Business News & Financial News

The major French banks, BNP Paribas, BPCE (People's Bank, Savings Bank), Credit Agricole and Societe Generale have passed the stress test bank, said Friday the Bank of France.

The central bank said in a statement that the four banks show a capital adequacy ratio "core tier one" aggregated from 7.5% to end 2012 in the worst economic scenario selected by the EBA (EBA) which stress tests conducted on 91 locations across Europe.

ABE required a minimum threshold of 5% at end 2012.

"Their level of capital is appropriate since in the end allow them to finance the economy even in the most degraded scenario," said Christian Noyer, Governor of the Bank of France.

In detail, Societe Generale shows the lowest ratio of four French banks with 6.6%, while the Crédit Agricole group shows the highest ratio at 8.5%.

Michel Sapin, the Socialist Party national secretary for the economy, said the refusal of registration to vote Socialist in the Constitution a "golden rule" budget. He said the government seeks only to make us forget its responsibility for the explosion of deficits. Michel Sapin, MP PS here in 2002. The Assembly should be adopted Wednesday the bill which provides for constitutional reform to include in the Constitution "framework laws to balance public finances" three-year program budget efforts that France must provide to clean up its accounts. The senators said their content, indicating that they "set as an annual spending limit and a minimum of new measures relating to revenue." Prime Minister Francois Fillon has expressed support for his part Tuesday in a meeting of Congress to vote for this bill.Interview with Michel Sapin, the Socialist Party national secretary for the economy. Why socialists preclude inclusion in the Constitution a "golden rule budget"?

Because it make an extremely serious matter, the recovery of public finances of France, a purely political purpose. It is a communication operation of a government that, since taking office, exploded the deficit. The objective is to the left in difficulty. We will not fall into the trap.

In defense of the government, exploding deficits is it not due primarily to the economic crisis?

Wrong! Only a third of worsening deficits in recent years is cyclical. The remaining two thirds are structural. The government sealed the deficits by cutting taxes for the rich.

Nicolas Sarkozy has recently criticized the socialist project in 2012, which will result in his debt to explode …

This is the first arsonist who wants to believe he is the fire chief! The economic framework of the socialist project provides an inversion of the curve of debt in 2013-2014 and a return to a deficit to 3% of GDP to more or less the same horizon, depending on the situation in France will be the 2012. Our commitments are consistent with current government promises. The difference is how we reduce that debt. We are committed to achieving a socially just, that is to say by ending tax breaks enjoyed by the rich and stimulating growth.

Which candidate for the Socialist primary emblem you best embody this commitment?

One who shows the strongest commitment to the fiscal consolidation is François Hollande.

Airbus expects orders on Wednesday for its A380 superjumbo, which damaged the copy will fly Sunday at Paris Air Show, said Louis Welsh, CEO of EADS, on RTL.

"The A380 will fly today and we should now have additional controls," he said.

Hong Kong Airlines said June 14 that it planned to order at Le Bourget for several A380.

Louis Welsh was also estimated on RTL that orders for Airbus at Le Bourget should "significantly" exceed the number of devices reached 263 to date.

The Paris Air Show opened Monday and ends Sunday after three days open to the public.

"The Civil Aviation is well. The market is gone. (…) The crisis is over for the sector of civil aviation business.For helicopters, this is expected for the next semester, "said Louis Welsh.

The Dow Jones and S & P 500 closed Friday on a sixth consecutive week of declines, a first since mid-2008 on Wall Street, burdened by fears for growth after poor figures from China's foreign trade.

The gloom has also been fueled by persistent concerns about Greek debt and uncertainty about a second bailout plan for Athens.

The Dow Jones finished lower by 1.42% (172.45 points) to 11,951.91, falling below the 12,000 points at close for the first time since mid-March.

The Standard & Poor's 500 broad, yielded 1.4% (18.02 points) 1.270.98, while the Nasdaq, which has erased all its gains since the beginning of the year to return to negative territory, dropped 1.53% (41.14 points) to 2643.73.

For the week, the Dow Jones has sold 1.6%.For their part, the S & P 500 lost 2.2% and Nasdaq 3.3%, their sharpest decline since August 2010 weekly.

Penalized by a burst of unfavorable indicators, the S & P has dropped about 7% since a peak in early May and many analysts expect to see the reference index fund managers fall to its lowest point in March, around of 1,250 points, where valuations might encourage investors to return to the equity markets.

"Vendors could they overwhelm buyers for a while? It's possible, but once we declined to levels correction in March, I think the market will stop (its decline)," Judge Robert Lutts, Cabot Money Management.

TOWARDS CORRECTION FOR THE S & P?

Around 1.250 points, the S & P 500 is about 2% below its current levels and closer to a contraction of 10%, generally considered to indicate a correction.

New figure sending the thesis of an economic slowdown, China's trade surplus accounted for $ 13.1 billion in May against 18.6 billion dollars expected, due to a surge in imports and a weakening of the Growth in global demand.

In particular, sales from China to the United States and the European Union were at their lowest since late 2009, excluding Lunar New Year holidays.

Bank stocks were among the most affected by the overall decline on Wall Street.The Federal Reserve announced plan to increase the number of establishments which will be charged annual assessments on the level of capital and the ability to raise dividends.

The KBW regional bank index ended down 1.11% and the S & P financial sector by 0.71%.

Adding to the gloomy mood of investors, poor market conditions prompted the organization of auto loans and real estate Ally Financial, which the American state is the majority shareholder, to postpone its initial public offering of six billion.

French production of electricity could decrease by nearly 10% this summer in the event of a combination of a heat wave and a persistence of the current drought, said Thursday RTE (electricity transmission).

The balance between supply and demand of electricity, however, presents a risk "low" for the entire summer, the group concluded in its analysis forecast for the summer season.

"On average, lower production in the scenario 'Heatwave' is estimated at 11,300 megawatts (MW)", the equivalent of the average production of 10 nuclear reactors, said RTE.

To ensure balance between supply and demand, "it may be necessary to import up to about 6.000 MW in late September, says he, or 50% more than during the summer of 2010.

The sheer volume of imports is "compatible" with the capacity of border trade, "he assures.

The situation could be more tense if the conjunction between drought and heat waves simultaneously affected several neighboring countries of France, also explains RTE.

RTE says that "a sustained heat wave episode, characterized by temperatures above 7 degrees C at normal temperatures, would lead to both reduced production and increased consumption."

At peak daily consumption, around 13.00, a rise of one degree Celsius of temperature induces an increase in consumption of about 500 MW, which is explained by "the increasing use of appliances air conditioning and ventilation during the afternoon, "according to RTE.

According to Jean-Claude Juncker, the Fund could refuse to pay its contribution to the next tranche of aid if it has no assurance that European countries will keep their commitments over the next 12 months.

The chairman of the Eurogroup Jean-Claude Juncker said the International Monetary Fund (IMF) could decide not to pay its contribution to the next tranche of aid to be given to Greece if he has no assurance that European countries take their commitments over the next 12 months.

Following these remarks, the euro has removed the bulk of the gains accumulated during the day, moving about 18:30 to 1.4118 dollars after 1.4206 dollars reached in a meeting and exchanges of Paris and Frankfurt also sealed judged by mixed U.S. data, have closed down.

"The IMF can only be operational if there is a refinancing guarantee of 12 months," said Jean-Claude Juncker, adding he did not believe that representatives of the IMF, EU and World Bank European Central Bank (ECB) sent a mission to Athens would lead to this conclusion.

A spokesman for the IMF has confirmed what the President of the Eurogroup, saying that the IMF could continue to lend to Greece until he had assurances of financing European countries participating in aid plan 110 billion established in May 2010 to come to the aid of Athens.

"We do not lend if we do not have assurance that there is no break in funding," she said.

Greece announced Monday new measures and privatization of economies to allow release of a new tranche of EUR 12 billion from the IMF and the European Union.

The Greek Finance Minister George Papaconstantinou said this week that if this installment was not released, the country would be unable to meet its obligations and, therefore, bankrupt, statements that have once again reinforced the hypothesis that Greece would not escape a restructuring of its debt.

The mission of IMF / EU / ECB is still in Athens to evaluate new austerity measures proposed by the Greek government and its privatization program, projects that are strongly criticized by the opposition.

ADJUSTMENT IN TEN YEARS

Following statements by Jean-Claude Juncker, the spokesman of the European Commission said the finance ministers of the euro area settle the payment of the next tranche of aid for Greece after the EU mission / IMF / ECB sent to Athens has made its report.

"If the Europeans are learning that the money must unlock the IMF on June 29 may be then the IMF expects the Europeans to take over and provide the share of IMF financing in Greece," said President Eurogroup.

"But this is not feasible because of the reluctance of some parliaments – in Germany, Finland, the Netherlands and elsewhere – to intervene in this way," he said at a news conference.

Jose Manuel Gonzalez-Paramo, Member of Executive Committee of the European Central Bank (ECB) has sought reassurance by saying it expected that Greece fulfills the conditions necessary to obtain the next tranche of assistance.

"I do not think wanting the possibility that Greece does not meet the conditions imposed by the IMF," he told reporters.

Olivier Blanchard, IMF chief economist, seemed to be leaning in this direction by declaring that the economic adjustment program of Greece did not derail, but added that he would probably ten years before we know whether the reforms had borne fruit.

"We must think about the adjustment of Greece as an adjustment in ten years," he told Reuters in an interview in Rio de Janeiro.

He added that Greece's debt restructuring was not inevitable, noting that there were likely "real" for the country to escape such an end.

"The restructuring involves a risk of contagion," added Olivier Blanchard.

Countries in the euro area began preparing in secret an extension of the maturity of the Greek debt, reported two days ago a Dutch newspaper, even though European leaders and rating agencies have reiterated that restructuring would do that worse.

At the G8 meeting which is held in Deauville, Herman Van Rompuy, the European Council president, said this morning that the euro zone leaders will do whatever it takes to avoid a default on its Greece debt, stating his confidence in the determination of Athens meet its budget targets.

Countries in the euro area began preparing in secret an extension of the maturity of the Greek debt, a Dutch newspaper reported Tuesday, even though European leaders and rating agencies have reiterated that restructuring would only worsen things.

Greece announced Monday new measures and privatization of economies to allow release of a new tranche of 12 billion euros from the International Monetary Fund (IMF) and the European Union (EU).

But financial markets are still doubtful about the credibility of the remediation plan in Athens, fueling speculation about the possibility of a new assistance plan and a restructuring of public debt, which could force lenders to waive a portion of their claims.

According to the newspaper Het Financieele Dagblad, citing sources in Brussels, officials of the euro area are already working with the technical preparations of a "reshaping" of the Greek debt, such as a slight lengthening of the duration of loans.

The article reports the remarks of the Dutch Finance Minister Jan Kees de Jager, in which the reshaping of the Greek debt is "a serious option" but only as a final measure of a "complete package".

WALNUT TALKS ABOUT "horror scenario"

However, the Governor of the Banque de France Christian Noyer told reporters Tuesday that a restructuring of the public debt of Greece would be the "horror scenario" and it was very likely that longer maturities of its loans is considered equivalent to a fault.Such a scenario, "is the collapse of the Greek economy is the horror scenario.That's why we've always said the restructuring is not a solution, "said Christian Noyer, a member of the Board of Governors of the European Central Bank (ECB).

Questioned the assumption of debt adjustment, sometimes called a "reshaping", he replied: "The longer maturities poses very complicated legal issues."

"It is likely that this is equivalent to a fault – because it can not be done legally only by prior exchange of securities, and if you make a forced exchange of shares is clearly a defect."

These words echo those of ratings agency Fitch, which downgraded sovereign rating on Friday and warned of Athens, following the lead Standard & Poor's, it would equate any form of "reshaping" of the Greek debt to a defect.

Moody's has imitated his two counterparts on Tuesday stating that "failure Greek could take many forms, including a modification of the terms and conditions (loans), a 'reshaping' or a selective buy-back 'voluntary' debt to a high discount ".

PORTUGAL AND IRELAND THREATENED IN CASE OF FAILURE OF GREECE

In an interview with Reuters, a senior Moody's noted that a lack of Athens would have dramatic consequences for the entire euro area and that Portugal and Ireland would be threatened in this case a lowering of several notches in their sovereign rating.

"A failure would be highly destabilizing and Greek would have implications for the creditworthiness of issuers across Europe," said Alastair Wilson, head of credit rating agency for the Europe-Middle East-Africa.

For its part, the European Council President Herman Van Rompuy has also held that a debt restructuring would only worsen the crisis in the euro area and has insisted that the EU was determined to avoid default.

"The real danger is that, one way or another, a debt restructuring or rescheduling aggravates the situation," he said at a forum organized by the Organization for Economic Cooperation and Development (OECD) in Paris.

"The risk of failure of such an operation is enormous."

Herman Van Rompuy said that "red line" was to avoid a default and a "credit event", that is to say the payment, potentially serious consequences, instruments of protection against default risk that Credit default swaps are the (CDS).

In this context, the CDS on Greek debt continued to climb Tuesday, which means it now costs 1.435 million euros for 10 million euros of Greek paper.

Public debt reached 327 billion Athens euros, or nearly 150% of gross domestic product (GDP) and is expected to exceed over 160% in 2013, a level that many analysts consider untenable.

The device has mainly benefited a very small number of people. Thus the first thousand beneficiaries at the top of the ladder have received a check average of 365,000 euros. Viewed from the Ministry of Economy and Finance at Bercy.

The device of the tax shield has cost 591 million euros in 2010, according to provisional results sent to members of the Committee on Finance, says Les Echos newspaper in its edition of Tuesday, May 3 The average amount returned to some 14,400 beneficiaries of the tax shield, which limits direct taxes at 50% of their income, amounted to 40,908 euros during the 2010 campaign, says Les Echos.

The newspaper said the scheme has mostly benefited a very small number of people. Thus the 1,000 taxpayers first, or 7% of beneficiaries have received a check average of 365,000 euros and totaled 63% of expenditures.At the other end of the scale, nearly half of the recipients (47%) represented only 3% of spending. These are "taxpayers with low income and not subject to the ISF (solidarity tax on wealth) but eligible for the tax shield under their property tax."

The wealthiest taxpayers will once more of the tax shield in 2012, but the government will avoid paying them refund checks, it was learned from Bercy to spare themselves annoying symbols in its presidential campaign. The government will remove next year the tax shield, which caps since 2007 the total direct taxes in half the income of a taxpayer.

Meanwhile, as part of its reform of the taxation of wealth, it will reduce the solidarity tax on wealth (ISF).But "in 2012, we can still play the shield if the taxes paid in 2011 exceeded half of the income received in 2010," it was argued at Bercy. So far, to claim the shield, taxpayers can either fill out an application to the tax office to get a refund check or, for those who are also subject to the ISF, wait until June and deduce for themselves the ISF they have the amount they are entitled under the shield.

Total on Friday issued the results up in the first quarter, thanks in particular to the sharp increase in prices of oil and gas, but production was down by 2.3% mainly because of the Libyan crisis.

The second European oil company by market capitalization, behind Royal Dutch Shell and BP before, said she intended to continue its investment policy, then it has set a budget of 20 billion dollars for all 2011.

"The increase in geopolitical tensions and the earthquake in Japan will change the balance on the energy markets," he said in a statement its chief executive, Christophe de Margerie.

Total has also said that its asset sales are expected to represent nearly 10 billion this year.

This amount includes the sale of its stake in Cepsa Spanish for about five billion dollars, announced in February, as well as being its refining and distribution in the United Kingdom and the gradual sale of its stake in Sanofi-Aventis, which amounted to 6.2% at end-March.

The chief strategy of Total, Jean-Jacques Mosconi, said in February that the group hoped to select a buyer for its British Lindsey refinery by the end of the first quarter.

In the upstream, the group indicates that the second quarter will be marked by consolidation under the equity method of production corresponding to the holding in the Russian Novatek from 1 April.

LIBYA WILL CONTINUE TO WEIGH

Production stops in Libya, which represent about 2% of Total's production in a full year, however continue to weigh on its performance.

Also in terms of production, Total confirmed in February that he was stable this year and an increase of 2% per year on average over the period 2010-2015.

Excluding items, net income for the group rose to 3.104 million euros in the first quarter (+35%) at a level higher than 2.935 million expected by analysts surveyed by the editor of Reuters, for a turnover of 46.029 million (+22%).

Net income reached 3.946 million euros (+51%%) including an after-tax inventory effect positive 946 million euros and other nonrecurring items.

Where Shell and BP have announced cuts of respectively 3% and 11% of production in the first quarter, Total reported a 2.3% decline to 2.371 million barrels of oil equivalent per day, a level consistent with 2.363 million expected by analysts.

Given its new quarterly dividend policy, the group plans to pay a deposit on September 22 concerning the first quarter of 0.57 euro per share.

Total also announced Thursday it would pay up to $ 1.37 billion for a controlling stake in U.S. company specializing in SunPower solar panels.

Around 9:10, as the total was down 0.47% to 42.805 euros, after opening up 0.2%, while the CAC 40 lost 0.33%.

"The results published by Total (…) growing faster than all its European competitors, thanks to the continued production of the group (a decrease more marked for its competitors) and its leading position in the costs, "he wrote in a note to Jean-Luc Romain, an analyst at CM-CIC Securities.

The Paris Bourse opened higher Wednesday, supported, like other European markets, with quarterly earnings in the United States considered solid, like those from Intel, boosting optimism in the market for European publications .

At 9:23, the CAC 40 progressed from 1.43% to 3964.38 points.

As for values, STMicroelectronics wins 4.24% to 8.24 euros and the fastest rise in the CAC 40 in favor of Intel's forecast, which aims a turnover higher than expected in the second quarter .

Peugeot recorded a gain of 3.59% to 28.145 euros after the publication of its turnover in the first quarter and confirmed its objectives, despite the announcement of Japan's impact on group results.

Other major European markets also rose, London and Frankfurt, respectively, advancing 1.37% and 1.65%. Of the European indices, the EuroStoxx 50 wins and 1.28% Eurofirst 300 is 1.12%.

The euro rose 0.57% against the greenback at 1.4418 dollar.

A barrel of U.S. light crude gained 0.77% to 109.11 dollars.