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The principle of constant allowance

The allocation is a constant option contract of life insurance. This smooths market fluctuations by defining a distribution of amounts paid life insurance contract between the different media that he is leaning. The allocation principle thus applies to contracts linked life insurance.

Namely: in some cases, the allocation is also called constant distribution constant.

The operation of the constant allocation

The insured must determine its profile management, in deciding to assign to each holder a percentage of total capital. Thus, when losses are recognized following a stock movement, arbitration is automatically performed to rebalance the distribution of capital of the insured.

For example, suppose a contract of life insurance of € 10,000 allocated to fund 50% in euros and 50% unit-linked shares. After a year, the accounting units have experienced a gain of 10% and the euro fund a 3% gain. The contract contains so now € 5,500 units of account and funds in euros € 5,150 or € 10,650 in total. It is distributed to 52% unit-linked funds and 48% in euros.

The initial distribution intended by the insured is no longer respected: the contract is more exposed than expected stock market risk. The difference can of course get bigger every year. The option allows you to return to the desired proportion, 50% / 50%, to maintain the desired level of risk low interest rate personal loans.

Subscribe constant allowance

When subscribing to a multichannel contract, the insured may request an allowance optional subscription constant. It is however also possible for an insured to apply for the allocation constant during the contract. Therefore, it must determine its management profile based on several parameters:

-The frequency of rebalancing,

-The media involved in the arbitration,

-The threshold at which the arbitration takes place.

Note: often give rise to arbitrage costs. The constant allocation option is no exception to the rule.

Advantages and disadvantages of the constant allocation

The main advantage of the constant allocation is that it allows management to determine automatically matched to a profile. But it also helps secure the capital gains generated on the stock market by assigning them to more stable carriers.

The main drawback remains the systematic allocation constant, in the event of significant market fluctuations, can generate a lot of arbitration costs.  

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The Spanish crisis is serious, very serious. It weakens a little more of Europe, its growth and financial system. But, unlike Greece, Spain will not "explode" the euro. Person, even among the fiercest opponents of the single currency is considering an exit from Spain in the euro area. Spain, despite record unemployment, is not on the verge of bankruptcy. Its lending rate to ten years amounted to 5.86% Friday, but they have been higher: 6% mid-April, and 7% in November.

A priori, Spain will not need a bailout General as Greece or Portugal. The Standard & Poor's recognizes itself: the Spanish Treasury has already covered 50% of its funding this year. The country should have no problem to repay its creditors in 2012.

Famine budget!

However, Spanish banks are on the ropes. Savings banks are not the only ones being targeted. There is nothing surprising about that. Unemployment makes mortgage repayments more difficult, weakening bank balance sheets. Massive purchases of Spanish debt by financial institutions of the peninsula, with funds loaned by the European Central Bank (ECB), are not a panacea, far from it, especially if tensions persist in the bond markets.

At this point, the recapitalization needs of the Spanish banking sector are estimated at 50 billion euros: a sum equivalent to half of the Spanish public deficit in 2011. In other words, beyond the reach of government in these times of fiscal scarcity!

But not beyond the reach of the euro zone! The central bankers of Europe, Mario Draghi and Jean-Claude Juncker planchent discreetly on a bailout of Spanish banks able to calm the markets. It would involve the European Stability Fund (EFSF), or the European Stability Mechanism (MES), its successor from 1 July.

Since the alert on the Italian debt last summer, the euro area has assured his rear. It has a "firewall" of 750 billion euros due to cumulative lending capacity of two European rescue fund, the EFSF and MES. For its part, the IMF has increased its resources to $ 430 billion. As for the ECB, it has already injected € 1,000 billion in the banking system, and nothing prevents him to continue

.

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This contrasts with forecasts of real estate agencies. While Century 21 provides a stable property prices this year, Standard & Poor's anticipates a price decline of 15% by 2013. The demonstration of the rating agency is rigorous: in France, when borrowing capacity decrease, property prices nosedive. Between September 2007 and March 2009, borrowing capacity have receded by 7%, with the key to lower prices by 10% between March 2008 and June 2009. "In the next eighteen months, we expect a drop in borrowing capacity of the same magnitude, we read in the S & P memorandum, published yesterday. And also in 2012 we anticipate a 20% reduction in the number of home loans. "

That's why the rating agency predicted a price decline of 15%. To support his argument, it gives some examples of the greatest requirement of banks' property loans. By July 2011, the average credit was increased to 211 months (17 years and a half) against 237 months (almost 20 years) in March. As the number of credits, he has already plunged 40% last February. Another indicator that calls for a decline in prices: the real purchasing power is likely to decline in France, according to Standard & Poor's, in the first half, inflation would reach 1.3%, while disposable income would increase only 1% and would not know of developments in the second half. As for interest rates, they could rise to 5% by the end of the year, against 4.7% on average in December. Plausible macroeconomic data that fail to address one element highlighted by estate agents, psychological aspects related to buying a home. The coming months will tell if reason prevailed over passion, if S & P has better sensors that real estate professionals

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"2011 was a very good year. The outlook is quite favorable for 2012. There will still be strong growth, "said Jean-Paul Herteman Wednesday, Chairman of the Group of French aeronautical and space industries (Gifas), which comprises almost 300 companies large and small. Last year, orders were up 17% to 53.9 billion euros thanks to the success of the Airbus 320neo, ATR regional aircraft and engine that equips the Leap 320neo Airbus A, B MAX 737 C and 919 Chinese Comac. They represent four years of production.

The sector remains the leading French exporter with 23.5 billion euros export. 77% of its consolidated turnover. Research investments represented 15% of turnover (38.5 billion euros). "They have never been higher. Innovation is the key to success, "said Jean-Paul Herteman. But some sectors are faring better than others. The turnover of the space industry is stable at 4 billion euros. The defense is uncertain.

As the United States and other European countries, France will reduce the budget for the armed. "The impact should be spread over time," commented Jean-Paul Herteman. He believes there is a strong consensus among political leaders of all stripes to preserve the defense industry and its dynamism.

In aerospace, Airbus, Safran, Zodiac and other businesses benefit from the good resilience of global traffic, which continues an upward trend. The low-cost airlines equip themselves. The American buying aircraft consume less fuel as the Airbus A 320neo guaranteed personal loan approval. "In business aviation, you feel a slight shudder," noted Jean-Paul Herteman.

Carbon tax: "Europe can not isolate"

Despite a promising outlook, the aviation industry has struggled to find the staff they need. It has certainly increased its workforce last year in France from 3.2% to 162,000 employees. They recruited 13,000 employees and 4500 apprentices trained, but she could hire more. SMEs do not attract young people. They suffer from a lack of awareness.

To change this, the sector can now train apprentices in a large group and one of its subcontractors. But this measure will not suffice. "There is a problem of supply and demand. The offer of Education Is at our request? I do not think so, "said Thierry Voiriot, chairman of Aero-SME Gifas.

Another difficult issue: the decision of Europe to impose since 1 January a carbon tax on airlines around the world. This has caused a tremendous outcry. China is threatening to freeze orders 55 Airbus (our editions of March 31). Anxious to avoid a trade war that would penalize the French aerospace industry, President Gifas regret that Europe has made this decision unilaterally. He called for a solution is found at the international level. "Europe can not isolate themselves," said Jean-Paul Herteman.

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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.

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.

The "Jasmine Revolution" made him one of his symbols in the Maghreb, but for the Tunisian Salafists, it is now down to the media. However, Nessma, the first Tunisian private channel present in the Maghreb and available via satellite to 90 million people, has every intention on Sunday, play an important role during the first free elections in Tunisia. The staff of the chain refines his election night and will also take the opportunity to offer its viewers a brand new news.A symbol for the general channel, leading audiences in Tunisia and one of the most watched in other countries such as Algeria, Morocco and Libya.

The purpose of the chain is to offer a model that does not really exist in the Arab world: a general close to French and Italian models, including M6, TF1 and Canale 5, that is to say, entirely financed by private funds. The channel aims to break the hegemony of the operators in the Gulf as al-Jazeera or Al Arabiya. Founded in 2008 by brothers Nabil Karoui and Ghazi, the Italian media group Mediaset and businessman Tarak Ben Ammar, she was baptized in a prescient Nessma (the breeze, in Arabic). She now wants to surf the huge popularity that she raised 30 December 2010.It was the first media to dare criticize the regime deben Ali, and to support the "revolution of Jasmin", before calling a return to calm the population payday loan lenders.

Dissemination of "Persepolis"

The elections are for Tunisian Nessma "the birth of a certain editorial line," young, free and modern. "Nessma belongs to everyone, says one of its shareholders, businessman Tarak Ben Ammar, to all those who look at those who make it, and finally to all the political forces that are TODAY 'Today, in the presence to elect the Constituent Assembly that will work with the Constitution of our country.As such, Nessma deal with all of the coalition, including Ennahba with the moderate Islamic party, if elected democratically and if, as he said, condemning the violence and fighting for the freedom of expression and the achievements of Tunisian women. "

But the chain Nessma is in the firing line of radical movements. Last week, the Salafists protested against the chain, burning cars of its leaders and the house of its chief executive, Nebil Karoui. At the root of this conflict is the dissemination of Persepolis, the film of Iranian director Marjane Satrapi. Although awarded at festivals in Cannes or Abu Dhabi as well that of Carthage, the film was exposed on all screens in the Arab world. But its distribution in the midst of Nessma election and Tunisian dialect, so accessible to as many people, set fire to the powder.

Baroin on a plateau of CNN, this is not Christine Lagarde interviewed in the "Daily Show" Jon Stewart. Former Economy Minister had marked the spirits with a beautiful demonstration of self-mockery, in a financial crisis, saying with a humor all English-speaking French position vis-à-vis the situation of banks. An effective way to get messages across the Atlantic, in a country that does not always share – far from it! – The same opinion as the Europeans.

His successor, however, has adopted this week at the annual meeting of the World Bank and IMF, a slightly different stature. Gravely, sheets strung, serious rigor.Interviewed Thursday by Maggie Lake in its program "Business 360", the French minister wanted to embody the application with which Europe treats the moment the debt crisis.

Translator to support – "it is just not to be mistaken on any word and bring down the stock market more than 5%!" Calls due to his entourage who wants to remove the rumor saying the angry with the Shakespeare's language – Baroin refuses to be intimidated by any questions. Not even when the presenter asked about "fear" about the situation of banks in Europe.That one, he was waiting for … "They have good corners," said the minister, the coup, speaks with a touch of nostalgia the three years he was an economic journalist on Europe 1.

"No way to leapfrog"

The next morning, it's the American columnists (those in the Washington Post, Financial Times, The New York Times or the Wall Street Journal and The Economist) that seeks to convince the "pragmatism" of the strategy adopted by Europe on July 21 to stem the debt crisis.Despite the G20 communiqué issued last night, the Minister did not want to see a winning mine – it must be said at the same time the new stock exchanges were pretty bad … – ensuring that there were still efforts to be done to reduce deficits and restore growth.

Main concern of American editorial writers: what is the market reaction if the European countries openly admitted a lack of Greece? "No way to leapfrog," once again hammered Baroin.As for the situation of the banks of the Old Continent, which also concerned the American press, it should be raised at the traditional "bankers' dinner," which brought together tonight finance ministers and heads of the major French financial institutions as part of an annual meeting …

After his three-day visit to Washington, the message of France is over. The cameras turn off, the books disappear, and finally relaxes Baroin joking with reporters … in English!

The salvation of the euro area could come from China. Forced to borrow at prohibitive rates Monday morning, Rome had in fact asked Beijing to make significant repurchases of its sovereign debt, reports the Financial Times. A member of the Italian government confirmed on Monday the existence of discussions with the Middle Kingdom on potential investments in Beijing in the third largest economy in the euro area. The latter emphasizes, however, that the purchase of debt as of the Italian state was not central to the negotiations which took place several weeks ago, the agency Bloomberg.

The Financial Times for its part indicated that Lou Jiwei, the chairman of China Investment Corp (CIC), accompanied by a delegation, arrived in Rome last week to meet with Finance Minister Giulio Tremonti, and officials the Cassa despositi e Prestiti.

Relief markets

In any case, the information had an immediate impact on equity markets and bonds. The news triggered a rapid rise of U.S. indexes, which ended the session up when they were, like all European markets, a sharp decline shortly before the information.L all the indices of world is indeed suspended at the least information related to the status of sovereign debt in the euro area. In fact, the fear of contagion shook the Greek market.

In addition, the bond market has also relaxed.Good news for countries forced to place their debt securities, especially Italy. Interest rates have soared Monday in an issuance of public debt in Italy. Rome has indeed placed a total of 11.5 billion euros of shares, including 7.5 billion of bonds a year at a rate of 4.153% against 2.959% in the previous similar exercise conducted on August 10.

Foreign exchange markets also reacted. The information has strengthened the euro, trading at 1.3678 dollar this morning.

China has pledged to support the euro area

The assumption of support from China bound for the euro area is particularly taken seriously by the markets as the Central Bank of China recently said it was ready to support countries in difficulty to repay their debt.

Moreover, China has already come to the rescue of countries in the euro area in difficulties in recent months.In late May, Beijing had expressed its intention to purchase debt securities issued by the European Stability for Portugal. In January, China had purchased European titles for bail Ireland. And from the beginning of the crisis, China had come to the aid of Europe's sick of his debts. Earlier this year, the country had bought the Spanish government bonds for a hundred million. The Middle Kingdom is also committed to acquire Greek bonds

By helping the EU now, China is diversifying its investments in debt securities. In addition, the country is gaining leeway in future negotiations.

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Canal + has crossed the Rubicon and wants to become a major player in free television in France. Thursday, the group led by Bertrand Meheut announced the takeover of Direct 8 Direct and Star, two DTT channels free of the Bolloré Group. Initially, Canal + buys 60% stake in the TV division of Bolloré Media and awards it operational control. In three years, he may redeem the remaining shares. The operation was buckled in 48 hours! "I know and appreciate for a long time the leaders of Vivendi, Jean-René Fourtou and Jean-Bernard Levy, and Bertrand Meheut, CEO of Canal +. I am very pleased to be associated with such a good team, "said Vincent Bollore, Bollore Group CEO.

Gone are the days when the giants were the audiovisual respect the Yalta on TV: TF1 and M6 to the largest piece of the free TV, Canal + in the world of pay-TV and its 11 million subscribers. In France, the two families have substantially the same size: just over 3 billion euros for free TV financed by advertising and about $ 4 billion to pay.

After struggling for years to ensure a near-monopoly on pay TV (up to buy its rival TPS), it will not take long to Bertrand Meheut to tumble into force on the television commercial. Now a subsidiary of Vivendi will have three frequencies of DTT: iTV, Direct 8 Direct and Star. Be as much as TF1 and M6 more than the group which, in addition to the namesake chain, has only W9.For Bertrand Meheut, this operation meets the logic of "creating strong audiovisual groups able to defend themselves both on the live broadcast on the non-linear over the Internet. This will increase the value of our programs will experience an exclusive first exhibition in pay and free TV in a second. And pay-TV business is our heart. "

465 million for Bolloré

If this sounds like a declaration of war groups TF1 and M6, the marginalized, at the same time, the few independent French media landscape, and BFMTV NRJ12. With the launch of DTT in 2005, the Higher Audiovisual Council wanted to bring new players in the PAF: Bolloré Group AB, NextRadioTV and NRJ Group. But since the first two have sold their frequencies. Claude Berda NT1 and TMC has given its ally TF1.Bolloré sells Direct 8 Direct and Star in Canal +. The two remaining independent are the big losers. For its part, Bolloré Media made a good deal. Since 2005 he has invested hundreds of millions of euros in Live 8 and 70 million euros for the acquisition of Direct Star. Five years later, it enhances its flagship TV to 465 million euros! The channel Direct 8, mini-general, would be about 350 to 400 million euros Faxless payday loans. Direct Star would be a hundred. "We have successfully completed the first phase by creating Direct 8 from scratch and placing it among the first of TNT. But for the second phase, which will see all the media groups to engage in significant competition on the content, we decided to partner with a large broadcasting group, "said Vincent Bolloré.The myth of an audiovisual largely open to competition turns into a clash between three private-TF1, M6 and Canal + – and a public group, France Televisions. With their financial firepower, the first three will fight a war without thank you for the acquisition of content.

Add to this a sharp competition for advertising. Canal + now has a board weighing 400 million. Bertrand Meheut is trying to calm things down by stating that "this partnership does not change the industrial landscape, since we are in the continuity of existing channels. We are small in this market for free TV. " He recalled that "TF1 and M6 are, conversely, present in the pay television."It is unclear whether this is enough to calm things down, because, at the same time, the president of Canal Plus says it does not want to "abandon its free channel Canal 20" under channel offset. In this case, Canal +, which exceeds the number of authorized frequencies (maximum seven), should sell two. "It will sell certain frequencies paying," he says. The chain may be referred planet, present on the DTT.

This comes on the eve of the presentation of the report of Michel Boyon, president of CSA, the future of DTT. It is now a fait accompli. The media landscape is recomposed without him. If Canal + bought Direct 8 Direct and Star, the future of DTT is widely drawn. The TF1 group is in a strong position to demand not only the transfer of its news channel LCI of DTT (where it is marginalized) to DTT.But Nonce Paolini, CEO of TF1, claim compensation as a string, which should be TV Breizh. For its part, the M6, if he will not be weakened, will support its claims. He also wants to transform its pay DTT channel Paris Première chain free. And he also wants compensatory chain among its two projects WikiTV M6 family.

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