Business News & Financial News

The trade balance between imports and exports French deficit was over 69 billion euros in 2011, the Secretary of State for Foreign Trade, Pierre Lellouche. This is more than the previous record of 2008. View of the commercial port of Marseille

The Secretary of State for Foreign Trade, Pierre Lellouche, announced a trade deficit of 69.6 billion euros in 2011, more than the previous 2008 record of 56.2 billion, in an interview published on the website of Figaro Tuesday. "With a trade deficit reached 69.6 billion euros in 2011 (after 51.4 billion in 2010) the results are less bad than expected," said the minister who had, in mid-January, revised down the estimated 5 billion annual deficit, previously estimated at 75 billion.

"In 2011, our imports have increased 11% to 498 billion. At the same time, more than 117 000 firms sold their products abroad, a figure unchanged from 2010, "said Secretary of State." Our exports increased by 8.6%, to 429 billion euro – which will create 90,000 jobs this year "has he congratulated

. Surplus for the food processing and aerospace

" We can be satisfied with the functioning of certain sectors: agribusiness is experiencing a historic surplus of 11.4 billion. The aircraft also implies a surplus of 17.7 billion through the sale of Airbus 534 "also said Pierre Lellouche

. It is observed that exports French grew less in 2011 than Germany, but also that exports from Italy, Spain, UK and U.S.. The global market share captured by France and has deteriorated significantly since 1990 from 6.2% 3.6%

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The New York Stock Exchange closed up 0.25% Friday, the Dow Jones 30 Industrial winning 29.66 points to 11,800.39. The S & P-500, wider, lost 0.22 points, or 0.02% to 1215.91.

The Nasdaq Composite fell 15.38 points his side of (0.59%) to 2572.61

These data are likely to vary even slightly.

The Securities and Exchange Commission (SEC) has opened a broad investigation into index funds (ETF) to ensure they are sufficiently transparent and do not feed market volatility, said Wednesday a leader of the U.S. stock policeman .

"The Commission staff are conducting a general review of index funds including on the sufficiency of the information provided to investors, the levels of liquidity and transparency of the underlying instruments in which the index products (FTE) invest, the accuracy valuations, the effectiveness of arbitration and the relationship between market volatility and FTEs, "said Eileen Rominger, Director of the Division of Investment Management at the SEC.

According to the text of a planned intervention Wednesday before members of Congress, the official stressed that the survey also aims to "gather and analyze detailed data on specific products."

This assessment is the second SEC investigation related to investment companies, after the commission decided in August to gather opinions on the potential risks of the use of derivatives by mutual funds ("mutual funds' ), ETFs and other structured funds.

ETFs, such as those managed by BlackRock, State Street and Vanguard Group, are financial products reproducing the weighting of an index and therefore its performance.Since their introduction in the 1990s, they took off to about 1,000 billion in assets (724.7 billion euros).

However, certain types of incidents and some ETF market, as the "flash crash" ('flash crash') of 6 May 2010, have fueled concerns of regulators, who fear that these index funds do not contribute to volatility markets and pose problems for the less informed investors.

During the 'flash crash', for example, ETFs have experienced massive changes in the meeting and represented 70% of aborted transactions.This incident prompted the SEC and stock exchange operators to set up a system of "circuit breaker".

The SEC also began to focus on leveraged ETF, used to multiply the gains, ETF and reversed, that achieve the performance opposite to that of the underlying index.

The growth slowdown coupled with the dynamism of the labor force will not help to reduce the number of unemployed, estimated employment center in its economic outlook. Agency employment center in Nice

Employment center does not provide for improvement on the unemployment front table and at best a stabilization of the number of job seekers in 2011 and 2012 and, at worst, a deepening if growth turned out lower than forecast government. "The slowdown in job creation combined with the dynamism of the labor force should not be allowed to initiate a decline in unemployment," said employment center in its economic outlook published Tuesday, October 4.

For 2011, the Agency plans to increase the number of job seekers without any activity of 5000 and 78,000 by including persons who have reduced activity.These predictions are based on a growth assumption of 1.75%, made by the government. Next year, "unemployment started to decline," if growth remained at 1.7% (assuming the government), with a decline in the number of job seekers with no activity on the order of 5000 and 12,000 by integrating people with reduced activity.

However, "if growth slowed in 2012, unemployment would continue to grow," said employment center. Based on a growth assumption of 1.4% (the IMF), the number of job seekers with no activity would increase by about 27,000.The prospect of a "stabilization of unemployment seems reasonable, except major accident" by the end of the year, said at a press briefing Christian Charpy, general manager of employment center.

Job creation is not strong enough to absorb the increase of the labor force

But, "unemployment will not reach the level it had before the entry into recession in early 2008," noted Bernard Ernst, director of studies of employment center who recalled that in previous crises of 1974 and 1992 the Unemployment had found "quite quickly" its pre-crisis. These forecasts are more optimistic than those of UNEDIC (unemployment insurance) that, based on growth in 2012 of 1.2% (consensus of economists) has provided an increase of 36,700 unemployed with no activity this year and 55,500 next year. "At this stage, a forecast of 1.2% in 2012 seems overly pessimistic," said Mr.Charpy.

Employment center provides, in addition, 130,000 net new jobs this year by companies affiliated with unemployment insurance, but the momentum is down (44 000 in the second half, against 96,000 in the first). In 2012, job creation should remain the same (126 000) if growth remained at 1.7% but reach only 101,000, with growth slowing to 1.4%. These new jobs do not seem sufficient to reduce unemployment because they are less than the increase in the labor force estimated at 140,000 or 150,000 per year.

According to Bernard Ernst, the labor force could grow more than expected after the announcement by INSEE in mid-May to strong growth in first quarter (0.9%).The prospect of an upturn in the economy brought on the labor market of people (youth, women etc) that were not previously found that increased enrollment in the employment center lists the "first mover" and people signing up for a "return to work," he said. "Registration for employment center are not independent of the economy" said Mr. Charpy.

Airbus wants to sell the Airbus A320 or A321neo, remotorisée version of its single-aisle aircraft at Royal Air Morocco and will remain alert to the intentions of Boeing, said on Wednesday sources close to the European manufacturer.

The Moroccan company in trouble last week announced its intention to sell ten aircraft, including four Airbus A321s, five years after their purchase, and five Boeing 737-500, to raise one billion dirhams and bring to five the The average age of its fleet.

According to La Tribune, Royal Air Morocco plans to build a 15-year exclusive contract with Boeing.

The subject could be discussed during the visit of Nicolas Sarkozy to Morocco on Thursday, Reuters said the source close to Airbus.

"It's surprising, given the investment they have made to operate the fleet, but Airbus will be particularly vigilant," she said. "Airbus is working with Royal Air Morocco on providing A320neo or A321neo".

Neither Airbus nor Boeing have to comment this information, while Royal Air Morocco was not immediately available.

The Moroccan government proposed last week to inject 1.6 billion dirhams (142 million) as part of a program of 9.3 billion dirhams by 2013.

These measures aim to strengthen the finances of Royal Air Morocco undermined by increased competition and oil prices and the impact of revolutions and the Arab attack in Marrakesh in April.

French Prime Minister spoke Thursday the necessary economic and social convergence between France and Germany, which will notament a common retirement age. Now it has to go to 67 across the Rhine. Prime Minister Francois Fillon presented Thursday, June 16 at the Small Business Congress in Paris a series of measures designed to "grow" these companies

Prime Minister Francois Fillon said on Thursday it would move to a retirement age of communication between France and Germany, where the legal age of retirement has to go in the coming years from 65 to 67 years . Referring to the "convergence" between the two countries tax the Prime Minister came out of his speech Thursday at the awards ceremony of the creative audacity to Matignon to engage in a plea for a reconciliation of working hours and the age of retirement between the two countries.

"It will take time to go to a joint work, we must move towards a common retirement age, it will move towards a gradual convergence of economic and social organization in both countries because it is the key to survival and the development of the euro area and the European continent, "warned Mr Fillon, without elaborating.

The retirement age in Germany will rise gradually from 65 to 67 years under a reform passed in 2007 and intended to prevent the collapse of a system challenged by life expectancy and an ever-growing shrinking of the workforce. The decline in retirement age will, however, very gradually, reaching actually 67 years around 2030.

French pension reform, enacted in June 2011, provides a decline of 60 to 62 the legal age of retirement.

The former minister mentioned the figure of 15 to 20 billion savings if the state gave shares in France Telecom, Aéroports de Paris, or Renault.

Patrick Devedjian (UMP) has called for Monday to resume the privatization of companies where the State is a party, seeing it as a deposit "of 15 to 20 billion euros."

Europe 1, former Minister launched as an example of struggle against deficits "are repeated privatization. There are considerable resources in terms of privatization."

He shelled several examples: "France Telecom, the state controls 27%. Me, I propose to sell 13.5%. It represents 4.7 billion."

"Airport of Paris. We do not have to keep control as powerful state of ADP. It is 3 billion. Renault, we have 15% of Renault. We sell.Air France we have 15%, we sell, "he said.

"Just on privatization, we can make 15-20000000000," summarized Mr. Devedjian. In more general terms, he said that Nicolas Sarkozy, the best candidate in his eyes to the right must, for the victory in 2012, presenting "an overall important and mind-blowing."

"If it is to have a policy that constitutes a system of patches that we deal with accidents one after the other, it is not convincing," he said. "When I see the left that has no project" is "a chance for our side if we come up with something strong, innovative," said the former leader of the UMP

The President of the European Central Bank Jean-Claude Trichet reiterated over the weekend of the ECB's commitment to price stability, which it considers "essential" to promote growth.

These words, delivered Saturday at the annual meetings of Jackson Hole (Wyoming), have followed a remarkable response from the Executive Director of the International Monetary Fund (IMF) Christine Lagarde, who has warned against the risk of the global economy plunging into recession and called for a rapid and coordinated political action, particularly through a recapitalization of banks.

"We believe that the very solid anchoring of inflation expectations is our one of our major assets," said Jean Claude Trichet, who did not mention in his address the crisis of sovereign debt in the euro zone or prospects for the policy of the ECB.

"This is something we consider absolutely essential to trust," he added, saying that confidence was useful in a difficult environment to help maintain growth.

The European Central Bank will adjust its monetary policy unconventional specific problems it faces, said the head of the institution in Frankfurt.

"The use of unconventional measures depends on the operation of the transmission of monetary policy and must be proportionate to the level of malfunction or interruption of money and capital markets or market segments," he said.

Jean-Claude Trichet echoed the comments of Christine Lagarde, that the upheavals of the political process in Europe increases the uncertainty.

"Paradoxically, we – as a group, as a whole – are not necessarily being in trouble because our fundamentals are very bad. Our fundamentals are very bad.The problem is that we have created difficulties in our governance, "he said.

"SLOWDOWN DOES NOT MEAN RECESSION"

Austria's Ewald Nowotny, a member of the Governing Council of the ECB and also present in Jackson Hole, said in turn that there was no reason to believe that inflation expectations had increased.

"What we see is that inflation expectations are stable," he told news agency Bloomberg.

"At the moment, when I look at oil prices and demand, I see no specific problem that could contribute to an increase in inflation expectations."

These comments suggest that the ECB has a mandate to keep inflation just below 2%, could keep its rates unchanged after two successive increases this year.

To the Governor of the Austrian National Bank, "the prospect of growth is intact" in the euro area and provide a solid foundation for next year.

"Even if there is a slowdown, it does not mean that there is recession," he said to Bloomberg, saying not to believe that the interbank lending market was moving towards paralysis, as in 2008 after Lehman Brothers.

"We should not overstate the situation (…) We are far from a situation like after Lehman.It's something to watch, but not an immediate challenge. "

Earlier this month, Ewald Nowotny was found that the surge in bank deposits with the European Central Bank was worrying, but warned that the economic situation in the euro area had not changed overnight.

Faurecia has identified its goals Tuesday in 2011 after a first half marked by strong growth as the automotive supplier will maintain the second half through its investments outside Europe and in countries at low cost.

The specialist for exhaust systems and car seats, including the manufacturer PSA owns 57.4%, achieved a consolidated turnover of 8.15 billion euros in the first six months of the year, a up 19.4%.At constant scope and exchange rates – it has gained particular outside the specialist German automotive Plastal – the growth was 15.5%.

Faurecia's operating profit rose 57% to 340 million, giving a margin of 4.2% against 3.2% a year earlier, and net income, group share, increased by 82% to 185.8 million euros.

"With the strong growth recorded by the group in the first half and improved profitability (…), Faurecia is now a year ahead of its business plan 2010-2014 presented in June 2010," said the equipment in a statement."Growth should remain strong in the second half in all regions and medium term supported by a high level of acquisition of new programs."

In a presentation to analysts, Faurecia said to expect in 2011 a new record in terms of new contracts expected between 13 and 14 billion euros against 13.1 billion in 2010.

The group also raised to 450 million its investment objective for this year, against an initial assumption of 350 million.On behalf of the profitability and international expansion, priority is given to low cost countries, where investments will increase by 89% against 16% for countries where the cost base is higher.

Faurecia has 42 industrial projects under way, eight in Central America and the North – including five in Mexico – twelve in the European area – including nine in Eastern Europe, Russia and Turkey – and twelve in China.

ONE YEAR AHEAD OF PLAN

As part of its strategic plan in the medium term, the equipment is a turnover of 16 billion euros by 2014, driven by an expected average annual growth of 12%, 8% organic growth.Faurecia is also an operating margin of 4 to 4.5% in 2012 and then 5 to 6% in 2014.

In June 2010, he had also set a goal of doubling the share of sales outside Europe makes it to 42% within five years, against 23% in 2009.In the first half, the share of sales – excluding monoliths for catalytic converters that Faurecia bought out – carried out in Europe reached 34%.

For the year, the Group has revised upwards its target of consolidated net sales to 15.7 to 15.9 billion euros, against 14.8 to 15.3 billion expected so far, an increase from 13.8% to 15.2% compared to 2010, and refined to increase its target for operating profit to 620-650 million euros, against a previous range of 580-640 million.

"The results are in line with consensus," said JP Morgan Cazenove in a note."The forecast EBIT is revised up slightly, but remains in line with consensus, while the increase in capex reduced cash flow prospects."

Faurecia has revised down to 100 million euros its forecast net cash flow in 2011, against 200 million euros expected so far.

The action Faurecia closed Monday at the Paris Stock Exchange to 30.34 euros, giving a market capitalization of around 3.2 billion euros. Since the beginning of the year, the stock jumped 40%.

The Paris Bourse could fall to its level of November 2010 Monday after scoring the lowest of the year, the results of stress tests of banks have not dispelled the fears of contagion from the crisis of sovereign debt in euro area.

Around 4:45 p.m., the CAC 40 index fell by 1.73% to 3662.40 points, after falling to 3648.76 points, its lowest level this year, weighed down by banking stocks, which represent nearly 13% of benchmark index of the Paris, and the lack of credibility of resistance testing ("stress tests") awarded by the European financial institutions.

"The market reacts to the lack of credibility of stress tests, which have not sufficiently taken into account the potential impact of sovereign risk, although their results were better than expected in appearance," said Stanislas de Baillencourt manager at Sycamore Asset Management.

"This also occurs in a context of uncertainty in the United States on the federal budget negotiations," he adds.

Consequently, according to a graphical analysis, the CAC 40 should continue to decline especially since the index is oversold and that it has opened a new "gap continuation" – gap in transactions between sessions marking the continuation of a trend – after that of Monday.

"CROSS OF DEATH"

This dynamic is reinforced by another important signal seller technically called the "cross of death" ("dead cross"), the moving average 50 days of the CAC 40 was indeed dropped below the 200 day Monday.

The benchmark index of the Paris, which lost nearly 12% since its peak in the year struck in early February to nearly 4170 points, could well fall to a level around 3620-30 points, offering major pivots the last two years, analysts say.

"A break of 3700 points at the close result in a test rack or floor 3660 points in November from 2010 to 3610 points," warned Franklin Pichard, director of Barclays Bourse France stating that only a rebound beyond three.790 points would reverse the current downward trend.

While stressing the attractiveness of current valuations (less than 10 times earnings expected for this year), analysts dismiss a scenario similar to that of stock last year (fall through August and very strong rally late in the years) although the meeting Thursday of the Eurogroup of Greece should be decisive in the matter while the contagion is beginning to reach Italy.

"We could still fall by 10-15% on Thursday today if European authorities do not demonstrate their ability to solve the case of Greece, representing only 3.5% of the debt in the euro area, while the Italy is from 20 to 25% of total European debt, "said Christophe Brulé, president of Entheca Finance.

"This issue (sovereign debt) will not be resolved within a week. This is an issue in the medium to long term that will take years to be resolved," warned his side of Stanislas Baillencourt.