Current News Headlines

Time is running out. While the U.S. may be in default of payment if no agreement is reached on the debt by August 2, Barack Obama issued an ultimatum. Before starting a meeting in 75 minutes Sunday night with parliamentarians, the U.S. president and said "must" that Congress reached agreement on the debt within 10 days.

After discussions between key leaders of Congress – Democrats at the head of the Senate and the Republican majority in the House of Representatives – Barack Obama said he will hold a press conference Monday at 17 noon, Paris. The negotiations between elected to continue thereafter.MPs also plan to meet every day until they reach an agreement, says Bloomberg.

Despite the optimism displayed by the U.S. Treasury Secretary Timothy Geithner, who believes that "the U.S. will not default," the discussions on key topics such as tax increases or program of government spending have little progressed. Republicans and Democrats continue to disagree on the remedies to lower debt. "It is appalling that the president and his party continues to insist on the need to raise taxes in a crisis when they refuse to reduce spending," said the spokesman of the Republican minority in the Senate at the end of meeting Sunday night.For her part, Nancy Pelosi, representative of the minority Democrats in the House of Representatives, is confident that "a consensual agreement is reached (…) it could, she says," include more cuts in public spending but on a longer period. " But she says being uncomfortable with the idea of ​​"saving billions of public health."

ALSO READ:

"Debt crisis: Obama negotiating with elected officials

"Debt: the elected officials are struggling to reach agreement

"The IMF calls to avoid default

Chinese Premier Wen Jiabao expressed his "confidence" in the future of the euro area and promised to continue investing in the region at the beginning of a new tour on the old continent. In the midst of the Greek debt, Wen Jiabao gave a breath of fresh air to the euro by saying that Beijing had "continued to buy treasury bills from several European countries and had not reduced its reserves in euros." In Budapest and London to Berlin today and tomorrow o ù he will attend an economic forum with Chancellor Angela Merkel, the prime minister wants to present China as a long-term partner of the European Union.

Significant support before a crucial week for Greece.In fact, while the Greek Parliament will vote on Thursday, the new austerity plan required by the EU in exchange for the release of the next tranche of 12 billion euros, the Greek deputy prime minister warned that recalcitrant MPs could block some reforms sought by donors. Theodore Pangalos believes that overall the plan should be passed but the new tax reforms and privatization of national companies should be difficult to adopt, he warned. Yet the majority of the Papandreou government is reduced, the ruling PASOK deputies out of 155 and 300 Greek opposition repeats it rejects the call for a united front.

At the same time, France came up with a new plan to allow the private sector to help Greece, reveals Le Figaro.In the night from Friday to Saturday, the French Treasury and financial institutions have agreed on a scenario that will allow private creditors to subscribe to new Greek government bonds on a voluntary basis.

ALSO READ:

"SPECIAL – Europe, States facing bankruptcy

»Greece: towards a second aid plan of 110 billion

"Greece: the solution proposed by France

It's confirmed. As Le Figaro had revealed on February 22, gas prices in France will increase by 5% from 1 April. Eric Besson, Minister of Industry and Energy has announced at a press conference on the installation of the National Observatory of fuel poverty that GDF Suez was preparing "to submit to the CRE (Commission for Energy Regulation, Ed) a request to increase gas prices in effect from April 1, "5%" in principle ", he said.

In January, gas prices had been frozen by government decision. These are only three months after the invoice will begin to swell. 10.8 million households connected to natural gas are affected by the bad news. The increase of about 5% represents a premium of around 45 euros for their heating bills. Especially after this increase, the price of gas has taken nearly 20% in one year.On 1 April 2010, he had jumped by 9.7%. Last July, he was again appreciated by 4.7%. This winter, the government had decreed a break.

Rising oil prices reflected

GDF Suez was announced last August the establishment of a new method of calculating gas rates in France, intended to better reflect market prices and had to be applied from 1 January 2011. If the old method of calculation had been used, the increase was 1.7 points higher.

So now, rising oil prices is it better taken into account.Yet in recent weeks, the barrel is trading above 100 dollars and even exceeds $ 110 for several days, as tensions in Libya does not fade and that the risks of contagion Arab revolutions always worried.

Besides gas prices, two other major elements involved in the fixing of prices: the cost of transportation and distribution, on the one hand, and marketing costs (contract management and billing), on the other.In the case of transportation, this element is reviewed annually on 1 April precisely.

These days, the National Housing Federation (NLC), the main tenants' organization, called the return "to a utility power with a state guarantee of rate stability."

ALSO READ:

»INFO LE FIGARO – The price of gas will increase by 5%

The oil could burn more than $ 220 a barrel

"Gas prices: the wrath of the CNL

"Rising gas prices in the study (Besson)

"The gas prices unchanged until April

Poorly controlled spending, revenue uncertain. In its annual report published on Thursday, the Court of Auditors shall, as usual, a finding on the strict management of public finances. This observation leads to doubt that France would bring its public deficit to 3% of GDP in 2013. "We believe that the target of 6% of GDP in 2011 is achievable, but we are more interrogative beyond 2011," said Didier Migaud Thursday, the first president of the Court. In fact, this year's deficit reduction will come mainly from the end of exceptional measures (stimulus plan, reform of business tax). This boost disappearing in subsequent years, it will have to rely on structural measures to redress public finances.And more so, according to the Court, "economic growth could be less" to the 2% retained by Bercy.

However, until now, France has not been rigorous. Expenditure side, the objective enshrined in planning law has never been respected Multi (1.4% increase in 2010 instead of 1% predicted). And as for obeying the Roadmap 2011, "should make an effort to save $ 13 billion, the savings identified by the Court amounts to only about $ 5 billion," said Didier Migaud. The years 2012 and 2013 are not better documented. Hold the involve expense to conduct reforms "much more ambitious than those already announced," concludes the report. Example of payroll for the State.To stabilize it, should, according to the Court, freeze until 2013 the index point officers (one of the essential elements of their remuneration) and capping premiums categorical. Now the government has simply freeze the index points in 2011 …

On the revenue side, the Court is concerned that two reforms of 2009-that of business tax and the VAT reduced food-do lose respectively 4 low interest rate personal loans.7 and 3.1 billion in government revenue annually. Remains that in 2011 this trend is reversed. The tax burden will increase by $ 10 billion, thanks to cuts on the niches. But it recommended to go further, reducing the total tax and social niches 20 billion per year. It must be said that there is urgency. According to the report, the only cost of up tax shelters has increased by 43% from 2004 to 2009, reaching 72.9 billion.One-third of state tax revenue! And this without counting the 75 billion sites that have been deleted from the official list … In the annual report, the Court condemns once more the earned income tax, which costs over $ 4 billion, "does not incentive effect of re-employment "and overlaps with the RSA activity.

Faced with all these excesses, Didier Migaud said on Thursday that "a revision of the Constitution may be useful." A strong statement from the former socialist president of the Finance Committee in the Assembly.

Meanwhile, he reiterated that the action of the Court was bearing fruit. Thus he noted improvements in personnel management of air navigation, singled out last year. While the situation of the port of Marseille or the computer system of State Chorus has not progressed.But overall, according to the Court, 71% of recommendations have led to a reform in 2010.

ALSO READ:

"FILE – A report from the Court of Auditors

"DOCUMENT (pdf) – A summary report of the Court of Auditors

"DOCUMENT (pdf) – The full report of the Court of Accounts (Part 1)

"DOCUMENT (pdf) – The full report of the Court of Accounts (Part 2)

"France did not cut enough spending

The first steps of Tekka on financial markets are definitely not easy. On 8 February, ten days after being officially launched its IPO process, management of dental implants specialist announced a fundraising well below 15-17250000 euros it initially wanted up, with only 11.25 million euros collected.

Set at 10.85 euros, the price per share was well below the price range announced in late January, from 13.15 to 15.15 euros. And for the first day of trading on Monday, far from unanimous among investors, the stock has collapsed. At noon, it fell by over 6.5% to 10.14 euros. A better, however, after some 11% of any decline in early trading.Despite an introductory price lower than expected, investors were therefore considered too high, the recovery group (43.25 million).

International growth slowed

After the operation, the company Rhône-Alpes has failed by almost 4 million goal down. A partial success forcing to "consider the establishment of a new timetable for international expansion, opening new branches being made more progressive," according to a statement.

For now, management does not give more details on the timing of this new calendar, but the international growth could take a year or two more than the three planned exercises.This uncertainty about the pace of development and thus on the horizon to arrive at the balance of society, is not likely to reassure the markets, in an already unfavorable to the confidence of the operators. Initially, Tekka wanted to open by 2013 six new branches abroad (United Kingdom, Greece, Italy, Canada, Egypt, Switzerland), in addition to the existing five (Spain, Germany, Turkey, Belgium, Morocco).

Financial markets still closed

This performance is disappointing but reflects the state of financial markets, especially little bit open and fond of corporate records had still not reached equilibrium. This is the case of Tekka. The company operates in a market enjoying strong growth, supported by favorable demographic trends, but had to invest heavily to develop its product lines and subsidiaries abroad.Result: If sales posted an average annual growth rate of 55% since 2001, annual losses in 2009/2010 totaled nearly 2 million (year ended 31 March), against 3.5 million a year earlier . Analysts said the group should not achieve its first profit until fiscal year 2012/2013.

Nevertheless, bourisèrement, the course should êtrer less volatile than small biotech companies with recent entry on Alternext (Carmat, Neovacs …). Like the "med-techs" Tekka has already approved and marketed products, which limits the impact of a possible failure on a product under development.

Also note that the listing venue chosen by the company does not promote its visibility, which inevitably limits the interest of investors.Certainly, trading on Alternext enables small and medium enterprises to acclimate smoothly with the requirements of the Exchange, but it offers them less well known, an element that is sometimes detrimental to the stock performance potential. One more factor that explains the poor performance of the track this morning.

ALSO READ:

"Biotechs are heading back to the Exchange

"Fundraising in biotech history

Given the risk of "food riots" which he considers "real" backdrop of soaring agricultural prices, Bruno Le Maire calls to take urgent steps to reform the international markets.

Pitches Friday in Rome for consultations with the two UN agencies responsible for development of agribusiness in developing countries (FAO) and the emergency food aid (World Food Programme or WFP), the French Minister of Agriculture has set itself the goals outlined France for the G20 in June: "Agriculture is central to our priorities," he said.

In seven months, according to the Director General of FAO, Jacques Diouf, the price index for food increased by 37% in January to reach their highest level.The grain increased by 62% in the same time, although it remains below the peak reached in April 2008.

Fight against speculation

For the poor who spend up to 60% of their budget on food, the financial burden becomes unbearable. "These increases in prices and volatility will continue in the coming years if nothing is done to address the root causes of the imbalance in international agricultural system," said Jacques Diouf.

In this context, Bruno Le Maire calls to intervene in four areas best payday advance. Transparency in international stocks should be improved by better statistics, trade information and tools for faster action, to direct any surplus to deficit regions.We must also fight against speculation on agricultural products, "economically dangerous and morally unacceptable", which allows some operators to achieve in a few days of huge gains. Physical and financial markets must also be better controlled to obtain prices "more stable and less volatile."

It is to strengthen international cooperation between governments, multilateral institutions, such as FAO and WTO, and market operators. And to allow the WFP distributes food aid to buy "at prices lower and more stable." Finally, France calls for boosting investment in agriculture. According to FAO, the share of agriculture in official development assistance fell from 19% in 1980 to 5%."It's not normal that the stimulus package agreed in July 2008 by the G8 summit of L'Aquila are not yet in place," said Bruno Le Maire.

ALSO READ:

"Cotton at its highest since the Civil War

"Papermakers cornered by soaring prices

Unlike airliners, helicopters have not yet turned the page of the crisis. "On the civilian segment, the activity will be flat in 2011," said Lutz Bertling, CEO of Eurocopter, an EADS subsidiary. In the military segment, it is uncertain pending the arbitration of European defense ministries, "the military market is affected by significant constraints on public budgets," insists CEO.

This year will still be difficult. Eurocopter provides the direction down 5 to 10% of its shipments to $ 527 machines in 2010 and 558 in 2009. "At the beginning of the year, we still have the 2011 deliveries are not secure," says a senior leader of the group. Further cancellations are not excluded from the 50 recorded in 2010. A level higher than the average which ranges between 35 and 40 "during a normal year."

Meanwhile, new orders stagnated at the same level as in 2010 is around 346 helicopters. "Despite this, we anticipate an increase in our revenues related to a new hierarchy in our product mix with increased activity in our services and a market trend toward larger order helicopters therefore more expensive ' develops Lutz Bertling. Last year, Eurocopter has made 4.8 billion euros in sales (+6% over 2009) and "contributed positively to the results of EADS," said the CEO still stressing that the profitability the subsidiary he heads was "not less than the average profitability" of the parent.In 2009, operating profit (EBIT) stood at 263 million euros.

Net recovery of oil and gas sector

On a gloomy civilian market, Eurocopter anticipates a strong recovery of oil and gas sector with a jump in orders from EC-175 (Super Puma), a heavy helicopter. Eurocopter has seen its orders fall to 45 copies in 2010 against 81 a year earlier. However, once the price of a barrel of oil tops $ 80, "the oil companies invest in their transportation," said Lutz Bertling. On this growing segment, Eurocopter see open new markets. "In the Middle East, the potential is 650 machines especially in the tanker segment," says Xavier Hay, vice-president in charge of Africa and the Middle East. "The potential of helicopters, oil & gas is important in Central Asia.All segments, it represents 25% of the total market which we estimate to 200 helicopters within ten years, "abounds Michalon Olivier, Vice-President Eastern Europe and Central Asia.

On the front of the military activity, Eurocopter plans to deliver the NH 90, a transport helicopter, with three new customers (New Zealand, Greece and Norway), move on the final classification of the Tiger combat helicopter pay day loans. He is also working on future bidding of the U.S. military, wishing to replace its fleet of light helicopters armed. Eurocopter and is still considering whether to développerun heavy cargo transport in cooperation with Boeing.Among the uncertainties in defense contracts, the position of Germany has ordered 65 Tiger and 100 NH 90, of Spain, during the crisis of public finances, which has now suspended its order 24 Tigers and 40 NH 90.

Investing to prepare the future

In this context, Eurocopter will continue to invest to prepare for the future. "Every year, we will first test flight or launch a new program," insists Lutz Bertling. It continues to develop its project X3 hybrid helicopter and plans to launch the successor of the Dolphin, one of his bestsellers, Spring 2011. A project, called X4, where Eurocopter hopes to recover funds from Big Loan to engage the renewal of its range. "The state's decision is expected by the end of the first quarter," said the CEO.He expects a mix of capital inflows but fresh and ready "in any case, it is no money to develop the device, is money intended for technology development," he adds. An important point because the project raises concerns X4 in France and Germany.

With this program valued at 400 million euros, Eurocopter wants to complete its reorganization based industrial specialization sites. The basic scheme provides for a transfer of activities from the fuselage (Aerostructures) French in Germany, while in France it would repatriate its business systems and dynamic sets (eg transmission). Which satisfies no one, the French do not want to lose this specialty. It becomes crucial in moving towards composite materials. And it allowed Marignane structuring of partnerships, notably with China.Donauwört in Germany, we do not want to be dispossessed of dynamic elements. And adds a French trade unionist, "no question that money from Big Loan so go the French taxpayer support employment in Germany."

Meanwhile, the manufacturer considers to be on track to achieve its target of 200 million euros in savings per year by late 2011. "In late 2010, we achieved 50% of that goal," said the CEO.

ALSO READ:

"Renews its range of Eurocopter helicopters

"Military helicopters: Lockheed and EADS join forces

Spain is generally on track to meet its deficit target for 2011 but is threatened by risks such as lower than expected growth, the OECD said in a report released Monday.

"Where budget targets are not met, authorities will be ready, as was announced, to take additional measures," it said in the conclusions of this report.

The OECD notes that economic growth may remain weak for an extended period and anticipates an increase in gross domestic product by 1.8% in 2012 while the government ahead of a forecast 2.5%.

Spain came out to much trouble for the first quarter than a year and a half of recession but its economy has stagnated until the third quarter under the weight of the austerity measures taken by the government and low consumer confidence.

"A slow recovery began in the first half of 2010, but growth is likely to remain soft due to the new adjustments in the housing sector and the high level of private debt," wrote OECD.

The organization says that Spain should be ready for new tax increases because the reduction of wages in the public long-term objectives optimistic growth and lack of specific measures to reduce expenses in 2011 are at risk.

OECD calls for example a new VAT increase, already passed in July by 16% to 18% on a wide spectrum of products and services.

Reform of Work and Pensions

The document recalls that it was essential to take steps to reassure investors even to keep costs moderate funding for the State, whose borrowing rate markets have soared amid fears of a spread within the euro zone of the crisis that has forced the EU and the IMF to bail out Greece and Ireland.

The labor market reform was a key element of rebalancing the economy, but efforts in this direction should be more intense and more, and include such changes to the system of collective bargaining, said the OECD quick pay day loan.

The OECD warns that unemployment will remain high, though it should begin to decline significantly in 2011. In the third quarter, the unemployment rate was 19.8%, about twice the average for the euro area.

Unemployment would also put at risk home loans granted by savings banks highly leveraged if interest rates were to rise in the euro area.

Time to rebalance the housing market

Spain also should it impose further reforms to the savings banks, although their resistance to potential financial shocks has increased due to the restructuring already undertaken. The banking industry has generally weathered the crisis and emerged with abundant capital, also notes the OECD.

She still advocates a reform of the pension system, including raising the retirement age from 65 to 67 years.

"To control the significant costs associated with aging, we will have reform without delay old age pensions, including raising the statutory retirement age and reducing the implicit subsidies to early retirement, to allow a transition progressive, "said the OECD.

It urges the federal government to toughen rules governing the expenditure of autonomous regions, which account for 35% of state spending.

She finally warned that the housing market will take time to regain his balance. It will take at least three years to absorb the surplus of empty homes if the transactions of new homes retain their current level, says the OECD.

(With Reuters)

The largest French companies are not necessarily those that relate most to the state coffers. According to a survey published this weekend in the Journal du Dimanche, a CAC 40 company in four would not pay tax (CIT) last year. Danone, Suez Environment, Total, Saint Gobain, Schneider or completely escape such levy. Half of the CAC 40 companies chose not to respond to questions from the newspaper, but "if they say nothing is that they do not pay much," says in his columns a tax lawyer. As already noted a report by the mandatory withdrawals last October, the CAC 40 companies are taxed at an average height of 8% of their profits, against 33% normally. SMEs, less able to exploit various tax loopholes, by transferring an average of 22%.

Because it is under the tax code that the contribution of big business reached a level so low. Despite the high rate of corporation tax in France, many tax provisions, such as unlimited carryover of losses, the research tax credit or the deductibility of loan interest, they can indeed reduce their payments. According to the Council of compulsory levies, the cost to the state of the various loopholes in the tax and social benefit to companies reached 172 billion euros in 2010 no fax cash advance. Danone, for example, taxes deducted from the borrowing for the acquisition of Numico in 2007, says the JDD. And if other businesses, such Total or PSA, revertants do anything this year for being in the red, they may also limit their payments in subsequent years, with unlimited carry-over losses deplored during the crisis.

Finally, as a result of these multiple devices, the product of the corporate tax is reduced gradually. Hence the idea, supported by the Elysée, an overhaul of the device for more convergence with other European states, particularly Germany. Pressure without success on Ireland to raise its IS – the lowest in Europe at 12.5% – said the crucial for France and Germany at the tax variable. If the establishment of a single rate for all European countries seems unlikely, France and Germany would lead, at least, to fix a similar attitude. The European Commission should make proposals in March.

The summer ends with a bang for Emirates Airlines. The airline of Dubai has recorded an increase of 351% of its net profit in the first year began in early April, to 925 million. These findings "incredibly high," said the president of the board and executive director of the company, Ahmed bin Saeed al-Maktoum, explained both by "an increase in demand, spurred by investments in new devices, new products and improved service. "

For several months, Emirates, the first airline in the Middle East, and its local competitors Etihad (Abu Dhabi) and Qatar Airways are making a particularly offensive strategy.This requires in particular a growing number of flights to Europe, then to bring passengers to the hubs of Dubai, Abu Dhabi and Doha, before forwarding them to more distant destinations.

This year, no fewer than 12 new international destinations outside Europe are offered by three companies of the Gulf, including Seoul, Tokyo, Melbourne, Goa and Bangalore. Now, a passenger wishing to travel to Asia may well pass through Dubai or Abu Dhabi, whose hubs have the best geographical location between the U.S. and Asia.

This severe battle with Western companies is not likely just beginning. The UAE currently in effect discussing with France and Germany to increase their traffic rights. The negotiations are not smooth.In early October, Air France-KLM has officially branded the government subsidies enjoyed by Emirates and it would place orders with unparalleled easy pay day loans Airbus and Boeing.

Order history

"We grew up without aid through a business model based on commercial considerations, and we see no reason to apologize for what we've succeeded," immediately responded in a statement the president of Emirates, Tim Clark . In June, the company distinguished itself at the Dubai Air Show in Berlin by announcing a landmark order of $ 11 billion for 32 very large aircraft.

In the process, at Farnborough Air Show, Emirates announced an order for 30 new 777-300ER Boieng, for an amount exceeding $ 9 billion.Meanwhile, the fleet of Emirates intends to use futures 120 Airbus, whose A380 dozens.

Currently, the Dubai-based company recorded an annual increase of about 20% of passenger traffic. It intends to maintain this pace over the next five years, despite the harshness of discussions with key target countries.

The last issue to date is reached in October after the refusal by Canada to increase flights by Emirates Airlines and Etihad to North America. This trade dispute has led to a political response: the United Arab Emirates did not renew the lease at the Canadian Forces military base of Camp Mirage located in the Gulf region.

ALSO READ:

"Emirates airlines due to ferocious appetite