International Business News

The U.S. company Spirit Airlines confirmed Wednesday an order for 75 A320 aircraft manufacturer Airbus, valued at seven billion dollars (5.3 billion) at list prices. The MoU, which was announced in mid-November at the Dubai air show, includes 45 A320neo, the enhanced single-aisle Airbus, a subsidiary of europe ; in EADS. The company has not announced the engine selected, the aircraft manufacturer said in a statement. 45 A320neo have been recorded in the order book in December 2011. The success of the A320neo, more fuel efficient, has allowed Airbus to sell almost twice as many planes as its U.S. rival Boeing in 2011, although it acknowledges that it will be difficult to keep the advantage in 2012, with the response of 737MAX, improved version of the aisle of his American rival.

"Line of precaution and Liquidity" provides a credit of the member states to meet their emergency needs. This is one of the G20 commitments in Cannes.

The International Monetary Fund announced Tuesday, November 22 creating a new lending instrument to "break the chains of contagion" of financial and economic crises. The institution said in a statement that its board had given its green light to the "Line of precaution and liquidity" (LPL), which had been promised by the G20 at its summit in Cannes (South East of France) earlier this month. The TPA provides a credit of the member states to meet their emergency needs.It "can be used as a source of liquidity, allowing an agreement six months to meet the needs of short-term balance of payments," said the IMF.

This device replaces another established in August 2010, the precautionary credit line, which has a single member state, Macedonia. The difference is that the old line of credit was designed to be held in reserve, while the news is expected to eventually be used immediately. Countries that are eligible are the same: those with a crisis, and have sound economic policies and undertake to maintain. Executive Director of the IMF, Christine Lagarde, had said at the summit in Cannes that Italy could meet these criteria. To support this country, "the typical instrument we would use is a precautionary credit line.

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.

Helsinki demanded security for the vote of the new loan. The country threatened not to vote on second bailout plan. Greece in the storm

Countries in the euro area reached a compromise Monday night on the guarantees requested by Finland in Athens in exchange for new loans, about blocking for weeks the second rescue plan promised the country in crisis. "Following lengthy discussions, we reached an agreement on the terms of the collateral," or collateral requirements in exchange for new loans in Helsinki, said the leader of the finance ministers of the monetary union, Jean- Claude Juncker. The European Commissioner for Economic and Monetary Affairs, Olli Rehn, expressed his "satisfaction" that a compromise could be found at last after a meeting of ministers of the Eurogroup, Luxembourg.

Helsinki, which is facing a surge in euro-skepticism shown by the party's electoral breakthrough of the "True Finns" and a growing reluctance of his opinion to help Greece, required to be eligible collateral ("collateral" in financial jargon) in exchange for new loans promised in Athens. Greece has been promised on July 21 a second plan loan of Europe and the International Monetary Fund of 109 billion euros, plus a contribution from private creditors of the country.

The compromise provides that Finland may well benefit from the guarantees required. Helsinki threatened to block any failing device, which would have led Greece to bankruptcy. But at the request of many other countries who refused any special treatment, severe counterparts are planned for countries that would use such safeguards."Any country not ask for collateral, but there is a price to pay," warned Klaus Regling, the director of the Relief Fund for the euro area countries in difficulty, the EFSF.

Finland must first pay at one time contribution to the future permanent emergency mechanism in the euro area (SS), called to take over the EFSF mid 2013, while other countries may spread their payments over 5. In addition, it will not receive as many benefits on the operations of its partners EFSF. The Fund, financed by the guarantees provided by the countries of the euro area, up because of the money in the bond markets at a very low, due to its excellent rating, then pay for a higher rate countries in need who asks. The difference between the two is a profit to share.

Another drawback: if a country supported by its partners fails, the guarantee will be paid to Finland to maturity of bonds made by the EFSF, 20 or 30 years. "So the guarantees will be frozen for a very long time," said Mr Regling. Finally, Helsinki will not be entitled to receive over 30% of its guarantee in the end. "This is why it is unlikely that a country other than Finland so requests," summarized Mr. Regling. The compromise is the final blow to most as a political means for the Finnish government not to lose face domestically, after having made a prerequisite to his constituents.

Barack Obama proposed Monday a plan to reduce the budget deficit of 3,000 billion over the next ten years, half would come from new tax levied on the richest Americans and corporations.

The plan of the Democratic president, whose recommendations should meet the electoral base of his party, was immediately criticized by Republicans, foreshadowing a battle in Congress.

This ideological clash over economic policy should continue until the presidential election of November 2012.

"Washington to live with his means.We need to stop what we can not afford to pay for what really matters, "said Obama in introducing his plan.

"I will not support a plan that puts the entire burden of deficit reduction on the shoulders of the average American," said Obama."We will not agree unequal affect the most vulnerable," he said.

Savings will be made in Medicare, the Social Security program for older Americans, said the U.S. president.

But he warned he would veto any proposal that would reduce Medicare benefits without requiring an increased effort in return for the wealthiest Americans and big business.

The U.S. president said he was ready to work with Republicans for a comprehensive tax reform but warned that the objective of such reform should be to increase state revenues.

He said he was ready to lower taxes on businesses provided to get rid of all tax loopholes.

NOT SERIOUS, REPUBLICANS SAY

The tax "Buffett", named after the investor Warren Buffett who proposed, the proposal is the most spectacular of the plan, although it remains symbolic of the admission of the White House.

It concerns taxpayers earning over one million euros (about 725,000 euros).The goal, said Obama is the tax rate for the wealthiest U.S. taxpayers back to the level of the 1990s and the middle class pays no more, proportionately, than millionaires.

Obama's proposals are intended for the bipartisan commission formed this summer as part of the agreement on raising the debt ceiling.

The six Republicans and six Democrats who compose it must find by the end of November at least 1200 billion budget deficit reductions, which will add to the 917 billion already decided by the agreement of August.

"Threatening to veto, massively increase taxes to save ghosts and build on a reform of social programs, it is not a recipe for economic growth and labor market," said the leader Senate Republicans, Mitch McConnell.

John Boehner, chairman of the House of Representatives found that the contribution of Obama's bipartisan commission was not "serious".

In detail, Obama calls for the abandonment, expiration, tax exemptions up to the presidency of George W.Bush (800 billion dollars and would be recovered over ten years) and an overhaul of the tax code to eliminate some tax loopholes, such as offering tax exemptions to businesses through the acquisition of business jets (total gain of 700 billion ).

The Obama plan is also banking on 1100 billion savings associated with withdrawal of troops deployed in Iraq and Afghanistan.

The services of the White House finally believe that these reductions in the budget deficit will result in reducing the burden of debt relief that they amounted to ten-year $ 430 billion in less interest to pay.

Steve Jobs resigned Wednesday from his position as CEO of Apple, which is now occupied by his right arm Tim Cook, saying he could no longer bear the load.

"I always said if I ever came to not being able to perform my duties and obligations as CEO of Apple, I'd be the first to let you know.Unfortunately, that day has come, "he wrote in a brief letter of resignation.

This letter and a terse statement from the firm at the apple raise more questions than answers about the health of Steve Jobs and the future of society.

These questions explain that Apple stock has dropped 7% in the post-closing transactions on Wall Street and has lost nearly 6% in Frankfurt in early trade.

There are only eight short sentences in the letter of resignation from Steve Jobs addressed the board as well as fans of Apple.

"I would serve if the board deems appropriate, as chairman of the board, directors and employees," writes Steve Jobs.

THE "CREATIVITY AND INSPIRATION 'FOR TIM COOK

While this departure does not challenge the Apple's ambitious trade agenda in the short term, some question whether the firm will retain its high-tech creative beyond next year without his boss emblem.

In the press release from Apple, the independent director Art Levinson leases on behalf of the Board, "an exceptional leadership and vision" and "innumerable contributions to the success of Apple," and added that Steve Jobs continue to serve society by his "intuition, creativity and inspiration that belong to him."

The statement, which also boasts the exceptional performance of Tim Cook, says nothing about the health of Steve Jobs, who is 56 years old.

His battle against pancreatic cancer has been for years a source of concern for Apple fans, investors and the board of directors, which Steve Jobs now occupy the presidency, a new position for the high tech group.

Until now, Apple would rather have a structure consisting of two independent co-administrators.

Steve Jobs was on sick leave since Jan. 17, Tim Cook taking office on a daily basis.

He spent the day Wednesday meeting with members of the board and management's Cupertino headquarters, and has actively assume his new responsibilities, told Reuters a source close to him.

A second source said that Steve Jobs will remain on the board of Walt Disney.

Some industry experts believe that Steve Jobs made it clear he was no longer able physically to perform a function as demanding as the general direction of a company.

Steve Jobs appeared gaunt when he made a brief appearance in March to unveil the iPad 2.He then made an appearance at a dinner hosted by President Barack Obama for business leaders in Silicon Valley.

"It's really sad"

Tim Cook, a former Compaq aged 50, known for his mastery of the supply chain, has been acting at all three sick leave Steve Jobs.

"Investors are very comfortable with Tim Cook even though Jobs has been a force for innovation and an obvious success of Apple.Tim has shown that Apple could still outperform extremely well when he was interim CEO, "said Shannon Cross, analyst at Cross Research.

For a boss in Silicon Valley told Reuters the letter from Steve Jobs indicated that his condition could be worse than what is known publicly. "It's really sad," he said, wishing to remain anonymous. "No one sees this as a professional issue but a human issue. No one believes that Steve retires because he simply does not want to lead Apple."

In particular, the new sensation in Asia, where many are based suppliers and competitors to Apple. Samsung Electronics, a supplier of chips for Apple but also on its rival smartphones and tablets, has gained 2.4% on the stock market.Sony, Apple defeated by the segment of players, took 2.07%.

Oncologists surveyed who did not participate in medical care given to Steve Jobs, said it was likely many complications of a rare form of pancreatic cancer he had and the liver transplant that followed. They cited a hormonal imbalance or relapse even more difficult to treat the patient is weakened.

Unemployment is nearly 30% of young Italians aged 15 to 24 years, against 21% on average in Europe. Demoralized, only 47% of them have a job full time. The age the youngest, the 15-24 age group is most affected by unemployment, with a peak of 29.6%, or one in three

Italy has the rate of youth unemployment the highest in Europe, according to a study released Wednesday by Confartigianato, the Italian federation of craftsmen. The peninsula has to 1.138 million unemployed under the age of 35 years, the report based on data from the Italian National Statistics Institute ISTAT. The report also highlights that the number of young people with jobs fell by 926,000 units between 2008 and 2011 at the height of the economic and financial crisis.

The unemployment rate for 15-35 year olds in Italy amounted to 15.9%.But it's the age the youngest, ages 15-24, who is most affected, with a peak of 29.6%, or one in three, against an average of 21% in Europe, Confartigianato said in its study. Most of these unemployed youth from 15 to 35 years are concentrated in the south with a rate of 21.1%, or 538,000 unemployed youth, Sicily holds the record with a rate of 28%.

The study of Confartigianato also highlights the deterioration of the situation for adults. The unemployment rate for 25-54 years is 23.2% in Italy against a European average of 15.2%, with an increase of 1.4% between 2008 and 2011 against a 0.2% decrease on the same period in Europe. However, all age categories included, the unemployment rate in Italy is one of the lowest in Europe since he established in June to 8% against 9.9% in the euro area.Another study, published on the same subject by the polling institute Datagiovani confirms the plight of young Italians, stressing they are demoralized. Only 47% of them hope to get a full-time contract, or 5% less than in 2007.

In addition, 98,000 young Italians would be willing to emigrate to find work. But it is mainly young southerners who are willing to accept any type of work, contracts and schedules. In the south, most young people are resigned and discouraged, remember Datagiovani in its investigation. "The perception of the impossibility of finding a job is much higher than in the north," said the institute. As for wages, in 2007, over 50% of young Italians hoped to get a compensation of at least 1,000 euros per month. In 2011, there are more than 20%, says Datagiovani.

The rating agency Standard & Poor's reaffirms its trust in "AAA" of France. The opportunity to understand the links in a few risks to the note light, and challenged the role of rating agencies. This Thursday, August 18, Standard & Poor's is confident the triple A of France

Standard & Poor's is confident the triple A of France The rating agency expressed "confidence" in the ability of France to maintain its optimum rating "AAA". The president of the rating agency for the French-speaking Europe Carole Sirou said Thursday on RTL radio that "the note of France is" AAA "stable, it is the case since 1975." Asked about rumors of Degrate the French note that shook financial markets last August 10, she declined to comment.August 8, John Chambers, chairman of the state rating of S & P reaffirmed that France had a "well-designed fiscal policy" which justified its "AAA" rating with positive outlook "stable".

Read the interview with Carole Sirou, president of Standard & Poor's, on RTL: "We are confident about the AAA rating of France."

The Triple A of France inquièteMalgré assurances from the rating agencies, who denied rumors of degradation of the note of the Hexagon, the concern remains. "The ratio of debt / GDP ratio is approaching the danger zone, said Jean-Christophe Caffet, economist at Natixis. It is not yet in the red but already in the orange." The rating agencies scrutinize closely the social spending of France. Second weakness, the lack of French growth, which does not pay interest on public debt.And the slowdown could continue. The expected growth in 2012 would not exceed 0.2%.

Read also: The anguish of the triple A of France

Why persistentPremière doubts because in the circle of countries stamped "AAA", France shows the worst budget ratios. Its deficit to 7% of GDP, above the level of other countries rated in the euro area. In addition, the primary deficit (excluding debt burden) is twice as high (3% of GDP) than its neighbors. From there to suggest that the hexagon is at the forefront of the next breakdown … Second reason, the commitments to reduce the deficit of France are struggling to convince. With growth low and, consequently, lower tax revenues, the country will have to make efforts for additional savings for deficit reduction.But in a report published mid-June, the Court of Auditors considers that "the effort goes beyond the measures that have already been taken." Removing more than expected tax loopholes, tax on very high incomes, increased taxation of life insurance, all measures envisaged by the Government, which will result in tax increases in 2012. Unless these measures to reduce the deficit does the cost of the presidential campaign. In 2007, Nicolas Sarkozy has loudly proclaimed that he was not elected to raise taxes …

See also: Why France worries markets

Rating agencies, the oracles marchésPour Gunther Capelle-Blancard, deputy director of CEPII, in times of great uncertainty about the economic outlook, financial markets are among the rating agencies the information readable and easy to interpret.These new oracles, act as aggravating factors of the crisis. They sow or exacerbate panic. Over the past 15 years, they never alert the warning signs of a crisis. Neither the failure of South American states in the 80 or the subprime crisis, nor that of the Greek debt in 2009. What to doubt their credibility. However, legislators and regulators have raised finance rating agencies to the level of ultimate reference. Difficult to deny that they have become essential because they illuminate the investors on the creditworthiness of the borrower. But to limit their destabilizing effects, detoxification is necessary, according to Gunther Capelle-Blancard. To limit their influence, they should be separate texts that regulate international finance, so that the rating agencies become mere sources of information among others.

See also: "You have to detoxify the rating agencies"

Dagong, rating agency alternative? According to the criteria of the Chinese agency Dagong Global Credit Rating, neither the U.S. nor the UK or France deserve the highest rating. Criticized for its dependence on the Chinese government, the agency presided over by Guan Jianzhong, at least has the merit of representing a creditor country, when the three major agencies, Standard & Poor's, Moody's and Fitch are from debtor countries. With public debt ratio of 96% for the United States, 83% for the UK and 85% for France in 2011, difficult to challenge their degradation. Dagong aggréée was not in the U.S., it has no influence on the markets. Yet there are voices calling for alternatives analysis grids.Thus, Norbert Gaillard, specialist and consultant ratings for the World Bank, like the arrival of players offering "different angles of analysis."

Read also: The rating agency Is China too hard on the West?

Also: Financial analysis: the troublemakers of the rating

European shares cut their initial losses Wednesday, the market favorable ruling in the long run some of the proposals of Angela Merkel and Nicolas Sarkozy to find solutions to the debt crisis in Europe, even though the idea of ​​a tax financial European banking stocks weighed on stock and operators.

Around 13:15, the CAC 40 gained 0.81% to 3257.10 points after losing up to 1.5% in early trade. Other major European markets, London and Frankfurt drops 0.44% 0.29% respectively as they have lost up to 1.5% and 2% in the morning.

"The stabilization of current European indices came after a rebound in more than 10% since the low points.This slowdown is legitimate and should not conclude that the financial community is disappointed with the meeting between Sarkozy and Merkel, "said Arnaud Poutiers, Deputy Managing Director at IG Markets France.

Of the European indices, the EuroStoxx 50 ahead of 0.31% and 0.12% Eurofirst 300 loses.

"Certainly, investors would certainly responded positively if the Franco-German couple had driven on the path of Eurobonds, but it was while renewed visibility in the short term with a continuation of the way of debt, and not a fundamental solution, "said Arnaud Poutiers.

REBOUND ACTION

"The proposals regarding the creation of a government of the euro area as well as measures to harmonize the taxation of factors, however, are constructive in the long term," said he, holding that the equity markets should continue to rebound by the end of the month, the CAC 40 and return to the area of ​​3330 points.

On the foreign exchange market, the trend of early morning was also reversed, the euro rising by 0.49% to 1.4466 dollar while the euro has lost up to 0.5% against the greenback .

Although it was expected, the deferral of certain decisions such as the issuance of Eurobonds and the idea of ​​a tax on financial transactions, however, marked the spirits of investors.

"Once again, European leaders have failed to respond appropriately to the right question," say strategists in a note saying that Natixis European Tobin tax is not the solution to the problem of Europe .

These underline the effectiveness of such a tax is not shown, referring in particular the unfortunate experience of Sweden there thirty years which had resulted in leakage of almost half of the transactions to London .

The financial sector and stock exchange operators are affected by this proposal.UBS points out in a note with the Swedish initiative, the volumes on the Stockholm Stock Exchange had melted by 85%.

"Assuming that the proposed tax is based on the current proposal of the European Commission, a fee of 10 basis points (bps) on stocks and bonds and derivatives on a pdb, multiply it by 10 to 20 the transaction costs, "said UBS.

The Swiss bank said this could influence the proposed mergers and acquisitions and reduce premiums for this type of operation.

As for the bank, BNP Paribas shows the largest drop in the CAC 40 index with a decline of 1.35% at Societe Generale (-1.28%).

Commerzbank lost 3.2% and Barclays was down 2.9%.Stoxx index of bank lost 1.03%.

The exchange operator NYSE Euronext loses 5.09% 3.31% Deutsche Börse and London Stock Exchange Group 4.71%.

The oil company Royal Dutch Shell posted Thursday a sharp rise in net profit in the second quarter, driven by new projects which he hopes to increase its production over the next few years.

Its net profit to current costs jumped 77% to $ 8.0 billion (5.57 billion), supported prices of oil and asset sales more than offset lower production.

Its oil and gas production has in fact declined by 2% to 3.05 million barrels of oil equivalent per day, due to the sale of deposits and reduced gas demand caused by an exceptionally mild climate in spring.

Excluding sales, production, however, rose 2%, indicating that recent major investments by Shell are already beginning to bear fruit.

In the first half of the year, the group launched three new projects, one in two Canadian oil sands and gas plants in Qatar, which required an investment of $ 30 million.

Excluding items, the result shows an increase of 56% to 6.55 billion, just below the average forecast of eight analysts polled by Reuters (6.70 billion).

The CEO of Shell said it was concentrating on organic growth of the group and neither envisaged the acquisition of its rival BP or any buyback.

BP reported Tuesday a profit below expectations in the second quarter, while the market awaits the giant Exxon Mobil to display in the day a 50% jump in net underneath.

Around 9:30 GMT, action abandoned Shell 0.84% ​​to 2,246 pence.