Business And Personal Finance

The French engineering group Egis was selected Monday to modernize one of the main Brazilian airports, as part of concessions for a total of 24.5 billion reais (10, 9 billion euros) granted for the 2014 World Cup and 2016 Olympics.

Conversely, the candidacy of another French group in the running, Aéroports de Paris (ADP), has not been selected, said a spokesman for ADP. ADP filed a joint bid with Schipol Airport (Amsterdam) and two Brazilian partners, she said.

Contracts, for which 11 consortia have submitted bids well above the floor set by the government, focused on the expansion and terminal management at two airports in Sao Paulo and one in Brasilia.

While Brazil is organizing two major sporting events, this upgrade should improve infrastructure and uncomfortable sources of delays.

The concessions were awarded in each case of large Brazilian companies allied to the international airport groups. 

Egis Airport Operation, a subsidiary of Egis which is 75% owned by the Deposit and Consignment Office, joined forces with the Brazilian group Triunfo Participaçoes to be awarded the expansion of the airport of Viracopos-Campinas, near Sao Paulo. The consortium will pay 3.8 billion reais (1.7 billion euros) for this contract.

For their part, Brazilian groups Invepar and OAS, in partnership with the South African ACSA, won to 16.2 billion reais (7.2 billion euros) for the concession ; modernize the airport of Guarulhos, in Sao Paulo, the most active and most lucrative of the three sites.

The French parliament on Tuesday approved the draft supplementary budget that allows the state to provide guarantees to the restructuring of the Franco-Belgian bank Dexia to facilitate its dismantling.

After the deputies, senators adopted the text finalized last week by a joint committee (WPC) Assembly-Senate.

All groups voted the outcome of the CMP with the exception, both the Assembly and the Senate, communists and the like.

The text of the CMP includes part of the version passed by the Senate, where the left is now the majority.It thus imposes counterparties to support banks.

Credit institutions supported public will not pay bonuses or stock options to their executives and dividends only in securities and not cash to shareholders, these restrictions on 1 January 2012.

The decommissioning plan provides that Dexia France, Belgium and Luxembourg will provide 90 billion euros in guarantees for its financing needs with 60.5% for Belgium, 36.5% for France and 3% for Luxembourg.

During the first reading in the Assembly all voted against the left.The same text, as amended by the Senate Finance Committee where the left is now the majority, was then voted almost unanimously by the upper house.

The chairman of the PS Assembly, Jean-Marc Ayrault, asked Tuesday the creation of a parliamentary commission of inquiry on "the adventures of Dexia and its leaders."

Countries of the European Union agreed Thursday to recapitalize their banks to the tune of 100 billion euros but profound differences between Paris and Berlin on how to reform the fund to support the euro area led again postpone the most important decisions.

At the request of Paris and Berlin, an additional peak in the euro area will be held next Wednesday to not only agree on how to maximize the firepower of the European Financial Stability Fund (EFSF), one of the expected by the market to combat the crisis, but also review the new plan to rescue Greece.

Another failure could undermine investor confidence definitely in the ability of Europeans to put an end to the debt crisis and put them in a particularly uncomfortable position for the G20 summit in Cannes in early November.

The bloc, however, managed to make progress on the bank part of the "global response" they hoped to present Sunday.

Several European sources and banking, they have agreed to inject including 100 billion euros in banks on the continent to strengthen their capital, a move that was expected to take into account the depreciation of the sovereign debt of countries in the euro area.

"The figure was discussed with Member States.It is now acceptable to all, "said a source familiar with the discussions.

The banks will first have to use their internal reserves or market and then to national funds.Once these possibilities exhausted, it will use the funds from the EFSF.

EFSF, GREECE

Faced with the difficulties to agree on the reform of the EFSF and the contours of the new rescue plan for Greece, Paris and Berlin have agreed to this additional meeting of Heads of State and Government of the single currency, in Brussels.

President Nicolas Sarkozy and Chancellor Angela Merkel also announced in a joint statement they would meet on Saturday night in Brussels to discuss the various topics of these meetings.

Regarding the EFSF, Paris insists that the fund receive a banking license, allowing it to access funding from the European Central Bank and increase its capacity for action by a factor of up to five.

Berlin refuses, however, this possibility and is working on an alternative of allowing the EFSF to pay interest on the debt of countries receiving international aid program.

The latter mechanism is far from unanimous among the countries of the euro.

According to several sources, Paris and Berlin are unable either to agree on the amount of the participation of banks in new bailout of Greece.

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.

"(Wolfgang) Schäuble is pushing the most for the discount (on securities Greek) goes at least 50% or more," said one source.

According to these sources, the idea made its way to several Member States not to be limited to the voluntary participation of banks, but to force them to a more ambitious plan for Greece.

"Seriously, everyone knows that when you request a discount of 50%, as does Germany, it is not a voluntary decision," insisted one of them.

Another source said that the countries now working on scenarios "aggressive" in reducing the Greek debt.

MARKETS Skeptics

If they divide the Europeans, these scenarios are needed to satisfy the International Monetary Fund, which is concerned about the ability of Greece to manage its debt and is awaiting the results of the summit on Sunday to release the next tranche of aid in Athens, according to three sources.

The position of the IMF, however, should not jeopardize the payment of 8 million euros in Athens in mid-November, otherwise Greece would fail and could result in his fall Spain and Italy, causing a shock of the impact difficult to measure for the European banking sector.

Greece was plunged into recession and debt should continue to rise to 357 billion euros this year, about 162% of GDP, an amount that most economists believe is impossible to fulfill.

As protests continued in Athens, markets greeted coldly this cacophony European hoped after a time earlier this week a prompt resolution of the crisis.

The euro initially fell on rumors of postponement of the summit, he then bounced back when they were denied.

Analysts are also skeptical themselves.

"I do not think they can meet expectations. The results of the summit will be very much less than the big bang that markets needed to be reassured," said Simon Tilford, chief economist at the Centre for European Reform in London.

BSkyB reported Wednesday a net increase in quarterly profit, sales of additional products to existing customers offsetting the expected decline in new subscriptions.

The FTD British satellite television was the target of a takeover by News Corp., its largest shareholder, until the abortion offensive in July, following the eavesdropping scandal News of the World.

Operating income adjusted for the fiscal first quarter came out better than expected, up from 16% to 295 million pounds (336 million).

Turnover increased by 9% to 1.66 billion pounds, suggesting that the new strategy group, which consists primarily of selling new products to existing customers, seems to be working.

"In difficult market conditions, our movement towards a more broadly based growth and product variety makes us good service," said CEO Jeremy Darroch said in a statement.

The market expected a slowdown in new subscriptions, rising unemployment and inflation in Britain affecting household spending.

During the period from July to September, 26,000 new subscribers joined BSkyB, slightly less than expected by the market and far from the 96,000 new subscribers registered in the same period last year.

"This is not an environment where you can add many new customers through improvements offers TV, but that does not mean that society can not grow and increase its profitability and cash," said Paul Richards, Numis analyst.

By 0800 GMT, the action BSkyB gained 3.26%, while the European sector index media progressed from 0.55%.

Eviction announced by Pierre-Henri Gourgeon Air France-KLM and the takeover of the group by its president Jean-Cyril Spinetta, could be a lifesaving shock to the Franco-Dutch company, hit by financial indicators in the red and controversial management of the disaster of the Rio-Paris.

In this scenario mentioned in the press Monday, Juniac Alexander, former chief of staff Christine Lagarde, not only would the management of Air France, a decision that was already widely expected, but is positioned to take forward direction General of the entire Air France-KLM.

A spokesman for the group declined to comment, confirming only holding a board in the afternoon and the likely release of a statement later in the day.

Pierre-Henri Gourgeon became Group Chief Executive in January 2009, while Jean-Cyril Spinetta, architect of the merger between Air France and KLM, retained the presidency.

The shelving of Pierre-Henri Gourgeon reached in just over three months after its renewal in early July for a four-year term by the shareholders of the group by an overwhelming majority.

"It's a shock. It is a little surprised because Air France is not a company that used to act like that.However, it is rather good news for Pierre-Henri Gourgeon not really good news to analysts, "said one analyst who requested anonymity.

Around 24:15, the title gained 4.4% to 5.753 euros.It has fallen 62% since the beginning of the year, bringing its capitalization to only 1.7 billion euros, underperforming both the largely German Lufthansa and IAG, an entity formed by the merger of British Airways and the Spanish Iberia.

Pierre-Henri Gourgeon and pay the price for its management of the company, which the French state holds 15.7% stake, which is too much debt, too slow to react and too wasteful, including labor costs well above those of its competitors.

According to press reports, Pierre-Henri Gourgeon Juniac Alexander would have required the newly created position of Chief Executive Officer of Air France as Jean-Cyril Spinetta supported the candidature of Lionel Guerin, CEO of Transavia France.

The catastrophe of the Rio-Paris flight in June 2009, the third serious accident suffered by Air France in a decade, has also raised questions about the technical training of its pilots, after publication of the interim report of the Investigation Bureau and Analysts (BEA).

International air traffic has slowed in August compared to July, posting a 1.6% decline in passenger traffic and a decline of 1.3% of freight from one month to another, said Monday the 'International Air Transport Association (Iata).

Although passenger traffic has increased by 4.5% year on year in August, this trend remains below the 6.1% growth registered so far for 2011.

Air freight has declined in August by 3.8% year on year and increased by only 0.2% since the beginning of the year.

"With business confidence and consumer continues to deteriorate globally, there is not much optimism for an improvement next conditions (sector)," said the Director General of IATA, Tony Tyler.

IATA represents 230 airlines and 93% of global air traffic.

The European Commissioner for Economic and Monetary Affairs Olli Rehn said on Thursday that in his opinion, all States in the euro area have ratified the amendments to the bailout fund EFSF to the end.

Olli Rehn, speaking in Wroclaw in Poland is to be held an informal meeting of finance ministers of the European Union (Ecofin) on Friday and Saturday, also said he expected a "serious discussion" on the efforts of Greece during the two days.

The Finnish Commissioner stressed the importance of reaching early agreement on the guarantees demanded quick to Greece by Finland in the second rescue package granted to the country.

A sale of the Company in general management company Amundi is strategically the most sense among the options available to the French banking group to improve its financial situation, say analysts and fund managers polled by Reuters.

The French bank, already forced to leave in early August its financial targets for 2012, said Monday that it would proceed with asset sales and cost reductions to free up four billion euros in additional capital by 2013. CEO Frederic Oudéa said the sale will take place in the asset management, investor services and financial services.

"The bank is in a very bad happening today.She has no choice, she will have to sell the family jewels to pay off debt and improve its capital position, "said Fabrice Cousté, CEO of CMC Markets.

The managers believe that, already in asset management with Lyxor, the Company generally does not need to be also through CAAM, its joint venture with Credit Agricole in which it holds 25%.

Especially since Lyxor Amundi competition and the 'green banking', which holds the remaining 75% of Amundi could enjoy being sole master on board.

"PILL ANTI-TAKEOVER"

"Strategically, Lyxor is closer to core business (investment banking, network, etc.) of the Company qu'Amundi general," notes Frédéric Jamet, Director of Management at State Street Global Advisors France.

"Amundi had a strategic interest in Societe Generale as pill anti-takeover, but now it is not the issue.A rational, logical, would be to focus on activities identified clear and validating the strategic refocusing of the bank, "he adds.

Analysts estimate that as other European banks, Societe Generale is underfunded and needs to raise new funds, while its capital adequacy ratio "hard" (core Tier 1) stood at 6.6% in Scenario macroeconomic worst in recent bank stress tests conducted in Europe, the lowest of French banks.

"Banks need to raise more capital to avoid bankruptcy, especially if exposure to Greece continues to affect markets. A core Tier 1 ratio between 3% and 5% is too low, it must be significantly higher .From 8% this ratio begins to be sufficient, "said Stefan Isaacs, bond manager at M & G Investments.

Another track planned by Fabrice Cousté, SocGen could give Boursorama, which it owns 55% according to Reuters data. Boursorama is valued around 560 million euros in stock, or about 5% of the capitalization of the Company generally.

No one was immediately available at Societe Generale and Credit Agricole declined to comment.

European shares are hesitant in early trading Wednesday, shared expectations of measures to support the U.S. economy that the Fed could announce Friday and a persistent stress associated with growth faltering and sovereign debt crisis.

Around 9:30, the CAC 40 index, after opening up a passage and then into the red, ahead of 0.31% to 3093.85 points

London fell slightly by 0.23%, Frankfurt is 0.24%, 0.71% Milan, Madrid 0.12%.

The EuroStoxx 50 is 0.09%, Eurofirst 300 lost 0.14%.

Anxiety remains on the market, related professionals, the decision of Moody's lowered by one notch the debt rating of Japan, to Aa3, having come to remind the absence of long-term solution to the crisis sovereign debt.

"The actions may give the impression of falling back on their feet, but the financial stress is always on the rise," said strategists rate of Societe Generale, who are concerned about the widening spreads on CDS and cash banks and their difficulties of long-term financing.

Those responsible for the asset allocation of Societe Generale noted in turn that hedge funds are net short positions opened on a scale comparable to those of 2008 (in a financial crisis, Ed) on the most liquid segment of market shares, that is to say about the S & P 500.

They add that the same hedge funds unwound their net short positions in U.S. government bonds.

"Fears of a recession wiped out expectations of rising bond yields as well as the recent decision by the Fed to keep rates low until at least 2013," they say.

The euro declined against the dollar and is trading around 1.44 against 1.4432 dollars late Tuesday.

Yields on government bonds French and German 10-year stay close to their historical low, respectively 2.12% and 2.78%.

Investors are waiting in the morning the Ifo index of business climate in Germany, then the durable goods orders in July in the United States.

Rather than accuse Standard & Poor's, many American analysts urging their leaders to build compromise in the fight against deficits. Press review.

Two days after the decision by Standard & Poor's (S & P) to degrade the sovereign rating of the United States, the subject is still widely debated in the U.S. media that detail the causes and consequences. The painstaking agreement on raising the debt ceiling, which narrowly averted a default, has left its mark among columnists and observers: many consider policies unable to leave the United States of the rut.Other pin on the rating agencies, even giving the impression of preferring to kill the messenger.

America stung

Symbolically at least, the blow is more severe: the loss of its "AAA" rating, the debt of the United States, the world's largest economy, is no longer considered completely safe. On Saturday, politicians and economists have begun to accuse the rating agencies, Standard & Poor's in mind, even though so far, "economists and U.S. officials were still spectators [degradation of sovereign ratings of European countries]," observes Brian Blackstone, the Wall Street Journal.

Several critics have quickly emerged. First, the United States would have no lessons to learn from a player who has not seen the credit crunch coming in the fall of 2008."Much of our current debt is directly or indirectly related to the fact that S & P has not done its work before the financial crash. Until the eve of the collapse, S & P gave a triple A certain institutions riskier credit, "recalls, in the Huffington Post, blogger and academic Robert Reich. "Excuse me for asking, but what now allows Standard & Poor's to dictate to the United States of how much debt it has to offload and how?" He asked.

"It's like if a young man who killed his parents then complained of being orphaned," summarizes Paul Krugman in The New York Times. The former Nobel Prize in Economics is also up on the error of 2000 billion as Standard & Poor's have made in the calculation of U.S. debt."[Rating agencies] are the last people to whom we must trust," Judge said.

To William Alden, who also wrote the Huffington Post, the "decision of S & P also plays a critical period of weakness", with growth of just over 1%, a weak manufacturing output and consumer spending down.

A "kick ass" saving

But most journalists and editors do not agree. The prize for irony belongs to John Cassidy, who says in the New Yorker as Standard & Poor's "work is public service.""Losing the AAA will be only one of the many humiliations which the country will face in coming decades if the American political system is no longer able to function any less effective," said he.

Rather than "shoot the messenger", many analysts believe like him that the real responsible for the degradation of the note are to be sought in Washington. 'Since 2000, the U.S. launched two wars and introduced two major welfare programs (…), while cutting federal taxes at their lowest level in sixty years.This is not the behavior of a responsible nation (…), but that of a country that uses its role as world reserve currency debt for low-cost, "Justice John Cassidy.

This is followed by the Washington Post, columnist Jonathan Capehart, whose cries: "Thanks for the kick in the ass, Standard & Poors" Degrade the U.S. debt rating is "all that Washington needed," said one who urged Republicans to more responsibility, and the Democrats to abandon their intransigence on the reform of welfare, to ward off the "dirty fighting" on the ceiling of the debt.

Because that's what it is: the press has clearly not forgiven the humiliating series of debates on raising the debt ceiling, seen as one of the main triggers of loss of confidence in the U.S. economy.While S & P was actually wrong in his projections, "the error does not take away any credit to serious concerns about the stability of American finance, and the fact that Washington is unable to take a drastic measure without a gun to their head "observes the Washington Post.

"The attempt to discredit the Obama administration to S & P only worsens the image of the United States," Judge the Wall Street Journal. As for George Bottom, political reporter for ABC Television News, he understands that the U.S. Treasury Secretary Timothy Geithner himself shares the Standard & Poor's, yet he has publicly criticized …

Lessons to ponder

Several media outlets called the policies of the laws to vote quickly to reassure the markets, including three free trade agreements still pending.But these calls for consensus will be heard? Not sure, according to the first political reaction. The Wall Street Journal in its Monday edition, says "the new hobby of Washington" mutual recriminations among Democrats and Republicans, have caused the loss of the AAA. The first aim of the Tea Party and "the intransigence of the Republicans who, during the crisis in the debt ceiling, a Standard & Poor's believes that the federal government no longer worked, and was less able to cope with rising deficits" .

Republicans attack Barack Obama by pointing their "failure of leadership on the economy," the financial daily.In the camp of the President, at the lower of its popularity, we want to believe instead that the decision of S & P "reinforces the plea to the President for a comprehensive plan for deficit reduction, with the key a tax increase and a decrease social programs. "

Remains to be seen what the real consequences in the short term. "The deteriorating U.S. note requires a review of the concept of risk in the global economy (…). If the United States are not as safe as they have been (…) What country can still boast of being? "asks Michael Schuman in TIME magazine, citing the case of France. But he said the strong dollar and Treasury bonds deprive the U.S. of serious competitors. "The challenge the world now faces, he concludes, is that there is nobody to take the place of the United States at the center of the global economy."