My Business News

The European Commission gave its approval Friday to a provisional government assistance of 4.75 billion euros to recapitalize three Spanish banks created this year as part of a restructuring of the network of savings banks.

The three banks are Banco NCG, Catalunya Unnim Bank and Banc.

The EC added that its final approval depended on a restructuring that ensures sustainability over the long term.

"Strengthening the capital of these banks is crucial in their ability to continue to lend to the real economy and to implement the restructuring they will suffer as a result of large subsidies received," said Competition Commissioner Joaquin Almunia in a statement.

The Bank of Spain said on Friday that 96.4% of banks had completed their recapitalization.

She added that the recapitalization had cost 13.4 billion euros, while the initial estimate given 15.2 billion. All banks are now in compliance with minimum solvency ratios, she said.

The draft budget for 2012, the last of the five-year Nicolas Sarkozy, is planning to reduce the public deficit to 4.5% of GDP at end 2012 before reaching 3% in 2013, years during which the public debt ratio would begin to decline.

But the deteriorating economic situation and the outcome of the presidential election of April-May, for which the Socialist opposition is the favorite, could rapidly complicate or disrupt the exercise settings.

"This government will put an end to the continued increase in state spending since 1945 is a historic change", welcomed the budget minister, Valérie Pécresse, presenting the text to reporters Wednesday.

"For the first time since 1945, state spending will decline by one billion euros in absolute value, excluding charges of debt and pensions," she said.

The budget deficit should be reduced next year to 80.8 billion euros if Parliament following the government request to find one billion euros in additional budget debates. This deficit is estimated for 2011 to 95,500,000,000 euros.

The general government deficit, which includes financial statements and those of local communities, will be 5.7% in late 2011.And, once found the European limit of 3% in 2013, it would be reduced to 2.0% in 2014 and 1.0% in 2015, a course which aims to strengthen the note "triple A" given by the French debt the major international rating agencies, a stated priority of the Elysee.

Government debt was 87.4% of GDP at end 2012, 87.3% in 2013, 86.2% in 2014 and 84.1% in 2015, after 85.5% expected in late 2011.

UNCERTAINTIES

The text confirms the government forecasts economic growth to 1.75% in 2011 and 2012 – which are higher than many economists – and then to 2.0% in 2013, 2014 and 2015.

The collapse of financial markets and the deteriorating international economic conditions have in fact further dimmed the prospects for growth, as further illustrated on Wednesday the confirmation of no growth of France in the second quarter.

These pressures on growth does not necessarily discredit the 2012 budget, estimated Monday Michel Didier, president of the Institute of Economic Studies Coe-Rexecode, which expects growth to 1.2% next year.

"Between 1.2% and 1.7%, it is not likely to upset the public finances," said he. "The key is to stay on a path where one earns a point deficit annually."

Economic uncertainty coupled with the impact of the next presidential election.Ever, since France goes on every year deficits, or the mid-1970s, the deficit has in fact declined during a presidential election year.

"The President reiterated that our goal of deficit reduction was untouchable and would be held ready for the euro," said Valerie Pécresse during the proceedings of the Council of Ministers.

ITEMS REMOVED FROM 2007 150 000

For the second consecutive year, state spending will be frozen in value, excluding debt and pensions.

The non-replacement of a civil servant retiring two will continue in 2012 with 30,401 job cuts, bringing the number of cuts to 150.000 full-time equivalent positions over the life of the quinquennium.

According to government projections, the wage will fall and next year for the first time since 1945, amounting to 0.2 billion euros.

The debate on the draft budget, which begins Oct. 18 in the National Assembly, should focus on measures the most iconic, even if their financial reach is limited.

The "outstanding contribution" of 3% for high incomes seems guaranteed to occupy the center stage.The government is said to be open and to lower the threshold by parliamentarians of the measure, which should lead to reducing it from 500,000 to 250,000 euros.

To finance its debt, France plans to issue next year to 179 billion euros of debt in the medium and long-term (net of redemptions) against 184 billion euros this year, announced the Agence France Trésor, which manages the debt of the state.

The proposed budget anticipates a 1.7% inflation in 2012 and holds a hypothesis for Brent oil barrel to 110 dollars and euro / dollar of 1.43 in 2012.

BASF announced Tuesday the sale of most of its manufacturing sites to EuroChem nitrogen fertilizer, a company controlled by Russian tycoon Andrei Melnichenko, for about 700 million euros.

The German group, the world of chemistry in terms of sales, said in a statement that the transaction will be finalized at the end of first quarter 2012.

BASF announced in early March its intention to sell most of its activity in nitrogen fertilizers, which is suffering from competition from low cost producers in the Middle East.

He said at the time that the assets for sale were less than 1% of annual sales, is nominally less than 640 million euros.

The combined annual production capacity of sites is to sell 2.5 million tons of fertilizer. This is a plant in Antwerp, Belgium, and 50% owned by BASF in its joint venture formed with PEC-Rhin Total.

Around 9:15 GMT, BASF advanced 2.31% to 46.45 euros, evolving in line with the index grouping the European values ​​of the chemical (2.37%).

The turmoil on Wall Street is beginning to weigh on earnings forecasts of U.S. companies and more broadly on the real economy, with increasing likelihood of a return to recession.

Market confidence was severely undermined by the problems of debt and stagnant growth in the world, and only the results of companies strong despite the crisis, came to bring some relief in recent months.

However, analysts are revising down their earnings estimates up for the rest of 2011, after a strong second quarter.

The logistics group FedEx sent an alarming signal this week by lowering its profit forecast for the year, because of high fuel costs and global economic difficulties.

FedEx, the world in its sector, is seen on Wall Street as a barometer of global economic activity.

Since July, the S & P 500 fell 15%. The forecast rise in corporate profits in the index fell 17% to 13.7%, according to Thomson Reuters data.

FINANCIAL CONTROL TECHNOLOGY

According to analysts, this estimate is too high.In recent weeks, they have lowered their earnings forecasts on all sectors except technology.Financials are the most affected.

They represent over 13% of S & P-500 and form the most influential sector in the index after the technology.

"They are clearly the Achilles heel of the market," said Robbert Van Batenburg, analyst at Louis Capital in New York.

Banks are also penalized by the prospect of possible cuts on the sovereign ratings of European countries, and lending a less profitable because of the actions of the Fed to lower interest rates over time.

Insurers are also likely to be affected by this context.

The technology sector, however, is where the prospects are rising, thanks to the locomotives such as Apple, whose title this week hit a record high.

Forecasting earnings growth of the sector in the year 2011 is 16.6% compared to 2010. In July, an increase of 13.7% was expected.

But even in this sector clearly healthy caution signs have emerged. The chip maker Xilinx has lowered its sales forecast due to weak industrial markets.

Markets await further various indicators on the housing market, industrial activity and consumer spending, among others.

ArcelorMittal said Friday he was better placed to withstand a recession in 2008-2009 because of the savings already achieved and expansion in the mining sector.

The world's largest steel, in a presentation to investors, said its gross operating profit (EBITDA) would be higher in 2009 if the recession was back in 2012.

It confirmed its forecast of EBITDA between 2.4 and 2.8 billion for the third quarter of this fiscal year and an Ebitda up in the second half compared to the corresponding period of 2010 through to the increase in steel shipments and growth in production of coal and iron ore.

The Thomson Reuters consensus I / B / E / S currently provides an Ebitda at the top of the range given by the steel for the third quarter and a balance identical to the fourth quarter.

However, an inventory reduction from customers and a possible margin squeeze could alter the outcome of the last quarter of the year.

The controls show no signs of a deterioration in demand, material prices are stable and those of steel also in most markets, ArcelorMittal noted, adding that the development of stocks is favorable.

The CEO Lakshmi Mittal, however, observed that the risks and uncertainties had increased in recent weeks and said the assumption was two years of weak growth in developed countries.

The steelmaker in recent weeks presented a plan for the layoffs of three blast furnaces in Belgium, France and Germany.

He had reduced the production of about half during the 2008-2009 crisis, and even if it appears unlikely to do the same now, ArcelorMittal has for the first time this year focus on its actions cost control.

In a statement, the Chief Financial Officer Aditya Mittal also said "he thinks the goal of net debt announced $ 22.5 billion, or even fall short of forecasts, by mid-2012."

He added that "ArcelorMittal has received written agreements from its banks to extend the maturity of four billion dollars in credit facilities from 2013 to 2015."

The action ArcelorMittal has lost 53% over the last two months, while the European index of core yielded 33% at the same time. The share was down 2.2% to 10.97 euros to 15.30.

The creditors asked the Athens Greece to implement a dozen priority austerity measures before granting a loan of 8 billion euros. The question is whether it is able to meet these commitments. Greek Prime Minister George Papandreou at the EU summit of June 23, 2011.

Greece is once again back to the wall. The payment of the loan of 8 billion – the sixth tranche of 110 billion euros decided in the first stimulus plan – was postponed in October because the creditors demanded austerity pledges stronger. But according to news agency in Athens, the debates focus on reducing the number of staff, higher taxes and restructuring of government agencies. What the daily Les Echos also cited by unveiling a list of "15 commandments" to Greece claimed by creditors before agreeing to pay a new aid.The question is whether the country can meet them. Here are the commands into four main themes, and analysis of an economist on the ability of Athens to honor them.

Degrease the payroll of public servants

According to Greek media, the Troika calls for the rapid reduction in the number of employees. The number of public employment would, in fact continued to increase from 25,000 two years ago. It therefore requests the cessation of hiring and downsizing of at least 100,000 employees by 2015. One possibility considered is to place "in reserve" some officials, a device already in force in state-owned enterprises. "Officials are put into a contingent reserve and this would allow Greece to save 40% of their salary", says Jesus Castillo, an economist at Natixis.He still think that "reducing the number of 25,000 staff each year will be very difficult."

To levy taxes

Often pointed at, tax evasion must be more grip as the Troika. She calls the vote a law to suspend the salary or tax breaks to collect the "solidarity tax". The contribution of 1 to 4% has been set up in the second austerity plan but would not be applied fairly. Moreover, in terms of tax increases, tax rate of heating oil will be increased to be aligned with that of fuel, taxes on tobacco, alcohol and luxury will be found, and the fines for illegal construction will be revised upwards. "Raising the tax on heating oil is socially not good news.But on the so-called "harmful", we know it will not raise many challenges, "said Jesus Castillo.

Reduce pensions

Donors of Greece asking for pension cuts of Shipping, in those telecom operators and retired farmers. More generally, we should perform a general freeze pensions until 2015, and establish a new framework for employees of public service. This new framework would provide such lower benefits at retirement and the reduction of overtime pay.

Restructure government agencies

Troika completed his "15 Commandments" with an indictment in the Greek health system. It provides for the closure or merger of 35 public institutions and the undermining of collective agreements from 16 private hospitals.It also deplores the lease between the public and private laboratories, and denounced the agreement between these laboratories to reduce drug prices.

Measures inapplicable to Greece?

This new roadmap creditors Athens underlines the difficulty of the high country to meet its commitments to fiscal consolidation. The number of Greek deficit will be well over 17 billion euros at the end of the year, an amount that was committed to meet Greece. In addition, detailed measurements here are not new according Amadeu Altafaj, spokesman for the European Commission. "The European Commission does not require additional austerity measures, but only the application program has been decided," he said.

According to Jesus Castillo, these efforts sought by the Troika representing a failure to Athens."It is clear that the implementation of plans is not moving. On Tax Fraud need only see the difference of change in consumer spending with the revenues from VAT. They do not follow at all the same path, which is a sign that tax evasion is still fresh. " From there to think that if these targets are not increased, the payment of EUR 8 billion will not be honored? The economist remains optimistic. "The country is in default in October. We can expect an agreement between creditors and Greece."

The meeting of European agriculture ministers failed to convince all Member States to maintain funding of millions of free meals. Update on the issues of the blockage. The European aid to the poor to distribute free meals to some 13 million people in Europe.

It must have the meeting "last chance". However, on Tuesday in Brussels, the European Ministers of Agriculture have failed to agree on the future of food aid to the poor, previously levied on agricultural funds. Six countries of the European Union (EU) refused to hold it in the state, saying its operation denatured for many years.Associations, including the Red Cross and Restos du Coeur in France, fear serious consequences, which could be felt in 2012.

What is the European food aid?

In 1987, in the heart of the cold winter that pushed Coluche to open the "Restos du Coeur", the European Commission created the European program of aid to the poor (PEAD). Backed by the Common Agricultural Policy (CAP), he plans to give to charity, today nearly 240 – the agricultural surplus of the member countries, then redistributed to the poor. Nineteen of the 27 EU states benefit now headed by Italy, Poland and France, for the preparation of some 13 million meals.

Since 1995, the surplus stocks are supplemented by a budget that allows you to run the program despite the fall in surplus.Between 1988 and 2008, its budget has risen from 97 to 300 million euros, reaching 500 million in 2009.

Why is the program being called into question today?

The current debate has in fact emerged in 2008. That year, "EU Commissioner has proposed to give a stronger legal basis to support plan by assigning two objectives: to reduce farm inventories, but also contribute to food security of the poor, with a social dimension" , said Nadège Chambon, researcher expert on the CAP for the think tank "Notre Europe". With this new legal base, the European Commission would have any legitimacy to buy food in the absence of surplus, or to expand the range of products supplied.

But the refusal of a handful of countries, including Germany, buried the project. These states were opposed to the feeding program is funded by the EU budget.In 2010, the current Commissioner for Agriculture, Dacian Ciolos, submitted an amended version. "It would increase the share of the envelopes of the EU, but also to open the co-financing private foundations, for example," says Nadège Chambon. The search for a compromise failed again today: Germany, United Kingdom, the Netherlands, the Czech Republic, Denmark and Sweden continue to oppose the text, forming again a minority of block which makes it impossible to vote.

What are the arguments of the opposing countries?

The strong position of these six countries is based on a jurisdictional issue. "In principle, assistance to the poor is good, but it is the duty of national states," said the German representative, the Secretary of State Robert Kloos, advocating that it be spring " national budgets and not the European agricultural budget. "In Germany, moreover, the associations are very few appeals to the European program, with emphasis on regional governments, municipalities and churches. (Read on the subject: Germany has does not (the restaurants) heart?)

In April, the Court of Justice of the European Union, seized by Germany, has proved him right, by canceling the article to fund the distribution of aid from the budget of the CAP.

And those of his supporters?

The European Commission is in turn firmly attached to the device. Members highlight the growing needs of the poor, still weakened by the recent rise in food prices."In 2006, an estimated 43 million people in the EU-25 were at risk of food poverty," she recalled in a discussion paper.

"The CAP has imposed tariff protection which may themselves have negative consequences on the food purchasing power of citizens. The European Union would have a real legitimacy to helping people by providing food aid to the poor" Nadège Chambon also observed.

Program funds be at risk in the short term?

Yes, largely. The decision of the Court of Justice already prevents the European Commission to use the budget of the CAP to fund the program in 2012, depriving him of more than 80% of its resources. Result, its funds could rise from 480 million euros this year to 113.5 million in 2012, since only the original part of the program, the distribution of the surplus can be maintained."The associations are likely to distribute 130 million meals in less than in 2012," responded Didier Piard, head of advocacy at the Red Cross.

Despite the determination of the Commission and the outrage of European public opinion, "I do not see many positive outcomes, both the position of countries who oppose the program seems strong," said Nadège Chambon. In anticipation of the forthcoming negotiations, the states in favor of maintaining the program should continue intense negotiations to bend the skeptics.

The European finance ministers failed to agree on the Rescue of Athens at their summit in Poland. Greece plans new austerity measures to avoid bankruptcy. The French Minister of Finance and Baroin homolgue German, Wolfgang Schäuble, at a meeting of Eurogroup in Brussels July 11, 2011.

The Greek government was meeting Sunday to prepare for one week vital to avoid bankruptcy and explore new cost-cutting measures after a meeting of euro zone marked by disagreements and a lack of progress on aid to Athens. Greek Prime Minister George Papandreou on Sunday evening chaired the ministerial meeting on the financial situation of the country, and a possible new package of austerity measures, after giving up unexpectedly Saturday to travel to the United Nations in New York.

Greece was forced to adopt new austerity measures to ensure that its creditors, the EU and the IMF agreed to continue paying the promised loan to the country in 2010, warned a senior official, according to the Greek News Agency (Ana). The next installment, which is vital for the country, is expected in October. The Secretary-General to the financial policy of the General Ledger, Ilias Pentazos, sent an email to all ministers listing fifteen measures demanded by the creditors of Athens, the main aim to reduce the public sector, according to the source.

These include "the introduction of lay-offs in all public bodies, the freezing of pensions by 2015 and the merger or closure of some thirty government agencies." The government is accused of delay in the implementation of promised measures to reduce the deficit.To make matters worse, the economic recession, worse than expected, lead more than expected deficit. Athens has already adopted emergency measures last week, including a tax on real estate. But this tax to be collected through utility bills, has caused an outcry in the country. And it is clearly considered inadequate by the EU and the IMF who also want to see spending cuts.

Report of 8 billion loan

Sunday, the Austrian government has again raised the possibility of a default in the country. It is possible "to consider bankruptcy of Greece," said Vice-Chancellor Michael Spindelegger, while warning against the risks.Monday, during a conference call, the Greek finance minister, Evangelos Venizelos, to take stock with its creditors gathered in a "troika": they had left the country earlier this month due to lack of progress in the promised reforms.

The verdict of the Troika in Athens depends on the payment of the next tranche of international loans by 8 billion euros. At a meeting in Wroclaw in Poland, which ended Saturday, the EU finance ministers decided to postpone their decision until October on the loan, pending the outcome of the troika. In addition, they have made little progress on the second aid plan for Greece, nearly 160 billion euros including the private sector. Promised in principle July 21, it is still not realized because some countries are reluctant to loosen the purse strings.

In particular, Ministers have not found a solution on the guarantees required by Finland in exchange for new loans in Athens. On the issue of banks, no united front either. The Swedish Minister of Finance estimated that the banks of the old continent needed to be recapitalized, abundant in the direction of the International Monetary Fund has recently found the situation "urgent". The Spaniard Elena Salgado has also recognized that monitoring through stress tests and the strengthening of banks was a necessity.

Sunday, the French Minister of Economy Baroin has instead sought reassurance. "We're not worried" about the banks, insisted the Minister, ensuring that there was no liquidity problem or solvency problem.

EDF said it had submitted to the Nuclear Safety Authority (ASN) Additional safety assessments for its production performed at the request of the French government after the nuclear disaster at Fukushima in Japan.

The nuclear group has provided the NSA its 19 assessment reports additional security for its nuclear facilities in operation and under construction, including the future EPRs.

"These first tests show a good level of security throughout the EDF's nuclear fleet," the nuclear group in a statement.

These reviews are intended to ensure safety margins facilities face the risk of earthquake and flood, the simultaneous loss of the source of cooling and power supplies, the consequences in case of serious accidents, and the rules applied in the field of outsourcing.

Performed for an entire site, the evaluations conducted by more than 300 engineers of EDF are to consider extreme situations that go beyond those taken into account in the design of nuclear installations and safety reviews of successive states the electrician.

Following instruction by the end of 2011 ASN, EDF will develop an action plan that will take several years, including both additional studies and changes agreed.

The Spanish socialist government will restore the wealth tax which was abolished in 2008, but only for the years 2011 and 2012. He hopes to one billion euros in revenue. The Spanish economy minister, Elena Salgado, announced the provisional restoration of the ISF at a press conference in Madrid September 15, 2011.

The Spanish government will restore the wealth tax, which was suspended in 2008 but "only for 2011 and 2012," said Thursday Economy Minister Elena Salgado. The measure should be adopted Friday by the Cabinet.

A constant parameters compared to 2007, the tax, "focused on large fortunes" should report "around 1.08 billion euros and is expected to affect about 160,000 people," said the minister during a press conference .

A constant parameters compared to 2007, the tax should bring in "around 1.08 billion euros and is expected to cover 160,000 people," said the minister during a press conference.

According to government sources quoted by the Spanish press, the head of government José Luis Rodriguez Zapatero, who is not standing for early parliamentary November, accepted the request of the Socialist candidate in the election Alfredo Perez Rubalcaba boost tax on capital.