Business And Personal Finance

Orders to U.S. industry rose for the second consecutive month in December, driven by increased business investment.

According to figures released Friday by the Commerce Department, orders for manufactured goods rose 1.1% in December.

Market economists polled by Reuters had expected, however, an average increase of 1.5%.

The November figure was however revised upwards and shows an increase of 2.2% instead of 1.8% initially announced.

Over the full year 2011, industrial orders rose 12.1%, against an increase of 12.9% in 2010. 

Excluding transportation, orders rose 0.6% in December after rising 0.5% (revised) in the previous month.

Orders for nondefense capital goods and aircraft, considered a barometer of morale of entrepreneurs and their investment plans, surged 3.1% after falling 1.5% in November.

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.

PSA Peugeot Citroen expects a contraction of the European car market in 2012 although it is still too early to assess its extent, said Thursday the President of the Executive Philippe Varin.

These remarks were made while the Committee of French Automobile Manufacturers has reported a decrease of 7.6% of new car registrations in November. Data that confirmed the difficulties of PSA, whose sales fell 15.4% last month.

"We will be in Europe, probably negative growth next year.How, we do not know, it's too early, "said Philippe Varin told reporters on the occasion of the inauguration of a new production of three-cylinder engines at its facility in Trémery (Moselle) .

The annual production capacity of the new gasoline engine with smaller displacement will eventually reach 640,000 units per year.

The company said in a statement it had invested 717 million euros since the project began in 2008.

Manufacturers currently rely on the "downsizing", that is to say reducing the displacement of their engines, to reduce CO2 emissions equal power.

The first engines produced Trémery equip the future Peugeot 208 will be sold in the first quarter of 2012.

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 stock exchanges of Paris, Frankfurt and London have opened up Friday, after falling the previous day as investors hope for feeding a step towards resolving the debt crisis. In Paris the CAC 40 index advanced 0.8% shortly after the opening.

The European banking sector shows some of the strongest performances, gaining 2.4%.

"Investors remain optimistic about a favorable outcome to the debt crisis in Europe.Markets are driven by the hope that the leaders agree on 23 October a viable solution to turn the EFSF, recapitalize the banks and save Greece (…) European leaders could announce release a sum of 940 billion euros to fight against the crisis "Saxo Bank in a note.

At the request of Paris and Berlin, an additional peak in the euro area will probably 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.

The Tokyo Stock Exchange ended down slightly from 0.04%.Title Olympus closed on a new fall of 6.81%, yielding about 50% of its value since October 13.

The euro turned down against the dollar and the price of U.S. light crude continues to rise.

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 them to re- postpone the most important decisions.

This Friday is held an extraordinary meeting of European finance ministers for the summit on 23 October.

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.

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).

According to a report published Wednesday, parallel trade in cigarettes leads to a shortfall of 2.7 billion euros a year for public finances. About 50% of that traffic comes from cross-border shopping. About 30% of parallel trade in contraband cigarettes comes from the

Parallel trade in cigarettes poisons public finances. Less than a month after the plan to fight against this phenomenon announced by Valérie Pécresse, three MPs filed Wednesday in the Finance Committee of the National Assembly, a report detailed information on "the tax consequences of illicit sales of tobacco. " And the result makes you cough. Details.

A loss of 2.7 billion euros in state

The shortfall in the accounts of the state is estimated at 2.7 billion euros each year.The report states that 20% of sales of tobacco are outside the formal network, made up of 28,000 tobacconists state-controlled. The deputies focused their attention on two types of trade: sales outside formal network but legal (cross-border shopping, duty free …), and the illegal (smuggling, counterfeiting, Internet purchases, etc.).. The first 15% of total cigarette sales, the other 5%. Untaxed, these two forms of traffic respectively deprive France of nearly 2 billion euros in tax revenues for one and 800 million for the other.

The exception rolling tobacco

The report also draws attention to the more favorable taxation of rolling tobacco. This product is a substitute for cigarettes when their prices rise.The consumption of rolling tobacco is in fact the only increase (9% between 2004 and 2010) and continues to pull up the turnover of manufacturers (16.6 billion euros in 2010, + 27% since 2000).

And also the tax side, the economic consequences are "devastating" the report said. No fewer than 5,000 tobacconists have closed since 2002 in France. The border departments undergo the phenomenon of head-on, sales were down 52% in volume from 2002 to 2010. By way of explanation, the report points including "differences in prices and taxes" in Europe. In the Hexagon, cigarettes cost between 60 cents and 3.30 euros more than in all neighboring countries. And it's not over: 17 October, the prices of packages will grow by 6%. Even if it does not explain everything, the total tax applied to tobacco products is one of the main causes.In France, it is one of the most aggressive in Europe, representing over 80% of the original price.

Cross-border cigarette smuggling accounts for 50% of parallel trade

This environment encourages such cross-border purchases, depressing the French tobacconists. Such traffic is 50% of informal trade of cigarettes, according to professionals. "These purchases are legal. The French government authorizes, for now, consumers to return five packets of foreign countries. But they are expensive to the state. And we must not delude ourselves. Many do not meet the threshold legal, "says the rapporteur Thierry Lazaro, UMP deputy from the North.

To stop it, Members recommend to first "convergence of prices of tobacco with the neighboring states," including by simplifying tax, but also by setting the initial prices in consultation with the countries concerned.The report also urges governments to implement the price increases coming in a measured and steady in the Cancer Plan 2009-2013. The idea is to avoid sharp rises and irregular.

Finally, against the advice of the Government, Members reiterated the importance of maintaining the limit of purchases of cigarettes abroad in five packages. The European Commission recently sued France to the European Court of Justice to prevent the free movement of goods. It calls for the removal of the threshold of five packets. If France and sentenced, the threshold will be deleted, or it will be fined. "Tobacco is not a commodity like any other. It is harmful and addictive. We must insist and keep this limit. Regardless of the European Commission", insists the rapporteur Jean-Marie Binetruy, UMP Doubs.

Haro on smuggling and the danger of counterfeiting

Smuggling (30%) and Internet purchases (20%), a process banned in France, representing nearly all the rest of the parallel trade. Vendors buy illegal cigarettes at low cost abroad, then sell them in France, in the street or on the Internet for example. The report is also concerned about the increasing number of cigarettes made by manufacturers in countries neighboring the EU that do not meet its standards, but also end on the French market. "Smuggling is dangerous for the economy but also for health. There are many counterfeit, especially from Eastern Europe. These cigarettes often contain anything," warned Thierry Lazaro.

The report calls for the launch of an information campaign about the dangers of counterfeiting, backed by the government and tobacconists.Should then increase the traceability of packets to trace the supply chains and where cigarettes are manufactured. MEPs recommend, finally, hardening and improving the judicial arsenal, for the training of magistrates instructions and rulings, as well as the ability to give justice to disable a suspect website time to investigation.

He who led the PS group in the Senate for seven years was elected by his peers Saturday President of the Upper House of Parliament. He promises to respect the opposition. Jean-Pierre Bel, an elected Ariège, 59, was elected on October 1 by his peers first socialist president in the history of the Senate.

Jean-Pierre Bel, an elected Ariège, 59, previously unknown to the general public, was elected the first Saturday in October by his peers first socialist president in the history of the Senate and became the same time the second character of the Republic. President of the Socialist Group in the Senate since 2004, he burst onto the front of the stage with the unusual shift to the left of the second chamber of Parliament during the renewal Senate last Sunday.Candidate of the new Senate majority PS, PCF, PRG, EELV, he was elected on the first ballot by 179 votes against 134 votes for President outgoing UMP Gérard Larcher, and 29 votes for the former Secretary of State François Fillon, Valérie Létard, centrist candidate. Jean-Pierre Bel got seven votes more than the absolute majority of votes cast in the individual and secret vote in the gallery.

After receiving félications Gerard Larcher, Jean-Pierre Bel delivered his first address as president. "We also heard the deep anger" of the territories of the Republic "for" have been stigmatized, disoriented, perhaps abandoned their face immense difficulties, "he said. He announced the meeting" soon "to States General of elected officials.'s voice choked with emotion, he paid tribute to his family, and communist resistance, and its southwestern region."We will not go into some sort of bastion," "I'll never be there to serve a clan or a Customer: I want always to turn to the collective interest," promised the sixth President of the Senate since the beginning of the Fifth Republic. He called for a "refurbished bicameralism in which the opposition will be respected." It could well be left to the right as President of the Committee on Finance.

François Rebsamen likely chairman of the PS in the Senate

The first task the new president will also get on with the new governance of the Senate, a site not easy given the narrowness of his majority, 177 elected, two more than the majority. No political group will not hold its own. He expressed support for lowering the threshold for the creation of groups of 15 to 10 senators, as claimed by the 10 senators EELV.This may allow the RDSE (mostly PRG), which had 16 members to survive the departure of its three senators on the right, including Jean-Marie Bockel (GM), who joined the centrist group. It will also order of battle group PS with a new president should be the senator and mayor of Dijon, François Rebsamen.

Prime Minister Francois Fillon has asked "to meet him at Matignon in the coming days." During their telephone conversation, Mr Fillon told him "that he wished the government and the Supreme Assembly to work in a climate of responsibility." Martine Aubry welcomed her as a "great day" for the Republic and "victory rally" of all those "who want to change in our country."For the Mayor of Lille, "the election of a Socialist President shows the frustration of elected officials in the field who are tired of being despised by the outgoing President and see every day our Republic a little damaged." François Hollande, a favorite of the primary PS, said he was also "happy" with the election of his "friend" to the presidency of the Senate, seeing "the consecration of the story of a man who gave a portion of his life to activism. "

The trial of Michael Jackson's doctor will soon bring the light of the circumstances of the death of the King of Pop. It is also an opportunity to revelations gains post-mortem of the star and use. Michael Jackson has reported nearly 400 million since his death June 25, 2009.

Two years and three months after his death, Michael Jackson continues to be talked about. The trial of the doctor opens Tuesday in Los Angeles. Conrad Murray is accused of manslaughter for having administered a powerful anesthetic June 25, 2009. But the trial is also an opportunity to shed light on the business post-mortem of Michael Jackson.

A hoard of 400 million

According to a report filed with the court a few days ago by the two executors of Michael Jackson, John Branca and John McLain, the gains of the singer since his death amounted to $ 310 million.And again, this sum is it terminated in December 2010. "Since then, commercial sales have continued to report additional income," specify the executor without giving the amount. According to Forbes, his total income would be close in fact $ 400 million, after the commercial success of his posthumous album "Michael" (3 million records) and sales of the DVD "This is it."

The singer's productions are not the only source of income. The catalog of songs owned by the company and Sony Jackson, valued at $ 1.5 billion, would yield each year between 50 and 100 million to two companies.It includes a half-million songs including 250 Beatles songs, titles of Bob Dylan, and Elvis Presley.

A fortune used to offset debts

The financial windfall of the singer in particular was used to pay the huge debts accumulated by Michael Jackson. And there were many. The Wall Street Journal has even mentioned the $ 500 million in the aftermath of his death, but this was not confirmed. He owed money to "tens of debtors," said the report simply the executors. Of the total 310 million won, "159 million was spent to pay the debts, maintenance of children and to cover funeral costs," Forbes understands.Canadian newspaper The Winnipeg Free Press said that some of the debt has been mopped but some creditors are still demanding their money.

Jackson claims his family heritage

Part of the remaining amount will soon return to the family of the singer. According to the document, John Branca and John McClain, the heirs have requested the release of $ 30 million. This amount will be divided between the mother of Michael Jackson, Katherine, and three children of the singer, Paris, Prince and Michael Joseph Junior, custody of their grandmother since the death of the artist. Another part will be allocated to charities, but the text does not mention who they are or how much will be allocated. In addition, the document states that $ 30 million will be only the beginning, other unlocks should come later.

The text adds that Katherine Jackson would sell the family home in Encino Hayvenhurst. It has not yet been estimated but it was worth $ 4.15 million in 2010. The family should take a much higher price, after making many renovations inside. The judge in the case must approve such requests on Wednesday.

Jackson brand: a bottomless pit?

The revenues of the star continue to benefit from the huge wave of nostalgia that has gripped the world after his death June 25, 2009. U.S. magazine Billboard have estimated the first anniversary of his death that the singer had reported $ 1 billion of revenue to the various cultural actors in the sale of CDs, movies, ringtones by phone, or even video games …

The effects on sales, however, should stabilize in the coming years, says Forbes.But nothing to worry about the Jackson family. According to the calculations of the magazine, the singer's earnings could be between 75 and 100 million dollars a year. Enough to leave Paris, and Prince Michael Joseph Junior freedom from want for a few years …