International Business News

The Tokyo Stock Exchange ended down 0.82% Thursday, erasing gains from yesterday in the wake of Wall Street, investors fearing the results of a major auction of Spanish debt provided in the Day.

The Nikkei lost 78.88 points to 9,588.38 points and the Topix broader, yielded 5.14 points (0.63%) to 814.13 points.

At the opening, investors reacted to the downturn on Wall Street by making clearances. But following the publication of figures in the trade balance of Japan, a weaker yen on the foreign exchange market helped limit losses.

The downturn in the Japanese currency has allowed exporters including Toyota and Nissan to earn 0.9% and 0.24%.

Japanese exports rose in March at an annual rate for the first time in six months, mainly due to inflows into the United States but the high price of its crude imports weighs on its trade balance, back into the red.

The new lawyer's former trader Jerome Kerviel, who was sentenced in 2010 to five years in prison for three farm loss of 4.9 billion suffered by the bank Société Générale ; eral in 2008, renewed the assault of his former company.

David Koubbi me, who just succeeded Olivier Metzner to defend the prisoner for his appeal hearing in June, wrote to the chairmen of the Assembly Finance e and Senate to be surprised that SocGen could receive a tax deduction of nearly 1.7 billion euros in compensation from the e episode.

In his letter obtained by Reuters has learned me Koubbi asks Jérôme Cahuzac Philippe Marini and the convening of a commission on this episode. This request will remain a dead letter at least for now, the Parliament sitting over pending legislative elections in June

But it is a way for Jerome Kerviel, also condemned in first instance to repay 4.9 billion euros, to start the assault on his former company , it has always accused of being informed of their risk practices and turning a blind eye as they pertained.

Koubbi is me in his letter that a tax deduction for exceptional loss is legally possible that if there were no obvious deficiency in the controls. Now this is the case, since the Banking Commission fined 4 million euros to SocGen in 2008 for this failure.

"It seems to me that the allocation of that amount in favor of Societe Generale goes against the established case law applicable to the deduction tax (…) I therefore ask you to convene a committee to inform our citizens, "the lawyer wrote in his letters.

Convicted of embezzlement, forgery and using false and fraudulent intrusion into a system of data processing, Jerome Kerviel, who was also sentenced to ; repay the loss, is currently free and still has not paid, the appeal is suspensive. 

The trial court ruled that he had deliberately violated his professional engagements and hidden the reality of its position in its hierarchy.

The young man admitted pronouncements risk of dizzy from 2005 to 2008 on European equity market indices, reaching nearly 50 billion euros, and camouflaged by other reversals of orders fictitious market, expected to cover the risk.

Unsettled after the announcement of their discovery by the bank, in full rout of financial markets, these positions, which were once largely the beneficiaries, ultimately caused a net loss of 4.9 billion euros.

The Spanish government Friday unveiled a package of measures to fight against tax evasion, as the country seeks to achieve its fiscal targets and avoid the need for economic aid external.

According to several independent economists, the economy in Spain represent almost a fifth of gross domestic product (GDP), many Spaniards at work using black and pre ; ferring cash payments.

The government proposes to ban cash payments for amounts exceeding € 2,500 and require taxpayers to report assets held by them abroad.

Violators would face fines. 

According to Cristobal Montoro, Spanish Minister of the Treasury, these measures will enable the government to increase its revenues, though he declined to quantify the expected amount.

Madrid announced on March 30 to drastic budget cuts to achieve 27 billion euros in savings and convince markets that the country is able to reduce its deficit and avoid seeking international assistance.

The limit on cash payments will not apply to individuals who are not habitually resident in Spain or to tourist spending.

"This is to encourage tourists who bring foreign currency in Spain and want to spend in Spain," explained Cristobal Montoro. 

The tourism industry represents nearly 10% of Spanish GDP and remains one of the few sectors still able to sustain an economy as moribund.

As to measures affecting property held abroad, they will target the bank accounts, life insurance policies and actions. A fine of at least 10,000 euros will hit the undeclared goods, warned the government.

European shares declines sharply at mid-session Tuesday, after a long weekend by Easter, the statistical disappointing U.S. employment numbers in March and in Halftone China's foreign trade darkening global economic outlook at the time opens in the U.S., the earnings season.

In Paris, shortly before 13h, the CAC 40 lost 1.43% (47.37 points) to 3,272.44 points. In Frankfurt the Dax gave 1.06% and London, the FTSE fell by 0.95%. Pan-European Eurostoxx 50 index gave up 1.31%.

The Euro Stoxx 50 index of volatility, the main barometer of investor nervousness in Europe jumped 12% to its highest in five weeks.

The sectors most dependent on exports to emerging markets, including automotive and mining, are among the largest declines under the impact of slower growth in Chinese imports. Peugeot lost 3.7%, 3.6% Renault.

Wall Street is expected to rebound in the opening in the light of index futures in New York advancing 0.1% to 0.35%.

European shares ended Wednesday at their lowest closing levels for three weeks, concerns about U.S. growth and the fiscal situation of Spain showing the above.

In Paris the CAC 40 lost 1.14% to close at 3430.15 points, just below its 50-day moving average and its lowest in March 23.

The London Stock Exchange yielded 1.03% and 1.13% in Frankfurt. The benchmark index of the Madrid Stock Exchange dropped 1.96%.

Of the European indices, the Eurostoxx 50 was down 1.13% to 2,496.68 points – in its 50-day moving average – and Eurofirst 300 lost 1.02% to 1,072.48 points – just above his own.

"The markets were down with the bank, especially Spanish because of sluggish economic outlook in Spain, and durable goods orders subdued in the U.S.," said Alexandre Le Drogoff, manager special ; cialist of technical analysis in Talence Management.

He believes that the next support is at 3396 points for the CAC 40 or the "gap" opened on March 8, then from 3350 to 3360 points, its lowest points in February and March. 

As for values, Total (-1.4%) again weighed on the CAC 40, as before, following the gas leak on one of its deposits in the North Sea.

Bank stocks were cyclical and the most affected by the current sales, including Spanish banks Banco Popular, which lost 3.31% and Bankia which lost 3.61%.

Oil prices fell back, Brent losing 1.3% to 123.92 dollars a barrel, after rising more than expected U.S. inventories last week.

Veolia Environment announced Friday departures of three members of its management team the day after proposing not to renew the appointments of two members of its board of directors deemed close former CEO Proglio.

This series of ads comes as more directors of Veolia, which Proglio, currently head of EDF, has, according to sources familiar with the matter, considered asking for the resignation of the current CEO Antoine Frérot at a council held in late February.

Reputedly close to Proglio, the Chief Executive Denis Gasquet, Veolia leaves the group with immediate effect. Also Director of Operations, he was responsible for overseeing the implementation of cost reductions.

Olivier Orsini, who held the position of Executive Vice President and Secretary General, and Jean-Pierre Frémont, the executive vice president of public authorities and business, also leaving the Executive Committee of Veolia, and at the same time abandoning their duties within the group.

These changes were decided by Antoine Frérot to "accelerate the implementation of the strategic plan approved by the board," said Veolia in a statement.

Sylvain Boucher also joined the executive committee of which he was previously secretary. 

ACCELERATING THE STRATEGIC PLAN

The executive committee now includes, besides the CEO, seven against nine previously. Jérôme Gallot, Jean-Michel Herrewyn, Franck Lacroix, Jean-Marie Lambert, Jerome Le Conte and Pierre-Francois Riolacci to retain their seats.

In stock at 16h58, the title wins 5.07% to 12.755 euros, signing the largest increase in the CAC 40 index, which rose by 0.4% at the same time.

"The acceleration of the strategic plan and tighter around Mr. Frérot teams were well received," said a trader based in Paris.

Another market operator, also based in Paris, points out that these departures had been widely expected by the market, believing that the benefits likely to die as ; knotting of short positions as well as upward revisions of recommendations. 

"The action moves as people cheer the departure of Denis Gasquet: it was at the head of the Environmental Services division during his disastrous performance, and more recently he has overseen restructuring, "he adds.

The strategic plan of Veolia plans to refocus the group on water, waste and energy services and reduce costs of 420 million euros by in 2015.

Veolia also planned to produce five billion euros in sales in 2012-2013 and reduce net debt to below 12 billion at end 2013.

The country has avoided bankruptcy thanks to an agreement signed Friday with the creditors.

Greece has avoided bankruptcy by obtaining an agreement Friday to its private creditors to participate in the biggest operation of debt reduction in history and a green light from its partners in the euro area to help pay her 130 billion euros.

This announcement sparked a wave of enthusiastic reactions within the euro area, stuck for over two years in the debt crisis.

Its new president, recently renewed, Herman Van Rompuy, said that "turning the crisis is reached." "We are heading for calmer seas," he said.

French President Nicolas Sarkozy has held that "the page of the financial crisis is beginning to turn" while German Finance Minister Wolfgang Schäuble has wanted more cautious. "We are not out of the woods, but we made a big important step," he told reporters.

Direct consequence: the International Monetary Fund announced it will participate in the new financing plan promised to Greece. After consulting the Member States of its board Friday, IMF Executive Director, Christine Lagarde, said the proposed amount was 28 billion euros to be paid over four years, more than 23 billion envisaged up 'here.

After nine months of tough negotiations, Athens Friday finally got the guarantee to erase at least 100 billion euros of debt to private.

The operation – the largest of its kind ever made – should help significantly reduce the national debt which is sinking into a deep recession, GDP fell by 7.5% yoy in the fourth quarter , according to official figures released Friday also.

In 2020, according to official projections, the Greek sovereign debt should represent more than 120.5% of GDP against over 160% today, a rate considered tolerable by the creditors, although it remains very high. 

Finally, Greece has secured the participation of creditors representing 95.7% of debt held by the private sector, which amounts to 206 billion euros of a total of over 350 billion.

To achieve such a result, the government had to resort to trigger clauses requiring recalcitrant creditors to go along with the offer.

This decision led Fitch to lower the rating of Greece and to place the country in "partial default" after the announcement of the results of the debt swap. Note the country should be raised once the deal is completed.

It also prompted the ISDA, the professional organization of insurance against credit risk (CDS, credit default swaps), to determine unanimously that it was a "credit event "and that investors could be repaid insured.

These assurances can be triggered when a borrower terminates the contract which governs the loan. ISDA has estimated that the use of "collective action clauses" designed to force the recalcitrant creditors, was that debt restructuring was not "voluntary".

Specifically, the exchange of securities to be held Monday for the obligations under Greek law. Security holders are not subject to Greek law have more time, until March 23, 0800 GMT, to make over 7 billion in bonds that are still missing the call.

The Motor Show of Geneva, which will open to the public Thursday, will be dominated by the alliance between PSA Peugeot Citroen and General Motors, the last wedding date in an industry where economies of cost and scale have become the top priority.

The question of how specific short-term reconciliation between the PSA and GM, while the strategic partnership announced Wednesday plans for 2016 the full effect of synergies and the first models of vehicles common, will be on everyone's mind at the first major European motor show of the year.

"This industrial agreement is very revealing of current changes in the automobile sector," said Flavien Neuvy, Director of the Cetelem automobile. "The manufacturers have no choice and they know they can not do everything together."

"However, to achieve such an alliance, it takes time, past experience has shown that the risk of failure is not zero," he adds. "But if it works, it is a promising project."

The last major events of the profession were all marked by the quest for synergy. The 2009 Frankfurt Motor Show had devoted the rapprochement between Fiat and Chrysler, Frankfurt 2011 was marked by the announcement of new cooperation between Renault-Nissan and Daimler. As for Geneva 2010, he remained famous for including the formalization of the collapse of talks between Mitsubishi and PSA, with which the French group was then trying to marry.

ALWAYS OFFER A VARIED DESPITE THE POOLING

In an industry marked by increased global competition, the carmaker can no longer rely only on their internal resources to develop new products both at reasonable cost and in die lais fast enough to track changes in consumer tastes and tougher safety and environmental standards.

But this sharing does not lead to a standardization provided cars because the objective is to share components and architectures invisible from the outside. 

"The Peugeot and Citroen have never shared many components and platforms industrially today, yet they have never had their own identity as distinct," observes Translation ; ois Roudier, spokesman for the Committee of French Automobile Manufacturers (CCFA).

Geneva will be, like any self-respecting lounge, a new ball with some highly anticipated world premieres such as the Renault Zoé, who spearheaded the bet electrical manufacturer.

On the stand Dacia brand Renault's low cost, we discover the minivan Lodgy including the launch of construction in Morocco has been surrounded by controversy on the theme of "Made in France ", a theme central to the presidential campaign. 

Side of the PSA, Citroen C4 unveil its compact 4×4 Aircross based on the Mitsubishi ASX, while Peugeot present the 208 through which the lion brand hopes to extend a success story started in this segment in the 1980s with the 205.

The competition will not be outdone. Another icon, the Volkswagen Golf, GTI will appear in his livery cab, and Audi, the German premium brand group, will present its new A3. Fiat's famous 500 curves take with the L variant, Italian replica of the BMW Mini Countryman.

Builders rely on these innovations to support expected sales down 3% to 4% this year in Europe, making the region one of the world where the automotive market will contract in 2012.

A motor show would not totally successful without some "supercars". Visitors can admire the 6 Series Coupe BMW Grand, the futuristic Nuccio signed by the famous coachbuilder Bertone or the most powerful Ferrari ever made, with the F12 Berlinetta not less than 729 horsepower.

After two press days, Tuesday and Wednesday, the Geneva Motor Show will open to the public from March 8 to 18.

The group of transportation and logistics Dentressangle Wednesday announced financial results increased in 2011 but noted that economic conditions had deteriorated in late 2011.

The company saw its turnover increase by 5.6% at constant scope and exchange, to 3.576 billion euros. The gross operating surplus (EBITDA) increased 17% to 130.4 million euros while net income rose from 57.2 million to 63.3 million.

"Dentressangle has seen since the end of 2011 signs of slowing economy and observed high volatility of demand for its customers early this year , "the group noted in a statement.

The company, which does not give forecasts for 2012, will offer its shareholders a dividend of 1.25 euro per share for fiscal 2011, against 1.10 euros a year before.

Between 200 and 300 steelworkers at ArcelorMittal Florange were installed at the outlet from which the finished products of the factory. At the same time opens in La Plaine-Saint-Denis, the French headquarters of ArcelorMittal, a central works council on the future of the site. The ArcelorMittal steel plant in Moselle Florange

Between 200 and 300 steelworkers ArcelorMittal plant Florange (Moselle) Thursday blocked the release of shipments of the site to try to get the direction of restarting blast furnaces shut down since October, said a journalist of AFP. The protesters were installed at the outlet from which the finished products factory, mainly sheet metal coils for the automotive industry. Unions fear the "programmed death" of this site, which employs 5,000 employees, after the announcement of management, last week, the blast furnaces would restart not only in the second quarter. The No. 1 global steel industry maintains that it is just a temporary standby necessary due to insufficient demand.

"We decided to hit Mittal where it hurts: the wallet," the official said CFDT Edward Martin, announcing "a block of unlimited duration." "We will build a war chest, loot the fruit of our labor," he said. At the same time opened in La Plaine-Saint-Denis, the French headquarters of ArcelorMittal, a central works council on the future of Florange site. While its two blast furnaces are dormant for several months, the hot rolling mill train Florange always produces some 200,000 tonnes per month of steel for automotive technology. The site is stocked with steel slabs produced by the ArcelorMittal plant in Dunkirk.  

With this deadlock, the union hopes disrupt production in the automotive industry, has seen one of them, "just-works". ArcelorMittal Florange delivers its finished products manufacturers Peugeot, Volkswagen, Mercedes, Audi and Toyota. This action "punch" is the first conducted by the Inter CGT / CFDT / FO / CFE-CGC, after the occupation of management Monday. The Inter promised she would be "the nightmare of government," until May 6, when the second round of the presidential election. ArcelorMittal has recently decided the final closure of blast furnaces in Liege (Belgium) and Madrid, the other (two in Florange, Lorraine, one in Germany, two in Poland, two in Romania and Czech Republic) were officially launched pending before the upturn in orders.

On Tuesday, President-candidate Nicolas Sarkozy said: "We will make sure that (the Florange) reopens." FO federation of metallurgy has arrested Wednesday group management and government, demanding written commitments on the future of the plant Moselle.