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.

According to the association of consumers, distribution margins reflected in the service stations would have increased by almost one third in ten years. CLCV denounced a "surge" margins at service stations.

The consumer organization CLCV Tuesday denounced a "surge" of nearly a third in less than ten years of distribution margins impacted by service stations in the fuel prices at the pump, now close to their record in France .

According to a barometer of the association, which is based on the statistics of the French Union of Petroleum Industries (UFIP) and administration, and distribution margins are increased from 2001-2003 to 2008-2010 from July to September , 6 cents for gasoline and 6.3 to 8.6 cents for diesel.

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."

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%.

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 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 …

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.

The French president in whirlwind visit to Beijing to prepare for the next G20, estimates that China has "a major role" in reviving global growth. "We need the G20 summit (…) make decisions and take part in the revival of global growth. This is a major issue and China has a key role," said Nicolas Sarkozy.

The next G20 summit in Cannes will "decide" to revive the global economy, China is playing a "major role" in the process, said Thursday in Beijing Nicolas Sarkozy. The French president was greeted by his counterpart Hu Jintao at the Palace of the people of Beijing, Tiananmen Square, for a whirlwind tour of about five hours, with talks on Libya and sovereign debt crisis, and a dinner working with the Chinese president.

"As chair of the G20, I could not imagine not coming to China to talk with my Chinese friends of the great economic issues of concern to the world," said the head of the French state. "We need the G20 summit (…) make decisions and take part in the revival of global growth. This is a major issue and China has a key role," he added, to sides of the Minister of Finance Baroin came just prepare for this appointment.

The next summit of the G20 (group of rich countries and major emerging markets, currently chaired by Paris) will be held in Cannes (south-eastern France) on November 3 and 4. "That France and China strengthen their dialogue is of great importance for the success of the summit in Cannes, for strengthening international economic cooperation and to promote recovery and healthy development of the global economy," said Hu Jintao.

Paris and Beijing in phase of the post-Qadhafi

Nicolas Sarkozy is located in Beijing while the fall of the regime in Libya is not complete: the remaining pockets of resistance in Tripoli after the entry of rebel and Colonel Qaddafi is not found. But after being in Paris on Wednesday the number two of the rebellion Libya, Mahmoud Jibril, Sarkozy has proposed a conference of "Friends of Libya" on 1 September in Paris, which would go beyond the mere contact group and include the major emerging economies such as China. If China was hostile to the coalition strikes against Libya, it is however in line with Paris on the post-Qadhafi since Beijing also wants to see the UN play a "leading role" in Libya.

But the official newspaper China Daily Thursday gave a somewhat optimistic vision of the post-Gaddafi, saying "inevitable chaos and conflict emerge as the various opposition factions will fight for the political leadership." "China must maintain contact with all parties," added the newspaper.

The presidents Sarkozy and Hu should also talk about the problem of sovereign debt in Europe that undermine stock markets. The Global Times said Thursday in its Chinese version that Sarkozy "has just (in Beijing) first to get the continued support of China on the resolution of sovereign debt crisis in Europe." Considering that "26% of foreign exchange reserves of China are in euros," Ding Chun, professor at the Center for Research on Europe at the University of Fudan, Shanghai, called in the official newspaper of Europe to put the finances in order.

"The EU and Sarkozy have, while calling on China to take more responsibility in maintaining the stability of the global economy, making a decisive and courageous sacrifices (…) that developed countries must to face global challenges. " After a press statement, Mr Sarkozy will resume early in the evening fly to New Caledonia where it is to open Saturday the fourteenth game of the Pacific.

Wall Street closed in fall of 3.68% Thursday against the backdrop of gloomy statistics for U.S. growth and sharp decline in banking stocks, hit by fears of contagion from the debt crisis through the U.S. subsidiaries of European banks .

The New York Stock Exchange ended down 3.68% Thursday, the Dow Jones industrial yielding 30 419.63 points to 10,990.58 points.

The S & P-500, wider, lost 53.24 points, or -4.46% to 1140.65 points.

The Nasdaq Composite fell on its side of 131.05 points (-5.22%) to 2380.43 points.

The CBOE volatility index, also known as the "fear index," jumped 37.62%.Since April 29, the S & P 500 has lost about 16% of its value, investors moving away from risky assets in this uncertain economy.

In Europe, the European stock markets saw another black day and extremely volatile.The Euro Stoxx 50 has dropped 5.3% while the implied volatility of index pan jumped 34.6%.

The macroeconomic picture in the United States has further clouded Thursday's jobless claims rose more than expected last week, the Philly Fed index in August hit its lowest level since March 2009, home resales fell against unexpectedly in July.

The weekly jobless claims rose in the United States during the week to August 13, at 408,000 against 399,000 (revised) the previous week.

In addition, Morgan Stanley lowered its growth forecasts for the global economy for the years 2011 and 2012, the revision is stronger for developed countries.

As in Europe, banks were particularly affected, the S & P financials fell 5% and the KBW bank index of 5.63%.

The Wall Street Journal reported that the Federal Reserve Bank of New York accentuated his investigations on the U.S. subsidiaries of major European banks, fearing that the debt crisis in Europe will be transmitted to the U.S. economy through them.

And what the boss of the New York Fed's William Dudley, who responded by saying that the central bank treated "exactly the same way" the U.S. and European banks, have it seems not enough to reassure investors.

Citigroup, Bank of America, JPMorgan Chase, Goldman Sachs and Morgan Stanley, respectively, showed a decline of 6.26%, 6%, 3.77%, 3.5% and 4.76%.

Values ​​highly correlated to growth have also suffered greatly, securities IBM, United Technologies and Oracle declining by 4.46%, 5.45% and 8.3%.

Finally the title Hewlett-Packard unscrewed from 6% after the announcement of the takeover of British Autonomy and a possible split with its business PC sales history. The group also released its quarterly results and lowered its annual forecast.

Standard & Poor's warned Friday it might lower the credit rating of Cyprus, saying not to believe that the country's fiscal position is manageable after the collapse of the coalition government.

The rating agency placed the rating of the country under review with negative implications.

Cyprus is rated BBB + by the agency, which is three notches above speculative grade.The short-term rating is A-2.

The rating agency said it might lower these ratings, and it would give the results of its review once it has examined the economic projects of minority government.

"Due to the departure of a coalition party, the DIKO, the Cypriot government is in our opinion in a more delicate to pass an emergency budget measures in Parliament," wrote S & P said in a statement.

The government no longer has a parliamentary majority since the start of the Democratic Party, which was allied in a coalition.

Moody's lowered the rating of Cyprus on July 27 to Baa1, the level equivalent to BBB + from S & P.Fitch did the same on August 10 and placing it at BBB, one notch below the other two agencies.

Wednesday, Cyprus has unveiled an austerity program of 750 million euros over two years to control the deficit, aggravated by the energy crisis that hit the island since the explosion of its main power plant on July 11.

Opposition parties believe that these measures are insufficient, which augurs a difficult debate in parliament on August 25.

"We believe that the Cypriot government's fiscal position is unsustainable," wrote S & P said in a statement.

The agency questioned its ability to achieve the "ambitious" goal of a debt / GDP ratio of 2.5% in 2012 and believed that the shock absorption capacity of the Greek debt by the system Bank of Cyprus is not "unlimited."