Business And Personal Finance

Greek banks erase their losses Thursday morning as investors bet on a drop of the referendum on the bailout of the country in case of fall of the government.

Banks, who lost up to 5% at the opening, gaining nearly 2% to 10:20.

"Given the developments of the last hours, the possibility of a referendum was removed and the top priority is now the sixth tranche disbursement of aid and approval" of the rescue plan EU says Natasha Roumantzi, an analyst at Piraeus Securities.

George Papandreou Thursday called an emergency meeting of his cabinet at 11:00. The head of government is under fire from critics since he announced Monday night to hold a referendum.

The activity in the private sector in France shrank in October for the first time since mid-2009, according to first estimates released Monday by Markit PMI, which indicate a risk of recession.

The PMI "flash" composite fell to 46.8 from 50.2 in September, falling below 50 which separates growth and contraction and reaching its lowest level in 29 months.

The services index goes well below this bar to 46.0 from 51.5 in September, reaching its lowest level in 27 months.

The PMI industry has, however, rose slightly to 49.0 from 48.2 in September, the activity still continues to contract.

Economists polled by Reuters on average expected the services index and an index to 50.5 from 48.0 in the industry.

"The economy went into decline early in the fourth quarter," said Jack Kennedy, economist at Markit. "Clearly, the impact of the European crisis on the real economy hits hard, demand and confidence were affected."

"At these levels, the PMI figures imply a quarterly contraction of around 0.5-0.6% sensitive," he says. "A recession may be coming unless we see a quick turnaround," said he.

Flash PMIs are calculated on the basis of about 85% of the responses of the sample followed by Markit, composed of 750 companies in services and manufacturing.

The budget deficit widened further in Greece in September due to a recession driven by austerity measures, in spite of new tax measures that were supposed to increase revenue.

The budget deficit increased by 15% annually, to 19.16 billion euros over the period from January to September, show statistics from the Ministry of Finance released Wednesday.

In September, Athens increased VAT on catering to 23% and began collecting a special tax of 1% to 5% on gross revenues.

However, tax revenues fell by 4.2% over the nine months January to September, after falling 5.3% over a period of eight months.

Shaken by a drop in subscriptions, the magazine of the National Institute of consumption could increase in the private sector, the risk that its credibility challenged.

While its competitor, the UFC-Que Choisir a hit, the magazine "60 million consumers" has seen its sales plummet by 22% between 2008 and 2011, according to an audit of the accounting firm of MBV & Associates, commissioned by the National Consumer Institute (INC), owner of the title. The erosion is partly due to the termination of a policy of recruiting new subscribers in recent years. Now, to return to profitability, the magazine should flow to 200,000 copies, twice today.result, the UFC-Que Choisir has 420,000 subscribers to 30 million euros in revenue and 60 million consumers of only 100,000 subscribers to 10 million euros.

For MVB & Associates, a status quo would lead to accumulated losses of € 4 million over the next three years, involving the continuity of the title. Conclusion of the firm: the magazine must be backed by the private sector, the only way to inject € 18.5 million for its re-floated. For now, while the parliament is considering a draft law on consumer rights, no decision has been taken and two scenarios are being studied in INC.

Two scenarios under consideration

"Either we are content to mobilize internal resources at the institute who are not fertile and we made a small raise of the subscription.However this can not go very far, "said Francis Amand, president of the board." Either we have a more ambitious recovery and growth capacity, requiring more funding that could come only from a private operator, "he added. A decision could be taken at a board of directors of the INC on 9 November.

The scenario of backing caused an outcry among staff and among some readers, who fear for the independence of the magazine. "Regulators want to get rid of the newspaper." 60 million "can not keep its identity and mission of public service outside of the INC," said Lionel Maugain, staff representative on the board. A support committee was set up by readers and journalists to oppose any backing to the private sector.Thursday, nearly 7,000 people had signed.

"It is difficult to an investor put money in a way that could not provide a lot of sales because the potential reader would think that this title is biased," assured Francis Amand. A charter could also be signed to ensure editorial independence, he said.

"60 million" was founded in 1970 by the INC, who realized that TV shows were not enough to inform the consumer. nitially released under the name "50 million consumers," the magazine is primarily known for its main comparative tests on the appliances. Then he is getting stronger with campaigns that make loud noise on the soaring prices and declining purchasing power, or on the Harms dyes, abuse of trustees and breathalyzers unreliable.A score of journalists working for the magazine, working closely with engineers, lawyers and economists INC.

Liberal Institute Coe-Rexecode proposes to merge the debts of countries rated "AAA" in the euro area, to eliminate differences in rates between the German and French bonds. This solution would also double the capacity of loans to countries facing difficulties.

To stem the crisis in the euro area, the French Institute of Economic Studies Coe-Rexecode Monday advocated the creation of "eurobunds" which would involve the merger of the debts of many countries "comparable" in the area, which France and Germany. Considering the creation of unrealistic eurobonds, often mentioned in recent months, the institute, near the business, suggests the creation of "eurobunds" with "merger for the debts of seven comparable countries in the euro area as are Germany, France, the Netherlands, Belgium, Austria, Finland and Luxembourg. "

The merger could lead to a large pool of securities, nearly 5,000 billion, a priori rated AAA by rating agencies, is the highest rating possible, pleaded Michel Didier, president of Coe-Rexecode, during a press conference. It would have the advantage of eliminating the spreads between the German and French bonds, he said. Moreover, such a "fire power" would "have a strong base of potential loans to the peripheral countries" beyond the potential 500 billion of loans from the European financial stability. Which, according to Coe-Rexecode, is likely to cut short the threat of contagion from the debt crisis.

Subsequently, "there would still address the problem of divergences in competitiveness" within the euro area, insisted Michel Didier.Considering the current stock market crisis "clearly European," the institute said that the problems of public funding can be resolved, thanks in part to the European plan adopted July 21, which is "appropriate". But "other scenarios are much worse now possible," he warns. "A sovereign default would lead to poorly controlled behavior very restrictive economic actors (reports of investment projects, increase household savings rate …) and lead to a true European recession," said the institute.

Sealed by the debt crisis, the decline of financial markets and fears of a global slowdown in activity, the business climate and consumer confidence in France is severely degraded in September, which bodes ill for the changes in investment and consumption.

The INSEE surveys confirm a trend which had already been drafted Thursday early results of monthly surveys of Markit PMI and reinforce the scenario of low growth at best in the second half after the stagnation of spring.

The general index of business climate in France was down eight points to 97 and falls below its historical average of 100.

"The economic climate deteriorates in all sectors except the building," INSEE said in a statement.

In manufacturing, the sector's most closely watched, the decline in the index is six points, to 99, its level of August 2010. The indicator for services for its fall eight points to 95.

Consequence of this strong and widespread decline, the turning point indicator, a barometer of changing trends in the economy, "rocking significantly negative zone," said the National Institute of Statistics.

"It is in three consecutive months of strong decline, it falls below the long-term averages," said Frédérique Cerisier, economist at BNP Paribas."The problem is that when it drops to this speed, we do not know when it will stop!"

The preliminary results of PMI surveys have also revealed Thursday a sharp deterioration in business prospects for the coming months.

And the situation is no better on the consumer side: 80 September, the index of consumer confidence calculated by INSEE fell to its lowest level since February 2009. The details of the survey results including access to pessimism about the standard of living and employment.

"SLOW", "stagnation" or "RECESSION"?

Fell in May in its long-term average, the indicator measuring the decision of households on the evolution of unemployment and relapsed to the level of June 2010.A change of course is not conducive to consumption: the balance of opinion on whether to make major purchases and erase its gains in July and is close to its lowest annual.

Enough to feed the scenario of low growth in the third quarter or fourth.

If the Bank of France is waiting for the moment at least nominal growth of 0.1% of GDP for July-September, economists suggest an even darker scenario.

"It is deteriorating very quickly and give a priori that a year-end close to stagnation," summarizes Frédérique Cerisier, at BNP Paribas."Right now, there is no engine of growth."

Joost Beaumont, ABN Amro, is more pessimistic still "in the end, he says, these surveys show that the economy is now flirting with recession, the euro area as a whole, and they underline once again the need for policymakers to take bold steps to contain the crisis. "

A link between political and economic situation has also highlighted Friday Laurence Parisot, the president of MEDEF.

"We are on the verge of a slowdown if there is no political decisions – at the European level and perhaps even across the G20 – clear, which give direction to economic actors that they are businesses or households, "she said on RMC."Of Staggering Blow Staggering Blow in, we can no longer move, you end up doubting, all collectively."

The Strategic Investment Fund (ISF) announced Tuesday it had invested 4.1 billion euros in French companies since its launch in 2008.

These sums have been invested in the form of direct interests in companies to the tune of 2.8 billion euros and 1.3 billion through sector funds like the Fund to modernize the automotive (FMEA) for the sector or InnoBio Biotech.

These investments correspond to a cruising speed of 1.7 billion euros a year, yet indicated the ISP.

With 20 billion euros in capital, the sovereign fund "French" was launched in late 2008 crisis to invest capital in companies deemed strategic and promising growth.

It is 51% owned by Caisse des Depots and 49% by the French State. If the two shareholders have yet to bring him 3 billion euros in cash, an amount of 1.5 billion euros has been allocated as a long-term loan from the savings fund, which manages funds A. Booklet

In particular, the ISP back to the capital of French companies such as STMicroelectronics, Vallourec, Soitec and Gemalto.

So said Sunday the governor of New Jersey. Another evaluation reported losses of about $ 7 billion. Flooding after Hurricane Irene in Trenton, New Jersey, August 28, 2011.

The damage caused by Hurricane Irene could reach tens of billions of dollars, said Sunday on television the governor of New Jersey, Chris Christie. "The damage will amount to billions of dollars or even tens of billions of dollars," said on NBC the governor of New Jersey, whose state was hit particularly hard by Hurricane Irene, which in Sunday morning was downgraded to a tropical storm.

Another estimate, experts from Kinetic Analysis, a firm that develops computer models of the damage caused by weather, damage caused by Irene could cost 5 to 10 billion dollars, most likely around 7 billion. An official of the firm Kinetic Analysis, Chuck Watson, said further that the North Carolina and South Carolina, two states that were the first to be affected by the hurricane, could expect losses of up 200 to 400 million.

Losses should weigh more heavily than usual on governments, businesses and citizens, he said. "It does not appear that there is a lot of direct damage related to the wind other than fallen trees," said he."Most of the structural damage will be caused by the rising water because of rain and coastal flooding, which is not covered by private insurance," he adds.

In addition, many companies provide that the insured cover a higher amount of damage in the past. Finally, much of the costs associated with Irene, downgraded to a tropical storm Sunday, will be due to the cessation of operations and evacuations, in the absence of damage, not covered. This will, inter alia on the tourism sector, which may not normally enjoy the weekend, extended by one day Labour Day.

Hurricane Katrina, which devastated New Orleans in 2005 caused losses estimated at more than $ 100 billion. The heart of the depression has reached New York on Sunday morning, where it caused heavy rains and flooding.

Unlike his opponents in the primary Socialist Segolene Royal offers the restaurant industry to maintain the 5.5% VAT, provided to hire young people. Segolene Royal, Socialist candidate for the primary (here at a press conference in Paris June 29, 2011).

Segolene Royal, Socialist candidate for the primary, offers the restaurant industry to maintain the 5.5% VAT provided that the companies agree to take young people learning or alternately, says in a statement Friday.

The Presidentti of the Poitou-Charentes "is ready to maintain the 5.5% VAT provided that the companies are committed in the Charter for Youth Employment: taking learning or alternatively at least one young per than five employees, "said she at once in this release and in an interview Friday at Nice Matin.

"The results of this action giving / giving will be made after one year if the contract is not respected, VAT will be returned to its normal level," she warns. "Knowing that there are nearly one million employees in the hospitality industry and restaurant (…) this will allow the hiring of 200,000 young people in learning or alternately," said Segolene Royal. This measure is part of its "priority to boost economic activity," she said.

The CEO of Publicis, Maurice Lévy, the French hope that the richest pay an outstanding contribution to participate in the national effort to reduce the deficit. The CEO of the advertising group Publicis, Maurice, in December 2010.

The President of the French Association of Private Enterprises (Afep), Maurice Levy, said he favored a "outstanding contribution" of the highest incomes to reduce the budget deficit of France, in an article in Le Monde newspaper published Tuesday. Calling for an "outstanding contribution of the richest, most privileged, the wealthy," the CEO of Publicis, considers "essential for the solidarity effort begins with those whom fate has preserved."This recommendation echoes that of billionaire investor Warren Buffett, who on Monday called on U.S. lawmakers to raise taxes for the wealthy to reduce the huge budget deficit of the United States.

In its platform, Maurice Levy says will include "all those who can by their means necessary to participate in this national effort" and not just CEOs. The government intends to introduce a windfall tax from 1% to 2% on income tax reference than one million euros. The device will be stopped by the end of September.

To achieve the reduction of public deficit, the president of the Afep also stresses that it is necessary "to cut as much spending as planing or remove tax loopholes."Other measures that advance figure "a deep reform of our administrative structures and social systems", without further details. "This is to bring the deficit to zero and to reduce the tax burden to bring them to the European average," he adds.

About the golden rule of balancing the budget, he "regrets" that it "is not universally supported by all political" because "it is in the future of our country." This "golden rule" is planning to include in the Constitution the principle of "framework laws to balance public finances," who plan on at least three fiscal efforts that France must provide to restate its accounts.This constitutional reform remains to be adopted by a majority of three fifths by the deputies and senators met in Congress at Versailles, while the opposition, denouncing a communication operation of the government, refused to vote.