International Business News

The group of transportation and logistics Dentressangle Wednesday announced financial results increased in 2011 but noted that economic conditions had deteriorated in late 2011.

The company saw its turnover increase by 5.6% at constant scope and exchange, to 3.576 billion euros. The gross operating surplus (EBITDA) increased 17% to 130.4 million euros while net income rose from 57.2 million to 63.3 million.

"Dentressangle has seen since the end of 2011 signs of slowing economy and observed high volatility of demand for its customers early this year , "the group noted in a statement.

The company, which does not give forecasts for 2012, will offer its shareholders a dividend of 1.25 euro per share for fiscal 2011, against 1.10 euros a year before.

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.

France Telecom has hardened its dividend policy and its promise of deferred stock repurchases facing a price war triggered by the new entrant Free Mobile on the French market mobile telephony.

The incumbent, who on Wednesday released 2011 results consistent with its objectives, expected this year to give priority to the preservation of its balance sheet in a context of de gradation-than-expected economic conditions.

"2012 is the most difficult year for us," said Chief Financial Officer Gervais Pellissier during a conference call, considering that the group could reach a low point this year e before a possible rebound in 2013. 

"We do not imagine that the price war is very long in France. We started at a price level which is extremely low, "he said

. Free has an entry burst onto the market of mobile phones last month with two offers at bargain prices, forcing its competitors in place to review the rates down a portion of their offerings in an attempt to prevent ; expensive an exodus of their subscribers

. While the group led by Xavier Niel has not yet provided the number of subscriber s, France Telecom said on the other hand have lost 201,000 mobile customers from the beginning of the year and February 15, which represents approximately 0.7% of its fleet of 27 million customers in France

. Requests for subscribers seeking portability to switch operators while keeping their digital ; ro peaked at 150.000 requests per day within two days following the launch of Free Mobile, France Telecom said in a statement, adding that this figure has since been divided by ten.

NET CASH FLOW BACK TO THE 2012

In this context of increased competition in France, which still accounts for half of sales in Orange and more than 50% of its total EBITDA, France Telecom expects a significant decline in its operating cash flow expected to 8 billion euros for 2012, against 9.33 billion last year.

Sensed as a part of investors, the group announced an adjustment to its dividend policy.

The group now plans to pay under the 2012 and 2013 earnings to shareholders between 40% and 45% of operating cash flow for the year. 

The dividend should therefore be between 1.21 and 1.35 euros per share for 2012, instead of 1.40 euros previously promised by the group, Gervais Pellissier said.

Also in order to preserve its financial strength, France Telecom has also decided to postpone the redemption of shares, a time considered in the wake of the sale of the group's subsidiary in Switzerland for $ 1.5 billion.

"We believe that the financial circumstances of early 2012 did not allow to continue in that direction today," said Gervais Pellissier.

"It does not mean that there will be no buyback at France Telecom Orange but not in 2012," he added. 

EUROPEAN OPERATORS UNDER PRESSURE

These prudent measures reflect the challenges facing European telcos to continue to grow in an environment of increased regulatory and competitive pressures.

Telefonica has lowered its target for the December dividend it will pay under 2012 in order to control its debt in a context of sluggish economic growth in Spain.

Analysts said France Telecom could have even less hesitation than the dividend, far more generous, offered by the group did not result in a brilliant performance of its stock price in 2010 and 2011. 

"There is no doubt that the group saw little point in paying a dividend for which it has received little or no credit," say analysts at Bernstein Research in a note .

At 10:20, as the advance of 1.53% to 11.62 euros. Since the beginning of the year, it posted a drop of 4.0% compared with a decline of 0.85% of the telecoms sector index.

The full year 2011, the Group generated a turnover of 45.28 billion euros, against 45.27 billion expected on average according to Thomson Reuters I / B / E / S.

The adjusted EBITDA was $ 15.083 billion, giving a margin of 33.3%, limited decline of 1.1 points, thanks in particular to the resistance displayed by activities in France, despite already increased pressure on prices, most operators have anticipated since last year the arrival of Free. 

The group has seen its share of conquest in broadband up to 30.5% in 2011 thanks to the success of its offers "quad play" Open totaling 1.2 million customers in late last year.

Societe Generale on Thursday posted a profit below expectations for the fourth quarter due to increased losses in its banking activities and investment banking (CIB) of Due to the crisis in the euro area and said to remain cautious this year.

The bank said in a statement it had passed a new provision of € 162 million on government debt in the last quarter of 2011, bringing its funding to 75%, as its rival BNP Paribas.

In CIB, being restructured due to the crisis, the group posted a net loss of 482 million euros.

Its quarterly net income of spring suddenly falling from 88% to 100 million euros. 

"I remain generally cautious for 2012," said Frederic Oudéa, the bank's CEO, on CNBC. "I'm happy with the start of the year in respect of market activities."

The consensus reached by the editor of Reuters expected a profit of 190 million euros for the last three months of 2011, a drop of 78%, including a loss of only 81 million euros in the BFI.

"The dollar liquidity needs of corporate banking and investment have been reduced by about 55 billion USD in the second half," said the bank, which have added accel ; Lere disposals in its portfolio of toxic assets in the second half of 2011.

These sales had a negative impact of 524 million euros on revenues of the BFI on the fourth quarter alone. 

Wednesday, BNP Paribas has reported better than expected results in the fourth quarter. In addition to reassuring the leaders of 2012, analysts point out that the bank financing and investment of the BNP was more resilient in the crisis than its main competitors.

At the Paris Bourse, before publishing the results of the bank, title company generally closed up 2.19% to 22.38 euros. He won 30% since the beginning of the year after plunging 57% in 2011.

A Greek on the bankruptcy of the two countries would prefer to austerity. A fault on the entire Greek debt may however have dramatic consequences for the population. Unless you are organized within the framework of European solidarity. A poster of German Chancellor Angela Merkel and the IMF director Christine Lagarde pinned to the Greek Parliament during a protest against austerity in Athens, February 12, 2012.

According to the government, the Greek parliament chose Sunday to accept the austerity imposed by its creditors in order to avoid bankruptcy and stay in the euro area, after a parliamentary vote in favor of a draconian austerity program. The vote Monday was hailed by EU leaders. European Commissioner for Economic Affairs Olli Rehn, this is "a crucial advance". "We expressly welcome" the vote "demonstrates the willingness of Greece to undertake difficult reforms," ​​responded his side the German chancellery. Markets also liked. The main European stock markets ended higher Monday moderate – Paris gained 0.34%, 0.68% Frankfurt and London 0.91%.

The relief of markets and European partners in contrast to the violence of the demonstrations that greeted the vote in Greece's plan. Neoclassical buildings ravaged by fire, windows broken: according to official counts, 45 buildings were totally or partially damaged on the night of Sunday to Monday. The Ministry of Health has reported 54 people injured and 68 police wounded in its ranks. The law passed by the House includes indeed Greek for a particularly painful for the population (further cuts in wages and pensions and a new wave of job cuts in the public service) to save 3.3 billion euros in 2012 .

This vote is a first step towards providing loans of 130 billion euros and deletion of part of the country's debt. It avoids bankruptcy which threatened the country while Greece has to repay 14.5 billion euros of debt in March. But it does not solve fundamental problems affecting the Greek economy. The country is moving toward a slow disintegration. In January, the expected tax receipts fell by 7% when they were to increase by 9% according to government forecasts. "Greece is the perfect illustration of the adage" too much tax kills tax "[the Laffer curve, note], believes Jesus Castillo, an economist at Natixis.  

Social explosion

For two years, the Greeks are subjected to a drastic course of rigor, consisting primarily of tax increases and lower salaries. Result: the economy atrophies at high speed, she should know in 2012 a fourth consecutive year of recession. The Greek population is impoverished – their standard of living has fallen 50% in two years – and unemployment is over 20%. Above all, they see no crisis: austerity accentuating the recession, the deficit reduction targets are not met and the government is obliged to take further fiscal savings.

Today, Greeks are tired. A poll conducted these days by the institute and published by the RASS news247.gr site notes that 48% of Greeks prefer bankruptcy to austerity against only 38% who agree to pay for the rescue of their country. For Thibault Mercier, economist at BNP Paribas, "bankruptcy of Greece would be terrible for the country is better austerity, admittedly painful, and the pursuit of fiscal adjustment in return for funding from the EU and the IMF." Who says bankruptcy, said failure on the entire government debt. In doing so, the country would no longer have to pay interest charges and his government deficit would be lowered by 6 points.

But there would still be three point deficit to finance (6 billion). A default would result in further losses for banks Greek equivalent to 200% of their equity. In other words, they would go bankrupt and would need to be recapitalized to the tune of 60 billion euros. But Mercier said Thibault, "nobody wants to lend money to Greece, nor Europe, let alone the markets." The only solution for the country would be to leave the euro area, restore the drachma, to devalue sharply and to print more money to finance the government and banks. With consequent high inflation and a dramatic decline in the purchasing power of households – Greece imports more than it exports.

Organize bankruptcy

Should we then continue on its current path, that is to say, lending money to Greece in return for ever more severe austerity? "No, because Greece is insolvent and lend him more money is useless," said Jesus Castillo. It would take a reduction of 110 percentage points of GDP of the entire public debt of the country to restore its fiscal solvency, against 40 points for entering planned in the European rescue plan. It would also reduce by 25% for rebalancing demand within the trade balance. It's impossible.  

"A cancellation of almost all Greek debt, the equivalent of bankruptcy, is the only solution, says economist of Natixis. But it must be done in a cooperative situation at European level." In other words, the country would remain in the euro area and its partners would lend him enough to recapitalize its banks and invest in its economy to restore its competitiveness and, ultimately, permanent improvement of its growth. The default solution is a political choice that European leaders do not seem to be willing to do. Because it could set a precedent and lead to a contagion effect to other countries in the euro area. Otherwise, it is feared that the Greek crisis continues much longer do.

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.