International Business News

According to Airbus, the final WTO report confirms massive subsidies granted to Boeing. The U.S., by contrast, talk about a great victory for the American aircraft manufacturer in this case. Airbus delivered 534 aircraft in 2011, a record.

The European aircraft manufacturer Airbus said Monday that the Appellate Body of the World Trade Organization (WTO) confirmed and extended the same sentence on subsidies granted to U.S. rival Boeing. "The report of the Appellate Body confirms and expands the scope of the conviction by the WTO on massive subsidies granted to Boeing illegal," he said in a statement Airbus (EADS), which still considers its commercial harm to $ 45 billion.

Airbus issued this statement even before the official announcement of the decision of the Appellate Body of the WTO. In this case, the judges of the WTO had estimated March 31, 2011 at trial that some of these U.S. aid constituted subsidies inconsistent with global trade rules. The judges then had amounted to "at least $ 5.3 billion" for the period 1989-2006.

"This report confirms the existence of illegal subsidies paid by the U.S. to Boeing," said the manufacturer according to which grants "a few billion dollars resulting from today's decision" is in addition to " at least $ 5.3 billion "subsidy initially estimated. Airbus estimates that the Appellate Body rejected "almost 90% points of the appeal filed by the U.S. against the earlier findings of the WTO and validates all of the call of the European Union ".

The U.S. response was not long in coming. According to a statement the U.S., the WTO ruled that the aircraft manufacturer Boeing had received four to six times less public subsidy than its European rival Airbus. The U.S. Trade Representative Ron Kirk exterior even boasts a "great victory" in the WTO, stating that "comparable figures", the Geneva organization had identified only "three to four billion dollars" of illegal subsidies of American States United, against $ 18 billion in illegal subsidies from the European Union.

According to the U.S., EU subsidies have cost the equivalent of 342 aircraft orders to Boeing, while conversely the U.S. subsidies have lost the equivalent than "a little over 100 "aircraft orders to Airbus.

"The view of the United States has prevailed," welcomed Mr. Kirk. "It is now clear that European subsidies to Airbus are much more important – and it amounts in multiples – and caused much distortion that may have done everything the United States for Boeing," has he added. "This decision is a victory for the great industrial and American workers," said Mr. Kirk.

However, Washington has also, communicated before the WTO itself does not make public its judgment on appeal. This is expected later Monday.

The CEO of EADS Louis Welsh, in response to criticism in Germany, said Thursday the project of his designated successor Thomas Enders to domicile more activities of the group in Toulouse , where the headquarters of Airbus.

In presenting the annual results of the group, Louis Welsh confirmed that Peter Hintze, coordinator of aeronautics and space within the German government, had written to Thomas Enders EADS domiciled claim the contrary more activities in Germany.

"This letter is certainly not appropriate and certainly not in accordance with the governance of a listed company," said Louis Welsh.

"With Thomas Enders and the executive committee, we all work without a flag on the table. EADS had also gone through a severe storm in 2006, this time due to the delay of the A380 program.

EADS, the results of 2011 have exceeded expectations, plans for a 2012 EBIT before nonrecurring items above 2.5 billion euros after have already increased last year to 1.8 billion.

"Everything is now ready for EADS took off towards increasing profitability," the group said in a statement, adding that the performance of the EBIT published depend in the future advancement of its complex programs.

EADS shares was sold for 10.78% to 29.74 euros after advertising, finishing well ahead of increases in the CAC 40. 

COMPLEXITY OF PROGRAM

A350

Reflecting a newfound confidence, EADS is also made publicly, a rare thing, the European Commission concerning the management of emissions of greenhouse gases. The group, in retaliation, China could threaten to cancel aircraft orders, with the risk of the industry in a trade war.

The first European aerospace and defense, which also emphasized macroeconomic uncertainty, highlighted the complexity of the program's long-haul A350 expected in the first half of 2014 , noting that the timetable "tightens".

The program was originally a provision of € 200 million, announced in November, but whose impact has been erased by the judgment of the A340.

Airbus is on the other hand increase the production of its A330 to 11 aircraft per month from the second quarter of 2014 to meet demand. 

When the debt crisis threatens defense budgets in Europe, Louis Welsh was also concerned about the progress of discussions with governments on the future of programs e equipment. "It is essential that these discussions, particularly in Germany, lead immediately to a favorable outcome for both parties," he said.

For 2012, EADS expects increased above 6% of its turnover, after rising 7% to 49.13 billion euros last year, sales of Airbus and Eurocopter more than offset the slight decline recorded in the cluster space division Astrium and Defence and Security Cassidian.

EADS, which was up 87% of its annual net profit to 1.033 billion euros, proposed dividend per share doubled to 0.45 euro for 2011, against 0.22 euros for 2010 . 

Analysts polled by Inquiry Financial Europe on average expected for 2011 a turnover of 48.14 billion, a net profit of 687 million and an EBIT issued 1,312,000, which stood at 1,696 million, up 38%.

Airbus had said in mid-January anticipate 600-650 aircraft gross orders in 2012, after a record 1,608 in 2011, and 570 deliveries – with about 30 super-jumbo A380 – against 534 in 2011 .

With an increase of 58% of its orders, EADS posted late 2011 a record backlog of 541 billion euros.

EADS could also indirectly benefit this year of export contracts for the Rafale from Dassault Aviation, which holds 46% stake. 

India announced in late January opening of exclusive negotiations for the purchase of 126 fighter jets, a contract valued at some 11 billion euros, while the prospect of an order for 60 units from the United Arab Emirates has recently resurfaced, with a possible interest in turn of neighbors Qatar and Kuwait.

At just over 24 hours of the deadline, creditors who have declared themselves in favor of the plan of exchange of obligations still account for only 39.3% of the country's debt. Greece in the storm

Private creditors had already decided in favor of the exchange of Greek debt does currently represent 39.3%, or 81 billion euros, the amount covered by this operation, said Wednesday the committee private creditors in a communiqué.Cependant, the 50% threshold, from which Greece can possibly forcing some creditors to participate, is approaching.

The deadline to tender its shares to the exchange is set at 9:00 p.m. Thursday (2000 GMT). The exchange for 206 billion euros of debt held by private creditors (banks, investment funds, insurers, etc.). In total, the Greek debt than 350 billion euros.  

Greece has already indicated that it would not proceed with the exchange if the turnout did not reach at least 75% of this part of the Greek debt held by private creditors. She also announced that if this threshold was disappointing, it could compel, through collective action clauses (CAC), all private creditors to submit to the exchange.

To date, no non-Greek financial institution holding a significant amount of Greek debt has not officially spoken out against the exchange. Several major banks, insurers and investment funds have not yet publicly announced their decision.

The committee, meeting under the auspices of the Institute of International Finance (IIF), which represents major global financial institutions, in a statement cites 30 banks, insurers and investment funds that have made public their support for the plan. This is mainly European companies, supplemented by the management company American Greylock Capital Management and the U.S. insurer Metlife.

Moreover, contacted by AFP, the largest regional German bank, Landesbank Baden-Württemberg (LBBW) said it would participate in the exchange. The approximately one billion euros of Greek bonds it holds are now housed in the bad bank established with the support of the German state, called Erste Abwicklungsanstalt (EAA).

Another rallying not taken into account by the press, that of German reinsurer Munich Re, said Wednesday that the agency Dow Jones, he would take part in the operation. The gross value of its securities amounted to 1.53 billion euros in late September.  

First holder of Greek debt outside Greece, the German bank Hypo Real Estate (HRE), has not spoken publicly since the agreement on the new conditions of the plan, in Brussels on February 21, but had previously expressed its intention to contribute. The bad bank of HRE, called FMS, held at the end of the first half of 2011, about 8.1 billion euros of Greek debt.

Doubts about the effectiveness of the plan of aid to Greece and rising oil prices weighed on the market

actions on Monday and promoted the decline of the safe havens, but the relative strength of Wall Street and rising values ​​

Oil and defensive allowed European markets to limit their losses late in the session.

The pan-European FTSEurofirst 300 index closed lower by 0.31% to 1,073.81 points but well above its low of the day.

In Paris the CAC 40 dropped 0.74% to 3441.45. Among the other major European markets, London has sold 0.33%, Frankfurt

0.22% and 1.09% Milan.

Before German lawmakers met to discuss aid to Athens, Chancellor Angela Merkel said that the effectiveness of

plan reached last week was not 100% guaranteed. The Bundestag, however, adopted the plan of aid to Greece.

Doubts about the evolution of the debt crisis have encouraged profit-taking, including penalizing banking stocks.

The Stoxx sector index was down 1.42%, Societe Generale and UniCredit loser respectively 2.95% and 2.31%.

Meanwhile, the energy sector rose by 0.3% and that of food and drinks from 0.36%.

Management companies in France are beginning to substitute for banks and lending almost "live" business (corporate) facing the credit crunch bank , says Antoine Flamarion, president of Tikehau Capital, Credit Specialist.

Since the collapse of Lehman Brothers in 2008, and the willingness of regulators to strengthen prudential regulations that require a high level of capital to risk, banks, anxious to ease further their balance sheets, have significantly tightened their credit policies. 

"Banks are not lending, it is fine to have find lenders elsewhere," said Antoine Flamarion in an interview with Reuters, adding that Tikehau has funded a clinical enterprise private, Vitalia, belonging to private equity fund Blackstone.

Since 2008, in a highly regulated, financial corporations other than banks can finance companies.

Antoine said that Flamarion Tikehau had essentially mounted operations of this type in the world of LBO (Leveraged buyout or acquisition with debt leverage) and real estate, while broadening the spectrum to finance activities in dollars that banks no longer provide. 

"This is where we think we have the best risk / return ratio, that is where we have more room."

"Since we do not have unlimited resources, for us the question is always when at work 25 to 35 million euros, is to put it on the assets re -paid workers to Euribor plus 700, 800, 1,000, 1,200 basis points, "he said.

BANK FINANCING CERTAIN drop

The three-month Euribor, which is the reference to credit operations at variable rates in the eurozone, was just over 1% (1.036%) Friday .

"For now, we have tended to concentrate on issues and topics LBO estate," said Antoine Flamarion. 

"It was an operation at the end of 2011 real estate financing (…) We refinanced bonds estate of a foreign structure that de French assets held. Fifteen million matured. We kept the existing contract obligations and we just changed the rate. It was lent to 15%, "he said

. Tikehau also participated in financing activities such as shipping or aviation in need of dollars and that French banks do not finance more

. "There was done a little differently, we did not take the debt but we have invested capital with a family that owns the tankers, "he said

.

"The banks are out a lot of business funding and therefore we see a lot of asset classes in finance," he said. 

Tikehau Capital manages € 800 million, including $ 250 million deal with the tradeable public debt (corporate bonds) on the credit market and 550 million euros for private debt e (private debt) in the form of mezzanine funds and special situation funds.

DREAMS OF THE DEBT

"In 550 million, is made of primary and secondary. The primary is Blackstone. In the secondary market, that we sometimes buy distressed debt," he adds .

Antoine Flamarion intends to develop the private debt activity can represent, for LBO France, a market of 5.0 billion euros.

"Normally players as we are of secondary we buy ready-made products, but we will increasingly be the primary."

"Potentially, this is a big market. For example, the Company generally sells its entire portfolio of loans to real estate professionals. It means that some of these professionals who used to borrow from the SocGen will go and borrow elsewhere so we think a number of professions, real estate and LBO on it require substitutions to banks, "he said

. Insurers will have to play an important role in this area ..

……. According to him, disintermediation is expected to increase in Europe. In other words, like what is happening for a long time in the U.S., companies are going to look more to the credit market as far 80% of their funding came from banks.

Antoine Flamarion cites the example of Blackstone, best known for its private equity activity but an activity that "private debt" provided by its subsidiary GSO manages, according to the website of Blackstone, near of $ 44 billion on nearly 180 billion in total managed by the group.

"Today, everyone dreams of making the debt. As private equity can no longer raise money, all private equity funds begin to make the debt," said the head of Tikehau.

A Greek on the bankruptcy of the two countries would prefer to austerity. A fault on the entire Greek debt may however have dramatic consequences for the population. Unless you are organized within the framework of European solidarity. A poster of German Chancellor Angela Merkel and the IMF director Christine Lagarde pinned to the Greek Parliament during a protest against austerity in Athens, February 12, 2012.

According to the government, the Greek parliament chose Sunday to accept the austerity imposed by its creditors in order to avoid bankruptcy and stay in the euro area, after a parliamentary vote in favor of a draconian austerity program. The vote Monday was hailed by EU leaders. European Commissioner for Economic Affairs Olli Rehn, this is "a crucial advance". "We expressly welcome" the vote "demonstrates the willingness of Greece to undertake difficult reforms," ​​responded his side the German chancellery. Markets also liked. The main European stock markets ended higher Monday moderate – Paris gained 0.34%, 0.68% Frankfurt and London 0.91%.

The relief of markets and European partners in contrast to the violence of the demonstrations that greeted the vote in Greece's plan. Neoclassical buildings ravaged by fire, windows broken: according to official counts, 45 buildings were totally or partially damaged on the night of Sunday to Monday. The Ministry of Health has reported 54 people injured and 68 police wounded in its ranks. The law passed by the House includes indeed Greek for a particularly painful for the population (further cuts in wages and pensions and a new wave of job cuts in the public service) to save 3.3 billion euros in 2012 .

This vote is a first step towards providing loans of 130 billion euros and deletion of part of the country's debt. It avoids bankruptcy which threatened the country while Greece has to repay 14.5 billion euros of debt in March. But it does not solve fundamental problems affecting the Greek economy. The country is moving toward a slow disintegration. In January, the expected tax receipts fell by 7% when they were to increase by 9% according to government forecasts. "Greece is the perfect illustration of the adage" too much tax kills tax "[the Laffer curve, note], believes Jesus Castillo, an economist at Natixis.  

Social explosion

For two years, the Greeks are subjected to a drastic course of rigor, consisting primarily of tax increases and lower salaries. Result: the economy atrophies at high speed, she should know in 2012 a fourth consecutive year of recession. The Greek population is impoverished – their standard of living has fallen 50% in two years – and unemployment is over 20%. Above all, they see no crisis: austerity accentuating the recession, the deficit reduction targets are not met and the government is obliged to take further fiscal savings.

Today, Greeks are tired. A poll conducted these days by the institute and published by the RASS news247.gr site notes that 48% of Greeks prefer bankruptcy to austerity against only 38% who agree to pay for the rescue of their country. For Thibault Mercier, economist at BNP Paribas, "bankruptcy of Greece would be terrible for the country is better austerity, admittedly painful, and the pursuit of fiscal adjustment in return for funding from the EU and the IMF." Who says bankruptcy, said failure on the entire government debt. In doing so, the country would no longer have to pay interest charges and his government deficit would be lowered by 6 points.

But there would still be three point deficit to finance (6 billion). A default would result in further losses for banks Greek equivalent to 200% of their equity. In other words, they would go bankrupt and would need to be recapitalized to the tune of 60 billion euros. But Mercier said Thibault, "nobody wants to lend money to Greece, nor Europe, let alone the markets." The only solution for the country would be to leave the euro area, restore the drachma, to devalue sharply and to print more money to finance the government and banks. With consequent high inflation and a dramatic decline in the purchasing power of households – Greece imports more than it exports.

Organize bankruptcy

Should we then continue on its current path, that is to say, lending money to Greece in return for ever more severe austerity? "No, because Greece is insolvent and lend him more money is useless," said Jesus Castillo. It would take a reduction of 110 percentage points of GDP of the entire public debt of the country to restore its fiscal solvency, against 40 points for entering planned in the European rescue plan. It would also reduce by 25% for rebalancing demand within the trade balance. It's impossible.  

"A cancellation of almost all Greek debt, the equivalent of bankruptcy, is the only solution, says economist of Natixis. But it must be done in a cooperative situation at European level." In other words, the country would remain in the euro area and its partners would lend him enough to recapitalize its banks and invest in its economy to restore its competitiveness and, ultimately, permanent improvement of its growth. The default solution is a political choice that European leaders do not seem to be willing to do. Because it could set a precedent and lead to a contagion effect to other countries in the euro area. Otherwise, it is feared that the Greek crisis continues much longer do.

Rexel said Friday propose a dividend increase of 62.5% to € 0.65 per share for its fiscal 2011, the group that last year's record profitability including a 39% growth in net profit to 319 million euros.

In the current context of uncertainty, Rexel said he was confident of its ability to continue to generate organic growth in 2012 of its sales outside "copper effect" than the weighted average growth e of the GNP of the countries where the Group operates. 

"In this context, Rexel is also expected in 2012: to maintain a margin EBITA (earnings before tax, interest and depreciation) to a level at least equal to 5.7% achieved in 2011, generating a free cash flow before interest and taxes of around 600 million euros ", the group announced in a statement.

The EBITA margin rose 70 basis points last year, a figure better than expected since November, Rexel had repeated expect for 2011 an increase of at least 50 basis points of its EBITA margin in constant and adjusted. 

"In 2011, Rexel achieved very good performance: organic growth was strong, profitability reached a record high and we strengthened our presence in markets emerging while continuing deleveraging of the company, "said in a statement Jean-Charles Pauze, CEO of Rexel.

At the end of 2011, net debt of the company was reduced from 195.1 million euros and amounted to 2.078 billion euros, reducing its debt ratio on EBITDA (earnings before tax, interest, depreciation and amortization) of 3.19 to 2.4. 

The turnover of Rexel emerged up 6.3% to 12.717 billion euros, driven by strong growth of 7.4% of its business in North America while in Europe activity of the company rose 4.5%.

In an interview with Reuters, Jean-Charles Pauze, which will be replaced as head of the group by Rudy Provoost, had said in early January that Rexel was on track to double its sales business in emerging markets between 2010 and 2013, particularly through external growth.

The title, which lost 0.46% Thursday to 15.25 euros, has gained 15.5% since the beginning of the year, enabling the group to exceed four billion euro market capitalization.

Sanofi announced Wednesday a rise in earnings in the fourth quarter of 2011, helped by the consolidation of Genzyme, reducing its costs and its strong performance in emerging markets and diabetes ; you.

However, affected by the loss of its patents of some of its major drugs including the anticoagulant Plavix, the group confirms that it expects a decline in earnings per share 12% to 15% at constant currency in 2012, an objective in line with its medium term plan. 

In a conference call with reporters, the CEO of Sanofi Chris Viehbacher stressed, however, "that beyond the last brevetaires expirations of certain products in 2012, the strong performance of growth platforms, reduced exposure to future losses patents and progress in R & D position (Sanofi) for a period of sustainable growth ".

As expected, the loss of patent for Plavix and Avapro in the United States should reduce the net income from about 1.4 billion euros in 2012. 

In addition, the American justice confirmed Tuesday the authorization to market a generic version of Lovenox anticoagulant, denying the accused the French laboratory that re U.S. FDA regulator for not having followed the procedures.

Lovenox was one of the top-selling medicines by Sanofi, with sales of close to four billion dollars a year, before the arrival on the market a generic version ; summer 2010.

Meanwhile, Sanofi and its U.S. partner Bristol-Myers Squibb announced that Apotex had paid them 442.2 million worth of damages to which she had e ; tee convicted in the trial for patent infringement of Plavix. 

DIVIDEND TO 2.65 EUROS PER SHARE

Sanofi also announced that improving the production of Genzyme was "well underway" following approval by the U.S. and European health authorities at the new , Framingham, Massachusetts.

The company said that its U.S. subsidiary continues to hope for an improvement of their supplies of Cerezyme (Gaucher disease) as of this month and that globally, the return Total to normal production levels of Fabrazyme (Fabry disease) begin in the second quarter.

Fabrazyme and Cerezyme generated more than $ 1.7 billion in revenue in 2008, before their sales collapse by 29% in 2009 and another 25% the year following a failure in industrial. It is in this context that Sanofi Genzyme acquired in spring 2011 to more than $ 20 billion.

Oddo Securities analyst Jean-Jacques Le Fur said that "the results and predictions of Sanofi are in line with expectations. This means that the group holds out its roadmap and this bodes well for the future "

. the fourth quarter 2011, Sales of Sanofi rose 8.8% (+9.2% at constant exchange rates) to 8.508 million euros (8,535.6 million consensus), operating profit by 11.3% to 2.828 million (consensus 2931.5 million) and net profit by 13% to 2.077 million (consensus 2071.7 million) or 1.56 euro per share (1.55 euro) ..

……. Sales Genzyme, consolidated as of 1 April 2011, rose 7.7% to 2.395 million euros … Under

…… fiscal 2011, Sanofi proposes a dividend of 2.65 euros per share, against 2.50 euros in 2010 ….. ….

Last night was the Superbowl in the U.S.. And as so often with the Americans, unreason was de rigueur. Back on the key figures of the sports event of the year. Giants celebrate their victory against the Patriots after the 2012 Superbowl.

The final of the football championship, best known as the Superbowl, was seen yesterday's New York Giants beat the Patriots in Boston. But the event goes well beyond the sporting aspect.

120 to 500 million viewers

This is the average global audience for a Super Bowl, 90 million Americans. The event is broadcast in 182 countries, representing 88% of world states. It is accessible to a billion people.

$ 250 million in a night of pub

In one night, NBC will have gained about a quarter of a billion dollars. What return on the purchase of human competition, prohibitively expensive. Beginning in 2014, and ESPN TV will pay directly besides $ 6 billion a year to broadcast the entire season. During the Superbowl in 2012, the 30-second spot was coined to 3.5 million. In total, nearly 70 advertisements were broadcast. They are a spectacle in themselves so that some viewers would not watch the match for them. It must be said that brands compete imagination to suggest that the pub looks great. Apple is the gold standard and the video for launch of the first Mac, directed by Ridley Scott and aired at the Superbowl of 1984:

YouTube, the Volkswagen commercial, aired during the Super Bowl 2011, featuring a child dressed as Darth Vader, has amassed 50 million views. This figure is in addition to more than 100 million live views during the game.

This year, the German mark was at it again, with a humorous result. Discover a best of pubs in this Superbowl 2012:

2500 dollars instead

The minimum charge to attend the event. Prices that can rise to $ 800 000 in big suites! In total, there were about 70,000 in the aisles of the stadium in Indianapolis.

4:30 to show …

For one hour before the match only. The Superbowl is more than a sporting event. This is a varied spectacle, with the long awaited national anthem sung by a celebrity (Kelly Clarkson yesterday), but especially the concert halftime. This year, it's Madonna who provided a performance for 30 minutes, whereas in a classic football game, the pause is only 15 minutes.

88 000 match bonus dollars

the amount each player has received the Giants, winners of the match, knowing that a football team has 53 members. The losers, they have still pocketed $ 44 000 each.

Allianz reported Friday a third quarter net earnings well below expectations, the financial market turbulence has sealed investment income of the first European insurer.

The German company posted a net profit of 196 million euros over the period while 14 analysts polled by Reuters had expected an average of 566 million.

Allianz has spent 931 million euros in provisions, mainly on investments in the financial markets.

The cons-performance does not deter investors to buy the title, the emphasis operators operating income.

The latter is certainly emerged down 7.3% to 1.91 billion euros, but above a forecast of 1.71 billion.We do not judge too negatively the fact that the net profit is below expectations because it was caused by a higher taxation and impairment of assets higher than expected, "said Philipp Hässler Equinet Bank.

By 10:00 GMT, taking 1.87% to 74.07 euros while the index grouping the values ​​of the European insurance advanced 0.97%.

Allianz confirmed its target of operating profit between 7.5 and 8.5 billion euros for the whole of 2011 but said that the annual net would likely be less than five billion euros in 2010.