International Business News

The major European chemistry warned Thursday the announcement of their results as demand slowed in the construction sector, compounding their problems related to rising commodity prices.

BASF, the world leader in chemistry in terms of sales, announced Thursday a quarterly profit above expectations, but warned that its growth was slowing, clients sell their stocks.

"BASF's customers are more cautious, reduce inventory and postpone some of their orders in hopes of a possible drop in prices," explains the German group said in a statement.

The chemical sector is highly dependent on investments in highly cyclical sectors such as automotive or construction, which makes it more vulnerable to economic downturns.

In addition, the high cost of operation of its huge factories plunged the benefits as soon as the demand and the rate of capacity utilization decreases.

The slight decline in oil prices since last May, however, somewhat reduced the rising costs of certain petrochemical feedstocks.

"Europe seems to be the worst of markets.We were very pessimistic about the prospects for growth, assuming we can even talk about growth, "said Jan Hein de Vroe, an analyst at ING.

"They keep all their earnings forecasts, but they were at the base not very restrictive," he added.

OBJECTIVES LOWERED

The Belgian Solvay, which in September bought its French rival Rhodia, said the demand for vinyl and specialty chemicals had slowed, while maintaining its forecast of net profit up on its activities in plastics and products chemicals.

Rhodia also confirmed its own perspectives.The French group posted a recurring EBITDA (REBITDA) of 273 million euros against 235 million a year earlier. Its turnover was 1.67 billion euros against 1.36 billion a year earlier.

German Bayer has meanwhile indicated that its MaterialScience arm, which produces the clear plastic used for panoramic roofs coupe convertible SLK Mercedes (Daimler), this year would have an adjusted operating profit of 1.3 billion euros.

Bayer previously provided a similar result to that of last year (1.36 billion euros).The group justified the downward revision by higher prices of raw materials and energy.

Bayer, however, confirmed its outlook and published a comprehensive annual quarterly results better than expected thanks to strong growth in emerging markets.

Last week, Dutch AkzoNobel, the world leader in paints, had abandoned its 2011 profit target, involving the slowdown in economic growth and rising costs, including titanium dioxide (TiO2), a pigment white.

Tuesday, the American DuPont, which produces titanium dioxide, announced quarterly earnings higher than expected.

The placement of the French No. 1 would be the victim of a crisis of confidence? Withdrawals from contracts of life insurance were up 1.8 billion euros in deposits last month. Life insurance, savings, piggy.

Withdrawals from contracts of life insurance on deposits were higher in September, a phenomenon already observed in late 2008, according to figures released Monday by the French Association of insurance.

The net outflow of insurance contracts reached 1.8 billion euros in September, confirming the dire straits facing the preferred placement of French. In September, 9.7 billion have been placed on these contracts. In nine months, the collection of contributions amounting to 98 billion euros, down 11% over the same period in 2010, the association said in a statement.

In detail, 83.4 billion were paid on the supports euros and 14.6 billion euros in the media unit of account (capital not guaranteed). "An outflow of EUR 1.8 billion does not affect the attraction of investors to the guaranteed investment whose remuneration is attractive," said the President of the French Federation of Insurance Companies (FFSA) Bernard Spitz, in an interview with Le Figaro newspaper published Monday.

He said the phenomenon of redemption affects only a little more than half of the 11.5 billion euros of withdrawals, which also reflect the aging population, with retirees who are drawing more and more in their life insurance.

A Booklet has not particularly benefited from the alienation found in September for life insurance, recording an average level (1.13 billion euros).

The Slovak government resigned and the main opposition party agreed Wednesday to support a strengthening of the European Financial Stability Fund (EFSF) on the occasion of a new parliamentary vote by Friday.

The leaders of three of the four parties in the coalition government met with the leader of Smer, following the rejection by members of the EFSF reform and the resignation of the government of Iveta Radicova, which was liable the vote.

Of the 17 Member States of the euro area, only Slovakia has not yet ratified the plan that strengthens the powers of the EFSF to fight against the debt crisis.The green light 17 is required for its entry into force.

The Smer, which supports the EFSF in principle, abstained from the vote, causing the development of minority government. A new vote in Parliament to be held by no later than Friday, said the leaders of the majority party, the Slovak Democratic and Christian Union (SDKU), and Smer, Robert Fico and Mikulas Dzurinda.

"We decided that during the parliamentary session (Thursday), we will work on a proposal to shorten the election period to conduct an election on March 10.Immediately after, tomorrow or Friday, we will discuss proposals related to EFSF, "said Mikulas Dzunrinda, who was foreign minister of the government resigned, at a press conference.

"With this agreement, and the laws associated EFSF may be approved either tomorrow night or Friday morning at the latest," said Robert Fico.The vote, he added, "will take place immediately after the adoption of the constitutional law on holding early elections in March 2012."

The Smer remain in opposition until the deadline of March.

The increase in lending capacity of EFSF to 440 billion represents a contribution of 7.7 billion euros in Slovakia.

"RAPID ADOPTION"

The day after the rejection of the text, the presidents of the European Union and the European Commission, Herman Van Rompuy and José Manuel Barroso, urged Slovakia to approve as soon as possible the expansion of the EFSF.

"We call on all parties in the Slovak Parliament to overcome the short-term political considerations and use the next opportunity to quickly adopt a new agreement," they wrote in a joint statement.

"We remain confident that the Slovak authorities and the Parliament are well aware of the centrality of having a stronger European support fund to preserve the financial stability of the euro area.And this in the interest of all countries have adopted the euro, including the Slovak people. "

Under pressure from its European partners, President Ivan Gasparovic, who must nominate the next prime minister, cut short a visit to Asia and is expected to return to his country Thursday.

Iveta Radicova asked Mikulas Dzurinda, the head of SDKU, to initiate discussions also involving two smaller parties in the governing coalition.

The Freedom and Solidarity Party (SAS), the fourth component of the coalition that refuses EFSF, will not take part in the new round to break the deadlock.

The Sas had refused to ratify the European level, in accordance with the position of its leader, Richard Sulik, who estimates that less wealthy countries in the euro area do not have to incur expenses for the rich as Greece .

Over a third of French say they have experienced "a situation of poverty" at least once in their lives, according to an Ipsos for the Secours Populaire. The respondents considered 92% as a "poverty" the fact of "regularly experience significant difficulties in obtaining a healthy, balanced diet."

Over a third of French (35%) say they have experienced "a situation of poverty" at least once in their lives, a proportion rising, says an Ipsos for the Secours Populaire announced Thursday. This rate of 35% is seven points higher than in the previous survey in 2010.

Nearly one in four French people (22%) also indicates that it is "ever had (to) say, at a time of (his) life, that (he was) on the verge of a situation poverty ", but he finally experience it.

Sign considered "alarming" by Secours Populaire, "young people are increasingly concerned", "ages 15-34 are almost a third of French (29%) who have experienced job insecurity." "They were only 22% in 2010."

And 85% of respondents believe that "the risk (their) children know one day a situation of poverty are higher than for (their) generation" for 50% risk is "significantly higher" for 35% they are "slightly higher". Only 11% consider them "lower".

The French set the poverty line at 1,031 euros per month for a single person, a figure "stable" compared to 2010, "a little below the minimum wage (1070.76 euros net per month), but always" superior to 954 euros the official poverty line calculated by INSEE. "

The respondents considered 92% as a "poverty" the fact of "regularly experience significant difficulties in obtaining a healthy, balanced diet." But they are also likely to discuss the fact of not being able to "send their children on holiday at least once a year" (73%) or not being able to "access goods or cultural activities and entertainment for himself or family "(71%).

Survey conducted by telephone August 19 and 20 with a sample of 1,016 people representative of the French population aged 15 and over, by the quota method.

U.S. President plans to eliminate many tax loopholes that benefit high-income.

Barack Obama spoke for the first time Monday of tax increases to finance his plan. They would focus on eliminating the tax exonératons enjoyed by businesses and the wealthiest Americans. They would include the elimination of tax loopholes for oil and gas companies, owners of business aircraft and households with annual incomes exceeding $ 250,000.

Obama, candidate for re-election in November 2012, and Republicans have already clashed in December 2010 on the issue of tax breaks inherited from the era of George W. Bush. After a hard-won compromise, these measures were extended until the end of 2012.The announcement on taxation provoked an immediate reaction from the majority leader in the House, Eric Cantor: "I really hope that the president is not proposing that we pay for his proposals with a massive increase in taxes at the end of 2012 to create jobs that we rely on to reduce unemployment, "he warned.

"It is fair to say that this increase in taxes on job creators is the What kind of proposal rejected both parties in the past," said meanwhile Brendan Buck, spokesman for the president the House of Representatives John Boehner, leader of Republicans in Congress.

The job plan proposed Thursday by President Barack Obama is betting the recovery of consumption and public investment, at a time when the U.S. desperately needs growth drivers."Ultimately, our recovery is not caused by Washington, but our businesses and workers. But we can help," Obama said in Congress.

Growth in need of help. Fell to levels starving this year (0.7% annual rate in the first half), it is very far from being able to reduce unemployment, stuck at 9.1%. The presidential plan of $ 447 billion is allocated according to the encryption of the White House, from 57% of tax cuts and 43% of expenditure. Obama wants to invest just over $ 100 billion in the rehabilitation or construction of transport infrastructure and telecommunications, schools and homes or business premises vacant.

He also hopes to put more money into the pockets of employers and employees by giving up more than $ 250 billion in tax revenue. Hope this will help private consumption.The rest must supply targeted measures to job seekers or maintenance of public employment. Such a plan "would give a significant boost to GDP and employment in the short term," analysts have estimated the Macroeconomic Advisers, whose monthly estimates of GDP are used for dating recessions and expansions in the United States. For 2012, Macroeconomic Advisers estimated 1.3 percentage point contribution to growth, and 1.3 million jobs for the job.

Mark Zandi of Moody's Analytics, expects 2 percentage points and 1.9 million jobs. He sees "a commendable effort" of the president, but remember the risk that the plan be cut by Congress, which elected Republicans reject new spending. "There are compelling reasons why the Obama administration and Congress should provide more budgetary support to the economy," argued economist.For Goldman Sachs, instead of removing 1.1 percentage point of growth without the plan, fiscal policy in 2012 would add 0.4 percentage points with the plan.

"The private forecasters said in their initial assessment, it would make a very substantial contribution to growth at a time when we need it, and it would help to put hundreds of thousands or more Americans to work," welcomed the Treasury secretary, Timothy Geithner.

"We believe the prudent and responsible thing to do now is to do more for the short-term growth," he added, in an interview on Bloomberg TV channel from Marseille.

Economists noted that Obama had not discussed the financing of these measures at this point. "The president proposes to reduce social security contributions and the financing of social protection.Yet it remains the greatest threat to long-term solvency of the United States, "said Jason Schenker, Luxury Economics. To offset the cost of those measures, Obama announced for September 19" plan deficit reduction more ambitious "than the present. No details are known at this time. To M. Schenker, it shows" that the chances of a positive effect on the labor market and the economy are limited " .

The government target of 2% growth for 2011 in France will be difficult to achieve because of poor economic health of the United States said Monday the president of French employers Laurence Parisot.

"It's difficult simply because the United States are not going well, this is one of the main economic engines of the planet. This is something that seems very difficult to achieve," she said of France 2.

The president of MEDEF was speaking after the publication of statistics showing that French growth was zero in the second quarter, which suggests that the figure for the year would be around 1.4% or below , according to economists.

Laurence Parisot, however, wants to be optimistic."Growth is something that is earned every day through work, innovation, boldness, creativity. If we do not show discouragement, we can continue to get these points of growth," she said.

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.

The new car registrations in France were charged in July the fourth consecutive month of decline, and the Committee of French Automobile Manufacturers (CCFA) maintains its forecast of a decline of 8% to 10% of the market this year with the end of scrapping.

The CCFA said Monday that new car registrations in France fell by 5.9% last month to 159,945 units. July 2011 had counted 20 working days, one fewer than in July 2010, the decline in comparable number of working days (CJO) stood at 1.2%.

"July is an important month for the market before the August break, performance remains quite good," said a spokesman for the CCFA."It turns well to a decrease of 8% to 10% throughout the year as it will be impossible to trace levels of late 2010."

The French market continues to nibble advance acquired in the first quarter, delivery period of the last cars ordered before the end of the scrapping. In the first seven months of the year, it remains still rising, but only just (0.2%).

Demand is traditionally strong in July before the last burst of holiday departures. In June, the market shrank from 12.6% in raw data – and 3.9% on CJO.

"No real surprise in July, a small decline.The market is now entering a phase worst, with a second half ahead mechanically more difficult, "said Philippe Barrier, industry analyst at Societe Generale.

THE PRODUCT MIX OF BENEFIT TO FOREIGN

The scrapping has benefited mainly small cars and French manufacturers, which is a great specialty, the 'product mix' has rebalanced toward larger models since the end of aid.Foreign manufacturers such as Volkswagen's German (7%) benefit.

In July, registrations French manufacturers have fallen by 9.3% – those of PSA Peugeot Citroen fell 7.0% and Renault's 12.4% – while sales of foreign manufacturers have declined only 1.2%.

Of these, however, Italy's Fiat showed a fall of 22.8% across the group because of its high exposure to the city car segment.

The performance of the Renault group in the past month hides a wide disparity between the low cost brand Dacia (-48.8%) and diamond brand (-2.7%).

Dacia continues to suffer from supply problems in diesel engines because many manufacturers in Spain and Turkey fail to keep up with demand, and the fall in sales of LPG Sandero since the abolition of the government bonus for this type of engine.

In contrast, commercial offers for motorists to shift to diesel fuel to alleviate the supply problems have borne fruit on the Renault brand.

The market for light trucks for its part, experienced declines of 11.8% unadjusted and 7.4% on CJO, reflecting the slowdown in economic activity during the summer.

However, registrations of trucks still rose 34.6%, this segment continued to benefit from favorable comparisons because the restart was later.

Same causes, same effects: the trade deficit of France in May broke the record set the previous month, due to higher imports, especially energy, and relative weakness of exports.

The negative balance of trade balance rose to 7.422 billion euros, after 7.174 billion in April, according to figures released Thursday by Customs.

The first five months of the year, the French trade deficit thus came to 33.4 billion, a figure up 60% year on year and is already nearly two-thirds of the annual deficit in 2010 (51.4 billion).

This rapid deepening can be explained by a combination of French weakness in exports and strong imports.

A 34.2 billion euros in May, exports are still unable to find their average level of the year preceding the outbreak of the financial crisis in September 2008, an average of just over 35.4 billion.

"France is among the major industrialized economies (excluding Japan), which recorded the lowest export growth after the trough of the crisis," said Alberto Balboni economist at research firm Xerfi.

Meanwhile, imports are installed at over 41 billion per month, a level higher than before the crisis.This partly explained by the surge in oil prices, which inflates the energy bill of France.

But this structural factor is not sufficient alone to explain the steady decline in the trade balance: it only amplifies the persistent weakness of French industry for export.

"AÉRODÉPENDANCE"

Thus, while the trade deficit in manufacturing has more than doubled in less than a year (4.8 billion in May), the excess of transport equipment was divided by three and that of the food industry has increased by less than 200 million euros.

Secretary of State for Foreign Trade, Pierre Lellouche, this resulted in competition increasingly fierce global in areas such as rail or nuclear.

"For a long time, the weaknesses of foreign trade in France were obscured by the so-called 'major contracts,'" he told reporters Thursday."But customers of yesterday have become the competitors of today."

For its part, Alberto Balboni of Xerfi, highlights the significant decline in aerospace exports (-6.2% over one month) and he sees "some evidence" aérodépendance 'of France, aerospace accounts for more 10% of French exports and any slowdown in performance has a significant effect on the external accounts of the country. "

In May, France has sold its 21 Airbus reported 1.334 million euros against 26 in April to 1.702 million.

The deficit in April had increased partly because of the purchase by Air France-KLM.In the aftermath, hundreds of MPs had called the airline to choose Airbus rather than Boeing for its next big order, expected this fall.

Even if the services are doing probably better than the manufacturing sector, these figures confirm a sharp slowdown in economic growth in the second quarter, said Dominique Barbet, senior economist at BNP Paribas.

"The growth of gross domestic product in the second quarter (+0.3% at best) should be much lower than the first (+0.9%)," he wrote in a research note.

Nearly 10% of European insurers expected to increase their capital in the case of a severe economic shock with a falling stock markets and interest rates and a housing market crash, said Monday the European regulator Insurance EIOP.

Thirteen insurers, in this case, have a collective deficit of own funds of 4.4 billion euros compared to the minimums required by the Solvency II rules, says the regulator, who unveiled the results of tests to gauge the strength of sector.