Business World |

The Paris Bourse is trying to make a step forward on Tuesday, a day after falling more than 3%. The CAC 40 in advance from 1.6% to 2941.61 points in early trade.

The problems of sovereign debt, however, should still hang over the markets. The pressure rises in the euro zone since Moody's announced that the triple A French was threatened. Spain and Italy are always attacked in the bond markets. Finally, Germany is in the viewfinder of many observers who believe the country could experience a domino effect on the market.

But Europe is not the only one to raise the nervousness of the operators. The market should be affected by the fact that the "super committee" responsible for the debt of the United States do not reach an agreement between left and right, after three months of effort.The twelve members of the joint committee, composed of six Republicans and six Democrats were responsible for the deficit of 1200 billion and had until midnight Wednesday to share their findings. Failing agreement, the law provides for the automatic implementation, from 2013, these spending cuts divided equally between defense and social programs.

Fitch monitors the Americans

President Barack Obama assured that the United States were not at risk of default. He said he was determined to keep the pressure on elected officials and threatened to veto any attempt by Congress to mitigate the budget cuts that are now automatically take effect.

For now, the rating agencies Standard & Poor's and Moody's reported that U.S. credit rating would not be affected by the failure of these discussions.

Cover the whole of France fiber cost about 21 billion euros over 15 years, said Jean-Ludovic Silicani, president of the controller facing the elite of the telecom sector together like every year for the conference in Montpellier DigiWorld Institute (formerly Idate).

On this vast project that will allow access to French high-speed Internet, nearly 2 billion have already been invested, mainly in large cities, where operators are deploying all their network. In medium-sized cities and towns of big cities, they decided to invest to be faster and more efficient.

After an initial agreement between France Telecom and Free in the summer of 1300 entered into common units and 5 million, France Telecom and SFR in turn forged an agreement this week with him, in 3500 and 11 million common units.Result, 60% of French households can receive high-speed Internet by 2020. The dynamics is committed throughout the territory. The penetration takes off. France recorded the first half of the fastest growing in Europe in absolute terms, the number of subscriptions very high speed (87 300), as the DigiWorld Institute.

In this year financially troubled employees rely on corporate savings to rebuild their nest eggs. This is apparent from a study conducted by the CSA institute for the Club of employee savings.

Over the last twelve months, more than half of the beneficiaries of employee savings invested 12% of their pay. A percentage much higher than previous years.

"Employees are concerned about the consequences of the financial crisis. 40% of them plan to evolve their total savings, "says Henry Alline, president of the Club of employee savings. More than half (55%) of respondents in this study say they are satisfied for the moment the financial performance of their business investment. But they were 59% a year ago flexcheck cash advance.

As is the case for several years, employees save for retirement.Over the last twelve months, two thirds of employees and supports a PEE (company savings plan). This device, like Perco Plan (retirement savings plan), allows to build a long-term savings. It is powered by matching contributions from the employer or employee payments can spend up to a quarter of his annual salary.

Provided they meet the minimum capital funds (5 years for the EEP and until retirement for Perco), the yields of these products (dividends, capital gains) are exempt from tax income. This explains the growing success of these formulas, still reserved for the privileged. For 70% of employees do not have access to employee savings plan.

Nicolas Sarkozy counting on the G20 in Cannes to shape its international image to six months of the presidential elections. It has been used beyond its expectations. This is not one but two summits taking place in parallel, for 48 hours on the Croisette.

The first official meets leaders of the twenty richest countries in the world. The second, far more dramatic, is between two doors off the record: it brings together the countries of the euro area G20, joined by the bosses of the EU executive, Jose Manuel Barroso and Herman Van Rompuy fast cash.

This crisis summit took place in two stages. A first in the morning, followed by a second, which began Thursday night in the presence of U.S. President Barack Obama.

After weeks of procrastination, Silvio Berlusconi now seems to want to accelerate the implementation of reforms in Italy. The panic that gripped the markets on Tuesday following the announcement of a referendum in Greece, weakened still further the country's situation. The President of the Council has convened yesterday a special cabinet meeting to approve the emergency plan for submission to the G20.

This meeting was preceded yesterday morning by a preparatory meeting involving key ministers.A tax on wealth was also considered.

For its part, the Bank of Italy said yesterday, after completing a "stress-test" on the public debt (equal to 1.9 trillion euros, or 120% of GDP), it was "sustainable and expected to remain stable or decline slightly over the next two years, although rates on government securities amounted to 8% and that growth is zero. "

"Be responsible"

Silvio Berlusconi pledged Tuesday to Angela Merkel to present the stimulus at the G20. The stakes are high for Italy, when the borrowing rate to ten years the country approaching the "point of no return."

The publication of the sales of LVMH this morning, showing a 15% increase in sales in the first nine months of the year, shows that the luxury sector is beyond the gloom. It is now concentrated around a very small number of listed companies. To play the stock market, investors in Europe the choice of three values: LVMH and Hermes International in France and the Swiss Richemont, owner of brands including Cartier, Montblanc, Alfred Dunhill and Lancel.

In exchange, these groups are distinguished by the same characteristics. First of all, a very strong sales growth which is an essential element of appreciation to investors at a time when fears of a slowdown are increasingly strong in manufacturing and services.Markets expect according to the consensus published by Bloomberg in a 19.2% increase in sales of LMVH this year, against only 10.2% growth on average for the CAC 40 companies (excluding financials). Hermès expectations are even higher (25%). Richemont is penalized by the rise of the Swiss franc, but the market expects (excluding currency effects) to a 19% increase in sales, a level equivalent to that of the previous year.

Good resilience to the crisis

Most of the increase in sales due to the presence of these groups in emerging markets where growth remains strong. LVMH achieves almost 40% of its sales in Asia and the region at Hermès International represented 45.3% of sales in the first half to 590.9 million euros.Although the annual rate of China's growth fell from 9.5 to 9.1% in late September, the outlook for luxury business are very well oriented in these regions.

This exceptional situation leads to multiple capitalization rates of 16.5 and 16.8 times earnings expected for 2011 for LVMH and Richemont, which places them at levels much higher than the 8.6 expected for the CAC 40. Hermes is the subject of recurring rumors of a takeover bid, particularly on the part of LVMH, is paid for his part more than 48 times earnings estimates for the current year. In exchange, a high multiple is certainly synonymous with vulnerability, but in the minds of investors, it is clearly synonymous with exceptional value.

Result, in contrast to Richemont who suffer from the appreciation of the Swiss franc, most of these titles were very well in the market downturn.The course of LVMH declined only 9.4% since the beginning of the year and one of Hermes International prances among the highest growth of the year with a 50% increase since 1 January. While much of this increase was due to speculative buying, what are the prospects for growth and profitability that reassure investors.

ALSO READ:

"Sales of LVMH still boosted by emerging

On the menu of the G20 Finance, the crisis of the euro area and the slowing world economy wiped out all other subjects dear to President Nicolas Sarkozy. Reform the international monetary system to reduce the large global imbalances. At the summit this Friday in Paris, the finance ministers of major economic powers should demand accountability from their counterparts in the euro area.

Statements prior to the summit leaves no room for doubt. The leaders of the G20 countries are working on a short-term plan to stop the economic downturn and reduce the impact of the crisis in the euro area, said a Canadian official on his way to Paris. The G20 will not replace the euro area in the resolution of the Greek crisis, however, he warned.

"The meetings focus on how to increase the resources available to deal with the crisis and stabilize the markets", said Chinese Vice Minister of Finance Zhu. The Europeans would like to see the great powers increase the resources of the IMF so that it can lend more to countries in the eurozone in trouble. "Of course they want, the Chinese Minister has responded. But we have just discussed. "Understand: nothing has been decided to date.

"The resources of the European Financial Stability Fund (EFSF, the support mechanism in the euro area) and the International Monetary Fund (IMF) would be inadequate if the contagion (of the crisis in the euro area) continued" said Pravin Gordhan Finance Minister of South Africa on Friday.In this case, the Brics (Brazil, Russia, India, China, South Africa) "indicated that they would be likely to support international institutions if they were asked no fax payday advances."

No decisions

The G20 finance ministers this Friday should not result in decisions, the Canadian official has warned. Rather it is to prepare the final summit of the French Presidency of the G20, on 3-4 November in Cannes, which will bring together heads of states of representing 85% of the global economy. "Europeans should explore the support that this Friday is prepared to give them their Chinese counterparts, American and Japanese decrypts Ciaran O'Hagan, strategist at Societe Generale CIB.Investors hope the G20 in November resulted in a plan likely to change that. "

Meanwhile, finance ministers French, Italian and German should have the barrage of questions from their peers about their response to the crisis. "The adverse consequences of delaying the solution are just bigger," expressed concern Thursday Lael Brainard, Deputy U.S. Treasury Secretary for International Affairs "Given the growing risks that threaten the recovery, the U.S. will intensified their call for determined action. "The Europeans are on notice: they must find a solution to the crisis at their next summit, Sunday, October 23.

ALSO READ:

"Greece: Paris suggests an alternative scenario

"Greece: Bercy considering that banks pay more

"Europe prepares its banks to a shock on Greek debt

Finally down. After rising continuously for two years, property prices in France fell 2.7% in the third quarter. An observation made by Century 21, one of the largest networks of estate agents. Attention, the phenomenon is not felt the same way everywhere.

The price per square meter have ebbed in seven regions, only one out of three. The most dramatic decline (-9.7%) occurred in Burgundy. Overall, the square meter reached 2621 euros on average in the Hexagon. This downward trend for most homes (-4%) than apartments (-0.8%). "This illustrates a trend that is not new, said Laurent Vimont, CEO of Century 21.Not to be too far from their workplaces, are the buyers prefer to live in inner cities where there are more apartments in suburbs where the houses are built. "

Contrary to what one might imagine, the ups and downs of the stock market and the threat of recession do not even buyers of housing. The decline in prices has a much more immediate cause: rising interest rates on home loans now in the neighborhood of 3.9%. "In recent months, buyers have lost purchasing power of real estate, says Laurent Vimont. In the second half of 2010, paying 1,000 euros a month for twenty years, they could borrow 172,400 euros.Today, with the same reimbursement for the same period, they can not borrow 160,800 Euros. "This increase in interest rates has an impact because in France, on average, 77% of the purchase of a property is financed with a mortgage.

But everybody does not suffer the same way that rising interest rates. Most affected are first-time buyers under 40 years, the number has dropped by 18%. But also the CSP (occupational categories) the least favored: the employees and workers down 17% or middle managers decreased by 12% among the buyers.

Yves Rocher wins first place in the ranking of companies preferred the French. This is indicated by the barometer Posternak / Ipsos released Sunday. According to a survey conducted in late September, the specialist in cosmetic dethroned then Peugeot. For Claude Posternak, chairman of the communications agency quoted by the Journal du Dimanche, the ranking "award both a cost-speaking consumers in times of crisis, a successful family business dynamic in the world and Finally a good fit with the expectations of society for more naturalness. "

Yves Rocher then steals the show from Citroen and Peugeot, which occupy the second and third place.Both brands of PSA, used to the top of the rankings are closely followed by Airbus, the only company in the first ten to score an increase over the previous edition dated June.

Banks still pending

Buffeted by the stock market, banks are unloved by the French. Frontlines to the problems of sovereign debt in the euro zone, this side of love see their melting: the index of average image of the banking sector down 18 points at half. Societe Generale dropped to 29th place out of 30 (-38 points), BNP Paribas in 28th place (30 points), Crédit Agricole on the 25th (29 points) behind the Crédit Lyonnais, 24th (14 points).The gap widens further with mutual banks, which enjoy a good opinion among respondents, like the Crédit Mutuel, ranking 11th.

L'Oreal, the 17th is still suffering from the case Bettencourt while Total is the least loved the company of the French, "crystallizing on behalf sensitive issues: the environment, purchasing power, sharing of wealth and taxation," says Claude Posternak. Overall, it notes that the average index of the image of French companies dropped sharply (-8 points). A decline that is equal to that which followed the subprime crisis in 2008.

ALSO READ:

"Low prices are not enough to win

The defeat of the France rugby team against New Zealand does not have a bitter taste for everyone. TF1, the broadcaster of the game, was pleased to display a record audience for a rugby match since 2007. Saturday morning, 7.8 million people watched the match on average, 65% audience share on the 4 and older. "The hearings are excellent. It should be noted that with 50% audience share on Women, the games attract beyond the traditional circle of sports fans, "said François Pellissier, athletic director at TF1. The crowd is even rise to 9 million viewers late in the game in hopes of a last burst of the Blues face the All Blacks.

Since the beginning of the competition, the team of France is mobilizing the masses. The first match between France and Japan gathered 5 million viewers and a week later France-Canada has attracted 7.6 million.Scores of rivers, these early morning hours on weekends, spray the audience share. Usually on Saturday morning, TF1 is a teleshopping program that fascinates 200,000 addicts. Even the traditional "Auto Moto" and "Téléfoot" on Sunday morning, only drain an average of 1.2 million and 1.8 million fans.

If matches are followed, the magazine presented by Denis Brogniart is also a ratings success. Before France and Japan, "World Cup, the Mag" was attended by 2.6 million people, after France and Canada, it reached 3 million. Small disappointment, "Mag" aired last Saturday of 10:00 to 10:30 has made a 1 pay day loans.7 million audience. Even fans give themselves a fat oval ball on Saturday morning!

Spot € 100,000

With France virtually guaranteed to play the quarterfinals, TF1 can breathe.The chain should at least remove some ten million euros in net advertising revenue (not including sponsorship) of this adventure even if France stops at the quarter-final stage. If the Blues are in the semifinals, the addition will reach 11 million and if they reach the final, TF1 should earn 12 million euros net, according to forecasts by Philippe Nouchi, director of media expertise for agencies Starcom and ZenithOptimedia. With France in the quarterfinals, the 30-second spot is expected to sell 84,000 euros, 90,000 euros semifinals and finals 100,000 euros. Without France, it will settle for 37,000 euros a spot in the semifinals and 43,000 euros in the final spot.

For TF1, the economic equation should not be too unfavorable. The group had bought the two editions (2007 and 2011) to 80 million euros.For competition in New Zealand, TF1 decided to sell some games to France Television and Canal + to 13 million euros. If the chain reaps a dozen million of advertising and it boosts average audience of September and October, the operation will be advantageous.

ALSO READ:

"The World Cup gives confidence TF1

"TF1 shares the Rugby World Cup