International Business News

Paris Mayor Bertrand Delanoe announced Monday his intention to devote one third of the investments of the city housing next year. Housing is the recurrent problem of large cities.

One third of the total investment in the city of Paris will go to housing and 6,000 housing units will be funded in 2012, announced Monday the mayor of Paris Bertrand Delanoe in Paris with the Council in 2012 budget guidelines based on "solidarity". Before "crisis," said the mayor of Paris, the city "will intensify its efforts this year to promote solidarity and innovation."

As for 2011, "more than 2 billion euros" will be devoted to solidarity: "It is necessary to preserve and develop the diversity of Paris' Bertrand Delanoë argued, often accused by the UMP Paris to promote "most helpful and easier."

"Housing is about a third of our total investment. 6,000 housing units will be funded in 2012," Mr. Delanoë has announced. For the poor, "we will enhance our efforts to create, by 2014, 2,000 places of emergency shelter," pointing out that this type of accommodation 1700 "have already been funded." He also indicated that 940 nursery places would be funded in 2012 and the extension of the tramway to the door of the chapel is completed.

The UMP denounced the tax increases

On behalf of the UMP, Mayor Jean-Francois Legaret I found that these budget guidelines reflected "disarray" and denounced a "hype tax". "You have increased taxation in all its forms" said Mr Legaret who cited the "increasing every conceivable tax levied on Paris.""During that time, transfer taxes, which are not an adjustment value, represent an 1/7th of all revenue of the city and will likely reach one billion euro of revenue" he said .

For his part, chairman of the NC Yves Pozzo di Borgo attacked the "tax snake that chokes strangle businesses and households," and cited a study of the Paris workshop planning (APUR), which he , has "made the finding of an increasing gap in the territory with a poverty rate of 13.9%, to a regional average of 12.1%." The 2011 budget of the City of Paris in the amount of 7.7 billion euros, is the most important of all French communities.

The Bank of France reiterated Monday its forecast of growth of 0.1% of the French economy in the third quarter, based on the results of its latest monthly business survey.

She had halved its forecast last month.

The business climate indicator in industry has remained stable in September at 97 while the service sector shrank from one point to 96.

In September, "industrial activity has remained stable, the contraction in the automotive and manufacturing equipment was offset by the increase observed in the food industry and some sectors of production of consumer goods" , says the Bank of France.

She added that the forecasts of business leaders expect a stable business. "

The utilization of production capacity improved slightly, to 79.3% against 78.8% in August. However, it remains below its historical average of 82.

In services, says the Bank of France, sales rebounded in September, "particularly in transportation, computer services and to a lesser extent temporary employment." The outlook for the coming months, however, foreshadow a slowdown in activity.

UBS has announced that the two co-directors of its business activities had resigned Wednesday, and that other employees could suffer the same fate after massive loss recorded last month by the bank due to unauthorized transactions.

Francois Gouws and Yassine Bouhara resigned in assuming full responsibility for the management of business activities, UBS said.

"In addition, appropriate disciplinary procedures will be taken against individuals other activities as a result of actions indicent," said the Swiss bank.

A source reported that eight other employees were involved in these proceedings.

Mike Stewart, who has just joined UBS from Merrill Lynch Bank of America, will become the only leader of the bank's equities business, a position he held previously at BofA.

Helsinki demanded security for the vote of the new loan. The country threatened not to vote on second bailout plan. Greece in the storm

Countries in the euro area reached a compromise Monday night on the guarantees requested by Finland in Athens in exchange for new loans, about blocking for weeks the second rescue plan promised the country in crisis. "Following lengthy discussions, we reached an agreement on the terms of the collateral," or collateral requirements in exchange for new loans in Helsinki, said the leader of the finance ministers of the monetary union, Jean- Claude Juncker. The European Commissioner for Economic and Monetary Affairs, Olli Rehn, expressed his "satisfaction" that a compromise could be found at last after a meeting of ministers of the Eurogroup, Luxembourg.

Helsinki, which is facing a surge in euro-skepticism shown by the party's electoral breakthrough of the "True Finns" and a growing reluctance of his opinion to help Greece, required to be eligible collateral ("collateral" in financial jargon) in exchange for new loans promised in Athens. Greece has been promised on July 21 a second plan loan of Europe and the International Monetary Fund of 109 billion euros, plus a contribution from private creditors of the country.

The compromise provides that Finland may well benefit from the guarantees required. Helsinki threatened to block any failing device, which would have led Greece to bankruptcy. But at the request of many other countries who refused any special treatment, severe counterparts are planned for countries that would use such safeguards."Any country not ask for collateral, but there is a price to pay," warned Klaus Regling, the director of the Relief Fund for the euro area countries in difficulty, the EFSF.

Finland must first pay at one time contribution to the future permanent emergency mechanism in the euro area (SS), called to take over the EFSF mid 2013, while other countries may spread their payments over 5. In addition, it will not receive as many benefits on the operations of its partners EFSF. The Fund, financed by the guarantees provided by the countries of the euro area, up because of the money in the bond markets at a very low, due to its excellent rating, then pay for a higher rate countries in need who asks. The difference between the two is a profit to share.

Another drawback: if a country supported by its partners fails, the guarantee will be paid to Finland to maturity of bonds made by the EFSF, 20 or 30 years. "So the guarantees will be frozen for a very long time," said Mr Regling. Finally, Helsinki will not be entitled to receive over 30% of its guarantee in the end. "This is why it is unlikely that a country other than Finland so requests," summarized Mr. Regling. The compromise is the final blow to most as a political means for the Finnish government not to lose face domestically, after having made a prerequisite to his constituents.

Air France, which opened its first Sunday "based province" in Marseille, comes directly hunt on the lands of the companies' low-cost "as Ryanair or Easyjet broken at prices of 13 destinations.

The first flight "new formula" of the French company took off Sunday at 9:35 of the tarmac from Marseille to Istanbul.Passengers paid 80 euros each way.

In total, Air France thus opens 13 new routes from Marseille-Provence – three in France (Mulhouse, Biarritz, Brest) and ten abroad (Athens, Copenhagen, Düsseldorf, Eindhoven, Milan, Moscow, Prague, Beirut, Casablanca and Istanbul).

"We create a mini-Marseille airline with its aircraft and personnel," said the CEO of Air France-KLM, Pierre-Henri Gourgeon, during his visit Thursday to Marseille airport for the official launch of the first "base province" of the French company.

After Marseille, which is the "size test", Air France plans to open bases in spring 2012 in Nice and Toulouse and Bordeaux.

To regain market share against the pressure of the TGV and low-cost airlines, which continue to gain ground on short and medium haul, the French company has set up an optimization of resources and a new organization negotiated with pilots and crews.

TEN AIRBUS based in Marseille

A total of ten Airbus A319 and A320 are now based at the airport in Marseille. Depending on the destination, they will perform at least two trips a day between 06:00 and 23:00.

On a voluntary basis, 120 pilots and 220 flight attendants were assigned to these new lines.The ground staff was also strengthened.

This device should allow the airline to tighten the price (50 euros for domestic flights to 110 euros one way on Moscow) maintaining the benefits typically offered by the French company on its other flights as the choice of place , newspapers and snacks on board or free luggage.

"This development meets one of the main expectations of our customers travel quickly at competitive prices," said the president of the Marseille-Provence airport, Jean-François Brando.

In five years, the airport Provence has surfed the wave of low-cost, doubling the number of scheduled airlines direct: 51 in 2006, 104 in 2011.

The opening of the first low-cost airport in Europe in 2006 allowed him to record a steady growth in passenger traffic, reaching 7.5 million passengers in 2010.

"With more than 150 companies and 5,000 employees on the platform, the airport is one of the leading employers in the area and generates more than three billion euros in economic benefits for the territory Marseille Provence," concludes Jean-François Brando.

Barack Obama proposed Monday a plan to reduce the budget deficit of 3,000 billion over the next ten years, half would come from new tax levied on the richest Americans and corporations.

The plan of the Democratic president, whose recommendations should meet the electoral base of his party, was immediately criticized by Republicans, foreshadowing a battle in Congress.

This ideological clash over economic policy should continue until the presidential election of November 2012.

"Washington to live with his means.We need to stop what we can not afford to pay for what really matters, "said Obama in introducing his plan.

"I will not support a plan that puts the entire burden of deficit reduction on the shoulders of the average American," said Obama."We will not agree unequal affect the most vulnerable," he said.

Savings will be made in Medicare, the Social Security program for older Americans, said the U.S. president.

But he warned he would veto any proposal that would reduce Medicare benefits without requiring an increased effort in return for the wealthiest Americans and big business.

The U.S. president said he was ready to work with Republicans for a comprehensive tax reform but warned that the objective of such reform should be to increase state revenues.

He said he was ready to lower taxes on businesses provided to get rid of all tax loopholes.

NOT SERIOUS, REPUBLICANS SAY

The tax "Buffett", named after the investor Warren Buffett who proposed, the proposal is the most spectacular of the plan, although it remains symbolic of the admission of the White House.

It concerns taxpayers earning over one million euros (about 725,000 euros).The goal, said Obama is the tax rate for the wealthiest U.S. taxpayers back to the level of the 1990s and the middle class pays no more, proportionately, than millionaires.

Obama's proposals are intended for the bipartisan commission formed this summer as part of the agreement on raising the debt ceiling.

The six Republicans and six Democrats who compose it must find by the end of November at least 1200 billion budget deficit reductions, which will add to the 917 billion already decided by the agreement of August.

"Threatening to veto, massively increase taxes to save ghosts and build on a reform of social programs, it is not a recipe for economic growth and labor market," said the leader Senate Republicans, Mitch McConnell.

John Boehner, chairman of the House of Representatives found that the contribution of Obama's bipartisan commission was not "serious".

In detail, Obama calls for the abandonment, expiration, tax exemptions up to the presidency of George W.Bush (800 billion dollars and would be recovered over ten years) and an overhaul of the tax code to eliminate some tax loopholes, such as offering tax exemptions to businesses through the acquisition of business jets (total gain of 700 billion ).

The Obama plan is also banking on 1100 billion savings associated with withdrawal of troops deployed in Iraq and Afghanistan.

The services of the White House finally believe that these reductions in the budget deficit will result in reducing the burden of debt relief that they amounted to ten-year $ 430 billion in less interest to pay.

JPMorgan, the second U.S. bank by assets, falling sharply Tuesday on Wall Street, as the entire banking sector, investors fearing prosecution series on the subject of mortgages sold to investors during the housing bubble.

The federal agency that oversees the mortgage market in the U.S. (Federal Housing Finance Agency) filed a complaint Friday against 17 major financial institutions, having sold more than $ 200 billion of bonds backed by home loans by presenting these operations in one day wrong.

These bonds are now owned by the giants Fannie Mae and Freddie Mac.

JPMorgan gave the title 3.5% by 1700 GMT, Bank of America gave 3.4% and 2.8% Citigroup.The banking sector index fell by his side at 1.97%, underperforming the S & P 500 down 1.8%.

Analysts said investors feared a flurry of lawsuits related to the identification of mortgages become toxic.

The title of Bank of America reached $ 6.80 during the session. Its course is returned to a level below the closing price recorded just before the billionaire Warren Buffett announced the acquisition of five billion dollars of preferred securities.

This transaction, announced Aug. 25, the title was boosted by 26%.

Guyenne et Gascogne reported Wednesday a loss in the first half, the franchisee of Carrefour have been penalized by its subsidiary Sogara whose accounts were affected by several non-recurring items.

In a statement, the group, which operates hypermarkets and supermarkets in the south-west of France and Spain, said he hoped the goal of an annual output "significantly" positive after a first half he considers disappointing.

"During the second half, the three entities Guyenne et Gascogne (the parent company Guyenne et Gascogne, Sogara and Centros Comerciales Carrefour, Ed) will step up their efforts to reduce distribution costs," the company said.

In the first six months of the year, the group posted a net loss of 1.335 million euros against a net profit of 6.382 million euros a year earlier.

Sogara, the loss amounted to 7.898 million biannual euros, against a profit of 8.026 million euros, was penalized by the difficulties of the consumer electronics sector, which has added a voluntary sacrifice margin due to a policy aggressive promotional explains Guyenne et Gascogne.

"The net result was affected by accelerated depreciation made important part of the transformation of Planet Carrefour stores, as well as a penalty tax on VAT litigation," added the company said that the first half of 2010 was received a substantial capital gain on disposal.

At the Paris Stock Exchange before the announcement of interim results, the action Guyenne et Gascogne ended up 3.35% to 9.76% on the gain since the beginning of the year and more than 590 million market capitalization of the group.

European shares cut their initial losses Wednesday, the market favorable ruling in the long run some of the proposals of Angela Merkel and Nicolas Sarkozy to find solutions to the debt crisis in Europe, even though the idea of ​​a tax financial European banking stocks weighed on stock and operators.

Around 13:15, the CAC 40 gained 0.81% to 3257.10 points after losing up to 1.5% in early trade. Other major European markets, London and Frankfurt drops 0.44% 0.29% respectively as they have lost up to 1.5% and 2% in the morning.

"The stabilization of current European indices came after a rebound in more than 10% since the low points.This slowdown is legitimate and should not conclude that the financial community is disappointed with the meeting between Sarkozy and Merkel, "said Arnaud Poutiers, Deputy Managing Director at IG Markets France.

Of the European indices, the EuroStoxx 50 ahead of 0.31% and 0.12% Eurofirst 300 loses.

"Certainly, investors would certainly responded positively if the Franco-German couple had driven on the path of Eurobonds, but it was while renewed visibility in the short term with a continuation of the way of debt, and not a fundamental solution, "said Arnaud Poutiers.

REBOUND ACTION

"The proposals regarding the creation of a government of the euro area as well as measures to harmonize the taxation of factors, however, are constructive in the long term," said he, holding that the equity markets should continue to rebound by the end of the month, the CAC 40 and return to the area of ​​3330 points.

On the foreign exchange market, the trend of early morning was also reversed, the euro rising by 0.49% to 1.4466 dollar while the euro has lost up to 0.5% against the greenback .

Although it was expected, the deferral of certain decisions such as the issuance of Eurobonds and the idea of ​​a tax on financial transactions, however, marked the spirits of investors.

"Once again, European leaders have failed to respond appropriately to the right question," say strategists in a note saying that Natixis European Tobin tax is not the solution to the problem of Europe .

These underline the effectiveness of such a tax is not shown, referring in particular the unfortunate experience of Sweden there thirty years which had resulted in leakage of almost half of the transactions to London .

The financial sector and stock exchange operators are affected by this proposal.UBS points out in a note with the Swedish initiative, the volumes on the Stockholm Stock Exchange had melted by 85%.

"Assuming that the proposed tax is based on the current proposal of the European Commission, a fee of 10 basis points (bps) on stocks and bonds and derivatives on a pdb, multiply it by 10 to 20 the transaction costs, "said UBS.

The Swiss bank said this could influence the proposed mergers and acquisitions and reduce premiums for this type of operation.

As for the bank, BNP Paribas shows the largest drop in the CAC 40 index with a decline of 1.35% at Societe Generale (-1.28%).

Commerzbank lost 3.2% and Barclays was down 2.9%.Stoxx index of bank lost 1.03%.

The exchange operator NYSE Euronext loses 5.09% 3.31% Deutsche Börse and London Stock Exchange Group 4.71%.

The president of the association of German exporters (BGA) Monday urged the leaders of Germany and France to agree on the creation of common bonds in the euro area at the bilateral summit planned Tuesday in Paris.

In an interview with Reuters, the head of the BGA Anton Boerner said that without the "Eurobonds", as Berlin refused so far, there was a risk that the debt crisis in Europe leads to a global depression.

"We need to show markets that we are ready to use the right tools, that is to say Eurobonds signed by Germany," he said.

"We need Eurobonds under strict conditions," he added, mentioning the introduction of "golden rules" budget in the constitutions of all countries in the euro area.

"We need it, and we need it quickly," he said Anton Boerner, who called for the issuance of these common bonds of unlimited volume.

Citing unidentified sources, the German daily Die Welt reported this weekend that the German government began to consider the idea, but senior ministers of the government of Angela Merkel agreed that the time was not ripe for think about it.

Chancellor Angela Merkel will meet Tuesday in Paris President Nicolas Sarkozy for making "joint proposals on the reform of the governance of the euro area before the end of the summer."