A little paradise, and it likes to describe Mauritius. It is true that between its climate, turquoise blue lagoons and white sandy beaches, this state of the Indian Ocean is not without assets. Qualities that appeal to the French, the latter also attracted a lively French-speaking and low time difference (2 or 3 hours), representing one third of a million annual visitors to the island. Wealthy retirees enjoy, in turn, to reside in a country with attractive tax: no wealth tax, no inheritance tax, flat tax on income of 15% …
Yet in times of crisis, these arguments are not enough in attracting investors in local real estate projects. So far, a number of programs involved imposing villas sold between 1 and 2 million, but now struggling to find buyers.This is the only marina project on the island, a must for lovers of water sports. There are also a shopping center, a wellness area and large villas whose prices exceed $ 2.5 million and apartments more affordable, starting at $ 800,000.
The coming months will determine whether those efforts are paying off Mauritius with senior French.
A specific legal framework
In Mauritius, the real estate purchases by foreigners are governed by three tax schemes .- The IRS (Integrated Resort Scheme) for the freehold property of a minimum of 500.000dollars. It immediately gives purchasers the right to a permanent residence permit. They are free to then perform the steps to take up residence on site tax .- The RES (Real Estate Scheme) has, in turn, subject to any minimum price.
European markets opened down on Friday. The CAC 40 lost 0.83% to 2985.19 and points in early trade. London also yield 0.81% to 5,379.08 points and Frankfurt 0.84% to 5800.79 points. Despite a week marked by political developments in Italy and Greece, the risk of contagion from the debt crisis strongly disturb the markets. Yesterday, France and Spain have made bond in high yields. Rates in Spain reached 6.975% of never-seen since the creation of the euro and a further step towards the 7% threshold considered dangerous. In the process, Wall Street closed lower and Asia was plunged into the red today.
In Italy, the new Chairman Mario Monti has presented its program focused on "fiscal discipline", "growth" and "equity.""The future of the euro will also depend on what will Italy in the coming weeks," he said. "Europe is experiencing its most difficult years of the postwar period. (…) The European project could not survive a possible collapse of the monetary union. "
The euro rose slightly against the dollar
On the foreign exchange market, the euro rose slightly against the dollar the slope after reaching a low of five months yesterday at 1.3421 dollar. It evolves around 1.3479 this morning but the dollar traders believe that the downtrend remains intact.
On the macroeconomic front, investors will be watching today the publication of the indices of orders received value in the industry for the month of September, published by INSEE at noon.
Air France-KLM is one of the biggest disappointments of this year the stock market. Title drop 59% since January 1. The strike, which lost, according to our calculations, about 10 million per day to the company, is only one element in a more negative balance very dark.
"There is no question that I invest in this action. There is no visibility. They mastered neither the personnel nor the cost of oil prices. They face strong competition from other companies, "said one portfolio manager bad credit payday advance. This opinion, indeed radical, summarizes the weariness of many managers who do not want to invest in Air France KLM.
The numbers speak for themselves. Market capitalization is more than 1.67 billion euros, less than 7% of annual sales and less than 25% of equity. The group is in any case weighed down by a net debt of 6 billion euros.
The UMP deputies know that the growth forecast (1.75%) on which the draft budget for 2012 is revised downwards, and a new train of savings 5-7000000000 necessary, in addition to 11 billion already planned for next year. "The 2012 budget is credible, but it can be denied by a significant slowdown in growth," Analysis Louis Giscard d'Estaing. The Vice-Chairman of the Finance Committee of the Assembly recalls that "the time of the government of Lionel Jospin, it was the logic of the cicada, while in Germany Gerhard Schröder had imposed a cure without reduction of wage restraint working time, in line with the ant. But the wind is coming … "says the deputy of Puy de Dome, paraphrasing the fable of La Fontaine.Vice President of the National Assembly warned the Socialists: "Those who would maintain the idea that there is room for maneuver in the reuse of public spending, as does Francois Hollande, would directly threaten the notation France and our ability to deleverage. "
However, Louis Giscard d'Estaing is convinced that there is still food for thought in the financing of 35 hours. He will file an amendment in the bill funding the Social Security (PLFSS) for further reduce the limit on exemptions from employer contributions on wages at 1.5 times the minimum wage (currently against 1.6). Which would represent just over one billion euros in savings, if the measure comes into force on 1 January. He even suggested to lower the ceiling to 1.4 times the minimum wage in July 2012 to "give companies time to adjust."The UMP also suggests to "a general movement of the plane of the allocations to the operators of the state" by reducing them to 3% in 2012 payday advance lenders.
"Do not replace two staff on three"
In this area, Hervé Mariton (UMP, Drôme) also proposes to "ease the regulations that impact cost." Other proposals of the Liberal "not to replace two of three officials" and "examining investments less profitable," particularly in the area of infrastructure. "Do not panic about short-term savings. We will be judged on the strength and seriousness of a savings plan in the long term, "said Mariton. Special Rapporteur of the mission work jobs, Chantal Brunel (UMP, Seine-et-Marne) will propose to leave the tax deduction on home jobs "all leisure activities and relaxation."Isabelle Vasseur (UMP, Aisne), Rapporteur of the Finance Committee on Social Security Financing Bill, will propose this afternoon the establishment of "prevention, source of major savings in health" she assures.
The former chairman of the Senate Finance Committee Jean Arthuis think we need to "reduce the amount of grants to local authorities" and "to lower executive compensation operators of the state." Former budget minister, Dominique Bussereau is more cautious: "We are still on the bone. The revision of public policies (RGPP) was very effective, so that the state is under-Box at the local level, "says he.
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The applications are increasing in the resumption of Swiss France Telecom. In any case, think they know what the Echoes, which announced Friday the opening match of Xavier Niel in the race for the resumption of the Helvetic subsidiary of the French operator. According to the newspaper, the co-buyer of the World with Pierre Bergé and Matthew Pigasse, have filed an application for the acquisition of the asset, the group wants to get rid Stéphane Richard since late July. Announced during half-year results, this operation should yield between 1.5 and 2 billion euros to France Telecom. Or so hopes in the group.
Despite the difficult conditions of funding and the increased reluctance of banks, the French operator has not given up the sale. The facts seem to prove him right, a dozen candidates who have passed the process of selling the asset.But the arrival of Xavier Niel somewhat diversified profile of potential buyers. So far, the majority of applications related investment funds: Apax, Providence, EQT, Bain Capital, Liberty Global, Doughty Hanson and Carlyle separately and Altice, Numéricable shareholders.
Support of Goldman Sachs
Xavier Niel, the head of the Iliad, the 297th ranked Fortune Global Forbes, meanwhile intervene personally. The Egyptian billionaire Naguib Sawiris politician, former CEO of the operator Orascom is also in the race. Faced with these heavyweights of finance, the French entrepreneur has joined forces with the U.S. bank Goldman Sachs, report echoes.
"At 2 billion Swiss francs (1.6 billion euros, Ed), Orange Switzerland is valued six times its gross operating profit on the stock exchange more than 3.8 times that of France Telecom," the daily explains.A premium is explained by the fact that the sale of Orange Switzerland is the only major operation in progress on the Old Continent now, and that France Telecom has commissioned ahead of banks, including Credit Suisse, HSBC, JP Morgan, to prepare a financing plan ahead in order to facilitate the implementation of the operation.
At the second round of bidding, all filings seem to hold the interest of the French operator, since no application has yet been ruled out.
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The new windfall tax on high incomes that night passed in the Assembly she will enhance the effectiveness of tax? In fact, the interplay of tax loopholes and the architecture of the tax still allows the wealthy to cancel their taxes. According to "the latest data, covering the tax paid this year as revenue in 2010," cited by Les Echos, nearly 5,000 high earners have completely cleared their taxes this year.
Thus, 4800 households taxed at the last tax bracket of 41% and thus have a taxable income of more than 70,830 euros have erased their income tax by the interplay of tax loopholes. 6497 they were last year.Meanwhile, more than 9,000 tax households have reduced their tax between 70% and 100%, according to the report on the 2012 budget Gilles Carrez quoted as saying.
In addition, the report finds that the member tax is proportionally lower in high-tax scale. Thus, households last year at the head of a benchmark tax income of more than 500,000 euros per share had a tax rate of 26% against 28.5% for those earning over 250,000 euros per unit cash advances pay day loan. The explanation is simple: the wealthy derive most of their income from capital is taxed less than income from wages.
The new tax on high incomes should correct these inequities. The tax households reporting between 250,000 and 500,000 euros will pay a tax of 3% and those reporting more than 500,000 of 4%.
But the very high income should continue to be taxed proportionately less.Liliane Bettencourt spends less than 15% of its income for tax purposes against nearly 30% on average for a living part of his work, recently castigated the PS deputy Pierre-Alain Mute. And on the other side of the Atlantic, Warren Buffett has built his own case as a symbol. The latter is crusading for the adoption of a tax on high incomes in the U.S. revealed to have paid $ 6.9 million in taxes, a rate of 17.4% of its taxable income.
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Nicolas Sarkozy and Angela Merkel were to Sunday on the table all matters relating to the crisis in the euro area: Greece, Financial Stability Fund, recapitalization of banks … But rather than concrete decisions or announcements spectacular, the two leaders particularly wanted to mark the kick off of a hectic schedule that will take them to the Cannes G20 3rd and 4th November. "Europe will have solved all its problems," before that date, have hammered the President and Chancellor.
The next step should come from Brussels. The European Commission said Friday that it would present "in the days to come" proposals for a coordinated recapitalization, which should help to reassure markets worried about the resilience of the European banking system to the crisis. It could soon make its findings on Monday.The European Banking Supervisors (EBA) should also provide estimates of the impact of a sharp depreciation of the Greek debt on bank balance sheets.
With these data in the hands of the leaders arrive for summit of the European Union and the euro area provided 17 and 18 October in Brussels. They will then give a "clear signal" on the subject, said Angela Merkel. The idea is to display a "consensus" on the amount and schedule for building banks' capital. For we must recognize that, as regards the amounts, blur still dominates: the figure of 100 billion to inject capital is the most commonly cited, which is much less than 200 billion euros mentioned a few days ago even by the IMF free business cards.
The next step in the operational implementation of the European financial stability should have been ratified by all parliaments by mid-October: Malta decides before Monday Slovakia on Tuesday. Aid to Greece will be released.
"Acting quickly"
Throughout this long process, Europe should remain under pressure. In recent days, Obama has returned several times to the load on the resolution is too slow for his liking of the crisis in the eurozone. European leaders must "act quickly," pleaded the U.S. president, hoping that a "very concrete plan of action" would be presented.He believes that the crisis in Europe could have a "very real" in the United States.
For her part, Angela Merkel last week has dampened hopes for a reform of the international monetary system from the G20, saying the work on this subject will not be completed. But the Cannes summit will probably be enough to do with the subject of the European crisis.
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The euro fell more than 7% over the month against the dollar. The European currency has just gone below the $ 1.33. This violent collapse is due to the political and financial unrest affecting the euro area. There is now a consensus among strategists providing a further correction. "The state of the market reflects the near certainty that Jean-Claude Trichet is expected to cut rates before the end of its mandate" in late October, said John Kicklighter, strategist at DailyFX, a subsidiary of the giant FXCM currency. "It could be that the repurchase of government bonds continues. If these scenarios are realized, this would be very bearish for the euro. "
The bell sound is little more optimistic in. The experts of the French subsidiary of the Danish bank focused their attention on the delays of politicians."Speeches are encouraging to reassure the markets a while but in the absence of concrete solutions, the downward trend should continue," they said in a note sent to clients. The same applies to the specialists of the broker, "no concrete steps have been taken and so it has not been made, the euro will continue to r suffered."
Repatriation of capital in dollars
With the strong underperformance of European markets, investors, especially American, have reduced the share of assets invested in European equities. The repatriation of capital cause lift the dollar against the euro.
The downward spiral is likely to continue in the fourth quarter. Earlier this year, Saxo Bank had made a bet of one euro to 1.15 dollar. This goal seemed absurd end of April (the euro now approaching $ 1.5) no longer is.In any case, the euro could be worth between 1.20 and $ 1.25 at the end of the year. In this zone, the euro would only return to its value in purchasing power parity further point out the experts. Some exporting companies that have had the good sense not to cover may already be rubbing their hands. This is the case in particular that benefits both an aircraft carrier cycle and a decline of the euro against the dollar.
It seems that the era of the strong euro against the dollar is behind us. For individuals, it is possible to speculate down on the euro-dollar by selling the currency pair in cash in a currency broker. It may also be wise to buy put options or put options due in March (for example). This strategy can multiply its earnings but does concern a limited part of a portfolio.The current movement is also favorable to purchases of dollar assets (U.S. real estate, stocks on Wall Street …).
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Greece:
In the aftermath of yet another meeting "for nothing" between the finance ministers of the euro area, said Baroin continue to trust in Greece. And, while 68% of the French disapprove of the increase in French contribution to the rescue of Greece, according to a poll Ifop. "Greece knows what she has to us, insists Baroin, invited the Grand Rendez-vous Europe 1-i> Tele-Le Parisien. We have said it, she has commitments, duties vis-à-vis its creditors, it has the requirement to provide answers. "
While Europe still can not agree to release the 158 billion pledged to Greece on July 21, Baroin announced that the European Stability Fund would be active in mid-October . "The agreement of July 21, expands the interventions of European fund, says he. It enables him to act in advance.This tool is good, just it is not yet implemented. We need the European Parliaments vote, and all Parliaments have given a date. " For him, this fund is not intended to please the Greeks but to save the euro.
Banks:
Former colleagues in government Fillon and Christine Lagarde Baroin do not seem to take the same position on the banks, now that the former Minister of Economy and Finance has been leading the International Monetary Fund. Three weeks ago, Christine Lagarde, sounded the alarm and called for "urgent recapitalization" of banks.
Europe 1, Baroin, sought reassurance, noting that "central banks assured liquidity to ensure any problems.This means that the question 'Are there any cash flow problems?', The answer is no and the question 'Is there a solvency problem?', The answer is no. We are not worried. " And to the question: 'Should we recapitalize European banks? "The finance minister said," They already recapitalize since 2008. They increased their capital by 50 billion euros, "said he.
Growth:
While the European Commission Thursday lowered its forecast for French growth to 1.6% in 2011, Baroin assured that the growth target of 1.75% this year was achievable. "We were on a line at 2%. It was fixed at 1.75% and we have reasonable grounds for regarding it's achievable. There will not exceed one euro in terms of deficit compared to what we have taken as a commitment. "
Budget 2012:
"Demanding".That's how Baroin defined the 2012 budget to be presented Sept. 28. While the opposition calls for a recovery plan, the finance minister was adamant. "I am convinced that a recovery would have an adverse effect in the current financial situation. In a long-term strategy, which should take us in 2013 to 3% deficit, we can not afford us the luxury to satisfy such demand, such as department or lobby, "he said.
Economic project of the Socialist Party:
Finally, the finance minister has been very critical of the socialist project. "The project of the Socialist Party fell.They need to throw in the trash, they must forget their plan to create jobs and increase public more than 50 billion taxes, "he said, saying the government side," It is not about one second of a general increase in taxes. "
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Time to pay the bill has come. The Federal Housing Finance (FHFA) has filed Friday in New York a complaint for fraud against the banks it considers responsible for the subprime crisis. In the end, it is not twelve, as originally announced by the New York Times, but seventeen institutions (ten U.S. and seven foreign) that are affected by this complaint. Among them, the French bank Societe Generale.
Nearly $ 200 billion of securities
The FHFA criticizes all of these institutions have sold financial products backed by mortgages on the two parastatals of mortgages Fannie Mae and Freddie Mac, between 2005 and 2008. At the time, the banks had facilitated access to loans of U.S. households to recruit new customers and sell homes often too expensive betting on rising prices.The system had finally collapsed during the summer of 2008, taking with it Fanny Mae and Freddie Mac.
The FHFA estimate that the seventeen banks have concealed certain characteristics of the securities they sold, including lying about reality checks on the creditworthiness of borrowers households. "The complaints allege violations of federal law governing financial assets and rights (common law) in the sale of securities backed by residential mortgages designed by these institutions," said the FHFA.
All the losses by the two organizations, which then 40% of the outstanding loans granted to the United States is estimated at 30 billion.Placed under public guardianship, Fannie Mae and Freddie Mac have so far cost $ 170 billion to American taxpayers.
The FHFA was assessed for each of the banks in the dollar amount of securities sold to two giants of credit (see box). In total, nearly $ 200 billion of securities that were sold. Most involved, the JPMorgan U.S. (United States) would have sold itself for more than $ 33 billion of securities. Societe Generale for its part would have yielded $ 1.3 billion.
"Fannie and Freddie knew"
The complaint of the Federal Agency is expected to lead to negotiations and a financial agreement to avoid a trial. In all cases, the procedure could be very expensive institutions in question, particularly in the largest U.S. bank by assets, Bank of America.The group should in fact not only defend his own actions, not the worst according to the FHFA, but also the mortgage lender Countrywide and investment bank Merrill Lynch, bought in 2008 make quick cash. Last June, the U.S. bank said it had agreed to pay $ 8.5 billion to end the prosecution of several investors and intended to spend an additional provision of $ 5.5 billion to clear the situation with Freddie Mac and Fannie Mae. The Wall Street Journal fell when it was the agreement to compensate the largest ever signed. The group also announced on the night of Friday to Saturday it plans to reduce its workforce by 10%, equivalent to the elimination of 30,000 positions.
The defensive line of Bank of America today is that Fannie and Freddie knew very well what they were doing."They said they understand the risks" and "now seek to hold other market operators to be responsible for their losses," the group said in a statement.
Regarding the French bank Societe Generale, no figures were given, but the injury is considered "important" by the Federal Housing Finance.
Amount of securities sold by banks
1. JPMorgan (USA): more than $ 33 billion
2. Royal Bank of Scotland (UK): more than 30.4 billion
3. Countrywide (United States, Bank of America): about 26.6 billion
4. Merrill Lynch (United States, Bank of America): more than 24.9 billion
5. Deutsche Bank (Germany): more than 14.2 billion
6. Credit Suisse (Switzerland): over 14.1 billion
7. Goldman Sachs (USA): more than 11.1 billion
8.Morgan Stanley (USA): more than 10.6 billion
9. HSBC (UK): more than 6.2 billion
10. Ally (USA, formerly GMAC): over 6 billion
10. Bank of America (USA): over 6 billion
12. Barclays (UK): about 4.9 billion
13. Citigroup (USA): over 3.5 billion
14. Nomura (Japan): more than 2 billion
15. Societe Generale (France): nearly 1.3 billion
16. First Horizon (USA): 900 million
17. General Electric (USA, parent company of GE Capital): 550 million
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