Current News Headlines

Until now, the French have not felt the effects of policy, expenditure control has been conducted since 2007. For the general revision of public policies (RGPP) merely cut in the organization of the state, culminating with the non-replacement of staff on two retiring. After the controversy arose in Spring 2008 when Bercy had failed to dent the map "families," the executive had resigned himself to not touch, or marginally so, the expenses of intervention, ie policy social and wider economic (costs targeted exemptions, housing subsidies, RSA, assisted contracts …) and subsidies (crops, including transport).

Today, given the magnitude of deficits, the government changed its tune.In framing the letter he sent to all departments, Francois Fillon requires a 10% decline in value of intervention expenditure in the period 2011-2013. "To meet the target of freezing government spending-load of debt and pensions, we can not content ourselves to work on the only day operation of departments," said Baroin's entourage, the Minister Budget. In fact, operating expenses, such purchases, computers or real estate, representing less than 20 billion euros, while the operating expenses weigh 67 billion. The Prime Minister had already announced a cut of 10% within the past week. Measurement confirmed in the letter of framing.The extension of this plane to political intervention will save 6 billion more to the state by 2013.

Difficult choices

Remains now to determine exactly where the cuts will take place. Discussions between Bercy and the ministries that will lead to arbitrage mid-June, tight ahead, as the operating expenses are political. Social expenditures account for half wicket. For them, it will take "specific reforms," according to the letter of framing. Minister of Youth, Marc-Philippe Daubresse however assured Wednesday that the criteria for awarding the RIAA will not be changed. The other half of the expenditure is made up of sectoral aid.Transport (including rail network of France), agriculture, housing and culture are on the front line.

"More generally, all departments will freeze all spending," insists one at Bercy. Including, therefore, that of Defence, while the military budget law provided an increase in appropriations. But everything should be done to ensure that capital expenditure are chipped to a minimum.

ALSO READ:

"Brussels expects the efforts of France and Italy

The European Commission wants to control budgets

Continental Airlines and United Airlines are about to happen in the ring finger. According to CNBC, a merger agreement between the two U.S. airlines could be signed next Monday.

According to the Thursday edition of The Wall Street Journal, "the Board of Directors of Continental met Wednesday and has scheduled another meeting on Friday (the day, Ed)" with United, citing sources familiar with the matter.

Two years after failing in their negotiations – the two groups did not agree because of unions and integration costs – United and Continental, whose bosses have always wanted to participate in the movement of Contraction sector, would now be on the same wavelength.

These last two weeks, the talks resumed but opinions differed on how the modality of trade action.

U.S. leadership to

This union intervendrait and only one week after the breakdown of negotiations between U.S. Airways and United Airlines. If the proposed merger between Continental and United Airlines led the new group would become the U.S. leader in the sector, ahead of Delta Airlines, with a market capitalization of over $ 6 billion.

It remains to be seen whether the authority will accept American competition this marriage Guaranteed unsecured personal loan. For who says merger often said job cuts and higher fares.What politically wrong.

A refusal has been lived to its reasons for U.S. Airways and United Airlines, almost 10 years ago, when they had proposed a reconciliation.

A need for synergies

While the sector has experienced in 2009 "the worst year's ever known industry, concentration is a single best way to achieve synergies and economies of scale.

The North American companies have suffered a loss of 3.1 billion dollars last year, according to the International Air Transport Association (IATA).

For 2010, although the estimates have been reported by IATA, the performance accrue largely to companies in emerging countries (Asia and South America), while companies in North America and Europe still would suffer heavy losses, the about 1.8 billion dollars for the former and 2.2 billion for the latter.

ALSO READ:

"Air:" The recovery is not affected "

"FOCUS – The companies make up between unanticipated shocks and winds concentration

The card was launched on May 3 to allow punters to play without cash.

His journey to the heights will not stop. The palladium, precious metals and rare platinum family, sees her classes skyrocket since the beginning of the year. Last Wednesday, the metal rose to 551.40 dollars an ounce, its highest level since early March 2008. One that contrasts sharply with that of December 2008, when palladium was quoted at $ 161 an ounce.

The metal was then hit by the crisis in the automotive industry which represents 50% of global demand. But the latter had declined 13% on average in 2009, the decline in other markets (jewelry, dentistry or chemistry) is unrepresentative.

The automotive industry uses palladium for catalytic converters for cars. This silver is resistant to corrosion and most importantly, it has the ability to absorb hydrogen and thus reduce the toxicity of exhaust gases.A key element in a time of anti-pollution standards imposed on the sector. Palladium has also initiated a frank increase in December 2009, when the summit was held in Copenhagen …

China stirs prospects

The increase in auto sales in March in Europe and the United States thus partly explains the renewed interest in this metal. But it is good to the Chinese automotive market as all investors are now looking. China became the world's biggest car market to the U.S. last year, grew its sales by 55.8% yoy to 1.74 million units, registering a new monthly record.

"Platinum is used in catalytic systems for diesel engines while palladium team mainly gasoline cars.Yet it is these that equip the Chinese fleet, "said Arnaud du Plessis, head of the center ring and co-manager of the Fund International Fructifonds Now Natixis Asset Management. The prospects are interesting while the country's auto sector is undergoing renewal. The equipment rate is 8 cars per 1,000 inhabitants, against 502 or 745 in Japan to the United States. There should be more cars in China than the United States in 2020! .

The country, considered one of the worst polluter on the planet, is also expected to increasingly move towards cleaner technologies. "These are the industry perspectives that make the market upwards," says the analyst.

Speculation

Another element of explanation of rising prices is the financial interest that is now the Palladium for speculators.Last January, three index funds based on platinum and palladium have been introduced in Switzerland and the U.S. fast cash. These ETFs (exchange traded funds) allow investors to bet on palladium and platinum without the hassle of bullion.

"These ETFs are attractive in this small market. We have already seen with the gold. For the first time in 2009, the new demand for ETFs has surpassed that of jewelry. In other words, the financial demand has exceeded industrial demand. This could also happen with palladium, "says Arnaud du Plessis. "The precious metals are generally an asset class in its own right, whereas before, this small market was more restricted to industrial.Now, it helps to diversify the portfolio because these metals are not highly correlated with the rest of the market.

The Russian market queen

Investors also expect the risk of reduced supply. The production of palladium is in fact highly concentrated: Russia and South Africa alone is home to 90% of recoverable reserves. Russia has secured a strategic stockpile in the years 70-80 which allowed him to play on the market. Norilsk Nickel, the first world producer of nickel and palladium, has also often been accused of restricting its exports for political purposes. In 2000, for example, it has put on the market 161.7 tons while demand was estimated at 261.3 tons. Today, the size of these stocks is a closely guarded secret by the Russian government, but experts believe it would be very low.

The fear of a weakening of the offer comes as problems faced by South African producers. The weakness of the country's electricity network is anticipating trouble to keep active mines, very energy intensive. In early April, prices surged after the announcement by the British mining group Lonmin, a restructuring plan employee departures in 5500 its mines in South Africa.

Attracted by the potential of palladium, the most marginal American players are emerging. "With rising prices, mining, the extraction is more expensive to go back into production," said Arnaud du Plessis. For the latter, the palladium market should still be stabilizing: "It is close to the top of 2008 with close to one ounce of $ 600. From this threshold, it will be more careful, "he says.Natixis analyst warned: "Market fundamentals still remain bullish, at least as long as no alternative method of palladium for catalytic converters will be discovered. In this case, the impact will be extremely negative. "

ALSO READ:

"Deficit reduction of platinum

A cloud of 200 million dollars (148 million euros). That bill, by far, the paralysis of traffic due to volcanic ash cloud, according to an estimate made Friday by the International Air Transport Association (IATA). This amount corresponds to "the financial impact (…) day in terms of lost revenue," said a spokesman for IATA said in a statement.

"In addition to lost revenue for airlines costs to change the routes of their machines and take on passengers and equipment stranded in various airports," he added. This is a "first conservative estimate".

According to many analysts, the closure of airports in North Europe was difficult to quantify an impact on the finances of airlines. Experts estimate that it will depend on claims from customers.More recently prefer to postpone their flight, the more it will limit the losses to the industry.

"While we have no visibility on the duration of these disturbances, it is difficult to say what is the cost for companies," Marina J. Devitt, the Irish Goodbody brokerage told AFP.

An invoice of $ 30 million for Air France

In the ladle, it is possible to obtain an estimate by dividing the annual turnover of a company by the number of days during which the aircraft remain grounded. Based on this rough, it is possible to establish that, for Air France-KLM, the cloud would cost 30 million euros and 25 million for British Airways, advance a Paris-based analyst.

In Germany, total paralysis of traffic is expected to weigh on the entire industry to the tune of 50 million euros in total per day and "less than 10 million euros a day" for Lufthansa, said analyst Per-Ola Hellgren, bank LBBW, told AFP. An invoice less salty than the recent pilots' strike which had cost 48 million euros in total.

Finally, the "one-time impact on earnings of the Irish Ryanair should be low since most of the operational costs will be avoided, except for aircraft rental and labor costs," notes the brokerage Irish NCB.

Rush predictable

Companies should still limit the damage thanks to the predictable rush of customers at the end of the flight ban. The aircraft should then record load factors much higher than normal, making profitable at the same time much better flights.

Without waiting to preliminary figures, the titles of European airlines fell sharply on the Stock Exchange on Friday. At closing, Air France-KLM took down 3.42%, British Airways fell by 3.13%, 4.10% Lufthansa.

See also:

Twenty French airports closed until Saturday 8 hours

"Packages, mangoes and footballers blocked

»Flights canceled: what airlines offer

It is an alliance that giant Credit Agricole is poised to build in the business of brokering, with China's Citic. Corroborating sources, the two groups, whose discussions began a year ago, will announce in the next few days their entry into exclusive negotiations.

Before yesterday, the Bloomberg spoke of the creation of a joint venture in Asia. The project is actually much broader. Cr?dit Agricole and Citic were preparing to share all of their brokerage activities, with the ambition to offer a comprehensive worldwide.For the Bank Green, this means that it will bring in the trash marriage the two flagships, CA Cheuvreux in Europe but also CLSA Asia inherited his nugget of the former Credit Lyonnais and the ex-Indosuez, which strike force in Asia is comprised of over 1 300 employees.

"An entry by the front door"

The negotiations will refine the assembly operation. It seems, however, have articulated a pattern in stages. Globally, the respective contributions show an economic weight of about 70% for Credit Agricole, 30% for its Chinese partner. In Asia alone, the ratio is 50-50.

In China, finally, market still very restrictive with regard to foreign players, the Green Bank would of course be a minority, but Citic would offer "an entry by the front door," said a source familiar with the matter.Both groups have the ambition to create a unique platform for implementation to the world. A strategy that sticks to the explosion of capital flows to and from the Asian region, particularly China. She also accompany the rise, very fast, of IPOs on the Asian markets for new local giants, but also of foreign cash advance. Western companies are increasingly likely to be tempted by either a dual listing-West Asia, either through public offerings in part of their activities in emerging markets.

In 2007, Citic had wanted to attempt the adventure of large-scale partnership in market activities. But the Chinese had backed the wrong horse by selecting Bear Stearns, number five on Wall Street, which was the first major victim of the financial crisis in March 2008.The company was swallowed by a weekend, for a pittance and under pressure from the Fed, JPMorgan.

By marrying his "brokerage" than CITIC, Cr?dit Agricole replicates the strategy already implemented in the field of asset management and derivatives: Green Bank has established two joint ventures with Societe Generale, Amund and Newedge . In both cases, there is access to the critical size. The problem applies to the brokerage, a business in which the challenge is to offset the costs of research teams and infrastructures, galloping amid technological revolution on the market.

Finally, the operation comes at a strategic refocusing of the Cr?dit Agricole group. The Green Bank in 2008 has imposed a severe weight loss at its investment banking subsidiary, which came early and suddenly in crisis.Now, CA IPC (Credit Agricole's Corporate and Investment Banking) is focused on three areas: structured finance, capital markets and brokerage. The planned offensive alliance with CITIC confirms this last job.

Lefigaro.fr / Jdf.com: Why banks they have strongly criticized the recommendations made in the framework of rules prodentielles Basel III?

Delzant Ellen: The Basel Committee has submitted to banks on December 31 last, ten recommendations for strengthening the system of banking supervision and harmonize accounting and prudential standards.

The new regulation called "Basel III" offers a better credit side, with the strengthening of equity and weighted by their market activities, securitization or counterparty risk. And the other, a much higher level of liquidity that banks can refinance markets. According to recent studies, these new standards would impose on banks to raise, by 2012, approximately 450 billion euros in capital to 1.500 billion debt.

What seems impossible in the eyes of banks, explaining that such rules would threaten the financing of the economy. The recommendations of Basel III were subjected to these banks, who are currently studying more accurately the impact of such measures. They make their copy on April 16 next.

The aim would be to implement a new regulation in 2012, the time that the economy really recovering from the crisis.

What exactly is the tax on banks which Berlin and Paris agreed on Wednesday?

At Summit Pittsburgh, which took place in September 2009, the G20 countries have shown their determination to rethink the regulation of the financial system, particularly for states to prevent digging into the coffers filled by taxpayers to save banks the bankruptcy crisis.

In Europe, there are already many discussions on this aspect of bank failures. And in Germany, recently adopted a tax credit that would put money into a rescue fund to be used in case of difficulty of the banking system. Such a tax would yield between 1 and 1.3 billion euros per year. What remains poor compared to the hundreds of billions of dollars injected by the German state banks. But pre-election period in Germany is already a good way to reassure taxpayers, who are also voters no fax cash loans.

Such a tax is not she justified since it was introduced in all countries?

Yes. But he must first of each country working at national level.Last Wednesday, while Christine Lagarde was alongside his German counterpart Wolfgang Sch?uble, France went in the direction of a tax credit. But it would fuel the state budget.

Whatever the allocation of such a tax, these are national decisions that will prevail, but will add a European, and even to globalize this process predominates, partly to avoid distortions of competition.

Already, the Franco-German cooperation is a strong sign of the desire to bring the case to the European level.A global control is obviously essential and the principle of transforming debt of banks capital seems consistent with the desire to take arms against a possible new crisis and save the taxpayers of the world's financial woes.

History:

• Basel I: In 1988, central bankers from the G-10 countries have issued recommendations to "ensure the stability of the international banking system by setting a minimum limit to the amount of bank capital.It showed the famous "Cooke ratio, established in 1992, which required that capital in relation to all lending commitments do not exceed 8%.

• Basel II: In 2006, the New Basel Accord, has established standards constitute a prudential perspective to improve understanding of banking risks, mainly credit risk or counterparty and capital requirements.

• Basel III: The governor of the Bank of the Netherlands, Nout Wellinck, chairman of the Basel Committee, announced December 31, 2009 "a profound change" prudential rules. The application of new standards will not happen until the world economy will not be permanently out of the crisis.Experts believe that Basel III should not occur before 2010 and 2011.

ALSO READ:

"Paris and Berlin ready to tax the banks

"Berlin is overtaxing its banks

"Lagarde is considering a new tax on banks

"Banks: DSK is a comprehensive solution

Nothing goes into refining. While Total is planning to close its plant in Dunkirk, lack of opportunities and a sufficient margin, the French Union of Petroleum Industries (Ufip) drives the point home. The situation is "critical," said Jean-Louis Schilansky, its president.

Twelve French refineries are losing "150 million euros a month" since March 2009, and the industry continue to suffer in 2010. The closure of the site Total to Dunkirk, which alone accounts for 13% of the French ability, do not change much, according to Ufip, which dealt with the topic at European level.

"This is not the closure of a refinery in Europe that will be enough to restore the situation," says Jean-Louis Schilansky. It should delete "7 to 8 million barrels per day, or about 10% of installed capacity in Europe."In other words, on the 114 European refineries, "a half" should be closed to restore the balance between supply and demand.

Shell reported a loss of $ 1.7 billion

In France, controls oil products fell by 2.8% in 2009 and nearly 9% in ten years. The economic crisis is not the sole cause of this decline free credit score . Consumers roll than before, and prefer diesel to petrol. Furthermore, the refining overcapacity and inflation of the multiple requirements of ecology and safety is increasing pressure on margins. In this context, the French oil industry does not want to hear about carbon tax."If, in this very difficult situation, we add a layer, it will be worse here," warns Jean-Louis Schilansky.

Total is far from the only group to suffer in oil refining. The U.S. Exxon announced last week a loss of 189 million dollars in this activity in the fourth quarter of 2009. BP just to break even on this trade. Shell yesterday announced an annual loss of $ 1.76 billion in its refining division. This is the "worst crisis" for this activity for twenty-five years, and it does not end in 2010, warned Peter Voser, Shell's CEO. The British giant is planning to sell or close 15% of its portfolio in refining.

ALSO READ

"Total closure differs from Dunkirk

»Total: State careful closure of Dunkirk

The prefect of Vienna, in his words, "stuck a little face." Reason for dissatisfaction: Sweden's Autoliv, owner of the manufacturer Autoliv flying car-Isodelta, announced last week in the press came from 22 of his Tunisian employees, to compensate for a lack of manpower on the site Chira-en-Montreuil. Flat: This reorganization comes barely a year after that 80 employees of the company have been acknowledged. "Autoliv has chosen to relocate to Tunisia. Very good. But they take and they do not come here of Tunisian Workers' prevents the secretary general of the prefecture of Vienne, Jean-Philippe Setbon.

Production of flying is in fact shared between the site of Chir? en Montreuil (680 employees), and El Nadhour Tunisia (700 employees).The leather trim has been relocated there fifteen years since the two hours required for each transaction made it difficult profitable in France. But shortly before Christmas, the Tunisian factory hand in flames. It seems logical now to work exceptionally Chir? en Montreuil some of these employees unoccupied. It is effective without the vigilance of the prefect. "When he read it in the press, he asked me to call the consulate of France in Tunisia to halt issuance of visas," says Jean-Philippe Setbon. 80 interim have been recruited to ensure the controls.

After three sessions "for nothing", investors seem to be a little more optimistic on that last week's meeting. The publication, at 14.30, figures on U.S. employment for the month of December has revealed an unemployment rate stable at 10%. The U.S. has destroyed 85,000 jobs over the last month of the year, far more than expected by economists.

Recall that the statistics revealed in December for the month of November had been particularly good. Yesterday evening, the U.S. stock exchanges closed at equilibrium. While Asia has ended in hesitation, but with a jump in Tokyo.

In an interview with Le Figaro, Patrick Devedjian, minister responsible for implementing the recovery plan, draws up an initial assessment.More generally, Aurel BCG 'fears about the quality of the debts of some Member States and economic indicators still very erratic combine to maintain doubts about the prospects for the euro zone, including short term. "

At 11 hours, Eurostat reported unemployment in the euro area rose, reaching the symbolic threshold of 10% and confirmed that the rate of GDP growth stood at 0.4% in third quarter, compared to the second.

In France, the trade deficit of France was again widened in November. It reached 5.304 billion euros, according to Customs. Later, investors will also some attention to the index of construction costs in the third quarter in France. In Spain, industrial production fell 5.7% in November.

On Thursday the Bank of England decided to keep rates unchanged.The day before, the minutes of the Fed suggested a prolonged status quo on U.S. monetary policy.

On the currency front, the euro has stabilized against the dollar, traders taking a cautious stance before the publication of figures for U.S. employment.

Veolia Environnement still leads

In this market optimism, Veolia Environment (+3.91% at 25.10 euros), still leading the ranking of ACC 40, supported by integration by Goldman Sachs in its list of preferred values. Dexia gained 1.55% to 4.98 euros, while the bank has good looks, including Societe Generale, which won 1.50%, to 51.53 euros, which warned Friday it wants to consolidate all its assets Toxic scattered around the world.

Conversely, Renault lost 0.78%.The group should choose to assemble its new model on the site of Bursa, according to the Tribune on Friday.

Out of CAC 40 companies and Gameloft Beneteau derive Sector Index leisure facilities to increase (+2%). Beneteau (+8.80% at 12.49 euros) has announced a turnover of 87.7 million for its first quarter 2009-2010.

About the 400M (which actually date a third flight), "at a meeting of Secretaries of State will be held in London January 14," said a spokesman for the German Ministry of Defense AFP.The boss of Airbus (EADS subsidiary, 0.99% to 14.35 euros), the German Thomas Enders, has told a Christmas dinner of the director in December that it would " believed in a continuation of the program, and have begun to prepare its end, said Tuesday the Financial Times Deutschland.

The state, which holds more than 90% stake in Areva (-1.4% to 370.55 euros), discussed today with three partners in particular: the Japanese industrial Mitsubishi longstanding partner of the group nuclear, Qatar's sovereign wealth fund and its counterpart in Kuwait.

Bollor? Telecom, cantor of WiMax and a subsidiary of Bollor? Group (+0.17% to 118.20 euros) just bought the operator Altitude WiMax licenses of Alsace and Burgundy regions.

The second French operator of mobile telephony, SFR (subsidiary of Vivendi), claimed on Thursday offers the most complete multifunction phones, thanks to exclusive deals with Palm and Google. Vivendi (-1.18% to 20.86 euros), precisely, the trial in New York continues its course. This public trial in class action accuses the group of giving financial communications strompeuses between 2000 and 2002.

Rentabiliweb announced this morning launching a capital increase of 10 million euros. Its shares are now traded on Euronext, and not on Alternext.