Business And Personal Finance

LVMH has published Thursday the results up sharply, signing new record, reflecting once again the resilience of the luxury sector facing the economic downturn.

The world of luxury, owner of Louis Vuitton, Moet et Chandon champagne and Christian Dior perfumes, saw its sales grow by 16% to 23.66 billion euros, exceeding slightly forecasts (consensus Thomson Reuters I / B / E / S of 23.3 billion) and operating income reached 5.26 billion euros (5.1 billion against expected ), signing up 22%.

The group's organic growth stood at 14% throughout the year and 12% in the fourth quarter alone. 

As usual, LVMH does not give any indication about its outlook for 2012, indicating just have the "best assets to pursue an aggressive growth", as many analysts have revised down their pre visions of organic growth of industry leaders.

The annual net income reached 3.06 billion euros (3.07 billion consensus), up 1%, and the proposed dividend will be 2.60 euros (against 2.1 euros in 2010) up 24%.

After the Swiss Richemont (Cartier, Van Cleef & Arpels) and Britain's Burberry, LVMH confirms the strength of luxury to the crisis, on the strength of demand in the e Mergent and very important tourist flows in Europe. 

The title LVMH closed Thursday at 126.40 euros at the Paris Stock Exchange, advancing and 15.5% since early January, after falling 11.13% in 2011.

Perceived by analysts as the value most defensive sector, largely due to the brand Louis Vuitton, she exchanged with valuation multiples of about 17 times the beneficial ; profits estimated for 2012, representing a premium of approximately 15% of the industry average off Hermes.

Poul Thomsen, the head of IMF mission in Greece, will have to recognize that slow the pace of fiscal consolidation since the recession is more severe than expected. The head of IMF mission to monitor the recovery of Greek finances, Poul Thomsen (here in Athens November 19, 2011) The head of IMF mission to monitor the recovery of Greek finances, Poul Thomsen, acknowledged errors in the control of the country for two years and called for fewer budget cuts and further liberalization, in an interview published Wednesday. "The budgetary adjustment was based on an exaggerated tax increases, we should have put more emphasis on cost containment is the one area where we could have been more convincing to the government "said the IMF representative, when asked about possible errors of the IMF by the Greek daily Khatimerini." Although much remains to be done, Greece has made good progress, "he said, claiming to understand the discomfort of the Greek opinion against criticism blaming the downturn on the country or accusing him of being unable to recover. "We should be more careful to ensure that we send a balanced message when we say that the program is off the rails," he said. But "reform and the effort required (…) have lost their momentum, we must find her," he ajouté.Poul Thomsen was recognized "worried" at the worsening of the recession-induced these measures. "We need to slow down the pace of fiscal consolidation and advance much faster in the implementation of reforms." He reiterated that among them, he supported measures to wage cuts in the private sector, as expected IMF boost the economy via a gain in competitiveness, but rejected by the Greeks as being at risk of stopping further consumption and activity. Poul Thomsen in particular called for a reduction in the minimum wage, red rag to the unions, stating that 'to 751 euros gross per month was 35% higher than that of Portugal, and from 20% to that of Spain. Despite reservations Greek on these requirements, he found that the negotiations that led to the side its counterparts Commission and European Central Bank with the government to complete the new plan for the country's recovery will be concluded "very shortly, within a few days."Target these days of sharp attacks in the Greek press as too inflexible and challenged him as in the IMF because of the failures encountered by the first bailout of Greece, Mr. Thomsen also emphasized working in full agreement with colleagues at the IMF.

The revolt of the Greek people is all governments in Europe under pressure "and" this is only the beginning of a process, "he hoped.

François Bernacchi, vice president of Attac Country of Avignon, estimated that Mr. Papandreou shows "the example it is possible to have a democratic consultation." This event marked the beginning of a "people's summit" because of panel discussions and organized until Thursday in Nice, in response to the G20 Summit this weekend in Cannes, whose center is completed by strict safety device, 30 miles away.

Five arrests

In the morning, three Spaniards claiming a movement "anarcho-punk" and in possession of axes, and two Belgians equipped with steel balls, were arrested in Nice. The first three appear in court Wednesday, the two Belgians were released.

Live: a few hours after the Brussels summit that gave birth to decisions on the rescue of the euro area, L'Expansion. Com offers live to follow the reactions in France and worldwide. Markets, for now, enjoy. The President of the European Commission Jose Manuel Barroso, Portuguese Prime Minister Jose Socrates, the President of the Républilque Nicolas Sarkozy, German Chancellor Angela Merkel, the Lithuanian President Dalia Grybauskaite and Finnish Prime Minister Mari Kiviniemi, at Brussels, 28 in October 2010.

Europe was finally granted for an answer to the crisis in its currency. Among the main decisions taken by EU leaders, the discount of 50% of Greek debt held by private creditors. This represents a total deletion of 100 billion euros of Greek debt, currently at 350 billion euros.

To allow banks to bear these losses, a recapitalization plan of 106 billion euros will be established, which will allow European banks to achieve a capital ratio of 9%.

Finally, the most discussed point dernères this week: capacity to 1,000 billion euros from the European Financial Stability Fund (EFSF). Two mechanisms will be put in place to achieve this amount. The first is a system of guarantees provided by the fund on the bonds of fragile countries (Greece, Italy, Spain …) purchased by investors, which will restore confidence.

The second, which will host a special fund investments from foreign countries, including China, Brazil or Russia. This fund should be "in close cooperation with the IMF," the text.Here are the reactions to the EU summit.

9:51: China welcomes the "European Consensus" should "support market confidence" and breathe "new vitality" to European integration as a spokesman for the Chinese Ministry of Foreign Affairs. Beijing should be involved in the rescue of the euro via the mechanism of strengthening the EFSF. China already holds $ 500 billion European bond analysts said. It has 3200 billion in foreign reserves. Russia – which could also help Europe – show for its "cautious optimism"

9:49: The British Finance Minister George Osborne welcomed the "very good progress" in the euro area, on the airwaves of BBC Radio. He now asks that the European leaders set out the "details".Britain was illustrated last week by demanding to be further consulted on decisions affecting the euro area.

9:31: Daniel Cohn-Bendit called the agreement a "small step". He finds that the eurozone is the book "bound hand and foot to emerging countries" and especially to China. "You can not discuss a protection against social and environmental globalization and ask those with whom you negotiate this coverage to pay for your crisis". It is "a bad solution, politically dangerous," said co-chair of the Greens in the European Parliament.

9:26: BNP Paribas ensures it will be able to reach the minimum capital ratio "hard" of 9% set by the European regulator at the end of June without raising funds on markets

9:15: The World Bank President Robert Zoellick speaks "a milestone" that will "save time"."I hope that this important first step will lead to a broader approach to help the world economy to resume growth," said the president of the World Bank.

9:00: European stocks up sharply

Paris opens up sharply from 2.43% to 3246 points and takes more than 4% in early trade. The Dax gained 3.43%, 1.72% London, Milan 2.7%, 3% and Madrid. The Athens Stock Exchange is 4.9% Bank stocks soar despite the need to give up 50% of their claims on Greece. Societe Generale climbed 13.5%, 12.8% of Credit Agricole and BNP Paribas of 12.7%. In Germany, Deutsche Bank and Commerzbank takes nearly 9% to 7%."These measures could mark convincing the prelude to a rebound in banking stocks in particular French and overly abused since August 2011," strategists believe Credit Mutuel-CIC in a note.

8:27: The agreement reached in the night saved the single currency, according to Economy Minister Baroin interviewed on RTL. "The agreement is a response that night ambitious, comprehensive and credible," said the minister. "That's what will solve the case, that's what we come out of the turbulence, that is what will the economic rebound, that's what will stabilize the euro area and global growth", at he said.

8:19: Alain Minc, an economist and close to Nicolas Sarkozy said on Canal + in Brussels that the agreement "should calm the markets." Moreover, the Economist sent a picnic to the Prime Minister of the second country that threatens to pitch after Greece and Italy."The day falls Berlusconi – which will eventually happen – there is no problem because Italian is a wildly emotional issue and therefore how we set up even appear to be very important," he analyzed the specialist.

8:18: The Tokyo Stock Exchange ended sharply higher than 2%. Investors welcomed the Europe Agreement against the debt crisis in the eurozone.

8:00: The euro briefly reached $ 1.40 after the summit. This is the first time since Sept. 7 that the European currency reaches that level. The euro also rose to make the Japanese currency.

8:00: Daniel Cohn-Bendit calls for "a federation of the United States of Europe" in an interview with Liberation."Today is the economic war, it is the markets, as immoral war is immoral, we impose that choice: give up and go, or move up a gear towards the federalization," says co-chair of the Greens in the European Parliament.

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.

Scavengers and transport agents have been on strike for eight days in Athens. They protest against wage cuts under the new austerity plan. Their movement caused the accumulation of tons of garbage in the city. Thousands of "outrage" expressed Sunday, June 19 against the austerity of Syntagma Square in Athens.

Athens was again denied Monday transport due to a 24-hour strike, while tons of garbage piled in the streets after more than a week of mobilization scavengers against wage cuts. No subway, bus, trolley and tram, with only the train interbanlieue running, the main lines of the Greek capital was delivered to huge traffic jams, as on several occasions in recent weeks.

Employees of organizations from the metro and buses, which are manifest in the early afternoon in the center of the capital, protesting against investment in short-cuts and new salary, recently announced by the government, under pressure from country's creditors, the European Union (EU) and the International Monetary Fund (IMF). In turn, municipal employees responsible for waste removal began their eighth day of the strike, while the only landfill in the city remained closed. Torrential rains in the morning had drained the garbage on the roads, aggravating the condition of the streets.

Several government agencies, such as the National Agency for Medicines (EOF), the National Laboratory of Chemistry and the Society of IT Management of Social Security (Idika) were also occupied by their staff.To protest against new measures to cut public sector officials have observed a 24-hour strike Wednesday, the day some 30,000 employees of government departments and public bodies demonstrated in Athens and Thessaloniki (north).

A general strike in the public and private sectors is also scheduled for Oct. 19. The representatives of the troika of the country's creditors (Commission and European Central Bank, IMF) Monday also continued their audit of the Greeks, for the discount provided by 24 October of a report based on which area euro to decide the payment of a portion of eight billion euros, vital to the country always on the verge of bankruptcy.

The European Central Bank has not changed interest rates on Thursday, the rise in inflation last month having won on expectations of lower rates in response to the deepening crisis in the euro area.

The refinancing rate remains at 1.5%, the deposit facility rate to 0.75% and the marginal lending rate to 2.25%.These rates have not budged since 7 July, when all three were found a quarter of a point.

President Jean-Claude Trichet will give his final at 12:30 GMT news conference before handing over to the end of Mario Draghi.

The markets are wondering if a possible break leave for the ECB to lower rates anyway by the end of the year or if it will announce the resumption of bidding Long.

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.

The Tokyo Stock Exchange ended up 0.29% Friday, purchasing cheap market conservative who supported a highly anticipated speech before the President of the Federal Reserve.

The Nikkei gained 25.42 points to 8797.78 points and the Topix, broader took 4.25 points (0.57%) to 756.07 points.

Ben Bernanke is speaking from 14:00 GMT to Jackson Hole (Wyoming), a speech that investors around the world hope to gain clues about the Fed's intentions concerning the U.S. economy.

Hope to see Ben Bernanke announced a new plan to support the economy supported the equity markets early in the week, but this enthusiasm has been tempered somewhat.

"The Index (Nikkei) remains below 9.000 points, and is the level where investors buy stocks with attractive valuations, "said Hideyuki Okoshi, director of Chibagin Securities.

On small volumes, some values ​​abused since the beginning of the month and have found favor with investors.

Elpida, the third manufacturer of DRAM, in particular, jumped 17.58% to 535 yen after losing up to 40% in one month due to the capital increase announced by the group.