMittal said Tuesday it was extending indefinitely the closure of the voltaic arc furnace from its site of Schifflange Luxembourg, which has 282 employees.

The world's number one steel explained his decision by the depressed construction market in Western Europe, which are for products Schifflange, and said he could see no sign of significant improvement since the crisis that hit the area at the end of 2008.

Schifflange site specializes in the production of long carbon steel.

French President Nicolas Sarkozy announced earlier this month that ArcelorMittal would restart a blast furnace of its French site Florange (Moselle). But the group had then stated that it would be restarted in case of economic recovery.

The crude oil prices have come down Tuesday on fears related to Greece and world economic growth.

On the Nymex, crude for April delivery ended at 104.70 dollars a barrel, down 2.02 dollars or 1.89%.

In London, ICE Brent for delivery in April ended at 121.98 dollars a barrel, down $ 1.82 or 1.47%.

After the close of markets, prices continued to decline according to figures from the American Petroleum Institute (API) showing an increase of 4.6 million in crude inventories last week in the U.S. States, while the market was expecting an increase of 800,000 barrels only.

The official government figures (EIA) will be published Wednesday. 

Investors have also noted a breakthrough in the Iranian nuclear issue, which has somewhat eased fears of supply disruptions.

Iran will allow experts from the International Atomic Energy Agency (IAEA) to visit the Parchin military site, reported Tuesday the news agency ISNA. The spokesman of the foreign policy of the European Union, Catherine Ashton, for his part announced that the major powers were willing to resume talks with Tehran .

The main European stock markets opened on a rebound Friday in the wake of Wall Street and Asian markets, investors anticipating an abundant liquidity injection of long-term European Central Bank (ECB) the next week.

Around 9:15, the Paris Bourse gaining 0.53% to 3,465 points, Frankfurt and London takes 0.86% 0.18% advance. The pan-European Euro Stoxx 50 index rose 0.62%.

In Paris, Technicolor was down almost 5% after the announcement of an EBITDA down 5.9% in 2011 to 475 million euros. The action is Eiffage it head increases the SBF 120, the construction group has forecast a rise in net profit in 2012 after declining in 2011.

Banks are among the highest increases in Europe sector (0.86%). Deutsche Bank and Barclays gained 2.8% 1.4%. The Paris BNP Paribas and Societe Generale gaining 1.4% and 1.9%.

Lloyds Banking Group ahead by 1.3% after yet warned that its net banking income would decline in 2012, suffering, like his counterpart Royal Bank of Scotland, a heavy loss in 2011.

BASF takes 2.8% after announcing Friday that its results and its turnover increase this year thanks to a rebound in the second half.

Many analysts believe the weakness of the European economy will force the ECB to continue easing its monetary policy. The market is expected to lend some 500 billion euros to banks at its second financing package to three years scheduled for next week.

The pump price rose further, setting a new record. A slight decrease is expected, however, thanks to milder weather.

The price of gasoline in service stations continue to soar and reach new highs that could revive the debate on the control of labels at the pump with the approach of presidential elections.

According to data released Tuesday by the Ministry of Sustainable Development, the price of a liter of unleaded 95 euro rose to 1.5787 at the end of last week. That of unleaded 98 (whose sales are much lower in SP95) rose to 1.6184 euro. Both well beyond their previous records set only a week earlier (1.5640 euros / liter and 1.6022 euros / liter). Gas oil meanwhile rose to 1.4180 euro per liter Friday against 1.3960 the previous week. But it remains below its high of the year (1.4240 euro on Jan. 13), and its record in spring 2008 (1.4541 euro). These sales prices are national averages calculated by the Directorate General for Energy and Climate (DGEC) from data provided by service stations.

Since late 2011, gasoline prices prance record after record in France, powered by a dual effect of geopolitical tensions (Iran, Nigeria …) that keep crude oil prices at very high levels, and the weakening of the euro against the dollar, which boosts the cost of black gold once its converted value in the single currency.

The outbreak has already made waves in its presidential campaign. The Socialist candidate Francois Hollande proposed last month a "temporary blocking of gasoline prices," accompanied by restoration of the TIPP floating. The majority swept the idea of ​​such measures, described as "solution of the past".

Hope to decrease with rise in temperature

Interviewed on RTL on the soaring prices at the pump just before the announcement of the last record, the CEO of Total Christophe de Margerie said Tuesday that the best way to lower gasoline was to invest in finding new deposits. "The more oil, the more prices will be kept low," he said, criticizing the way the idea of ​​a price freeze. "For any product, it's not a good thing to lock in prices" and "this is automatically the state budget will suffer," he said. Total's boss noted that his group controlled a little less than 20% of French stations, and over half of them set their own rates.

He also estimated that prices could fall thanks to the current warm spell. "In the short term it may fall, when it's warmer, prices drop, today one of the reasons among others of higher pump prices, it's climate, weather extremes we known in recent times, "said Mr. de Margerie. "If the euro also firmed, it will drop, but overall as in all businesses, (the solution, note) is to get more raw materials," he said.

Diesel sales represent about 80% of French consumption of motor fuels, the unleaded 95 just under 15% and 98 unleaded around 5%.