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.
The new Italian Prime Minister presented his austerity plan to rescue the country from the grip of the market. Mario Monti – who is also Minister of Economy – promised to keep the accounts of Italy, while stimulating growth for the time being very sluggish. Mario Monti.
The new Prime Minister Mario Monti on Thursday presented a very ambitious program of austerity and recovery to restore "credibility" of Italy and help save the euro in a European Union through its worst crisis of the post the war. "Discipline, Growth and Equity" are the great watchwords of Mr Monti, which was the first speech programs before the Upper House of Parliament before it obtains in the late evening with confidence 281 votes support of 307. The vote of confidence of the members are expected Friday and should get on this occasion also an overwhelming majority.
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.
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.
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 …
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."
Greece hopes to conclude an agreement Tuesday with its international donors, so you can receive a new tranche of eight billion euros scheduled for October, told Reuters on Monday a senior Greek finance.
"The climate was better than expected," the official said, referring to a conference held on Monday between the Finance Minister Evangelos Venizelos and the "troika" (EU, IMF, European Central Bank).
The Ministry of Finance said earlier that this discussion had been "productive and substantial" and that it be repeated Tuesday night.
"We are close to an agreement and we hope to conclude tomorrow.The government will make an announcement likely on Wednesday after the cabinet meeting.We will continue the discussion tomorrow, "the official added.
Without this new tranche of aid, tied to the forefront of international bailout which Greece received last year, the Greek government said it would find itself short of resources in mid-October.
To avoid this, Greece has to reduce its public sector and improve its system of tax collection, consider its international donors.
"The ball is in the Greek camp, the key lies in the implementation of reforms," said Bob Traa, the IMF representative in Greece, at a conference.
These reforms are required to Athens to collect a new tranche of eight billion euros in the first part of its bailout.
According to him, Greece has cut jobs in the public, reduce the salaries and pensions of civil servants and improve its system of tax collection rather than creating new taxes.
Bob Traa was concerned about the lack of public support for the IMF austerity program / EU, while saying that other countries in the euro zone were on the side of Athens, provided that the government showed that he was acting to control its deficits.
FIVE MEASURES
The euro, but Wall Street had cut their losses after an initial source of the Greek Ministry of Finance had said that an agreement was near on aid between Athens and the troika.
Earlier in the day, the euro was down sharply and European shares closed down for fear of a significant failure of Greece.
Greek media have published a list of 15 austerity measures that they believe the troika requires the implementation.They include a new deletion of 20,000 civil service posts, a reduction or a freeze on salaries and pensions of the public service, increasing the tax on heating oil, the closure of public deficit, reducing spending on health and accelerating privatization.
The EC stated that it did not ask to Athens to adopt austerity measures in addition to what has already been agreed in the reform program of government."What is on the table is in full compliance with the agreed objectives," said the spokesperson of the EC Amadeu Altafaj.
Asked whether Greece would receive the next tranche of aid, Venizelos responded to Reuters: "Yes, of course."
Even so, many economists and investors believe that Greece will end up in default on a debt that reached more than 150% of GDP, perhaps a few months.
Venizelos insisted on Sunday that the spending cuts would be the priority of the 2012 budget. He predicted a contraction of GDP higher than expected 5.5% this year.
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.
Wall Street finished the Monday session in a very small increase after four weeks of losses, closing a session with no real trend in a very fragile economic environment.
The New York Stock Exchange finished up 0.34% Monday, the Dow Jones Industrial 30 win 37 points to 10,854.65 points.
The S & P-500, wider took 0.29 point or 0.03% to 1123.82 points.
The Nasdaq Composite was up on its side of 3.54 points (0.15%) to 2345.38 points.
After four weeks in a row in the red, Wall Street has had a turbulent session, alternating folds and rebounds.
The shares have been particularly cheap buyouts, some stakeholders holding that the market had become oversold and the market turned upward late in the session in a climate of extreme volatility as fears of another recession in the United States and those of a destabilization of the European financial system remain.
In this context, investors will watch carefully for signs of possible new measures to support the Federal Reserve the U.S. economy, when its central bankers will meet Friday in Jackson Hole, Wyoming.
Values, the title took Lowe's Companies 1.139% after announcing it would spend five billion dollars to buy back shares over a period of two to three years.
Boeing took the title also 1.45%. Leaders of Delta Air Lines (0.13%) should vote this week an order for 100 Boeing 737 planes worth 8.58 billion dollars (six billion euros), Bloomberg announced News, citing two sources familiar with the matter.
Technology stocks like IBM (0.91%) or Hewlett-Packard (3.6%), are among the best performances of the day while financial still lost ground. The title of Bank of America fell 7.89%.
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."