The French shun savings products they preferred. A booklet after earlier this week, it's life insurance to take stock bleak for the month of October. The French Federation of Insurance Companies (FFSA) has published figures from the Sunday collection. Last month it dropped from 16% to 9.1 billion euros. The amount of contributions collected in the first 10 months of 2011 amounted to 107 billion euros, down 12% over the same period of the year.
Worse, the agency confirmed that the withdrawals were higher than inflows. In October, the balance is negative to the tune of 1.4 billion euros. It is, indeed, a little less bad than a month earlier. In September, withdrawals have exceeded payments of more than 1.8 billion euros.But above all it confirms that life insurance through a bad patch with unprecedented for the first time two consecutive months of negative collection cash advance america.
Questioned by AFP, the FFSA wants to be reassuring. "Let us not forget that these are data points. If you look from the beginning of the vision is very different, "cautions Bernard Spitz, President of the FFSA, underlining that the payments exceed 17.7 billion euros withdrawals in the first ten months of 2011 . A figure that compared to last year's data with the same period, however, shows a precipitous drop of 63%, the statement of the FFSA.
Pensions of baby boomers
These results reflect a combination never seen before, the structural and cyclical factors unfavorable. Life insurance suffers from the retirement of baby boomers. These offset the drop in income by drawing on their life insurance.
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.
The G20, which takes care of everything but no matter what, is interested. At their summit on 15 October in Paris, the central bankers of major economies in the world have endorsed the charter "consumer products and financial services." This text prepared by the OECD focuses "on the effort of education and awareness of financial issues," the general public.
The debate rages in the United States since the mortgage crisis "subprime" that erupted in 2007, putting the straw millions of Americans. Already 7.6 million families were divested of their homes, unable to meet their deadlines bank, and additional 7.4 million expected to be dislodged by 2016, the consultant provides Housing Predictor.This disaster certainly responsible for financial institutions that have dangled their customers become unbearable when mortgage interest rates began to climb. But as a last resort should we not blame the naivete and ignorance of borrowers unable to understand what they were doing?
President Obama has made it a priority that "Americans have the skills to effectively manage their disposable income and guard against deceptive practices and predatory." It is in these terms that the White House, with a "Council for Financial literacy" (financial literacy), decreed that April is "National Financial Literacy Month." One way to educate the public each spring operational introduction to finance more and more overseas.Even the Federal Reserve Bank (Fed) devotes part of its website with practical advice for a wide popular audience.
There is much to do. According to a survey conducted by FINRA (Investor Education Foundation), 68% of households have no personal events to finance as predictable as retirement or education for their children. And only 49% of households have "sufficient funds to cover the expenses of three months in case of illness, unemployment."
Carelessness or incompetence? "Most Americans lack the basic numeracy skills and knowledge of basic economic principles, such as the mechanisms of inflation, risk diversification, and the relationship between interest rates and financial asset prices "said Annamaria Lusardi economist, the George Washington School of Business.He has just published a series of studies on the subject.
This decision is based on a strict set of five test questions contained in the survey FINRA and here are the results. Thus only 65% of respondents answered correctly that "a capital of $ 100, paid 2% per year, worth over 102 dollars in five years overnight pay day loans." Similarly 64% understand that "if inflation is 2% and the returns on their savings by 1%, their capital will be worth less in a year." Only 21% know that the price of a bond decreases mechanically when interest rates rise in the market. This is the question most cotton test: the Financial Times noted for its readership "high end" has to explain every time the mechanism in its reporting of the market.In contrast, 70% of Americans know that "a fifteen-year loan requires monthly payments higher than a loan of thirty years, but that all interest paid over the life of the loan will be lower." They are, however, that 52% believed that the purchase of a share of one company is necessarily more risky than the subscription of shares of mutual funds in shares. In total "less than 10% of Americans are able to correctly answer all five questions," said Annamaria Lusardi.
The French should not make fun of poor performance. The Institute for Financial Literacy public (IEFP), established in 2006 at the initiative of the Financial Markets Authority (AMF), is about to publish a similar survey conducted in the Hexagon. However the results appear even worse, can we prevent the IEFP.
The issue is probably lower in France.The balance of PAYG pensions and group health insurance does not appeal to individual decisions. Besides the French are much less indebted than their cousins across the Atlantic.
Weaknesses in the calculation are the best thing in the world shared. Luc Chatel, Minister of Education and Xavier Darcos, his predecessor, did they not been trapped on television to have a mistake in a rule of three? This rule of proportionality, it is nevertheless essential to know the place to convert into euros the amounts in dollars! While it is fashionable to "be angry with the figures," while no one admits not knowing how to read. "Everyone complains of his memory, and no one complains of his trial," said La Rochefoucauld.Failing to properly count unfortunately causes the tragic misjudgment we know, both for households and for states. Hence the saying advisors financial products, worthy of the name: "It must be understood before taking."
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The opening of a new generation of "palaces" some months apart, Le Royal Monceau (opened October 18, 2010), Shangri-La (December 17, 2010) and Mandarin Oriental (28 June 2011), has changed as ever the small world of luxury hotels in Paris, forcing the oldest palaces in a serious challenge. In this new context, the Ritz is not alone in having to close for repairs.
Reportedly, Le Crillon, recently sold by Starwood Capital to one of the descendants of the Saudi royal family, plans to close in the second half of 2012, probably for a period of two years. Management has already attacked the facade and roof, but not inside. The idea is to keep the French style, classic 18th, upgrading the hotel, he in turn can officially claim the distinction of "palace", introduced in May by the government.The hotel has no spa, no pool. The technical installations and the rooms have aged. According to a close case, the amount of work would be between 70 and 100 million euros. Not far from the Place de Concorde, the Plaza is also preparing for months of work, avenue Montaigne. "The Plaza Athénée will start the work of great importance following the acquisition of three buildings adjacent to the hotel last year, says Le Figaro Francois Delahaye, his boss cash advance no fax. These projects are planned for the end of 2012.Among the possibilities, a closure is planned for five months, from November 2012. "
According to Gabriel Matar, director of Jones Lang LaSalle Hotels France, the average price of a night in a palace of between 750 and 1000 euros, "defending his position became increasingly difficult as competition comes from both new entrants and old, who spend millions to keep the quality of their product. " For the record, the George V was completely renovated between 1997 and 1999. "Otherwise, it would be today as the Royal Monceau and The Prince of Wales prior to closing," said Gabriel Matar."We currently have the best average revenue per room in Paris and we did not want to raise our market share by newcomers!" Says François Delahaye.
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The Paris Bourse after opening down slightly, trying to make a step forward after a session that saw the CAC 40 fly over 2%. In the morning, the CAC 40 in advance of 0.62% to 3249 points in early trade. Investors do not follow the mood on Wall Street yesterday and Asian markets this morning. The latter found confidence to the rhythm of advertisements European leaders on a plan to end the crisis. They particularly appreciate the position of the European Commission yesterday called for an urgent recapitalization of the banks deal with the debt crisis. Remarks relayed by the Minister of Budget Précresse Valerie, who, like Berlin, says it is "a necessity". France is willing to inject even said herself of public money to support its banks if necessary.
This commitment reflects a shift in the euro area on the Greek case.The taboo of failure is no longer excluded. The President of the European Commission Jose Manuel Barroso called for "decisive action on Greece" while German Finance Minister Wolfgang Schäuble said yesterday that the overall level of indebtedness of Greece should be reduced s' it reaches an unbearable level, "to provide better opportunities" in the country. The discount will have to accept that private investors in the second aid package to Greece adopted in July would be 39% if we used the current market prices to assess the risk profile of the country, instead of 21% estimated at the time, said yesterday an official of the Institute of International Finance (IIF).
New vote in Slovakia, the euro rises
Concerning the Relief Fund in the euro area (EFSF), which must be expanded to support the plan to end the crisis, Slovakia has promised another vote tonight or tomorrow.It should be positive this time because four opposition parties agreed to support the government in place, in exchange for early elections. These data give back to the euro insurance. The European currency found the threshold of $ 1.38 in morning trading.
Oil, however, is small decline: a barrel of "light sweet crude" for November delivery lost 86 cents to 84.71 dollars. Barrel of Brent North Sea crude for November delivery yielded nine cents to 111.27 dollars for the last trading day of the deadline. The operators claim to be concerned before the publication of figures on weekly petroleum reserves in the United States.Another indicator to the American agenda: the weekly jobless claims, trade balance and budget.
Values to follow Banks and cyclic form
The cyclical stocks such as Alcatel (9.9% to 2.2 euros) and Vallourec (3.32% to 48.90 euros) and the banks in the image of Societe Generale (2.92% at 23 , 84 euros), Credit Agricole (2.61% to 7.75 euros) or BNP Paribas (2.50% to 36.23 euros) always lead upward.
Total (-0.98% to 36.20 euros)
The oil company has discovered gas and oil off the coast of Norway, announced this morning the Norwegian Petroleum Directorate. According to preliminary estimates, this discovery is to be between 19 million and 101 million barrels.To dig the well that led to this discovery, Total was allied with Norway's Statoil, authorities said.
Carrefour plunged 4.16% to 17.17 euros
The group launched Thursday a new warning on its results in 2011, relying now on a decline in operating income between 15% and 20%, 15% instead of the planned end of August.
Lafarge (2.28% to 29.62 euros)
The French cement company announced an asset swap with the U.S. Martin Marietta, which it will transfer the aggregates quarries and concrete plants ready and asphalt, in exchange for aggregate quarries and distribution sites .
Casino (1.98% to 62.71 euros)
The retailer saw its organic growth slowed in the third quarter with declining sales of its hypermarkets in France, but the group has confirmed its objectives for 2011 include the strengthening of its market share in the Hexagon and improving margins at Franprix-Leader Price.
Areva (0.72% 22.49 euros)
The consortium of the French group and Germany's Siemens called the Finnish operator Teollisuuden Voima (TVO) to engage in the path of cooperation with the approach the final stages of construction of the EPR reactor Olkiluoto 3 (OL3). The final cost of the EPR should be 6.6 billion euros, according to the member Marc Goua responsible for a report on the accounts of the group. Areva has also been licensed by the U.S. authorities to enable it to construct and operate an enrichment plant in Idaho.Finally, the boss of the group, Luc Oursel, raised the possibility "to smooth or to shift some investments to reduce risk and improve (the) financial situation"
ArcelorMittal (-0.38% to 14.47 euros)
The group decided to shut down two blast furnaces located near Liège in particular because of the deteriorating global economic situation, the financial daily reported on Wednesday Belgian L'Echo, information later confirmed by the unions.
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After the 2010 reform, pensions should not be a real issue this year in the budget of the social security system. In fact, the main novelty of this result to come Woerth reform: the legal age will increase to 60 years and 8 months for those born in 1952. The other change was as expected since it corresponds to Nicolas Sarkozy's commitment to increase the "small pensions" by 25% during his five-year term: this will be done on April 1, with a final increase of 4.7 % of the minimum pension for single people.
But Thursday, François Fillon has caused confusion. Referring to the economic convergence between France and Germany, he said that things were moving in the field of corporate tax.He added: "It will take time to go to a joint work towards a common retirement age, to a gradual convergence of economic and social organization of our two countries." But the retirement age with full pension, except for long careers, will be increased to 67 years across the Rhine by 2029.
"Target needed '
Trial balloon of "Fillon-the-discipline"? Clumsiness (this passage was the only improvised his speech)? Applies to defuse his entourage: "Convergence is a general purpose necessary to maintain the competitiveness of France. The recent pension reform is an element of social convergence, and the government does not intend to go beyond in the coming months, "says an adviser.And up, tongue-in-cheek, that the barrier of 67 years had not been mentioned, and that convergence might as well be on "our" 62 years …
In fact, it would be difficult for the Prime Minister to explain that further reform is needed, a year after he hammered the previous balance the books. But in the midst of primary socialist and the day of the budget of the social security, his statement could hardly go unnoticed. For François Hollande, Fillon "revealed the program of Nicolas Sarkozy" in 2012. Segolene Royal accused her of "not being honest", the systems are so different that any comparison between the 67-year German and French 62 years is risky.Exact to the point that Valerie Pécresse also used the argument to play the controversy, noting that the retirement age without financial penalty for people without all their quarters of contribution, would be increased from 2023 in France … in 67 years.
These subtleties have also pushed Martine Aubry to say that the Prime Minister does "not know the subject" and "has a problem with the actual figures." What afoul of Xavier Bertrand: "She would have done better to remain silent. If there is one subject on which the PS has done nothing, other reports and reports of decisions, it's pensions, "responded the Minister of Labour.
Player Figaro BFM
The Paris Bourse pauses on Thursday, after a session that saw the CAC 40 jumped more than 3.5% beyond 3000 points. The benchmark index of the Paris Stock Exchange began the day on a stable note, down from 0.08% to 3070.58 points. On other European exchanges, the movement is the same. London lost 0.08% while Frankfurt climbed 0.08%. As in Asia this morning, traders expect the set of indicators of days before taking a position. Unlike previous days, the agenda will be very busy in the U.S. and Europe.
In the euro area, the eyes will be on the ECB. Earlier this afternoon, President Jean-Claude Trichet, will make an announcement on rates. Unsurprisingly, they should remain at current levels, at 1.5%. But markets are waiting above him to book his views on the problems of sovereign debt.For now, it's time for calm on that front. Yesterday, the German Constitutional Court was reassurance by confirming plans to aid in the euro area. In France, the deputies approved the second bailout of Greece arrested on July 21. They are the first to start this procedure. The Italian Senate last night gave a green light to the first austerity plan of over 52 billion euros from the Berlusconi government, while Spain adopted its fiscal rule of thumb, as desired by Paris and Berlin.
The U.S. employment under the microscope
United States, several indicators of the health of the economy will fall during the session. Among them, the trade balance, weekly jobless claims and oil stocks.The consumer credit will be available after market in Europe.
Two discourses are also highly expected on Thursday, those of Ben Bernanke and Barack Obama. The Fed chief will speak at around 19 am, French time, the Economic Club of Minnesota. Investors await details about how the Fed intends to support the economy. This intervention will follow the publication yesterday of its Beige Book, which again reported a moderate growth. For his part, Bush will speak on Congress to 1 am, French time, on employment and growth. It should detail a plan for employment that would reach $ 300 billion, raised yesterday by the U.S. media.
In France, growth in employment has slowed
In France, INSEE announced that the dealer paid employment decelerated in the second quarter.Principally market sectors have created a total of 33,300 jobs over the period April to June, from 78,300 in the first three months of the year, an increase of 0.2% against 0.5% the previous quarter.
The trade deficit widened further in July, reaching 6.46 billion euros in seasonally adjusted data, weighed down by a rebound in imports, Customs officials said Thursday.
On the currency side, the euro fell again to 1.4063 dollar.Oil, he, rising as a result of the prolonged interruption of production in the Gulf of Mexico due to tropical storm: a barrel of "light sweet crude" for delivery in October gained 41 cents to 89.75 dollars a barrel of Brent North Sea crude for October delivery takes 18 cents to 115.98 dollars in morning trading.
Values to follow on Thursday
• Banking
Stress tests imposed on European banks have made "transparency and clarity" on the strength of their balance sheets, said Wednesday night a Treasury official in the United States free credit report and score.
Banks react well. Among the largest increases are CAC, Societe Generale (2.01% to 19.77 euros), BNP Paribas (1.94% to 32.25 euros), Credit Agricole (0.97 to 5%, 80 euros), Axa (0.80% to 10.10 euros) and Natixis (0.55% to 2.55 euros).
• EADS (-0.85% to 21.69 euros)
The group is ready to dip deep into a war chest of $ 16 billion (11.3 billion euros) to finance its expansion in the U.S. and is in preliminary discussions with several potential targets, said Wednesday its chief executive for North America.In addition, the European missile manufacturer MBDA, in part by EADS, would be forced to reduce its workforce by 400 jobs by 2015, according to La Tribune.
Airbus, a subsidiary of EADS, is also considering a third increase its production capacity in one of its scenarios for 2018 to meet demand, the success of the A320 Neo scarce slots delivery before 2020, The Tribune reported Thursday.
• TF1 (0.87% to 10.43 euros) and EuropaCorp (stable at 3.29 euros)
The two groups announced Wednesday the signing of a Framework Agreement for development to produce the series in English for television.
• Ipsos: -1.36% to 27.13 euros
The group has launched a capital increase in cash of approximately 200 million euros to finance the purchase of Synovate.
• GDF Suez: -0.22% to 20.44 euros
The group will transfer to the Italian ENI participation of 10.4% in gas fields in the North Sea to pay off debt, reported Thursday Les Echos.
• Technip: 2.06% to 67.25 euros
In consortium with National Petroleum Construction Company (NPCC), the group won a contract worth about $ 500 million for engineering, procurement and construction of the project Satah Full Field Development, a field located 200 km northwest of Abu Dhabi (UAE).
• Sanofi: 0.54% to 50.19 euros
Genzyme, the biotechnology laboratory of the U.S. bought by the French group, was unable to deliver its drug Fabrazyme in August, although it promised to doctors and patients to meet this deadline. U.S. regulators have made public Wednesday letters from Genzyme dated August 26 and 25 where the laboratory apologizes to its customers and for people with Fabry disease, a rare genetic disease, for "any confusion and disturbance "caused by the delay.
• France Telecom: 0.37% to 12.19 euros, Vivendi: -1.06% to 15.89 euros
The new tax passed by the government as part of the new austerity plan should give priority, penalize these two groups, according to Les Echos. France Telecom should be paid to these measures between 300 and 500 million.Vivendi would see him, his taxes increased from 250 to 400 million.
Next recommendation goes to Credit Suisse under-performance against neutral Ipsen (-0.41% to 22.85 euros). Societe Generale goes with the purchase of Biomerieux (2.09% to 71.40 euros).
Despite the strong rebound on Wall Street Tuesday, Asian stock markets are unable to confirm their good performance yesterday morning. Including the Nikkei in Tokyo Stock Exchange which is stable at 8729.79 points, after opening up 0.78%.
Moody's has in fact degraded by one notch (to Aa3) Note the long-term debt of Japan due to the massive debt the country, aggravated by the earthquake of March 11. In the process, the U.S. rating agency also lowered the rating of a crazn debt of large Japanese banks (Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking).While the title Mizuho is stable at 112 yen to the Tokyo Stock Exchange, Mitsubishi UFJ Financial loose 1.75% to 336 yen and Sumitomo was down 0.49% to 2198 yen.
Tokyo takes steps against the high cost of yen
While the yen regained some ground against the euro (110.52 yen per euro) and was stable against the dollar (76.70 yen to the dollar), the Japanese government also announced a series of measures exceptional to help companies: including facilities will be granted to them by creating a special fund of 100 billion dollars taken on the foreign exchange reserves to encourage them to invest abroad.
Despite this, the export value, including automobile manufacturers, continued to decline in stock: Honda lost 0.93% to 2,343 yen and Toyota gave up 0.86% to 2739 points.
Chinese financial markets, the Hang Seng lost 0.81% to 19.714.50 points while the CSI 300 gained 0.35% to 2830.83 points.
As for other Asian financial centers, the trend is also mixed: the Taiwan TAIEX was down 0.11% at 7541.80 points, the Kospi Index in Seoul lost 0.61% to 1765.78 points and the FTSE Straits Times of Singapore gives 0.48% to 2752.01 points. However, the BSE Sensex 30 Bombay is stable at 16,502.90 points and the S & P / ASX 200 advance 0.23% to 4182.80 points.
Oil prices rise
Oil prices were up Wednesday morning during electronic trading in Asia, with Brent who was close to 110 dollars a barrel because of uncertainty about the situation in Libya. In morning trading, a barrel of Brent North Sea crude for October delivery gained 50 cents to 109.81 dollars. A barrel of "light sweet crude" for delivery in October was appreciating by 18 cents to 85.61 dollars.
Reportedly, the government is preparing to raise the fee paid by social enterprises to 8% in 2012, while it is currently 6%. The Elysée and Matignon are still far from having the entire refereed austerity plan which will be unveiled Wednesday by François Fillon. But the rise in social package, which was already in the pipeline even before the crisis erupted, has very strong chance of being selected.
The social package is a kind of social contribution, which weighs on the amounts paid under the profit sharing, participation, savings and pensions pay extra. Paid by companies, was established in 2009 at a rate of 2%. He has since been increased by two percentage points each year by the government! The draft budget for 2012 should not be an exception to the rule cash advance. The increase of 6% to 8% could yield 400 million euros to Social Security.
Similarly, two other measures related to loss carry-on profits, have very likely to be retained in the austerity plan. The carry-back would be limited to one year. And regarding the carry forward losses from the profits would be capped. In Germany, the losses allocated may not exceed 60% of earnings in excess of 1 million euros.
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Annick Goutal perfumes changes hands. Korean cosmetics group Amore Pacific, which owns the Lolita Lempicka fragrance and cosmetics Laneige, acquired the French brand to the U.S. fund Starwood Capital. The latter had acquired in 2005 by taking control of several jewels of the Taittinger family group: hotels Crillon and Lutetia or Baccarat crystal.
Goutal perfumes, bought by Taittinger in 1985 and still led by Brigitte Taittinger, had been founded by Annick Goutal in 1981. The brand has stores in France, Belgium, UK and Canada, but mainly distribution agreements with 1300 stores in twenty countries. Amore Pacific sees growth potential in Asia.
