Democrats and Republicans are unable to agree on a plan to reduce U.S. debt, which has just reached 15,000 billion. The reasons and consequences of this blockage. The President of the United States Barack Obama
The debt crisis in Europe has almost been forgotten that the U.S. also face their great difficulties on their debt. European stock markets closed sharply lower on Thursday. Paris (-3.4%, below 2900 points), Frankfurt (-3.5%) and London (-2.6%) fell sharply in the wake of Wall Street lost more than 2% at the end of the afternoon. Democrats and Republicans should agree on a plan to save 1,200 billion over ten years to hold their huge debt. But after two months of negotiations, they were still far from an agreement a few hours from the end of negotiations scheduled for Monday evening.
Congress had in effect established a commission to decide on a plan to reduce debt. Composed of twelve members of Congress – six Republicans and six Democrats – the "super-committee" was intended to relieve an abysmal debt that comes to exceed 15,000 billion (you can see it evolve in real time on the www . usdebtclock.org). The six Democrats proposed a plan for 2900 includes 1,300 billion billion tax increase, the six Republicans on the other hand opted for a plan of 2,200 billion euros, with "only" 200 billion of tax increases. Without ever reaching a consensus.
Why the lock?
This blockage occurs less than a year of presidential elections scheduled for November 2012.
Heineken, the world's third largest brewer, reported Wednesday a surprise increase in the volume of beer sold and its sales in the third quarter, supported by the strength of African markets and a rebound in sales in Russia.
Revenues rose 0.6% to 4.65 billion euros against 4.51 billion euros expected on average by eight brokers polled by Reuters.
In August, the brewer warned that weak consumer confidence, combined with a sluggish summer, would affect earnings growth this year.He also maintained its forecast for net profit before exceptional items for 2011, saying it would be roughly consistent with the previous year.
In the third quarter, net income amounted to 525 million euros, an amount virtually unchanged from last year.
The title gained 1.24% to 0800 GMT, having reached in early trade a high of two months with an increase of 4.1%.
The payment of a new tranche of eight billion euros to Greece was approved Friday by the finance ministers of the euro area, which, however, have found their remaining differences on the reform of the support fund euro and put their decisions on this issue later.
Meeting in Brussels, they also discussed at length the contours of the new rescue plan for Greece and the participation of banks capable of reducing the Greek debt to sustainable levels.
A report prepared by the "troika" – IMF, ECB and European Commission – representing the international donors, a 50% discount on Greek bonds held by private investors is necessary to reduce the debt to 120% of GDP against 162% today.
If it was intended to reduce debt below 110%, a discount of 60% would be necessary, the report says, as a basis for decisions of Heads of State and Government of the euro area summits on Sunday and Wednesday.
The outcome of these meetings, which should lead to a new Greek plan, a formula to maximize the funds to support the euro area and a wide recapitalization of banks on the continent, is considered crucial for the single currency.
"We decided to authorize the payment of the next tranche of financial assistance to Greece in the context of the current program of economic adjustment.The disbursements must be made in the first half of November, once approved by the International Monetary Fund, "said the finance ministers of the euro area in a statement.
Athens immediately welcomed the European decision, saying it was "a positive step."
The decision "provides the fiscal targets in 2012 and paves the way for necessary structural reforms," said Greek finance minister, Evangelos Venizelos, in a statement.
CONTINUATION OF DISCUSSION ON EFSF
According to several sources, the Europeans, however, remain largely divided on the level of the discount to be applied to Greek bonds as well as the voluntary and non-bank participation.
The German authorities, in particular Finance Minister Wolfgang Schäuble, insist that the envelope of 50 billion euros negotiated on July 21 is significantly revised upwards, if necessary by forcing banks to make an extra effort.
Paris is reluctant for fear of triggering a credit event with unpredictable consequences.
The ministers, however, only discussed the various options available to "maximize" the firepower of the EFSF, which also divides Paris and Berlin.
The Minister of Economy, Baroin said that France continued to believe that the conversion of cash in bank was the best solution but it did not make "one final point of confrontation."
"What counts is what works.And what works is what will go towards deterrence and effective firewall and it is around this that we try to work, "said the Minister after the meeting.
Granted a banking license in EFSF would allow access to funding from the European Central Bank to increase its capacity for action by a factor of up to five.
But Berlin rejects this possibility, which would be to accept that the institution of Frankfurt finance the countries of the euro area, one of the dogmas explicitly excluded by the European treaties.
The other members of the euro area are also divided, Belgium and Spain having voted for a reconciliation BCE-EFSF while Slovakia and Austria have indicated that this solution was not studied.
The countdown has started, however, for not only the peaks of Sunday and Wednesday but above the summit of Heads of State and Government of the G20 in Cannes in early November.
Thursday night, U.S. President Barack Obama spoke on the economic situation in Europe with his French counterpart Nicolas Sarkozy, German Chancellor Angela Merkel and British Prime Minister David Cameron.
Belgium, France and Luxembourg have Monday morning launched the plan to dismantle the Franco-Belgian bank Dexia, the first European victim size of the debt crisis in the euro zone, after a day and a night of marathon negotiations.
At the end of a board of about noon, the directors of the former world number one funding of local authorities have approved the nationalization of Belgium Belgian activities of Dexia, Dexia Bank Belgium (DBB) specializing in retail banking.
Belgium will pay to do this four billion euros.
"This sale will be finalized shortly," advised the bank."It will enable Dexia to reduce its need for short-term financing of over 14 billion euros, will improve the solvency of the group of more than 200 basis points and reduce its portfolio of non-strategic assets of 18 billion euros. "
Matignon has in turn made in a statement that France would lean financing activities of French local authorities of Dexia Municipal Agency (DexMA), French securitization structure owned by Dexia Credit Local, the Caisse des Depots (CDC).
A consortium of funding for French local authorities will also be created and established by the CDC and the Postal Bank, also indicate the services of the French Prime Minister Francois Fillon.
As part of the new rescue plan for Dexia, already saved from bankruptcy in 2008 with a public bailout of more than six billion euros, Belgium, France and Luxembourg have signed to provide 90 billion euros government guarantees to ensure the financing needs of Dexia.
NOT FOREVER IN DBB
"States have agreed to divide this guarantee in proportions similar to those of 2008, 60.5% for Belgium, 36.5% for France and 3% for Luxembourg," reported Matignon.
Belgian Prime Minister Yves Leterme said at a news conference that Dexia would immediately pay a premium of 50 basis points in return for these guarantees.
The Belgian Finance Minister Didier Reynders said in that same press conference that the Belgian state, however, did not intend to stay forever in the capital of DBB.
Sunday morning before the meeting of a special board of Dexia, the French Prime Minister Francois Fillon met with his Belgian counterpart in Brussels and the Luxembourg Finance Minister, Luc Frieden, to find a agreement on modalities and participation of all three states.
"The three governments agreed to submit a proposal to the board that fits perfectly with the objectives of the Belgian Government, which involves taking control of Dexia Bank Belgium, secure and make it a bank very safe," he Yves Leterme said Sunday on Belgian television.?
The challenge for the three states participating in the plan was to ensure that aid does not come to Dexia worsen the situation of public finances.
The rating agency Moody's had also increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 kingdom under surveillance by explaining, among other things, will assess the costs and liabilities that the state could take Dexia in supporting.(See)
Didier Reynders has reported on this during the press conference that the debt / gross domestic product (GDP) of Belgium would remain below 100% despite the agreement of Dexia and said that the European authorities of the competition had been informed of the plan.
Dexia, the rating action has been suspended since Thursday, is at 9 am press conference to present the plan to dismantle the bank as it was approved by the directors.
Newly appointed head of the IMF, Christine Lagarde Nicolas Sarkozy will meet Saturday to prepare for the G20 summit in Cannes. Christine Lagarde REUTERS / Benoit Tessier (FRANCE – Tags: POLITICS)
Nicolas Sarkozy Saturday at noon will receive the Executive Director of the IMF Christine Lagarde to talk about it with "the preparation of the Cannes summit of the G20 and the situation in the euro area," the Elysee Palace said Friday.
The head of the French state will fly the next day to Berlin for talks with German Chancellor Angela Merkel poour attempt to speed up the rescue plan of the single currency.
Leaders from the eurozone continue intensive negotiations for a recapitalization of banks in the EU to address the risks of contagion from the debt crisis.
Germany has given the green light last week in the expansion of the European Financial Stability Fund (EFSF), which is waiting for the ratification of Slovakia.
Values to follow on Friday at the Paris Bourse.
* AXA. Offers for Axa Privaty Equity, private equity branch of the insurance group, must be filed by early next week, the Financial Times and The Tribune.
The Strategic Investment Fund (ISF) said Thursday he would not consider an acquisition of Axa Private Equity.
* DEXIA. Belgian finance ministers and French planned to meet Monday to discuss the future of Dexia, a bank in the center of intense negotiations on a possible restructuring, write Friday Les Echos. No one was immediately available at Bercy or the Belgian Ministry of Finance to comment on this article.
* SOCIETE GENERALE.UBS lowered its recommendation to buy from neutral and cut its price target to 21 euros against 35 euros.
* SOITEC sought to reassure the market on sales growth plates in the first half of 2011-2012, two days after a warning from Advanced Micro Devices, its main customer, on their own perspectives.
LyondellBasell group wants to close its refinery in Berre, in the Bouches-du-Rhone. If the project is completed, France will have lost three refineries in a year. The number of hexagonal site will be increased from 23 to 10 in the space of 40 years. Employees of the LyondellBasell refinery in Berre, in a social movement in 2010.
The carnage continues for oil refineries. Total after Dunkirk in 2010 and Petroplus to Reichstett (Bas-Rhin) in June, the American petrochemical company LyondellBasell announced Tuesday plans to close its refinery in Berre, in the Bouches-du-Rhone, which it considers unprofitable .
The site employs 370 employees in a petrochemical complex in 1270 employees will lose 120 million euros a year depending on the direction. But the group failed to sell it. No less than "85 entities around the world were approached during the sale process, to no avail.The refinery has in fact been no bid "has he explained. This ensures that only 370 jobs are directly affected refining risk. But unions argue that the loss of jobs could extend to the entire complex.
In response, nearly a thousand employees voted in a general meeting Tuesday the start of a "strike hard" for 48 hours. Wednesday, the entire petrochemical complex was shut down. Between 200 and 300 employees are present for locking, according to unions. The next general meeting is scheduled this Thursday at noon. Those decisions involved a year to the day after the start of great social movement that paralyzed almost all French refineries and caused a fuel shortage.
General meetings in nine out of ten sites
And the risk of a new scale strike is beginning to emerge.The movement of employees of LyondellBasell could spread, even if solidarity is shy at the moment. Employees of nine of the ten French refineries have held general meetings on Wednesday. And could lead to possible actions. But for now, only employees of the Total refinery at Donges, Loire-Atlantique, voted in favor of an immediate movement but symbolic: a decline in production to a minimum flow for 24 hours.
On the side of the Total refinery in Gonfreville l'Orcher, near Le Havre, general meetings were also held. But only a third of the participants voted in favor of a strike and the unions did not consider the results sufficient to initiate an action. A Fos-sur-Mer, in the ExxonMobil refinery, there was no general meeting.
The situation could change Friday.A meeting of employees of the four sites in the area of Berre be held and could lead to possible actions. If the strike is decided, it could spread to other refineries.
France lost 12 refineries in 40 years
The future seems to darken French refineries from year to year. There were 23 in the late 70's, there are no more than 11 still active today. And the closure of the Berre could add to this sad list. Refineries "are in excess production capacity, and do not have sufficient opportunities" because of "demand is very sluggish," said Jean-Louis Schilansky President of the French Union of Petroleum Industries (Ufip). It will even "operating loss of several hundred million euros" in 2011, a trend in "neighbor" of 2009, when they lost 1 billion euros, "he added.According to Les Echos, refining margins, which represent the difference between the price of refined products and their production costs, decreased by 60% between 2008 and 2009. And are now at a "crisis level".
French refineries were in effect in 2010, almost 82 million tonnes of petroleum products like gasoline, diesel or fuel oil. But demand remains well below capacity. Consumption in France in 2010 reached 33.6 million tonnes of diesel and 8.2 million tonnes of gasoline. "Since 2007, there was a drop in consumption in Europe related to energy conservation, and the phenomenon is exacerbated by economic crises," said Constancio Silva, an economist at the French Petroleum Institute-New Energies.
"The divestitures or closures inevitable"
He said the refiners were not able to adapt to changes in demand.They suffered from the rise of the French nuclear fleet. This has indeed led to a decline in demand for heavy fuel oil, which was used previously to operate power plants.
In addition, refiners have invested in the 70 and 80, in units of gasoline production, then the fuel most consumed in France. But they were surprised by the explosion in demand for diesel, accentuated by a favorable tax and lower consumption of diesel engines. The sale of diesel fuel currently represents 75% of fuel sales in France. Motorists consume 33 million tons, but French production capacity amounts to only 20 million. Refineries hexagonal therefore find themselves being forced to export 30% of its production of gasoline, including the United States where, again, demand has slowed.According to the Professional Committee of oil, gasoline sales abroad have in fact fallen by 20%. And Parellel, oil companies are forced to buy diesel fuel abroad, which increases their expenses.
In this context, "ultimately, disposals or closures will be inevitable," says the Ufip. Pessimism that refuses to admit the unions. In response to the closure of the Berre, CFDT and CGT federations in the industry, oil chemistry yelled "stop the slaughter." "This announcement is unacceptable. For it is not linked solely to the problems of weak refining margins and the inadequacy of the means of production with the market, the surplus of gasoline and diesel deficit" Have they denounced.
According to them, refinery closures meet market logic and a lack of investment.The FNIC-CGT calls "a multi-year investment" on the basis of the report of the French Institute of Petroleum, which presented June 22, through investment, featured tracks of development for French refineries.
An argument shared by Thomas Porcher, PhD in economics author of "A barrel of oil against 100 lies." He said the lack of investment to change the production structure of French refineries explains their lack of profitability. "Despite the record profits from the price effect of rising oil prices, these investments were ousted in favor of a preference for investments in refineries near the mining areas. This is the case Total in Saudi Arabia with the Jubail refinery example. It can produce low-cost, because of its proximity to the deposits.But it is especially with a modern production system to adapt the ratio diesel / petrol desired. The problem of refining French could no longer be similar "to a lay-sector" including the means of production have become unsuitable as a problem of competitiveness. While the first causes the second "he says.
Difficult decisions must be taken to avoid non-payment of debt interest and keep Greece in the euro area, said Sunday the Greek finance minister, Evangelos Venizelos, after a cabinet meeting.
"We must fully meet the fiscal targets for 2011 and 2012," he told reporters.
Government members have spent their device review on the eve of a conference call with the inspectors of the European Union and the International Monetary Fund (IMF) and will meet again then he said without disclosing further measures austerity.
Global stock markets have tumbled again Monday, frightened by the event of bankruptcy of Greece. Paris dropped more than 4%, ending at its lowest level since April 2009. French banks have lost more than 10% of their value. The trading floor in Frankfurt
Global stock markets tumbled again Monday, maddened by the assumption of more and more openly discussed a bankruptcy of Greece despite the soothing statements from European officials.
"The events taking place in Europe affect a growing market with a flurry of distressing information," noted Patrick O'Hare, Financial Analysis Site Briefing. "The markets anticipate scenarios very dark and do not want to remember that the darkest assumptions," added Yves Marc, Global Equities."We remain in a market in flux guided by fear," added Franklin Pichard, Director Barclays stock.
All European stock markets ended the day deep in red, Paris, Milan and Madrid, ending even the lowest for two and a half years. Briefly falling over 5% in early afternoon in Paris because of particular concerns for French banks, under threat of a deterioration in their rating by the rating agency Moody's.
European shares, which had already been a Black Friday, continued to plunge. In closing, Paris was unscrewed from 4.03% to 3.89% Milan, Madrid from 3.41%. Frankfurt yielded 2.27% and 1.63% in London. In Asia, Tokyo ended down 2.31% and 4.21% of Hong Kong.
Wall Street resisted in the middle of the session: to 16:00, the Dow Jones that yielded 0.75%.But the trend remained fragile and could accelerate the losses from one moment to another, stressed brokers.
The hypothesis of a failure of Greece, or even leaving the euro area, continues to gain ground and influence markets. "European officials are trying to take a more firm vis-à-vis Greece, in front of a ras-le-bol growing against the bailouts in Europe and North against austerity in the south "in the region, said Michael Hewson, an analyst at CMC Markets.
This weekend, the German Minister of Economy Philipp Rösler has not ruled out a bankruptcy ordered Greece to save the single currency before the department will remember come Monday that Athens had its place in the euro .
The Commission President José Manuel Barroso and German Chancellor Angela Merkel in turn tried to restore calm by ensuring, in a joint statement after a meeting in Berlin, the EFSF, in its strengthened would be operational by the end of the month.
The European Financial Stability Fund created last year, bringing relief to struggling countries, must in particular be allowed to buy government bonds on the secondary market. Athens, which is desperately trying to reassure its creditors, has pledged Sunday to take additional steps to save $ 2 billion in 2011.
The European Commission has welcomed the announcements and said that the donor countries meeting in a Troika-European Commission, European Central Bank and International Monetary Fund-would return to the country "in the coming days." The atmosphere had deteriorated markedly since the unexpected departure of the country of a Troika mission in early September.
Bank stocks, especially in France, have been particularly turbulent Monday, weighed down by their exposure to sovereign debt and fears about their solvency. BNP Paribas has unscrewed from 12.35%, 10.64% of Crédit Agricole and Societe Generale of 10.75%.
"Whatever the scenario Greek and supplies to go, French banks have the means to cope," he tried to reassure the French Minister of Economy and Finance, Baroin, reiterating a message delivered in the morning by the governor of the Banque de France Christian Noyer.
"We are ready to provide liquidity to banks requested" to "unlimited" and "fixed" for the euro area, for his part reiterated the governor of the European Central Bank (ECB) Jean-Claude Trichet, in his as a spokesman for the group of major central banks.
The week promises to be crucial. Wednesday, an emergency meeting of the IMF to be held on Greece and the finance ministers of the euro area and European Union will meet Friday and Saturday in Poland to try to complete the second level of support Greece nearly 160 billion euros, promised the country July 21.
However, the markets seem to doubt the capacity of policy to agree and thus to regain control the crisis, especially after the G7 meeting on Friday and Saturday, which has resulted in "no action" according to an analyst.
Finance ministers and central bank governors of the seven richest countries in the world (G7) have simply promised Friday to Marseille to respond "strong" and "coordinated" to the crisis but without specifying their strategy.
Considered a value at risk in this context, the euro was heavily abused: Monday he touched its lowest level since mid-February against the dollar and 10 years against the yen.
On the debt market, the rates of German and U.S. bonds, safe havens, were at their historic low.Conversely, interest rates have soared Monday in a securities issuance of public debt in Italy.
Toyota announced Friday the hiring of 800 employees on fixed-term contract on its site Onnaing (North) from January to respond to the success of the Yaris III, who is built.
The announcement was made at the plant Onnaing by Makoto Sano, president of Toyota Motor Manufacturing France (TMMF).
Toyota will put in place from January 3rd a third shift of production to meet the specifications of orders for the Yaris III, stronger than expected in Italy and the countries of northern Europe.
Toyota will hire 800 employees with contracts of 18 months. Once recruitment is complete, the size of the Toyota plant to reach Onnaing 4300 employees, a record since it opened in 2001. Toyota Onnaing site is dedicated to the production of the Yaris.
