International Business News

"It is not possible to renegotiate the pact budget", said on Monday a spokesman for German Chancellor. This ensures that Francois Hollande will be welcomed "with open arms." German Chancellor Angela Merkel (the Bundestag by December 2, 2011).

Germany has raised its conditions Monday to President-elect Francois Hollande, ruling out any renegotiation of the European fiscal pact and all initiatives "growth deficit".

"It is not possible to renegotiate the fiscal pact", which has already been "signed by 25 of the 27 member states of the European Union", which aims to strengthen discipline in public finance management, said the spokesman of Chancellor Angela Merkel, Steffen Seibert, during a press conference.

He was asked about the willingness of Mr. Holland to add a component to the pact on growth. In this regard, Mr. Seibert also reiterated the conditions of Berlin: Germany does not want "a growth deficit, but growth through structural reforms."

Clearly, there is no question for the Merkel government in Europe to promote recovery policies, but to promote the path chosen by Germany and the labor market reforms implemented by former Chancellor Gerhard Schröder .

French President elect had scored on his victory speech by his willingness to "give to the European dimension of growth, employment, prosperity, the future" and explain in Berlin and other partners that "the austerity could no longer be inevitable. "

A little later, Angela Merkel said that Francois Hollande is welcomed "with open arms" during his first visit to Germany, taking place after the handover. "We work well together and intensively," said Merkel at a news conference in Berlin, stressing that "the Franco-German cooperation is essential for Europe and we all want Europe to succeed" .

Pierre Mariani, the Group CEO, denied Wednesday it had set conditions for his eventual departure of the head of the Franco-Belgian bank being de mantling, ensuring that no decision had been taken on his replacement.

Several Belgian newspapers reported that the Belgian government would like to replace Pierre Mariani by Karel De Boeck, former CEO of Fortis.

According to these newspapers, the current Group CEO would be willing to leave his position as number two in the bank if they receive a severance package of 1.2 million euros stipulated in its contract. 

"The Group CEO has made no request to the Belgian and French about the conditions of his eventual departure contrary to news reports published so far," re ; Pierre Mariani is in an email to Reuters.

"No decision on the replacement of the CEO and President (Jean-Luc Dehaene, Ed) Board has been taken to date" he continues.

Dexia Bank, already saved from bankruptcy in 2008 by Belgium, France and Luxembourg, was forced into last fall due to the dismantling of sovereign debt crisis. 

Luc Coene, the Governor of the Central Bank of Belgium (NBB) said Monday that the bank, which enjoys state guarantees for its refinancing needs, would probably need to be recapitalized again e.

The group has since seen its market capitalization crisis collapse. Currently, the bank is valued at about 350 million euros on the stock market with a share price at only 0.18 euros.

"CONFIDENCE TO PETER MARIANI"

Asked by Reuters, Michel Bouvard, president of the supervisory board of the Caisse des Depots (CDC), Dexia's largest shareholder with 17.7% stake, has in turn brought ; support for Pierre Mariani.

"Personally, I have every confidence in Pierre Mariani," said Michel Bouvard. "When you are in managing a complex issue, which is the case, it is better that he who began managing the file management ends until one goes to the next step. "

"I did not speak on matters of internal governance of Dexia," he nevertheless wished to emphasize.

Since the decision late last year to dismantle Dexia, the Belgian authorities have carried out the nationalization of retail banking activities in Belgium while the France has decided to return via the CDC and the Postal Bank, the activities of local government financing.

The European Commission must still approve the plan and set the price that Dexia will have to pay in exchange for 90 billion euros of state guarantees provided. 

Dexia posted a net loss of 11.6 billion euros in 2011 and some analysts said the bank could continue to generate losses in the coming years.

Although in sharp decline, the size of the stock of Dexia is considered by some analysts as a systemic failure to pay the bank would have incalculable consequences for the entire system European banking.

Deutsche Bank announced Thursday a decline in taxable profit in the first quarter, to 1.9 billion euros, due to exceptional charges and trading activity subdued.

A year earlier, taxable income was three billion. The Reuters poll gave it to 2.4 billion euros for the period under review.

The taxable profits of the corporate and securities division, usually the main generator of profits of the bank, declined to 1.7 billion euros against 2.3 billion a year earlier.

The Tokyo Stock Exchange ended down 1.7% Monday as investors attempt to hedge against new fears about the crisis in the euro area, after the publication of data that emphasize the dependence growing Spanish banks vis-à-vis the European Central Bank (ECB).

The Nikkei lost 167.35 points to 9,470.64, dropping below the psychological threshold of 9,500. The Topix broader, sold 1.4% to 803.83 points.

Fortunately, the index of construction costs no longer used for rent reviews. It increased by 6.85% over one year to the end of 2011 to reach a record level. A construction of new homes and office buildings in Marseille.

The index of construction costs (ICC) in France continues to climb. It increased by 6.85% year on year to reach 1,638 points in the fourth quarter of 2011, above its record dating from the previous quarter, announced the National Institute of Statistics and Economic Studies (INSEE) on Friday. The ICC, which was 1,624 points in the third quarter of 2011, had previously reached an all time high in the third quarter 2008 to 1,594 points.

Year on year, the CHF increases and 6.85% after rising 6.84% in the third quarter of 2011, 5.01% in the second quarter and 3.05% in the first quarter. Since the law of personal services from 26 July 2005, the ICC is no longer a reference to the rent review during the lease in the private rental market. He was replaced by the benchmark rents (IRL), which is now based on the index of consumer prices excluding tobacco and rents, since the enactment of the law for purchasing power in February 2008 . However, the index of construction costs is a reference for the revision of certain commercial rents, alongside the commercial rent index.

UBS has hired Andrea Orcel, head of mergers and major acquisitions at Bank of America Merrill Lynch in Europe, to co-direct its investment banking activities alongside Carsten Kengeter.

The Swiss bank said Andrea Orcel, an Italian who has orchestrated some of the largest European banking in recent years, would take up his new duties July 1.

At UBS, he worked under the supervision of one of his former colleagues from Merrill Lynch, Sergio Ermotti, now CEO of Swiss number one industry. 

Andrea Orcel, a forty who is fluent in four languages, have served more than 20 years at Merrill Lynch, where he was appointed manager in September 2009, Global Banking and Markets, a year after s acquisition by Bank of America.

The new recruit UBS is one of the celebrities from the world of investment banking. This is among others in the past occupied the Dutch takeover of ABN Amro by Royal Bank of Scotland and helped to strengthen the capital of Italian Unicredit.

In 2008, he received total compensation of nearly $ 34 million (26 million).

"It is effective, even ruthless when it comes to getting things done. There is a good chance that some of his customers leave with him (at UBS), "said one banker who has worked on several transactions in which Andrea Orcel intervened

. "It always provokes a strong reaction from customers: they either love it or they hate it."

.. …… Bank of America declined to comment

. The U.S. group will also experience the departure of another of its officials, Jonathan Moulds, president for Europe and Canada, who will retire end of June according to an internal memo that was procured Reuters

The station

. Jonathan Moulds Andrea Orcel was proposed but the latter preferred to leave at UBS, said a source familiar with the matter. 

Bank of America is currently under pressure from some shareholders who demand a better performance while four of the six quarters ended in losses and its stock price was battered last year.

BofA has cut jobs in recent weeks in its equities and securitized mortgage loans according to sources familiar with the matter.

Management should be next month how the cost reduction plan launched at the group level will affect the activities of capital markets, asset management and retail banking.

NicOx stock market soared Wednesday after announcing the signing of an agreement to acquire 11.8% stake in Altacor, a UK ophthalmology which the group can be subsequently 100% control.

The action of the French biotech company closed at 4.22 euros (35.43%) in a volume of 28.4 million shares, more than 12.5 times higher than recorded daily average last three months. Its market capitalization stood at 307 million euros.

She had also made great progress there is a little over a week after announcing positive results of a study on treatment of glaucoma developed with the specialist eye health Bausch + Lomb.

Under the terms of the agreement, NicOx will invest an amount of two million pounds (about 2.4 million euros) in cash to acquire 11.8% of Altacor, which markets a product line the UK for the problems of dry eye.

The group has an option to acquire the remaining shares Altacor for $ 9 million pounds (about 10.8 million), paid , at the option of NicOx, in cash or in shares NicOx in a combination of cash and shares. 

This option is exercisable by NicOx until May 31, 2012. If predefined steps are met, additional payments of up to a total of 8.5 million pounds will be due.

ACTION HIGH RISK

The option to acquire concludes Altacor, is the first concrete realization of the strategy initiated over a year by NicOx to refocus around ophthalmology Aftern ; s failure of anti-inflammatory Naproxcinod, Malafosse says Sebastian, an analyst at Bryan Garnier.

The intermediary considers that the offer of the biotech values ​​between 13.2 and 23.4 million Altacor society, which has an annual turnover of 660,000 euros. 

Another analyst, who requested anonymity, considers "very speculative ascent of a security that has increased from 12 euros in the second half of 2006 to 22 euros at the highest early 2007 before falling between 1 and 2 since the failure of Naproxcinod ".

He also observed that in the preferred areas of Altacor, including dry eye, NicOx "mastodons" in front of him such as Novartis, Merck and Sanofi.

"NicOx announces investment potential of 26 million euros for a target with confidential sales and capitalization is around 80 million euros. Michele Garufi, CEO of NicOx is too strong or some investors revved up a rather quickly, "said he.

European shares opened lower Tuesday, continuing a modest decline began Monday, while remaining close to the peak reached in eight months last weekend.

In Paris the CAC 40 was down 0.41% (14.50 points) to 3,563.38 points. In Frankfurt, the DAX lost 0.5% and London, the FTSE 0.5%. The pan-European index Stoxx 50 yields 0.43%.

Investors expect the American Statistical probably the day starts, to give a more straightforward classes.

"There is profit taking (…) If there is improvement in housing starts in the U.S., it could give a boost," said Joe Rundle , in charge of trading at ETX Capital.

The Metro Action yield 1.68% to 30.35 euros after the German distributor told to anticipate a stable operating result in 2012 compared to 2011.

The title Transgene plunged nearly 7% after the biotech company announced Monday a widening of its loss in 2011. 

At the London Stock Exchange, the action BHP Billiton lost nearly 2% after the first Global Mining said it saw signs of "slowdown" in demand for iron ore from the China.

The title of the computer services group Tieto Finland earns more than 5% in early trade after the announcement of a plan for downsizing.

On the foreign exchange market, the dollar remains near its lowest in a week against a basket of currencies but showing signs of an improving economic conditions in the U.S. and higher yields U.S. Treasury bonds should be supportive factors for the greenback. 

While most stakeholders feel that the debt crisis of the euro area has stabilized in recent weeks, they keep in mind that it may get worse ; any time, questions focusing on the viability of Portugal.

On the front of sovereign debt in the euro area, 14.5 billion euros of Greek bonds maturing in the day, during which Spain will issue bond paper 12 and 18 months.

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%.

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.