International Headlines and Stories

After nine sessions of declines, with a final closing last fall, and early trading down 3% Friday morning, the Cac 40 rebounds. But last month, the benchmark index of the Paris stock exchange has lost 17%. Suffice to say that it takes up 2% at 14:30 will not be enough to regain the ground lost. This change in trend, however, marks a return of enthusiasm among investors, and this improvement is welcome as the context was sluggish in recent days.

The breath of fresh air came from the United States, where the release of employment figures for the month of July has created a pleasant surprise, and somewhat allayed doubts about growth.

The United States has in fact been a net creation of 117,000 jobs during the last month.a figure that is 38% higher than that which is law in the community of analysts who had forecast 85,000 new jobs created, at best.

With these hires more dynamic than expected, the U.S. unemployment rate ebbs. 0.1 points. But, however small it is, this figure is enough to pleasantly surprise the markets that relied on a stable unemployment rate in the U.S..

Other exchanges in Europe are more timid in the rebound

Other major European financial centers reduce their losses, but with more caution. To 15 hours, the Footsie-100 from the London Stock Exchange limit its losses to 0.2% to 5338 points (-2.58% against the opening).

However, the Dax 30 of the Frankfurt Stock Exchange is down quite markedly, falling 0.83% to 6361 points (-3.85% against the beginning of the meeting). The Brussels Bel 20 was down 1.08% to 2199 points (-3.61% against the opening).

Milan and Madrid, who were moving against the tide this morning, buoyed by market rumors suggesting an intervention by the ECB, their speed increases. In Italy, the MIB FTSE gains 1.66% at 17,160 points while the Spanish Ibex rose 2.09% to 1868 points.

The trade deficit of France back in June

Other macroeconomic news: the trade deficit of France. He was greatly reduced in June to 5.598 billion euros, after 6.415 billion in May, according to data released Friday by Customs.

On the podium of the largest declines the CAC 40, Unibail-Rodamco lost 4.49% to 137.3 euros, Technip loose 2.55% to 62.95 euros and Lafarge drops 2.35% to 30.995 euros.

Natixis: 8.46% to 3.012 euros

Natixis on Thursday posted a net profit above expectations in the second quarter thanks to a sharp increase in the contribution of results from regional banks of its parent BPCE (People's Bank – Savings Bank).

Dexia: -2.9% to 1.608 euros

Dexia announced the heaviest loss in its history, a performance due to both the sale of a portfolio of toxic assets – centerpiece of its restructuring plan – and its contribution to the aid plan on sovereign debt Greek.

Carrefour: 1.21% to 18.79 euros

Carrefour announced a new reorganization of its management, including replacing its chief financial officer, when the group just straightening operations in France and suffered a major strategic setback in Brazil.

LVMH: 1.74% to 117.20 euros

LVMH said Thursday it had received approval from Consob, the Italian stock market authority, for offering Italian jeweler Bulgari on which he announced the takeover in March.

Vicat: 0.41% to 46.99 euros

Vicat said Thursday expect a slight reduction of its operating margin in 2011 due to the revolution in Egypt, rising energy costs and start-up costs of factories in India.

Today, Genevieve Lethu almost a pioneer. It's been almost ten years since the specialist tableware decided to repatriate most of its production in France. The group did not wait for the rising costs of transportation and wage inflation that affects a part of Asia to relocate its production in France and Europe. While 40% are still manufactured in Southeast Asia in 2002, this proportion has now dropped to 9%. Aim of the operation to improve the quality of its products.

According to Edmond Kassapian CEO Genevieve Lethu and origin of this strategy, the manufacturing conditions in emerging markets were no longer satisfactory. "We see a lot of flaws too: for example, the colors were sometimes not good.Moreover, China does not always meet the hygiene standards required by the manufacture of kitchen utensils, "said he. Three or four people were paid full-time, just for the after sales service. Manufacturing defects that the company, positioned on a medium-high-end, could not pass up. With a significant portion of its customers for export, being a French brand was not selling enough. "Our customers are demanding products made in France, not South-East Asia," said Edmond Kassapian.

Especially these failures were added to other problems. "Our own suppliers copied our collections to sell at lower prices," recalls the CEO. Occur in Asia also means longer production lead times, which complicate inventory management.In addition to transport by ship, which takes about two months, the status of "world factory" in China in some areas it is a work organization to lean. In this context, start or restart a production cycle requires a waiting period of up to six to eight months.

Model difficult to transpose

By bringing back most of its production in France, Geveniève Lethu won as responsiveness and quality. But this shedding was not built without problems. "Finding plants in France and Europe that can ensure our production has not been an easy task. Invest in tools, machinery was necessary. The repatriation was ultimately effective only from 2004-2005, "said Edmond Kassapian.Despite the cost of transportation and the "huge mess" deplored by the specialist tableware of its products made in China, produced in France is generally two to three times more expensive.

Why the model Genevieve Lethu is not easily transferable. "Some activities simply can not be relocated. Products requiring significant labor to manufacture or those who stand out from the competition will cost products in Asian countries. Our relocation was only possible because we are positioning ourselves in the middle and high end because the argument made in France for us was a selling point, "Edmond analysis Kassapian.

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Europe is gaining time, but did not extinguish the fire in Greece. Following a conference call Saturday, finance ministers of the euro area have given the green light to release "by July 15" 8.7 billion euros in loans that should add 3.3 billion paid out by the International Monetary Fund (IMF). This decision was expected after the adoption this week by the Greek Parliament of the austerity program imposed by his European creditors. "It (the decision) strengthens the international credibility of Greece", immediately congratulated the Greek finance minister, Evangelos Venizelos.

As the new Executive Director of the IMF, Christine Lagarde, to take office Tuesday, the organization welcomed the developments."We welcome the commitment of the Eurogroup to a funding strategy that ensures that the Greek economic program is fully insured," said the spokesman for the IMF, Caroline Atkinson. No details however were given about a possible date on which the Board could meet to release the funds.

Berlin puts pressure

If these 12 billion euros to Greece should avoid going bankrupt in the short term, it is not enough to save the country permanently and fully reassure the financial markets. For this, the country has called for a second bailout International 110 billion euros. Finance ministers of the euro zone have promised yesterday decisions "in the coming weeks." For its part, the German finance minister, Wolfgang Schäuble, more prudent, spoke of an agreement by the fall only.Berlin looks indeed to be certain that Greece implement austerity measures quickly that the country has promised. "After the release of the fifth installment of the countries of the euro area and the IMF, the next step must be addressed decisively: the measures passed in Athens should be implemented quickly. Privatization, for example, must be launched without delay, "responded the German Minister of Finance. Response of Athens: the austerity plan of 28.4 billion euros will be implemented before mid-September.

Ireland, Portugal, Italy and Spain could knock on the door

These two months of rest should also help to advance on a second rescue plan 110 billion euros. Finance ministers of the euro area have not spoken on this subject last night.They expect to clarify the private sector, banks and other creditors, imposed by Berlin to a new plan to help decide. "The details and extent of the involvement of private and official sources of additional funding will be determined in the coming weeks," they said.

Time is running out: Ireland and Portugal may need a new international aid. As for Spain and Italy, both countries are under pressure from rating agencies. "The failure of European political leaders to resolve the crisis quickly and decisively hits the rest of the euro area," says Ben May, economist at Capital Economics. The United States pressed more in Europe to solve its debt problems to avoid a global impact."If Greece fell deeper into recession following the new austerity measures, it could reduce the willingness of governments to implement additional fiscal measures," says Ben May.

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The Greek government will appeal to the people. Prime Minister George Papandreou said in Parliament on Sunday "in the fall, we will go to a referendum on the main reforms in this country." The Socialist attempts to obtain the agreement of members on the composition of his new government and its austerity plan over five years of 28 billion euros needed for a new international aid.

These reforms are challenged in the street and into the ranks of the narrow government majority (155 seats out of 300). This is to appease the critics that Papandreou had to reshuffle his team Friday, so it presents to Parliament on Sunday. "I applied for a renewal of confidence in the government because the country is at a crucial point," he said.We need to find "a national agreement to deal with deficits and debt are a Greek national problem," he added. The vote of confidence will take place Tuesday night.

The Prime Minister is attempting to rally right-wing opposition to his austerity plan. The latter, who had hidden some of the deficits of the country before the crisis in 2009, refuses to give carte blanche. Its leader, Antonis Samaras, reiterated that his party "did not give a vote of confidence in the government as socialist Papandreou insists on a policy that does not solve problems but makes them worse."

Division concerned

European leaders are concerned about this division. Merkel supported George Papandreou Friday: "He is fighting for Greece meets its commitments, we support it.(…) It is hoped that the opposition supports the Greek government. "

Finance ministers of the euro zone meet in Eurogroup on Sunday night and Monday special meeting. They must agree on the payment of the new tranche of aid provided under the 110 billion euros of loans in spring 2010 in Greece. A budget that would allow the country to spend the summer. In addition, Europeans must also agree on a new aid plan, the sum is not yet defined. The negotiations come up against particularly on the modalities of participation of banks in the effort.

Do not expect an agreement by Monday morning, however, said the rpésident of the Eurogroup, the Luxembourg Jean-Claude Juncker. The European Commission had yet spoken this week of an agreement expected by Sunday evening.French President Nicolas Sarkozy and German Chancellor Angela Merkel had said Friday on their side need to "act quickly" on the Greek case. "We'll talk tonight about the involvement of private creditors, the question is how far it can and must go," said Jean-Claude Juncker.

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Christian Noyer confirmed and signed. Any restructuring of the debt would be treated as a failure on the part of Greece is absolutely unacceptable. Because it would then "get ready to fully finance the Greek economy", stressed on Tuesday the governor of the Bank of France, who presented to the press his 2010 annual report.

It is the "horror scenario" that he had already detailed there are just three weeks. On the one hand, Greek banks are primarily affected by a rescheduling of the debt that they are the largest holders, and they could then refinance with more of the ECB.And secondly, the Athens government would certainly lean its financial charges, but since it currently has a primary deficit (excluding payment of the debt burden) of about 5% of GDP, could no longer borrow and wheat would be unable to finance its current spending, including salaries.

"If a solution can be found that avoids the risk of default, it seems appropriate," said the governor added, however, without specifying what he himself described as "acceptable business solution paperless payday loans." For his part, Jean-Claude Trichet, ECB president, said Monday that "the debt restructuring should be voluntary (from creditors). In this case is avoided because a "credit event" and "default." This solution was implemented in 2009 in favor of Hungary, under the IMF.But, as recalled an institutional manager, "was technically easy because it was bank loans held by half a dozen operators, while for Greece hundreds of investors are concerned."

"Our only concern is the financing of the Greek economy. You can add a second concern is the risk of contagion, "says Christian Noyer, referring implicitly to the earthquake in September 2008 had triggered the bankruptcy of Lehman Brothers. "But this has nothing to do with our own balance sheet (the ECB has purchased a fifty billion of debt securities Greek, Ed) nor with that of European banks who are perfectly capable of handling all the scenarios that could present, "insisted the gouverneur.f

Not yet a candidate, Christine Lagarde was already the favorite to succeed Dominique Strauss-Kahn to IMF management, but two rivals have already expressed. Mexico will formally nominate Agustin Carstens, Governor of the Mexican central bank, said Sunday the Minister of Finance of Mexico. He "has the capabilities and qualifications to lead an institution of the importance of the International Monetary Fund," he said. Governor of the Bank of Mexico since January 2010, Agustin Carstens has been deputy director general of the IMF from 2003 to 2006.

Moreover, the Belgian Finance Minister, in office since 1999, Didier Reynders, said Sunday also be "of course" interested in the job. "These are functions that do not refuse," he added. But Europeans seem more a united front around the candidacy of the French Minister of Finance.This weekend, his candidacy has received the support of Germany and the United Kingdom. The Congo would also like to see take the job.

In France, Martine Aubry said yesterday that the appointment of Christine Lagarde at the head of the IMF "would be a very good thing for our country and for Europe." However, Francois Bayrou is against, saying "do not approve economic policy which was followed by France" and lamenting that "Ms. Lagarde was the main actor of the case Tapie.

In a joint statement, Australia and South Africa have called Sunday a nomination on merit, not nationality.A position shared by the representative of Switzerland to the IMF.

After the resignation of IMF Managing Director, accused of attempted rape by the American courts, nominations for his successor will be officially opened on Monday, and until June 10

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France and Ivory Coast are the two favored destinations of Africans who emigrate. The former colonial power in its home soil 2.754 million while the world's largest producer of cocoa welcomes 2.448 million. World Bank figures cited in the introduction of a groundbreaking study aimed to "increase the impact (economic) migration to Africa." This is a reminder that all Africans will live outside their country of origin does not necessarily leave the continent."Two thirds of migrants from sub-Saharan Africa, especially the poorest, will relocate to other parts of the continent, while in the case of North Africa 90% have gone overseas," notes the report .

As Côte d'Ivoire has positioned itself as the main attraction is obviously surprising: the High Commissioner for Refugees (UNHCR) has noted that over 150,000 Ivorians have fled to Liberia in recent weeks . But the fact is that since the time of French colonization, the country has continued to attract labor nearby. At that point in the 1970s, President Houphouet-Boigny had to launch the concept of ivoirité to reassure citizens worried about the influx of foreigners.

The ebb and flow demographic facing Côte d'Ivoire illustrate the ambivalence of inter-African migration.Although they mainly follow economic motivations for richer countries like Nigeria and South Africa. But sometimes they are "forced migration". UNHCR now counts 2.2 million refugees who have fled as a result of wars or natural disasters, not counting the 6.5 million people displaced within their own country.

Brain drain reaches alarming levels

It can not therefore underestimate the negative impact of migration on neglected regions. The chief economist of the World Bank for Africa, Shantayanan Devarajan, admits that "human capital flight" penalize "the small countries and low income" and "fragile countries emerging from conflict . More general phenomenon, the brain drain, brain drain, is reaching alarming proportions.The Bank notes that a graduate in eight African higher education living in OECD countries. It is a scourge in Ghana: 37.1% of physicians trained in its schools and 55.9% of practitioners were born on the land are working abroad. In total, 11% of nurses and 18% of doctors educated in the south of the Sahara are working in other lands, resulting in a shortage of medical personnel even more pronounced than the country's poor.

Despite these caveats, experts from the World Bank believe that "Africans living abroad are a vital resource." The main channel, it is the remittances, the remittances, as the English word, that expatriates send regularly to their families back in the motherland. This vector is now more important than official development assistance.He pumped $ 39.7 billion in 2010, with 21.5 billion for North Africa and 18.2 for sub-Saharan regions. These funds are also less volatile than foreign direct investment, which fell in 2009 with the crisis.

Introduce dual citizenship for their emigrants

It is possible to increase the impact of these funds that are within families across national borders, said Dilip Ratha, senior economist with the Bank on matters of migration. "Some countries, like Mexico and Turkey, have tried to direct their capital for collective investment, but it did not work. We must preserve their privacy, as is a personal decision to emigrate, "the former judge of Crédit Agricole Indosuez economist of Indian origin.He suggested, however, to tackle the endemic problem of transaction costs, totally excessive (you must pay $ 20 for sending $ 200). The solution would be to play the network of posts and mobile phone companies.

Beyond remittances, Dilip Ratha advocates to mobilize the entire savings of diasporas, which he estimated at $ 30.4 billion annually to sub-Saharan countries. The idea would be to issue savings bonds, similar to what Israel and India have long been, and that Greece seeks to establish with its own diaspora.These securities, issued off-market rates, for ratings from 100 to 10,000 dollars would be used to "finance infrastructure projects and health education."

Last but not least, Dilip Ratha urges African States to introduce dual citizenship for their emigrants (only accept 20 of 54) to strengthen their links with foreign communities. He had no doubt that these diasporas have a great future in view of demographic developments. By 2050, the population of working age will decline by 88 million in Western Europe, where sub-Saharan Africa will have increased his $ 699 million!

In the wake of a meeting of the rise in Japan, the Paris Bourse is expected to begin sitting in the green, the indices futures settling up 0.8% at 8 o'clock this Friday. INSEE and Bercy have improved their outlook for the French economy.

The National Institute of Statistics noted yesterday its growth forecast for the Hexagon in the first quarter. INSEE now expects a GDP increase of 0.6% over the period, and maintained its growth forecast of 0.4% for the second quarter. More good news: the Minister of Economy said Thursday night that the forecast deficit of France for 2011 is reduced to 5.7% of GDP as against 6% previously."We had committed to 6% for the year 2011 and I will announce tomorrow that the European partners have recalibrated our goal to 5.7%," she said on the eve of a meeting Budapest with its European counterparts.

On the agenda this Friday, no statistics likely to influence the market. In France, investors will monitor oil prices and imported raw materials and the economic survey of the Banque de France and the fiscal situation and the German trade surplus.

Soaring commodities should reverse the influence indices. Gold has exceeded its record to over 1,500 dollars an ounce. The money has reached its highest level for 31 years.A bushel of corn (about 25 kg) for May delivery rose 7.72 dollars, not seen.

Renault followed

In terms of values, oil and banking stocks are once again under the spotlight.

Moreover, as Renault should be monitored. The three executives wrongfully dismissed in the fake spy scandal Renault claim to the manufacturer for damages for pain and suffering record: 2.4 to 3.5 million euros, according to a survey by Marianne forthcoming tomorrow. In total, the invoice of the burr Renault could rise to over 11 million.

Several unions Carrefour have called a strike tomorrow, says Les Echos. The FO-FGTA whose representation rate exceeds 40% was followed by the CFDT, CGT and CGC.

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It's a comeback for Arkema. The first French chemist announces annual results on Wednesday well above market expectations. In 2010, the group posted a net profit of 347 million euros, compared with 172 million loss he suffered in 2009. Analysts on average expected a profit of 322 million euros. This performance brought the band to its pre-crisis.

Revenues also jump from 32.9% to 5.905 billion euros, 5.862 billion higher than the consensus. They were drawn in particular by strong growth in demand in Asia, where the group now generates over 18% of its sales. In industrial chemistry, which represents more than half of its sales, Arkema said to be highly successful in increasing its prices more than offsetting the costs of raw materials.

The gross operating surplus (EBITDA) amounted to 790 million euros against 310 million a year in 2009, giving a margin of 13.4% up 6.4 points, after reducing its costs. Also significant: Arkema has reduced its debt to a record low of 94 million euros at end 2010, without taking into account the proposed acquisition of the resin coating that Total should be done in mid- 2011 for a value of approximately $ 550 million.

Boost investment

On this basis, the group's forecasts could be optimistic.Arkema was "fully in line" with its 2015 targets presented in November: an EBITDA of over one billion euros and a turnover of approximately 7.5 billion, supported by innovation, the rapid growth of emerging and targeted acquisitions.

For the first quarter 2011, EBITDA "should significantly exceed that of the first quarter of 2010, which was 137 million euros. In addition, the group will increase its current investment program which should be around 360 million euros, against 293 million in 2010.

Exchange side, Arkema proposes a dividend of 1 euro against 0.60% in 2009.

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Copper back

Since the violence began in Libya, attention is focused on soaring oil which rattled equity markets. But the riots that shook the country Gaddafi also have visible consequences on other raw materials. Starting with the base metals. On the London Metal Exchange (LME), traders were massively diverted from these values that are at risk because very context-dependent economy. The possible spillover of tensions in the Middle East has again raised fears the worst for global economic recovery.

Result: the price of all metals have recorded huge declines. The copper market barometer, was particularly affected him since the end of 2010 which connects the records. The crisis in Libya has put a serious brake on the rise.On Tuesday alone, as violence soars the price of a barrel of crude over $ 7 in New York, copper prices tumbled nearly 4%. The red metal hit Thursday its lowest level since Jan. 26, at 9311 dollars per tonne. He lost nearly 2% in five days.

In his fall, he drives the nickel lost 4.5% on the week to finish at 27,710 dollars per tonne. Lead is 2495 dollars, dropped 4.6%. Aluminum has fared better: he loses "only" 1.15% and ended at 2558 dollars.

The situation shows no signs of improvements in Libya, the return of investors in this market should take some time. But China, whose imports are very important, could bring them back. Moreover, many traders were waiting for the decline of certain metals such as copper, before repositioning.The bargain-hunting could be quickly put together courses.

Gold, victorious

Risk aversion is, however, the happiness of safe haven. Gold, the most emblematic of them, is a perfect example. The yellow metal climbed back above Monday to $ 1,400 an ounce, the highest since Jan. 4 last. On Thursday, the yellow metal has even brushed his absolute record (1,431.25 dollars) to 1418.20 dollars. Gold has slowed the pace this weekend so that the lull was back on the oil markets and equity markets. It closed the week at 1402.50 dollars. The sequence of events should be interesting to follow because gold is correlated to oil fast payday loans.

In the wake of gold, silver is also mounted, touching 34.31 dollars per ounce on Tuesday, a level not seen since March 1980. Like gold, it cut its earnings over the weekend to finish at 32.54 dollars.

In the market for precious metals, platinum, however, are the red lanterns for their industrial applications. As base metals, they were penalized by fears of an economic slowdown. Tuesday, while the price of crude hit record highs, the price of platinum has plunged 70 dollars and that of palladium over $ 60. The international context was also been added in China, explaining his fears of slowing auto market. On the London Platinum and Palladium Market, an ounce of platinum finished Friday net decrease to 1791 dollars an ounce and palladium ended at $ 785.

Sugar falls further up the coffee

As for food, the week was marked by the continued decline in sugar prices.Investors noted that production volumes in Brazil and India could increase with the expansion of crop areas. In Brazil, the world's largest producer, output is forecast to increase by 5% to 35.2 million metric tons for the year 2011-2012. In India, production will jump 24% to 25.5 million. Result: New York, a tonne of white sugar for May delivery dropped to 27.64 cents while in London, it reached 699.50 pounds. Please note that hedge funds contribute to the overall decline. They have reduced their exposure long (buy position) of 7% in the second week of February.

In contrast, cocoa prices, affected by the Ivorian crisis, have hit their highest level in 32 years to 3666 dollars per ton in New York.

Their sides, coffee prices have been driven by renewed investor interest in hedge.In New York arabica climbed Tuesday to 278.40 cents a pound (not seen since late May 1977) and the same day, a tonne of Robusta reached in London in 2417 dollars (highest level since mid- March 2008).

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