World Articles

It all starts in late July in the French newspaper Le Monde. In a lively pen, "Philae" tells, in twelve parts, how a role play between two traders who are bored leads to rumors of a plot against Angela Merkel and the euro, all on the eve of elections French law of May 2012 ….

In this series of summer, we follow the wanderings of a young journalist from the Wall Street Journal sent to Frankfurt, headquarters of the European Central Bank and the financial hub of Germany. The names of the characters in the story are well known: Bruno Le Maire, portrays in Germanophile finance minister, Mario Draghi, Governor of the BCE, to the old speculator George Soros. On the agenda of the masters of the economy, threats to Societe Generale, next target of a takeover bid, and the Italian bank UniCredit.Their exposure to Greek debt fueling concerns.

Although it is amazed by the accuracy of the descriptions and the likelihood of situations, the informed reader understands that this is a fiction. In August 2011, Bruno Le Maire is not finance minister, but of Agriculture, and Italy's Mario Draghi has not made the head of the ECB, which is still headed by Jean-Claude Trichet.

On a rumor of a fall fiction real

It seems, however, whether this summer series that has inspired the fictional journalists Mail on Sunday, the Sunday edition of the Daily Mail for a story published Sunday catastrophic. In this paper, Simon Watkins and Dan Atkins have Societe Generale "at the brink of bankruptcy after terrible losses from its exposure to the Greek debt" and UniCredit "could collapse so similar" to the French bank.

The journalists added that "David Cameron has interrupted his vacation last night [Saturday, ed] to discuss the situation with Nicolas Sarkozy", a fact that has not been confirmed but exists also in the series of daily French.

Listed on online sites such as CNN mentioned on many forums, Twitter by many users, copied on blogs, the article from Monday, August 8 heat the rumor machine. Many elements accrediting effect the veracity of the article in the Mail on Sunday: Societe Generale is very exposed to the Greek crisis. August 3, his boss Frédéric Oudéa announced quarterly earnings down after a depreciation of 395 million euros for the shares of Greek states.

Wednesday morning the rumor that the company would be general in a situation so serious that the French government should intervene to save her is growing the market payday advance. The surprise announcement of a meeting at the Elysee Palace on the financial situation in the morning is a bombshell, and credibility to the words of the Mail on Sunday. The lack of communication officers of the Societe Generale does not help.

Meanwhile, as the stock market collapsed and with it the other financial stocks. At the heart of a black session, rumors succeed: France could lose its triple AAA, the government must save the banking system …

Only the evening that the management of Societe Generale denounces rumors and application to the financial markets opened an investigation into the launch of these sounds.But the damage is done: the bank saw its stock melted from 14.7% in one trading session.

A series of unexplained errors

Several questions remain: how an article in the Sunday edition of a tabloid, usually specializing in photographic study of cellulite British starlets, he could be taken seriously and set fire to the stock market ? How is it also possible that the two journalists of the text may have been confused, which to be inspired by what has been a fiction?

The text of Philae is, indeed, confusing realism. Hidden under the pseudonym, a journalist from the Tribune, Brussels correspondent of the daily economic, and whose employment by the evening paper did cringe at the writing of the World.A French bank would also indignant at the tone of the newspaper that gave off the soap truth, so much so that the newspaper added from 1 August 1 line warning: "Le Monde reminds its readers that situations, facts and figures reported in this fiction is imaginary and should not be taken as an expression of reality. "

There are no quotes in the article by Watkins and Atkins, which are directly drawn from the World Series, but the charges against SocGen and UniCredit, and the words of the intervention of Nicolas Sarkozy to be found in both documents. The Daily Mail has deleted Article guilty of its online site and apologized, acknowledging that the paper was based on "false information". Thursday noon, the Cac 40 fell below the symbolic threshold of 3,000 points, while Societe Generale fell by 7.26%.

The announcement was confirmed Monday afternoon by the company itself. The CEO of Caravelle, Pierre-André Martel, died Sunday evening with his daughter 20 years following the crash of a light aircraft near Lyon. Aged 57, Pierre-André Martel was known to have founded in 1995 Caravelle, the group specializes in the recovery and rehabilitation of companies, it still ran. Polytechnique, the man was also recently ranked by Fortune magazine Challenges 134th in France, with a wealth estimated at 350 million euros. He held still, with his family, 95% stake in his company.Caravelle, which announced the end of 2010, over 400 million euros in consolidated shareholders' equity and cash more than 200 million, operates in various sectors ranging from heavy equipment (Benalu, Marrel, EDBRO, Lamberet) to the self-medication (Cooper) through transport (Ducros Express, Girard).

"The provisions of Martel in this event are implemented and ensure the continuation of the group Caravelle," assured the company in a statement. When contacted, the company has not yet given details on the identity of the future (e) governing the group employs about 5000 employees worldwide, and manages 375 million euros in net business bad credit payday advance.

The board has not yet expressed

One obvious thing for the moment the most pressing issues: the future leader (or the acting team), will manage the back of the motor carrier Mory. Partially placed in receivership, it had attracted the interest of Caravelle, which confirmed the strategic importance of the resumption of mail Mory, "in order to bring its subsidiary Ducros Express." Candidates for the recovery should occur before July 31, but the direction of Caravelle had already filed early in July a written offer. Unlikely, however, that the tragic death of Sunday calling into question the strategic choice.

Meanwhile, the Board of Directors of Caravelle did not logically expressed on the scenarios considered in the coming weeks leading figure on the future of the group.The question of the succession of Pierre-André Martel remains in effect for the moment difficult to address, just hours after the formalization of that disappearance. Especially companies that, like the family, the imprint of a founding CEO of the group will need time to adapt substantial teams.

ALSO READ:

"Mory" confident "a buyer

"The future of Mory carrier is played at Bercy

From our correspondent in London

Despite a series of desperate measures taken last month to try to save the company, Southern Cross, the largest group of nursing homes in Britain, will have to end its activities. The company is in a position of near bankruptcy and will have to transfer all of the 752 homes it had to other management structures. Agreements are already being negotiated for a third of them. The listing of the group Southern Cross was suspended Monday for the London Stock Exchange.

An announcement has angered unions and associations for the protection of older people, worried about the future of 31,000 residents and 43,000 employees of the group.The bankruptcy of a private operator managed by investment funds of the City is also very bad news for the government to David Cameron, the reform of public health plans to provide a much greater role to the private sector.

Southern Cross tried last month to set up a restructuring plan which included the sale of hundreds of homes and the deferred payment of a quarter of rents for 752 homes, but these efforts have not been sufficient.

The magnitude of the crisis had forced the Prime Minister to take a stand last month. David Cameron was first started by saying that the state did not intervene in a private matter, but ended promise that he would do everything to ensure the situation of pensioners affected.A spokesman for Downing Street said Monday that no retiree "does homeless" because "there are currently about 50,000 places in the country" in nursing homes.

Reduced spending

The fate of Southern Cross also challenges the rapid privatization of the medical sector and assistance for the elderly in Britain for twenty years, a trend initiated by the Conservatives but pursued by Tony Blair. More than two thirds of homes in the country, many of which provide a public service, are now managed by private companies. The quality of their service is also criticism since private retirement residence with seven scored "poor" or "inadequate" in the inspections, said the Financial Times.

The cause of the collapse of Southern Cross is quite simple.The group had signed leases with annual increases of 2.5% guarantees but finds himself in is at odds because its major customers, municipalities and communities, reduce average spending of welfare benefits by 10% year, due to the combined effects of losses due to bad investments during the financial crisis and the massive budget reduction plan launched by the government Cameron.

This is the unfortunate consequence of a strategy set up by Blackstone, the investment fund that took control of the group in 2004. The fund wanted to increase the financial profitability of the group by selling its stock of homes, at a time when the UK property market was in a bubble.

The Cac 40, which was chained on Wednesday a third round of decline after five stacked, remains under the 4000 points at the opening Thursday morning in a slightly more optimistic: it rises from 0.47% to 1980 04 points in early trade. Last night, the index lost 0.44% to 3961.34 points, weighed down by Portugal – heavily damaged by Moody's – and China, which has raised interest rates to tackle inflation concern. On Thursday, the major event is expected on the European side: Jean-Claude Trichet, ECB president, said at 13:45 if the institution has also decided to raise its rates by 0.25 point, or not. The governor has implied several times that the tightening would be given on 7 July.

Meanwhile, around 9 am on Thursday, the euro gleans 0.10% to 1.4330 dollar.Yesterday, the euro continued its slight decline against the dollar because of concern about access to the economic health of the most fragile countries in the euro area.

Greek side, German and Greek Ministers of Finance estimated that Athens has more support economic growth, if Greece wants to find a balanced budget, during a dinner in Berlin on Wednesday night. In addition to the austerity plan, ministers believe that "only with a stronger private sector and with private investment that Greece can achieve a balanced budget in the medium and long term."

The U.S. employment in the viewfinder

In France, corporate failures recorded in France in the second quarter remained stable at a high level, the company said Altares.The number of failures has declined by 0.3% over the period, with 14,397 judgments backup, reorganization or liquidation direct. During the same period of 2010, there were 14,446 procedures, Altares said.

The trade deficit of France has also widened in May, breaking a new record for the third time since the beginning of the year to 7.42 billion euros against 7.17 billion in April, data seasonally adjusted, Customs announced Thursday. Side and real estate, Fnaim hold its quarterly press conference on the market of the former, at 11.

Overseas, we will monitor the ADP employment figures in the private sector in June at 14.15, very expected. And then the weekly claims for unemployment benefits at 14:30.The weekly inventory of crude oil will be announced at 16:30.

Banks lower their commissions

Societe Generale, BNP Paribas, Credit Agricole, Natixis. The Competition Authority has achieved that French banks were down significantly the commissions they charge on card payments and cash withdrawals at ATMs, according to a statement released Thursday by the regulator. The agreement, which ends a two-year old procedure, the institutions concerned to induce a loss estimated at 600 million euros, according to the Authority.

In addition, the U.S. investor Lone Star is in exclusive talks with BNP Paribas for the sale of German bank IKB reports the Financial Times Deutschland. Discussions with BNP Paribas are at an advanced stage, the newspaper said.The French bank has already finished the review of the IKB, but it is unclear whether BNP Paribas will buy all or just pieces IKB.

The Franco-Belgian bank Dexia has signed an exclusive contract for five years to distribute general insurance products of French insurer Axa through the windows of its Turkish subsidiary, with about 24 million, according to a statement released Thursday.

In addition, Dexia and KBC have passed stress tests which both banks have been submitted, the newspaper reported on Thursday Dutch De Tijd.

EDF and GDF Suez solder joint activities

After working together for over 60 years, the distribution of the two groups now find themselves in competition. These services are common to both energy giants could specialize in divorce and business, says Les Echos.An announcement should be made this morning, the newspaper said.

Alcatel-Lucent. The investment fund Permira is the favorite to take over the division of Alcatel-Lucent company, said on Wednesday sources close to the matter. The sources said Permira offers $ 1.3 billion (about 907 million euros).

Air France-KLM. The pilots of the National Union of Airline Pilots (SNPL) voted in favor of the project "bases province" of Air France, intended to counter the low-cost airlines, said Wednesday a spokesman for the airline, confirming information in La Tribune.

Innate Pharma wins a big partnership

The laboratory Bristol-Myers Squibb will develop and commercialize the antibody developed by biotech IPH2102 Marseille Innate Pharma for the treatment of cancer.A first payment of $ 35 million (24 million) could be followed by other payments, based on performance. In total, the licensing agreement could yield $ 465 million (319 million) in Innate Pharma.

Casino. The retailer Almacenes Exito Colombia, a subsidiary of French retailer, said Wednesday its intention to conduct a capital increase of $ 1.4 billion in the second half to repurchase shares held by its parent company in Uruguay.

Interparfums has signed an agreement Balmain home on the creation, manufacture and distribution of fragrances, according to a joint statement the two companies said on Thursday.

ALSO READ: "Bourse: is this a good time to buy stocks?

"Exchange: managers hope a better season

The support is not official, but the formula leaves little room for doubt. The U.S. treasury secretary, Timothy Geithner, "believes that the experience and solid leadership skills of the Minister Lagarde make her an exceptionally gifted candidate for the general direction of the IMF." In the race to succeed Dominique Strauss-Kahn to head the institution, is a way for Washington to support the European rather than his rival Mexican Agustin Carstens.

This statement therefore encourage what Christine Lagarde who must, on Thursday, passing his oral exam before the Board of the IMF. She must convince the 24 members it is the most capable of governing the IMF in the current turmoil. Agustin Carstens, he led his interview Tuesday.

The Mexican Fund for an impartial

During this session, had said Monday the institution, "each candidate will present his views on issues facing the Fund and its member states, and administrators will be able to interact with the candidates." Mexicans called for an increased IMF resources permanent, impartial, representing more emerging economies on its board of directors.

Christine Lagarde was in turn focus his presentation on an IMF "responsive, cooperative, legitimate and fair." So far, she expressed hostility to a restructuring of the Greek debt. When asked whether she was confident before the interview, the French Minister exclaimed: "Forever!".

Two shadows loom, however, about his candidacy. First, the case Tapie, who has rebounded earlier this week, and the Greek crisis.Brazil has indicated, through his representative at the IMF, Paulo Nogueira Batista, he expected the future Director to hold a position of severe vis-à-vis Greece: "We need strong action to obtain from Athens, and a clear financial commitment on the part of the euro area. A general statement is inadequate. " A position held since the beginning of his campaign by Agustin Carstens, who says he even opened a debt restructuring if necessary.

Preordained

For many observers, however, the game is a foregone conclusion for Christine Lagarde. "The French Minister on course to win," and headlined the Wall Street Journal on Thursday morning. She enjoys the strong support from almost all European countries, over 15% of the vote.One member of the board should, however, provide support to Agustin Carstens: Mexican director representing Spain and Latin America, 4.7% of the vote. Brazil has not made clear in his favor.

The decision should ultimately be taken on the basis of consensus, not wanting the institution or place one of its member countries is at odds vis-à-vis a future director or humiliate an unsuccessful candidate. The outcome of the deliberations is expected Tuesday at the earliest, and June 30 at the latest.

ALSO READ:

"IMF: the wheels of an election

"IMF: more than two candidates for a chair

»COMPUTER GRAPHICS – The CV of Christine Lagarde meet IMF demands

»COMPUTER GRAPHICS – Understand the business Tapie, Credit Lyonnais

"How does the IMF

In Athens

It is now the strongman of the government just revamped George Papandreou: Evangelos Venizelos. Imposing, talkative and impulsive, professor of constitutional law of 54 years did not mince his words when entering his new office as Minister of Finance: "I left the Department of Defense to enter a war", has he said. And for good reason, this war is that of the economy. He is determined to carry out reforms and has a good chance to convince members to vote in favor of the second austerity plan on 28 June. Observers say it is the ideal person to mitigate the discontent within the party.

The entire political class recognizes Evangelos Venizelos his intelligence and his status as a pillar of the new government.Gathering his majority was a priority to calm the ardor of the critics of the Greek Prime Minister.

But for some experts, this man from northern Greece be too wet to agree with the Europeans. "It is the one who said the Council of Ministers last week, the country was under occupation administration. How Brussels will trust him? "Assen there be in the ranks of the Conservative opposition. For political analyst Giorgos Kirtsos, "Evangelos Venizelos wants to be Prime Minister. It has a very social discourse and is highly regarded by the barons of the press. He will use his gift as an orator to get the reforms in the population, "said he. "When he was at the Ministry of Development, he has managed the beginning of the privatization of the Greek electricity utility by arranging their own way.Now, decisions are more difficult, especially since it's not a reformer, "says Giorgos Kirtsos. The new "czar of the economy" as it is called the Greek press has an agenda of the busiest on the European stage. He will travel to the meetings of the Eurogroup and has make a difference with his predecessor, Giorgos Papaconstantinou, became Minister of the Environment.

Control social discontent

According to Petros Doukas, an economist and former Greek finance minister, Evangelos Venizelos must quickly make proposals to the Europeans to save the country from bankruptcy. This could be a takeover of the Greek debt, "which currently is sold off at least 40% on the secondary market," said he. "Once acquired, they can erase part of our debt and other loan us again as a loan at 4% for twenty-five years.This is the ideal model for the second funding of 100 billion euros, "explains the former Conservative minister.

Meanwhile, Evangelos Venizelos will also control the rising social discontent in the country, especially as the indignant and unions are willing to take it a turf war without thank you. Rallies and demonstrations are scheduled from Sunday until Friday next European Council.

On Thursday morning, Veronica has resigned to go through the door of Deco, the charity for families in debt. "To keep a little dignity and do not lose your head," the young woman slips, looking weary. At age 41, mother of a boy of 7 years, Veronica is unemployed, as her husband who had to close its microenterprise. Riddled with debt, the couple has any income to EUR 400 for unemployment benefits, for 2500 euros in charges refund! They have no less than ten credits on the arms: property, auto, personal, card purchase … not to mention the liability of the company, social security arrears and income tax. Today, Veronica sees no alternative but to initiate insolvency proceedings. "To start over, she hopes.All our goods will be confiscated, it will be under supervision of a director for five years, but then finished the debts, they will be erased. "

A little behind, hidden behind thick glasses, square Pedro feverishly bothers her phone number. If using Deco is an attempt to renegotiate two loans: a consumer loan of 8500 euros contracted with Cofidis and a mortgage of 15,000 euros to the Central Fund deposits that could not pay despite the sale of his house in August 2010."I look forward to rescheduling or pay only the interest, time to recover."

The difficulties for this young professor began after the dismissal of his wife in 2009 and in January he has lost 200 euros from his salary, the first result of government austerity measures, so that today his income does not exceed 1,500 euros, to pay a rent of 650 euros, ongoing expenses and academic studies of her two children. "We can not do it. It has sought help from family, but it's hard for everyone, the quadra confesses. For the first time in my life, I went to the food bank. "

Examples such as Pedro or Veronica, the association received more than twenty per day, not counting the numerous letters bad credit unsecured personal loans.They are between 30 and 45, they are engineers, professors, lawyers, employees … a simple high school education or higher, an average income of 1,500 euros, an average of five credits in their passive but often much more. In 2010, Deco has received 17,372 applications, twice more than in 2008, owing much to job loss.

Cumulative effect

Natalia Nunes, head of the division of debt, also denounced the irresponsibility of financial institutions, which for years have opened the floodgates of credit, facilitated by attractive interest rates, but also households who, " lack of financial education, have left illusions. "The illusion with the entry into the European Union is to have grown to become a rich country. Credit is very recent in Portugal, it dates from 1990.It was a real revolution in a country of culture rather closed, "says Natalia.

Result, in 2009, according to the Bank of Portugal, the rate of household debt amounted to more than 130% of their disposable income. And for Natalia, for sure, the problem will intensify in the coming months with the recession and the restrictive measures imposed by the IMF-EU agreement. "There will be a cumulative effect between the abolition of tax relief, cuts in welfare, freezes wages and pensions, rising prices and interest rates," explains the manager. Ironically, this makes the success of collection companies. "It would create a weekly basis. They are there to exert psychological pressure, they even go to the neighbors, "denounces Natalia. On the mode of cobrador do fraque (collector habit), a local tradition in which the collector, dressed in black coat, says his victim …

The chic below Chantal Thomass change hands. The Sun Brand Apparel Group, its owner since 1998, sells the brand premium to the group Chantelle. Works just be informed and that of Sun reported Monday a favorable opinion. Only remains to finalize the signing of the founder, Chantal Thomass, who holds 34% stake. It is currently negotiating an agreement to continue to oversee the creation and an option to sell its shares in the next few years. The transaction price is estimated at 6 million.

"It's been ten years that Sun is planning to separate from the brand but had always hitherto encountered opposition from Chantal Thomass, says Luc Genet, elected at Sun CFDT Our group realized that the Luxury was a world apart from ours and not as profitable as retail.They have not occupied the brand and let it sink. "Turnover Chantal Thomass would be increased from 14 million a decade ago to 8 million last year, with a loss of 2 , 1 million. According to the union, the shareholder of Sun for five years, the U.S. fund Sun Capital Partners, "undressing the bride to return the cash before selling the group."

With Chantelle, Chantal Thomass is a partner of choice Faxless payday loans. It is indeed one of the last French lingerie that has not resigned to suffer the inexorable decline of the sector. Employing 6,200 people for a turnover of 340 million euros, he went all-out on the distribution and brand while keeping both plants in France.Together with its claws Chantelle and Passionata, he developed the brand Darjeeling (126 shops in France) and acquired in 2006 Orcanta group Pinault (56 stores), which are already sold products Chantal Thomass.

Private name

The designer to the eternal dark fringe is about to write a new chapter in the eventful life of its brand. After having sold the Japanese group in 1985 World, she had been dismissed and deprived of her name. Then the company was liquidated in 1996. Chantal Thomass was then able to redeem his name and raise its claw with the Sun group, then in the hands of the U.S. Sara Lee. 42 employees will be included by Chantelle as part of the redemption. The elected Dim worried about the activity of other employees who worked in part for Chantal Thomass, one year after the restructuring, the group also Sun, the Playtex brand.

The order of keys on computer keyboards is now the last vestige of the era of typewriters. In India, the last factory in the world still producing the devices on which generations of typists have damaged their nails, just down the curtain.

The Daily Star has revealed that, without controls, the group Godrej & Boyce, based in Bombay, not surprisingly, decided to cease production after more than half a century of production.The fault, of course, the irresistible rise of the computer, which has reduced from 50,000 units in 1990 to only 800 in 2010, the number of units produced annually by the conglomerate of the subcontinent.

The Indian government has given the coup de grace by deciding to gradually move to IT, to the chagrin of officials who say old type faster on a machine.

To liquidate the latest machines in stock, Godrej & Boyce shakes the rope speculation. "This is the last opportunity for fans of typewriters," said the Indian press one of the leaders of the group.

Accuracy before rushing to Mumbai: Most of them are intended for texts in Arabic.

The law on the reorganization of the electricity market is now back on track. Tuesday morning, confirming the information of Figaro, Eric Besson, Minister of Energy, said the sale price of the EDF nuclear power to its competitors would rise to 40 euros per megawatt hour as of July 1 next, then 42 euro from 1 January 2012.This device, designed to boost competition in France will be considered in a fortnight by the Regulatory Commission (CRE), which must render a reasoned opinion.

Meanwhile, the government clearly adjudicated in favor of electrical lights: it was still estimated at 42 euros per MWh the full cost of nuclear power (operation, maintenance, future investments …), while its competitors, GDF Suez head, had set the bar at 35 euros, in line with the current regulated rates.

The reaction of GDF Suez has been immediate. The other French energy giant said that "this election will penalize customers who will experience increases for electricity prices." Convergence expected by 2015 between regulated tariffs and prices Arenh (restricted to nuclear power history) will increase mechanics first.The consumer association UFC-Que Choisir dread even price shock, "a rumor, according to Eric Besson, which I would like to help twist the fact."

Also in the eyes of GDF Suez, the high level of Arenh prevent the establishment of effective competition in electricity supply in France. In these circumstances, the group will study the consequences of that decision and the possible ways to overcome the narrowness of the market opening in the short term induced by the choices of government. "

Another competing operator EDF, Direct Energy (which serves over 600,000 clients), however, shows less severe. Its president, Xavier Caitucoli welcomes first that law enforcement has not been postponed, as had been discussed earlier this month. "After several years the French market was locked, the start of the competition has really come.At 42 euros, it is possible for a competitive operator, although it will be difficult, "he says.

Seasonality

Xavier Caitucoli, it should also not focus too much on the price of Arenh: "The product is also very important and the fact that the volumes of energy vary according to seasonality will make it attractive." Sub- understood: in winter, when electricity prices are very high on the wholesale market, Direct Energy will be able to provide through Arenh on much more interesting.

In this issue, which collects opinions shared, all players meet at least the fact that the accident Fukushima weighed a heavy weight."Somehow, the government has anticipated that the audit of EDF plants could lead to huge additional costs of maintenance and needed to be reflected in the selling price of electricity."