International News

 

"If I am elected, I do not gèlerai, but I stoop down the salary of the president and ministers of 30%." By November 2011, Francois Hollande had made the campaign promise very symbolic, while Nicolas Sarkozy marked the spirits in increase of 172% net salary (of 7,084 to 19,331 euros) on arrival at the Elysee. Presented at the first cabinet meeting on Thursday by the new prime minister, Jean-Marc Ayrault, the measure was formally adopted, confirmed by several cabinet members. Accordingly, the president and ministers will have their wages fall by 30%. "This is exemplary," explained Jean-Marc Ayrault Wednesday on France 2. This measure will be a decree. But this law, which will not be adopted before June and the election of the National Assembly, "will be retroactive," said the spokesman of the government, Najat Belkacem-Vallaud. It is therefore effective "as of May 15" date of the nomination of Francis Holland as president.

The gross monthly salary of Ministers will therefore decrease of 14,200 euros per month, to 9,940 euros. That of the Prime Minister will also be trimmed from 21,300 euros to 14,910 euros gross. Like, finally, the compensation of the President of the Republic which is equivalent to the Prime Minister. With a plane that has a surprising consequence. Ex-Ministers continue to earn more than their successors for another six months. Indeed, each team member Francois Fillon retain his salary during this period. A privilege granted to all former ministers, who lose their theory, however, other benefits.

In the camp of the UMP, the reactions to this first measure of government have not kept waiting. Jean-Francois Cope, the party's general secretary, described the pay cut of "deception" on Twitter.

I denounce the imposture, the clannishness and demagoguery are the appointment of the first steps of @ fhollande ump.org / news / esp

. – Jean-Francois Cope (@ jf_cope) May 17, 2012

It explains, in a statement, the government has Ayrault "14 members of more" than the first Fillon government. "We go from 15 ministers, four secretaries of state and a High Commissioner to 34 ministers and deputy ministers, an increase of 65%. Wage cuts of 30% can not hide this fact: the government of Francois Hollande will be far more costly to the taxpayer. "

Largest decline in Europe

If they come later than in other European countries, this decline in compensation of government is by far the strongest. One of the first to take this measure, as he tried to impose on his country a vast austerity plan, was the Irish Prime Minister Brian Cowen. From 2009, he had reduced his salary and that of his ministers by 15%. In the process, in May 2010, Spain followed the movement by announcing a 15% reduction of salaries of its ministers. In the UK, the British prime minister, David Cameron, newly installed in power, his ministers imposed a 5% decrease in their pay. A dry diet made subsequently by Italy and Portugal, among others.

In Europe a constraint to fiscal Germany still appears a prosperous island. While the German economy grew by 2% annual rate in the first quarter, Angela Merkel and her ministers were granted for the first time in twelve years an increase of wages. The Cabinet decided on Wednesday to a 5.7% increase in three stages by August 2013, bringing the salary of Angela Merkel to about 17,016 euros gross per month and those of his ministers to about 13,795 euros.

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A potential policy holder should always study their life insurance quotes carefully and all terms contained within them should be properly understood before any final decision is made.

 

Danone Nestlé pipped to the post. After months of bidding, both groups had submitted their final offers Friday the pharmaceutical company Pfizer to buy up his infant nutrition division. At a Board of Directors held this weekend, Pfizer, according to our information, preferred the Swiss giant, world leader in food, the French group.

Danone had yet put on the table just over $ 11 billion for the opportunity to strengthen its branch child nutrition (Blédina, Dumex) in Asia and Latin America. To prevail, the group led by Franck Riboud was finally does not ally with American specialist baby milk Mead Johnson, as he had been a time draft. Anxious not unsustainable debt and not having to sell its bottled water to fund this acquisition, Danone was however associated with investment funds for a portion of the acquired business to Pfizer, and intended to sell assets in infant nutrition in Europe (excluding France), Australia and New Zealand.

Three times larger than Danone, Nestle has used its war chest to win. By paying more than $ 11 billion for an activity of 2.1 billion, including the Swiss group will be able to recover some of its delay in this sector in China.

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They are young, teeming with ideas, with a bright professional future and – especially – refuse to see leave a ruined world. The crisis that is sweeping the Western economies over the past four years and upsetting the global equilibrium leads to a resurgence of activism among young entrepreneurs. Alongside institutional think tanks – Davos and other circles of economists – forums bringing together young leaders "of tomorrow" are multiplying on the planet. And, more recently, now these kids want to be heard from their elders.

One of the oldest forums, the St. Gallen Symposium will meet for the 42nd time in Switzerland, 3 and 4 May. 200 young entrepreneurs, teachers or students compare their ideas to "deal with the risks" threatening the planet, watched by 600 business leaders or senior officials, including several "guest stars" – Josef Ackermann (Deutsche Bank) and Jean -Claude Trichet (former President of the ECB).

But in the East also arise new think tanks wanting to prove that their young entrepreneurs are equally able to invite the sharing of growth. Created in Rhodes in 2010, the Youth Forum, an offshoot of the think-tank based Time Youth in the Czech Republic is one of them. His goal, happy idealist, is "to reconcile the views of emerging nations" to "lay the foundations for a better future."

300 youth from 70 countries, activists, environmentalists, industrialists but also specialists in new technologies meet once a year to get to know and "create the world of their dreams," aided by economists or experts phenomena societal. All under the protective wing of the "Global Forum of World Civilization".

Groundswell

The forum that promotes traditional values ​​intends to "strengthen cultural exchanges on an equal basis," says one who directs, Vladimir Yakunin, President of Russian Railways and close to Vladimir Putin. "Clearly, today, we can not conceive of unilateral world." Fed on an example that of Russia: "We have in our country 190 nationalities and 80 different faiths cohabiting together, and the only way to achieve this is to let mingle our histories and traditions on an equal footing, without that one takes precedence over the other, "says the Russian leader.

A speech that collects a strong chord with young activists from the developing world, who want to invite to the table of developed countries. "The bipolar world is finished," said the businessman and political leader of India, Sam Pitroda at the last Youth Forum held in New Delhi in late March. "The American model based on consumption can not agree to the three billion poor people who have access to anything," he added. For the latter, which could contribute to the post of President of India, in 2013, "we must build a new world, a new model, based on connectivity."

Anecdotally, even idealistic, seen from France, young people reflect these forums, in fact, a fundamental shift, in parallel with the emergence of Brics, from which emerges a desire to make its voice heard on a global scale, for the fast-growing economies. And when one is surprised to see yet few young Europeans to participate are answered on the side of the Youth Time, that "the ultimate goal is obviously to attract more young Western entrepreneurs, to enhance dialogue and exchanges. "

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Cemented over the Internet and social networks, legends are built today at full speed. Especially in the "global village" of finance. Demonstrated experience in recent days by crossing Iksil Bruno, senior trader but anonymous until last Friday the bank JP Morgan in London.

The man remains discreet, understandably. Within days, he became the "whale of London", or "the Thames", or "white" – we do not know too much – or Voldemort, the terrible witch of the Harry Potter … The number of nicknames given to it becomes suspect. The story is told that then took a dramatic turn when it was revealed that the banker in question was French, a fact which would be enough to make a "trader crazy," Kerviel in a power nap.

This trader is part of the Chief Investment Office of JP Morgan in London. Mission: to cover the global credit risk of the bank. A bank, remember, which is one of the first in the world with some 2.3 trillion dollars in assets, including nearly 1 trillion of bank loans or bond companies.

Cover such a balance, that is to say smooth risk, entails putting a lot of money in the balance. And that's what the CIO of JP Morgan in London: its positions would reach $ 350 billion, according to the Wall Street Journal. A figure which should not be misunderstood. Within this volume, the positions that bet on the rise of a particular index are largely offset by positions that bet on a decline, leaving the final few tens of millions of dollars, still in danger Loss … or possibility of gain.

An aberration of market

Why the activity of this team of JP Morgan is she suddenly appeared in full light? Bruno Iksil would take very large positions on a particular index, a derivative that replicates the behavior of CDS (credit default swaps) of some 121 companies short term personal loans. Such large positions that its movements can only move the value of this product, regardless of the price of 121 CDSs that compose it. A market aberration which obviously was not without consequences on some hedge funds, put in losses by the orders of the influential CIO JP Morgan. It is in this context it seems that some seem to have wanted to settle accounts in the press intermediary.

Behind "the matter of the whale in London," we therefore call one of those pretty poker games including financial traders have the secret. JP Morgan, who has not the reputation of being a bank-casino chooses to treat it with discretion. She is content to know that the activities of its London office are intended to cover its loan portfolio, and that the positions taken are knowingly.

The story may therefore be short-lived. Even if it raises real questions about the functioning of finance today. The first key of course the lack of market transparency of derivatives products, and in particular credit derivatives, whose gross volume reached tens of billions of dollars worldwide. The second, current, examines the nature of transactions. When these volumes are involved, is it still just hedging strategy or can we not think that JP Morgan also plays some of his capital? Soon, this question is no longer just theoretical: under Volcker rule that will apply to U.S. banks that collect deposits, such as JP Morgan, will no longer have the right to make the proprietary trading .

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SunPartner, a start-up of Aix-en-Provence (Bouches-du-Rhone) specializes in solar energy, has signed a partnership with the Atomic Energy Commission (CEA) to develop and build a demonstrator of the second generation of photovoltaic power plant at low concentration. SunPartner has already shown with the development by its subsidiary Wysips a transparent film photovoltaics to recharge his mobile in the sun.

The project developed by its subsidiary Axiosun with CEA and one of its laboratories, the Institute Liten, specializing in new energy and nanotechnology, will compete with conventional photovoltaic market is now taken in a squeeze between fierce competition from China and declining subsidies in France and other European countries.

"The solar modules are not the optimal solution. Concentration yields lower costs by 20% to the cost of panels Chinese "and thus become competitive, says Ludovic Deblois, the founding president of SunPartner. Photovoltaic power plants developed by Axiosun make it possible to focus with concave mirrors up to 12 times the sun's rays, which reduces the cell size implemented for the same energy. In addition, advance Ludovic Deblois, these modules retain a high yield of about 19%, despite the increase in temperature due to the concentration, whereas with the standard modules, the yield decreases by 1 or 2% per degree additional.

Reduce costs

Axiosun is positioned in the segment of small and medium power (to drive a company, a village or small town) in area to strong sunlight.

He installed the first plant at low concentration in France in Saint-Cannat near Aix-en-Provence and two in Morocco. The issue of partnership with the CEA signed for three years with a budget of 2.2 million is to improve the technology. The objective is to achieve a cost per kWh up to 40% lower than with a central ground to conventional panels. One key is the development of a manufacturing process to local costs well below Chinese costs by investing ten times lower.

The project is part of the proposed City of energies, initiated earlier this year by CEA Cadarache, near Aix-en-Provence. This platform of several dozen hectares is home to companies that CEA helps innovate and where demonstrators can be built. Axiosun going to make a pilot. Eight other partnerships have been forged by the CEA for a total of 26 million euros, including a solar desalination unit developed with Veolia.

"Our bet is that innovation makes it possible to reduce costs at all stages of production, to make solar competitive," says Pierre Joubert, head of the antenna to the direction of technological research, CEA Cadarache. "On the technology concentration, there is no viable competitors. Our goal is to develop a sector in France. "

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This time it's done. Philips has withdrawn its television division. Finally. Because it took nearly a year to Franz Van Houten, CEO of Philips, to complete this operation. It is also the patron of the first strategic decision, arrived at the head of the Dutch company just last year.

Over the last two years, the division of Philips TVs has accumulated just over 500 billion euros of losses – including the costs of disengagement from Philips. Now, the new entity should be able to go on a sounder footing. "Philips has made its teams, its innovations, expertise and POS … its competitiveness and mastery of the supply chain," says Marie-Veronique Cazeaux, CEO of TP Vision France. This distribution corresponds well to the state of the TV market. The traditional players are innovative, but no longer able to cope with Chinese manufacturers competitive. Not to mention the Korean Samsung and LG, which now occupy the top two spots on the podium.

Recurrent source of losses

"POS is a registered almost unknown in France electronic check payday advance. Yet they are world number three, "says Marie-Veronique Cazeaux. The group of Hong Kong, which is also a world leader for PC monitors, manufactures televisions under the brand AOC label and distributor. It will add TVs Vision Lab, exclusively sold under the Philips brand.

For Dutch, the operation should allow it to disengage from a recurring source of losses, while remaining present to the general public about the TV market. Market oh so iconic. "We have an excellent brand image, says Marie-Veronique Cazeaux. Now we move into a replacement market. There are six or seven years, Philips held 25% market share and it is these customers who return to shop. "

The question is whether the effect will be faithful enough to come back into favor as Philips. In 2011, he held less than 7-10% of the French market, against 25% for Samsung.

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Incident at Free Mobile: late Tuesday afternoon, a number of Free Mobile subscribers showed no longer have network access. Result, can not send SMS or make a call. The situation seemed to gradually return to normal around 19:30. A similar incident had first touched the network on March 2.

"It appears that an incident on a Free network equipment has severely disrupted communications with their customers. Because of congestion, a small portion of calls made by Orange customers was affected but the situation quickly returned to normal for Orange customers, "said a spokesman of Orange, stating that" the contract of Homelessness is not involved cash advance america. "

For several weeks, specialized sites mention problems of interoperability between 18h and 20h, preventing subscribers Free to join their correspondents. On 01net, the professionals argue the thesis of a "saturation of interconnection links between the network and the Orange Free".

Iliad, parent company of Free, threatened to sue "anyone denigrating the reality of its coverage or its investments." Last week, it recognized with the specialized site PCINpact that the problem existed, saying it depended on the regions. Free, however, ensure that "all of the added capacity."

 

This is an open secret, Greece will not reimburse at best a small part of his debts. In practice, three-way open to it. Either to agree with its private creditors who accept a "voluntary extinction" of their assets or negotiate a "partial default" in accordance with its European partners. Or, finally, walk out, like Argentina in 2001, called a "disorderly default."

On the merits, all three perspectives are not so different as they seem at first glance. Buenos Aires was finally concluded in 2005, a restructuring agreement with its creditors, who agreed to lose 65% of their assets. A huge sacrifice, but less than the "palm" of 73% currently proposed to the creditors of Athens, according to Jean Lemierre encryption, one of their main representatives in the discussions.

It comes out of the ambiguity that his injury

Moreover, the "voluntary" nature of the PSI, the Private Sector Involvement, where creditors agree to commit hara-kiri is a total hypocrisy. It's like "confessions during the Spanish Inquisition," recently remarked President of Commerzbank Martin Blessing. It expresses a widespread feeling among his colleagues and much more in the Greek pension funds. For them, three quarters of the savings are invested in securities of their state, the loss will be huge, whereas exposure to Greece is only 1% of GDP in the euro area for international investors (according the BIS figures).

But, as everyone knows, no one leaves ambiguity as its detriment. Breaking fiction would volunteer to accept a "partial default". However, as repeatedly stated since the summer of 2011 Jean-Claude Trichet and Mario Draghi, his successor as head of the ECB, the latter would be forced overnight to refuse the Greek securities pledged loans that it offers to banks Hellenic. It would be to bankrupt the entire banking system of Greece, with a further loss of 173 billion euros for the ECB, obliged to make a cross on the Greek paper it holds (retired or in outright purchases ).

As for the third option, a "disorderly failure", the international consequences would be far more dramatic than in the case of Argentina. The shock wave would destabilize the rest of Europe. The IIF, the bank lobby, estimated at 1,000 billion euros losses for banks because of their financial ramifications cross. They consider to be a Gordian knot impossible to untie except slicing. Which would amount to a bank crash cause at least as serious as the crisis following the collapse of Lehman Brothers in 2008.

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"It will take place, and this is probably a matter of months, the issue of financing of our welfare. It will probably include the participation of imports. "In two sentences, the head of state made it clear that social VAT probably figure prominently in its program during the next presidential campaign. The mechanism is to fund Social Security by a consumption tax, so among other products imported from countries practicing "social dumping". In exchange, the contributions that affect the cost of labor is lightened, in order to gain competitiveness – a leitmotif of the presidential intervention on Thursday night. Social VAT is not exactly a topic that shares the political class on the line right to left as usual low fee payday loans.Manuel Valls, only the PS, is favorable, as the centrist Jean Arthuis or UMP Jean-Francois Cope and Valérie Pécresse, Xavier Bertrand and others in the majority are reluctant, fearing an inflationary effect, so a loss of purchasing power of households.

The president has however ruled out any attempt at protectionism to fight against offshoring. Establish tariffs would "make sense", he decided, in a clear allusion to the "de-globalization" praised by Arnaud Montebourg.

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Wall Street has been won by the pessimism Monday. The Dow Jones ended down sharply from 2.13% to 11.397 points, after rising 4.9% last week. Nasdaq in turn yields 1.98% to 2614.92 points and the S & P 500, wider, lost 1.94% to 1200.86 points.

The New York indexes, which were due up, opened in the red, sealed by the doubts that have entered the European markets at mid-session. The German Minister of Economics Wolfgang Schäuble has indeed warned that the EU summit to be held in Brussels Sunday will not lead to a definitive solution to the debt crisis.

This weekend, the European central bankers have expressed their determination to end the debt crisis at the G20 Finance in Paris. The Europeans have promised to respond "comprehensive and lasting peace" to the debt crisis."Advanced countries will adopt, taking into account their respective national circumstances, policies to strengthen the confidence and support growth and implement measures clear, credible and targeted to rebalance public finances" stressed the finance ministers in their statement. Specifically, they promise to make a decision at the European Summit of October 23, described as "decisive" on Saturday by Minister of Economy Baroin. Attempted to reassure the ECB President Jean-Claude Trichet said the euro was "not threatened", but called on all Europeans to be "extra vigilant" with regard to public finances.

In the same tone, Christine Lagarde, has also shown confidence in the capabilities International Monetary Fund (IMF) to come and play firefighters, as appropriate, to countries in difficulty.In Europe a microphone, the director of the institution determined that its resources were "appropriate" and "in line", sweeping the wish of several European countries to strengthen its capacity in anticipation of a bankruptcy of Athens.

Barack Obama and his savings plan

Across the Atlantic, investors also await details of the savings plan of Barack Obama. Last Friday, the country's budget deficit reached 8.7% of GDP in 2010-2011, 0.3 points less than in the previous year, according to the Treasury. Knowing that in absolute terms, the fiscal gap widened slightly to 0.4% from fiscal 2010 to rise above 1.299 trillion dollars, making it the second largest deficit the country's history.

In terms of indicators, the United States, industrial activity in the region of New York came out down $ 8 no fax pay day loan.48 in October.A contraction is stronger than expected. Industrial production has in turn increased by 0.2%, as expected.

On the currency side, the euro lost ground against the dollar on Monday after briefly climbed above $ 1.39 for the first time in a month. To 22 hours (French time), the European currency is worth 1.3744 dollars against 1.3881 dollars on Friday night.

For their part, oil prices are down. In New York, a barrel of light crude lost 42 cents to 86.38 dollars.

Values ​​of the day

A salvo of results announcements in the banking and technology is expected this week.

On Monday, banking stocks are tested: JPMorgan Chase 2.67% to 31.04 loose dollars, Bank of America 2.42% to 6.04 dollars. Wells Fargo fall of 8.44% to 24.42 dollars after reporting a decrease of 4% of its turnover. Morgan Stanley 0.26% to nibble 15.26 dollars.

Citigroup lost 1.65% to 27.93 dollars despite the publication of a net profit up 74% in the third quarter, above expectations.

As for technology stocks, Apple lost 0.48% to 419.99 dollars. The company announced the Apple selling 4 million copies of its iPhone 4S. The Canadian Research in Motion, maker of the Blackberry, falling 6.55% to 22.40 dollars.

Kinder Morgan (4.83% to 28.19 dollars): The U.S. company to transport energy products announced Sunday it would buy its rival El Paso (24.81 to 24.45 dollars) to $ 21 billion , about 38 billion with debt, and thus form the largest pipeline network in the United States.Based in Houston, Texas (south), the new company will have an enterprise value of $ 94 billion, Kinder Morgan said in a statement.

Statoil (1.73% to 24.64 dollars): The Norwegian oil company announced Monday the acquisition of the American Brigham Exploration Company (21.05% to 36.75 dollars) to $ 4.7 billion ( 3.4 billion euros), which will allow it to grow stronger in non-conventional hydrocarbons in the United States. This acquisition gives Statoil access to deposits of oil shale Bakken and Three Forks in the Williston Basin in the states of North Dakota and Montana.

British Petroleum (0.73% to 40.17 dollars) Columbiaa The oil company said Monday that he would receive a payment of $ 4 billion in cash from the U.S. Anadarko as co-payments related to the disaster of the Gulf of Mexico.