International Business News

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.

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.

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.

On the eve of the 51th Paris Boat Show, the uncertainty is set at the manufacturers of pleasure boats in 2012, the sovereign debt crisis with little visibility, while the water sports market has improved slightly in 2010 / 2011.

French production increased 11% between September 2010 and August 2011, compared to the same period in 2009/2010, while the world market has increased slightly from 0% to 3%, said the Federation of Nautical Industries ( FIN).

"We are in a somewhat unique because our customers are there, the practice is growing, but at the same time we are in a period when accumulated outside the marine industry factors of concern," said Yves Lyon Caen, Vice President and President of the END of the supervisory board of Beneteau.

"The day there will be a release of the brakes, mainly psychological, the industry will rebound very important," he pointed out, however.

The rate of exports is 67% in 2010/2011, against 63.2% a year earlier.

U.S. GDP grew by 2.5% in the third quarter, annualized. This level was accelerated by the rise in household consumption and private investment. Barack Obama at the press conference on July 15, 2011 on U.S. debt

GDP figures published Thursday in the United States show a marked improvement in U.S. growth and suggest a strengthening of the recovery, indispensable prelude to a decrease of mass unemployment affecting the country. The first estimate of Commerce, the U.S. domestic product grew in the third quarter from 2.5% annualized over the second. The number of government reflects a significant improvement over the spring which saw growth rise to 1.3% after falling 0.4% recorded in the first quarter.

The period July to September is the best quarter of the U.S. economy since the summer of 2010. The ministry said the growth was driven by the acceleration of private consumption and private investment excluding housing, which combined made up 3.3 point rise in GDP. The main obstacle to the improvement of gross domestic product was slowing, very strong, the increase in business inventories, which lost 1.1 points of growth.

Peter Newland, economist at Barclays Capital, the sharp change in stocks of summer is "a sign that companies have responded quickly to the weakness of domestic demand in the first half, and it is unlikely that [the slowdown in output stored] is repeated in the fourth quarter. "

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 current monetary policy of the ECB and the euro boosted hurt German exporters, said the Nobel Prize in economics. Joseph Stiglitz

The American economist Joseph Stiglitz, Nobel Prize in 2001, called the European Central Bank (ECB) to lower its key rate, in an interview published Monday in the German daily Handelsblatt. "The ECB should withdraw its previous increases" in April and July, which increased its key rate from 1% to 1.5%, said Stiglitz.

The economist, known for his critique of liberalism hardcore, says Frankfurt institution should take more account of its American counterpart, the Fed, which intends to maintain its rates at 0% for two years. "The current monetary policy of the ECB pushed the euro and hurt German exporters," he said.

Economists now expect the ECB no longer affects the rate of interest this year because of the new outbreak of the debt crisis, whereas before the institution seemed determined to further tighten its monetary policy in the fall.

Stiglitz has also reiterated its view that if the eurozone were to implode, "it would probably be better than Germany left the monetary union rather than to expel Greece."

The economist also expresses once again in favor of European bonds or "Eurobonds", "a good instrument to control the crisis."

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."

Swedish bank Swedbank said Thursday an operating profit better than expected second quarter and still expected a gradual improvement in its profit before provisions.

The bank generated an operating profit of 4.32 billion kronor (474 ​​million), nearly double the rate published a year earlier, while analysts polled by Reuters had anticipated 4.10 billion crowns .

Its net banking income has increased for the fourth consecutive quarter to 4.7 billion kroner, beating consensus (4.6 billion).

Swedbank also reiterated a forecast continued recovery in the Baltics, Russia and Ukraine.

An intense battle promises to be commercial in the second half of the French automotive market after three consecutive months at half of registrations, a situation still due in June at the end of scrapping.

The new car registrations in France declined last month from 12.6% to 210,236 units, said Friday the Committee of French Automobile Manufacturers (CCFA).A comparable number of working days – June 20 working days counted against 22 in June 2010 – the decline amounted to 3.9%.

Throughout the first half, sales were up slightly, by 1.0% unadjusted and 0.2% at comparable number of working days, a legacy of boost deliveries in the first quarter of the last cars ordered before the end of public support to combat the crisis.

"The market held up well in the first half, but the backlash of stopping the scrapping will be felt especially in the second half," said Flavien Neuvy, director of the observatory Cetelem of the car.

"It is clear that in order intake, sales to individuals down significantly.So we will see probably a commercial battle more intense on the second part of the year to maintain market share. "

He cites as evidence the recent offer of Renault, which offers a two-month Twingo gasoline to less than 7,000 euros in return for the resumption of an old vehicle or a total discount of 30%.

In France, Chevrolet (General Motors) has also tried to relay the impact of state aid in June with several discounts for a "cash for clunkers Chevrolet."

SUPPLY PROBLEMS ON RENAULT ENGINES

If they still monopolize the first half of the eight top spots for best-selling cars in France – led by the Peugeot 207 / 206 +, followed by the Renault Clio and Mégane – the two French manufacturers have suffered more in June their foreign competitors.

PSA Peugeot Citroen and Renault, whose small models have benefited the most from scrapping, saw registrations fall by 17.9% last month, against – 5.1% for foreign manufacturers.

The decline was exacerbated by supply problems still faced by Renault (-29.3% in June against 8.2% for PSA) on its small diesel engines manufactured in Spain.

The OEM sector, shaken by the crisis, is struggling to increase its capacity to deliver some components of the group, difficulties prior to the disaster of March in Japan. The Clio and the Duster, the Dacia 4×4, are particularly affected.

Low cost brand Renault (-44%) is also affected by the drop in demand for the city since the cessation of Sandero bonus GPL.

"We continue to nibble beforehand acquired earlier this year with state aid, but otherwise it's a good month," summarized the spokesman for the CCFA.He said in June the development is consistent with the estimate of the Committee of a decrease of 8% of the French market on the whole of 2011.

Last month before the big break for summer vacation, June marked a slowdown in the decline since the market decline was 8.3% on a comparable basis in May.

Utilities on the market, sales of light vehicles were packed from 10.1% in raw data, while the rebound in commercial vehicles continued with an increase of 36.7%.