World Articles

Time is now against Silvio Berlusconi. He must prove to the faster it puts its promises into action.

The head of the Italian Government is committed to the adoption by Parliament before Nov. 15 its plan to revive growth, the first stage at least. The measures were approved Wednesday by the Cabinet. Among the main liberalization of regulated professions and local public services, commitment to gradually raise the retirement age to 67, administrative simplification, auction of 15 billion euros in property assets of the state in three years.

This plan is in addition to 54 billion budget savings passed in September to restore public finances to balance by 2013, when the deficit reached 3.9% this year.

The first event will be played next week in the Senate.

Under no fax paydayloans, an applicant can apply for any amount between $100 and $1500, considering the importance of the ends.

French bond yields increasingly deviates from the reference German. And if the price that France has to pay its creditors rises relative to that payable by the neighbor across the Rhine, is that the repayment capacity is considered less French.

This distrust on observed past few days has increased further this Tuesday morning, after a warning from the rating agency Moody's. The French rate to ten years and have removed more than 1% (100 basis points) German rates, which are the reference unwavering in terms of sovereign bonds in Europe.

A disturbing record since the introduction of the single currency. On the London market, the French rate to ten years in the early morning reached 3.04%, while its German equivalent, the "Bund", down 9 basis points (-0.09%) to 2%.

At the same time, insurance (CDS) against a default on the obligations of the French state have seen their costs rise significantly. CDS to five years in France and were up 10 basis points shortly after 9:40, to 194 basis points according to Markit data. In other words, it costs 194,000 euros to insure against exposure to 10 million euros of bonds.

The gap could widen further

"We must relativize the gap (called the" spread ") bond rates between France and Germany: the level of French is extremely low rates, grade Cyril Regnat, strategist at Natixis. The ten-year French course is slightly above 3%, but the last five years, it stood at an average of 3.75%.In these circumstances, the spread can still dig a little. "The analyst believes, however, that the cost of debt already includes a breakdown of the French note one notch to AA +.

On this point, however, opinions differ. "The decline of the note is not yet in the curves: the rate could still rise from 30 to 50 basis points, that is to say 0.3 to 0.5% in the worst case, and reach a rate differential with Germany of 150 basis points, or 1 guaranteed cash advance.5%, "calculates Norbert Gaillard *, consultant to the World Bank and specialist rating agencies.

Why the interest rate differential between France and Germany increases

The rising cost of the French debt occurs observed Tuesday morning despite the fact that Moody's has taken more precautions than ever to launch his warning."She chose a time when the stress in the markets was relatively peaceful and has added a step ahead of the traditional reporting system in three stages," Norbert Gaillard analysis. Usually, the agency established the first note of the country "negative outlook" and then put the note "under review" before degrading it if necessary.

"It is very likely that the next move by Moody's, provided in three months, or to place a negative outlook on the rating of France," said Norbert Gaillard."How the country can indeed solve the three problems it faces: slow growth, deficit reduction and the difficulties of Greece and its banking system?"

In this context, "the Moody's decision means that the French can not help itself with its banks without risking his note: it has more room for maneuver necessary," Judge Cyril Regnat. "If the banks recapitalize without the state, then the fears will be evacuated on the AAA market and we should see an easing of interest rates." Investors have already understood: after the warning from Moody's, French banks have dropped the stock market.

* Author of "A Century of Sovereign Ratings", ed.Springer (USA), 2012

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Traffic in the transport is disrupted Tuesday, following the call for mobilization of CGT-CFDT, UNSA, FSU-Solidarity, who report an austerity program "inadmissible" the government and require "a different distribution of wealth. "

With the exception of SUD-RATP, who filed a notice of indefinite strike on July 31, no organization has called to stop work in transport.However federations CGT filed a notice with the RATP and SNCF, as well as SUD-Rail, to enable staff who wish to go forward.

Here are the latest traffic forecasts:

• At the SNCF

Tuesday, more than 4 of 5 TGV move on departure or arrival in Paris, except for the Atlantic TGV trains close to 3 to 5, and more than 2 runs a train on the TGV on average province-province.

For Transilien, traffic during rush hour is on average close to 2 trains of 3, and the TER, the traffic is close to 2 of 3 services at the national level. Locally, the traffic is 4 trains of 10 to a near-normal movement between regions.

For Intercités day (including Teoz), traffic is on average a train 2.

No Lunea (national traffic at night) will flow, however the nights of Tuesday to Wednesday.On international routes to night, no disturbance is expected to Germany and Italy. Traffic will also be normal day on the Eurostar (England) and Thalys (Belgium, Germany) and near normal on Lyria (Switzerland).

The other lines of Paris and Paris-Nord-Est have a service close to two out of three trains, and those of Paris-Saint Lazare, Paris-Montparnasse and Paris-Lyon train in two.

• In the RER RATP zone

Traffic is normal on the line A and the interconnection is maintained at Nanterre Prefecture. A train runs on two rush hour on the line B, and a train of four off-peak payday advance lender. Interconnection is suspended from Gare du Nord, but maintained at Nanterre Prefecture.

For portions of RER managed by SNCF, the traffic is normal on the line A (from Nanterre Prefecture in Cergy and Poissy) and Line E.There is a train of two outstanding on lines B and C of the RER, without interconnection to Paris Nord. On line D, it takes two to three trains with an average interconnection between Paris-Lyon and Paris Nord.

• In the metro and bus in Paris

In the metro, the traffic is normal on all lines except line 5, where it takes with two trains of 3.

Traffic is normal on lines 2 and 3 of the tramway. For T1, a train of 2 is outstanding.

• In the province

Strike notices were filed in 39 urban transit systems, including Lille, Marseille, Lyon, Bordeaux, Toulouse and Strasbourg.Such notice having been filed in most cases by a single union, the traffic should be only slightly affected.

The notice concerning the networks of the following cities: Amiens, Angers, Angouleme, Belfort, Besançon, Bordeaux, Bourges, Caen, Cannes, Chambery, Dijon, Douai, Lille, Limoges, Lorient (strike 55 minutes), Lyon, Le Mans, Marseille (strike 3:30), Maubeuge, Metz, Montluçon, Montpellier, Moulins Mulhouse, Nantes, Nice (strike from 9 to 12), Nîmes (strike 9:30 to 10:30), Pau, Poitiers, Reims, Rennes, La Rochelle, Rouen, Royan, Saint-Nazaire (strike from 10:30 to 14h), Strasbourg, Toulouse, Tours, Vichy.

• To monitor traffic

Hotlines are available to travelers by SNCF: 0805.90.36.35 for the Outline, TER, Téoz and Intercity, and 0805.70.08.05 for Transilien.

For traffic forecasts, two websites are available: www.sncf.com and www.infolignes.com for all traffic forecasts.

For the RATP, the number is 0800.15.11.11.

Inditex, one of the largest apparel retailers in the world is in the middle of a scandal in Latin America. The investigation by Brazilian authorities on two of its suppliers workshops clothing brand Zara in Sao Paulo showed 48 irregularities. Sixteen illegal workers from Bolivia and Peru were forced to work at 14 hours a day, said Wednesday a spokesman for the Labour Inspectorate of the State of Sao Paulo. They were paid between 274 and 460 Brazilian reals per month (120 and 200 euros), which is below the minimum wage of 545 reais (238 euros), as required by labor law in Brazil. Among the illegal working in the workshops, there was a girl of 14.

"This is the largest operation since the launch of the eradication of precarious working conditions in Sao Paolo," said in an interview with the NGO Reporter Brasil controller Guiliana Cassiano Orlandi. "The workshops were not inspected at all conform to standards. In addition to dirt, workers, working in rooms filled with tissue, increasing the risk of fire, "said a statement from the NGOs. The survey comes as Brasilia launched a crusade against slavery in the sectors of clothing, coal and industrial sugar cane.

According to the committee of inquiry, the illegal workers in two workshops sewed blouses for spring-summer collection of the brand Zara.These were bought to the owner of the workshop for 7 Real part (about 3 euros), while the same gowns, with labels "Made in Spain" were sold at 139 reais (61 euros) in the store mark west of Sao Paulo.

Suppliers stigmatized

The Ministry of Labour of Brazil said it had already imposed 52 fines on Zara "for various irregularities." Last May the Labour Inspectorate of the same Brazilian state has already discovered in the town of Americana, 130 km from the metropolis an illegal garment factory owned by another subcontractor to Zara. The government investigation, which focused on four garment factories last spring, showed that all the clothes in these workshops were made for the Spanish brand.

According Reporter Brasil investigation pointed the finger at one of the subcontractors of Zara, the company AHA, which would thus manufactured illegally for nearly 46,000 Spanish brand clothing guaranteed approval cash loans. This company would become the largest supplier of tissue of the Brazilian subsidiary of the Spanish group between July 2010 and May of this year. "At the same time, the company has significantly reduced the number of its employees. The number of employees hired legally would have come back from 100 to almost 20, "says the report of the investigation. As for the subsidiary of Zara in Brazil, she issued the authorization to affix the labels of its brand on these products only if "they were consistent with standards," without considering the conditions of manufacture.

Regulation "required"

In a statement, the Inditex Group requires that "the supplier responsible for the unauthorized subcontracting regulates the situation immediately," accusing him of "externalizing the information" which must remain secret in the name of the contract that binds him to Zara . Inditex has also clarified that the Brazilian Ministry of Labour is doing what is necessary to legalize the situation of illegal workers. Brazil has granted visas to some of them until they receive compensation, say some government sources.

Brazilian products represent just 1% of world production of Zara. Much of clothing is provided by Spain, where the company owns its own factories, and Portugal. According to the estimation of the group, by "illegal" production represents only 0.03% segment in Brazil."Brazil is the third largest American market after the United States and Mexico," says Spanish producer, which owned 30 stores in 2010 ennviron in the country. "We plan to open more stores in Brazil in the future."

This is not the first time, the Inditex group is accused of mistreating its employees in emerging countries. Earlier this year, one hundred workers of a textile factory in Cambodia have vanished because of difficult working conditions, exposure to chemicals and stifling heat in the premises. The plant manufactured garments for major global retailers, including H & M, Marks & Spencer and Inditex. According to the International Labor Organization, at least 12.3 million people are victims of forced labor in the world.

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 International Monetary Fund (IMF) has the alarm on the third world economy. Consequence of the earthquake on March 11, its economists expecting a decline of 0.7% of GDP for the whole of 2011. The Fund is particularly concerned for the country's debt, which will reach 219% of GDP at end 2011, and finds that the debt reduction must remain the priority of the government.

The latter, which has just passed a supplementary budget of 33 billion euros to finance the first necessities, wants to pass through Parliament a law authorizing it to issue bonds and launch a second budget by August.

But the Prime Minister, Naoto Kan, in power for a year, is increasingly challenged, including in his own camp. Opponents blocked the law and want to relinquish power as soon as possible. They propose to form a "grand coalition", a sort of unity government."Given the limited scope exists to reduce expenditure, fiscal consolidation should be based on a comprehensive tax reform, built around a progressive rise in consumption tax," the IMF analysis.

A solution that Naoto Kan has long dream. Set at 5% today, this fee could rise to 10% in 2015-2016, calculates the government. Yet it must be at least 15% for only "half way done," the IMF tranche.

The standoff between Lactalis and Leclerc continues. The retail giant refuses to pass on higher rates charged by the number one dairy. Result: Lactalis not book any more of its brands to stores Leclerc. The first cheese world requires a tariff increase of 11% to pass higher milk prices upstream, or the revisions granted by the distributor are nearly 4%.

Michel-Edouard Leclerc judge price increases requested by Lactalis "excessive," what Lactalis contends that the attitude of Leclerc is "unacceptable." The dialogue between the two groups seems a dead end. Especially as the CEO of Leclerc says the lack of Lactalis products ranging from milk to mozzarella Lactel Galbani, through brands of cheese and butter President, Bridel, Ruby or Company, does not affect the right walking group.The first sign of distribution in France also argues that Lactalis continues to provide a mark of distributors for nearly 250 million euros in business volume, says Les Echos.

The conflict with L'Oreal ended

But Lactalis is not alone in its struggle against the sign, the milk producers themselves have shown this Tuesday at the Paris headquarters of the distribution group to the call of the National Federation of Milk Producers (NPFL) high risk personal loans. In his blog, Eric de La Chesnais, note that the NPFL, the milk industry FNSEA, the main French farmers 'union, "has made contact with the various brands' distribution to explain" the importance of taking into account Higher prices for raw materials. " Producers have obtained, in principle, a meeting with the distributor. A date remains to be determined.

And for the same reasons, some products Ricard no longer appear in store shelves Leclerc, reports Les Echos. After a previous crisis in 2009, Leclerc refuses to pass the rate increases required by the group of wines and spirits. Only one-liter bottle of Ricard continues to be delivered because Ricard obtained for the product to appeal, an increase of 3% of the price.

Earlier this year, L'Oreal was also in conflict with the sign but an agreement was reached.

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On Wall Street, futures contracts on the index set are on the downside, the Dow Jones future lost 0.25% and the S & P 500 future bending of 0.33%. The opening of the session should be marked by a decline after the wrong numbers of job creation in the private sector in the U.S. in May, published yesterday by the firm ADP. These statistics had already weighed on the Dow Jones yesterday, which had thus ended down 0.34% to 12,248.55 points.

Among the statistics to follow this Friday, the unemployment rate in the United States in May is forecast at 8.9%, a slight drop of 0.10 point compared to the previous month. Moreover, employment in agriculture in May should show a marked decline from its April level.Economists expect about 125,000 to 150,000 jobs reported last month, against 244,000 in April.

The Fed does not intend to undertake new measures to boost the economy, according to Richard Fisher, one of its members. In an interview with the Wall Street Journal this morning, the president of the Dallas Federal Reserve believes that "the Fed has done its job" and that if necessary additional stimulus measures, "they must come from elsewhere" .

The U.S. Treasury will sell the 6% that still holds in Chrysler to Fiat. The Italian will thus hold a majority stake in U.S. manufacturer. And the state will pocket U.S. $ 560 million.

Short-term domestic concerns will not prevent operators to remain vigilant regarding the conditions for aid to Greece as part of a new plan, unveiled in principle this afternoon personal business card.

Wal-Mart, Walgreen's and VeriFone to follow

As for values ​​to be followed, one eye will be kept open on Wal-Mart, which holds its annual investor day.

The good results published yesterday by VeriFone Systems should provide a nice progression of the title. The figures exceeded the consensus.

Walgreen announced today, before opening on Wall Street, the level of its sales in May: they rose 7% to 6.08 billion, up 5.6% on a comparable basis.Remember that the title had been boosted on Wednesday by a recommendation by UBS improved, which initiated coverage on the purchase of the title, with a price target of $ 51.

Chevron announced late yesterday that four people died in the explosion of one of its refineries in Pembroke. A fifth victim was hospitalized in serious condition.

relaxation on raw materials

As for raw materials, the pressure falls. In this sector, investors await OPEC meeting next Wednesday, which could lead to a decision by the organization to increase its oil production. Despite the many demands and frequent recently, OPEC had refused to put the issue of increased production in its agenda, and has been for four years.The markets will also tend ear to New York, where the French agriculture minister, Bruno Le Maire, must comment on speculation in commodities, at 18 pm (Paris time).

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Lifting the Russian embargo on grain exports was widely expected by markets. "We will lift the ban on July 1, has announced on Saturday the prime minister, Vladimir Putin. The latter was originally scheduled to expire in late December 2010 but was extended amid fears of another poor harvest.

Earlier this year, the Russian Minister of Agriculture, Elena Skrynnik, and the first Russian deputy prime minister, Viktor Zubkov, had even cast doubt in the minds of investors by suggesting that the ban could be extended until 'at the end of September or early October. "Our main task is to perform efficiently and timely spring planting on 50 million hectares of cereals including at least 30 million hectares, which will give us a harvest of 85 million tons of grain, "explained Elena Skrynnik.The announcement of the lifting of the embargo implies therefore that these objectives will be achieved.

Soulagment waited on wheat prices

That embargo was imposed by the Russian government because of drought and an unprecedented heat wave during summer 2010, which caused a fall crop Russian approximately 60 million tonnes against 95 million tons originally planned. The embargo was intended to ensure supplies to domestic markets. "We must prevent inflation in domestic prices and also save the Russian stock" which might be destroyed in case of lack of food due to excessively high domestic prices for cereals, Vladimir Putin had said during the announcement of measurement.

But the inflation in wheat prices has taken place internationally since Russia is the third largest exporter of wheat.In August 2010, a ton more than the 230 euros on the Paris markets, while a bushel (25 kg) was trading at over $ 7.80, a level not seen since the food crisis of August 2008.

Since then, the tension on the wheat markets has not subsided. Higher prices even accelerated since May, a tonne is worth about 260 euros on the Paris markets and is worth 8.1975 dollars per bushel on U.S. markets. In one year, prices have soared from 96.76% to 77.77% in Paris and Chicago. The meteorological context remains very complicated. The United States, world's largest exporter, are facing a very wet spring in central and northern Iraq that delay planting. The very dry conditions in Europe, especially France, would result in lower production than expected, while in China, a drought affecting the historic center of the country.The return of the Russian market should alleviate investors.

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The Paris Bourse has hoisted the green flag on Wednesday, spurred by bargain hunting and foresight of a debt rescheduling Greek. At the close, the CAC 40 advances 0.92% at 3978 points. On Tuesday, the Paris stock exchange had closed sharply down by 1.21%. Only on the last four sessions, the Cac 40 lost nearly 3%.

Other major European stock markets followed the same trend: the Footsie-100 from the London Stock Exchange gained 1.07% to 5923.49 points and the DAX 30 Frankfurt Stock Exchange rose 0.65% to 7303.53 points .

Europe envisages a 'soft' restructuring of Greece

The option of a debt rescheduling Greek owned gaining ground in Europe. If Greece is making efforts, "we will see if it is possible to have a smooth restructuring of the Greek debt, said Tuesday the leader of the finance ministers of the eurozone, Jean-Claude Juncker.For Jurgen Stark, a member of the Board of Directors of the European Central Bank, a Greek debt restructuring would be a "recipe for disaster." Greece should "accelerate structural reforms" in particular to reduce the public sector, said his side on Wednesday the head of the IMF mission in Greece, Poul Thomsen.

In an interview with figaro.fr last September, the director of the Institute of High Finance, Philippe Dessertine, had said that if Greek debt rescheduling, "banks could again face a liquidity crisis . Therefore, they could no longer fund the financial markets.New tensions are therefore likely to appear on bank stocks. "

For now, investors seeking to reassure banks and bounce: Natixis gaining 0.93% to 3.80 euros, BNP Paribas takes 1.08% to 53.40 euros and Societe Generale advance of 0.41% to 41.92 euros.

On the macroeconomic front, the number of start-ups in April fell 18.3% to 42,984 compared to March, according to figures from INSEE.

United States, markets await the release of Fed minutes to 20 hours.

Oil bounces

On the foreign exchange market, the euro has stabilized at 1.4256 dollars at the close of trading in Europe, against 1.4234 dollars late Tuesday.

For their part, oil prices rose. On the New York Mercantile Exchange (Nymex), a barrel of light sweet crude for June delivery traded at 98.05 dollars, up $ 1.14 compared to the previous day.U.S. inventories of crude oil fell against all odds last week, said Wednesday the U.S. Agency for Energy Information (EIA). Crude inventories were down 15,000 barrels to 370.31 million. Economists on average had expected an increase of one million barrels. Gasoline inventories rose much less than expected, rising by 119,000 barrels to 205.94 million, against an estimate of an increase of 800,000.Total is 1.05% to 40.76 euros.

Telecoms weakened by the crisis of sovereign debt

Thales: +0.36% to 29.34 euros

On the occasion of the general meeting of the group, Lee CEO of Thales, Luc Vigneron, showed caution Wednesday to its shareholders as to the outcome of the discussions of asset exchanges in the defense with Saffron, who recently taken over a year after being interrupted for lack of agreement on their terms.

France Telecom: + 0.64% to 15.63 euros

France Telecom expects further consolidation operations or cooperation in selected markets in telecoms, driven by growing investment needs, "said Director of the French group's mobile activities.

In addition, Moody's has estimated that Telecom are very sensitive to macroeconomic conditions and notes some operators in European countries hit by the debt crisis (Greece, Spain, Portugal, Ireland) could be affected. Bouygues advance of 0.37% to 32.56 euros, Vivendi (SFR) is gaining 0.44% to 19.19 euros and Iliad (Free) is 1.54% to 86.97 euros

Unibail-Rodamco: 1.92% to 151.05 euros, the biggest increase CAC 40

Unibail-Rodamco has announced that the Chamber of Commerce of the Amsterdam Court of Appeal had ruled on the purchase price of 660,562 Rodamco Europe NV shares still held by minority shareholders. It has priced shares in Rodamco Europe 87.66 euros per share.Unibail-Rodamco will own 100% of Rodamco Europe following the decision.

Areva: + 3.27% to 30.16 euros

Areva and the Commissariat à l'Energie Atomique (CEA) announced the successful takeover offer simplified investment certificates (IC) cons of Areva shares. This will help convert the entire ordinary share capital. The listing of CI will be suspended from May 24

Peugeot: -0.22% to 29.75 euros

PSA Peugeot-Citroen on Wednesday the foundation stone laying of its third factory in China, according to La Tribune. Like the other two located in Wuhan, central China, the new plant should be able to start in 2013.Initially the plant will produce 150,000 vehicles and 300,000 from 2015.

Technip: 1.28% to 70.30 euros

Technip won a contract from BASF under the Partnership and engineering services for projects of chemistry and petrochemistry.

Atari: + 5.63% to 3 euros

Atari has announced its decision to sell Cryptic Studios, the development studio acquired videogames there is barely two and half years.

The Tanner: + 23.61% to 6.44 euros

Qatar Luxury Group has repurchased nearly 53% of the leather goods Tanner to 6.51 euros per share and will file a tender offer to purchase the rest at the same price in the days to come, said Tuesday the two entities.

After market, Soitec was to publish its annual results.