News – Business & Economi

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."

European shares ended Thursday in a disorganized, caught between the temptation to take profits after three sessions of consecutive increase and the positive impact of a U.S. ISM index better than expected, which eased fears of an entry in recession.

However, investors prefer to remain cautious on the eve of the release of U.S. employment figures for the month of August, a critical indicator, including the decision of the Federal Reserve to support the economy.

The CAC 40 index closed up 0.28% to 3265.83 points after fluctuating in both directions.Between 19 and 31 August, the benchmark index in Paris gained almost 8%.

Other major European markets, London was up 0.45% and Milan took 0.69%, while Frankfurt lost 0.94%. The pan-European Euro Stoxx 50 index ended up on its side up 0.16%.

"At first reading, the figure of the ISM has reassured the markets. However, some components are still of concern. In all, the deterioration of the U.S. economy is not as strong as feared by consensus a very bearish," said Arnaud Cayla, managing director at Barclays Wealth Managers France."However, the activity remains fragile," he adds.

"The market now could still bet on further steps at the next monetary policy meeting of the Federal Reserve, a feeling reinforced by the expansion confirmed inflationary pressures," he says.

Defensive stocks supported the rating.Repsol has made 2.44% to 20.560 euros, Deutsche Telekom 2.19% to 8.999 euros and Sanofi 1.5% 51.420 euros.

European banks have ended on a note with an irregular European sector index up by 0.99%.

In Paris, Crédit Agricole (-2.08% to 6.679 euros) suffered the second largest drop in the CAC 40.

The euro lost ground, trading at 1.42989 / 90 dollars, against 1.4374 the previous day about the end of the day.

Illustration of investor caution, the yield on German government bonds to 10 years is down to about 2.14% against 2.22% over the closing Wednesday.

European stock markets are expecting a strong signal on the governance of the euro area. German Chancellor has warned however that we should not expect the summit of spectacular announcements. President Nicolas Sarkozy meets with German Chancellor Angela Merkel Tuesday, August 16th at the Elysee Palace (both are here in Berlin July 20, 2011)

European shares opened slightly lower Tuesday, opting for caution before the Franco-German summit on the governance of the euro area. After three consecutive sessions of gains, Paris opened down 0.73%, 0.68% from London, Frankfurt 1.02%, Madrid and Milan by 0.65% to 0.28%. Monday, Paris won 0.78%, London 0.57%, 0.41% Frankfurt, Madrid 0.71% and 1.37% on the Swiss Exchange. New York has erased all its losses last week in garnering 1.90% for the Dow and 1.88% for the Nasdaq.

Global financial markets are also showing much more attentive Tuesday.Asian stock markets were the first very hesitant: Tokyo has ended up slightly from 0.23% after a session sawtooth and Sydney ended down slightly by 0.86%. Seoul, closed Monday, was an exception by closing up sharply from 4.83%.

All eyes are on the meeting between German Chancellor Angela Merkel and President Nicolas Sarkozy from 4:00 p.m. at the Elysee Palace in Paris. "The markets are expecting a very strong signal: Is there a pilot on the plane to govern the euro area? Will you finally speak with one voice in the Franco-German and stop to maintain the cacophony that lasts for months and madden investors? "asked a Paris-based analyst who requested anonymity.

But hopes could be quickly showered.Berlin has in fact warned that they should not expect miracles, especially not that the two largest economies in the euro zone agreed to set up Euro-bonds, which would be financially harmful to Germany .

"It seems that there is an acute attention paid to this appointment, and we believe that the margin for a big disappointment," warned analysts at MF Global. This meeting should ultimately focused on the governance of the euro area, following decisions taken by Heads of State and Government of the European end of July.

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.

The government could raise the debt ceiling by decree, sell gold, favor some creditors … Treasury Secretary of the United States, Timothy Geithner.

The U.S. government could resort to constitutional and legal means to prevent the United States are found in default in case of persistent political deadlock on the issue of raising the ceiling of public debt after August 2.

The U.S. Treasury keeps saying that beyond that date, he has "exhausted" all the special measures taken since May to allow the country to continue to borrow without exceeding the legal limit of debt (14,294 billion).However, Treasury Secretary Timothy Geithner said the stubbornness of the Republicans not to give their assent to an increase in the maximum debt in exchange for deep cuts in public spending was doomed to failure. He said late May by reading a little-known clause of the 14th Amendment to the Constitution of the United States that "the validity of the debt of the United States [...] shall not be questioned ".

The ability to use a passage of the Constitution has surfaced these days. A user requesting a Wednesday if he would "take a presidential decree to raise the debt ceiling in accordance with paragraph 4 of the 14th Amendment," U.S. President Barack Obama said: "I think we should not even reach the constitutional question.It is the responsibility of Congress to ensure that we deal with our bills. "

While disagreements persist between Democrats and Republicans, this evasive response casts doubt on the government's intentions. Especially since the Supreme Court has already had to rule on the paragraph in question in 1935 and had then saw "no reason not to consider" it applies to "all matters relating to all obligations of the state ".

Explanation of Neil Buchanan, a law professor at George Washington University in an article published Thursday, "If Congress passed laws that create obligations for the state, these obligations must be honored," regardless of "arbitrary limits" set by itself.

The Treasury stirred risk of default with devastating consequences for the country if the impasse continues beyond the 2 August.A spokeswoman for the Treasury has reiterated Thursday told AFP that "the only way to avoid a crisis of non-payment" was to raise the debt ceiling "on time". Publicly, Mr.Geithner repeated that his ministry can not favor some creditors over others.

However, in response to a question by the Treasury on this particular point in similar circumstances, the U.S. Court of Auditors (GAO) estimated in 1985: "The Treasury is free to perform its obligations in the order that it deems most consistent with the interests of the United States. "

So, as to the government it is in the best interests of the United States to avoid a default, even partially, the State may well choose to defer payment of certain invoices and assign priority to tax revenue payments related to debt management.

Bob Eisenbeis, economist at the financial consulting firm Cumberland Advisors, said as the state has a number of other ways, such as selling gold.For him, the Treasury waving a red rag to rush an agreement so that it could take "several months".

Eric Chaney, chief economist of AXA IM, rising 25 basis points to 1.50% of the rate of the ECB is totally unwarranted and will only exacerbate the current slowdown in European economies. Jean-Claude Trichet, president of the European Central Bank during his monthly press conference in Frankfurt, March 4, 2010

The European Central Bank has just increased its interest rate by 25 basis points. Is this justified?

Not at all. Again, the ECB has shown itself completely impervious to surveys that have turned from green to orange in the spring. Whether in France, Italy and even in Germany, business leaders all expect a slowdown in activity in the coming months. In fact, the ECB is doing the same mistake as in 2008.At the time, investigations were in deteriorating and yet the ECB still had raised interest rates in July, saying it was better to guard against possible second-round effects on wages and demand – both internal and external – would support growth. The rest is history.

But the difference today is that the slowdown seems to provisional …

Exactly! The ECB would do well to ride out the storm, to wait until September before raising interest rates again. By tightening its monetary policy today, what is more Greek in crisis, it only amplifies the magnitude of the slowdown and complicate the rebound.

Can we say that the ECB has remained true to its mandate only interested in inflation, which has pressed the 2% in most European countries?

Not even.This movement of prices is only temporary, linked to rising commodity prices. In the medium term, it is more deflation, which threatens the economies of the euro area. Contrary to the speech of Jean-Claude Trichet, there is no excess liquidity that fuels the rise in prices in the euro area. Instead, the money in circulation is now dropped 9% below its pre-crisis average. It grew by only 2% in April, twice as fast as GDP in current euros. Second signal deflation: the evolution of credit. Over the last six months, new business loans were barely higher than the previous trough of the cycle … in 2002. Suffice to say that nothing justifies this increase in interest rates.

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.

European car registrations rose 7.1% in May over one year, announced Friday the Association of European Automobile Manufacturers (ACEA).

Over the period from January to May, sales were down but 0.8% over the same period in 2010.

Germany, Italy and France recorded increases, but the Spanish market fell by 23.3% and the UK, sales were down 1.7%.

The number one European car Volkswagen shows an increase of 15.8% of sales in May, while the number two European, French PSA Peugeot Citroën sees his increase of 4.4%.

Renault, which has had supply problems, saw a decline of 8%.

The principle of this aid must be maintained, according to two MPs. However, they recommend a reform of the management device.

Often subject of controversy, the principle of the State Medical Assistance (EMA) for undocumented immigrants with limited resources must be maintained even if it is necessary to reform the management of this device, said Thursday a parliamentary report. Claude Goasguen (UMP) and Christophe SIRUGUE (SRC), the two co-rapporteurs to assess the device, advocate, in their joint recommendations, the need to preserve the soul and make management changes.

The device, created in 2000 to provide free medical care to undocumented migrants who have few resources, has benefited 227,000 people in 2011. The amount of benefits guaranteed by the state health insurance has been budgeted for 588 million euros in 2011 (against 75 million in Budget 2000).Rejecting accusations of some extreme-right, or even a part of the line, the report notes that there is no "explosion" of medical consumption or "outright fraud". "We made the report to allay rumors," said Claude Goasguen told reporters. "Far from being a fraud problem, the MEA has a management problem," he said stressing that the two factors that explain the increase in expenditure is the change in the number of beneficiaries (+185% since 2000 ) and the conditions of hospital billing.

Twisting the neck to popular belief, the two members stressed that the 227,000 beneficiaries, 81% were single and less than 5% have two or more rights holders. At the last Finance Act, MPs voted to right an entrance fee of 30 euros, a measure denounced by associations defending the rights of foreigners.

If Claude Goasguen approves this measure "symbol" which "shows that everyone involved in the health of all," Christopher SIRUGUE is hostile "because it is a barrier to accessing care." Both members have highlighted that the rest of the establishment of this "stamp duty" might be more expensive than it would bring. In their report submitted to the Committee for evaluation and control of public policy, MEPs stressed that "humanitarian considerations, as the imperatives of public health policy, require continued access to care." They note that the cost of the MEA, "although increasing," "not enough to motivate a deletion whose health and financial consequences could be cons-productive".

For 2011, expenditures of the AME forecast at 640 million euros and two MPs called for "a proper budgeting.The bulk of the expenditure is made up of hospital spending "focused on a small number of people." The report notes a strong geographic concentration of beneficiaries and expenditure: especially in Paris, Seine-St-Denis, Val-de-Marne and Guyana. Among the common recommendations, the two MPs want the implementation of preventive medical examinations at the entrance of the device.

Sales of commercial vehicles grew by 9.5% a year over the other in April in the European Union, said Friday the association of European manufacturers, the upturn in recent months.

During the first four months of the year, sales increased 13.5%.

ACEA says that sales of utilities rose 4.6% compared to April 2010, while those of trucks jumped 52.4%.

Sales of commercial vehicles over 3.5 tonnes on the other hand grew by 42.4%.