Areva's strategic plan will not result in job cuts in France, said Tuesday the Minister of Economy, following a meeting with the CEO of French nuclear group.
The government so far ruled out job cuts, leaving the possibility of voluntary redundancies or job cuts by not replacing departures.
The president of Areva, Luc Oursel said at the meeting that the plan would result "no job cuts, no voluntary separation plan, no impact on the French sites," said Baroin reporters.
After having declined slightly in September, prices of consumer goods in supermarkets rose by 0.2% in October. Carrefour supermarket in Antibes.
Prices of consumer goods in supermarkets are starting to rebound in October, with an increase of 0.2% over one month, after stability in September, announced Thursday the National Institute of Statistics and Studies economic (INSEE). Over one year, prices rose 3.2%.
In hypermarkets, these prices rose 0.2% last month after falling 0.1% in September. In one year, rising prices in hypermarkets reached 3.4% compared with a decline of 0.7% a year earlier. In supermarkets, prices rose 0.2% in October, after stability in September. Over one year the increase was 3.3%, after falling 0.4% in October 2010.
The Belgian, French and Luxembourg reaffirmed Sunday after a meeting held at midday in Brussels their solidarity in the search for a solution that ensures the future of Franco-Belgian bank Dexia .
In a joint statement, the Belgian Prime Minister Yves Leterme and French François Fillon stated that the three governments give their full support to the proposals of management of the banking group, presented at a Board of Directors scheduled to begin at 15:00 in Brussels.
"The proposed solution, which is also the result of intense consultations with all relevant partners, will be presented to the Board of Directors of Dexia which is responsible for approving proposals," added the two prime ministers.
"I am confident in our ability to reach an agreement with our French colleagues and Luxembourg and will be then the board of directors of Dexia to decide", for his part said Yves Leterme on Belgian television.
The activities of the Franco-Belgian bank, first bank in size in Europe to be a victim of the crisis of sovereign debt in the euro zone could be split and the most risky assets confined to a separate structure.
The Belgian, French and Luxembourg Sunday began discussions on the future of Dexia, in order to reach agreement on the terms and their participation in the new rescue plan for the former world leader in financing local authorities, supposed to lead on an orderly dismantling of the bank.
Brussels and Paris are trying to agree on the guarantees afforded by the two countries to the hive to accommodate the bond portfolio of 95 billion euros in Dexia, hoping not to aggravate the situation of public finances .
The rating agency Moody's has also increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 by explaining kingdom under surveillance will include assessing the costs and liabilities that the state could play in supporting Dexia.
VALUE TEST
Negotiations on the dismantling of Dexia, already saved from bankruptcy in 2008 after that of Lehman Brothers, will be a test for investors who want to see in the folder Dexia the ability of European leaders to overcome their differences to solve the banking crisis and the crisis of sovereign debt.
According to the most likely scenario, the dismantling of the Franco-Belgian bank should go through a nationalization of the Belgian branch, Dexia Bank Belgium (DBB), which specializes in bank deposits.
According to the Belgian daily L'Echo, the trail of a takeover of DBB by a foreign bank is considered and several institutions have expressed interest, including Deutsche Bank, Rabobank, Crédit Mutuel and BBVA.
Another key point of discussion: the distribution of the financial burden of dismantling between Belgium and France, whose participation combined with that of the Caisse des Depots (CDC) is around 25%.
Yves Leterme and Didier Reynders warned Thursday the French government that Belgium would not only rescue the financial burden.
In France, a dismantling of Dexia should result in a link-financing activities of local communities in a structure owned jointly by the Deposit and Postal Bank.
Friday, François Fillon has announced that the Deposit would release three billion euros to finance the French local authorities until a new entity formed by the Deposit and Consignment Office (CDC) and the Postal Bank to take the Dexia relay.
French President Nicolas Sarkozy, has to go on his side Sunday in Berlin for talks and a working dinner with Chancellor Angela Merkel before the summit of the euro area of 17 and 18 October and the G20 of Cannes and the three November 4.A bilateral meeting during which the larger issue of the recapitalization of banks in Europe should be addressed.
Pending the outcome of negotiations and decisions of the Board, the listing of the Dexia shares was suspended Thursday in Brussels. It will resume Monday morning.
Before the suspension, Dexia shares worth 0.85 euro.
Italy has had to make a record performance to place five-year bonds Tuesday, which illustrates again the difficulties faced by Rome to finance to sustainable levels.
The euro briefly fell below $ 1.36 and European stock markets have widened their losses after this operation, before these assets back into positive territory in mid-session.
The hope that China will come to the aid of Italy by investing in debt, a prospect that had supported the market on Monday night and Tuesday morning, gradually dissipated, which weighed on the bond issue.
In all, the Italian Treasury has raised 6.485 billion euros, 3.865 billion of new securities to five years, sold at a yield unprecedented 5.60%.
The coverage ratio of the award to five years rose to 1.279, well below that in the last similar operation, where he had established at 1.93.
The cost of financing which faces Italy took off despite the buybacks of sovereign debt in recent weeks made by the European Central Bank (ECB) to support Italy – a program that has led to the resignation sensational Jürgen Stark Friday.
"A disappointing auction, where the relatively low coverage rate is obtained at an exorbitant cost," said Richard McGuire, technical analyst at Rabobank.
The Italian Minister of Economy, Giulio Tremonti, met last week a Chinese delegation, said on Tuesday a spokesman for the Italian Treasury, which did not however want to comment on the content of the meeting.
These offers came a day after an article published in the Financial Times reported that Italy had asked China to support its debt by buying quantities "significant".
EMERGENCY ACTION
Chinese leaders have repeatedly publicly expressed their support for a Euro mired in difficulties.
But according to the Wall Street Journal citing a source familiar with the matter, it is not certain that the talks between China and Italy lead, pointing out that visits of Chinese delegations in Greece and other countries in the region Euro difficulties had raised hopes for investment from the second world economy that never materialized.
The renewed investor concerns about the difficulties Italy has led to a further widening of the yield spread between Italian and German bonds to 394 basis points.
This level is near the peak of 400 basis points reached in August, just before the European Central Bank does not fly to the rescue of Italy in redemption of government bonds issued by Rome.
On Monday, the CDS to five years in Italy has reached a new high of 505 basis points, up 38 basis points, according to Markit, which tracks the derivatives market.This means it costs EUR 505.0000 to guard against exposure to 10 million Italian sovereign bonds.
Italy has entered the center stage of the debt crisis because of its sluggish growth and its debt of 1,900 billion euros, representing about 120% of the GDP of the country.
Italian MPs are looking into the austerity plan introduced by the government of Silvio Berlusconi plans to reduce the budget to balance of Italy in 2013.
The Italian Senate approved on Wednesday through a vote of confidence in the austerity plan intended to bring 54 billion euros according to the Italian Treasury.
Italian MPs will be asked to vote on Wednesday by a vote on the austerity plan of the Italian government said on Tuesday the prime minister, Silvio Berlusconi.
Herman Van Rompuy, European Council President, said that the implementation of the austerity program was crucial not only for Italy but for the euro area as a whole.
According to economists, the cost of a bailout of the country at once would exhaust all resources in the European Financial Stability Fund (EFSF).
European shares sink their media one after the other against a backdrop of slowing global growth, the President of the European Central Bank Jean-Claude Trichet who failed Thursday to allay concerns.
Since the beginning of the week, the European equity markets have lost about 290 billion euros of their value, two thirds of the 440 billion vested in the European Financial Stability Fund (EFSF), under the influence of fear of relapse the economy and the persistence of the crisis of sovereign debt in Europe.
"There are two important points in the speech of Jean-Claude Trichet that are quite contradictory: the desire to control inflation, meaning that eventually a new rate hike, and the possible injection of liquidity through repurchase obligations, "said Alexandre Baradez, market analyst at Saxo Bank.
Jean-Claude Trichet at a news conference after the monthly meeting of the Governing Council of the ECB has implicitly confirmed the recovery of market intervention, and stressed that inflation expectations in the euro area were remain firmly anchored.
If the part of speech of Jean-Claude Trichet on redemptions of bonds was expected by the market, allowing the index to delete then some of their losses, the talk about inflation is not necessarily what is more appropriate in the current environment, explains Alexandre Baradez.
"Inflation eats away at the debt and rising interest rates would not be appropriate when the level is already high in Europe.We also see that we do not ask this question in the United States, "said he.
THE CAC 40 COULD FALL TO LOWEST OF 2010
Around 4:45 p.m., the CAC 40 index fell 2.4% to 3371.62 points, after falling to 3362.35 points before, its lowest level since July 7, 2010.
Exchanges in London and Frankfurt lost 2.5% and 2.76%, while pan-European Euro Stoxx 50 index (-2.39%) fell to its lowest level since July 2009.
As for the peripheral countries of the euro area, the situation is even more dramatic, the Athens Stock Exchange (-1.35%) finding its levels 14 years ago and the place of Lisbon (-2.46%) those of April 2009.
After pressing multiple media techniques, markets could even fall even lower.
"The CAC 40 may now fall to its next support at 3,350 points, and then go towards the lower end of the year 2010 at 3287 points," warned Alexander the Drogoff technical analyst at Aurel-BGC.
Moreover, all this should be done in a climate of increased volatility, analysts warn.
"The volatility of the Eurostoxx 50 is too low and this should be corrected," warns Gastaldy and Valerie, an analyst at Day By Day graphic.
"The implied volatilities have been very quiet in recent months, despite the intense agitation of the equity markets.Intermarket arbitrage operations are clearly under way: between the CDS, bonds and equities, and especially so on Eurostoxx50, "said she.
As for metals, an ounce of gold hit a new side of his most historic 1677.90 dollars in the wake of the conference of ECB President Jean-Claude Trichet.
The euro yield 1.42% against the greenback at 1.4139 dollar. Baradez Alexander points out, however the relative strength of the euro against the dollar, which manages to stay in a range between 1.4150 to 1.43 dollar down without crossing the threshold of $ 1.40.
"On the foreign exchange market, we see that there is a seller of wind shelters currencies (dollar and yen) for the benefit of currency risk.This could be a harbinger of a renewed appetite for risky assets and therefore support the equity markets, "said he.
The rating agency Moody's downgraded four notches Tuesday of sovereign rating to Baa1 from Portugal to Ba2 with negative outlook.
The long-term sovereign debt of Lisbon is thus now speculative grade ("junk").
The agency fears in particular that Lisbon will not be able to meet its targets for deficit reduction and stabilization of the debt, as defined in the agreement for financial assistance agreement with the European Union and the Fund IMF.
According to Moody's, there is consequently a growing risk that Portugal needs a background of financial assistance before being able to finance themselves on international markets.
The probability of Lisbon fails to reduce its borrowing costs at a level enabling it to finance unassisted in the second half of 2013 is also increasing, the agency said.
Lisbon recognizes its vulnerability
Moody's is the first of the three major rating agencies to put the Portuguese speculative grade rating.Standard & Poor's and Fitch Portugal to assess BBB-, the last level of investment grade.
The Portuguese Government immediately reacted to the decision by Moody's, which in Lisbon highlights the vulnerability of the Portuguese economy in the context of the debt crisis.
Lisbon, however, felt that Moody's did not consider the strong political support in the country's austerity program, or the establishment of an additional tax.
The Portuguese authorities have renewed their commitment to the plan proposed last week, which they believe is "the only way to reverse the trend and restore confidence."
The euro has increased its losses against the dollar shortly after the release of Moody's.The single currency, which traded just before the announcement to 1.4485 dollar quickly fell to 1.4449 dollars around.
"This again raises the question of the need for other peripheral countries in the euro area, in addition to Greece, may have new funding," said Biran Dolan, an analyst at Forex.com in New Jersey .
The U.S. stock markets have opened up Tuesday as investors bet on the vote by the Greek Parliament's new austerity plan despite its unpopularity.
In early trade, the Dow Jones gained 0.3% to 12,083 points, while the Standard & Poor's 500 is also 0.3% to 1284.26 points and the Nasdaq Composite wins 0.2% to 2695.27 points.
Eurazeo announced Monday the acquisition for 418 million euros from 45% of the French specialist in luxury clothing Moncler became its largest shareholder.
The redemption of Moncler, whose enterprise value of EUR 1.2 billion represents 12 times its Ebitda reached in 2010, should be completed in the third quarter, Eurazeo said in a statement.
Remo Ruffini, president and artistic director of Moncler, will retain 32% of Carlyle Capital and 17.8%.
Founded in 1952 in Grenoble, Moncler develops five brands: Moncler, Henry Cotton's, Marina Yachting, Weber & Ahaus Coast, and a license 18CRR81 Cerruti.
Originally a technical brand specializing in down jackets, Moncler has a network of 55 stores in Europe, Asia and North America in 2010 and achieved a turnover of 429 million euros. It employs over 1,000 employees.
The average monthly benefit reaches 413 euros, according to the National Family Allowances Fund.
In 2010, the family allowance funds contributed nearly 60 billion euros in benefits for a monthly average of 413 euros, according to the latest newsletter of the National Family Allowances Fund (CNAF).
31 December 2010, the family allowance funds (CAF) have made payments to 11.3 million beneficiaries is 72,300 more than in December 2009, an increase of 0.6% over one year, "more strong in the overseas departments (+1.3%) due to the increased number of beneficiaries of housing and social minimum. "
In metropolitan France, the increase of 0.6% results "of the increased number of beneficiaries of income solidarité active (RSA) and maintenance benefits paid to families."Counting spouses and dependents in each household, 30.3 million people are covered by benefits paid by the CAF, says the National Fund. Nearly 20% of recipients are comprised of single women without children, "she notes further.
Topped the actual family allowances, paid to 4.7 million households (metropolitan and overseas departments) for 11.8 billion euros.
Then the Provision of services for young children (Paje), paid to 2.3 million households to almost 12 billion euros.
Housing benefit (ALS, ALF and PLA) are paid to 6 million homes for 215 euros on average per month.
The RSA is paid to 1.8 million homes, for 8 billion euros.
According to François Fillon, the plan to help French banks "was the only one in Europe to benefit the public finances." What is not quite true. It is also unclear if all plans are comparable. François Fillon official visit to Japan 16/07/2010.
On 26 April, Eurostat published a statistical assessment of bank rescue plans in Europe. And, surprise, France appears as the country having won the most money with his plan to recapitalize the banking sector. 2.4 billion euros in total over three years, from 2008 to 2010.
What a welcome. What did not fail to Christine Lagarde, Minister of Economy, and François Fillon, certainly disappointed that the information was relayed little in the mainstream press.At a conference this Thursday, the Prime Minister, who came to service after sale of the four years of President Sarkozy, then bragged about famous plan for banks, so widely criticized at the time of its adoption "A recent study Eurostat showed that our plan was the only one in Europe to benefit the public finances, reported to the State and the French 2.4 billion euros, the British plan cost $ 15 billion, the German plan $ 17 billion, Netherlands 3 billion plan, let alone the Irish plan which cost 35 billion, "he told an audience of journalists.
First comment on the merits. Fillon's claims are not entirely accurate. According to figures published by Eurostat in fact, France is not the only European country having benefited from her aid plan for banks.Including the Spanish plan would have to report $ 1.5 billion to public finances, and the Greek plan of 405 million euros. In total, at least 10 European countries and have made money through their plan to revive the sector.
Small numbers reveal the reality
But these figures must be taken with a grain of salt. Eurostat publishes a photograph in effect at time T, which is not necessarily indicative of reality. According to figures from research institute, Spain would have earned 1.5 billion euros thanks to her plan. In fact until now the country with very little support its banking sector. In fact, now is preparing to do so. In late April, the Bank of Spain has approved such plans to recapitalize the troubled savings amounting to at least 6 billion euros. And there's a good chance that the state has yet to put their hands in the pocket.
Greece has a somewhat different since the state debt up to his neck, did not have the money to help banks. In 2008 and 2009, Greece has only made some guarantees to its banks (about 400 million), which allowed him to pocket a total of 405 million euros according to Eurostat. But the Greek crisis is far from over. At one point, it will therefore also recapitalize banks.
As for Germany, a country that has never been reluctant to subsidize the banking sector, it seems pretty logical that it is still a deficit of 16.5 billion euros, to the extent that its banks have not started repay a penny of capital and guarantees made by the government. As the United Kingdom or Ireland, the country must also manage the bad assets housed in specific portfolios or in public banks.Nevertheless, it should be noted that the country received 3.2 billion in 2010 to interest loans to the sector. Commerzbank in 2011 including plans to repay 10% of 16 billion collected. Ultimately, it is therefore possible that Germany enjoys its benefit plan to help banks than France.
Banks are less exposed to subprime
Does this mean that France should be ashamed of his plan? Of course not. The government can possibly boast of having banks less exposed than others to subprime loans, and therefore not having to guarantee bad loans too. It can also rejoice in the fact that all French banks have already repaid the aid and thus have collected 2.4 billion euros in return.
However, the government omits some important details.According to a report by the ECA in September 2010, the aid plan for banks, may actually increase the deficit in the long term. According to the sages of the Rue Cambon, since the funds raised for banks add to the amount of public debt and interest that the State has to pay to borrow, then it will weigh more on the public accounts. To make an accurate, it would therefore count the extra cost of interest paid to the state.
Moreover, Francois Fillon has certainly forgotten that the strongest criticism surrounding the bailout of banks in 2008 was not about the need to restructure financial institutions, of which almost everyone was convinced, but the terms of the plan. At that time indeed, the government had been criticized for having capped the gain share buyback to 3%.When we see the evolution of stock prices of major French banks since 2008, it is clear the French government has denied several billion more.