Business World |

Angela Merkel and her government are holding their breath. Renowned for its warmth towards Europe, the Constitutional Court in Karlsruhe invite this week in the feverish debate on the rescue of the euro. The judges will vote Wednesday on the constitutional legality of financial aid given to Greece in May 2010. Their decision could affect the vote of German MPs, who must decide on Sept. 29 in the Bundestag on extending the powers of the European Financial Stability Fund (EFSF).

Already facing a rebellion of the members of his conservative party (CDU), the German Chancellor has been careful to separate into two parts the vote on aid to Greece and that concerning the adoption of the future European Stability Mechanism (SPM) .More than two dozen elected officials of the CDU threatened not to ratify the decisions taken at the European Council of 21 July, fearing that Berlin does not transfer too much power to Brussels. MPs are reluctant to help Greece, which they consider a "bottomless pit" and feel that their powers in budgetary matters were trampled. The Chancellery is concerned that the decision of the judges in Karlsruhe will come inflame the debate.

Growing skepticism

Largest economy in the euro zone, Germany is also the primary funder and many elected officials in Berlin believe that they should as such have much more say in the rescue plans in the area that other countries. If the Court in Karlsruhe decided to grant German MPs a say too much in the allocation of European aid, the mechanism could find them paralyzed.German lawmakers already ensure tooth and nail over the interests of their taxpayers from a decision of the Court of Karlsruhe, dating from 2009, in which the judges had distanced themselves from the Lisbon Treaty. The Court could also decide to set limits on the allocation of aid to countries in difficulty due to the entry into force in 2012 of the brake mechanism to the debt, the golden rule in Germany. For this aid could lead to cuts in the budgets of the Federal Republic.

Across the Rhine, the distrust of the single currency is growing. A survey of the institute Allensbach with German parliamentarians center-right shows that 76% of them have little or no confidence in the euro, against 71% in a similar poll two months ago.This was reinforced by the departure of Athens, Friday, representatives of the European Union, the European Central Bank and the International Monetary Fund have given ten days to the Greek government to advance structural reforms in the country . The parties of the center-right coalition in power have multiplied over the weekend their warnings to Greece, ordered to implement as soon as his promises of reform in return for aid to balance its budget.

ALSO READ:

"Merkel is fighting for his political survival

"Greece: Berlin warnings

"The Greek prime minister believes the crisis

"The worsening economic and social crisis in Greece

Crisis forces, maintaining half past two in Beijing Thursday at the Palace of the people, between Nicolas Sarkozy and his Chinese counterpart Hu Jintao has largely focused on economic issues. The objective of this whirlwind tour of the Pacific route to the French president, was to reassure the second largest economy in the world and world's leading investor in the resilience of Europe to the crisis of sovereign debt. "Hu is not worried about the situation in the euro area", despite the runaway budget deficits, said the head of the French state at the end of a working dinner. "He told us he had confidence in the euro (…)." "We are confident that Europe has the wisdom and ability to overcome current difficulties and maintain economic growth and stability.China will continue to make Europe a major investment markets, "for his part, Hu said.

In recent months, Beijing – which has 3,000 billion of reserves – was a major purchaser of European debt, particularly Greece, Portugal and Spain.

Identity of views

The visit was also an opportunity for Nicolas Sarkozy to reaffirm the importance of partnership with China, a few weeks G20 Cannes, chaired by France. Stressing "great convergence of views" between the two countries "on the assessment of the international situation," the Head of State stressed the importance of this summit, which is involved in the revival of global growth."This is a major issue and China has a key role," he said, accompanied by Minister of Finance, Baroin, came specifically to prepare the November summit.

For his part, Hu Jintao spoke of "great importance" to strengthen the dialogue between France and China "to the success of the summit in Cannes, for strengthening international economic cooperation and for the recovery and healthy development of economy ".

The two leaders also discussed the thorny question of the convertibility of the yuan.A subject on which Paris and Beijing "want to move forward," said Nicolas Sarkozy, but "without haste".

Finally, on Libya – Beijing was opposed to strikes from the coalition – the Chinese president said he "kindly analyze" the invitation of France to attend a conference of "Friends of Libya" that wishes organize the French president in Paris on 1 September.

LE FIGARO. -The markets are highly concerned in recent weeks of debt crises. In this context, the economy has not she also helped to disrupt?

Jean-Michel SIX. -If, of course. And we must start by saying that in times of summer holidays, the markets, which were then much lower volumes, overreact to any new economic situation. The lower the index is up or dive in a much more important than what happens in winter.

Right now, they are rather dive …

For several months, both sides of the Atlantic, the signals on growth are not good. United States, including employment prospects are very disappointing. In fact, employment is not really left since the 2008 financial crisis.Labor mobility is limited due to the housing crisis: moving to take a new position, which is much the United States, is difficult because it becomes difficult to sell his house. As for household consumption, it is significantly weakened by the debt levels of Americans. A total of 2011 should result in a 2% growth, which is very disappointing for the U.S., where the pace of activity is generally much higher than in Europe.

Europe, precisely, is it in a perilous situation?

The problem of Europe is the growing divergence between North and South. This is something that worries the markets, which are asking what does that mean in terms of consistency of the euro area.Then, after a strong first quarter, it was believed that the air hole is the second passenger (once the effects of the earthquake in Japan absorbed and oil back to lower levels). But we realize that the sequence is also likely to be poor Payday advance.

Markets can they regain composure?

It is quite possible to restore calm in September thanks to coordinated action. What happened in July is that we have simultaneously witnessed a loss of U.S. leadership, unable to break the deadlock of debt and a crisis of leadership in Europe in a context crisis on public finances. This is exactly the opposite which would have required!

So how about it?

First, we must continue the work on European Governance. This is critical. Second, the timing of implementation of the second plan is important for Greece.The European Financial Stability Fund will be endowed with significant firepower, which is to say the least-welcome, but there is some impatience markets. It is important not to drag the national parliaments to adopt the device. The political signal must come quickly. Finally, the ECB has played its role, it must continue to appear reassuring.

That's what she tried to Thursday …

The measures announced by President Trichet, in particular the resumption of purchases by the ECB on secondary markets, are extremely positive.

Investors do they always trust in the euro area?

Yes. Investor confidence, especially in emerging countries has not disappeared. She even remained strong, as evidenced by the excellent performance of the euro since the beginning of the crisis.The euro zone faces a crisis of governance, not a crisis of its currency.

ALSO READ:

"Panicked, Europe stock market tumbles at the end

"The ECB tries in vain to be a firefighter in the euro area

Baroin the stage. He keeps repeating the last few days: it will require further cuts in the tax loopholes in 2012. For now, the government planned to cut $ 3 billion. "It is very likely that we will go beyond, as part of the Finance Act," warns the Minister of Economy. Otherwise, the objective of reducing the public deficit (4.6% of GDP in 2012, 3% in 2013) will not be met. The IMF says the same thing Wednesday, in the final version of his report on France, he warned that without additional effort, the deficit "would decline more slowly contemplated" and still reach 3.8% two years.

However, Prime Minister François Fillon reiterated last week even as the French would not have to tighten their belts further.If the IMF is seeking new revenue – or additional savings – is that it considers the government's growth projections too optimistic. He did not table more than 1.9% next year (after 2.1% this year), where the government is preparing its 2012 budget on an assumption of 2.25% (after 2%).

The cost of Greece and Libya

But that's not really what worries Bercy. Growth at 2.25%? "The account will be," says without a doubt a top official of the Ministry of Economy.

However, Bercy identified several elements that could degrade the accounts. First, the second bailout of Greece. While it will not weigh directly on the deficit of France, as François Fillon stressed. The private sector has agreed to cash a loss equivalent to 21% of the value of the loan granted to Athens.The slate for French banks would exceed 2 billion euros. "We will inevitably income tax on companies and less," admits the Ministry of Economy.

Then "there will be a time when we look at the balance of external operations," Do we loose the ministry. In other words, the commitment of the army in Libya could be very expensive.

Finally, remember that at Bercy Taiwan frigates affair will cost 460 million euros to France. In early June, after ten years of a bitter legal battle, Thales has indeed been ordered to pay more than $ 800 million in Taiwan, for commissions on the sale of frigates in 1991. The State had brought its guarantee in the contract."Public finances must now endure the heavy consequences of the decision in 1991 to pay commissions, unlike the letter of the contract," Matignon had pointed to the announcement of the court decision. This cost was included in the supplementary budget at the beginning of July. It will, however, offset this expense.

ALSO READ:

"The cost of tax loopholes skids

The 3700 points were in the viewfinder of investors in the Paris Stock Exchange on Wednesday. They were exceeded in the early exchanges. At the close, the CAC shows a new gain of 1.61% to 3754.60 points. Yesterday, the Paris VAIT has already managed to recover, ending on a rise of 1.21% to 3694 points.

Other major European markets advance in unison. The London Stock Exchange was also up, the stock exchanges of Madrid and Milan are the most active with gains of 3% each. In London, the FTSE-100 index gaining 1.1% to 5853.82 points in mid-session and featuring Dax index of the Frankfurt Stock Exchange advancing 0.40% to 7221.36 points.

Operators are encouraged by the good performance of U.S. markets, driven by advances in parliamentary negotiations in the United States for raising the ceiling on the debt.President Barack Obama for the first time reported "progress" in this debate, adding that the new Senate plan, presented Tuesday, was "consistent" in its approach. The Chairman stressed however that "not much time" before the deadline of August 2 to avoid a default. Wall Street was also reassured by good indicators of industrial performance and better than expected. Asian markets were also sending positive signals this morning.

Time, however, should still be prudent on the eve of a crucial European summit for the future of the euro area. The heads of state are to meet Thursday in Brussels to discuss the bailout of Greece. Several proposals for involving the private sector are on the table.

On the currency side, the euro rose slightly against the greenback at 1.4181 dollars against 1.4150 dollars late Tuesday.Oil is, him up: a barrel of "light sweet crude" for delivery in August takes 80 cents to 98.30 dollars and that of Brent North Sea crude for September delivery gained 69 cents to 117.75 dollars .

Values ​​to follow

Havas: + 1.88% to 3.46 euros

The advertising group has announced the acquisition of a majority stake in the Australian Host, the first independent agency of the country, for an undisclosed sum.

Saffron: + 3.25% to 28.60 euros

Tuesday the group received the green light from Washington for the purchase of American specialist of biometrics L-1 Identity Solutions. The agreement was announced last September for $ 1.1 billion in cash.

Edenred: -5.14% to 20.49 euros

The company specializes in prepaid service said Wednesday he was informed of an investment for 8% of its capital.Nearly 18 million shares have been placed Edenred Wednesday market at a price of 20.30 euros, a total of around 367 million euros, according to a source familiar with the matter said that the placement was the act of a U.S. institutional.According to a source market, it is South Eastern Asset Management.

Alstom: -1.30% to 37.95 euros

The group said Wednesday sales down 12% in the first quarter of fiscal year 2011-2012, to 4.5 billion euros, reflecting the "low level of orders registered during the crisis," but a sharp rebound its order intake over the same period (+44%).

Schneider Electric: + 1.52% to 106.70 euros

The group announced an extension until August 2 of its friendly takeover of two billion dollars (1.4 billion euros) on the Spanish Telvent, which it already owns to 19 July, before the closing date of the offer, 97% of the shares.

Laurent-Perrier: -1.15% to 97.75 euros

The group announced Wednesday an increase of 11.5% of its turnover in the first quarter thanks to a mix effect prices soaring and exports still strong.

Accor: + 3.03% to 30.40 euros

The group was optimistic Tuesday in announcing an acceleration of organic growth in the second quarter due to increased occupancy rates and the gradual recovery of prices.

ADP: + 1.12% to 61.38 euros

The group announced a 4.6% increase in passenger traffic at its airports in June, driven by growth across all trajectories with the exception of Africa and the Middle East.

PPR: + 0.98% to 128.75 euros

Fnac, a subsidiary of luxury group, unveiled Tuesday a five-year strategic plan, called "Fnac 2015", which should enable it to boost sales after a disappointing performance.

EADS: + 3.30% to 24.72 euros

Boeing, seeking to rescue a potentially very large contract with American Airlines, has offered to install a new engine on the current 737, while the airline is still considering a generous offer to Airbus. Moreover, the French military shipbuilder DCNS said Wednesday negotiate with the German Atlas Electronik the creation of a joint venture between their respective activities of underwater weapons, confirming a report in Les Echos.Atlas Elektronik is owned by EADS and ThyssenKrupp.

Biomerieux: -1.44% to 78.46 euros

The group announced the acquisition of French company Argene Molecular Biology and confirmed the objective of growth of its business year after an increase of 3.5% of its turnover in the first half of 2011.

Sanofi-Aventis: + 1.14% to 55.06 euros

The Canadian Valeant Pharmaceuticals announced yesterday the signing of an agreement to buy the French laboratory marketing rights and distribution in Canada of a cream against osteoarthritis.

Manitou: + 1.03% to 21.65 euros

The group raised its forecast Tuesday for 2011 after signing up 45% of its turnover in the first half despite the continuing difficulties of supply.

Always on the side of publications, after market, Unibail-Rodamco will present its second quarter results and Ubisoft announce its first quarter 2011-2012 revenues.

Coincidence of timing. IMF-EU Troika-ECB chose the last week of the campaign to start in Lisbon's assessment mission. Whatever the outcome on Sunday of the early legislative, the next government already knows he will receive a very limited scope. Winner given according to recent polls, the opposition leader, Pedro Passos Coelho (PSD-center right), should apply as soon as possible the austerity program imposed by the troika, in exchange for an aid package of 78 billion euros.

Click image for larger graphic.

Rather used to host a Parisian clientele, Deauville sees scroll past few days of military weapon and police bulletproof vest. On the eve of the G8, the 26 and 27 May, which annually brings together leaders of the top eight economic powers, the seaside resort of Calvados now looks like a real fortress. It must be said that for this edition, no less than 25 nations-and-so many leaders will attend. Since that besides Barack Obama, Angela Merkel or Nicolas Sarkozy and their counterparts from seventeen countries in Africa and the Arab Spring were invited for the final day of the event. In total, therefore, more than 8000 officials, experts and journalists who invest the city, where, in normal times is less than half the souls.

For this event outside the norm, security officials have placed the city under very high protection.GIGN to the elite unit of the Raid, the platoon of gendarmes mountain through the Air Force … More than 12,000 policemen, gendarmes and military have already taken a position on the town and surrounding areas. An area called "sanctified," "blackout, except for heads of state and their delegations' officials said, has been delineated in the heart of the city. It includes facilities which will host the summit meetings, as well as hotels and Royal Normandy (with respectively four and five stars) that will host the heads of state. In addition, an area "safe" encompassing the town will be controlled by more than 5,700 police officers. Only able to move people, journalists and officials provided a special badge.

UAVs and air defense batteries deployed

But the device does not stop there.Two security perimeters, including Auberville (west station), Pont l'Eveque (south) and Villerville (east) were also established. This sector, under control of the gendarmerie, includes the airport of Deauville Saint Gatien will land where the majority of delegations. To this must be added a no-fly zone, monitored by "at least one drone and batteries of surface to air missiles, according to the Ministry of Interior. Sea side "of the warship, patrol boats and zodiacs of the police will be deployed.

The Department of the Interior, the device is deemed "suitable". "The terrorist threat level is important," argues Pierre-Henry Brandet, his spokesman, that evokes a "Vigipirate red" because of the Arab revolution.However, he claims not to have "particular concern" to the threats made consecutive to the West after the elimination of Osama bin Laden by Washington. However, he stated his concern to avoid any spillover of anti-G8 ", who come together for over a week to Caen and Le Havre.

CRS housed in University City

In total, the cost of operation vary between 16 and 20 million euros for the French state, according to Pierre-Henry Brandet. "Essentially, it involves building a media center, an SPV to issue badges, and accommodation of law enforcement," he recites. The spokesman, however, sees only a "modest summit." He stressed that "Deauville was chosen because there were already all on-site facilities, including an international center and a hotel offer abundant.In fact, if the budget allocated to the summit seems high, it remains well below those of previous similar events. For the record, the NATO summit held in Strasbourg in 2009, had cost 50 million euros. What had prompted the Court of Auditors, in December 2010, sounding the alarm in a report to Parliament.

Philippe Augier, Mayor of Deauville, on the other hand ensures that the state was more ants than usual. "I felt a real desire to limit its services to the bill," he says, recalling that his city has already hosted the G3 between France, Germany and Russia, in October the last year. Based on initial feedback on the spot, hard to prove him wrong. According to the website My Channel student companies of riot police mobilized to Brittany the opportunity to stay the university of Caen, sharing their dorm with … young anti-summit.The information website of the faculty lamented "a little friendly agreement" between the police and students. "Our presence may be considered provocative face protesting students may be against the G8," an irritated CRS, calling it somewhat "clumsy" choice of the authorities.

Analysts had anticipated a pleasant surprise in the first quarter for Publicis. They were right. But they expected that the group displays a better advertising revenue. Publicis has posted organic growth of 6.5% in the first quarter to 1.286 billion euros, against a consensus of 6.7%.

An Unusually, this performance is due to the good performance of Latin America (organic growth up 8.7% in the first quarter), supported by Brazil (+20.1%), U.S. USA (+8.4%) and Europe (+6.2%) boosted by France (+8.2%). In contrast, the Asia-Pacific is growing only by 1.5% due to the earthquake in Japan and floods in Australia. China limits the damage with a growth of 8.2%. "Our exposure in Japan is low.The earthquake and tsunami that struck countries, such as the revolts that took place in the Middle East, will negatively impact any of our forecasts for 2011, "said Maurice Levy, Publicis chairman. The boss of the advertising group is also stayed very evasive on the subject, merely indicate that "a 5% growth in sales in 2011 would be a very conservative forecast."

"We outperform the market by 2011"

Thanks to the good performance of China, Brazil, but also Russia and India, growth in emerging countries amounted to 11.4% in the first quarter. Digital activities alone represent 28.2% of Group revenue (against 27% in 2010). "We do not show much innovation and therefore continue to invest in growth markets such as digital and emerging" quips Maurice Levy.Digital activities and represent emerging elsewhere 48.3% of Group revenue in the first quarter "in line with the group's objective is to achieve 65% of its income on these two segments," says he .

The advertising market, the subsidiary of Publicis, ZenithOptimedia, has yet reviewed this week down its forecast for investment growth in 2011 to 4.2% against 4.6% due to the disaster in Japan and uprisings in several countries Arab. But that does not diminish the confidence of Maurice Levy. "Advertisers have not stopped their campaign, assures the President of Publicis. We found no concern on their part. Their primary concern is the growth, not cost reduction. "

A trust that is found when talking about the second quarter. "The second quarter looks good.The year 2011 will be for its good or very good, "said President of Publicis. We outperform the market in 2011. Obviously, the soaring price of raw materials encourages companies to protect their margins. It may therefore be a risk cutoff of investment from advertisers. But the future is growth. "

Future and it is precisely at Publicis issue, that of Maurice Levy, whose mandate expires Dec. 31, 2011 will be extended. But the president still has not set a date or given any indication as to his successor. "My priority is Publicis. I will remain the necessary time. "

Traders are convinced, Schneider Electric is about to start his tour in the waltz of mergers and acquisitions. Concordant sources, the industry group has approached Tyco International. Schneider Electric had made a bid of about $ 30 billion (about 20.76 billion euros) to encourage the Swiss group of safety and engineering to come to the negotiating table.

Information that contradicts this Wednesday, the group led by Jean-Pascal Tricoire. Management refutes indeed in a statement "to be currently in discussions with Tyco International over a possible strategic transaction." This does not mean that no discussions never took place.This is a formal response to rumors magnified the last three days about a possible interest of the French group to Tyco.

Now that he has denied being in negotiations with Tyco, Schneider Eclectric is forced by regulators to abandon any attempt for six months supply on the Swiss.

A Tyco spokesman confirmed to the press to have received an offer

The assumptions were yet in full swing this morning. And for good reason: this merger would make the new entity the world's leading security systems.

A Tyco spokesman confirmed to the Wall Street Journal that "the board is studying the proposal," he received with surprise. The Daily Telegraph said of his side as the board of Tyco has given the green light to a process of "due diligence" (consultative accounts).The two dailies ensure that JPMorgan and Bank of America Merrill Lynch attended Schneider Electric since September on this issue and that the most likely hypothesis was an offer in cash and securities.

Schneider Electric has even considered issuing the CEO Edward Breen of Tyco a seat on the board of the merged entity. But according to the Daily Telegraph, Tyco would not be willing to accept an offer below $ 65 per share.

At the NYSE, the title Tyco soared more than 7.4% to 52.33 dollars on the rumors and was thus valued at $ 24.8 billion (about 17.17 billion of euros). Conversely, in Paris, Schneider Electric has lost 3.5% to 112.90 euros per share, representing a capitalization of 30.70 billion euros.On two days, the title of the electrical equipment manufacturer has won more than 7.5%.

ALSO READ:

Schneider is growing in the U.S.

Schneider: the takeover rumors persist

More than a month after the fall of President Zine el-Abidine Ben Ali, two French ministers have visited for the first time in Tunisia on Tuesday. For this visit aimed at restoring confidence between Paris and Tunis, following a succession of blunders diplomacy, Economy Minister Christine Lagarde is accompanied by Laurent Wauquiez, the minister for European affairs. Officially, the European Affairs Minister Michele Alliot-Marie could not go to Tunis to issues agenda. She is currently conducting a two-day trip to Brazil.

"Trust between Tunisia and France has not been broken," assured in front of some journalists Christine Lagarde at the beginning of his visit to Tunisia a few hours low fee payday loans. "The relationship between France and Tunisia has for centuries made a lot of light, a little dark sometimes.We are clearly in a period of light for this country, "she added.

"We do not come to lecture but to listen to their needs," said his part the Minister of European Affairs, Laurent Wauquiez. He raised the possibility of increasing European funding and needed to establish a "Marshall Plan now for Tunisia, European and also global":

The player has to use the default items for export of figaro.fr FB