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.

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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A 10.8% of the workforce, the unemployment rate in the euro area in February reached its highest level in fifteen years. An employment agency in Malaga. Spain has an unemployment rate above 20%

This is a direct consequence of the crisis and the lack of growth. The unemployment rate in the euro area in February reached its highest level in fifteen years, to 10.8% of the workforce, according to data Monday from the EU statistics office, Eurostat.

According to Eurostat calculations, 17,130,000 people were unemployed in February in the euro area, or 162,000 more than the previous month. This level ever since the creation of the euro area exceeds forecasts of analysts polled by Dow Jones Newswires who had forecast an unemployment rate of 10.7% in February, as the previous month.

This is the tenth consecutive month in which unemployment has reached or exceeded the threshold of 10% in the euro area. Result: the euro zone now has 1.476 million more people unemployed than a year earlier.

Throughout the European Union (EU), the unemployment rate rose to 10.2% in February against 10.1% in January. This is also setting a record, said Eurostat. Once again, Spain is the bad boy of the EU with an unemployment rate of 23.6% followed by Greece with 21% (where the latest data refer to December), Portugal (15%) and Ireland (14.7%). In Italy, unemployment reached a record high of 9.3% in February.  

In contrast, the unemployment rate the lowest were recorded in Austria (4.2%), Netherlands (4.9%), Luxembourg (5.2%) and Germany (5.7%) .

Unemployment in Germany fell in March to 6.7%, its lowest level since the reunification of the country, a decline which heightens the contrast between Europe's largest economy and its neighbors and should support both consumption and wage demands.

The number of job seekers decreased by 18,000 over the past month, its fifth straight decline, returning to 2.841 million according to figures adjusted for seasonal variation (CV) published ; s Thursday by the Federal Labour Office.

This decrease is more pronounced than expected since the 35 economists polled by Reuters had expected a decline of 10,000. 

"The resilience of the German labor market bodes well for private consumption in the first half," commented Carsten Brzeski, economist at ING.

"The mild weather in March and almost unwavering optimism of entrepreneurs seem the main drivers of the improvement of the fall in unemployment announced today."

These figures are good news for the German finance minister, Wolfgang Schaeuble, whose estimates are based largely on increased tax revenues.

They also enhance the contrast between Germany and France, where the numbers of unemployment in February hit their highest level since October 1999. 

While the German population is nearly 30% higher than the French, the number of jobseekers CVS is now lower than that of unemployed Class A in the Hexagon.

SALARY INCREASES OF POSSIBLE

4%

If the German economy, driven by exports, has recovered quickly from the 2008-2009 financial crisis, it has not escaped the relapse caused the end of 2011, contracting by 0.2% in the fourth quarter due to the debt crisis in the euro area and its impact on global demand. 

It seems to be resurged since the beginning of this year, which led several economic research institutes to raise their growth projections and e ; housing with near certainty the hypothesis of a new recession (two consecutive quarters of declining GDP).

Buoyant labor market in this climate generally heckled favored improving consumer confidence, rising in six of seven months as the barometer of the GfK. 

The decline in unemployment has led parallel to the German unions claim higher wages after several years of rigor in this area: the central Verdi and IG Metall and ask one the other increases of 6.5% for the approximately five million workers they represent.

For Christian Schulz, an economist at Berenberg Bank, wage growth is "inevitable" because of tensions on the labor market.

"While it is unlikely that requests for increases of 6% are accepted, agreements with increases of 4% are possible," said he. "With inflation back to 2.1% in March, wage increases may provide important new welcome boost to consumer spending."

Many economists note, however, that the downward trend in unemployment slows as lessens the impact of reforms implemented in recent years to increase the flexibility of the labor market .

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 deficit of state budget has decreased by 0.9 billion euros in January over one year to 12.5 billion through the sale of 4G mobile frequencies. View of the Ministry of Economy and Finance at Bercy.

The deficit of state budget has decreased by 0.9 billion euros in January over one year to 12.5 billion euros, thanks to the windfall of allocating 4G mobile frequencies, said Friday the Budget Ministry. The state expenditure were however up to 31 January from a year earlier, but this progression, "consistent with the prediction," is due to "an increase in the rate of recognition" earlier this year, ensures Bercy in a statement.

Expenses (general budget and levies on revenue) reached the end of January € 32.8 billion against 26.3 billion the same date of 2011, the departments' management in 2012 to start faster. " According to the ministry, "the expenditure has not been late and has already reached its cruising speed", and so do not see a skid. As for revenue (net of refunds and rebates), they improve to 23.4 billion against 20.5 billion at January 31, 2011. The net tax revenues are up as expected from one year to another, almost 8%, particularly with regard to corporation tax (33.6%).

Orders to U.S. industry rose for the second consecutive month in December, driven by increased business investment.

According to figures released Friday by the Commerce Department, orders for manufactured goods rose 1.1% in December.

Market economists polled by Reuters had expected, however, an average increase of 1.5%.

The November figure was however revised upwards and shows an increase of 2.2% instead of 1.8% initially announced.

Over the full year 2011, industrial orders rose 12.1%, against an increase of 12.9% in 2010. 

Excluding transportation, orders rose 0.6% in December after rising 0.5% (revised) in the previous month.

Orders for nondefense capital goods and aircraft, considered a barometer of morale of entrepreneurs and their investment plans, surged 3.1% after falling 1.5% in November.

The Federal Reserve said Wednesday that the U.S. economy had recorded a moderate growth in recent weeks, while emphasizing that the recruitment remained rare and that the housing market showed little signs of improvement.

In its "beige book" summary of economic conditions in the 12 districts of the U.S. central bank, the Fed also notes that the pressures on consumer prices remained moderate and some cost pressures had decreased.

This finding is likely to give more leeway to the Fed in terms of monetary easing if growth were to weaken in early 2012 because of the consequences of global activity in the European debt crisis.

For now, the report confirms what had already been said in the latest "Beige Book" dated: the growth of the economy is not threatened, but the conditions underlying depression can not lower the unemployment rate, currently 9%.

"Overall, economic activity grew at a slow to moderate pace since the last report (…) except the district of St.

Antonio Borges, director of the Europe Department International Monetary Fund (IMF), has resigned with immediate effect, the Fund announced Wednesday.

The IMF notes that the Director General intends to appoint Christine Lagarde Reza Moghadam, Director of the current strategy to succeed Borges, effective Thursday.

Italy has agreed that the International Monetary Fund (IMF) monitors its progress on economic and structural reforms, said on Friday European source.

The European Commission and the IMF will each report on how Italy is meeting its objectives, particularly with regard to pension reform and labor, the source said.

"Italy has no objection to be monitored, even if the IMF is involved," she said, adding that credit line was not seen as a credible option for the country, lack of confidence markets in its plans for fiscal consolidation.