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.

China must wait for Europe proposes a plan to end the crisis of sovereign debt feasible prior to contribute, said Friday an adviser to the People's Bank of China (COPD) but stressed that Beijing should have " some controls "on the use of funds provided.

China will study with other emerging countries, namely Brazil, Russia, India and South Africa possible initiatives to help Europe overcome the crisis of sovereign debt, said Li Daokui , a member of the Monetary Policy Committee of the Chinese central bank, speaking at a conference in Beijing.

"If we make money (the Europeans), we need some controls. We can not say we give you the money you spend as you wish.It's not fair that you keep a lavish lifestyle, "said Li told reporters.

The European Union is the largest trading partner of China and Li provides a limited contraction of the Chinese trade surplus this year to 150-160 billion yuan.

"For Europe, we can not just watch what happens and do not help," he added.

Li Daokui said that the figure of $ 100 billion to buy European sovereign debt and the media have given it was only a "theoretical figure."

Li warned that the growth of China's GDP to slow to 8.5% in 2012 from 9.2% expected in 2012, adding that China should maintain its current economic policy throughout the next year.

The resident of Calvados in September which won the sum of 162 million euros in the Euro Millions became known to the French Games. He was thinking of "investing in the French economy." If the Euro Millions grid costs two euros across Europe, certain terms of games vary from one country to another.

The winner of the jackpot of 162,256,622 euros in the Euro Millions draw of 13 September, which had approved the ballot in Calvados, became known to the French Games (FDJ) and received his check, said Thursday morning the JDF in a statement.

This player, who wishes to remain anonymous, has the highest gains in French Euro Millions and all-time record earnings in a money game in France.He "thinks about investing in the French economy", or to real estate projects adds the JDF without elaborating, at the request of the player, on the date of payment or the locality where the Calvados has been validated winning newsletter . {P}

The budget deficit widened further in Greece in September due to a recession driven by austerity measures, in spite of new tax measures that were supposed to increase revenue.

The budget deficit increased by 15% annually, to 19.16 billion euros over the period from January to September, show statistics from the Ministry of Finance released Wednesday.

In September, Athens increased VAT on catering to 23% and began collecting a special tax of 1% to 5% on gross revenues.

However, tax revenues fell by 4.2% over the nine months January to September, after falling 5.3% over a period of eight months.

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.

Release published Wednesday the details of the debt of French local authorities have signed 5500, the report said, toxic loans from the bank Dexia Credit Local (DCL) between 1995 and 2009.

The daily said that based on a confidential file of the bank, writes that DCL had distributed 25 billion euros for its customers at the height of the "bubble".As estimated by the bank, the additional cost of these loans was estimated at 3.9 billion euros at end 2009, reports Liberation.

"The bank common that ruined 5000", as Libération, which published on its website (www.liberation.fr) a map of the communities adhering toxic loans from Dexia.

Release cites the example of Antibes, which would have borrowed 60 million and 21 million would pay in addition to that amount, or department of the Loire, which is expected to repay 22 million in excess of 96 million toxic loans.

Dexia declined to make immediate comment but a spokesman said the bank did not rule upon "appropriate action in the interests of Dexia and its customers."

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 Strategic Investment Fund (ISF) announced Tuesday it had invested 4.1 billion euros in French companies since its launch in 2008.

These sums have been invested in the form of direct interests in companies to the tune of 2.8 billion euros and 1.3 billion through sector funds like the Fund to modernize the automotive (FMEA) for the sector or InnoBio Biotech.

These investments correspond to a cruising speed of 1.7 billion euros a year, yet indicated the ISP.

With 20 billion euros in capital, the sovereign fund "French" was launched in late 2008 crisis to invest capital in companies deemed strategic and promising growth.

It is 51% owned by Caisse des Depots and 49% by the French State. If the two shareholders have yet to bring him 3 billion euros in cash, an amount of 1.5 billion euros has been allocated as a long-term loan from the savings fund, which manages funds A. Booklet

In particular, the ISP back to the capital of French companies such as STMicroelectronics, Vallourec, Soitec and Gemalto.

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.