International Business News

Positioning high-end of Germany and its strong presence in emerging markets, causing a record growth, should protect Europe's largest economy from the impact of an economic slowdown in the U.S. or its neighbors in the euro area.

During the last two decades, German companies are well established in the markets of emerging Asia and Latin America, particularly in infrastructure which these economies need to grow.Germany and last year signed a cooperation agreement with Brazil to develop the infrastructure needed to organize the World Cup soccer in 2014 and the Olympics in 2016.

Controlling the production of capital equipment up-end the German strategy was used. Indeed, the demand for these products is very strong, and machinery and commercial vehicles alone representing nearly 50% of German exports.

"We are well represented in many markets that are now very important, but which were not specifically before.We are better represented than others, "says Volker Treier, chief economist of the Chamber of Commerce and Industry (DIHK).

This good exposure to growth markets is reflected by good orders to German companies, even as mature economies like the United States, struggling to recover.

Orders in the German manufacturing sector have increased by 3.2% on month in June, after a strong second quarter showing a growth of 2.2% over the first three months of the year, the strongest growth since the reunification in 1990.

Businesses benefit directly from this favorable environment.Of the 30 groups listed on the DAX index, 23 of them have published results above market expectations in the second quarter, and 12 have raised their forecasts.

EXPORT DEPENDENCE

But the economic profile of Germany, focusing on exports, has its downside.Last year, at the height of the recession, German exports have dropped sharply, causing an economic contraction of 4.7%, higher than the average contraction across the euro area – 4.1%.

"The sensitivity to exports has struck the German economy in 2008 and 2009, and now she supports a remarkable growth," explains Niels Thygesen, professor of economics at the University of Copenhagen.

During the recession, foreign groups often had no access to funds for the purchase of German equipment, explains Volket Treier. "Often, the financial structure does not follow.(…) Now, repeat orders. "

These include small and medium businesses, often family, the famous Mittelstand, which form the backbone of the German economy.

SUPPORT HOUSEHOLD AND CONSTRUCTION

Another key factor in recovery: households.German consumers, known for their sense of savings, have supported the growth in the second quarter after starting the year marked by sluggish consumption.

The construction sector also contributed to the improved economic situation of the country, bouncing over the period April to June after a particularly harsh winter, which had greatly affected the industry.

Economists expect growth in the German economy at least 3% in 2010, prompting the country's trade unions to demand a high wage growth, after agreeing to tighten its belt during the greater part of the decade elapsed.

Such a decision would certainly erode the competitiveness of Germany, but without affecting the economy significantly.

The powerful IG Metall union calls for a wage increase of 6% to 85,000 steelworkers, a claim well above the inflation rate of 1% of Germany.

BP announced the sale for 1.9 billion dollars (1.44 billion euros) of its Colombian subsidiary to a consortium of the Canadian Talisman Energy and Ecopetrol, the Colombian national oil company.

This sale is the latest of British Petroleum, which has announced plans to lift a thirty billion through asset sales to offset the costs of the oil spill in the Gulf of Mexico.

BP has already sold last month to seven billion dollars of assets in the United States, Canada and Egypt, the American Apache.It also plans to divest its assets in Pakistan and Vietnam, which could bring him $ 1.7 billion, in the opinion of analysts.

The Kuwait's oil minister said Tuesday that the national carrier Kuwait Petroleum International might be interested in certain assets from BP.

The emirate's sovereign wealth fund owns shares in British company to the tune of 1.75% and on Monday denied media reports that BP had asked him to reach 3%.

BP announced last week a charge of $ 32.2 billion on its second quarter results, due to the spill, but analysts believe the final slate will be much higher.

The rate of the Livret A, the product of savings the most widespread in France, went on Sunday from 1.25% to 1.75% to reflect the acceleration of inflation.

There were some 60 million books A and blue books in France in late 2009, according to figures released Wednesday by the Bank of France.

Individuals then held 59.3 million of outstanding books for 175.5 billion euros and 0.6 million corporate booklets for an outstanding $ 7.9 billion.

The higher rate of pay A booklet was announced July 13 after the publication of figures showing inflation in June rose 1.5% in consumer prices over the year.

The Bank of France is responsible for conducting, on January 15 and July 15 of each year, the calculation of rates of pay passbooks regulated according to formulas that take into account the rates on money market and the increase of consumer prices.

The distribution of the Livret A was extended on 1 January 2009 to all banking networks.

The distribution of the money invested in this product is very concentrated, 42% of assets being deposited on only 7% of books in late 2009, according to the report released Wednesday. Next, 30 million savings books were credited with less than 150 euros.

Negotiations on the reform of financial supervision has failed Wednesday and European agreement on the text has been postponed until September, show several European sources.

"There will be no further talks before late August or early September and I think we can say that the talks failed," a parliamentary source said.

"The core issue is Article 6 which concerns the principle of direct supervision exercised at European level by the new supervisors," the source said adding that the objective was to find a consensus with the all states, including Great Britain.

A second source confirmed the report and discussions held that "one or two additional steps the council (of EU ministers) in the direction of the European Parliament would be required to obtain an agreement."

The Autorité des marchés financiers (AMF) announced Wednesday it had exonerated Natixis in an investigation into financial information of the bank in November 2008 at the height of the financial crisis.

In late 2008, the AMF had launched an investigation against the bank owned almost 72% BPCE (People's Savings Bank) after announcing a loss of 234 million euros and information from press reports at the same time a trading loss of one billion euros.

In its decision, the Sanctions Committee of the AMF does not hold grievances against the bank regarding the sincerity and accuracy of its financial information.

"It does not appear that the emergency situation in which it was placed to make before markets opened an initial response to articles in The Tribune, Natixis has disregarded the requirements of accuracy, precision and fairness set out in Article 223-1 of the AMF General Regulation, "reads the decision of the Sanctions Committee.

The NYSE has ended on a note undecided Friday, the Dow Jones 30 industrial yielding 0.05% or 4.99 points at 10,147.81.

The S & P 500 is broader took 3.15 points, or 0.29%, to 1076.84. The Nasdaq Composite Index was on its side of 6.06 points (0.27%) to 2223.48.

These data are likely to vary even slightly.

The American group of consumer products Procter & Gamble has decided to suspend television advertising campaign for its Pringles brand potato chips with French footballer Nicolas Anelka, "he said Monday in a statement.

"Following recent events and to ensure that this film is misunderstood by the public, the Pringles brand has decided to suspend its television advertising campaign," the statement said.

"This is indeed focused on the festive side of football and is no longer relevant given the circumstances," he added.

Nicolas Anelka has been returned Saturday from the France team after, according to the press, insulted the coach Raymond Domenech and refused to apologize publicly.In protest, the players refused to train for the match on Tuesday against South Africa, decisive for the Blues.

The sign of restoration Quick was the first Saturday remove advertisements containing the Chelsea player.

Contrary to the myth of the victory of 1998, a course team of France in World Cup-2010 has little chance of boosting consumption and cheer to the French morose for months, analysts said.

"Given the past, there is little chance that there is an impact on the morale of the French," explains Benoit Heitz, chief of the division at INSEE cyclical synthesis. While in 1998, "there was an improvement in consumer confidence in July, when the victory of France, but the improvement trend existed before. At best, it would have amplified the trend already existing" he continues, noting that these good results were anyway mostly related to the fact that the competition was held in France.

But this year the World Cup takes place in South Africa and French morale was already at half mast.This indicator summarizes the views of households on the economic situation and declining steadily since the beginning of the year and has dropped 8 points since January. And the chances of a reversal through the course of the France team is minimal.

"Only a victory in the final could possibly have an exhilarating effect, otherwise it will be marginal," said Alexander Law, chief economist at Global Xerfi. "If we win, it will have a positive impact on consumer confidence, but it is only on their morale.And only if we win, if we lose the first round or even the final, "added Nicolas Bouzou, an analyst at Aster.

Impact on sales of TVs

Whether this improvement would last, "it depends much more on attitudes to austerity plan that results in World Cup," says he, in all cases ensuring that the course would have the Blues no impact on consumption. "At the macro level, it has no impact," he insists.

"Often they say that the victories of 1998 and 2000 have generated growth but this is not the case, growth was already there, also notes Marc Touati, director of Global Equities. "The victory is the icing on the cake.The route of the France team can only be the icing on the cake, and if it does not cake …", continues the analyst.

The World should certainly have an impact on sales of televisions, which France won or not. The GfK account and an increase of 200,000 to 250,000 pieces by this event that will invigorate even more a market already in great shape (8.7 million sales in 2010). Good results could also French "boost sales of textiles, with the Blues jerseys, notes Alexander Law. "But not to be extremely high, especially since the team of France does not enjoy a good symbol of love," he tempers.

An early elimination should not have any effect on consumer sentiment. "The team has qualified in pain, his popularity rating has rarely been so low, so people just say + they knew they were unable +.Unfortunately, the French economy has disadvantages much heavier than the poor performance of its sports teams, "said Alexander Law. Failure" could generate a movement of depression, but temporary, "said Marc Touati of his side.