Business News & Financial News

The party of the presidential majority proposes the opening of branch agreements on legal working hours. For the head of the UMP, Jean-Francois Cope, the output of 35 hours is "inevitable." The national secretary of the UMP Jean-Francois Cope

The UMP will propose at its convention, which opens Tuesday, the opening of branch agreements in areas where the 35-hour "lasting problems arise," said Tuesday the Minister for Ecology Nathalie Kosciusko-Morizet on LCI. "Our position, which will be presented tonight is to give the possibility to open branch agreements. There are branches in which lasting 35 hours pose problems despite the flexibility that we have done," said Ms Kosciusko-Morizet.

Nathalie Kosciusko-Morizet did not specify which areas were specifically concerned, however, saying that all branches should be able to open negotiations."But there are areas where it is more complicated than others, where the division of labor is much less homogeneous than in others," she said.

In an interview published Tuesday in La Voix du Nord, the Secretary General of the UMP Jean-Francois Cope said that "the crisis, the output of 35h is inevitable, since it secures the purchasing power" .

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.

Michelin said Wednesday its objectives in 2011, the current uncertainties surrounding the economic time to have any impact on demand, said Michel Rollier, Managing Director of the tire manufacturer, the motor show in Frankfurt.

He also assured that the group's ability to pass through price increases and cost increases of raw materials, natural rubber head was intact.

Michel Rollier noted as such the increase of 4% to 6.5% in Canada on Tuesday announced the prices of passenger and light truck tires.

"Today, our sensors show that sales are conducted properly in accordance with our expectations, sales of winter tires are good," he said during a press lunch."We do not currently an indicator of deterioration."

"We know there are a number of macroeconomic threats, Greece first," he said. "In this case we know that it will be brutal but we will react very quickly."

Michelin intends to build on the experience gained during the 2009 crisis, including the use of a very regular control of the activity of all plants.

Michel Rollier confirmed the target of an increase around 8% of sales volume and operating income growth from one year to another.

The unemployment rate in France within the meaning of the International Labour Office (ILO) decreased slightly by 0.1 points in the second quarter to 9.1% on average in metropolitan (9.6% including the overseas departments -mer), according to data seasonally adjusted (SA) Interim released Thursday by INSEE.

The number of unemployed stood at 2.580 million in city, or 37,000 fewer than in the first quarter.

The unemployment rate in the first three months of the year have been confirmed at 9.2% of the workforce in metropolitan and 9.7% with Dom.

In one year, the unemployment rate in France fell by 0.2 points in the second quarter.

The unemployment rate for 15-24 year olds has fallen more sharply in the second quarter than the general population: 21.9% on the mainland, it folds down 0.9 points from January to March and a point in one year.

INSEE no longer publishes monthly unemployment rate since 2006, after a controversy over its methodology.

Eurostat, the statistical agency of the European Union, continues to do so, however, and announced Wednesday a rate of 9.9% for France (Dom included) in July, a level below a tenth of a point the average for the euro area.

The Justice Department considers the requirements for rating mortgage products related to the crisis "subprime". This investigation was launched before the rating is downgraded by S & P U.S. The rating agency Standard & Poor's has lowered a notch Friday, August 5 sovereign rating of the United States, from "AAA" to "AA +".

The U.S. Justice Department is investigating about the view that Standard & Poor's focused on asset-backed mortgages whose collapse led to the 2008-2009 financial crisis, said Thursday night a source close to the .

Investigation launched by the deterioration of the American note

The survey – which according to the source is trying to distinguish between what the S & P analysts wanted to do and what they were told to do – was launched before the rating downgrade does the United States at the beginning months.

The Justice Department has also conducted a survey of Moody's, one of two main competing S & P on the notes she had assigned to structured products during the crisis, said another source. Asked by Reuters by telephone and e-mail, a spokesman for Moody's could not be reached immediately.

The Securities & Exchange Commission (SEC), Constable of U.S. financial markets, has also opened an investigation into the possible role of S & P, a division of McGraw-Hill, in the crisis, said the first source.Representatives of the SEC and Justice Department have declined comment.

Notes biased on subprime loans?

The New York Times had first reported the investigation of S & P focused on whether the agency had assigned the notes to dozens of biased asset-backed home loans before the financial crisis broke out in 2008. The Justice Department was interested in cases where S & P analysts want to assign notes to some of these assets before being contradicted by leaders of the agency, said the daily.

A spokesman for S & P noted that among the principles guiding the action of the particular agency were "analytical independence and objectivity", adding that the company had taken steps to strengthen the implementation of these principles ."In recent years, S & P has received several requests from various government authorities regarding asset-backed U.S. mortgage. We have cooperated and continue to do so," said the spokesman.

It is currently unclear whether Fitch (Fimalac group), the third major rating agency, is also being investigated by the Justice Department. Neither Moody's or Fitch have lowered their ratings on the United States.

With Reuters.

The Tokyo Stock Exchange ended sharply lower Friday, with a decline of 2.51%, instead accusing a Japanese third session down due to renewed fears of a return to recession have pushed Wall Street and stock markets Europe the day before.

The Nikkei lost 224.52 points to 8,719.24 and the Topix, broader, sold 15.62 points (-2.04%) to 751.69.

Financial analysts believe it is unlikely for there to be a real rebound in shares before Ben Bernanke, the chairman of the Federal Reserve, is expressed on Friday at a conference in Wyoming.

"The measures to be taken by the Japanese government are limited and the current market weakness is mainly due to concerns about overseas markets," said Takahide Kiuchi, chief economist at Nomura Securities.

"Investors will mainly focus on whether the Fed will suggest that it could take further monetary easing."

The decline occurred on Friday in a trade volume rather low, below the average of the past week.

Car manufacturers, a strong presence in the United States, fell sharply due to concerns about the sharp slowdown in the activity of the world's largest economy, losing 1.39% Toyota, Honda and Nissan 3.34% 4.39% .

Nicolas Sarkozy and Angela Merkel Wednesday wrote to Herman Van Rompuy to ask him to chair the euro area, as they had announced the previous day. From there to talk about a government of Euroland, there is not that member states are not about to cross. Nicolas Sarkozy and Angela Merkel suggested Wednesday, August 18 to Herman Van Rompuy to chair the government's economic futut the euro area.

Following a two-hour meeting at the Elysee Palace, Nicolas Sarkozy and Angela Merkel proposed Tuesday the creation of a "real government of the euro area" which is moving, they say, "to economic integration enhanced ". This government will meet twice a year. Its president is elected for a term of two and a half years.The French president and German Chancellor wrote Wednesday to the current president of the European Union, Herman Van Rompuy, to offer him the position.

So far, only there – permanently – the Eurogroup, the Council of Ministers of Economy and Finance of the euro area, chaired by Jean-Claude Juncker of Luxembourg, which meets once a month. Its authority and ability to coordinate the economic policies of Member States leaves much to be desired – his decisions must always ultimately be validated by the Heads of States and the differences between the growth strategies of countries have increased.As for the many recent and between heads of state, they only occurred against a background of urgency of the crisis.

"The government of the euro area, it's dressing, it is a structure that builds to existing consultation bodies, said Henri Sterdyniack, an economist at the OFCE and the University of Paris Dauphine. A government, then a leader and ministers, who decide on the budgetary and fiscal policy. I do not see how a meeting twice a year the heads of state will change the economic governance of the euro area. "

Economic governance must be ways

"Having an institution at the level of Heads of State and Government to take stock of the euro area is a good thing, for its part considers Stephane Cosse, responsible for the economy to the modem. But we can not about economic government.This would require a European finance ministers in charge of ensuring consistency of the budget guidelines state, assess their financial needs, overseeing the issuance of treasury bills in Europe, and to embody the political level the unit of the euro area ".

Herman Van Rompuy can embody this super minister? This would give him space. Or whatever the skills of the former Belgian Prime Minister, he will remain a prisoner of the procrastination of European states and their leaders. And especially since his appointment has already been placed under the supervision of the Franco-German couple. In addition, an economic government must have the tools at its disposal to go far from folds fiscal year integration, such as Eurobonds. These were rejected by Paris and Berlin.

"The euro area as constructed has no budgetary authority and tax.As this power will not exist, the market will think he can win, says George Soros in an interview in Le Monde dated Thursday, August 18. "Europe is in danger," concluded the Hungarian-born American financier.

The Tokyo Stock Exchange finished up 0.23% Tuesday, buoyed by the surge in Wall Street yesterday, but the gains were limited by lingering concerns surrounding the strength of the yen on the foreign exchange market.

The Nikkei gained 21.02 points to 9,107.43 and the Topix, broader took 1.94 points (0.25%) to 779.06.

The Tokyo stock market has benefited from the good performance observed the day on Wall Street, thanks to a major merger or acquisition in the technology sector and hopes for solutions to the debt crisis in the euro area.

Google announced Monday the acquisition of the handset manufacturer Motorola Mobility for approximately $ 12.5 billion (8.7 billion euros) in cash to strengthen the market share of its mobile operating system Android.

The announcement Japanese technology support certain values, including the manufacturer of parts for smartphones Murata Manufacturing, which ended up 1.34%. The chip maker Elpida Memory has meanwhile increased by 5.08% while Renesas Electronics gained 1.86%.

But the strength of the yen on the foreign exchange market continues to worry investors. The dollar was trading around 0600 GMT to 76.81 yen.

"In addition to the summer slowdown, we could wait a while before the Japanese market will regain momentum after days of strong sales of last week," said Masatoshi Sato, senior strategist at Mizuho Investors Securities.

The Nikkei has lost some 7.6% since the beginning and is still in its 25 days moving average located at 9656.06.

Fitch Ratings said Wednesday it lowered its rating on Cyprus of "A-" to "BBB", but considered likely that the country has to rely on outside help to ensure its funding needs.

The rating agency said its new rating, which is attached a negative outlook, taking into account the fiscal slippage and expectations of seeing the country no longer have access to capital markets during the second half of 2011.

Fitch added that it could deteriorate further note of Cyprus about new fiscal slippage and a lack of political will to implement austerity measures.

Fitch is the decommissioning of a few weeks after those of Moody's and Standard & Poor's.

The new Cypriot government on Wednesday introduced an austerity plan of 600 million euros, consisting mainly of tax increases, to reduce the public deficit to 2.5% of gross domestic product (GDP) in 2012.

Volvo has maintained its forecast for Friday sales of trucks in 2011 while posting a result almost in line with expectations, which has helped jump title at the opening of the Exchange.

"During the second quarter, sales of Volvo continued to grow as a result of a steady recovery in mature markets and strong demand from emerging markets," said CEO Leif Johansson.

The Swedish group has reported an operating profit up 60% to 7.65 billion Swedish crowns (840 million) in the second quarter, against a forecast 7.67 billion in a Reuters poll.

Volvo still expects to sell this year between 230,000 and 240.000 trucks in Europe, and North America.

It also anticipates a recovery of the Japanese market after a decline of 26% in first half due to the earthquake that struck the country in March.

"Over the year, about 23,000 heavy goods vehicles should be sold in the Japanese market, representing a decline of 6%," announced the group.

Title Volvo opened up almost 5% at the Stockholm Stock Exchange.

Volvo has instead lowered its outlook for its second largest division, construction equipment, a growth of between 20% and 30% growth between 15% and 25%.

"The Chinese market is weakening due to the actions taken by the government to control inflation", said the group, adding that he has also strengthened its dominant position in this market.