With the repurchase of Northwest for 2,8 billion dollars, the American company occupies the first rank by the number of transported passengers.
It is the chronicle of an announced marriage. The American company Delta Air Lines Air Lines officially acquired Wednesday its Northwest Airlines counterpart for 2,8 billion dollars after having obtained the green light of the American authorities of competition. Engagement had been announced in April. It was the last stage. The shareholders, the trade unions and the European commission already gave their agreement. ( Finance Information City )
The new company born of fusion is called Delta and it is based in Atlanta. It serves 66 countries, more than 375 cities in the world and employs 75 000 people. It should carry out an annual turnover of 35 billion dollars per annum and exploit a fleet of 800 apparatuses. “We created a world airline company of first offering order of the services for all the main markets of travellers of planet”, commented on Delta Air Lines in an official statement.
Two billion economies per annum
The new giant flies officially since yesterday, but it will be necessary to wait a little so that the passengers see a real difference. The complete integration of Northwest must indeed be done from here at one or two years.
If the objective is well to be more extremely together and to continue to develop within the framework of the SkyTeam alliance to which Air France-KLM belongs, the urgency for the two American companies is to realize savings.
Two weeks ago, Delta announced a loss of 26 million dollars for the third quarters, because primarily of the blaze of the prices of the kerosene. On its side, Northwest Airlines announced last week a loss of 317 million dollars due to a dysfunction of its program of cover of the purchases of fuel. Thanks to their fusion, the two conveyors ambitionnent to carry out two billion dollars of economies per annum.
This marriage makes lose in Air France-KLM the statute of first world company. But he is absolutely not lived as such by the company which is pleased with this fusion. Air France-KLM had even proposed to invest 750 million dollars in the future group.
The marriage of Delta and Northwest eliminates the risk of a union between Delta and United, member of concurrent alliance Star Alliance. It facilitates also the development of the bonds tied between the four companies. KLM and Northwest have trade agreements, Delta and Air France on their side set up a partnership on the transatlantic market. On these lines where their programs of flights are entirely coordinated, the two companies share the costs and the receipts. Henceforth, it is Air France-KLM and the new Delta company which will collaborate.
Showing newest 32 of 177 posts from 10/1/08 - 11/1/08. Show older posts
Showing newest 32 of 177 posts from 10/1/08 - 11/1/08. Show older posts
“Mediator of the credit”, a role to measure for Rene Ricol
You trust this air pass key, one nothing measured with compasses, that one sees him on the majority of the stereotypes, nor with its title of certified public accountant. Rene Ricol is a blazing character, a fine policy who has assiduously attended the alleys of the capacity for more than twenty years, a jovial fellow who collects the titles, the missions and the big-engined cars! ( Finance Information City )
It is with this 58 year old Lyonese that president Sarkozy, who had already entrusted in spring a report/ratio to him on the crisis of the subprimes, asked to restore the contact between the banks and SME. A title of “mediator of the completely new credit” and a role to measure for that which has, the first, alerted his/her friend “Nicolas” on the imminence of an explosion of the financial system. “As of this summer, a close relation of the Head of the State tells, he warned Nicolas Sarkozy whom he would have a massive problem to manage in the weeks to come and which that was going to be violent. ”
Here is a long time that Rene Ricol is not satisfied any more to be the first certified public accountant of France (it was during years with the head about the certified public accountants and of the Company of the auditors). “It is too brilliant to be satisfied some”, explains a banker. This man with the multiple caps, large contemporary art lover, initially was near to Raymond Barre (it took an active part in the presidential campaign in 1988). He put then his expertise at the service of Edith Cresson for its first “plan SME”, in 1990. Since, Rene Ricol is of all the programs in favour of the small and medium-size companies set up by the various governments.
Near to Jacques Chirac, he is also treasurer of the foundation created by the former President. Today, it is Nicolas Sarkozy, who had strongly impressed it when it was in Bercy, which calls upon him. For a strategic mission that its fellow-member and friend, the former minister Jean Arthuis, described as follows: “It is the anticoagulant of the device. ”
It is with this 58 year old Lyonese that president Sarkozy, who had already entrusted in spring a report/ratio to him on the crisis of the subprimes, asked to restore the contact between the banks and SME. A title of “mediator of the completely new credit” and a role to measure for that which has, the first, alerted his/her friend “Nicolas” on the imminence of an explosion of the financial system. “As of this summer, a close relation of the Head of the State tells, he warned Nicolas Sarkozy whom he would have a massive problem to manage in the weeks to come and which that was going to be violent. ”
Here is a long time that Rene Ricol is not satisfied any more to be the first certified public accountant of France (it was during years with the head about the certified public accountants and of the Company of the auditors). “It is too brilliant to be satisfied some”, explains a banker. This man with the multiple caps, large contemporary art lover, initially was near to Raymond Barre (it took an active part in the presidential campaign in 1988). He put then his expertise at the service of Edith Cresson for its first “plan SME”, in 1990. Since, Rene Ricol is of all the programs in favour of the small and medium-size companies set up by the various governments.
Near to Jacques Chirac, he is also treasurer of the foundation created by the former President. Today, it is Nicolas Sarkozy, who had strongly impressed it when it was in Bercy, which calls upon him. For a strategic mission that its fellow-member and friend, the former minister Jean Arthuis, described as follows: “It is the anticoagulant of the device. ”
The United States: strong fall of the household consumption in September
The consumer expenditure of the American households moved back last month of 0,3% compared to the previous month, thus signing their stronger retreat since June 2004. In September, the incomes of households increased by 0,2% compared to the previous month. ( Finance Information City )
The consumer expenditure of the households in the United States dropped in September of 0,3% compared to the previous month, that is to say their stronger retreat since June 2004, according to the corrected data of the seasonal variations published Friday by the ministry for the Trade. This fall, although higher than what awaited the analysts (- 0,2%) is not really a surprise after the Thursday publication of the figures of the GDP, which showed a retreat of the consumer expenditure of 3,1% in annual rhythm to the third quarters, a retreat ever seen since 1980.
The ministry re-examined in light rise its figure of the consumer expenditure for August, with less than 0,1% (instead of 0%). In September, the incomes of households increased by 0,2% compared to the previous month, after a rise of 0,4% in August (figure revised in fall of 0,1 Pt), according to the data of the ministry.
The income available of the households increased by 0,2% over one month. The ministry strongly re-examined its figure for the previous month, estimating that the income available had increased by 0,4% in August. He had announced a fall of 0,9% initially. Corrected effects of inflation, the income available increased only by 0,1%.
The price index related to the consumer expenditure of the households, which is generally used as reference to the monetary policy of the Federal fund, increased by 0,1% in September (against less than 0,1% in August). Except food and energy, the index increased by 0,2%, that is to say as much as in August.
The consumer expenditure of the households in the United States dropped in September of 0,3% compared to the previous month, that is to say their stronger retreat since June 2004, according to the corrected data of the seasonal variations published Friday by the ministry for the Trade. This fall, although higher than what awaited the analysts (- 0,2%) is not really a surprise after the Thursday publication of the figures of the GDP, which showed a retreat of the consumer expenditure of 3,1% in annual rhythm to the third quarters, a retreat ever seen since 1980.The ministry re-examined in light rise its figure of the consumer expenditure for August, with less than 0,1% (instead of 0%). In September, the incomes of households increased by 0,2% compared to the previous month, after a rise of 0,4% in August (figure revised in fall of 0,1 Pt), according to the data of the ministry.
The income available of the households increased by 0,2% over one month. The ministry strongly re-examined its figure for the previous month, estimating that the income available had increased by 0,4% in August. He had announced a fall of 0,9% initially. Corrected effects of inflation, the income available increased only by 0,1%.
The price index related to the consumer expenditure of the households, which is generally used as reference to the monetary policy of the Federal fund, increased by 0,1% in September (against less than 0,1% in August). Except food and energy, the index increased by 0,2%, that is to say as much as in August.
Camif: “It is known well that will not change anything”
Camif
Employees of particular Camif, placed in compulsory liquidation, expressed today in Paris, in company of Ségolene Royal.“It is a last-ditch struggle. It is known well that will not change anything.” Coming straight from Niort by buses, 230 paid of Camif moved in Paris this Friday to express, under a threatening sky, owe the ministry for the Economy. ( Finance Information City )
“One is there to dispute the dismissal of 1.600 paid of particular Camif, a division of our company, explains Bruno Texier of FO. A financing of the State is hoped for since Sarkozy is able to give money to the banks.” At its sides, a distinguished guest: Ségolène Royal. A presence which does not give pleasure with the demonstrators inevitably. “It is Camif, it is not Ségolene!” some of them shout while moving towards the ministry, in the general indifference.
The star of this beginning of manif, it is the president of the Poitou-Charente area. In echo with the trade unionist, it “invites the government to help Camif as he did with the banks. It is inadmissible. It is necessary that 1.500 employment is saved. That Sarkozy stops lying. That is enough to put billion in the banks. The bankers will continue to earn money. Whereas there are people who are with unemployment.”
While she answers the questions of the journalists, the employees of Camif continue their walk with the cries of “Not with the dismissals” and whistles. Royal will join them later ten minutes. Isabelle, forty, came to support her husband. She also works in the company, but in another division, Camif habitat. “One hopes to obtain under preventing that our company dies. All these unemployed should be avoided. Luc Chatel [the Secretary of State in charge with Industry and Consumption, ndrl] proposes formations to us. It is well. But one makes what in eight month?”
“That is there, I am unemployed”
At his sides, Dominique, her husband, seems cut down. He learned his dismissal Monday: “That is there, I am unemployed. I do not know at all what I will do now. Niort, it is a town of 70.000 inhabitants. Ca will be hard to find work for all that people. One took a cap on the corner of the figure. One does not know what will be done our future.”
CRS mass under the building of the ministry to prevent that the demonstrators do not approach any. At the same moment, a meeting is held between the leaders of the company, the trade unions and of the members of the ministry. The demonstrators face CRS. They continue to launch their slogan. Without animosity. Environment is calm. Cordial. ( Camif )
Jean-Marie is not yet with unemployment. “I will receive my letter of dismissal very soon, explain it, the sad air. Separately to come to express here, we do not have any capacity. It is known very well that the company will close, that the wool will be mowed. What can one face a company which closes? One wants just to say to the others paid to remain waked up, because, today, it is our company which is in difficulty. And soon, that can be theirs. It is necessary that they are vigilant!”
He offusque step of the presence of Ségolène Royal: “It is for two reasons. Already, because this closing relates to its area. It is interdependent.” And the second? “When one sees the media raout which surrounds it, one knows very well why it is there”, slips it with a wink.
“A civil servant, even badly noted, must have sufficient wages”
The agents of the public office will be paid soon with the merit. This new system worries the trade unions which ask for security.
Civils servant from now on paid with the merit. The idea is not new, but the calendar is specified. A decree must appear in the next days, “at the beginning of November” ensures the ministry for the Public office. ( Finance Information City )
Initially the few 200.000 civils servant of State of “the administrative die will be concerned”. But in the long term, all the public office will adopt this new system of remuneration, called “premium of functions and results” (PFR).
“This term can bring to a confusion. It is not only one premium, because all the system of remuneration of the civils servant is reconsidered” explains one with the cabinet of Eric Woerth, the Minister for the budget and the Public office. “There will be part of remuneration fixed, according to the rank and the responsibilities. And a variable part, according to the annual maintenance of evaluation.”
“It is the open door with arbitrary”
For the trade unions, this premium of functions and results - intended to replace all the existing allowances and other allowances - are source of concerns. Favorable “to the taking into account of the merit in the remuneration of the civil servant”, the CFTC-FAE fears on the other hand the installation of this reform. “The passage from one marking system to another must be done in progressive manner and not day at the following day as the government considers it. We also wish to have guarantees of equity: a civil servant, even badly noted, must have sufficient wages to live!”
“Absurd, the civil servant will not have to do intelligent work any more but figure” is indignant the Solidaires trade union, in a leaflet published last on October 20. “False, the ministry answers, one will evaluate the quality (and not the quantity) of provided work! With methods evaluation adapted to each trade. For several months, one has endeavoured to form our DRH (Directing human resources, note) with the techniques of evaluation.” And to add, to reassure the anxious ones: “Besides, one will go there prudently: each ministry will take the time necessary to rock of a system of remuneration to the other.”
Thi-Trinh Lescure, deputy associated trade union Interdependent, in démord not: “once more, it is logic even public service which is attacked: how can one base all the evaluation on only one annual maintenance with the hierarchy? It is the open door with arbitrary”, regrets it. “Include/understand well, we are not against a de-dusting of the current marking system, a blow of brush is necessary. But there, one passes from an extreme to the other!”
Civils servant from now on paid with the merit. The idea is not new, but the calendar is specified. A decree must appear in the next days, “at the beginning of November” ensures the ministry for the Public office. ( Finance Information City )
Initially the few 200.000 civils servant of State of “the administrative die will be concerned”. But in the long term, all the public office will adopt this new system of remuneration, called “premium of functions and results” (PFR).
“This term can bring to a confusion. It is not only one premium, because all the system of remuneration of the civils servant is reconsidered” explains one with the cabinet of Eric Woerth, the Minister for the budget and the Public office. “There will be part of remuneration fixed, according to the rank and the responsibilities. And a variable part, according to the annual maintenance of evaluation.”
“It is the open door with arbitrary”
For the trade unions, this premium of functions and results - intended to replace all the existing allowances and other allowances - are source of concerns. Favorable “to the taking into account of the merit in the remuneration of the civil servant”, the CFTC-FAE fears on the other hand the installation of this reform. “The passage from one marking system to another must be done in progressive manner and not day at the following day as the government considers it. We also wish to have guarantees of equity: a civil servant, even badly noted, must have sufficient wages to live!”
“Absurd, the civil servant will not have to do intelligent work any more but figure” is indignant the Solidaires trade union, in a leaflet published last on October 20. “False, the ministry answers, one will evaluate the quality (and not the quantity) of provided work! With methods evaluation adapted to each trade. For several months, one has endeavoured to form our DRH (Directing human resources, note) with the techniques of evaluation.” And to add, to reassure the anxious ones: “Besides, one will go there prudently: each ministry will take the time necessary to rock of a system of remuneration to the other.”
Thi-Trinh Lescure, deputy associated trade union Interdependent, in démord not: “once more, it is logic even public service which is attacked: how can one base all the evaluation on only one annual maintenance with the hierarchy? It is the open door with arbitrary”, regrets it. “Include/understand well, we are not against a de-dusting of the current marking system, a blow of brush is necessary. But there, one passes from an extreme to the other!”
The Stock Exchange applauds the strong reduction of the losses of Alcatel Lucent
The equipment supplier lost 40 million euros against 345 million one year earlier. The sales drop of more than 6% to 4,06 billion. the group confirms its objectives 2008. Alcatel-Lucent seeks to yield its share in Thalès. The title flies away of more than 20%. ( What is " Stock Mutual Funds " ? )
The group confirms the whole of the objectives 2008, namely a fall from 2 to 5% of the turnover with current exchanges. The gross margin should be established between 34% and 36% and the adjusted trading margin going from 2% to 5%.
On October 13, the French group Dassault Aviation had announced to covet the block of Thalès titles held by Alcatel-Lucent “if it proved to be available to the sale”. The Franco-American equipment supplier “had then taken note” of the interest expressed by Dassault. Group EADS also announced its interest: according to a source close to the file, it made an offer at the beginning of October to repurchase this participation, developing it to 1,81 billion euros.
The managing director of Alcatel-Lucent, Ben Verwaayen, declared Thursday at the time of a conference call that the group will announce a complete strategic review in December. He explains why the group must redefine its strategy, to reduce his wallet. The group continues to provide that its clear debt at the end of 2008 will be significantly lower than its level at the end of June 2008.
The investors greet these advertisements. The title leaps from 20,94% to 2,03 euros.
The equipment supplier in télécoms Alcatel-Lucent announces this Thursday a net loss of 40 million euros to the third quarters, against a loss of 345 million one year earlier. Even if the improvement is sensitive, the group misses the objectives by the analysts. The Reuters consensus counted on a result close to 60 million euros. Dimensioned turnover, it is registered to 4,065 billion, in fall of 6,6. The analysts misaient on 4,087 billion. Lastly, the turnover adjusted arises to 40 million, very far from the consensus of the analysts who counted on a result of 99 million. ( Finance Information City )
The group confirms the whole of the objectives 2008, namely a fall from 2 to 5% of the turnover with current exchanges. The gross margin should be established between 34% and 36% and the adjusted trading margin going from 2% to 5%. The equipment supplier in Alcatel-Lucent telecommunications confirmed Thursday to examine a “possible transfer” of his participation of 20,8% in the group of French electronics Thalès, coveted by the airframe manufacturer Dassault and group EADS. “Alcatel-Lucent estimates that it is possible to maintain its partnerships in progress with Thalès without necessarily having capital intensive bond with this company”, the group in an official statement underlined, at the time of the publication of its quarterly results. It “examines in this moment all the possible strategic options concerning its participation of 20,8% in Thalès, including a possible transfer, in the best interest of its shareholders”, it added.
On October 13, the French group Dassault Aviation had announced to covet the block of Thalès titles held by Alcatel-Lucent “if it proved to be available to the sale”. The Franco-American equipment supplier “had then taken note” of the interest expressed by Dassault. Group EADS also announced its interest: according to a source close to the file, it made an offer at the beginning of October to repurchase this participation, developing it to 1,81 billion euros.
The managing director of Alcatel-Lucent, Ben Verwaayen, declared Thursday at the time of a conference call that the group will announce a complete strategic review in December. He explains why the group must redefine its strategy, to reduce his wallet. The group continues to provide that its clear debt at the end of 2008 will be significantly lower than its level at the end of June 2008.
The investors greet these advertisements. The title leaps from 20,94% to 2,03 euros.
USA: fold less important than envisaged GDP in the 3rd quarter
the growth in the United States amounted to -0,3% with the third quarters, which is higher than the average forecast of the economists of -0,5%. At the second quarters, it was of 2,8%. The price index PCE increased by 5,4%, on line with waitings.
GDP (Gross domestic product): Value of all the goods and services produced inside the geographical limits of a country or a territory during a given period.
Growth (economic): Durable increase in the economic activity of a country, which one notes in particular by the trend of prices, the production, the incomes.
This growth is evaluated starting from the indicator of the gross domestic product (GDP = value of all the goods and services produced inside the geographical limits of a country) or starting from the rough national product (GNP), which takes account of flows of incomes of the economic factors between a country and the rest of the world.
Inflation: measured by the rise of the prices the consumer, it corresponds to a progressive fall of the value of the currency. Generally, a strong inflation benefits the debtor, while the creditor suffers from it.
To measure inflation, the central banks are interested in the subjacent consumer price index, i.e. out the volatile elements which are energy and the food. One then speaks about consumer price index “core”. The EDF privileges index PCE “core” which measures the trend of prices related to the household consumption.
The level of inflation regarded as acceptable by the ECB is of 2% per annum. In the United States, the “zone of comfort” of the EDF is from 1% to 2%. ( Finance Information City )
GDP (Gross domestic product): Value of all the goods and services produced inside the geographical limits of a country or a territory during a given period.
Growth (economic): Durable increase in the economic activity of a country, which one notes in particular by the trend of prices, the production, the incomes.
This growth is evaluated starting from the indicator of the gross domestic product (GDP = value of all the goods and services produced inside the geographical limits of a country) or starting from the rough national product (GNP), which takes account of flows of incomes of the economic factors between a country and the rest of the world.
Inflation: measured by the rise of the prices the consumer, it corresponds to a progressive fall of the value of the currency. Generally, a strong inflation benefits the debtor, while the creditor suffers from it.
To measure inflation, the central banks are interested in the subjacent consumer price index, i.e. out the volatile elements which are energy and the food. One then speaks about consumer price index “core”. The EDF privileges index PCE “core” which measures the trend of prices related to the household consumption.
The level of inflation regarded as acceptable by the ECB is of 2% per annum. In the United States, the “zone of comfort” of the EDF is from 1% to 2%. ( Finance Information City )
The activism of the central banks pays
For a few days, the various central banks have évertuent themselves to reassure the markets, with blow of fall of the rates, in order to support the growth. The recession points its end of the nose and the example of Hungary or the Ukraine, which have just obtained a help of the IMF, shows at which point the crisis does not save any country. It is not a news either: the United Kingdom, the euro area and the United States are or soon will be in recession. The question is rather to know of which width will be the recession. ( Finance Information City ) Meanwhile, the authorities endeavour to reassure. The Norwegian central bank today has just lowered its principal rate of half-time, that is to say the second fall in two weeks, while the EDF should announce in end-of-day a new fall of the rates in order to support the activity. Lastly, even the ECB yields to this movement since Jean Claude Trichet made it clear at the beginning of week that a fall of the rates is possible at the conclusion of the meeting of November 6.
The prospect for fall of rate has at least a positive effect on the currencies since the euro and the pound sterling benefit from a less aversion for the risk. For as much, the movement was not reversed, in spite of the fall yesterday yen vis-a-vis the other currencies. The investors remain careful but start to join again with confidence. Timidly.
The prospect for fall of rate has at least a positive effect on the currencies since the euro and the pound sterling benefit from a less aversion for the risk. For as much, the movement was not reversed, in spite of the fall yesterday yen vis-a-vis the other currencies. The investors remain careful but start to join again with confidence. Timidly.
SNPE: privatization in sight?
The French State will be able privatiser the SNPE (national ex-company of the powders and explosives), under the terms of the bill of programming soldier 2009-2014, which was examined Wednesday in the Council of Ministers.
Let us recall that at the time of catastrophe known as AZF at Toulouse, on September 21, 2001, the factory of the SNPE - separated from its “neighbor”, property of Total Large-Parish, by the width of the Garonne - had to face important after-effects financial. The lawsuit of the catastrophe which has ravaged the Rose City from now on is planned as for him in February 2009. ( Finance Information City )
If justice and associations of victims seem in a hurry to point finger the oil group with the mega benefit - which are proven quite useful right now to finance the compensations - all does not seem as limpid as it does not appear to with it on the file. In any event that it that is to say the truth - if it appears one day - it seems increasingly probable that the State will seek to minimize as much as making any possible responsibility little, for - in particular - not being seen constrained to draw from already empty cases.
The law aims at “allowing the transfer to the private sector of company SNPE, its credits and its subsidiary company SNPE Energy Materials (EMS)”. The State is shareholder of this company, created in 1971, to a total value of 99,972%.
The military bill of programming registers “the SNPE in the list of the companies being able to be privatized” because “it is time to work with the reorganization and to the reorganization of this absolutely strategic company in a certain number of fields”, explained the Minister for Defense Herve Morin at the time of a press conference.
“I did not say that the SNPE was privatisait, I said that one set up the elements allowing to organize the reorganization of the SNPE”, it however specified, being pleased with this evolution, whereas “that made 15 years” that the file is evoked.
“We engaged of the discussions with a certain number of French industrialists who will allow to preserve the industrial tools, competences and know-how which we need”, it added.
The bill makes also possible “the installation of a specific action to the capital of the SNPE” or subsidiary companies concerned, “in the event of need for the protection of the national interests”.
Disocurs extremely interesting when it is known that on September 1, 2001, is three weeks BEFORE the catastrophe of the chemical pole of Toulouse known as catastrophe AZF, the site neighbor of the factory Large-Parish - which had fallen recently into the bosom from Total - had been placed in Vigipirate reinforced, taking into account the strategic activities of the site.
Mid-October 2008, the daily newspaper the Echoes affirmed that the French State prepared with privatiser this company in order to allow its bringing together with French Safran. According to the newspaper, a decree should organize the passage of the activities of propulsion of the SNPE, SNPE Energy Materials (EMS), under the crook of the motor mechanic Snecma Propulsion Solid (SPS), subsidiary of Safran.
If these two entities approached, France would imitate the American model where the two national solid propellant suppliers, ATK and Aerojet, are at the same time propergolists (manufacturers of fuel for the missiles and the rockets) and motor mechanics.
SNPE, which employs 4.300 people is a French industry group “of foreground in the chemistry of energy materials present in the middle of many defense systems and civilians, in particular in the solid propulsion of the strategic, tactical missiles and of the space launchers”, according to its dires. The group is also present in fine chemistry, the chemical specialities and occupies a place of leader on the market of the commercial blasting explosives.
Following the explosion of AZF in Toulouse which would have only slightly damaged close factory SNPE, the latter was nevertheless considering prohibiting to manufacture again product of fine chemistry toxic such phosgene, which represented two thirds of its Toulouse activity.
As of the 24/10/2001, the Report/ratio of the General inspection of the environment concerning “the accident of September 21, 2001” - which then had one month an imperative time to provide its conclusions - mentions that the SNPE “underwent notable damage in its general installations” and that “one must regret of the victims, of which a death, in its personnel”. “However, no technical installation was damaged, no escape did not occur”, adds the report/ratio.
If one reads the document in detail, even between the lines, one notes on several occasions that the writers of the file propose the very short times preventing to them providing the conclusions of the expertises and from questioning all the people necessary… but the conclusion, it, like is asked well there and who more is, officially asked, letter with the support united in appendix.
Let us recall that at the time of catastrophe known as AZF at Toulouse, on September 21, 2001, the factory of the SNPE - separated from its “neighbor”, property of Total Large-Parish, by the width of the Garonne - had to face important after-effects financial. The lawsuit of the catastrophe which has ravaged the Rose City from now on is planned as for him in February 2009. ( Finance Information City )
If justice and associations of victims seem in a hurry to point finger the oil group with the mega benefit - which are proven quite useful right now to finance the compensations - all does not seem as limpid as it does not appear to with it on the file. In any event that it that is to say the truth - if it appears one day - it seems increasingly probable that the State will seek to minimize as much as making any possible responsibility little, for - in particular - not being seen constrained to draw from already empty cases.
The law aims at “allowing the transfer to the private sector of company SNPE, its credits and its subsidiary company SNPE Energy Materials (EMS)”. The State is shareholder of this company, created in 1971, to a total value of 99,972%.
The military bill of programming registers “the SNPE in the list of the companies being able to be privatized” because “it is time to work with the reorganization and to the reorganization of this absolutely strategic company in a certain number of fields”, explained the Minister for Defense Herve Morin at the time of a press conference.
“I did not say that the SNPE was privatisait, I said that one set up the elements allowing to organize the reorganization of the SNPE”, it however specified, being pleased with this evolution, whereas “that made 15 years” that the file is evoked.
“We engaged of the discussions with a certain number of French industrialists who will allow to preserve the industrial tools, competences and know-how which we need”, it added.
The bill makes also possible “the installation of a specific action to the capital of the SNPE” or subsidiary companies concerned, “in the event of need for the protection of the national interests”.
Disocurs extremely interesting when it is known that on September 1, 2001, is three weeks BEFORE the catastrophe of the chemical pole of Toulouse known as catastrophe AZF, the site neighbor of the factory Large-Parish - which had fallen recently into the bosom from Total - had been placed in Vigipirate reinforced, taking into account the strategic activities of the site.
Mid-October 2008, the daily newspaper the Echoes affirmed that the French State prepared with privatiser this company in order to allow its bringing together with French Safran. According to the newspaper, a decree should organize the passage of the activities of propulsion of the SNPE, SNPE Energy Materials (EMS), under the crook of the motor mechanic Snecma Propulsion Solid (SPS), subsidiary of Safran.
If these two entities approached, France would imitate the American model where the two national solid propellant suppliers, ATK and Aerojet, are at the same time propergolists (manufacturers of fuel for the missiles and the rockets) and motor mechanics.
SNPE, which employs 4.300 people is a French industry group “of foreground in the chemistry of energy materials present in the middle of many defense systems and civilians, in particular in the solid propulsion of the strategic, tactical missiles and of the space launchers”, according to its dires. The group is also present in fine chemistry, the chemical specialities and occupies a place of leader on the market of the commercial blasting explosives.
Following the explosion of AZF in Toulouse which would have only slightly damaged close factory SNPE, the latter was nevertheless considering prohibiting to manufacture again product of fine chemistry toxic such phosgene, which represented two thirds of its Toulouse activity.
As of the 24/10/2001, the Report/ratio of the General inspection of the environment concerning “the accident of September 21, 2001” - which then had one month an imperative time to provide its conclusions - mentions that the SNPE “underwent notable damage in its general installations” and that “one must regret of the victims, of which a death, in its personnel”. “However, no technical installation was damaged, no escape did not occur”, adds the report/ratio.
If one reads the document in detail, even between the lines, one notes on several occasions that the writers of the file propose the very short times preventing to them providing the conclusions of the expertises and from questioning all the people necessary… but the conclusion, it, like is asked well there and who more is, officially asked, letter with the support united in appendix.
Arcelor Mittal: blast furnaces with the stop in Europe
The things are specified. Whereas in mid-October, the world number one of the iron and steel industry, ArcelorMittal, had announced that it currently carried out an operation of reduction of its worldwide production of steel, Belgian trade unions indicated - after having met the direction of the group - that blast furnaces were going to be temporarily shut down in several countries of Europe, of which France, Belgium and Germany.
According to a person in charge of the Christian trade union CSC Metal, Jordan Atanasov, the direction of ArcelorMittal Belgium explained at a meeting Thursday evening why “blast furnace 6” of Seraing, in area inhabitant of Li2ege, started again in March, would be again shut down “in 15 days” and at least until the mid-February.
According to the Belgian trade unions, the direction of the group announced at this meeting temporary closing several other blast furnaces in France (Dunkirk) and Germany (Bremen, Eko Stahl).
The few 120 people who work with the blast furnace of Seraing will be placed economic unemployed or will take their compensatory days off, according to the trade unions, which fear that other tools of the basin inhabitant of Li2ege, like the coking plant, are also temporarily shut down. ( Finance Information City )
Monday, the direction of the group had announced the economic unemployed setting, one to two days per week, from approximately 1.850 paid of its site of Ghent, specialized in the production of sheets for auto industry, in order to adjust the production with the decrease in the international demand.
Announced the past week, the reduction of the production of the Dunkirk factory of Arcelor is from now on effective. Blast furnace 2 (HF2) is with the complete stop, tandis the HF3 and HF4 are in minimal pace and stop 24 hours in alternation each week. According to CGT, this slowed down production would not affect - for the moment - not the volume of hours worked.
The iron and steel site Arcelor-Mittal de Fos-sur-Mer (Rhone delta) should lower as for him its production at the end of the year, according to advertisement made by the direction announced it at the time of a Central committee of company (the CEC) Wednesday. “The direction announces a deceleration of production and the obligation to take paid vacations and RTT. These measurements are due to the financial crisis and economic in the country with for consequences of the impacts on the production, the investments and employment in the factory”, declared Alain Nougué, delegated CGT of the site.
The direction also informed of “the suspension of the recruitings, of the suspension of the recourse to the interim and the temporary reassignments of the personnel concerned with the deceleration of the activities”. The various services of the factory are concerned with the production decrease “due to the crisis of automobile industry” according to Mr. Nougué.
The economic crisis lets foresee a fold of the growth of the steel worldwide consumption. Of a rate of 5,2% in 2008, this one should slow down to 2,2% in 2009, according to analysts.
In September, Arcelor Mittal had indicated to count on a growth of the worldwide market of the steel “from 3 to 5% in the next years”, carried in particular by the emergent China and countries.
Thanks to this supported request, the price of steel should remain “above 1000 dollars the ton in the years to be come”, it had underlined, at the time of the advertisement of a plan of economies of 2,8 billion euros (4 billion dollars), together with reductions of manpower.
Vis-a-vis the crisis and to maintain a level of price “acceptable”…. for them, the industrialists of steel started to reduce their production. At ArcelorMittal, the fall could reach up to 15%, according to the indications provided by the group.
Such a production reduction is indeed likely to support the courses of steel, whereas the request is slowed down by the world economic deceleration, automobile industry - broad steel consumer - being particularly impacted by the crisis.
According to a person in charge of the Christian trade union CSC Metal, Jordan Atanasov, the direction of ArcelorMittal Belgium explained at a meeting Thursday evening why “blast furnace 6” of Seraing, in area inhabitant of Li2ege, started again in March, would be again shut down “in 15 days” and at least until the mid-February.
According to the Belgian trade unions, the direction of the group announced at this meeting temporary closing several other blast furnaces in France (Dunkirk) and Germany (Bremen, Eko Stahl).
The few 120 people who work with the blast furnace of Seraing will be placed economic unemployed or will take their compensatory days off, according to the trade unions, which fear that other tools of the basin inhabitant of Li2ege, like the coking plant, are also temporarily shut down. ( Finance Information City )
Monday, the direction of the group had announced the economic unemployed setting, one to two days per week, from approximately 1.850 paid of its site of Ghent, specialized in the production of sheets for auto industry, in order to adjust the production with the decrease in the international demand.
Announced the past week, the reduction of the production of the Dunkirk factory of Arcelor is from now on effective. Blast furnace 2 (HF2) is with the complete stop, tandis the HF3 and HF4 are in minimal pace and stop 24 hours in alternation each week. According to CGT, this slowed down production would not affect - for the moment - not the volume of hours worked.
The iron and steel site Arcelor-Mittal de Fos-sur-Mer (Rhone delta) should lower as for him its production at the end of the year, according to advertisement made by the direction announced it at the time of a Central committee of company (the CEC) Wednesday. “The direction announces a deceleration of production and the obligation to take paid vacations and RTT. These measurements are due to the financial crisis and economic in the country with for consequences of the impacts on the production, the investments and employment in the factory”, declared Alain Nougué, delegated CGT of the site.
The direction also informed of “the suspension of the recruitings, of the suspension of the recourse to the interim and the temporary reassignments of the personnel concerned with the deceleration of the activities”. The various services of the factory are concerned with the production decrease “due to the crisis of automobile industry” according to Mr. Nougué.
The economic crisis lets foresee a fold of the growth of the steel worldwide consumption. Of a rate of 5,2% in 2008, this one should slow down to 2,2% in 2009, according to analysts.
In September, Arcelor Mittal had indicated to count on a growth of the worldwide market of the steel “from 3 to 5% in the next years”, carried in particular by the emergent China and countries.
Thanks to this supported request, the price of steel should remain “above 1000 dollars the ton in the years to be come”, it had underlined, at the time of the advertisement of a plan of economies of 2,8 billion euros (4 billion dollars), together with reductions of manpower.
Vis-a-vis the crisis and to maintain a level of price “acceptable”…. for them, the industrialists of steel started to reduce their production. At ArcelorMittal, the fall could reach up to 15%, according to the indications provided by the group.
Such a production reduction is indeed likely to support the courses of steel, whereas the request is slowed down by the world economic deceleration, automobile industry - broad steel consumer - being particularly impacted by the crisis.
General Motors does not see the end
Sales of American manufacturers are down 11.4% in the third quarter because of the current economic environment.
General Motors has released third quarter sales down 11.4%, amounting to 2115 million vehicles. It is up to the second place car world, behind the Japanese Toyota, whose sales amounted to 2236 million dollars. GM had already been dethroned by Toyota, the previous six months, ending a reign unchallenged several years. ( Finance Information City )
The American manufacturer is suffering from slowing demand in Europe and North America. GM sales are down 18.9% in the USA and 12.3% in Europe. The group may count on emerging countries and the Middle East to restore its balance sheet. Sales in Latin America, Africa and Middle East increased by 3.4%, and Asia-Pacific 2.6%. "The recent problems in financial markets worldwide, including tightening credit and falling prices, have adversely affected demand. However, our sales performance shows that we continue to seize opportunities offered by emerging markets, "said vice-president of GM, Jonathan Browning.
In the brand portfolio of General Motors, some suffer more than others. This is the case for Chevrolet, which saw its sales fall by 8.3%, while Daewoo rose by 4.7%, even though it represents only 1.5% of sales. More specifically, sales of 4x4 Hummer, GM's flagship brand that the group wishes to sell, fell by half. The brands Opel / Vauxhall, which contribute up to 16% of sales are down 16.3%.
GM reorganizes
On 23 October, the Detroit group had announced a further wave of redundancies, in addition to the 73,000 envisaged by the plan of voluntary departures. According to a letter published by the Wall Street Journal, changes in wages will also be made.
GM faces many problems cash. In the second quarter of 2008, the group recorded a loss of 15.5 billion dollars and has lost 66 billion dollars since 2005. The title has lost 83% of its value last year.
According to The New York Times, GM and Chrysler, seek aid from 10 billion dollars of government in order to best achieve their proposed merger.
General Motors has released third quarter sales down 11.4%, amounting to 2115 million vehicles. It is up to the second place car world, behind the Japanese Toyota, whose sales amounted to 2236 million dollars. GM had already been dethroned by Toyota, the previous six months, ending a reign unchallenged several years. ( Finance Information City )
The American manufacturer is suffering from slowing demand in Europe and North America. GM sales are down 18.9% in the USA and 12.3% in Europe. The group may count on emerging countries and the Middle East to restore its balance sheet. Sales in Latin America, Africa and Middle East increased by 3.4%, and Asia-Pacific 2.6%. "The recent problems in financial markets worldwide, including tightening credit and falling prices, have adversely affected demand. However, our sales performance shows that we continue to seize opportunities offered by emerging markets, "said vice-president of GM, Jonathan Browning.
In the brand portfolio of General Motors, some suffer more than others. This is the case for Chevrolet, which saw its sales fall by 8.3%, while Daewoo rose by 4.7%, even though it represents only 1.5% of sales. More specifically, sales of 4x4 Hummer, GM's flagship brand that the group wishes to sell, fell by half. The brands Opel / Vauxhall, which contribute up to 16% of sales are down 16.3%.
GM reorganizes
On 23 October, the Detroit group had announced a further wave of redundancies, in addition to the 73,000 envisaged by the plan of voluntary departures. According to a letter published by the Wall Street Journal, changes in wages will also be made.
GM faces many problems cash. In the second quarter of 2008, the group recorded a loss of 15.5 billion dollars and has lost 66 billion dollars since 2005. The title has lost 83% of its value last year.
According to The New York Times, GM and Chrysler, seek aid from 10 billion dollars of government in order to best achieve their proposed merger.
Michelin reduces its forecasts of operating margin
The turnover of the French manufacturer moved back of 1,1% over the first nine months of the year, impacted by the elevated level of the euro. And the group is careful concerning its annual forecasts.
Michelin awaits nothing any more but one operating margin ranging between 7 and 7,5%. ( Finance Information City )
Michelin is careful. Without saying it, the manufacturer reduced his forecast of operating margin. “The evolutions noted since the beginning of October represent more marked degradation of the request in the majority of the countries of Europe and of North America”, explains the manufacturer. “If this tendency were to be confirmed during December and November, the operating margin, before nonrecurring elements, would range then between 7% and 7,5%”. Michelin counted until now on an operating margin close to 8,6%.
In addition, the group published this Wednesday a turnover in fold of 1,1% over the first nine months of the year, because of the “very strong negative impact of rates of exchange, taking into account in particular the depreciation compared to the euro of the American dollar, the British book and the Mexican peso”. The incomes of the group thus rose to 12,45 billion euros.
Except exchange bills, the turnover increased by 4,5% during the first three quarters of the year. At the time of the only third quarters, the incomes (4,2 billion euros) of the manufacturer increased by 0,7% and 5,1% with fixed exchange rate. The negative impact of the exchanges was reduced between July and September, “with the favour in particular of the relative increase in the American dollar compared to the euro”.
In volume, the sales of the manufacturer were registered in rise of 1,4% in volume over the first nine months of the year. They remained stable between July and September, in spite of the strong recent degradation of the markets European and North-American.
Lastly, the price effect was important, in particular with the third quarters, “reflecting implementation the progressive of price increases on all the products and everywhere in the world”. And “this effect should be still reinforced during the next months”.
Michelin awaits nothing any more but one operating margin ranging between 7 and 7,5%. ( Finance Information City )
Michelin is careful. Without saying it, the manufacturer reduced his forecast of operating margin. “The evolutions noted since the beginning of October represent more marked degradation of the request in the majority of the countries of Europe and of North America”, explains the manufacturer. “If this tendency were to be confirmed during December and November, the operating margin, before nonrecurring elements, would range then between 7% and 7,5%”. Michelin counted until now on an operating margin close to 8,6%.
In addition, the group published this Wednesday a turnover in fold of 1,1% over the first nine months of the year, because of the “very strong negative impact of rates of exchange, taking into account in particular the depreciation compared to the euro of the American dollar, the British book and the Mexican peso”. The incomes of the group thus rose to 12,45 billion euros.
Except exchange bills, the turnover increased by 4,5% during the first three quarters of the year. At the time of the only third quarters, the incomes (4,2 billion euros) of the manufacturer increased by 0,7% and 5,1% with fixed exchange rate. The negative impact of the exchanges was reduced between July and September, “with the favour in particular of the relative increase in the American dollar compared to the euro”.
In volume, the sales of the manufacturer were registered in rise of 1,4% in volume over the first nine months of the year. They remained stable between July and September, in spite of the strong recent degradation of the markets European and North-American.
Lastly, the price effect was important, in particular with the third quarters, “reflecting implementation the progressive of price increases on all the products and everywhere in the world”. And “this effect should be still reinforced during the next months”.
The stock exchange crash threatens the retirements in many countries
Sandrine Prod' Man, Free-Rwandan 32 years, left to work as consulting five years ago in San Francisco. Like the near total of paid in the United States, it cotise each month for its retirement in pension funds private. She chose a plan “401-k”, which enables him to decide where to place its saving. Like the majority of the Americans, it invested out of Stock Exchange, which is riskier but potentially remunerative. But since the beginning of the stock exchange crash, she sees her capital reprocesses to melt each month more: “For this summer, that has not stopped. In eight month, my 401-k lost 40%, it is a catastrophe.” ( Finance Information City )
They are 51 million Americans in his case to have seen disappearing in a few months from the years from economies. The extent of the crisis is such as all the American pension funds were touched.
According to Congressional Budget Office (CBO), the funds would have lost on the whole 2.000 billion dollars in fifteen months (20% of their value). Famous CalPERS and CalSTRS, dedicated to the financing of the retirements of the civils servant and professors de Californie, melted 26% and 10% since the end of June.
“I am not more to feel sorry for. I am thirty years old to remake myself, continues Sandrine Prod' Homme. But those which wanted to take their retirement in five or ten years and left theirs under out of Stock Exchange are with most badly. The majority must move back the moment of the departure to the retirement. Some envisage to stop at 80 years!”
“FAULTS OF ALL THE SYSTEM”
With the crisis, it is all the retirement scheme by capitalization which wavers. The United States, the Social security makes it possible to touch a pension but the granted amount, corresponding on average to 40% of the wages, is often insufficient and all the Americans do not have right there. The near total of them thus cotisent in pension funds. Maybe in plans with “guaranteed benefit”, where the employee pours a contribution with his company which begins to pour to him a retirement for an amount fixed in advance (if the company cannot do it, the Pension Benefit Guaranty Corporation, an organization of State, takes over). Either it decides to place its capital at its own way in funds unguaranteed but more flexible and often abounded by the company, like famous “the 401-k”, and receives with its retirement the capital which it will have made bear fruit.
“Today the financial storm reveals the faults of all the system”, concludes the economist Thomas Philippon, professor at the university of New York. The guaranteed plans “put in difficulties the companies. General Motors suffers from it dramatically today”, indicates it, because in fact the companies must finance these retirements whereas the crisis puts at evil their incomes. While the unguaranteed plans penalize the employees. “Overall, the idea sails very about it up to now to finance the retirements only by capitalization is called in question”, estimates Mr. Philippon.
In fact, the United States is not alone in the storm. All the countries which chose an equivalent system, supposed to solve the headache of the financing of the retirements by distribution threatened by ageing of the population, are concerned. In Chile, where the system was privatisé in the years 1980, the pension funds would have lost 20% of their value. In Argentina, vis-a-vis the failure of the private funds, the State even decided to nationalize the system and to use the 26 billion dollars managed up to now by the funds to create a public mode.
“In these two countries, the subject of the retirements is ultra-problems, but in Argentina undoubtedly more than in Chile, comments Pierre de Beaulaincourt, economist at Natixis, because one is unaware of still if the government decided to nationalize the retirements to protect the savers or to make control on their capital.” The crisis indeed also put at evil the Argentinian public purses and this one already announced that it would repatriate Brazil 544 million dollars of the pension funds to reinforce the domestic market of the capital.
In Europe, the United Kingdom, the Netherlands, Norway, Sweden or Finland are also touched. But it is in Poland, Hungary and a Czech Republic who the difficulties are most serious. Over there, the systems were privatisés more recently, to free of debts the States and to follow the recommendations of the large international organizations (Funds international currency, Cooperation organization and of development economic). And contrary to those of the Scandinavian or Anglo-Saxon countries, these funds did not accumulate enough capital to resist an acute and long crisis.
“When the Stock Exchange went up, one paid too much attention to the systems by capitalization, the retirement schemes were individualized. Today, it is every man for himself and the employees are likely to find themselves with poor retirements”, alerts Pierre Habbard, of the TUAC, the advisory trade-union commission of OECD.
Conscious of the problem, the Organization launched a consultation within the various countries where exist pension funds and will publish in December an assessment to quantify the width of the damage and “to learn the many lessons” from this crisis, one of its representatives ensures.
They are 51 million Americans in his case to have seen disappearing in a few months from the years from economies. The extent of the crisis is such as all the American pension funds were touched.
According to Congressional Budget Office (CBO), the funds would have lost on the whole 2.000 billion dollars in fifteen months (20% of their value). Famous CalPERS and CalSTRS, dedicated to the financing of the retirements of the civils servant and professors de Californie, melted 26% and 10% since the end of June.
“I am not more to feel sorry for. I am thirty years old to remake myself, continues Sandrine Prod' Homme. But those which wanted to take their retirement in five or ten years and left theirs under out of Stock Exchange are with most badly. The majority must move back the moment of the departure to the retirement. Some envisage to stop at 80 years!”
“FAULTS OF ALL THE SYSTEM”
With the crisis, it is all the retirement scheme by capitalization which wavers. The United States, the Social security makes it possible to touch a pension but the granted amount, corresponding on average to 40% of the wages, is often insufficient and all the Americans do not have right there. The near total of them thus cotisent in pension funds. Maybe in plans with “guaranteed benefit”, where the employee pours a contribution with his company which begins to pour to him a retirement for an amount fixed in advance (if the company cannot do it, the Pension Benefit Guaranty Corporation, an organization of State, takes over). Either it decides to place its capital at its own way in funds unguaranteed but more flexible and often abounded by the company, like famous “the 401-k”, and receives with its retirement the capital which it will have made bear fruit.
“Today the financial storm reveals the faults of all the system”, concludes the economist Thomas Philippon, professor at the university of New York. The guaranteed plans “put in difficulties the companies. General Motors suffers from it dramatically today”, indicates it, because in fact the companies must finance these retirements whereas the crisis puts at evil their incomes. While the unguaranteed plans penalize the employees. “Overall, the idea sails very about it up to now to finance the retirements only by capitalization is called in question”, estimates Mr. Philippon.
In fact, the United States is not alone in the storm. All the countries which chose an equivalent system, supposed to solve the headache of the financing of the retirements by distribution threatened by ageing of the population, are concerned. In Chile, where the system was privatisé in the years 1980, the pension funds would have lost 20% of their value. In Argentina, vis-a-vis the failure of the private funds, the State even decided to nationalize the system and to use the 26 billion dollars managed up to now by the funds to create a public mode.
“In these two countries, the subject of the retirements is ultra-problems, but in Argentina undoubtedly more than in Chile, comments Pierre de Beaulaincourt, economist at Natixis, because one is unaware of still if the government decided to nationalize the retirements to protect the savers or to make control on their capital.” The crisis indeed also put at evil the Argentinian public purses and this one already announced that it would repatriate Brazil 544 million dollars of the pension funds to reinforce the domestic market of the capital.
In Europe, the United Kingdom, the Netherlands, Norway, Sweden or Finland are also touched. But it is in Poland, Hungary and a Czech Republic who the difficulties are most serious. Over there, the systems were privatisés more recently, to free of debts the States and to follow the recommendations of the large international organizations (Funds international currency, Cooperation organization and of development economic). And contrary to those of the Scandinavian or Anglo-Saxon countries, these funds did not accumulate enough capital to resist an acute and long crisis.
“When the Stock Exchange went up, one paid too much attention to the systems by capitalization, the retirement schemes were individualized. Today, it is every man for himself and the employees are likely to find themselves with poor retirements”, alerts Pierre Habbard, of the TUAC, the advisory trade-union commission of OECD.
Conscious of the problem, the Organization launched a consultation within the various countries where exist pension funds and will publish in December an assessment to quantify the width of the damage and “to learn the many lessons” from this crisis, one of its representatives ensures.
The ridiculous blaze of Volkswagen out of Stock Exchange
Volkswagen in this moment is risée of the markets. The action of the German car manufacturer was multiplied by five in two days, Monday 27 Tuesday October 28. These surrealist variations do not have a relationship with fundamental company… but have very to see with a takeover operated in writing pad by a competitor of smaller gauge, Porsche. ( Finance Information City )
By announcing, Monday, that it held 42,6% of the capital of Volkswagen, as well as a certain number of options enabling him to acquire an additional section of 31,5%, Porsche started a panic at the speculative funds (hedge funds), which had sold the title with overdraft. To cover these positions, they sought to get actions at all costs, thus causing a blaze of the course: the action was worth up to 1.000 euros, that is to say 20 times the target value fixed by the majority of the analysts.
The bleeding leaves of it more penaud, to start with the short sellers. They probably put on the fact that Porsche would suspend his repurchase campaign at once the threshold of 51% reached, and that of this fact the title targets would pack during some time. It was to neglect the weakness of the hot money of Volkswagen, and to show as much unconsciousness than somebody who puts himself across the way of a road roller to collect a coin.
The regulatory agencies of the German market hardly were shown more warned. Porsche was not obliged to make public his activity on the market of the options, whereas these positions could enable him to put indeed the hand on the subjacent titles.
Porsche remained fuzzy on the type of held options. It is not known either if they enable him in practice to buy the Volkswagen actions.
Porsche will not hasten to give more details. It is thought that the manufacturer sold quantity of options to sell of Volkswagen actions on the market. When the title weakened during last summer, it surely recorded phenomenal virtual losses and measured the cost of the additional cover that it would be necessary for him to provide. The blaze of the course of Volkswagen constituted a temporary solution convenient good with all these problems. Porsche does not make any comment on top.
The bleeding leaves of it more penaud, to start with the short sellers. They probably put on the fact that Porsche would suspend his repurchase campaign at once the threshold of 51% reached, and that of this fact the title targets would pack during some time. It was to neglect the weakness of the hot money of Volkswagen, and to show as much unconsciousness than somebody who puts himself across the way of a road roller to collect a coin.
The regulatory agencies of the German market hardly were shown more warned. Porsche was not obliged to make public his activity on the market of the options, whereas these positions could enable him to put indeed the hand on the subjacent titles.
Porsche remained fuzzy on the type of held options. It is not known either if they enable him in practice to buy the Volkswagen actions.
Porsche will not hasten to give more details. It is thought that the manufacturer sold quantity of options to sell of Volkswagen actions on the market. When the title weakened during last summer, it surely recorded phenomenal virtual losses and measured the cost of the additional cover that it would be necessary for him to provide. The blaze of the course of Volkswagen constituted a temporary solution convenient good with all these problems. Porsche does not make any comment on top.
Hungary, placed under perfusion, will tighten the belt
Hungary, struck full whip by the international financial crisis, was placed under perfusion by the European Union and the international financial institutions and will have to implement a budget of austerity with a reduction of the government's rate of expenditure. ( Finance Information City )
The Funds international currency (the IMF) granted Tuesday to Hungary 12,5 billion euros of loans, followed by the EU who resolved 6,5 billion euros and the World Bank with a billion euros.
Previously, the European Central bank (ECB) had promised in mid-October a loan of 5 billion euros in Budapest to help it to overcome its problems of liquidities of the banks. This loan was the first in the history of the ECB allotted to a country non-member of the euro area.
The financial perfusion intervenes after the dive of the Magyar currency of 20% compared to the euro in October, fallen Saturday with 285 forints for one euro, and the Budapest Stock Exchange tumble whose index BUX lost more half of its value.
Wednesday, the forint went back to 255,61 forints for one euro and the BUX was clearly hardened gaining more than 11% after the advertisement of the massive assistances of the international institutions.
As of Tuesday, the First socialist minister Ferenc Gyurcsany, with the head of a minority government, had stressed that he wanted “to eliminate the risk of the bankruptcy of the State even under the worst scenario of evolution of the international financial crisis”. He was to specify measurements which he intended on television to take in the evening.
A foreground of austerity launched by the Prime Minister had made it possible to bring back the budget deficit of 9,2% of the GDP in 2006 to 5% in 2007 and the government envisages 2,6% per 2009.
The trade banks were delighted Wednesday by the international support: “The process of correction of the area will continue, that prevails for Hungary also which already proved in the past that it is able to overcome the challenges of a negative environment”, announced in an official statement Herbert Stepic, chairman of Raiffeisen International, banks Austrian present in Hungary since 1986.
Its counterpart of the Austrian group Erste Bank, Andreas Treichl, stressed that “negative environment surrounding the area and especially Hungary did not reflect the enormous growth potential of the real economies”.
For the analyst of bank K&H György Barcza, “in addition to a demonstration of solidarity within the EU, the loans for Hungary mean that the financial institutions would not let in no case to develop a scenario of dominos” in the area.
According to him, the loan of the IMF and that of the ECB are enough to finance the short-term expiry of the foreign debt of the country (32 billion euros) whereas the total public debt is of more than 60% of Gross domestic product (GDP). “80% of the Hungarian banks are subsidiary companies of banks German and Austrian and they cannot be allowed that the crisis are propagated with the head offices”, he added.
As of Tuesday, Ferenc Gyurcsany had announced a probable recession of the economy, considering even a retreat of 1% of the growth in 2009, and had suggested a first series of economies. It thus evoked for 2009 the freezing of the wages and the not-payment of 13th month in the public office as well as the non-payment of the annual no-claims bonus of the leaders of the state enterprises. A tax reform as that of the retirements are also considered.
“The government endeavours to protect until its last blood drops the position from the pensioners”, who do not perceive on average that 55.000 forints/month is 215 euros, according to the Prime Minister. He however proposed that 13th month of retirement is paid only with more than 62 years and is limited to 80.000 forints (312 euros).
The trade unions see in this plan of austerity “a rupture of the social pact” in force for 2008 and claimed “urgent” negotiations with the government.
The Funds international currency (the IMF) granted Tuesday to Hungary 12,5 billion euros of loans, followed by the EU who resolved 6,5 billion euros and the World Bank with a billion euros.
Previously, the European Central bank (ECB) had promised in mid-October a loan of 5 billion euros in Budapest to help it to overcome its problems of liquidities of the banks. This loan was the first in the history of the ECB allotted to a country non-member of the euro area.
The financial perfusion intervenes after the dive of the Magyar currency of 20% compared to the euro in October, fallen Saturday with 285 forints for one euro, and the Budapest Stock Exchange tumble whose index BUX lost more half of its value.
Wednesday, the forint went back to 255,61 forints for one euro and the BUX was clearly hardened gaining more than 11% after the advertisement of the massive assistances of the international institutions.
As of Tuesday, the First socialist minister Ferenc Gyurcsany, with the head of a minority government, had stressed that he wanted “to eliminate the risk of the bankruptcy of the State even under the worst scenario of evolution of the international financial crisis”. He was to specify measurements which he intended on television to take in the evening.
A foreground of austerity launched by the Prime Minister had made it possible to bring back the budget deficit of 9,2% of the GDP in 2006 to 5% in 2007 and the government envisages 2,6% per 2009.
The trade banks were delighted Wednesday by the international support: “The process of correction of the area will continue, that prevails for Hungary also which already proved in the past that it is able to overcome the challenges of a negative environment”, announced in an official statement Herbert Stepic, chairman of Raiffeisen International, banks Austrian present in Hungary since 1986.
Its counterpart of the Austrian group Erste Bank, Andreas Treichl, stressed that “negative environment surrounding the area and especially Hungary did not reflect the enormous growth potential of the real economies”.
For the analyst of bank K&H György Barcza, “in addition to a demonstration of solidarity within the EU, the loans for Hungary mean that the financial institutions would not let in no case to develop a scenario of dominos” in the area.
According to him, the loan of the IMF and that of the ECB are enough to finance the short-term expiry of the foreign debt of the country (32 billion euros) whereas the total public debt is of more than 60% of Gross domestic product (GDP). “80% of the Hungarian banks are subsidiary companies of banks German and Austrian and they cannot be allowed that the crisis are propagated with the head offices”, he added.
As of Tuesday, Ferenc Gyurcsany had announced a probable recession of the economy, considering even a retreat of 1% of the growth in 2009, and had suggested a first series of economies. It thus evoked for 2009 the freezing of the wages and the not-payment of 13th month in the public office as well as the non-payment of the annual no-claims bonus of the leaders of the state enterprises. A tax reform as that of the retirements are also considered.
“The government endeavours to protect until its last blood drops the position from the pensioners”, who do not perceive on average that 55.000 forints/month is 215 euros, according to the Prime Minister. He however proposed that 13th month of retirement is paid only with more than 62 years and is limited to 80.000 forints (312 euros).
The trade unions see in this plan of austerity “a rupture of the social pact” in force for 2008 and claimed “urgent” negotiations with the government.
Japan could join the general fall of the rates
Vis-a-vis the financial crisis, Japan could join Friday the general movement of fall of the interest rate already engaged in the majority of the large industrialized countries, would be this only not to disappoint the investors who speculate from now on in such a possibility.
A fall of the Japanese rates at the conclusion of the meeting of monetary policy of Friday would be the first since seven years. It will be well discussed with the day order of the meeting of the Bank of Japan (BoJ), declared at Reuters a source being informed of the debates. The Nikkei economic daily newspaper evoked on its side a fall of 25 basic points. ( Finance Information City )
The Japanese rates are already very low, the main thing of them being fixed at 0,5%. But a fall would have the merit to constitute a message of support of the monetary authorities to the multiple initiatives adopted to try to avoid a world recession.
The Japanese economy is already touched and seems even increasingly vulnerable to the financial crisis and with its economic repercussions, the analysts underline.
BoJ for the moment abstained from softening its monetary policy, including during the spectacular coordinated fall of rate of last October 8, thus dissociating American Federal fund and European Central bank (ECB).
But it seems that it is given to show that it assumes its share of the burden before the top of G20 envisaged the next month in the United States.
“If BoJ does not lower its rates Friday, Japan will be in difficulty at the same time on the financial markets and in the field of the international policy”, estimates Susumu Kato, economist chief of Calyon to Tokyo. “Japan would not have its word to say at the time of the financial top of November 15.”
TO ACT BEFORE G20 OF November 15
The situation of the archipelago worsened these last days with the flight of the yen, considered as a blue-chip stock, a movement which penalizes the export businesses heavily.
And the official statement of G7 published Monday to regret the volatility of the Japanese currency did not have practically any effect, the investors judging that the six other members of the Group would not have any interest to intervene on the markets cause a drop in the Japanese currency.
For many observers, the Japanese exception as regards rate would be all the more difficult to assume that the Federal fund is on the point of reducing new its rates Wednesday and that the ECB as the Bank of England probably will encase the step to him the next week.
The central banks Indian, Chinese, Canadian and Australian inter alia they also softened their policies during the last weeks.
A fall of the Japanese rates is not however yet assured. The Bank of Japan will study the situation of the worldwide markets before making a decision Friday, explained at Reuters the source, which required anonymity. But for the analysts, it would be dangerous to catch on the wrong foot the markets in the current climate.
“BoJ could be driven back to lower the rates in order not to disappoint the market”, thus underlines Akihiko Yokoyama, bond strategist of JPMorgan Securities.
THE PURSE REBOUNDED OF 7,7%
Tokyo Stock Exchange rebounded of 7,7% Wednesday, grace mainly to anticipations of fall of the rates. Tuesday, New York Stock Exchange had finished on a spectacular rise of almost 11%, the rebound being accelerated at the end of the meeting after information on BoJ.
As for the yen, it underwent Tuesday in New York its stronger fall in only one meeting vis-a-vis the dollar since 1974. The markets estimate from now on at 70% the probability of a fall of rate of a quarter of point Friday, against less than 20% Tuesday.
The leaders of BoJ had until now isolated the possibility of such a fall by stressing that the Japanese recession “was imported”, via the decrease in the foreign demand. But the governor associates Kiyohiko Nishimura recognized for its part Wednesday that the economic crisis approached the archipelago.
“There exists a risk to still see worsening the total situation of the markets and economy, which would affect the Japanese economy”, he declared at the Parliament.
Tokyo Stock Exchange lost a third of its capitalization in less than one month, weakening more the large banks of the country, practically saved hitherto by the financial crisis.
On their side, the industrial companies suffer from the rise of the yen, which has recently touched its more high levels for 13 years vis-a-vis the dollar. The industrial production fell of 1,2% over the quarter July-September, its third consecutive fall, of ever seen since 2001, time to which Japan was in recession.
According to Nikkei, BoJ will bring back Friday its growth forecast of the nation's economy very nearly zero for the financial year to at the end of March, against 1,2% until now.
A fall of the Japanese rates at the conclusion of the meeting of monetary policy of Friday would be the first since seven years. It will be well discussed with the day order of the meeting of the Bank of Japan (BoJ), declared at Reuters a source being informed of the debates. The Nikkei economic daily newspaper evoked on its side a fall of 25 basic points. ( Finance Information City )
The Japanese rates are already very low, the main thing of them being fixed at 0,5%. But a fall would have the merit to constitute a message of support of the monetary authorities to the multiple initiatives adopted to try to avoid a world recession.
The Japanese economy is already touched and seems even increasingly vulnerable to the financial crisis and with its economic repercussions, the analysts underline.
BoJ for the moment abstained from softening its monetary policy, including during the spectacular coordinated fall of rate of last October 8, thus dissociating American Federal fund and European Central bank (ECB).
But it seems that it is given to show that it assumes its share of the burden before the top of G20 envisaged the next month in the United States.
“If BoJ does not lower its rates Friday, Japan will be in difficulty at the same time on the financial markets and in the field of the international policy”, estimates Susumu Kato, economist chief of Calyon to Tokyo. “Japan would not have its word to say at the time of the financial top of November 15.”
TO ACT BEFORE G20 OF November 15
The situation of the archipelago worsened these last days with the flight of the yen, considered as a blue-chip stock, a movement which penalizes the export businesses heavily.
And the official statement of G7 published Monday to regret the volatility of the Japanese currency did not have practically any effect, the investors judging that the six other members of the Group would not have any interest to intervene on the markets cause a drop in the Japanese currency.
For many observers, the Japanese exception as regards rate would be all the more difficult to assume that the Federal fund is on the point of reducing new its rates Wednesday and that the ECB as the Bank of England probably will encase the step to him the next week.
The central banks Indian, Chinese, Canadian and Australian inter alia they also softened their policies during the last weeks.
A fall of the Japanese rates is not however yet assured. The Bank of Japan will study the situation of the worldwide markets before making a decision Friday, explained at Reuters the source, which required anonymity. But for the analysts, it would be dangerous to catch on the wrong foot the markets in the current climate.
“BoJ could be driven back to lower the rates in order not to disappoint the market”, thus underlines Akihiko Yokoyama, bond strategist of JPMorgan Securities.
THE PURSE REBOUNDED OF 7,7%
Tokyo Stock Exchange rebounded of 7,7% Wednesday, grace mainly to anticipations of fall of the rates. Tuesday, New York Stock Exchange had finished on a spectacular rise of almost 11%, the rebound being accelerated at the end of the meeting after information on BoJ.
As for the yen, it underwent Tuesday in New York its stronger fall in only one meeting vis-a-vis the dollar since 1974. The markets estimate from now on at 70% the probability of a fall of rate of a quarter of point Friday, against less than 20% Tuesday.
The leaders of BoJ had until now isolated the possibility of such a fall by stressing that the Japanese recession “was imported”, via the decrease in the foreign demand. But the governor associates Kiyohiko Nishimura recognized for its part Wednesday that the economic crisis approached the archipelago.
“There exists a risk to still see worsening the total situation of the markets and economy, which would affect the Japanese economy”, he declared at the Parliament.
Tokyo Stock Exchange lost a third of its capitalization in less than one month, weakening more the large banks of the country, practically saved hitherto by the financial crisis.
On their side, the industrial companies suffer from the rise of the yen, which has recently touched its more high levels for 13 years vis-a-vis the dollar. The industrial production fell of 1,2% over the quarter July-September, its third consecutive fall, of ever seen since 2001, time to which Japan was in recession.
According to Nikkei, BoJ will bring back Friday its growth forecast of the nation's economy very nearly zero for the financial year to at the end of March, against 1,2% until now.
OPEC: towards a new reduction of the production?
OPEC seems ready to play the whole for the whole “to maintain to the purchasing power” of the producer countries members of the trust.
The Organization of the Oil exporting countries could again reduce his production declared Tuesday in London Abdallah el-Badri, the general secretary of the trust. ( Finance Information City )
A measurement of this type could be considered if the oil prices continue to fall in spite of the announced reduction Friday.
“We will have to wait and to see how the market reacts (but) if this problem continues it will be necessary to carry out a new reduction”, declared Abdallah el-Badri with the press in margin of the conference Oil and Money.
Last Friday, OPEC had decided to reduce its offer of 1,5 million barrels per day, thus trying to stop the fall of the oil prices in full international financial crisis.
Also let us point out that at the same date, the trust had invited the countries non-members of the trust, in particular Russia, to join its efforts to stabilize the ransom prices black which lost more half of their value since the record of the barrel with 147,50 dollars in July.
OPEC underlined “that one did not have to expect that (it) that is to say the only one to carry the burden to restore the market equilibrium.” Also it invited “the countries producers-exporters non-members of OPEC to contribute to its efforts to restore the prices on reasonable levels and to eliminate from the detrimental and useless fluctuations”.
The president of OPEC, the Chakib Khelil Algerian had already expressed on several occasions before the meeting, the desire that producers not-OPEC like Russia, Norway or Mexico, take part in the effort of rebalancing of the oil market.
“If we make a radical decision, they are the countries non-members of OPEC which will benefit from it more”, he had affirmed Thursday in addition, with a restricted group journalists.
The probability that producer countries out-OPEC cut in their production to join the efforts of OPEC seems however very weak.
Russia, producing first world with the neck and neck with Saudi Arabia, should abstain from, in spite of its bringing together with OPEC reaffirmed Friday. A reduction of its own volumes would do nothing but penalize it still more, whereas it must above all stabilize its national production.
Whereas Norway and Mexico already pain to stop the fast decline their layers, the spokesperson of the Norwegian ministry of Oil and Energy excluded Friday to reduce his production of oil under the current conditions of the market. According to figures of 2007, Norway is the fifth world oil exporter.
The Organization of the Oil exporting countries could again reduce his production declared Tuesday in London Abdallah el-Badri, the general secretary of the trust. ( Finance Information City )
“We will have to wait and to see how the market reacts (but) if this problem continues it will be necessary to carry out a new reduction”, declared Abdallah el-Badri with the press in margin of the conference Oil and Money.
Last Friday, OPEC had decided to reduce its offer of 1,5 million barrels per day, thus trying to stop the fall of the oil prices in full international financial crisis.
Also let us point out that at the same date, the trust had invited the countries non-members of the trust, in particular Russia, to join its efforts to stabilize the ransom prices black which lost more half of their value since the record of the barrel with 147,50 dollars in July.
OPEC underlined “that one did not have to expect that (it) that is to say the only one to carry the burden to restore the market equilibrium.” Also it invited “the countries producers-exporters non-members of OPEC to contribute to its efforts to restore the prices on reasonable levels and to eliminate from the detrimental and useless fluctuations”.
The president of OPEC, the Chakib Khelil Algerian had already expressed on several occasions before the meeting, the desire that producers not-OPEC like Russia, Norway or Mexico, take part in the effort of rebalancing of the oil market.
“If we make a radical decision, they are the countries non-members of OPEC which will benefit from it more”, he had affirmed Thursday in addition, with a restricted group journalists.
The probability that producer countries out-OPEC cut in their production to join the efforts of OPEC seems however very weak.
Russia, producing first world with the neck and neck with Saudi Arabia, should abstain from, in spite of its bringing together with OPEC reaffirmed Friday. A reduction of its own volumes would do nothing but penalize it still more, whereas it must above all stabilize its national production.
Whereas Norway and Mexico already pain to stop the fast decline their layers, the spokesperson of the Norwegian ministry of Oil and Energy excluded Friday to reduce his production of oil under the current conditions of the market. According to figures of 2007, Norway is the fifth world oil exporter.
Switzerland: important tax losses induced by the crisis
End of a myth? Times sign? The tax losses for the Swiss Confederation due to the financial crisis could reach a billion francs the next year, whereas the receipts should have bordered the 60 billion francs at the same date.
This shortfall could even climb to three billion per annum until 2012, if one believes of it the committee of supply of the Council of the States. ( Finance Information City )
Worse still if one can say: forecasts are based on the scenario of a null economic growth in 2009 for the Swiss Confederation. They were provided by representatives of the departments of finances and economy.
The commission estimates however that it is not necessary to re-examine the budget 2009, which envisages a surplus of 1,4 billion compared to the 58,6 billion expenditure envisaged. The Federal council should on the other hand adapt the financial plan 2010-2012 at the latest during his next actualization.
Even if the Genevese banks for the moment are touched little by the financial crisis, the State of Geneva must also prepare at a few more difficult years on the budgetary level. The tax contribution of the money market is likely to drop by a third on 2009-2010, indicated to Tuesday the president of Geneva Money market. The loss in taxes which would result from it for the State could reach hundreds of million francs.
The Town of Zurich, as very tributary of the financial sector, it already announced as the budget 2009 of the municipality had plunged in the red.
Let us recall however that these advertisements intervene whereas the German Minister for Peer Steinbrück Finances has just set out again with the attack against Switzerland, that he shows to encourage tax avoidance. He said himself astonished by the agitation that caused its proposal to add Switzerland to the “black list” of the tax shelters.
“No country must offer conditions which could invite the taxpayers of a Neighboring state to flee the tax department”, Mr. Steinbrück underlined. Dmegs Web Directory
This shortfall could even climb to three billion per annum until 2012, if one believes of it the committee of supply of the Council of the States. ( Finance Information City )
The commission estimates however that it is not necessary to re-examine the budget 2009, which envisages a surplus of 1,4 billion compared to the 58,6 billion expenditure envisaged. The Federal council should on the other hand adapt the financial plan 2010-2012 at the latest during his next actualization.
Even if the Genevese banks for the moment are touched little by the financial crisis, the State of Geneva must also prepare at a few more difficult years on the budgetary level. The tax contribution of the money market is likely to drop by a third on 2009-2010, indicated to Tuesday the president of Geneva Money market. The loss in taxes which would result from it for the State could reach hundreds of million francs.
The Town of Zurich, as very tributary of the financial sector, it already announced as the budget 2009 of the municipality had plunged in the red.
Let us recall however that these advertisements intervene whereas the German Minister for Peer Steinbrück Finances has just set out again with the attack against Switzerland, that he shows to encourage tax avoidance. He said himself astonished by the agitation that caused its proposal to add Switzerland to the “black list” of the tax shelters.
“No country must offer conditions which could invite the taxpayers of a Neighboring state to flee the tax department”, Mr. Steinbrück underlined. Dmegs Web Directory
Areva criticized for the monitoring of the subcontractors on the EPR
The Areva group must better supervise its subcontractors.
It is in any case the opinion given by the nuclear Authority of safety (ASN) following a control of the Italian company Società delle Fucine, which manufactures certain parts of the intended pressurisor with engine EPR of Flamanville, located in the English Channel. ( Finance Information City )
The control of the ASN “highlighted a variation in the conformity of the realization of mechanical tests making it possible to check the quality of the parts manufactured”, according to a note of information published by the ASN.
“This variation, which consisted in employing material nonin conformity for the realization of the tests, shows a deficiency of the quality system of the subcontractor”, continues the ASN, by inserting the nail…
The controlling authority recalls that “the regulation provides that the manufacturer, here Areva NP, are responsible for the conformity of the parts, including when it sub-contracted part of their realization”. “Overall, the ASN considers that Areva NP must ensure a more effective monitoring of its subcontractors”, the note underlines.
Concerning the building site of Flamanville, the Authority gives two months to Areva NP “to bring the demonstration of the quality of the parts of the pressurisor”, faults of what these parts “could not be accepted”.
A spokesperson of Areva declared Tuesday that the noted failures related to “a test which was not carried out in accordance with the requirements” of the group.
Which affirms “to have reinforced the monitoring of the system of quality of this supplier without awaiting” the opinion of the ASN, by carrying out “one audit of its quality system” and to have envisaged “complementary tests” to control the conformity of the parts in question.
The “failures” raised by the ASN “relate to a procedure of test and not the intrinsic quality of the component in question”, underlines Areva in addition.
This incident intervenes in an tense atmosphere within the building site of nuclear reactor EPR led by Areva in Finland, where many problems of safety and safety were pointed finger, in particular by associations of environmental protection. Three years of delay and a consequent increase in the budget of building site EPR are one of the consequences of these dysfunctions.
However, if one believes the state enterprise of it, the handing-over with the order of the ASN will not have a consequence on the calendar of construction of the EPR, “which will be respected for the part which falls on to him”.
However, the newspaper the Echoes reported in its edition of Monday that the group of BTP Bouygues, person in charge of the activities of civil engineering on the site, had indicated to the project superintendent EDF that the “concreting of the heavy floor of the building engine” would show a delay of “several months”.
Contacted by AFP, energy group EDF did not contradict information, but confirmed “the objective of starting of the EPR of Flamanville in 2012” without more precision.
The newspaper “the Echoes” also evokes a “delay of more than one year” in the digging of the well of evacuation which must serve at sea to evacuate warm water from the engine as third generation. This operation, entrusted to a subsidiary company of the group of BTP Vinci, would have undergone breakdowns of material and a speed of boring three times slower than envisaged.
At the end of August, Canard Enchaîne had already given a report on “at least nine months of delay” in the construction of the EPR of Flamanville.
For network To leave Nuclear power, which recalls in an official statement the delay of two years and half taken by the building site of the Finnish EPR, whose Areva is project superintendent, “the French cannot build nuclear reactors any more”.
“It is in oneself very a good news but, on the other hand, the financial consequences are announced serious for French public finances”, according to the antinuclear ones which ask for the stop of “the whole of program EPR”.
It is in any case the opinion given by the nuclear Authority of safety (ASN) following a control of the Italian company Società delle Fucine, which manufactures certain parts of the intended pressurisor with engine EPR of Flamanville, located in the English Channel. ( Finance Information City )
The control of the ASN “highlighted a variation in the conformity of the realization of mechanical tests making it possible to check the quality of the parts manufactured”, according to a note of information published by the ASN.
“This variation, which consisted in employing material nonin conformity for the realization of the tests, shows a deficiency of the quality system of the subcontractor”, continues the ASN, by inserting the nail…
The controlling authority recalls that “the regulation provides that the manufacturer, here Areva NP, are responsible for the conformity of the parts, including when it sub-contracted part of their realization”. “Overall, the ASN considers that Areva NP must ensure a more effective monitoring of its subcontractors”, the note underlines.
Concerning the building site of Flamanville, the Authority gives two months to Areva NP “to bring the demonstration of the quality of the parts of the pressurisor”, faults of what these parts “could not be accepted”.
A spokesperson of Areva declared Tuesday that the noted failures related to “a test which was not carried out in accordance with the requirements” of the group.
Which affirms “to have reinforced the monitoring of the system of quality of this supplier without awaiting” the opinion of the ASN, by carrying out “one audit of its quality system” and to have envisaged “complementary tests” to control the conformity of the parts in question.
The “failures” raised by the ASN “relate to a procedure of test and not the intrinsic quality of the component in question”, underlines Areva in addition.
This incident intervenes in an tense atmosphere within the building site of nuclear reactor EPR led by Areva in Finland, where many problems of safety and safety were pointed finger, in particular by associations of environmental protection. Three years of delay and a consequent increase in the budget of building site EPR are one of the consequences of these dysfunctions.
However, if one believes the state enterprise of it, the handing-over with the order of the ASN will not have a consequence on the calendar of construction of the EPR, “which will be respected for the part which falls on to him”.
However, the newspaper the Echoes reported in its edition of Monday that the group of BTP Bouygues, person in charge of the activities of civil engineering on the site, had indicated to the project superintendent EDF that the “concreting of the heavy floor of the building engine” would show a delay of “several months”.
Contacted by AFP, energy group EDF did not contradict information, but confirmed “the objective of starting of the EPR of Flamanville in 2012” without more precision.
The newspaper “the Echoes” also evokes a “delay of more than one year” in the digging of the well of evacuation which must serve at sea to evacuate warm water from the engine as third generation. This operation, entrusted to a subsidiary company of the group of BTP Vinci, would have undergone breakdowns of material and a speed of boring three times slower than envisaged.
At the end of August, Canard Enchaîne had already given a report on “at least nine months of delay” in the construction of the EPR of Flamanville.
For network To leave Nuclear power, which recalls in an official statement the delay of two years and half taken by the building site of the Finnish EPR, whose Areva is project superintendent, “the French cannot build nuclear reactors any more”.
“It is in oneself very a good news but, on the other hand, the financial consequences are announced serious for French public finances”, according to the antinuclear ones which ask for the stop of “the whole of program EPR”.
Stockholm Stock Exchange : Carnegie flies away
Stockholm Stock Exchange : The Carnegie title climbed Wednesday from 51,04% to 18,20 crowns with Stockholm Stock Exchange to 11:00 GMT.
No black magic, of headstock voodoo, nor of speculation in mass in all this…. but consequences of the rescue of the bank of investments by the Swedish central bank. ( Finance Information City )
Also let us recall that since the beginning of the year, the Carnegie action yielded 90%.
The Swedish Central bank (Riksbank) had announced Tuesday that it was going to extend its credit line granted to Carnegie to carry it to a maximum of 5 billion Swedish crowns (500 million euros), the company being confronted with a consecutive lack of liquidities to the international crisis. ( "Stockholm Stock Exchange" )
“The extension of appropriations is a signal with our creditors. The credit line of 5 billion (of crowns) gives us more flexibility and stability”, explained to TT Andreas Koch, person in charge of the relations with the investors at Carnegie. ( "Stockholm Stock Exchange" )
Mr. Koch specified that Friday a creditor had wished to emit more restrictive conditions, which pushed Carnegie to be turned to the central bank.
The Swedish Minister for Finances, Anders Borg, from Helsinki where it takes part in a meeting of the Scandinavian Council, estimated on his side which it was “good that Riksbank as well as the National office of the debts act to guarantee financial stability”. ( "Stockholm Stock Exchange" )
No black magic, of headstock voodoo, nor of speculation in mass in all this…. but consequences of the rescue of the bank of investments by the Swedish central bank. ( Finance Information City )
Also let us recall that since the beginning of the year, the Carnegie action yielded 90%.
The Swedish Central bank (Riksbank) had announced Tuesday that it was going to extend its credit line granted to Carnegie to carry it to a maximum of 5 billion Swedish crowns (500 million euros), the company being confronted with a consecutive lack of liquidities to the international crisis. ( "Stockholm Stock Exchange" )
Stockholm Stock Exchange
Riksbank had specified that Carnegie, whose activities include operations of broking, of stock exchange analysis and of investment was solvent.
“We attend an acute shortage of liquidities. We have with the Swedish Supervisory authority financial passed in re-examined the credits and the passive ones of the company and we think that the company has more credits than the passive ones”, specified Mattias Persson, person in charge of division “financial stability” of Riksbank,
“The extension of appropriations is a signal with our creditors. The credit line of 5 billion (of crowns) gives us more flexibility and stability”, explained to TT Andreas Koch, person in charge of the relations with the investors at Carnegie. ( "Stockholm Stock Exchange" )
Mr. Koch specified that Friday a creditor had wished to emit more restrictive conditions, which pushed Carnegie to be turned to the central bank.
The Swedish Minister for Finances, Anders Borg, from Helsinki where it takes part in a meeting of the Scandinavian Council, estimated on his side which it was “good that Riksbank as well as the National office of the debts act to guarantee financial stability”. ( "Stockholm Stock Exchange" )
The confidence of the US consumer crumbles, low historical
The confidence of the American consumers crumbled in October on its low historical level because of the aggravation of the financial crisis and its propagation to the economy, according to the monthly survey of the Board Conference.
The confidence index fell to 38,0 compared with 61,4 in September, this last figure having been revised in light rise. The economists and analysts questioned by Reuters anticipated on average a figure of 52,0 and lowest of their estimates was of 45,0.
The lower precedent of this barometer of moral of the households, to 43,2, went back to December 1974.
“The impact of the financial crisis during the last weeks, weighed obviously on the confidence of the consumers”, declares in the study Lynn Franco, director of the research centre on the consumption of the Board Conference.
She adds that the judgement of the consumers on the market evolution of work and inflation worsened, and that “that is not good omen for the distributors, which prepare already with what is announced like one season of the festivals of very difficult end of the year”.
The component of the judgement of the consumers on their current location returned from 61,1 to 41,9, with low since December 1992. It was to 118,0 one year ago.
That of anticipations plunged to 35,5 compared with 61,5 in September and 80,0 in October 2007.
The average anticipation of inflation of the consumers in parallel passed to 6,9% - its more high level since July - against 6,2% last month.( Finance Information City )
The confidence index fell to 38,0 compared with 61,4 in September, this last figure having been revised in light rise. The economists and analysts questioned by Reuters anticipated on average a figure of 52,0 and lowest of their estimates was of 45,0.
The lower precedent of this barometer of moral of the households, to 43,2, went back to December 1974.
“The impact of the financial crisis during the last weeks, weighed obviously on the confidence of the consumers”, declares in the study Lynn Franco, director of the research centre on the consumption of the Board Conference.
She adds that the judgement of the consumers on the market evolution of work and inflation worsened, and that “that is not good omen for the distributors, which prepare already with what is announced like one season of the festivals of very difficult end of the year”.
The component of the judgement of the consumers on their current location returned from 61,1 to 41,9, with low since December 1992. It was to 118,0 one year ago.
That of anticipations plunged to 35,5 compared with 61,5 in September and 80,0 in October 2007.
The average anticipation of inflation of the consumers in parallel passed to 6,9% - its more high level since July - against 6,2% last month.( Finance Information City )
The USA: depresses seizes the consumers, who fear for their employment
Depresses seized the American consumers, who worry for their employment and their purchasing power, and whose moral one has fallen in October to low for more than twenty years.
The confidence of the American consumers crumbled in October at 38,0 points, after 61,4 points in September, a level ever seen since creation into 1985 of this index, announced Tuesday the Conference Board, the private economic service which compiles it. ( Finance Information City )
Exactly a year ago, shortly after the beginning of the crisis on the market of the mortgage credits, the index was at 80 points.
“There is no doubt, these figures are extraordinarily bad”, commented on Ian Shepherdson, economist of High Frequency Economics.
“The impact of the financial crisis over the last weeks had clearly a devastator effect on confidence of the consumers. The fall of the index (- 23,4 points) is the stronger third in its history”, raised the Board Conference.
The figures of September had surprised by their strength, with a third consecutive month of improvement (59,8 points, against 58,5 in August). The analysts had not expected that one light fold for October, at 52 points.
But the households ended up being gained by the ambient moroseness: at the time when they were questioned, during the third week of October, the market indexes came to know historical dives. The banks had to cease lending, with an immediate impact on consumption in a country where, for example, more than 90% of the cars are sold with credit.
“The consumers are extremely pessimistic, and a proportion significantly larger than last month envisages conditions which will worsen for the companies and employment”, the institute commented on.
For the six months to come, 41,5% of the consumers envisage a fall of the number of job offers whereas they were only 26,9% with being also pessimistic in September. The consumers also predict, with 36,6% (against 21% in September), a deterioration of the situation of the companies and a fall of their incomes for 19,7% of them (13,9% in September).
If waitings of the American consumers for the six months to come were to remain as weak as in October (35,5), “that could result in a fall of the consumption from approximately 3,5% into annual rhythm, worse than than we planned (- 3%) for the third quarters”, according to Mr. Shepherdson.
John Ryding, about RDQEconomics, worries about the indications coming from the job market, with an increase in the number of people saying to have evil to find an employment (37,2% against 32,2%), the “worse level since 1993”.
“The labour market clearly worsened in October, because of the credit restriction on the companies and consumers, according to him.
According to Mr. Ryding, the United States should enter soon officially in recession and the figures for employment awaited the next week should reveal “a loss of approximately 200.000 employment” in October and “a new rise of unemployment rate” (6,1% at the end of September).
The Joel Naroff economist stressed that, taking into account the approach of the season of the purchases of Christmas, the households will keep the tight cords of the purse. “It is thus probable that one witnesses a negative growth step only with the third but also at the fourth quarters and perhaps with the first of 2009”.
A little with counter-current, Stephen Gallagher of General society estimated that the consumers will profit from an improvement purchasing power to them, thanks to the fall of the energy prices and other goods. That should support consumption “with the fourth quarters and at the beginning of 2009”, according to him.
The confidence of the American consumers crumbled in October at 38,0 points, after 61,4 points in September, a level ever seen since creation into 1985 of this index, announced Tuesday the Conference Board, the private economic service which compiles it. ( Finance Information City )
Exactly a year ago, shortly after the beginning of the crisis on the market of the mortgage credits, the index was at 80 points.
“There is no doubt, these figures are extraordinarily bad”, commented on Ian Shepherdson, economist of High Frequency Economics.
“The impact of the financial crisis over the last weeks had clearly a devastator effect on confidence of the consumers. The fall of the index (- 23,4 points) is the stronger third in its history”, raised the Board Conference.
The figures of September had surprised by their strength, with a third consecutive month of improvement (59,8 points, against 58,5 in August). The analysts had not expected that one light fold for October, at 52 points.
But the households ended up being gained by the ambient moroseness: at the time when they were questioned, during the third week of October, the market indexes came to know historical dives. The banks had to cease lending, with an immediate impact on consumption in a country where, for example, more than 90% of the cars are sold with credit.
“The consumers are extremely pessimistic, and a proportion significantly larger than last month envisages conditions which will worsen for the companies and employment”, the institute commented on.
For the six months to come, 41,5% of the consumers envisage a fall of the number of job offers whereas they were only 26,9% with being also pessimistic in September. The consumers also predict, with 36,6% (against 21% in September), a deterioration of the situation of the companies and a fall of their incomes for 19,7% of them (13,9% in September).
If waitings of the American consumers for the six months to come were to remain as weak as in October (35,5), “that could result in a fall of the consumption from approximately 3,5% into annual rhythm, worse than than we planned (- 3%) for the third quarters”, according to Mr. Shepherdson.
John Ryding, about RDQEconomics, worries about the indications coming from the job market, with an increase in the number of people saying to have evil to find an employment (37,2% against 32,2%), the “worse level since 1993”.
“The labour market clearly worsened in October, because of the credit restriction on the companies and consumers, according to him.
According to Mr. Ryding, the United States should enter soon officially in recession and the figures for employment awaited the next week should reveal “a loss of approximately 200.000 employment” in October and “a new rise of unemployment rate” (6,1% at the end of September).
The Joel Naroff economist stressed that, taking into account the approach of the season of the purchases of Christmas, the households will keep the tight cords of the purse. “It is thus probable that one witnesses a negative growth step only with the third but also at the fourth quarters and perhaps with the first of 2009”.
A little with counter-current, Stephen Gallagher of General society estimated that the consumers will profit from an improvement purchasing power to them, thanks to the fall of the energy prices and other goods. That should support consumption “with the fourth quarters and at the beginning of 2009”, according to him.
China for a greater financial regulation, wants to conform to the food standards
Chinese the Prime Minister Wen Jiabao called Saturday with a greater regulation of the world financial system, at the conclusion of a top Asia-Europe (Asem) in Beijing dominated by the international financial crisis.
In addition, in a “solemn declaration”, he promised that China was going in the future to conform to the international standards as regards food safety. ( Finance Information City )
“We must correctly manage the relations between the financial innovation and the regulation. We need financial innovation for better serving the economy, but need still more a greater financial regulation to ensure financial stability”, declared Mr. Wen at the time of a press conference at the conclusion of the bi-annual top which joined together Friday and Saturday more than one forty Asian and European leaders.
“The virtual economy must be coordinated with the real economy, it is not necessary that the problems of the virtual economy influence the development of the real economy”, he judged, adding that measurements taken to face the current crisis were not “sufficient”.
Mr. Wen confirmed that its country would take an “active” share at the top which must join together on November 15 in Washington the great powers industrialized and emergent of G20 on the financial crisis.
“We will discuss with the leaders the world measurements to face the financial crisis in a pragmatic and common way”, has it says, affirming that it was necessary to show “confidence, co-operation and responsibility”.
The Prime Minister stressed that if the financial crisis did not have an significant impact on the Chinese financial system because of its still limited opening, it would have surely effects on the Chinese economy.
“If the direct influence is not very large, it has an influence on the worldwide economies and the deceleration of the growth, consequently it will inevitably have an influence on the Chinese economy”, has he says.
Friday evening, in a declaration, the 43 countries of Asia and Europe (Asem) required a deep reform of the systems monetary and financial and an increased role of the Funds international currency.
“The leaders commit themselves undertaking a real and basic reform international systems monetarist and financier”, according to the text.
In addition, concerning the scandal of adulterated milk, Wen Jiabao affirmed: “We were very pained”.
“We will act and to use the quality of our food products to gain the confidence of the Chinese and the rest of the world”, declared Mr. Wen with the journalists at the conclusion of the top.
He promised that Chinese exports “were going to respect the standards of the importing countries”.
Four let us nourissons died in China after having consumed milk adulterated with melamine and tens of thousands of others were contaminated. Many Chinese products were recalled abroad in front of fears of contamination.
In addition, in a “solemn declaration”, he promised that China was going in the future to conform to the international standards as regards food safety. ( Finance Information City )
“We must correctly manage the relations between the financial innovation and the regulation. We need financial innovation for better serving the economy, but need still more a greater financial regulation to ensure financial stability”, declared Mr. Wen at the time of a press conference at the conclusion of the bi-annual top which joined together Friday and Saturday more than one forty Asian and European leaders.
“The virtual economy must be coordinated with the real economy, it is not necessary that the problems of the virtual economy influence the development of the real economy”, he judged, adding that measurements taken to face the current crisis were not “sufficient”.
Mr. Wen confirmed that its country would take an “active” share at the top which must join together on November 15 in Washington the great powers industrialized and emergent of G20 on the financial crisis.
“We will discuss with the leaders the world measurements to face the financial crisis in a pragmatic and common way”, has it says, affirming that it was necessary to show “confidence, co-operation and responsibility”.
The Prime Minister stressed that if the financial crisis did not have an significant impact on the Chinese financial system because of its still limited opening, it would have surely effects on the Chinese economy.
“If the direct influence is not very large, it has an influence on the worldwide economies and the deceleration of the growth, consequently it will inevitably have an influence on the Chinese economy”, has he says.
Friday evening, in a declaration, the 43 countries of Asia and Europe (Asem) required a deep reform of the systems monetary and financial and an increased role of the Funds international currency.
“The leaders commit themselves undertaking a real and basic reform international systems monetarist and financier”, according to the text.
In addition, concerning the scandal of adulterated milk, Wen Jiabao affirmed: “We were very pained”.
“We will act and to use the quality of our food products to gain the confidence of the Chinese and the rest of the world”, declared Mr. Wen with the journalists at the conclusion of the top.
He promised that Chinese exports “were going to respect the standards of the importing countries”.
Four let us nourissons died in China after having consumed milk adulterated with melamine and tens of thousands of others were contaminated. Many Chinese products were recalled abroad in front of fears of contamination.
The courses of oil set out again with the rise
The courses of oil were turned over to the rise Tuesday morning, in the wake of the progression of the Asian markets actions.
Towards 5:30 GMT, the contract December on the American light crude gained 78 hundreds, that is to say 1,23%, with 64,00 dollars the barrel and Brent took 44 hundreds (0,72%) to 61,85 dollars. ( Finance Information City )
The courses of the crude had moved back before in the wake of the fall of these same Asian markets, on fears of a recession which would start the world oil demand.
But the Stock Exchanges in Asia then reconsidered in the green, following the example that of Tokyo, which finished in rise of 6,41%, purchases cheaply and whereas the yen weakens.
The contracts on the crude had enclosed in clear fall Monday - of more than 3% and with low since May 2007 - a meeting in teeth of saw which copied that of Wall Street but where fears of recession, and their foreseeable impact on the oil request, finally dominated.
And this although OPEC decided Friday to reduce its production of 1,5 million barrels per day. For many speakers, this reduction in urgency by the trust Friday in Vienna will not be enough to stop the fall of the courses.
The gesture of OPEC intended to reduce the offer to try to support the prices has in fact answered the multiplication of signs of reduction in the request, inter alia in the United States, first consumer world of oil products.
The barrel posts from now on a dive of almost 60% compared to its records to there are three months and half with more than 147 dollars.
Towards 5:30 GMT, the contract December on the American light crude gained 78 hundreds, that is to say 1,23%, with 64,00 dollars the barrel and Brent took 44 hundreds (0,72%) to 61,85 dollars. ( Finance Information City )
But the Stock Exchanges in Asia then reconsidered in the green, following the example that of Tokyo, which finished in rise of 6,41%, purchases cheaply and whereas the yen weakens.
The contracts on the crude had enclosed in clear fall Monday - of more than 3% and with low since May 2007 - a meeting in teeth of saw which copied that of Wall Street but where fears of recession, and their foreseeable impact on the oil request, finally dominated.
And this although OPEC decided Friday to reduce its production of 1,5 million barrels per day. For many speakers, this reduction in urgency by the trust Friday in Vienna will not be enough to stop the fall of the courses.
The gesture of OPEC intended to reduce the offer to try to support the prices has in fact answered the multiplication of signs of reduction in the request, inter alia in the United States, first consumer world of oil products.
The barrel posts from now on a dive of almost 60% compared to its records to there are three months and half with more than 147 dollars.
Crude in strong fall in Asia because of fears on the request
The courses of the crude were in noticeable decrease Tuesday in the electronic exchanges in Asia vis-a-vis fears of recession and decrease in the demand, according to brokers.
In the morning exchanges, the price of the barrel of “light sweet crude” for delivery in December fell from 89 hundreds to 62,33 USD the barrel. ( Finance Information City )
The Brent barrel of petrol for delivery in December yielded 1,28 dollar to 60,13 dollars.
Monday, the oil prices still moved back, with new floors reached in New York, but also in London where the prices briefly passed under the 60 dollars, the market always worrying about the consequences of a possible world recession.
On New York Mercantile Exchange (Nymex), the barrel of “light sweet crude” for delivery in December finished with 63,22 dollars, in fall of 93 hundreds compared to the end of Friday.
Its course fell to 61,30 dollars, its low level since May 2007.
The prices even fell under the psychological bar from the 60 dollars to London for the first time since March 16, 2007, to 59,02 dollars.
In the morning exchanges, the price of the barrel of “light sweet crude” for delivery in December fell from 89 hundreds to 62,33 USD the barrel. ( Finance Information City )
The Brent barrel of petrol for delivery in December yielded 1,28 dollar to 60,13 dollars.
Monday, the oil prices still moved back, with new floors reached in New York, but also in London where the prices briefly passed under the 60 dollars, the market always worrying about the consequences of a possible world recession.
On New York Mercantile Exchange (Nymex), the barrel of “light sweet crude” for delivery in December finished with 63,22 dollars, in fall of 93 hundreds compared to the end of Friday.
Its course fell to 61,30 dollars, its low level since May 2007.
The prices even fell under the psychological bar from the 60 dollars to London for the first time since March 16, 2007, to 59,02 dollars.
BP makes better than envisaged in the 3rd quarter
BP gives a report on a benefit adjusted in rise of 148% on the third quarters, doped at the same time by the rise of the courses of the crude compared to the same period of the previous year and by an exceptional appreciation.
The adjusted bottom line of the replacement costs is thus arisen to 10,029 billion dollars, including 1,147 billion exceptional benefit. Out this last, the recurring adjusted benefit is of 8,882 billion dollars over the period, against an average forecast of 6,90 billion. ( Finance Information City )
The production of hydrocarbons of BP progressed over the period whereas the analysts awaited a fold rather. A spokesperson of the group specified that this evolution was in particular the fact of the good performances of its platform Thunder Horse, in the Gulf of Mexico.
The fourth oil company in terms of market cap also said that its quarterly dividend would be of 14 hundreds per action, against 10,825 hundreds one year ago.
Whereas the oil courses fell from some 60% since their record of more than 147 dollars the barrel reached in July, BP estimates that they could fall even lower into a context from recession from the worldwide economy.
The group also said that current turbulences on the market created “opportunities” which it would examine very attentively.
According to traders, the BP action should increase by 5% as of the London Stock Exchange opening.
The adjusted bottom line of the replacement costs is thus arisen to 10,029 billion dollars, including 1,147 billion exceptional benefit. Out this last, the recurring adjusted benefit is of 8,882 billion dollars over the period, against an average forecast of 6,90 billion. ( Finance Information City )
The fourth oil company in terms of market cap also said that its quarterly dividend would be of 14 hundreds per action, against 10,825 hundreds one year ago.
Whereas the oil courses fell from some 60% since their record of more than 147 dollars the barrel reached in July, BP estimates that they could fall even lower into a context from recession from the worldwide economy.
The group also said that current turbulences on the market created “opportunities” which it would examine very attentively.
According to traders, the BP action should increase by 5% as of the London Stock Exchange opening.
Wall Street finishes in strong fall after a very fluctuating meeting
New York Stock Exchange finished in strong fall Monday, encasing the step in the principal world money markets after having evolved/moved in yo-yo throughout the meeting: Dow Jones lost 2,42% and Nasdaq 2,97%.
According to the definite figures of fence, Dow Jones Industrial Average (DJIA) released 203,18 points, at 8.175,77 points, and Nasdaq, with dominant technological, 46,13 points, at 1.505,90 points. ( Finance Information City )
The Standard widened index & Poor' S 500 yielded as for him 3,18% (27,85 points), at 848,92 points.
After being fallen Friday with low since April 2003, Dow Jones, in strong fall with the opening, did not cease oscillating between the red and the green during the meeting. It plunged in the very last minutes of meeting.
“One did not cease changing direction”, observed Lindsey Piegza, of FTN Financial. “The investors do not react to results of companies, nor with economic statistics, but to the news which comes to us from abroad and the central banks”, she added.
The principal Asian and European money markets underwent a new tumble Monday, Tokyo Stock Exchange falling of more than 6% with the fence, on its low level in 26 years.
The American central bank meets as from Tuesday and must return its verdict of monetary policy Wednesday. Many analysts forecast a new fall of its directing rate, to try to stop the descent into Hell of the markets.
On his side, the president of the European Central bank Jean-Claude Trichet considered to be “possible” a new fall of the rates directing in euro area.
The American Treasury announced that 125 billion dollars intended for recapitaliser the nine plus large banks of the United States must be freed this week.
“The market remains very volatile, that reflects uncertainties which remain numerous: on a side the investors worry about a world recession, other, they go count that many actions are underestimated”, explained Hugh Johnson, of Johnson Illington Advisors.
The Standard widened index & Poor' S 500 yielded as for him 3,18% (27,85 points), at 848,92 points.
After being fallen Friday with low since April 2003, Dow Jones, in strong fall with the opening, did not cease oscillating between the red and the green during the meeting. It plunged in the very last minutes of meeting.
“One did not cease changing direction”, observed Lindsey Piegza, of FTN Financial. “The investors do not react to results of companies, nor with economic statistics, but to the news which comes to us from abroad and the central banks”, she added.
The principal Asian and European money markets underwent a new tumble Monday, Tokyo Stock Exchange falling of more than 6% with the fence, on its low level in 26 years.
The American central bank meets as from Tuesday and must return its verdict of monetary policy Wednesday. Many analysts forecast a new fall of its directing rate, to try to stop the descent into Hell of the markets.
On his side, the president of the European Central bank Jean-Claude Trichet considered to be “possible” a new fall of the rates directing in euro area.
The American Treasury announced that 125 billion dollars intended for recapitaliser the nine plus large banks of the United States must be freed this week.
“The market remains very volatile, that reflects uncertainties which remain numerous: on a side the investors worry about a world recession, other, they go count that many actions are underestimated”, explained Hugh Johnson, of Johnson Illington Advisors.
The Bourse de Paris reverses the tendency and is folded up
The Bourse de Paris reversed the tendency and folded up Tuesday in the morning, the CAC 40 releasing 1,03% whereas it had opened in Net rebound, in a market always agitated by fears of a world recession.
With 09:52 (08H52 GMT), the index high-speed motorboat lost 31,52 points at 3.035,83 points, after having climbed of more than 3% in the first exchanges, in the wake of the Asian places. ( Finance Information City )
The worsening of economic conditions however always leads the markets. The Ifo barometer measuring the climate of the businesses in Germany fell in October, and the moral one of the French households, which had been begun again in September, set out again with the fall in October, according to indicator INSEE published Tuesday morning.
The Parisian place was particularly drawn downwards by the financial values, BNP Paribas releasing 6,78% to 51,27 euros and Axa 4,21% to 12,50 euros, while Dexia fell from 5,06% to 3,73 euros after having announced a loss of approximately 82 million euros following the operations of commercial bank of its Slovak subsidiary company DBS.
The worsening of economic conditions however always leads the markets. The Ifo barometer measuring the climate of the businesses in Germany fell in October, and the moral one of the French households, which had been begun again in September, set out again with the fall in October, according to indicator INSEE published Tuesday morning.
The Parisian place was particularly drawn downwards by the financial values, BNP Paribas releasing 6,78% to 51,27 euros and Axa 4,21% to 12,50 euros, while Dexia fell from 5,06% to 3,73 euros after having announced a loss of approximately 82 million euros following the operations of commercial bank of its Slovak subsidiary company DBS.
General society wants to be reassuring after the fall of its course
The General society confirms its forecasts of results for the 3rd quarter and specifies not to have anything in particular to announce on his activities of market, the shortly after a fall of more than 15% of its stock exchange courts.
The title of SocGen showed Monday the strongest fall of the CAC 40 (- 15,56% to 38 euros), carried as of other financial by the storm of the Asian markets where Tokyo Stock Exchange had enclosed on its low level for 26 years. ( Finance Information City )
Towards 9:35, the title General society, which lost 58% since the beginning of the year, regained 1,25% to 38,47 euros, for a market cap of some 22,5 billion.
“The contents of emitted press release on October 13, 2008 are always topicality”, declared Stephanie Carson-Parker, spokesperson of the banking group, in answer to a question of Reuters.
Last on October 13, the group had already tried to cross short to the rumours on its financial health while stating to expect a clear benefit of approximately a billion euros before nonrecurring elements for the third quarters.
The bank had also specified that its bottom line leaves the group would be positive, even after the taking into account of the depreciations related to its exposure to Lehman Brothers, the American bank of investment in voluntary liquidation.
General society, which will publish its final accounts of the 3rd quarter on November 6, had also stated on October 13 that its ratio Tier 1 at September 30 in standards Basle II would be higher than 8%.
SocGen is one of the six profit banks of the governmental play which lays down to inject 10,5 billion euros in their capital in order to reinforce their equities and to enable them to finance the economy. The General society should within this framework receive 1,7 billion euros. The government specified that thanks to this injection of capital, the ratio of the French banks taking part in the operation should be raised of approximately 50 basic points, which would make it possible to bring back that of SocGen in particular in the European average of 8,5%.
SHORT-NAP CLOTH ON THE DERIVATIVES ACTIONS
The spokesperson of the bank also stated Tuesday that it did not have “anything in particular to announce on his activities of markets, and in particular the derivatives actions, in spite of conditions of very difficult markets in October”.
“It is the same for the other activities of the bank, in particular the activities of bank of detail out of France”, it specified, adding that “in the event of occurence of events justifying fast information of the financial markets, the bank will make public, as soon as possible, the elements necessary to a good appreciation of its situation”.
This development intervenes whereas the Franco-Belgian group Dexia announced the same day that its Slovak subsidiary company had been affected by a “excessive exposure in currencies” of its customers which will show an negative impact of 82 million euros on the accounts of the third quarters.
The title of SocGen showed Monday the strongest fall of the CAC 40 (- 15,56% to 38 euros), carried as of other financial by the storm of the Asian markets where Tokyo Stock Exchange had enclosed on its low level for 26 years. ( Finance Information City )
“The contents of emitted press release on October 13, 2008 are always topicality”, declared Stephanie Carson-Parker, spokesperson of the banking group, in answer to a question of Reuters.
Last on October 13, the group had already tried to cross short to the rumours on its financial health while stating to expect a clear benefit of approximately a billion euros before nonrecurring elements for the third quarters.
The bank had also specified that its bottom line leaves the group would be positive, even after the taking into account of the depreciations related to its exposure to Lehman Brothers, the American bank of investment in voluntary liquidation.
General society, which will publish its final accounts of the 3rd quarter on November 6, had also stated on October 13 that its ratio Tier 1 at September 30 in standards Basle II would be higher than 8%.
SocGen is one of the six profit banks of the governmental play which lays down to inject 10,5 billion euros in their capital in order to reinforce their equities and to enable them to finance the economy. The General society should within this framework receive 1,7 billion euros. The government specified that thanks to this injection of capital, the ratio of the French banks taking part in the operation should be raised of approximately 50 basic points, which would make it possible to bring back that of SocGen in particular in the European average of 8,5%.
SHORT-NAP CLOTH ON THE DERIVATIVES ACTIONS
The spokesperson of the bank also stated Tuesday that it did not have “anything in particular to announce on his activities of markets, and in particular the derivatives actions, in spite of conditions of very difficult markets in October”.
“It is the same for the other activities of the bank, in particular the activities of bank of detail out of France”, it specified, adding that “in the event of occurence of events justifying fast information of the financial markets, the bank will make public, as soon as possible, the elements necessary to a good appreciation of its situation”.
This development intervenes whereas the Franco-Belgian group Dexia announced the same day that its Slovak subsidiary company had been affected by a “excessive exposure in currencies” of its customers which will show an negative impact of 82 million euros on the accounts of the third quarters.
Profit-sharing: Xavier Bertrand overrides Dassault
The senators maintained Monday the tax exemption on the sums paid with the title of the profit-sharing envisaged by the bill on the labour incomes.
Previously, the Xavier Bertrand, Minister for Labour had opposed an end not to receive at the committee of supply and his rapporteur UMP Serge Dassault, which had removed the leading talent of the bill on the Labour incomes whose Senate started the examination Monday in public. ( Finance Information City )
By 195 votes against 145, the senators remained faithful to the text of the government, which aims at doubling in four years the sums distributed to the title of the profit-sharing in France. With this intention, the article 1st of the bill lays down a tax credit of 20% on the premiums of profit-sharing paid to paid and the exemption of an exceptional premium of profit-sharing.
The committee of supply, concerned not to dig a deficit already considered to be excessive, had proposed an amendment aiming at removing this measurement against the opinion of the government, represented by the Minister for Labour Xavier Bertrand. This proposal divided the rows of the majority.
In committee the senators had indeed removed the possibility of creating a tax credit of 20% with the profit of the companies concluding an agreement from profit-sharing. The commission, chaired by the centrist Jean Arthuis, had voted this suppression unanimously estimating that “this device of tax incentive represents a loss of receipts for the State evaluated between 800 million euros and 1,2 billion euros”.
“Considering that the budget deficit for 2009 was going to exceed the 52,1 billion euros already envisaged, and that the national debt would cross the 65% of the GDP thus”, the commission judged “which a new tax expenditure of almost 1 billion euros could only worsen the state of public finances”.
The commission moreover had observed “that the current devices of profit-sharing and participation are already given tax exemptions and social”.
She thus intended “to reaffirm the need for examining with greatest vigilance any new measurement which would come to worsen the national debt”.
“I of course have the proposal formulated by the committee of supply and by you even, Mister the rapporteur” declared Mr. Bertrand by presenting the text in front of the senators. But, “without tax credit we will not make profit more from paid from the profit-sharing, without tax credit we will not double the profit-sharing as we wish it”, launched the minister.
“Today we found a point of balance with the various actors, with the various members of Parliament also, I include/understand feel and the range of this proposal Mr. Dassault” but “it is not possible to retain it”, it insisted.
Mr. Dassault made adopt a second amendment by the committee of supply which envisages to modify the formula of computation of the sums intended for the participation. He proposes a “rule of the three thirds” for this calculation: a third of the benefit versed with would be paid in the form of participation, a third with the shareholders and a third for the investments.
Mr. Bertrand in addition confirmed that the government had deposited an amendment with this project, in order to allow that “all the employees” profit from stock-options or bonus shares when there is in the company.
Previously, the Xavier Bertrand, Minister for Labour had opposed an end not to receive at the committee of supply and his rapporteur UMP Serge Dassault, which had removed the leading talent of the bill on the Labour incomes whose Senate started the examination Monday in public. ( Finance Information City )
The committee of supply, concerned not to dig a deficit already considered to be excessive, had proposed an amendment aiming at removing this measurement against the opinion of the government, represented by the Minister for Labour Xavier Bertrand. This proposal divided the rows of the majority.
In committee the senators had indeed removed the possibility of creating a tax credit of 20% with the profit of the companies concluding an agreement from profit-sharing. The commission, chaired by the centrist Jean Arthuis, had voted this suppression unanimously estimating that “this device of tax incentive represents a loss of receipts for the State evaluated between 800 million euros and 1,2 billion euros”.
“Considering that the budget deficit for 2009 was going to exceed the 52,1 billion euros already envisaged, and that the national debt would cross the 65% of the GDP thus”, the commission judged “which a new tax expenditure of almost 1 billion euros could only worsen the state of public finances”.
The commission moreover had observed “that the current devices of profit-sharing and participation are already given tax exemptions and social”.
She thus intended “to reaffirm the need for examining with greatest vigilance any new measurement which would come to worsen the national debt”.
“I of course have the proposal formulated by the committee of supply and by you even, Mister the rapporteur” declared Mr. Bertrand by presenting the text in front of the senators. But, “without tax credit we will not make profit more from paid from the profit-sharing, without tax credit we will not double the profit-sharing as we wish it”, launched the minister.
“Today we found a point of balance with the various actors, with the various members of Parliament also, I include/understand feel and the range of this proposal Mr. Dassault” but “it is not possible to retain it”, it insisted.
Mr. Dassault made adopt a second amendment by the committee of supply which envisages to modify the formula of computation of the sums intended for the participation. He proposes a “rule of the three thirds” for this calculation: a third of the benefit versed with would be paid in the form of participation, a third with the shareholders and a third for the investments.
Mr. Bertrand in addition confirmed that the government had deposited an amendment with this project, in order to allow that “all the employees” profit from stock-options or bonus shares when there is in the company.
Volskwagen: the action pulverizes the records
Volskwagen : New episode of the saga of the Volskwagen title. Whereas the action had strongly evolved/moved with the rise these days last, leading us even to speak about Volskwagen bubble, the title more than doubled its stock exchange courts Monday.
The action even treated to the “luxury” to roll to misconception compared to the other values dimensioned on the European money markets.
Reasons with all this: made advertisement Sunday by Porsche of a takeover of more than 75% of the manufacturer… and the combined action of the funds of investments.( Volskwagen )
The title VW literally flew away from 146,6% to 520 euros, making it possible even Frankfurt Stock Exchange to finish in rise of 0,91% whereas other European places finished in the red, always leaded by fears of recession. The weighting of Volskwagen - one of the more industrial large companies German within the Dax index is indeed very strong.
To 16:15 GMT (17h15, French hour) the title had even increased by 201,16% to 634,99 euros.
The brokers explained this progression vertigineuset by a movement of “panic to the purchase”, on behalf of funds of investments in particular, which must be covered in Volkswagen actions after having speculated in the title. ( Volskwagen )
Consequence of such a phenomenon: whereas the sector automibile must face serious difficulties taking into account falls severe of consumption, the index of the European automobile values leaped of almost 50%, thanks to Volskwagen. The whole of the other manufacturers who compose the index finished in fall, sometimes very clear, vis-a-vis the degradation of the prospects for activity of the sector.
Porsche always intends to exceed the 50% of direct participation in VW by the end of this year. Let us recall that in the German legislation, an agreement of control requires the control from at least 75% of the votes of the shareholders present at the general meeting of a company.
According to the analysts, this advertisement still will intensify the movement of repurchase of discovered which has animated the Volkswagen title for a few weeks. ( Volskwagen )
Porsche reduces indeed thus considerably floating it of Volskwagen, i.e. the share of his freely negotiable capital out of Stock Exchange, to some 6%, the Regional state of Lower Saxony holding a share from approximately 20% of the group.
Many funds of investments had predicted an imminent fall of the title Volskwagen, “one of the most overestimated world”, according to the influential financial magazine American Barron of the edition of last Monday.
These funds had borrowed then sold actions Volskwagen the latter weeks in the intention to repurchase them later after the bursting awaited of the bubble, on the principle of the “short sale”.
Another striking fact: in order to get enough liquidities to acquire Volskwagen actions out of price, the investors were constrained to get rid of other titles of their wallet. ( Volskwagen )
The action even treated to the “luxury” to roll to misconception compared to the other values dimensioned on the European money markets.
Reasons with all this: made advertisement Sunday by Porsche of a takeover of more than 75% of the manufacturer… and the combined action of the funds of investments.( Volskwagen )
The title VW literally flew away from 146,6% to 520 euros, making it possible even Frankfurt Stock Exchange to finish in rise of 0,91% whereas other European places finished in the red, always leaded by fears of recession. The weighting of Volskwagen - one of the more industrial large companies German within the Dax index is indeed very strong. To 16:15 GMT (17h15, French hour) the title had even increased by 201,16% to 634,99 euros.
The brokers explained this progression vertigineuset by a movement of “panic to the purchase”, on behalf of funds of investments in particular, which must be covered in Volkswagen actions after having speculated in the title. ( Volskwagen )
Consequence of such a phenomenon: whereas the sector automibile must face serious difficulties taking into account falls severe of consumption, the index of the European automobile values leaped of almost 50%, thanks to Volskwagen. The whole of the other manufacturers who compose the index finished in fall, sometimes very clear, vis-a-vis the degradation of the prospects for activity of the sector.
Porsche always intends to exceed the 50% of direct participation in VW by the end of this year. Let us recall that in the German legislation, an agreement of control requires the control from at least 75% of the votes of the shareholders present at the general meeting of a company.
According to the analysts, this advertisement still will intensify the movement of repurchase of discovered which has animated the Volkswagen title for a few weeks. ( Volskwagen )
Porsche reduces indeed thus considerably floating it of Volskwagen, i.e. the share of his freely negotiable capital out of Stock Exchange, to some 6%, the Regional state of Lower Saxony holding a share from approximately 20% of the group.
Many funds of investments had predicted an imminent fall of the title Volskwagen, “one of the most overestimated world”, according to the influential financial magazine American Barron of the edition of last Monday.
These funds had borrowed then sold actions Volskwagen the latter weeks in the intention to repurchase them later after the bursting awaited of the bubble, on the principle of the “short sale”.
Another striking fact: in order to get enough liquidities to acquire Volskwagen actions out of price, the investors were constrained to get rid of other titles of their wallet. ( Volskwagen )
China: a worrying dependence vis-a-vis coal
The energy dependence of China to coal would represent a cost hidden for Beijing of more than 7% of the rough national product. It is in any case the conclusion of a study published Monday, drawn up by ecologists groups.
For recall, the country depends with nearly 70% to the coal for its electricity. The Chinese growth thus rests above all on the majority and increasing use of coal, first energy resource of the country, but source of massive carbonic gas emissions in the atmosphere…. ( Finance Information City )
“These costs represent 249 billion dollars and would be even higher if the effects of the climate change were included”, according to this study carried out by Greenpeace, the Foundation of Energy and Funds world for nature (WWF), entitled “the true cost of coal”.
“The environmental and social damage caused by the use of coal in China is underestimated because of the faults of the market and of the weakness of the regulations”, explained Mao Yushi, economist and one of the principal authors of the study.
In short, hidden costs, in terms of air pollution and water, degradation of the ecosystem, maintenance costs of the infrastructures, human losses.
“If all the external costs of coal were really reflected in its price, that would provide a signal, via a price not distorted, for the whole of the energy market”, estimate the authors of the report/ratio.
Let us recall that China became, with the United States, the principal pollutant of planet, taking into account its economic growth. According to New the China agency, Beijing saw its imports coal to increase by 34% over one year in 2007, to reach 51,02 million tons.
The Asian giant estimates that coal will remain it principal fuel of its development, even if the nuclear power and the hydoelectricity should play a more important part.
The consumption of electricity decreased in China in September, because of the slowdown in economic growth, according to Clouded Electricity Council. The consumption of electricity increased by 9,67% during the first nine months of the year compared to the previous year to reach 2.627 billion kWh. The growth rate of consumption as for him decreased by 10,19% from January to August.
The industrial sector, which accounts for 76% of the total intake of electricity, paid to have used 9,31% of electricity moreover during the first three quarters compared to last year. The rate was of 7,47 points of percentage less than the last year.
This deceleration was allotted at the request of fall, because of the economic deceleration and the closing-down of certain factories during the Olympic Games of Beijing.
The powerplants with coal generated 2.143 billion kWh, that is to say a rise of 8,2% compared to the last year. Last year, the coal stations had brought back an increase in the electrical power of 16,7% during the first three quarters. The deceleration of the growth of this year is also explained by the high cost of thermal coal and by the temporary control of the government on the tariffs of electricity.
In his report/ratio over the year 2007, the American Chamber of commerce in Shanghai explains in addition why 24,8% of its companies members underwent rationings of electricity during last year. This results concretely in cuts, in particular in the factories, sometimes several days per week.
But these shortages are not only related to the rise in the prices of fuels. They must also with the system of production and of electric distribution Chinese.
In China, the prices of electricity are controlled by the state. The power stations which transform coal into electricity sell electricity with the network of state, which then distributes it to the consumers. This system makes it possible to offer to the consumer of the relatively low prices. The Chinese peasant pays his electricity rather little expensive, but when the price of coal increases, they are the producers who must make the wide variation.
If the large power stations continue to produce, because they are forced there by the state, smallest close. With the rise in the price of coal, they do not have any more the means of buying some, except continuing to be involved in debt. Vicious circle: the closing-down of these factories leads to a fall of the production.
For recall, the country depends with nearly 70% to the coal for its electricity. The Chinese growth thus rests above all on the majority and increasing use of coal, first energy resource of the country, but source of massive carbonic gas emissions in the atmosphere…. ( Finance Information City )
“These costs represent 249 billion dollars and would be even higher if the effects of the climate change were included”, according to this study carried out by Greenpeace, the Foundation of Energy and Funds world for nature (WWF), entitled “the true cost of coal”.
“The environmental and social damage caused by the use of coal in China is underestimated because of the faults of the market and of the weakness of the regulations”, explained Mao Yushi, economist and one of the principal authors of the study.
In short, hidden costs, in terms of air pollution and water, degradation of the ecosystem, maintenance costs of the infrastructures, human losses.
“If all the external costs of coal were really reflected in its price, that would provide a signal, via a price not distorted, for the whole of the energy market”, estimate the authors of the report/ratio.
Let us recall that China became, with the United States, the principal pollutant of planet, taking into account its economic growth. According to New the China agency, Beijing saw its imports coal to increase by 34% over one year in 2007, to reach 51,02 million tons.
The Asian giant estimates that coal will remain it principal fuel of its development, even if the nuclear power and the hydoelectricity should play a more important part.
The consumption of electricity decreased in China in September, because of the slowdown in economic growth, according to Clouded Electricity Council. The consumption of electricity increased by 9,67% during the first nine months of the year compared to the previous year to reach 2.627 billion kWh. The growth rate of consumption as for him decreased by 10,19% from January to August.
The industrial sector, which accounts for 76% of the total intake of electricity, paid to have used 9,31% of electricity moreover during the first three quarters compared to last year. The rate was of 7,47 points of percentage less than the last year.
This deceleration was allotted at the request of fall, because of the economic deceleration and the closing-down of certain factories during the Olympic Games of Beijing.
The powerplants with coal generated 2.143 billion kWh, that is to say a rise of 8,2% compared to the last year. Last year, the coal stations had brought back an increase in the electrical power of 16,7% during the first three quarters. The deceleration of the growth of this year is also explained by the high cost of thermal coal and by the temporary control of the government on the tariffs of electricity.
In his report/ratio over the year 2007, the American Chamber of commerce in Shanghai explains in addition why 24,8% of its companies members underwent rationings of electricity during last year. This results concretely in cuts, in particular in the factories, sometimes several days per week.
But these shortages are not only related to the rise in the prices of fuels. They must also with the system of production and of electric distribution Chinese.
In China, the prices of electricity are controlled by the state. The power stations which transform coal into electricity sell electricity with the network of state, which then distributes it to the consumers. This system makes it possible to offer to the consumer of the relatively low prices. The Chinese peasant pays his electricity rather little expensive, but when the price of coal increases, they are the producers who must make the wide variation.
If the large power stations continue to produce, because they are forced there by the state, smallest close. With the rise in the price of coal, they do not have any more the means of buying some, except continuing to be involved in debt. Vicious circle: the closing-down of these factories leads to a fall of the production.
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