Business News & Financial News

Pflimlin Etienne, President of the Mutual Credit, announced Monday he was resigning his post at the head of the French mutual bank.

"I decided, for personal reasons, to end my functions as president of the National Confederation of Credit Mutuel, and the Federation of Credit Mutuel Centre Est Europe," he wrote in a statement released to the press by Credit Mutuel.

The banking group, in its statement, said that Michael Lucas, the current CEO of the Credit Mutuel will replace Stephen Pflimlin as President from October 14.

Previously, a source close to the group's management confirmed to Reuters that information revealed by the newspaper Les Echos.

"Yes, there is a press release that starts tonight at 18 hours, but I think I'll try to move forward," said the source had told Reuters.

Violent protests in tens of thousands of textile workers in Bangladesh have led to the closure Tuesday of 700 plants supplying most major brands of western clothing.

The riot police fired rubber bullets and tear gas on the workers in the industrial area of Ashulia, north of the capital Dhaka.In this sector, workers, requiring a higher minimum wage of 25-70 dollars, have erected barricades of old tires, set fire to trucks for delivery and launched missiles at the police for fourth consecutive day.

Some 800,000 workers spend many factories closed down 700, but "tens of thousands" more are on the streets, forcing shops to close, "said deputy chief of police in Dhaka Monowar Hosain.

Plants that have been forced to close their doors provide Western chains such as Wal-Mart, H & M, Tesco, Carrefour and Metro, as well as major brands like Tommy Hilfiger, GAP and Levi Strauss. The workers demanded wage of at least 5,000 taka (70 dollars) per month.The current minimum wage set in 2006 is only $ 25.

Read also: Foxconn increases wages by 70% in China

Under the patronage of manufacturers and exporters of textiles (BGMEA), the violent protests, which began Saturday, has created a climate of "panic and anarchy, forcing factories to close until further notice. "More than 50 factories were ransacked by protesters who prevented and deliver orders on time, resulting in losses totaling millions of dollars," said Vice-President of the BGMEA, M. Mohiuddin Shafiul Islam.

Labour Minister Mosharraf Hossain promised after an emergency meeting with the management of textile wage increases, but has threatened "strong action" demonstrators.Textiles account for 80% of annual exports of Bangladesh and its factories employing 40% of the workforce of the industrial countries, most of them women.

News Corp. has been beneficial in the fourth fiscal quarter thanks to strong performance of its cable networks and advertising revenue growth of its newspapers.

The media company posted a profit of 875 million, or 33 cents per share for the quarter ended June 30, against a loss of 203 million (eight cents per share) a year ago when News Corp recorded a asset impairment charge.

Turnover rose 5% to 8.11 billion dollars. The Thomson Reuters consensus I / B / E / S gave a turnover of 8.05 billion.

Action News Corp. gained 2.9% to 14.25 dollars after the close of Wall Street, in response to these results.It grew by 12% since the beginning of the year, while the S & P movies and entertainment took 8% in the same time.

Rebound in advertising revenue and lower costs led to a growth in operating income by 20% in the press in the U.S. and internationally. The operating profit of its cable division has increased 31%.

In contrast, there was decline results from the satellite television and commercial services, and loss of the digital divide, including social network MySpace.

The International Monetary Fund forecasts growth of 1.4% in France this year, as the government, but is more cautious thereafter, and questions whether the government deficit back below 3% of GDP before 2015.

In its annual report on France on Friday, the IMF welcomed the "ambitious reform program" implemented by the authorities, welcomed the "major reform" of pensions and notes that French banks are strong, as the Recent tests have shown the organized resistance in the European Union.

But he stressed the risks to future growth, although France has fared better than its neighbors to the recession, and recommends giving priority to a "substantial and credible rebalancing" of public finances.

After a contraction of 2.5% in 2009, the institution sees gross domestic product of France grow 1.4% this year – the same prediction that the government – and by 1.6% in 2011, 1.8 % in 2012 and 2.0% in 2013.

These estimates are similar to those published in the April World Economic Outlook of the IMF, while those on the deficit is more optimistic.

After 7.5% in 2009 and 8.0% in 2010 (again forecasting government), the deficit would decrease to 6.1% of GDP in 2011.In April the IMF was around 7%.

"This is the result of a conference on fiscal deficits in July and pension reform in June," Harris says one in Bercy where we judge the IMF and Paris "on the same wavelength" .

"It's a good report of the IMF for economic policy the government," says one.

IMF WANTS THE ASSUMPTIONS OF "REALISTIC"

However, the IMF is the deficit to 3.9% of GDP in 2013 and, according to his script, is that in 2015 he would return below the 3% limit set by the Maastricht Treaty.

The stability program of France plans to achieve the 3% deficit in 2013, subject to a growth of 2.5% from next year.

"To make the effort of more credible, it is important to establish the framework for budgetary planning on realistic macroeconomic assumptions," the IMF in his notes, echoing criticism by the European Commission issued in March when he was sent to the stability program.

During a conference call, one of the reviewers, Erik de Vrij, however relativized this message indicating that the deficit target reduced to 3% in 2013 could be achieved if the pension reform is completed.

"By including the pension reform, there is a good chance of reaching 3% deficit by 2013," he said.

Published annually after the visit of a mission, the IMF notes is rather complimentary to the government's economic policy but calls for greater efforts on reforms and fiscal consolidation.

"A fragile recovery is underway in France," it said.

Her limited exposure to international trade, the existence of a strong enough financial sector, the importance of social safety nets and measures to relaunch "well designed" have enabled France to resist the global crisis that most comparable countries, the IMF noted.

But, he adds, 'the characteristics of the French economy, which have protected partly during the recession are also those who probably will slow the recovery.

"PUSHED MORE INITIATIVES"

The unemployment rate of 9.5% in 2009 to reach 10.0% on average this year and peaking at 10.1% in 2011, before easing to 9.7% in 2012 and 9.2% in 2013 according to the IMF.

At the same time, public debt would reach 84.3 in 2010% of GDP against 78.1% in 2009 and would continue to deteriorate until 2013, when this ratio reach 90.3%.

"The imminent consolidation of public finances in France and most European countries will weigh on demand, and concerns that continue to generate sovereign risk require continued vigilance," said the Fund, requesting the authorities to "implement with their energy reform program to support the recovery. "

On the fiscal consolidation policy, the IMF considers that the measures already announced on revenues and expenditures are "large" but said that "further efforts are needed at all levels of government to achieve fiscal consolidation is the medium term ".

The institution also delivers a good report on the reform of banking regulation, acknowledging in particular the establishment of the supervisory authority which has for the month of March all supervisors and approval of the bank and insurance in France.

The Franco-Dutch Unibail-Rodamco, faced with a lackluster economic environment, will make the cash to shareholders to try to offset the stagnation of its results.

The leading European commercial real estate offers and distribute 1.8 billion euros in cash to shareholders, or 20 euros per share in respect of a return of capital, "he said Wednesday in release.

This operation, which takes the form of a refund procedure premium contribution, roughly the amount of sales, net of acquisitions made since the merger in 2007 between Unibail and Rodamco, the company said.

Unibail-Rodamco has sold four billion euros of assets since the merger and purchased 2.4 billion euros.

The transaction will be subject to an extraordinary general meeting on September 8 for a payment on October 12 and will be funded by four billion euros in credit lines.

Meanwhile, the company said it benefited from renewed investor interest in quality real estate assets to accelerate asset sales and further focus on its biggest shopping malls.

In seven months, Unibail-Rodamco has sold 1.2 billion euros of assets, with an average premium of 9% compared to their appraised values.It plans to sell another 500 million by the end of the year and 2.5 billion by 2012, the Netherlands, but also in France, Spain and Scandinavia.

The land group aims to reduce the number of shopping centers from 95 to 60 by 2012.

NO IMPROVEMENT FOR HIGH

This strategy of refocusing the group on its greatest asset and most cost reflects the uncertainty about the future growth and household consumption.

"I see no reason for a big improvement in overall consumption, but our schools should do better," said Guillaume Poitrinal, CEO, a few journalists."I'm not optimistic about the economic situation in France, but our particular positioning can help us gain market share," he added.

Some analysts also see it as an uncertainty about the continued recovery in property prices.

"Having to pay a special dividend and accelerate disposals may mean that the company does not believe too much in pursuit of the rising property market," commented one of them, who would not be identified.

The company has not yet abandoned its development projects and plans to invest 1.5 billion euros by 2015 to modernize its existing facilities and 5.7 billion for new projects, of which 1.3 billion are actually incurred.He did not rule out further acquisitions.

After the transaction, Unibail will remain the land the least indebted in Europe with a debt ratio increased from 31% to 40%.

Standard & Poor's revised after the announcement, his outlook on the company, which went from stable to negative, while confirming her an "A" long term "A-1 'short-term, and Fitch, which replaced Moody's at the request of the group has assigned a grade "A" long-term debt IDR (issuer default rating).

RESULTS NO SURPRISE

For the first half of 2010, Unibail-Rodamco has published a recurring earnings per share of 4.70 euros, up 0.4% in the first half of 2009, with net rental income of 624 million, down 1 6% (+0.4% at constant perimeter).

Its net asset liquidation stood at 131.00 euros per share, up 2.2% from late 2009 its assets increased by one billion euros to 23.3 billion, ending a two- year decline in the value of its assets.

According to a consensus calculated by the editor of Reuters estimates from a dozen analysts, estimates ranged to 4.51 euros for recurring earnings per share and 130.06 euros for the net asset value (NAV ).

The property has confirmed its growth target of zero to 2% of its recurring earnings per share in 2010, including the impact of capital repayment, after rising 7.1% in 2009, mainly because of low indexation of rents.

The single European property to be included in the Eurostoxx 50, with a market capitalization of 12.5 billion euros, closed up 2.79% in the Paris Bourse to 140.100 euros before the publication of these figures.

Since the beginning of the year, the security loses 8.8%, after rising 44% in 2009.

Manitou Tuesday reported a sharp rise in quarterly sales, but said the second half anticipate a slowdown in orders and a possible impact on delivery times its turnover.

The specialist said all terrain truck build for 2010 growth of 10% to 15% of its turnover, after announcing a 36% increase in sales in the second quarter to 225 million euros, 8.3% throughout the first half, to 387 million euros.

The backlog reached a record level of 5,400 machines at the end of June, said Manitou.

"We focus on our ability to issue orders in a fluid and operational chain still very tense," the group said in a statement.

Manitou has estimated that its order intake for the second quarter allowed him to secure part of his turnover for the second half, but the group expects a slowdown in the second half of the year.

"We continue to believe that these orders are from reports of investment in 2009, the natural cycles of replacement of machinery, and the traditional seasonal effect," the company said.

"However, we do not always signal a real recovery in volumes, either through rental building, expansion of agricultural markets or just a restocking distribution networks," Has added.

The action Manitou closed Tuesday up 1.30%, to 11.68 euros in a market capitalization of around 440 million euros.

The World Trade Organisation has postponed the publication of a report on an action by the EU against the United States regarding subsidies granted to Boeing.

The progress report was published as a confidential WTO panel on the cons-procedure initiated by the Europeans was due July 16, two weeks after the decision of the international institution holding illegal subsidies received by Airbus from European governments.

"I can confirm that the president did speak with the parties concerned and said that because of the complexities of the case, there would be a delay in publishing the report," said Keith Rockwell, spokesman for the WTO.

The United States and Europe accused each other of illegally subsidizing their respective aircraft manufacturers.

Marc Touati, Associate Director of Global Equities

This topic is more socially and economically. In the current crisis, it is even very controversial, very "dangerous". We must therefore take tweezers in the formulation of the analysis to avoid offending the spell …

I. The model of solidarity to the French: the world's best

Originally the solidarity model, also called French social model may appear as the best in the world. Its basic principle is: high public spending and high tax burdens, but in exchange, through redistribution, greater solidarity and hence less inequality, less unemployment, less poverty and more comfort- be economic.

II.This model of solidarity no longer works

Unfortunately, the past ten years, this model is disintegrating, to the extent that public expenditures increase more and more (56% of French GDP in 2009), the tax burden is among the highest in the world. Despite this extravagant strategy, growth, structural decline, unemployment is around 10% sustainable, poverty rate increases (14% of French people living below the poverty line), including the widening inequalities in income and health and funding of the retirement pay is more assured. So the French model of solidarity is more effective.

Conclusion: how to find a more effective model

This is where the controversy settled: that it must also increase public spending and taxes.If this solution is certainly easier, it is not credible: it no longer works for 20 years and is a runaway. We must therefore stop veiling the face: the only way to make solidarity in France resides in the ability of the latter to the high growth. To achieve this, we must reduce the tax burden for all, make it as fairer, while lowering the inefficient public spending, including operating expenses.

Jean Paul Betbeze, director of studies of the Credit Agricole

Introduction: The word solidarity is one of the most important part of our vocabulary, one of the most sensitive too, because it is at the crossroads between economic and social. He asked how "to society", that is to say, how to combine growth, efficiency, distribution, justice.The issue of solidarity is today more acute because the growth is not at the rendezvous. This leads to questions about growth (innovation, the company …) and the terms of the distribution of wealth, with the idea that certain expenses, sometimes called Solidarity, were too high and / or have not contributed to growth, as might have been expected.

I. The French social model, an exception

Solidarity meeting in fact a set of situations. For one third of expenditure, are shocks that have affected people, health first, another third are economic shocks, mainly unemployment and its consequences for a third and third is the evolution costs associated with aging. Shock people, economic shock and the shock of aging are the sources of expenditure solidarity.We must study their rationale, their legitimacy and, where possible, their effectiveness. Looking in effect say that young people can not but be struck by the solidarity they restricted themselves to considering. The family, themselves and their friends and cronies. Altogether, they and their entourage. This sends the idea, positively, that the best solidarity begins at home and his family (training, job search and lifestyle), but also that state support, social activities are increasingly counted in First the conditions of retirement and old age support. Truth and realism.

II. There can be no solidarity without growth

So we must find ways to live together solidarity and growth, after some excesses were committed and at the inability to continue as before.It can therefore be, in any event, solidarity without legitimacy, without transparency, without verification. That is no explanation for it, without penalty to the excesses or misrepresentation and – increasingly – without education, training, to avoid any shocks. Economic solidarity corresponds to the current difficulties of the job. Unemployment is the brand, but also retirement (since the nonworking are partly taken into account). But support to individual entrepreneurs (with tax benefits) are also a de facto solidarity. A total of solidarity that we measure is often posterior to the problem, it must be proactive. It must be less than a correction, compensation of a preparation: training throughout life support mobility.Solidarity in the event of sickness is also essential, but it can not avoid the growing support in people themselves. Lifestyle, sports, medical conditions are independent of a reduction of medical risk and provide an old age happier, longer and less dependent on solidarity.

Conclusion: Overall, we must squarely address the solidarity at the intersection of economics and welfare, by making clearer the economy (transparency, fairness, efficiency), the general benefit of society.

Hungary will have to cut spending by about one to 1.5% of its gross domestic product (GDP) to fulfill the goals set by the International Monetary Fund (IMF) and the European Union (EU) this year but the Countries must also revive growth, said Monday the Minister of Economy.

Through several interventions aimed at calming investor fears, Gyorgy Matolcsy said that Hungary will stick to its objective of a fiscal deficit of 3.8% of GDP.

Speaking on CNBC, the Hungarian Minister of Economy said that there had been a number of failures in communication last week and added: "It is absolutely clear that Hungary is not Greece" .

On Saturday, the Hungarian government had already said to stick to its target of 3.8% deficit to GDP ratio in 2010 and was then considered "exaggerated" the official statements that had contributed to a downturn on the eve of Scholarships and a weaker euro.

"We will stick at 3.8% budget deficit this year, it was agreed with the IMF and the EU and accepted by the government and there is no doubt about it, we will stick to this figure "said Gyorgy Matolcsy.

"On the one hand, it is clear that austerity plan was not necessary. On the other hand, no recovery plan for the budget is considered.We will reduce budgetary spending and we will increase revenues and is the action plan of the new government. "

He also reiterated the government's plans for a tax cut, which does raise some questions among analysts about the ability of Budapest to meet its target budget deficit of 3.8% of GDP this year.

INVESTOR Perplexed

"We can not help being perplexed when the Hungarian authorities speak of a much larger budget deficit than expected and at the same time they exclude austerity measures and instead promise of tax cuts," said Lars Christensen, an analyst at Danske Bank.

Investors also continue to be skeptical since the early exchanges, the Budapest Stock Exchange fell more than 5%, while the euro continued to trade at least $ 1.20 and the forint vis-retreated à-vis the euro.

Bank stocks such as OTP Bank and FHB are particularly challenged, the first yielding 4.55%, after having lost 10%, while the second lost 3.41% at 7:30 GMT.

According to the Hungarian press, the Hungarian government could tax the banks to achieve its economic goals.

Gyorgy Matolcsy said on CNBC that by the end of May, 87% of the annual target budget deficit has already reached.

Most economists believe that Hungary is in a stronger position than that of Greece, its deficits and debt levels are not as high as those in Athens.

In fact, the Hungarian government debt has reached about 80% of GDP in 2009, against 133% for Greece expected this year. Budapest also has a surplus on current account last year and reduced its budget deficit to 4% after significant reductions in its spending.

However, the government nonetheless began Saturday a three-day meeting. The announcement of a program of measures is expected by the end of the day.

Gyorgy Matolcsy noted in particular a proposal for the removal of 20% of the 58 different categories of taxes.He hoped that a radical program of tax cuts three years could be launched this year.