World and National News

Notaries, tax and estate planning departments of banks are preparing for busy week. Many individuals want to make donations before the vote – scheduled for early July – the tax reform Heritage presented last week. "There is a window of opportunity for all those who want to give," says Bertrand de la Grandière at Compagnie Financière Edmond de Rothschild.

The reform removes, of course, the tax shield and landscape ISF, but also increases the taxation of gifts and estates. The allowance of 159,325 euros remains for transmission to a child, and the surviving spouse is exempt from inheritance tax. But the fees payable in case of large gifts will increase as a result of several measures.

As the crisis still weighs on the peripheral countries of the euro zone, Germany has shown a healthy insolent in the first quarter with growth of 1.5% well above expectations. Rising domestic demand, catch-up effect of the crisis and strong exports have combined to boost European locomotive. With unemployment at its lowest for twenty years, Berlin could aim for a 3% growth this year, according to economists, although the government still officially on table +2.6%.

Also supported by France, Austria and the Netherlands, the overall growth in the eurozone was 0.8% during the first three months of 2011. This represents an acceleration from the previous quarter (+0.3%), and outperformed the U.S. (+0.4%). But forgiveness is uneven across countries.Those in the periphery, already grappling with concerns about sovereign debt, still suffer from a much lower growth, Portugal even officially entering a recession.

Fiscal consolidation

This trend towards decoupling is here to stay. "In the future, we continue to expect growth to multi-speed EU," said the European Commission on Thursday, when presenting its outlook for 2012. After an increase of 1.8% last year, GDP should grow 1.6% this year and 1.8% next year in the euro area. In total, the recovery may be weaker than in previous upturns, warned Brussels totally free credit score.

Moreover, unemployment is likely to remain high (10% this year and 9.7% next year).To firm growth, Economic Affairs Commissioner Olli Rehn yesterday pleaded for "the continuation of fiscal consolidation and the implementation of structural reforms that promote job creation and improve the competitiveness of our economies."

The side of inflation, the Commission revised its forecasts upwards with a 2.6% increase expected this year and 1.8% next year in the euro area, driven by higher prices of energy. Result, "less than an intensification of the crisis in the peripheral zone and contagious effects more marked, the ECB should prepare the ground for a rate hike at its meeting of July money," said Ken Wattret at BNP Paribas.

Such tightening may accentuate the phenomenon of decoupling.As regards Greece, Brussels downgraded its forecast yesterday, with a fall in GDP of 3.5% (instead of 3%) and a deficit of 9.5% (instead of 7.4%) expected this year. Athens will not escape a new package of austerity. "It is still necessary to take further fiscal consolidation measures," Olli Rehn has warned.

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The U.S. stock market should open up again on Wednesday. Futures on Standard Poor's 500 and Nasdaq 100 advancing 1.12% respectively at 1357.90 points and 1.13% at 2413.50 points.Mardi, the New York Stock Exchange ended sharply higher, led by technology sector after the announcement of the acquisition of Skype by Microsoft.

"Fears over Greece and dull markets are supported by a revival of stock transactions," explained the GI Market analysts making particular reference to the Microsoft buyout of Skype for $ 8.5 billion."This acquisition is important because it enhances the technology sector," said specialists on their side of Cantor Fitzgerald.

On the foreign exchange market, the euro was stable against the dollar Wednesday, struggling to find a clear direction in a cautious market that continues to scrutinize the evolution of the fiscal position of countries identified as fragile in the euro area. About 11:00 am in Paris, the euro bought 1.4412 dollars against 1.4410 dollars late Tuesday.

On the macroeconomic front, investors will monitor including U.S. trade figures for the month of March (1430), then they will learn the traditional weekly oil inventories (16:30).

While waiting for these figures, around 12:00 in Paris, a barrel of Brent was trading at 117.62 dollars in London, yielding 1 percent from the close of Tuesday.And in New York, a barrel of light sweet crude (WTI) for the same period fell by 20 cents to 103.68 dollars.

The side of values, the media group and leisure U.S. Walt Disney reported Tuesday after a close of Wall Street, a decrease of 1% of its net profit in the second quarter of fiscal shifted, to 942 million , well below expectations.

The British oil company BP, which is listed on Wall Street, announced that it received the final green light from the Brazilian authorities for the purchase of ten exploration blocks offshore Brazil to the American Devon Energy, as part of a transaction of 7 billion payday loans.

Google said Tuesday it had set aside $ 500 million in anticipation of the results of an investigation recently launched by the government on the practices of some of its customers in advertising.This provision reduced net income for the first quarter to 1.798 billion dollars against 2.298 billion announced April 14.Advertising has secured 97% of 8.575 billion dollars in turnover during the quarter.

Facebook had left by mistake advertisers have access to profiles, photos, conversations and other private information of its users, said Tuesday the computer security company Symantec.

AIG and the U.S. Treasury Department could launch a capital increase of $ 9 billion in May, while analysts expected an increase of 7 to 25 billion dollars, according to the Wall Street Journal.

The Chinese airline China Southern Airlines has announced that its subsidiary Xiamen Airlines has ordered six Boeing 787, the new jumbo "Dreamliner," a list price of $ 1.1 billion.

General Motors said Tuesday it would invest two billion dollars in 17 of its U.S. sites.GM says these investments will create or safeguard over 4,000 jobs.

Also note, these Chinese companies will start this Wednesday at the New York Stock Exchange. the first website Chinese dating, Jiayuan. Com, hopes to raise nearly $ 78 million. Meanwhile, China Zenix Auto, which is defined as "the largest manufacturer of wheels for commercial vehicles" in China, will debut on the New York Stock Exchange (NYSE) on Wednesday. The offer is expected to total $ 135 million.

The French are preparing to spend their holidays under the sign of rigor. A poll conducted for the OpinionWay Site Voyagermoinscher.com and published on Tuesday showed that the effects of the crisis are still clearly visible and that consumers will continue to tighten their belts. In 2011, they will leave less time, less far and for my dear for their summer holidays.

For more than one in four French people, the holiday budget will decrease compared to the summer of 2010. The average budget per person is lowered to 561 euros, against 585 euros in 2010. A previous study showed that even three million French would give up from this year. The holiday will also be shorter: one in three French leave a week or less. This figure is up 56% compared to 2010.And the number of vacationers who plan to shorten their stay to 19%, nearly double the 2010 (10%).

Reduce invoice

About the destination, the political situation in Egypt and the Maghreb also amends the French plans. 90% of them intend to move away because these destinations usually very popular, especially since they promise a stay under the sun for a price among the most reasonable in sunny destinations abroad.

The study found nearly three-quarters (73%) holidaymakers should therefore remain in France this summer. A solution that 44% of them consider also less expensive. The information should delight tour operators who wish to conquer hex local customers. Two out of five French (38%) have, however, on family and friends to host and reduce the invoice and sulk rentals and hotels.They were 32% in 2010.

Result of economic uncertainties, vacationers are more flexible: three quarters of respondents are willing to change their vacation plans to take advantage of a promotion for both the destination, the dates or length of stay. 28% are ready to take advantage of special deals. Internet should be a privileged channel reservation this year. The study found the complaints to compare prices up 15%.

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The restructuring announced by giant ThyssenKrupp has obviously taken over the political authorities in Germany. Christian Wulff, German Federal President, showed his annoyance by canceling his visit was to perform Sunday at the site of the new steel giant group in Brazil.

This production unit, located next to Rio de Janeiro is very important for ThyssenKrupp. It cost more than EUR 5 billion, making it the largest investment in its history. In addition, the visit must be conducted by Heinrich Hiesinger, the chairman of ThyssenKrupp. The refusal of Christian Wulff is a setback for the German group.

It is true that the political authorities, which are historically very close to the leaders of the steelmaker, may be concerned by the magnitude of the restructuring announced on Friday morning.ThyssenKrupp will sell or restructure almost a quarter of its turnover, more than 10 billion euros of business. 35,000 jobs are concerned, a little over 177,000 for the whole group.

Diversified industrial group

It's not about job cuts outright, but transfers or outsourcing. Nevertheless, all these activities are not profitable and negative consequences on employment in the future are possible. In addition, ThyssenKrupp executives have said for months that they wanted to improve their credit ratings by agencies. A will rarely compatible with social concerns.

The announced restructuring will not profoundly change the profile of ThyssenKrupp, which appears more like a diversified industrial group than as a pure steelmaker. In this activity, it occupies today as the twentieth largest in the world.But it is also present in the elevators, with a position of world number three, shipbuilding, automotive and construction of turnkey plants.

The new group's strategy is not to focus solely on the business of steelmaker. The announced measures do in fact only two activities: steel industry and automotive equipment. In this division, three companies, which together 2.2 billion euros in billings, will be transferred while two others, also posting 2.2 billion euros of turnover, will be met, before being eventually sold or find a partner.

The most important movement, however, concerns the branch "stainless steel", that ThyssenKrupp will transform into an independent company. This activity is the leading European, with a turnover of 5.9 billion euros.During the year ended last Sept. 30, it lost 57 million euros. Of the 35,000 people affected by restructuring the steel industry alone employs 11,000 employees. This activity is likely to be observed carefully by German politicians, because the area is known to concentrate in the coming months.

The markets took fright on Friday night after a new European cacophony. Greece had threatened to leave the euro in discussions with the European Commission, reports the website of German magazine Der Spiegel quoted a government source in Berlin. The major European capitals have refuted this information.

"These items are a challenge, undermine the effort of Greece and the euro and serve speculative games," said the Greek finance ministry said in a statement. "The assumption of an outflow of Greece to the euro area is completely fanciful", has also assured Bercy.

Despite denials by the French, German and Greek, the single currency accelerated its decline against the dollar. Friday night shortly after 19:30, the euro lost nearly 1% to 1.4381 dollar. Rumor sign a new stage, and this information is disturbing.It is not surprising that the euro will weaken, "said one analyst at a U.S. bank.

Meeting in Luxembourg

An emergency meeting was held between some finance ministers from the eurozone guaranteed approval cash loans. The president of the Eurogroup Jean-Claude Juncker, has denied that a meeting devoted exclusively to Greece took place. Still, according to Reuters, the German Finance Minister Wolfgang Schäuble and his Minister Jörg Assmussen are in Luxembourg for a meeting. These discussions would focus on topics such as Portugal, Greece or the succession to the head of the European Central Bank (ECB), but "nothing more," said a source in the euro area to the agency Press.

Contradictory statements agitate the euro area in recent weeks about a possible debt restructuring Greek.Lars Feld, one of economic advisers to Angela Merkel, considered by example on Sunday that the restructuring is "the only way forward so that Greece is a little relieved and creditors that help to solve the Greek problem." The ECB president Jean-Claude Trichet, for his part flatly denied Thursday that event.

The mood is sullen at the Paris stock exchange after the sharp declines seen the day before (the CAC 40 fell 1.31% and fell below 4050 points). At midterm, the index lost 0.85% to 4008.79 points. Same trend elsewhere in Europe. London's FTSE was down 0.49% at 5954.66 points and the Dax was down 0.22% at 7357.93 points. Both indices had suffered the heaviest losses the Cac yesterday.

In Japan, markets are still closed, but in the rest of the region, the trend has been weighed down by investors disappointed with the overall economic figures fell the day before the United States, which have been faltering and Wall Street. The U.S. ISM services has indeed disappointed while the ADP employment figures in April came out worse than expected.Furthermore, oil inventories surged against all odds, which gave the lead in using oil, which fell below $ 110 in New York yesterday, which always move in the fall on Thursday.

On the foreign exchange market, the euro is also strong: it is trading at 1.4884 dollars around 11:00 pm after having again exceeded $ 1.49 during the meeting Wednesday.

In anticipation of the ECB

Statistical side to follow on Thursday: The German industrial orders were accused in March their first decline this year, falling by 4% over the month as analysts awaited a stagnation, according to figures released Thursday by the Ministry of Economy.

On Thursday, the ECB meets in Helsinki to decide on interest rates that will apply. Jean-Claude Trichet said Thursday it is the price of silver in early June or summer.In England, the BoE also decide on interest rates.

United States, expected productivity in the first quarter (first estimation) to 14.30. Same time, it will be the traditional unemployment claims. The employment figures that will fall tomorrow, Friday, are eagerly awaited.Yesterday, investors learned that ADP figures have reported a creation 179,000 jobs in April, less than expected.

Societe Generale falling, Carrefour sentence

Side values, a publication of rain fell again on Thursday quarterly earnings including Societe Generale, disappointing driving down the stock price of about 4.08% to 43.67 euros, lead the CAC.

After the excellent figures given yesterday by BNP Paribas, leading bank in Europe, SocGen announced a net profit of 916 million euros in the first quarter, a decrease of 13.8% over the same period of 2010 attributed to effect accounting related to the revaluation of its own debt.

Also at sentencing, the retail group Carrefour (-2.33% to 30.88 euros), which announced Thursday the departure of its Executive Director James McCann France and the postponement of a controversial quotation of its real estate subsidiary, but maintained its draft rate 100% subsidiary of Dia and its financial targets for 2011.

Lafarge (+0.08% to 45.71) reveals a net loss of 29 million euros in the first three months of the year for a turnover up 9% to 3.55 billion euros .

Legrand (-4.46% to 29.10 euros) in the first quarter increased 13.7% in sales and 41.2% of its net profit, thanks to emerging markets and new market segments which the group has made a priority, which has confirmed its annual targets.

Bureau Veritas (-0.02% to 58.30 euros) confirmed anticipate strong growth in its turnover and adjusted operating profit this year after an increase of 23.2% of its activity in the first quarter .

AXA (-0.73% to 14.89 euros) expressed confidence in improving its profitability despite a drop of 2% of its turnover in the first quarter to 27.92 billion euros.

Maurel & Prom, Arkema and Capgemini climb

The independent oil company Maurel & Prom announced Thursday want to split and rate of its independent subsidiary in Nigeria, whose shares will be distributed to the shareholders in proportion to their participation in the group. The action takes off from 4.23% to 14.66 euros this morning.

Arkema (4.53% to 71.78 euros).The net profit quadrupled to 151 million euros and EBITDA (EBITDA) reached 17% of sales through an increase much higher than the market.This puts us among the best chemists.

The French group consultancy Capgemini and Computer Services (1.36% to 41.06 euros) saw sales increase by 14.5% in first quarter 2011 to 2.3 billion euros and confirmed its objectives of achieving a growth in turnover of between 9 and 10% for the year.

The producer of wines and spirits, Pernod Ricard (1.13% to 67.74 euros) Thursday announced an increase in its turnover in the third quarter and confirmed its targets for its entire fiscal year (July 2010 – June 2011).

Air Liquide (0.61% to 97.53 euros) wants equity for the premium

Its CEO said he was open to the principle of paying a bonus to employees in case of dividend increase, provided to maintain the equity in a group with more than three-quarters of the members are outside France.

Alstom: -1.52% to 41.98 euros Moody's raised its outlook on the Baa1 rating on the group stable, negative cons.

Total: -0.78% to 41.44 euros, GDF Suez: -0.30% to 26.60 euros a parliamentary commission on Wednesday passed a bill to ban UMP in France in the exploration and exploitation of unconventional oil, gas and oil shale.

Michelin (-0.24% to 66.35 euros) announced an increase in the price of its truck tires, civil engineering, public works, agricultural and handling in Europe to meet the continually rising cost of raw materials.

TF1 (-0.63% to 12.59 euros), which has suffered several setbacks during the hearing last month, decided to appoint a new program director, Jean-François Lancelier, which takes the place of Laurent Storch .

The French chemicals group Rhodia (+0.16% at 31.53 euros) on Thursday posted a net profit of 151 million euros in the first quarter more than doubled over one year and raised its profitability target for 2011 , to become a recurring gross operating profit of "more than 1 billion euros."

Veolia Environnement (+0.50% at 22.26 euros) on Thursday posted a turnover up 11.3% in the first quarter thanks in particular to the resumption of its activities in the waste.

Mr. Bricolage (-0.36% to EUR 14) confirmed its targets for 2011 after publishing a stable turnover in the first quarter to 135.2 million euros.

Gifi (2.51% to 76.26 euros) registered a growth of 5.2% of its turnover for the first half of its fiscal year 2010-2011, to 351.3 million euros.The turnover of the group's second fiscal quarter ended March 31 rose 7.5% to 139.1 million euros.

Cegedim (0.87% to 43 euros) has reported a sales increase of 2.9% as reported to 211.5 million euros, but down 1.4% on comparable, and maintained its target of 4% growth in turnover for 2011.

The food group Bonduelle (+0.13% at 68.20 euros), specializing in vegetables, posted a rise in its turnover for the third quarter from 14.6% to 421.6 million euros thanks to an improvement in consumption, particularly in eastern Europe, according to a statement.

Tonight will be the turn of Vale, Wendel, Eiffage French Cement and NextRadioTV publish.

Tenants of social housing are not immune from drastic rent increases. Like every year, the consumer association CLCV has identified breaches of the law practiced by the agencies managing the Public housing (HLM). According to the survey released Tuesday on France Info, they are now 12% exceed their rights by charging rent increases above the limit.

For these agencies, rent increases are restricted by law. Since 1 January 2011 in particular, can not exceed the benchmark rents for the third quarter of the previous year, calculated in line with inflation. This index amounted, in Q3 2010, to 1.1%. The budget law for 2011 provides for exemptions, however.This is particularly the case for some homes have been rehabilitated, or for bodies subject to a reorganization plan, and only if authorized by the prefect.

This year, 4% of housing agencies have therefore waived the rule requiring their tenants rent increases higher than 1.1%. Especially, 8% of them have violated the prohibition to modulate increases in housing rents function. For example, the CLCV said that rents of public housing agency in Ile-de-France increased up to 7% for some units!

Context of budget cuts

L'Union Sociale pour l'Habitat (USH), which represents some 800 housing bodies, regrets his side "lack of seriousness" of the survey released Tuesday payday advance.And stresses that the rent increases exceeding the cap applied to some tenants may face special situations: exceeding the limit of resources, negotiations with the occupier, etc.. "Despite these cases, the average increase in rents raised by CLCV is 1.04%, lower than the ceiling imposed by the law!", Raises the USH.

The federation is also concerned that housing agencies CLCV not insist more on the 33% of housing associations have increased their rent by less than 1.1%. An "exemplary action in a context of fiscal restraint, it is noteworthy. At a time when private rents take off, the public housing are still seen as a remedy to curb spending on housing, says a TNS Sofres survey published in late April. Even if a majority of respondents called for greater transparency in the allocation of housing.

The "Woodstock of capitalism" was a little less festive than usual. The general meeting of Berkshire Hathaway in Omaha, Nebraska has certainly met this weekend nearly 40,000 shareholders still very admiring of Warren Buffett. The boss of the holding company was nonetheless forced to admit the mistakes that tarnished his reputation. Since the end of March shocking resignation of David Sokol, one of his closest collaborators and presumed successor, the legendary investor had remained silent, which many blamed him.

David Sokol is suspected of insider trading. It is the subject of an investigation by the Federal Financial Market Authority (Securities & Exchange Commission). Former senior officer of the Empire Buffett bought in January for his own 10 million shares of Lubrizol.A few days later, he recommended the acquisition of the entire company Berkshire Hathaway. A project whose announcement was then boosted that share to 28%. Gain for the portfolio of David Sokol: 3 million dollars!

In the wake of the publication of a report by a committee of the board of Berkshire Hathaway, Warren Buffett, the third richest man in the world, has overwhelmed the very same public that it covered a year of praise earlier. "He violated our rules relating to insider dealing and violated the ethical principles that I set out to our managers every two years," acknowledged the octogenarian. Criticized for not checking in which conditions had already become his deputy Lubrizol shareholder, Warren Buffett admitted: "Obviously I made a big mistake by not asking him when he bought his shares."

Click on the thumbnail to enlarge the graphic.

The mystery kept on succession

The lawyers of David Sokol, who maintain that their client had not violated any rule or law, responded by expressing their surprise: "It is alarming that we have advised Mr. Buffett to radically change the position and use transparently a tactic to scapegoat. "Buffett said in late March was indeed his deputy resigned had not violated any law.

Bombarded as tradition dictates for hours about all sorts of questions by fans and shareholders, Warren Buffett gave no new details about the other issue of concern to Wall Street: who will succeed him someday, as it will David Sokol not? The sage of Omaha has remained elliptical, referring to an heir "straight as a".Suspicion falls in any case mainly on the pattern of its insurance business, Ajit Jain, on which Buffett had this sentence: "I can not think of a decision he made when I should have done better than he. "

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