International Business News

The European Central Bank is considering to extend the maturity of its loans to banks in two or even three years, wanting to prevent the crisis in the euro area does not cause a "credit crunch" that would stifle the economy, we learn of sources familiar with the matter.

The ECB considers this unprecedented opportunity, while growing fears of an explosion in the euro area affect the interbank market, banks tend to reduce the number of establishments to which they lend.

For now, the maximum maturity of liquidity operations of the ECB is one year.A bank to finance two or three years from the ECB, it could be misinterpreted. "

Another source said that the ECB was considering the possibility of providing liquidity to maturity in the same vein through several short-term loans, pledging to keep such a line of credit for a period up to three years.

In June 2009 the ECB has proposed for the first time refinancing operations to one year. She repeated this year with a LTRO to 12 months in October and 13 months in December.

After the state budget, MPs are looking at the Social Security budget for 2012. Objective: To reduce the deficit by more than four billion euros. Some proposed measures to achieve this will give rise to heated debates. The Palais Bourbon.

Members look from this Tuesday the draft budget law for 2012 Social Security (PLFSS). The 2012 budget for a deficit Safely down 25% from 2011, to 13.9 billion euros. The improvement is mainly on account of the austerity plan announced in late August 11 billion by François Fillon.This plan includes an increase in payroll taxes on capital income, a rise in prices of tobacco and alcohol, and especially the doubling (from 3.5 to 7%) Tax on Contracts for Health "solidarity and accountable "for complementary health.

The measure, passed in September during the 2011 supplementary budget and expected to bring $ 1.1 billion in 2012, is widely criticized. It should indeed lead to higher rates of 4.7% on average in 2012, according to the French Mutuality who also warned of a "major risk" to access to care of the population. To appease critics, including relayed by the Socialist deputies, the government passed last week in committee an amendment raising the income ceiling to qualify for assistance from the state to acquire a complementary health.Currently, only 532,000 people benefit from "health check" as two million are potentially eligible.

Another tax has already been much talked about: the tax on sodas. The terms of this new beverage tax added sugar formed during the debate on the draft 2012 budget law a bone of contention between MPs and the government. The first wish to also apply to beverages with sweeteners in order to double the revenue, while the latter can be influenced by lobbying from Coca-Cola refused to tax all sodas, on behalf of the fight against obesity. Finally, the Assembly voted two taxes: one on the sugar added to soft drinks (two cents per can) and on drinks containing artificial sweeteners.Manufacturers of sweeteners and the National Union of soft drinks were outraged.

Right and left opposed to lower sickness benefits

Among the steps that are to vote, that reforming the calculation of compensation for the disease is probably the most criticized by the left but also from the right. The government has decided by decree, applicable from 1 January 2012, the per diem currently 50% of gross salary would increase to 60% of net wages. A key, 220 million of additional revenue for health insurance. Seven million French are concerned, first 30% of employees without a contract contingency.This measure would reduce from 40 euros per month for an employee paid at minimum wage and 85 euros for a frame.

There is no doubt that MPs from all sides – including the UMP president of the Committee on Social Affairs, Pierre Mehaignerie, and the General Rapporteur of the Social Security budget, the UMP-Yves Bur, who unsuccessfully opposed the measure in committee, will return to the load session. Especially since they have already voted, in committee, a compensation: submit to payroll benefits of breach of employment contract if they exceed twice the maximum Social Security, or 73,000 euros.

For another battle: the project promoted by the budget minister, Valérie Pécresse, to submit to the CSG compensation for parental leave.MEPs decided in committee and unanimously not to retain the provision that the expected return is 140 million. But the government could push through. Finally, an amendment tabled today by the UMP deputy Philippe Meunierne, co-signed by 67 deputies, should also lead to heated clashes between the majority and the opposition. This is the book Solidarity allowance for the elderly (minimum age) only to "French, European and foreign nationals who fought for France".

This allocation – 742.27 euros per month for a single person and 1181.77 euros per month for a couple-cost 612 million euros a year. In the statement of reasons for the amendment, argued that Philip Meunierne of 70,930 recipients, 22,803 are foreign nationals outside the European Economic Area.The deputy of the Rhône amounts to "more than 200 million" euros savings resulting from the adoption of the amendment.

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.

The three main French banks signed Wednesday in mid-session the worst stock market performance of the European banking sector, some operators are continuing to worry about their access to liquidity despite the increase in denials.

At 12:45, while European bank index fell slightly by 0.56%, BNP Paribas, Credit Agricole and Societe Generale dropping 5.58%, 2.91% and 2.57% respectively.

Some analysts explain the sudden drop in BNP Paribas by the fact that it had best withstood the market turmoil of recent weeks, the course has not, unlike its two competitors, its lowest market in 2009.

For BNP Paribas, which is currently rated at nearly 24 euros, the lowest in 2009 had been hit in January to 20.08 euros.

Christophe Nijdam, an analyst covering the banking sector in Alpha Value, says that fears about the liquidity burden on French banks and the various interventions of politicians and industry have failed to appease the spirits.

Frédéric Oudéa, CEO of Societe Generale and president of the French Banking Federation (FBF), said Wednesday in an interview with Le Figaro, that the situation was "under control" in French banks' liquidity.

"In addition, information Tuesday on fears of withdrawal of deposit of large companies can have a snowball effect," added Christopher Nijdam.

The German group Siemens has withdrawn funds beginning in July of Societe Generale, a source told Reuters that it was due to the underperformance of its investment, but the news was interpreted by some in the market as indicative of the financial health of the bank.

"Foreign investors will not touch these actions (BNP Paribas and Societe Generale) because they are afraid that there are skeletons in the closets of these banks," commented one Paris trader, adding that in his opinion such fears are "totally unfounded".

The decision of Standard & Poor's to lower the sovereign rating of Italy, although it was expected by the markets, also helped fuel the fears of contagion from the crisis of debt in the euro area.

The Tokyo Stock Exchange finished up 2.25% Friday, the coordinated action announced by major central banks easing fears of a credit freeze in Europe.

The Nikkei took 195.30 points to 8,864.16 and the Topix, broader, ended up 16.37 points (2.18%) to 768.13.

Financial stocks have borne the market after major central banks are expected to cooperate to provide banks with dollar loans to three months to prevent freezing of the money market which would be caused by the crisis of sovereign debt in Europe.

The debate over the possible lack of Greece and the prospect of another banking crisis are precisely the two main topics that will be addressed Friday and Saturday, European finance ministers on the occasion of an Ecofin Council again decisive.

"If the meeting is able to allay the fears of contagion from the euro area and American values ​​continue to rise, the Nikkei could rise above the 9,000 points next week," said Mitsushige Akino, manager funds at Ichiyoshi Investment Management Co.

Require the recipient of the RSA base to work one day a week, without offering additional training or support, will not help them find new jobs, says Matthew Angotti (Federation of Associations of insertion). Former Secretary of State for Active Solidarity, Marc-Philippe Daubresse, submitted a report to Nicolas Sarkozy Wednesday, September 14, 2011, which makes 22 proposals to reform the RSA.

In a report submitted Wednesday to Nicolas Sarkozy, former Minister of Solidarity Marc-Philippe Daubresse proposes to employ the beneficiaries of the RSA one day a week, paid at minimum wage. The activities concerned will have to be socially useful and cover needs that are not, such as DIY, waste collection, maintenance of heritage, home services, etc..Only persons "capable of work" would be affected (a third of the beneficiaries of RSA base). Any refusal would be punished. This report hopes to defuse the controversy launched in the spring by some members of the majority and the Minister Laurent Wauquiez, who had proposed to work for free RSA recipients. These proposals are in the right direction but remain largely inadequate, says Matthew Angotti, Director General of the Federation of Associations of insertion (Fnars). Interview.

What do you think of the proposal to employ the beneficiaries of the RSA for pay?

Compared to the proposed Laurent Wauquiez, there are two positive developments. First, we return in the labor law, contract with a single insertion (CUI) that already exists and it is not free but paid work at minimum wage.Then, targets only those capable of work, allowing social workers in the field to decide the conditions to be met.

Is it a positive step for the return to work?

No. This is not working 7 hours per week in odd jobs such crafts as one leaves lasting insecurity. There is even a big risk to keep the beneficiaries in a precarious state. This should not be the lasting solution but a starting point of a trajectory employability, including the following steps would be to get these people to vocational training and coaching increased to find a job. However, the report says nothing about Daubresse training and support. As it stands, this is like a manipulation to lower unemployment figures.

The report suggests Daubresse to strengthen sanctions for refusal of beneficiaries to work. Is it necessary?

It's communication. How pathetic to suggest that the unemployed will not work. Above all, it makes no difference: recipients of the RSA are already obliged to accept job offers or assisted contracts offered to them, or risk seeing their benefits reduced or eliminated. The problem is that offers them nothing.

In addition to training and support, are there other gaps in this report?

Yes, two major. The first concerns the RSA youth. Currently, the access conditions for the RSA under 25 are too restrictive. This leaves thousands of young people in a very precarious.The second is the level of RSA: consider that in France you can live with 450 euros a month is ridiculous! Of course, in times of austerity, I'm not asking that the amount be doubled, but it would still fund a reflection on what we consider to be the minimum decent standard of living.

The Tel Aviv Stock Exchange, one of the first to open since the downgrade of U.S. sovereign debt, plunged 6% on Sunday morning.

Transactions have started almost an hour late because the automatic interruption began on when the exchange of pre-market fell more than 5%.

For the first time that these "circuit breakers" trigger from 21 September 2008, after the bankruptcy of Lehman Brothers, said a spokesman for the Exchange.

In mid-session, Tel Aviv 25 index showed a decline of 6.2%.

Stock traders fear that the United States, indispensable economic partner of Israel fall into a recession, which could promote the degradation of the sovereign rating by increasing the cost of borrowing.

JCDecaux announced Friday a lower growth of its sales in the second quarter, hit by the difficulties of the countries of southern Europe and the bases of comparison difficult.

World number one outdoor advertising company in front of the U.S. Clear Channel Outdoor has said it expects a stabilization in the third quarter, with growth of the same order as the previous three months.

The French in the second quarter generated a turnover of 634.7 million euros, representing organic growth of 4.3% from 7.8% in the first three months of the year.

This figure, higher than the 4% target announced by the group, however, appears below market expectations which projected 4.6%, according to estimates by nine analysts.

Referring comparison bases demanding (11.3% in the second quarter of 2010), the group warned that its economy is slowing in the second quarter as its competitors Omnicom and Publicis have seen their growth accelerate over the period.

In the first half, JCDecaux has posted a turnover of 1.17 billion, in line with market expectations, representing organic growth of 5.8%.

The action has opened up 1.4% to 19.47 euros.It was down 15.4% since the beginning of the year against a decline of 8.3% of the European sector index.

DISPLAY AT THE PENALTY

"While concerns remain about the economic outlook in the short term, we are confident in our ability to generate solid growth in our business," it said in a statement Jean-Francois Decaux, CEO and Co-CEO .

JCDecaux has signed a significant increase in revenues in the Asia-Pacific and "Rest of the World" (respectively 19.8% and 31.4%) which was however overshadowed by a slowdown in the UK and France and persistent problems in Southern Europe.

The group's operating margin stood at 260 million for a rate of 22.2%, unchanged from the first half of 2010.The market expected a slight improvement with a margin of 268 million for a rate of 22.8%.

The margin was mainly impacted by the activity of display that saw the decline in sales accelerated in the second quarter to -4.9% after -2.1% over the first three months of the years.

The transport division, however, maintained a high growth rate, signing an increase of 16.9% in the first half, while the furniture, the first division in terms of revenues, rose a moderate 2.4% .

JCDecaux has reduced its debt to 264.2 million against 358.8 million at end-December and has a cash flow of 106.9 million euros.

The group has openly expressed interest in CBS Outdoor, a subsidiary of the American CBS, in order to strengthen its presence in the United States.

"So far, nothing has changed", however, said Jean-Charles Decaux, co-CEO of BFM Business.

BP reported Tuesday a profit below expectations in the second quarter of weak results over the months to come, while promising a long-term growth likely to calm the impatience of its shareholders.

BP's net income falls to replacement cost to $ 5.31 billion (3.66 billion euros) in the second quarter, compared with a loss of 16.97 billion dollars a year earlier due to the huge oil spill in the Gulf of Mexico.

Excluding items, the result stood at 5.61 billion dollars against 6.02 billion average expected by analysts polled by Reuters.

BP appears to receive less than its competitors to higher crude oil prices, up 50% over the previous year.

At midday, BP lost 2.4% while the Stoxx European sector fell by 0.4%.

Investors lament the poor performance on the stock exchange for nine months although some signs that the final bill of the oil spill will probably be lighter than expected.

The oil company said that maintenance work in the North Sea and Angola as well as the result of the accident in the Gulf of Mexico drew down its quarterly results and will continue to weigh on its performance in the second half.

Its oil and gas production fell 11% in the quarter following the sale of deposits required to foot the bill for the oil spill.

The Group Chief Executive Bob Dudley said agreements to secure new reserves this year would support the group's performance in 2012 and 2013.

"We will see the true value of our business better reflected in the price of our action," he told shareholders.

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%.