International Business News

Burberry reported Tuesday a 26% increase, as expected, its adjusted earnings in the first half of fiscal 2011-2012, thanks to sustained consumption of tourists around the world, and confirmed its annual forecast.

"We remain mindful of the uncertainties and ready to respond to them," said in a statement, however, the British manufacturer of waterproof leather goods founded 155 years ago.

It posted a profit before tax and exceptional items of 162 million pounds (190 million euros) over the six months to September 30, 2011, against an average estimate of analysts polled by Reuters of 159 million.

Last month, the group announced quarterly sales exceeded expectations, saying not yet have found the slowdown in demand despite uncertainty about the evolution of global growth.

Burberry has confirmed its ambition to increase its network of outlets around 15% in the second half, including the opening of eight to ten stores in places like China and Latin America, and that a new "flagship" in Paris.

The values ​​of luxury far seem to defy the crisis, but the uncertainties in this highly cyclical, the question remains whether the growth in Asia will escape the crisis.

The European Commission will Wednesday unveil new rules for new rules to limit the power of rating agencies. The suspension of a rating and the attack to justice agencies include planned. Moody's in New York.

The "blunder" by Standard and Poor's comes almost timely for the European Commission. Brussels Wednesday will unveil a range of measures to regulate rating agencies, and the announcement erroneous degradation of France by S & P should increase the willingness of the European regulatory agances. Details of the measures to be adopted.

Suspend a rating

The Commission will decide to suspend the rating of a State in case of excessive volatility or if it is under European aid program. This decision can be explained by the previous in Greece.

Attack to justice agencies

Any investor can now sue an agency and ask for damages. Brussels wants to create "a European framework of liability in case of serious misconduct or gross negligence." A new measure that should appeal to France after the "true-false" degradation Standard and Poor's.

Impose a turnover in the agencies

Brussels wants to put some competition in the "Big Three", Moody's, Standard and Poor's and Fitch Ratings. The idea of ​​creating a European agency was abandoned now Brussels wants to impose a rotation to the actors who are noted. Clearly, companies and states will be required to change agencies every three years, to encourage competition between agencies. But the idea has been criticized not only by the agencies but also by some of their clients.

Reducing to 1% GDP growth expectations in 2012, Nicolas Sarkozy warned that 6 to 8 billion euros in savings or additional revenues must be found.

While a half point of growth in less than about 5 billion shortfall for the state budget, the risk of a vicious circle is not excluded, the lowering of growth forecasts calling plans savings which in turn contribute to more depressed activity.

"You will never make me believe that with 1,000 billion of public expenditure, we can not find 5 billion savings," tempers, however, the rapporteur of the Finance Committee of the National Assembly, the UMP Gilles Carrez.

Paris fell 3.16% Monday, 2.77% London, Frankfurt and Milan 3.23% from 3.82%. Bank stocks were again the victims of market concerns about the future of the euro area. European shares closed sharply down Monday, October 31, 2011.

The Paris Bourse has lived a black day Monday, October 31, losing 3.16% in a market dominated by profit taking and taken over by doubts about the future of the euro area, despite the European anti-crisis plan. The CAC 40 dropped 105.79 points to 3242.84 in trading volume of 3.35 billion euros. Bank stocks fell by 8 to 10%.

Featured dax index of the Frankfurt Stock Exchange ended down 3.23% to 6141.34 points.German banks have drunk the cup: Commerzbank dropped 8.47% to 1.78 euro and Deutsche Bank, which has suffered from over exposure to the bankruptcy of U.S. broker MF Global, 8.60% to 30.35 euros .

The FTSE-100 index of London Stock Exchange main values ​​lost 158.02 points, or 2.77% from Friday's close at 5544.22 points. The total star of the Milan Stock Exchange, the FTSE Mib, fell 3.82% to 16,017 points. Among banks, Intesa Sanpaolo dropped 7.39% to 1.291 euros, Banca Monte dei Paschi di Siena 6.16% to 0.3383 euro and 5.67% to 0.848 UniCredit euro.

Theolia is now ready to consider acquisitions of wind farms with actors who would experience financial difficulties, said Friday its general manager, Fady Khallouf.

Operations could be done at reasonable prices given the current economic environment, said in an interview with Reuters the owner of the French specialist in wind, on the brink of bankruptcy in 2010 and during recovery.

"A number of actors have tried to develop parks and reaches a certain point, but are weakened by the current economic climate.We have the ability to take over projects and to accelerate, "said Fady Khallouf.

"There are a number of new opportunities from the current crisis (…) We look at a number of topics, it can be small things or things more consistent."

The uncertainties surrounding global economic conditions even strengthen the group's strategy.

"When there are economic difficulties and a number of concerns, both in terms of energy, environmental or financial, I see them as opportunities for us," said Fady Khallouf.

"The fundamentals are stubborn"

"The fundamentals are stubborn. In Europe, production capacity and an older (…) we will have to invest.Whichever way you look at the production, there will be an increase in electricity prices.From there, the wind can no longer be considered a subsidized activity but to be sufficiently close to the market price trend, "said Fady also Khallouf.

"Instead of pretending not to see and panic in a few years, I think all actors – authorities, industrial and financial – have an incentive to engage in reasoned dialogue (…), even if the energy renewables will not displace completely the traditional means."

Fady Khallouf further indicated that his group was about to welcome a new partner in the investment vehicle Theolia Utilities Investment Company (tuica), he has established with the Swiss electrician IWB Industrielle Werke Basel (IWB) to finance wind projects in France, Germany and Italy.

"We are finalizing the entry of a new actor of the same size qu'IWB (…). It is a 'utility' Europe is the 'cross-boarder", he said, considering a deal "imminent".

"This vehicle is intended to go perhaps in other European countries as opportunities (…).It has been so successful that I am asked by various stakeholders who wish to enter, "said Fady Khallouf, which emphasizes, however, at first a round of stabilization and effective launch of its business.

POSSIBLE INCOME IN 2013

Tuica, for producers and distributors of electricity, will have 100 million of capital invested and may use project finance, with the aim to invest over 300 million euros.

Held so far to 70% and 30% Theolia IWB, it will acquire wind projects with the French group, which will ensure the development, construction and operation of the life of the parks and collect a fee for each of these benefits.

Theolia has been profitable than in a single year, in 2010, the mechanical effect of the capital increase, but could generate a net profit in 2013 if the crisis does not delay some of its projects said Fady Khallouf.

"As and when we succeed in achieving the goals I set, we will also have the ability to attract more investors and in that time, the question will arise whether to increase capital or not, or some other scheme that could be to expand the investment vehicle, "he said.

"It will not arise in 2012, we have sufficient cash resources and a very healthy."

The New York Stock Exchange ended Thursday up 0.31%, the Dow Jones 30 Industrial winning 35.27 points to 11,539.89.

The S & P-500, wider, took 5.43 points, or 0.45% to 1215.31.

The Nasdaq Composite Index, however, declined 5.42 points (0.21%) to 2598.62.

These data are likely to vary even slightly.

Paris and Berlin would have agreed to increase the capacity of European Financial Stability Fund (EFSF) in 1000 or 2000 billion. Paris gained 0.76%.

Despite the deterioration in the sovereign rating of Spain by Moody's, the Paris Stock Exchange was up Wednesday morning, encouraged by rumors of a Franco-German agreement on the recapitalization of banks and strengthening of the support fund in Europe. At 9:37, the CAC 40 clinching 0.76% to 3164.70 points, the German Dax gained 1.02% and 0.97% took London. Investors reacted positively to news reports on the European Financial Stability (EFSF), analysts have said Aurel BGC.

Paris and Berlin would have agreed on a plan to end the debt crisis by increasing the response capacity of the EFSF to 2,000 billion euros, against 440 billion currently, according to an article posted online by the British newspaper The Guardian. According to the Financial Times Deutschland, the German finance minister, Wolfgang Schäuble, for his part, mentioned the figure of 1.000 billion euros as the future financial capacity of the support fund.

"The important point to remember is that an agreement exists between France and Germany, which suggests significant progress this weekend," noted strategists Credit Mutuel-CIC. "However, do not expect miracle solutions that will enable us to turn the page of the crisis", they said.

Especially as the situation remains confused in the eyes of analysts.We do not have the essential piece of the puzzle, namely how the "size" of EFSF may "be increased" in 1000 or 2000 billion, and asks the broker Aurel BGC. The hope of a future strengthening of the EFSF relegated to second the blow firmly told to Spain by Moody's Investors Service on Tuesday night which lowered the country's credit rating by two notches.

According to Reuters, two senior officials of the European Union say that no agreement has yet been found. "It is naive to think we can do this kind of calculation and come up with a nice round figure of 2000 billion. It's not that simple, "said one of them.

As for values, the banking sector was up sharply, driven by any progress on the EFSF.BNP Paribas take the lead in the rating (4.21% to 31.19 euros), followed closely by Credit Agricole (2.28% to 5.03 euros) and Societe Generale (2.13% at 19 , 65 euros). Accor took 2.08% to 22.53 euros after posting a turnover of 1.62 billion euros in the third quarter, up 2.7%.

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.

European shares cut their gains late Friday morning on profit taking after a violent rally triggered by the announcement of a concerted action of the banks to provide liquidity in dollars from European banks.

This measure, which boosts financials, does not solve the central problem of the euro area, the crisis of sovereign debt, stress professionals who say they do not expect a resolution of the Greek question at the end of the meeting of finance ministers of the Eurogroup in Wroclaw, Poland.

Around 12:05, the CAC 40 index, which jumped 3.27% on Thursday, rose 0.2% to 3,051 points, banks still leading the movement.

"Some profit taking.And we do not expect a solution to the debt crisis in the euro immediately, "said one vendor." The market is divided between those who believe in the rescue of Greece and those who think it will not be able to meet the requirements for better management of public finances, "he adds.

For Patrice Pérois, sales trader at Kepler Capital Markets, "the beginning of concerted actions of various central banks announced yesterday is very positive.If this is confirmed, all the conditions are ripe for a rally of the banks. "

But, he added that "the day will be highly technical with the expiration of futures and options on stock indices," he adds.

Some banks take the rating, including Societe Generale which accounts for 1.85%.Natixis, which is outside the CAC 40 index after the close of this evening to be replaced by Safran (-1.9%), gaining 0.12%.

London gained 0.8%, 0.9% and Frankfurt Milan 0.7% and European indices, STOXX 50 0.63%.

The performance of the German government bond (Bund) is relaxed to 10 years of 1 basis point to 1.93% while the euro weakened against the greenback and traded around the 1.3795 dollar against 1.3866 on Thursday.

Hermes (-7.5%) shows the largest decrease of the SBF 120 after the justice system has validated the family shareholders to sanctuaries a majority stake in the group face to the appetites of LVMH.

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%.