Suzuki Motor reported Monday a 6.2% increase in quarterly operating profit despite the impact on its sales of social movements in India, the first Japanese car market, which has maintained its forecast for the entire the 2011-2012 fiscal year.
The group's operating income for the period July-September second quarter of this year stood at 39.2 billion yen (365 million euros), while analysts had on average expected 25.6 billion yen.
Net income for Suzuki, owned 19.9% by Volkswagen as part of a partnership that turned sour, fell 13% to 13.3 billion yen while revenue declined by 6 , 6% to 618.8 billion.
Unemployment in Spain jumped to 21.5% in the third quarter, against 20.9% for the period April to June, show figures released Friday by the National Institute of Statistics.
Economists polled by Reuters had expected that the unemployment rate in the fourth largest economy in the euro area, the highest in the European Union, remains unchanged from the second quarter.
The rating agency Moody's scratched on the first "triple A" French, by giving three months to assess its stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks.
A nearly six months of the presidential election, the French authorities have once again assured Tuesday that they would do anything to keep the maximum score, which allows the country to finance at low cost, and promised new measures if needed.
But their room for maneuver seems limited because growth such as trust are affected globally in a context of anxiety in financial markets.
Bank stocks have fallen to the Paris Stock Exchange after the announcement of Moody's, while the yield on the French debt and insurance against the risk of default (CDS) rose, the yield spread between French and German debt (spread ) reaching a high for 16 years.
Moody's does not mention specifically the possibility of a perspective "negative" on the Aaa French, but if it were to lower the perspective, a downgrade could occur over the next two years.
"The 'triple A' is not in danger because we will answer these and we will be even ahead of the goals of deficit reduction," said French Finance Minister, Baroin, on France 2."If necessary, we will take steps for the appointment."
"We will make every effort not to be degraded," he added, noting that "we still have enough tax loopholes, if necessary, we will remove them."
GROWTH flu
The rating agency said in a statement: "In the next three months, Moody's will review and assess the stable outlook against the government's progress in the implementation of these measures (fiscal consolidation-Ed), taking into account all economic and market potential negative. "
Moody's also refers to the likely increase in the French contribution to the rescue of Greece and the prospect of a recapitalization of banks in the country, to which the State may need to participate.
"The deterioration in the debt figures and the possible emergence of new financial commitments put pressure on the stable outlook of the Aaa rating of the state" French, says the agency.
Engine of French public deficit, the country's growth next year should be much lower than the 1.75% forecast by the government, which may influence the path that should lead France to a deficit of 4 , 5% of GDP in 2012 and 3% in 2013, after 5.7% this year.
According to the survey conducted by Reuters with a score of economists, and they expect an average growth of 1.0% next year.
Baroin has for the first time said Tuesday that the objective of 1.75% was "probably too high."
Economists polled by Reuters Tuesday, believe that the economic downturn is the first threat to France and its sovereign rating, a threat reinforced by the possibility of further government intervention to resolve the crisis in the eurozone and strengthen the banks.
"The Triple A French is a little on the hot seat, especially if the French economy was facing a shock much deeper than what we anticipated," said Jean-Christophe Caffet, an economist at Natixis.
For Gilles Moec, an economist at Deutsche Bank, "the issue of growth is most important because it constitutes the core of the macroeconomic strategy of France.""The engine stalled, forcing more likely to act on the structural deficit."
Philippe Waechter, director of economic research at Natixis Asset Management, for its part said that "if growth is not expected robustness, the objective of reducing the budget deficit will not."
Jean-Louis Mourier, economist at Aurel Leven, said meanwhile that "bank recapitalization would impact the debt but the real problem is the trajectory of public finances and therefore growth."
PUZZLE AND EUROPEAN PRESIDENTIAL
Moody's notes that the level of debt of France is among the highest Aaa rated countries, while remaining content with a relatively low weight of the interests of debt to government revenue.
But the ability to fund high levels of debt "is based on investor confidence in the government's ability and willingness to cope with unexpected challenges," the agency said.
A situation even more critical that the chronic current account of France requires it to obtain financing from foreign investors.
François Fillon on Tuesday urged members to refrain from bidding on the draft budget for 2012, including the examination begins on Tuesday, with specific reference to the warning from Moody's.
"In this context, the budget debate must be exemplary," said the head of government before the UMP group, reported a number of members present at the meeting.
A weakening of the "triple A" French further complicate the resolution of the crisis in the eurozone, France, with Germany being the main contributor to the European Financial Stability Fund (EFSF), the European support fund, whose rating depends part of those of its contributors.
Beyond the EFSF, the European dynamic could be profoundly affected if the second largest economy in the euro area clinched the best student, Germany.
The threat of a possible negative watch placement of Aaa, should also limit a little more room for maneuver of the candidates in the presidential election of April-May
The Socialist candidate Francois Hollande and his family have announced that their action, if they win the presidency, will be dictated by the need to preserve the confidence of creditors of France.
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.
Starts of new homes in France in late August were up 17.4% year on year to 389,449 units, but only 7.4% over the last three months, to 83,153, show statistics released Tuesday by the Ministry of Ecology, Sustainable Development, Transportation and Housing.
The number of building permits issued for housing shows a parallel increase of 10.5% over the last 12 months to 490,620 and an increase of 10.6% over June to August, to 133,169.
"Over the past twelve months, new construction, representing over 87% of homes, rose 9.8% over the previous twelve months," the ministry said in a statement.
In the non-residential housing starts were up 7.3% over the past year to 25.35 million square meters, and 26.2% for the three months to 6.18 million m2.
Building permits granted for industrial or commercial premises are up 7.2% over the last 12 months to 36.22 million m2, and 2.8% over three months to 8.95 million m2.
Exxon and Rosneft have signed an agreement Tuesday to exploit reserves of oil and gas in the Russian Arctic.
The agreement, signed in the presence of Russian Prime Minister Vladimir Putin, includes assets that BP expected use and thus reduces to nothing the hopes of British oil to boost its own agreement with Rosneft, which was blocked in May by its partners in a Russian joint venture.
Exxon and Rosneft will invest $ 3.2 billion in the development of Prinovozemelski blocks is 1, 2 and 3, located in the Kara Sea and the Black Sea Tuapse block.
Rosneft will be offered in exchange for participation in various exploration projects Exxon in North America and elsewhere.
The French government on Wednesday announced 12 billion euros in savings and additional revenue for 2011 and 2012 to reflect its goal of reducing the public deficit despite slower economic growth.
Prime Minister Francois Fillon has announced the lowering of government growth forecasts to 1.75% for 2011 and 2012, instead of 2% and 2.25%, forecasts that had become higher than many economists.
"The realism leads us to adjust the growth assumptions," he said at a news conference. "For 2012, caution is even more essential."
The new measures are required to report one billion euros in 2011 and 11 billion in 2012.Cancellation credit of 500 million euros in 2011 was also announced to offset extraordinary expenses already incurred.
The Prime Minister has hardened the public deficit target for the end of 2012 to 4.5% of GDP instead of 4.6% previously and confirmed the deficit of 5.7% in 2011.France has pledged to then reduce the deficit to 3% in 2013 and 2% in 2014.
Among the measures announced, a contribution "exceptional" 3% on higher income (income tax of 500,000 euros and up), which will be in effect until the deficit is reduced to 3% of gross domestic product, or end of 2013 according to the French commitments.
Its product is estimated at 200 million euros in 2012.
François Fillon announced a new step to reduce tax loopholes in 2012, higher taxes on tobacco, alcohol and sodas and the inclusion of overtime in the calculation of general relief of charges.
For the year 2011, limiting the deferral of losses on their corporate tax must report 500 million euros and a 1.2% increase in payroll taxes on capital income 200 million.
Removing a reduction Exemption real estate gains must report 200 million this year and the removal of a tax exemption on insurance agreements 100 million euros.
The 6% increase in tobacco prices should bring it 100 million this year.
The cost for a sixth grader is 187 euros, or 7% from a year ago, according Familels France. School children on the day of the new school year Sept. 2, 2010, in Vincennes
The cost of school for a student entering the sixth this year is 187.32 euros, up 6.8% over 2010, far more than inflation, according to the traditional investigation of the association Families de France (FDF) released Wednesday. "It's not good news for families," he told a press conference the President of TOT, Henri Joyeux.
Last year, the increase was only 0.63%, after two sharp declines in 2008 and 2009. This moderation was partly due, according to Families of France, the "core of the season."This offering school supplies at affordable prices was renewed this year between FDF and the retail stores, but this time without the support of the Ministry of Education. Minister Luc Chatel regretted the end of May that the discussions had "failed to reach consensus (…), in a context of rising prices of raw materials used in papermaking."
The FDF survey is carried out for 27 years. Another association, the Confederation of Families (CSF), also supplies its own annual estimate of the cost of school. It will do this year on Aug. 30, according to its deputy general secretary, Brigitte Masure.
The giant U.S. food Kraft Foods announced Thursday it plans to split into two separate companies, while posting better than expected results and raising its forecast for 2011.
Eighteen months after buying the British chocolate maker Cadbury controversial, Kraft plans to split its North American grocery through a split tax-free by the end of 2012.
Kraft now considers that its activities and snacks division North American grocery now have strategic priorities, patterns of growth and operating objectives that differ.
Investors can therefore choose between the strong growth prospects of the market for snacks in emerging economies, or build on the security offered by the grocery business.
The draft terms of division received two support weight, those investors Pelte Nelson and Warren Buffet, the latter being the largest shareholder of Kraft.
The group issued a profit along better than expected at 62 cents per share, a Thomson Reuters consensus I / B / E / S to 58 cents a share, with net sales up 13.3% to 13.9 billion.
The group raised its forecast for annual EPS at least $ 2.25 and organic growth of its turnover to at least 5%.He was formerly an annual EPS of at least $ 2.20 and organic growth of at least 4%.
All these ads allowed under Kraft jump of almost 3% at the New York Stock Exchange in the morning.
