News – Business & Economi

International creditors of Greece did not convince the leader of the Conservatives Saturday, Antonis Samaras, engage in writing for the austerity measures required for new aid.

The leader of New Democracy, one of three teams who sit in the national unity government led by Lucas Papademos, reiterated that his word was enough and that a written guarantee was unnecessary.

European leaders are concerned that the parties are reluctant to implement unpopular reforms before the elections on February 19.

Antonis Samaras has already announced that it was an absolute majority at the polls to renegotiate the terms of the European aid plan.Creditors are willing to block eight billion euros needed to Athens to avoid default next month.

Representatives of the European Commission, the European Central Bank and the International Monetary Fund (IMF) also met with former Prime Minister George Papandreou, leader of the Socialist Party (PASOK), which had no comment.

They should also meet Sunday with Georgios Katzaféris, leader of the far-right party Laos, the third member of the coalition.

"THERE WILL BE A SOLUTION"

In an interview with the weekly Sunday Real News, the leader of Laos suggests that it will sign a written undertaking.

"Do we need the money or not? If the answer is no, we do not sign.

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PPR reported Wednesday a very strong sales of its luxury brands in the third quarter, while its retail brands have suffered from the deterioration of the economic environment in France and southern Europe.

The group, which owns Gucci, Puma, Fnac and Redcats, saw sales grow by 8% to 3.86 billion euros, higher than the consensus of analysts polled by Reuters (3.8 billion).Organic growth stood at 7% instead of 5.4% expected.

Especially, the group surprised by organic growth well above the expectations in luxury (Gucci, Yves Saint Laurent, Bottega Veneta and Balenciaga), where it reached 25% (23% after the first half) instead of the anticipated 19% .

The only Gucci brand, which accounts for nearly 60% of operating profit of the group, grew by 21% (22% in first half).

The Chief Financial Officer, Jean-François Palus, said during a conference call that the dynamics remained equally strong in luxury in October and was confident for 2012.

In contrast, the performance degradation of Fnac and Redcats has accelerated.Sealed by the drop in consumption in France and Southern Europe, the distributor's sales of cultural products were down 4.2% on a comparable basis. Those of the cluster distance selling (La Redoute, Vertbaudet and Cyrillus) fell 5.6%.

PPR, which wants to focus on luxury and sports fashion by selling its retail brands, was forced, with the deterioration of access to credit due to the crisis, to postpone the sale of Redcats.

The group, which has designs on Brioni, continuing discussions with the Italian tailor, said Chief Financial Officer without elaborating.

The sporting goods company Puma, which released its figures on Tuesday reported a 10% increase in sales in the third quarter.

The next summit of the euro zone is not enough to permanently resolve the debt crisis, warned Friday German Chancellor Angela Merkel.

"There is no single solution, there is no solution 'big bang'," she told the annual conference of the German trade union IG Metall in Karlsruhe.

She added that a discount on the debt of Greece was not a panacea either.

Angela Merkel also reiterated his skepticism about the effectiveness of any "Eurobonds".

"They do not constitute a panacea," she said, holding that "the current situation, they would not help."

According to a "government source" quoted by AFP, the French government is considering "tough decisions" on aid to Greece and banks … but after the passage of the bailout by Germany. An encrypted connection that will boost the rumors.

There is something to speculate. While the French government Monday strongly denied any plan to bail out banks hexagonal, a government source quoted by AFP said Tuesday that the executive intends to take "tough decisions" for banks and assistance to Greece. Remains to be seen what these "tough decisions" and what the banks concerned.

"We must make tough decisions on Greece and the banks but we can not do it before that Germany has adopted Thursday the rescue plan," sources said the same source.The German parliament is to decide Thursday on expanding the envelope and skills of EFSF, the support fund for the euro area set up last year. German lawmakers should give the green light. Remains to be seen what would those "tough decisions" that can not be formally discussed before the decisive vote.

The vote of Germany, Europe's largest economy and biggest contributor to the fund with 200 billion euros of guarantees, should give a decisive impetus. While the implementation of this mechanism requires the approval of the rescue 17 members of the euro area and that some countries, like Slovakia, are still praying.

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.

Until the EFSF takes over, the European Central Bank resumed its purchases of government bonds of countries in the Eurozone in trouble in the markets. It will also help the banks, said Thursday its president Jean-Claude Trichet. The European Central Bank resumed its operations in the bond market, said its president Thursday, August 4, French Jean-Claude Trichet. Jean-Claude Trichet, President of the ECB decided to keep its key rate at 1.25%.

The European Central Bank (ECB) decided to take firm action to try to extinguish the fires of the debt crisis in the euro zone, notably by taking over its operations in the bond market, announced Thursday, August 4 President Jean-Claude Trichet .The Governing Council of the ECB decided "overwhelmingly" to make new purchases, he said at a press conference in Frankfurt (west), head of the institution. Paris market sources have confirmed to AFP that the ECB intervened on Thursday afternoon. Previously, Mr. Trichet had said he had "never said" that the program had been "interrupted".

The ECB did not, however, used for more than four months. The extent of intervention will not be known until Monday at the earliest, the ECB communicates only once a week about it. It is even possible that the intervention of this Thursday is not yet included in the figures for Monday, because of delays in compensation. Mr.Trichet added, however, he wanted the European Financial Stability Fund (EFSF), set up to lend to troubled states of the euro zone, the relay fast as was decided at a summit in Brussels on 21 July. "What we expect is that this fund is to be effective so that we can not intervene," he said.

The ECB will also help banks by providing them with additional liquidity. An exceptional operation six months on loan to banks will be launched on August 9 with a maturity at March 11, 2012, in response to "renewed tensions in certain markets in the euro area," said Mr Trichet. The ECB had already conducted such operations in response to the global crisis, but these operations had ceased in late 2009.The benefit of unlimited credit to banks, fixed rate for periods up to three months, is itself extended by a quarter, until January 2012, said Trichet. "We think it's appropriate under current conditions, to restore the proper functioning of all markets," said the president of the ECB, which also decided to keep its key rate to 1.5%.

It reached 2.5% in July against 2.7% in June and May. The ECB should not raise rates until the fall. The logo of the euro to the European Central Bank in Frankfurt.

Inflation down slightly in July in the euro area to 2.5%, according to a first estimate Friday of the EU statistics office, Eurostat. She was by 2.7% in June as the month of May Inflation appears to end slightly below expectations of analysts polled by Dow Jones Newswires, which projected to stabilize at 2.7%.

It remains for the eighth consecutive year above the threshold of 2% target over the medium term by the European Central Bank (ECB). In early July, the Mint has once again raised its key interest rate to 1.50% against 1.25% previously.Considering the economic recovery in the euro zone on track and worrisome inflation, the ECB had made its first increase in nearly three years in April.

The ECB president, Jean-Claude Trichet, suggested that a break would be made in the rate hike. Economists expect an increase before the next fall.

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.

Schneider Electric announced Wednesday a takeover bid of $ 2 billion (1.4 billion euros) to Telvent, a specialist in systems for managing energy infrastructure, water and transport.

The French electrical equipment specialist said he would make a cash offer for the entire group shares at a price of $ 40 per share, representing a premium of 36% over the average share price on Telvent last three months.

Spanish Abengoa is committed to making its 40% interest in Telvent to supply.Shareholders representing 1.5% of the capital have also agreed to tender their shares.

In total, Schneider estimates the total potential impact of business synergies and cost synergies on its EBIT to 50 to 60 million euros by 2016, two thirds of which should be completed by 2014.

The acquisition should be accretive to earnings per share Schneider "from Year 1 (before integration costs) and meet its criteria of economic efficiency" in year 3.

Madrid-based Telvent provides software and solutions for real-time management.

The company reported 2010 sales of about 753 million euros and EBITDA (EBITDA) restated $ 115 million.Its main markets are Europe (42% of sales in 2010), North America (35%) and Latin America (16%).

"The strong geographical complementarity of the two companies will realize significant synergies on the markets regulated electric, oil and gas, water treatment and transportation," said Schneider in a statement.

The French group also believes it can "leverage the strong presence of Telvent in North America and Latin America, while Telvent will be able to put on many new markets, including Asia Pacific, Middle East, Russia, while strengthening its presence in Western Europe. "

European stock markets ended sharply down Monday, recovering from their lowest five weeks ago, affected by a sharp rise in risk aversion with a further deterioration in the sovereign rating of Greece and fears about that of Italy.

The CAC 40 index finished down 2.1% at 3906.98 points, its lowest level since April 19 and threatens to push the bar of 3900 points.

The London Stock Exchange lost 1.89% and Frankfurt 2.0%.Pan-European level, the FTSEurofirst 300 has sold 1.73% and the Euro Stoxx 50 dropped 2.09%.

The automotive sector has suffered the largest declines in Europe, with a loss of 2.88% of the sector index, affected by concerns about global demand after PMI showing a slowdown in activity this month in Europe and China.

In Paris, all CAC 40 stocks ended in the red, including Renault, which lost 3.08% to 38.260 euros, Peugeot sold 2.66% to 28.755 euros.

Cyclicals, financials and consumer products, including luxury, led the decline, losing 3.5% to 46.420 euros for Lafarge, 2.95% to 10.530 euros and Credit Agricole 2.75 % to 115.100 euros for PPR.

The euro is back above the bar that had $ 1.40 down in the morning. At the close of European stock, it was trading around 1.4015 dollars, against 1.4131 the previous day in the afternoon.

In response to the sudden appreciation of the dollar, U.S. crude oil lost about $ 3, trading around 97.10 dollars a barrel.