DSK's arrest revives the debt crisis in Europe

While the Director General of the International Monetary Fund, Dominique Strauss-Kahn, was charged with attempted rape and arrested in the U.S. yesterday as investors worried about the turn that will take the debt crisis in the euro area, especially in Greece. The indictment of Dominique Strauss-Kahn ally of Prime Minister of Greece George Papandreou, arrived in effect at the worst time for Athens. The IMF chief would have had to go in Berlin on Sunday and meet Angela Merkel to discuss a possible new aid to Greece, who won the spring of 2010 using a 110 billion euros, 30 billion from the IMF.This meeting was to take place on the eve of a meeting of the Eurogroup, the Monday night and Tuesday in Brussels, with the main discussions at the agenda of the financial problems that resurface Greece for several days and plaguing the markets, concerned about the risks of bankruptcy of Greece, and the possible contagion to other countries of the euro area.

The IMF will be well represented at the meeting of the Eurogroup, the deputy general manager of operations, Nemat Shafik, who was missionnée to attend. But analysts say the IMF's support to Greece is not as steadfast as Dominique Strauss-Kahn took the reins of the institution.Thus, Eswar Prasad, an analyst at the Brookings Institution told the antenna Bloomberg: "The assumption was that as Dominique Strauss-Kahn remained at the head of the IMF, the institution has not dropped in Europe and continue to support the continent. But the departure of Dominique Strauss-Kahn casts doubt on the intentions of the IMF. "

The IMF board will meet on Monday

Immediate consequence of these doubts, the euro fell to 1.4056 dollars in Tokyo Monday morning, 1.4108 against the dollar in New York Friday night. Against the yen, the European currency eased to 113.61 yen against 113.99 yen.However, shortly after after the opening of financial centers in Europe, the single currency has regained some color, displayed a very slight increase, to 1.4131 dollar.

For its part, the IMF has tried to be reassuring, saying yesterday that he remained "fully functional and operational," after stating that John Lipsky, IMF number two, will the Interim Director General of the institution the time required. The institution must meet its board of directors on Monday to decide the fate of its president at its head.Originally scheduled yesterday the appointment was postponed, the council waiting for new developments to make its decision in this situation that observers deemed "not simple".

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Soon relocations from China to the United States

China's competitiveness is being eroded in favor of the United States. Producing in China soon will cost more than 10-15% cheaper than in the U.S. by 2015, reports a study in the Boston Consulting Group (BCG). Taking into account all costs associated with transport and storage, the Chinese advantage will be reduced to less than 10%, even completely canceled, said the U.S. consulting firm. This is mainly because of the progressive narrowing of the gap between industrial wages in both countries.

BCG how he arrives at this conclusion at odds with the traditional discourse of economists? BCG has adjusted the salary cost of the two countries based on the productivity of workers, Americans are more efficient, especially since better-trained than the Chinese. It also took into account the fact that the Chinese currency, the yuan will continue to rise against the dollar in the coming years.BCG analysts believe, after these adjustments, the wages in industrial cities like Shanghai or very dynamic Tianjin will be lower than 30% of those in the United States.

"Because of the lack of skilled labor in China, wages increase by 15% to 20% per year," said Harold Sirkin of Boston Consulting Group in a study published late last week. "We therefore expect that the net cost of labor in industry in China and the U.S. converge around 2015." Before concluding: "We will see many more" Made in USA "these five coming years. "

Americans more productive

While China sees its labor costs rise, the U.S. productivity gain in parallel.More flexible labor code, public grants and favorable agreements negotiated with unions: "Many U.S. states, like Mississippi, South Carolina or Alabama, improve their attractiveness as centers of production to lower cost," says BCG . Some big names in American industry have recently relocated their production to the United States. Caterpillar has recently announced the expansion of a factory production of hydraulic excavators in Texas. About 500 jobs will be created. Previously, NRC had repatriated in 2009 its production of ATMs in Georgia.

Large manufacturers, however, are not going to desert China so far. Goods produced in large scale and require much labor will continue to be produced in China, recognizes BCG.It must be said that the Chinese advantage in terms of cheap labor and unskilled labor remains unparalleled. A study by the U.S. Department of Labor published in April, the average hourly wage cost of a Chinese worker in 2008 represented only 4% of that of a U.S. worker. And only 3% of average wage costs practiced in the eurozone.

The executive employment rebounded with the recovery

Virtuous circle. According to the Quarterly Business Tendency note published today by the Association for the use of frameworks (APEC), the upturn in the market for the employment of executives, up 10% yoy in the first quarter, will persist throughout the year. "This should result in increased recruitment of executives between 3% and 10% on the year," welcomes APEC. More than one in two firms planning to hire at least one frame in the second quarter of 2011, or 10 points higher than last year, and 17 points more than two years ago, during an economic crisis.Levels of recruitment have found their rhythm early 2008.

Graduates or experienced managers

Almost all sectors benefit from this improvement, including industry (59% of companies in this sector have recruited at least one frame during the first three months of the year, or 12 points higher than a year ago) , engineering, R & D (86%), consulting and business services (55%) and computer services (90%). Only construction and medico-social results show lower than last year at the same time, "although the outlook remains favorable to recruit" Apec shade.

If young professionals with several years of experience are always' the prime target for recruiters, "a beautiful part will also be reserved for graduates and highly experienced executives, unloved in recent years.Hiring intentions are regarding the effect on net increase over last year: nearly one in two firms who will recruit in the second quarter and has given his chance at a fresh graduate or a manager over twenty years of experience. Be, respectively, increases of 14 and 11 points in one year.

48 applications per offer

Recruitment target mostly business executives (42%). But the improvement in the industry will also lead to increased recruitment in specialized functions of production sites and technical services such as maintenance, procurement and quality.Technical studies, especially popular in engineering and R & D progress on these six points in one year to reach one in four businesses now.

Replacement of departures (for retirement, resignation …) remains the main explanation envisaged recruitment (41% of cases). But more than a third of companies also cite the development of activity as the main reason for recruitment.

Last sign of a strengthening labor market frameworks: a job entrusted to Apec has generated, on average, 48 applications during the third quarter of 2010. Ten less in a year. Employers are more likely to report difficulties in finding suitable candidates – 61% against 55% last year – even if the trend is still to longer delays in recruitment.The share of hires still being three to six months after the publication of the offer is stable at 23%. And this especially in functions where the offerings attracts fewer candidates: computer (72% recruitment difficult), and R & D studies (68%) and industrial production (67%).

Asian stock markets into negative territory

Asian stock exchanges are again plunged into anxiety. On Tuesday, the difficulties of returning to Japan central concern of investors.

The Japanese Nuclear Safety Agency has raised Tuesday to the maximum level of 7 the nuclear accident at the plant in Fukushima on the scale of nuclear and radiological events (INES). Which is to place the same degree of seriousness that the Chernobyl disaster. Engineers at Tokyo Electric Power (TEPCO), the operator of the plant, still unable to regain control of the site, where a fire was brought under control Tuesday. TEPCO also concerned that the radioactive leaks Fukushima are finally more important than those made during the disaster in Ukraine.

Japan has also been shaken by two aftershocks of the earthquake on Tuesday. The first took place at 8:08 local time, east of Tokyo.According to the American Institute of Geophysics (USGS), the magnitude 6.4 quake occurred 77 km from the Japanese capital. The second, magnitude 6.3, occurred at 2:07 p.m. in the same prefecture of Fukushima, the central location.

The red squares invades Asia

At the Tokyo Stock Exchange, the Nikkei started the day on a sharp decline of 1.20%. He dug his losses to -1.80% in session before rebounding slightly. It finally closed on a decline of 1.69% to 9555.26 points. The broader Topix index dropped 1.62% to its share at 838.51 points.

In addition to concerns about nuclear operations were penalized by the strong surge in the yen against the dollar and euro. The greenback was worth about 83.90 yen at the close of the Tokyo site, or a loss of nearly one yen in a few hours, while the European currency fell nearly one and a half yen to 120.75 yen about.Market participants are also concerned always consequences on business and the economy of Japanese earthquake of March 11.

The rest of the region followed the footsteps of Tokyo. In Hong Kong, the Hang Seng was down 1.33% while in Shanghai, the Shanghai Composite attempts an advanced 0.44%. Note that Chinese operators remain cautious while to be released Friday indcateurs major economy.

In Korea, the Kospi lost 1.26% in Australia, the S & P dropped 1.39% while in India the Sensex 0.97% loose.

Oil falls further

Side of the oil markets, the concern is gaining investors. The market is particularly concerned about the impact of high prices for black gold on the economic recovery. In morning trading, a barrel of light sweet crude for May delivery yielded 1.49 dollars to 108.43 dollars.That of Brent North Sea crude for May delivery lost 1.44 dollars to 122.54 dollars.

"The market fears that, with rising crude oil prices, demand will decline, which will affect the U.S. recovery," said Ong Yi Ling, an analyst at Phillip Futures.

Telecom: Vivendi takes full control of SFR

The negotiations have accelerated over the past week between Jean-Bernard Levy, CEO of Vivendi, and its counterpart Vittorio Colao, CEO Vodafone. The two sides finally reached an agreement Sunday to 7.75 billion euros plus the payment of a dividend of 200 million euros in the first half, Vivendi puts his hand on the 44% stake in SFR it does not already own. The transaction is expected to close in late June 2011. This sum values ​​SFR to 17.6 billion euros, or 6.2 times its EBITDA. A valuation standards-compliant transactions in the telecom sector.

With this transaction, Vivendi finally control the entire second French telecom operator who weighs 12.5 billion euros in sales and has 21 million mobile customers and 5,000,000 fixed customers."For the first time since the creation of SFR in 1987 by Generale des Eaux (Vivendi ancestor) that the second French operator has a single shareholder," said Jean-Bernard Levy, CEO of Vivendi. However, SFR and Vodafone will retain preferential trade agreements for three years. These agreements relate to roaming subscribers of SFR in France and beyond those of Vodafone when they travel to France. The agreement also covers joint management of major international clients no fax pay day loan. "Now more SFR may be present outside of France and develop new services for its customers," said Jean-Bernard Levy. However, Vodafone will not be the operator of Vivendi's holdings abroad as Morocco Telecom and GVT in Brazil. For these operations, "Vivendi will retain management," said Jean-Bernard Lévy

SFR occupies an important place in the Vivendi group.During the years of crisis in 2002 when the group collapsed under 32 billion euros of debt, he found his salvation by acquiring a majority stake in SFR from British Telecom for 4 billion euros. Thus, Vivendi could access the cash flow of its telephone subsidiary, which enabled him to honor the payment of its debt. SFR, Morocco Telecom and GVT, Vivendi telephony is clearly becoming a telecoms group. Its media activities: Canal +, Universal Music and Activision Blizzard are now a minority. However, the group intends to use the cash from SFR to strengthen it.

"Last but not negligible for Vivendi shareholders, this transaction will increase our annual profits of one billion euros, which will allow us to increase the dividend for 2012," promises Jean-Bernard Levy. The current dividend is 1.40 euro.

The economy will rebound after the earthquake

The destruction resulting from the earthquake and tsunami that struck Japan on Friday are still difficult to assess. Nevertheless, for many economists, which provide a parallel with the Kobe earthquake of 1995, the impact of the disaster on Japan's economic growth will in the medium term, positive rather than negative.

While the cost of the quake could amount to several tens of billions of dollars. In the short term, the destruction caused are enormous: infrastructure damaged production facilities at the stop, the areas impacted are placing great weight in the economy. If the worst-affected region, that of Tohoku, north-east coast, only 8% of Japanese GDP, that of Kanto, which houses including Tokyo, by contrast produces 40% of national wealth.

GDP contraction in first quarter

Besides stopping the oil refinery of Cosmo Oil Ichihara, east of Tokyo, the activity of the Japanese nuclear industry, which produces between 25% and 30% of national electricity production, is seriously compromised. Eleven of the fifty reactors are currently stalled, while an explosion in one of two plants in Fukushima, northern-eastern countries, has caused extensive damage and the evacuation of all population within a radius of 20 km.

"The temporary closure of production plants and oil refineries, and the interruption of power plants should have an impact on the country's production. GDP could result in decreased again slightly in the first quarter, "predicted the AFP and Wolfgang Leim, an economist at Commerzbank.

Growth boosted by reconstruction

In the medium term however, the Japanese economy could rebound strongly. Drawing a parallel with the Kobe earthquake in 1995, Takuji Okubo, senior economist at Societe Generale, said that reconstruction should generate an increase in activity, and the need for people to renew their property damaged boost consumption. The sectors of construction, steel and telecommunications sectors should benefit fully from the increased activity post earthquake.

"After the earthquake of 1995, Japan's GDP grew 1.9% in 1995 and 2.6% in 1996, while the average growth of the Japanese economy over this period was 1.5% .Consumption grew 2.2% between 1995 and 1996 against 1.1% on average between 1995 and 2004, "said Takuji Okubo.

Risk on debt

The Japanese bank Nomura, which also anticipates strong growth in the Japanese economy in the medium term, says his side as the stimulus state has played a key role in 1995 to revive the economy. "Immediately after the earthquake, the government passed an emergency budget which has contributed 0.3 points to GDP growth in the second quarter 1995 and 0.5 points in the third quarter. We anticipate a similar response from the authorities, "notes Peter Westaway, economist at Nomura.

The opposition conservative Japanese has already announced its support for extraordinary measures promised by the center-left government.A situation which should not, however, help improve the financial health of Japan, whose debt stood at 200% of GDP. The rating agency Standard and Poor's has also recently lowered the debt rating of Japan, considering that the country's budget deficit will remain high in coming years. But Moody's did its part Friday that the earthquake should not cause a subsequent breakdown of the score attributed to the Japanese debt.

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Renault confirms that it paid its informant

The twists in the case of alleged espionage at Renault are continuing. On Wednesday, the manufacturer, speaking through his lawyer Jean Reinhart, confirmed that he paid 250,000 euros to the anonymous informant originally denunciations internally. "We'd be in a range of about 250,000 euros," he said on Europe 1 radio mic, confirming a report in the Chained Duck. This money was given to him by an intermediary, agent of a private intelligence company, which could give them to the mysterious informant in whole or part.

According to the satirical weekly, the source would have received the money between October and December 2010 in exchange for its internal investigation. Duck shackled adds that this person is now claiming 200,000 euros 900,000 euros and still further to provide evidence of what she says. These last two figures were not confirmed by Renault.

The group's lawyer, however, added that for the first time, the builder was ready to unveil the identity of that source. "Renault did not know the identity of the informant. We asked our two security officials, who are alone to know, to deliver his name and address services investigators, "said John Reinhart.

"If injustice has been committed, there will repair"

Tuesday night, other sources claimed that a former military already become a private investigator had received a total of 100,000 euros that had been responsible for redistribution to investigators expected to work on suspicion of espionage. Heard in early 2010 by investigators from the Central Intelligence inside, Michel L, admitted being involved in this case as "biller".

These same sources alleged that the sum of 100,000 euros, "five installments from October to November 2010," passed through his hands. Part of this sum would have been sent to bank accounts in Madrid, whose holders must be identified by investigators.

Renault had originally not wanted to comment on the report of the satirical newspaper, at least not "until the investigation is not over," explained a spokesman. "We want the whole truth comes out and if injustice has been done, there will be compensation," she said just yesterday répétantles remarks by the Director General Patrick Pelata Le Figaro.

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G20: Sino-American game on the yuan

Ben Bernanke, head of the U.S. central bank (Fed), and his Chinese counterpart, Zhou Xiaochuan, stole the spotlight at their colleagues in the euro zone, Japan and the UK ahead of the G20. The leaders of the five banks of issue most powerful nations were invited by the Banque de France to discuss "global imbalances and financial stability." The debate was reduced to a duel to the barbed among central bankers of the first two world powers.

Without ever naming China, Ben Bernanke believes that "the maintenance of currency undervalued by some countries contributes to a structure of global demand unbalanced and unsustainable." The Fed chief stigmatizes those countries with large trade surpluses sustainably.This helped to show "an excess of global savings, which spilled on the U.S. economy, providing a permissive factor in the subprime mortgage crisis, said the Fed chief.

Zhou Xiaochuan acknowledged that China needs to reorient its growth towards domestic demand. But he believes that such a paradigm shift "will necessitate a series of more than ten years, including time to set up a welfare system that encourages the Chinese to save less. As evidence of the shift of services to his country, he "announced the good news: only 10% of new loans now are moving on the sectors of manufacturing industry," he said.

A Sino-American game

The President of the People's Bank of China believes the most "structural measures as price mechanisms", namely the exchange rate of the yuan.He noted that Chinese manufacturers will not want to redirect more than 20% of their production to domestic demand, "They say that exports always relate more than the market."

Two conceptions of economic policy clash. The great American financier believes in market mechanisms. He urged the country's trade surplus' to allow their exchange rates to better reflect market fundamentals. " Chinese consumers, enriched by the reassessment of the yuan, and will buy more foreign products.

For Zhou Xiaochuan, "it seems inappropriate to link the savings rate exclusively to the exchange rate and it is also unrealistic to solve short term problems in the long term," as he explains in an article the Financial Stability Review published by the Bank of France in the G20 (G20 each central banker helped).

The Sino-American game has somewhat overshadowed the performance of the other participants, even if a real consensus has emerged on the need to reduce the imbalances. Otherwise he should fear "the use of protectionism to one or more countries", warns Mervyn King, governor of the Bank of England. Jean-Claude Trichet, ECB president, also fears that "imbalances widened again."Masaaki Shirakawa, Governor of the Bank of Japan, worries about him that "the rigidity of exchange rates of major emerging economies could impact more and more important on the global economy."

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The NYSE takes colors

U.S. stock markets opened on a positive note Wednesday, after avoirfini down slightly Tuesday as investors reacted with concern to economic indicators on consumption and inflation in the United States.

Today, the indices leave up: the Dow Jones allows itself to 0.27% 12,260 points, the broader index Standard & Poor's 500 up 0.43% to 1334 points and the Nasdaq 100 advance of 0.47 % at 3817 points.

In the U.S., retail sales rose 0.3% in January, the lowest increase in seven months. Another indicator is bad news, import prices have increased more than expected (+1.5%) in January, because of the strength of oil prices. Inflation stood at 5.3% annual rate (against 4.4% in December).These figures have reinforced concerns that appear in recent weeks on the market caused by soaring prices of many commodities.

On the foreign exchange market, the euro gained ground against dollar on Wednesday bending under the weight of disappointing U.S. figures published yesterday. About 11:00 am in Paris, the euro bought 1.3545 dollars against 1.3488 dollars late Tuesday.

On the macroeconomic front, the news is particularly busy on Wednesday.Included were published before the opening gong, industrial production in the United States has declined (-0.1%) unexpectedly in January, driven by a decline in energy production, according to figures released Wednesday by the U.S. central bank (Fed) increased the number of housing starts rose more than expected in January, reaching their highest level in four months in seasonally adjusted data 596 000 (+14.6%), against 520,000 the previous month according to the Commerce Department, and the producer prices have increased (+0.8%) more than expected in January, according to figures released Wednesday by the Labor Department in Washington.

The weekly inventory of crude oil will fall to 16.30 and the minutes of the last meeting of the Monetary Policy Committee of the U.S. central bank to 20.30.

Sanofi wins Genzyme

The side of values, Sanofi-Aventis has finally agreed to pay $ 20.1 billion (14.8 billion euros) to acquire Genzyme (1.55% to 75.45 dollars), plus an amount an additional price tied to the success of drugs in American society of biotechnology. After more than seven months of negotiations, the French pharmaceutical group will pay $ 74 in cash per share Genzyme, 1.2 billion more than its original offer. The agreement, unanimously approved by boards of directors of both companies has been concluded with the introduction of a certificate of conditional value (CCV), particularly related to the performance of Lemtrada, Genzyme's experimental treatment in multiple sclerosis sclerosis no faxing payday loan.The value of CVC could reach a maximum of $ 14 if sales of Lemtrada totaled $ 2.8 billion by 2020, had said Wednesday the two companies in a joint statement.

The number two U.S. computer, Dell (6.76% and 14.85 dollars), after-hours trading on Tuesday a net profit almost doubled in 2010 thanks to higher sales and margins, and said that it expected continued strong momentum in sales this year. Over the whole of last year, net income jumped 84% to $ 2.6 billion.Revenues reached $ 61.5 billion, up 16%.

For his part, Analog Devices (-0.66% to 40.73 dollars) recorded in the first quarter of 2010/2011 a profit of 222.1 million dollars or 0.66 dollars per share, against $ 0.65 expected for a turnover of 729 million, in line with analysts' forecasts.For the current quarter, the company aims adjusted EPS in the range 0.65 to $ 0.69.

Also after the close, Air Products (4.37% to 94.16 dollars) announced it would abandon its takeover offer for Airgas following the decision by a Delaware court to maintain the anti-takeover of "Airgas.

Nelson Peltz submitted an offer to buy the company Family Dollar Stores (24.88% to 54.90 dollars) to 7.6 billion, or about 55 to 60 dollars per share.

Moody's raised its outlook for NYSE Euronext (-2.07% to 37.33 dollars), following the merger with Deutsche Börse. The rating agency adopts outlook "positive" cons "stable" before. If the merger is approved, the agency expects a surge in the first note of the future operator of the planet.

United Airlines decided to ground its fleet of Boeing 757, for an unannounced inspection.The U.S. company must perform safety checks on some of the onboard computers. They had to be changed by order of the Board in 2004 and must be re-inspected.

Note also, Madoff, who is serving a sentence of 150 years in prison told the New York Times that a number of banks and investment funds were "necessarily aware" of his fraud. Arrested in late 2008, Dr. Madoff was convicted in June 2009 for organizing a massive Ponzi scheme in which its around 16,000 victims have lost a total of several tens of billions of dollars they had entrusted him. Irving Picard, the attorney appointed to represent the victims of Mr.Madoff, filed a complaint on December 2 against the U.S. bank JPMorgan (1.58% to 47.56 dollars), accusing him of being "fully complicit" of fraud by the former rising star on Wall Street choosing "knowingly", like other financial institutions "look away".

Beneteau placed on motor boats

Having made the cape during the crisis, the Bénéteau Group, which has returned to profits in 2010, slashes full sail. By 2015, the company wants to double Vendée its turnover to 1.5 billion euros, while at the same time operating income is expected to quadruple to 180 million. To achieve this goal, the company will invest 500 Vendee million (fully funded) over the period, 250 million more than current rates.

If the activity is housing a turnover of 370 million in five years, against 205 million in the past year, these are the boats and especially the motor units that will achieve the objective. Strategic shift, the No. 1 worldwide sailing craft will focus on motor boats. Three new plants will ensure that production in Italy, South America and the United States."Over the past year, we identified new opportunities for both geographic and technical Cathelinais said Bruno, CEO of the Bénéteau group, our main rivals weakened by the crisis that we have invested less no teletrek payday advance. However, our financial structure is sound and we accelerated our investments. "

New ranges

Beneteau has expanded its range of 29 sailboats and powerboats in 2009 and another 20 units in 2010. "We accelerated our development plan," says Bruno Cathelinais during 2010-2011, the boat business to grow by 20% and 12% of housing activity. "This pace should be much higher than the market.

Total marks with Beneteau, Jeanneau, Lagoon, Prestige, the group will offer more than one hundred models, 20 to 60 feet. In addition, a new range of motor boats over 60 feet will be produced in Italy.Internationally, Beneteau will also be redeployed to Asia and South America. Emerging markets will also derive growth: without India they will represent in 2015 a market of around 3 billion euros to a total world market of 15 billion against 6.6 billion today. A boon for Beneteau.