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Why the stock market like so many Apple

Saturday, March 3rd, 2012

 

On 13 February the share price of the Apple brand has surpassed for the first time the symbolic $ 500. Fifteen days later, its market capitalization crossed the threshold of $ 500 billion. Apple is now the most expensive company in the world. In ten years, the firm value has been multiplied by 55. One who placed $ 10,000 on Apple in 2002 could now buy a Manhattan apartment overlooking Central Park! Rising Will it continue? Y does a bubble on the title Apple? After such a stock market boom, the question is quite clear. Innovation capacity of the group is not infinite and the other smartphone manufacturers and electronics do not remain idle. The concentration of income of the company around two flagship products, the iPhone and the iPad, is also a point of fragility. Apple is not immune to a hiccup, but for now, investors are on a cloud and continue to flock to the title. Here are seven reasons that make them love Apple.

The best growth

Since 2007, the release of the iPhone, the firm at the apple has increased its turnover by more than four. During the last quarter of 2011, which includes Christmas sales, it jumped 64.8%. A recent study by the U.S. bank JPMorgan activity including projections through 2013 show that sales of Apple might, in seven years, advancing an average of 37% per year. Conclusion of the analyst, one must have in its portfolio: Apple is growing five times faster than the finest examples of American technology, such as Google, Amazon, Dell, Cisco and Microsoft.

Profitability is a dream

The firm at the apple generated in the previous year ended September 24, 2011 net income of $ 25.9 billion, which corresponds to a net margin of 23.9%, worthy of a luxury group LVMH like. During the last quarter of 2011, the group went higher with a profit of 13 billion, with net margin to a record 28.2%. Analysts at Societe Generale are waiting for the current year a net profit of nearly $ 43 billion, one of the highest ever achieved by a private company. Unusually, sales growth is not done at the expense of profitability. According to a study by the U.S. bank JPMorgan, the manufacturer of the iPhone could end the year with a gross margin of 43.1%, one of the best ratios of Wall Street.

A value "still" very wise

Unlike technology companies of the 2000s, which dealt in stock several dozen times the amount of their turnover without a penny of profit, Apple remains poorly valued. At current, the stock pays less than 10.5 times expected profits for the current year, while on Nasdaq, the market for technology stocks in New York, shares are traded on the basis of more 15 times earnings estimates for the current year. Better, up 40% of its shares would place it in the average American coast. UBS analysts are betting on a net income of $ 48 billion in 2014. In other words, the title is paid 8.5 times estimated profits in three years. It is therefore one of the values ​​cheap Nasdaq.

A global business

Apple has the advantage of not depend on any particular geographical area for sales. The group is present on all continents, which puts him immune to geopolitical risks. During the last quarter, the group realized $ 17 billion of sales in the U.S., which remains its largest market. Europe is second with 11.2 billion. Asia and the rest of emerging countries represent $ 13.8 billion. A tremendous reservoir of growth for years to come. Do not spoil, the allocation of profits by geographical areas shows that it is in emerging countries margins are the strongest.

Considerable reserves

The $ 100 billion of cash available to the firm are fantasizing analysts. With that kind of money, anything is possible. Unless the madness: the management of the group remains true to its creed: "The cash we do not burn your pockets." This does not prevent investors dreaming of a share repurchase program that would magnify their gains.

A fabless model

Apple does not have a factory. The assembly of its products is fully contracted. This organizational model is praised by analysts. The efficiency of its supply chain is cited as a model, including by some competitors. Fabless, no fixed costs. But it could also be the Achilles heel of the firm, thank you for the goodwill of its suppliers (some of which are also competitors) or a scandal over working conditions at these sites.

The art of customer loyalty

Apple has created around its products a world that feeds on itself. A development model formidable since purchase almost automatically generates another. Apple has never sold as many Macs that since he launched the iPad. Customers are real fans of the brand. The business model also relies on the sale of associated services such as music and video (iTunes has generated 1.7 billion revenue over the previous quarter). The group has just opened a new market with its system of data storage remote icloud, already endorsed by 85 million people.

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Brussels sum Spain to explain the deficit

Tuesday, February 28th, 2012

 

The official figure is worse than expected. The deficit of Spain reached 8.51% of GDP in 2011, according to finance minister, Cristobal Montoro. The difference is significant compared to the 6% target that was assigned to Madrid. The European Commission has not responded. Brussels said Tuesday the Spanish Conservative government's commitment to reduce the public deficit from Spain to 3% of GDP in 2013 and has ruled out any flexibility despite the difficulties.

"The Spanish government is committed to the Commission and its sixteen partners in the euro area to reduce the deficit to 3% of GDP in 2013," recalled Olivier Bailly, a spokesman in exercise of the Commission. "We never relaxed the rules laid down to achieve objectives," he added.

The Conservative government led by Mariano Rajoy, who had warned when he took office last December that he expected a deficit of 8% – blaming the outgoing Executive, of the Socialist José Luis Rodríguez Zapatero – , can not expect any concession on the part of the Commission.

"The Spanish authorities have to present ourselves in the coming weeks a draft budget for 2012," said Olivier Bailly. "We know that the two goals deficit to 4.4% of GDP in 2012 and 3% in 2013 will be difficult to achieve for the Spanish economy, the Spanish Government and the Spaniards themselves," admitted the Spokesman of the Commission. "But there are rules and they must be respected," he said.

30 billion euros by December to find

The objective of reducing, this year, the public deficit to 4.4% of GDP, however, is regarded as unrealistic by most observers Same day payday loans. "It will be very difficult, Judge Juan Carlos Martínez Lázaro, an economist at the IE Business School. Mainly because of growth prospects. " The European Commission believes that the Spanish GDP will contract by 1% in 2012.

To get the deficit of 8.51% to 4.4%, the Conservative government should save some 45 billion euros. The first measures adopted by the executive have to trim 15 billion euro 9 billion in spending cuts and $ 6 billion in tax increases. That leaves 30 billion to find by December.

Substantial reductions will necessarily painful. They primarily concern the regions responsible for two thirds of the slippage in 2011. But these positions manage the most sensitive: the education and health, among others. "We'll have to look for new ways of funding," warns Martínez Lázaro. The copago, user fees at medical consultations, is already established in Catalonia. It could be applied in many other autonomous communities.

There remains the possibility of increasing the VAT back … even if, again, on an election commitment Rajoy. "If Brussels does not review the deficit target, Madrid will necessarily increase the VAT," said Professor Martínez Lázaro. But the Commission warned: "We need all the information on the 2012 budget," said Monday the Commissioner for the Economy, Olli Rehn. Madrid had rather wait for indications from Brussels before presenting his budget in late March.

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Gasoline, electricity … prices will fall in Reunion

Sunday, February 26th, 2012

 

Friday night to Saturday was quieter at the meeting, but the measures in favor of Purchasing Power announced Friday night failed to extinguish the fire of protest against the "cost of living." Among the nudges forward, lower gasoline prices, freezing or lower prices of 40 basic commodities, and a social tariff for electricity.

Measures "insufficient" and "incomplete," according to the protesters. The meeting recorded an unemployment rate of 29.5% and explodes 60% for people under 25 years. Social minima are the same in the mainland but the cost of living is more expensive.

• Decreased 8 cents per liter of petrol and diesel

From 1 March until the end of the year, the price of gasoline at the pump will be reduced by 8 cents per liter. The question of fuel is essential for Reunion, forced to move by car or scooter as public transport is scarce and disorganized. In the department, a liter of gasoline costs 1.66 Unleaded 95 euro more than the French average of 1.58 euro (absolute record at February 17, 2012), but the diesel will cost "only" 1.29 (1.42 against euro on average throughout France).

Each month, fuel prices at the Meeting are set by prefectural order, depending on the variation in supply costs. This discount of eight cents and will be decided each month and achieved through a reduction of taxation. It will be financed by a renunciation of communities and the Chamber of Commerce to certain taxes, while importers of petroleum products will agree an effort.  

In France, for every liter of gasoline paid, the TIPP (domestic tax on petroleum products) is 60 cents for Unleaded and 42 cents for diesel. In some cases – this is the meeting – a fraction of the TIPP has been attributed to the regions, which may modulate the rate. Moreover, the prefect wants the establishment of a new storage of fuels, to create competition against the monopoly of the single fuel distribution company on the island.

In addition, the UMP president of the regional council, Didier Robert, will remove the "dock dues" on fuel, local taxes related 24 million euros per year, collected by the Region and then shared with other communities.

• Gel or lower prices for basic commodities

The price of forty staples will be either a decline or a gel. The list will be developed with retailers and consumers and published Thursday.

The council said that among these products, there would be "ten countries products, that is to say, as locally produced milk, oil, diapers, bleach, pork or chicken, which decline by 20 to 30%. " An effort of 23 million euros for this community, chaired by Nassimah Dindar, who is also counting on an effort by producers. Negotiations should continue throughout the weekend.

At the meeting, the social minima are the same in the mainland. Among the 830,000 inhabitants on the island, 52% live below the poverty line, or with less than 795 euros. 30% are unemployed. Among youth under 25%, the unemployment rate explodes to 60%. Now the population is young at the meeting: 56% had less than thirty years. However, prices of consumer goods, from food to clothing, there are more expensive than in the mainland, since most are imported. According to figures from INSEE, prices in 2009 were 15.6% higher at the meeting in the mainland. In 2010, the gap narrowed to 12.4%, for an average consumer basket, including rent. By comparison, in Guadeloupe, prices are 14.8% higher on average than in metropolitan France (in 2010), 16.9% more expensive in Martinique and 19.6% in Guyana.

• A social tariff for electricity

The effort on the forehead of electricity would represent a decrease of about 40% of the invoice concerned Reunion. The prefect said the families receiving the minimum social wage and minimum wage up to 1.4 are affected by this social tariff. These rates apply EDF funded by the General Council.

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A power line between France and Spain

Thursday, February 16th, 2012

 

The cold snap ending just in France has demonstrated how exports and imports of electricity are vital. To meet their current demand, the 65 million French broke records historical consumption last week to more than 100,000 megawatts (MW), of which 8000 MW have been imported.

This is to increase trade in electricity as RTE, the French network, and its Spanish counterpart REE beginning to drill its days of a new tunnel linking France and Spain.

The launch of this project marks the latest episode in a series over several decades. The last line at high voltage (EHV) trans-Pyrenean date thirty years ago. Expected since the 1980s, this binding (THT) was designed to be air. The prospect of the sides of the Pyrenees bristle with towers and cables mobilized a strong opposition that eventually succeed. The project was frozen.

The man who strove to break the deadlock is none other than "Super Mario", the current Prime Minister of Italy Mario Monti, former European Commissioner, says Yves Decoeur, the CEO of INELFE, a joint venture between RTE and REE . Stakeholders have agreed to bury the line THT than 320,000 volts. A green solution which almost tenfold the cost of the line, 80 million euros to 700 million euros.

The European Union, within the dual framework of its program of infrastructure to streamline the energy market and its recovery envelope decided after the 2008 financial crisis, has financed the construction of up to 225 million euros . Added to this a loan of 350 million euros from the European Investment Bank. "In exceptional circumstances, exceptional financing," had justified the commissioner Mario Monti, remembers Yves Decoeur.

World record

Of the 65 miles of new service between Perpignan and Figueres, will be drilled 8.5 kilometers beneath the mountain by two tunnel boring machines, monsters of three hundred meters long each. The rest of the line will be buried 1.5 meters underground through a single trench.

With a capacity of carrying 2000 MW, slightly more than the power of two nuclear reactors at Fessenheim, the line "Baixas-Santa Llogaia" will "break the world record currently held by a line buried in a 400 MW DC United States United, "said Yves Decoeur. The tunneling and burial of 65 km along the line must be completed by mid-2013.

In recent years, the volumes of electricity traded between the two neighboring Pyrenean rose, but crisis requires, they fell in 2010. The balance of trade with Spain was positive for France last year whereas it was negative in 2010. France has bought 3.1 terawatt hours (TWh) and sold 4.5 TWh. RTE said that the volumes and balances vary considerably from one month to another, including depending on the availability of dams in Spain.

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The draft social VAT to the test in the Assembly

Monday, February 13th, 2012

 

MPs begin Monday discussing the first draft supplementary budget for the year. The text note the participation of France in the European Financial Stability Mechanism, which should come to the aid of European states in difficulty. More importantly, he declined the proposals made by Nicolas Sarkozy on January 29 on TV: declining payroll, financed by higher VAT and raising the CSG on property income – it is the social VAT – and introducing a tax on financial transactions.

VAT on the social component, the agreement is not perfect in the majority. In his background paper to the bill, Gilles Carrez, UMP general rapporteur of the budget to the Assembly, shows that the industry will benefit from a reduction in social security by only 3.3 billion euros. In fact, industrial companies will capture a quarter of 13.2 billion exemptions from employer contributions to the family. The rest will go to areas not exposed to international competition. "The exemption from, as it has been calibrated by the government, is not a pure measure of competitiveness. It is also a device that will support employment more generally, "concludes Gilles Carrez. Another point underpins his argument. 57% of the cost of exemptions will cover salaries of between 1.6 and 2.4 minimum wage, wage levels very much in the industry. But wages between 1 and 1.6 SMIC, which already benefit from reduced charges earlier, still will capture 43% of new exemptions. But these are the sectors in France and French business (retail, construction, cleaning services, etc..) That employ many people between 1 and 1.6 SMIC.

Reflection on fuel

If the Socialist Party denounces sprinkled too far, Gilles Carrez, which assumes that employment support, not to recalibrate the exemptions from the government's planned. No question of extending these exemptions to self-employed, as desired by some on the right. "This relaxation would cost 900 million," says he.

In short, the text should be slightly modified during its passage in the Assembly. Only a few effects of the VAT increase should be mitigated. After avoiding the VAT makes up the price of tobacco, the government would work to a device for gasoline. Baroin evoked a reassessment of the kilometric scale, used to calculate the business expenses that reduce income tax. But nothing is arbitrated.

In addition, the Finance Committee passed an amendment which communities to be reimbursed by the state at the new rate of VAT to 21.2%. A measure sponsored by the annualization complete relief of charges. Another amendment provides that the rate will remain at 19.6% for households who bought their homes off-plan (selling prior to completion) before February 2012. Finally, Gilles Carrez wishes employee savings out of the tax on financial transactions. And an amendment of the Committee is a tax, registration fees on transfers of shares. Nothing revolutionary, so. At three months of the presidential election, he is not a question for members of the majority of messing up a government project. Plus, they will face a work of obstruction of the Socialists, who have tabled amendments miles!

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Saturday, November 12th, 2011

At a silver lining. The great blunder of the rating agency S & P issued Thursday to its subscribers in error message suggesting that the note of France was degraded allowed to know the exact impact would have been the suppression agencies rating of the famous "AAA" from France. This information has been totally denied by the U.S. agency Standard & Poor's and the Financial Markets Authority (AMF) has launched an investigation, but the damage was done.

As such, it must be remembered that the S & P is not his first "mistake". In early August, when the deterioration in the rating of the United States, the agency had already deceived 2,000 billion in the calculation of the federal debt.

This lack of reliability of the agency does not affect the market reaction.Thursday, shortly after the dissemination of this false information to 3:57 p.m., the French rate on loans to ten years amounted to 3.46%, bringing the pay gap with German bonds of similar duration to a record 166 points percentage not seen since the creation of the euro.

Everyone to understand that France will soon be degraded

This Friday, at the opening transaction, rates eased around 3.36%, but markets have learned their lesson. In exchange, everyone understood that in case of deterioration in the rating of France, synonymous with loss of the "triple A", the rates of government bonds with ten years showed 3.46%, or 3 , 5%. This would mean that in this case, France would borrow twice from Germany!

The shock is harsh, but it is ultimately not so dramatic as that. A 3.46 or 3.5% borrowing conditions in France remain reasonable.

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Thursday, November 3rd, 2011

● Restoring growth

● Reform the international monetary system

● Fighting against the volatility of agricultural commodities

● Regulate Financial Markets

● Financing for Development Assistance

● Reforming global governance

Boost growth

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Recapitalization of banks: difficult negotiations in Brussels

Sunday, October 23rd, 2011

Creditor banks in Greece will have to accept losses "substantial" in the new bailout of the country, warned Saturday that the European Ministers of Finance. Last night, the central bankers of the euro zone had "agreed to say that we had to have a substantial increase in the contribution of banks" in the form of a depreciation of their claims, said the leader of European finance ministers, Jean-Claude Juncker.

According to diplomatic sources, the ministers agreed to effectively negotiate with the banks at a discount of "at least 50%" against a target of 21% decided on July 21 with the banking sector. They thus de facto endorsed the conclusions of an expert report which was presented by the troika of donor funds in Greece (EU, ECB and IMF).The paper believes that a discount of 50 or 60% hope to stabilize Greece without having to increase in the amount of gigantic international loans that have already been promised.

A "discount" is the term used in relation to the financial depreciation of the value of loans taken by creditors in this case private banks and investment funds that hold government debt. A discount of 50% borne by the private sector, the second program of financial support pledged July 21 to Greece, however, should be slightly revised upwards with government loans (Europe and IMF) to 114 billion euros, against 109 billion euros.To maintain the envelope of 109 billion euros unchanged, it would bring the discount to 60%, according to calculations by experts.

• Banks recapitalized to the tune of 100 billion euros

In any event, the second bailout in late July, just after the first amounting to 110 billion euros agreed in spring 2010, will have to be redesigned. "It's pretty clear that we need a substantial discount on Greek debt," also said Saturday the Swedish Finance Minister Anders Borg on his arrival in Brussels for a meeting with colleagues from across the EU."We will now work on a new plan Greek, there is an effort of European countries [to, ed] and will also require an effort of the private sector," said his Belgian counterpart Didier Reynders.

The question is whether the banks that have so far dragged its feet to give the pot, will accept a negotiated settlement does not pass through a default of Greece said "messy" serious consequences. "It's a negotiation s'entame," said Didier Reynders. These discussions, held in Brussels with representatives of the Institute of International Finance (IIF), the banking lobby, "still, there is no agreement yet," said a source told AFP familiar with the matter.

In return for the effort required on the Greek claims, it is intended to recapitalize European banks to the tune of nearly 100 billion euros. The subject was Saturday in the agenda of the ministerial meeting.According to sources cited by Reuters, an agreement in principle was reached by European finance ministers on the recapitalization faxless pay day loans. European diplomats interviewed by AFP were less categorical in the late afternoon. "There is no agreement on the recapitalization, it gets stuck a little." According to one of these diplomatic sources, "Spain insists on having a comprehensive, not only on the recapitalization of banks but also on strengthening the European Financial Stability Fund (EFSF). " On the other hand, "the ministers are trying to agree on the minimum capital."

The European Banking Authority (EBA) has proposed that banks reach a level of capital of 9% by mid-2012.A diplomat acknowledged that some countries in the viewfinder of the markets, like Italy, Spain or Portugal, feared that the recapitalization will further undermine public finances.

• The Fund will not support a bank

Moreover, the French proposal to grant a banking license to the Fund support the euro area (EFSF) so he can refinance with the European Central Bank "is no longer on the table," said Minister Dutch Finance Jan Kees de Jager. Only two options are being discussed to increase the firepower of the device, he told reporters Saturday. These two tracks on the agenda now that the mechanism acts as a partial insurance of the public debt of countries in difficulty or higher participation of the IMF to the device, according to a German government source.But there is "significant differences between countries" on the issue, said Jan Kees de Jager.

How to leverage the capacity of the EFSF was the main sticking point between Berlin and Paris at the approach of the EU summit. France, worried about its budget deficit and are "triple AAA" prefer tap into the existing European funds, starting with the ECB. Germany, also sensitive to the separation of powers as inflation risks, refuses anything resembling a crisis by printing money in Europe. France was not only to advocate the involvement of the ECB, arguing that this system worked very well in the United States or Great Britain.She was supported by Spain, Italy or Belgium.

The European Relief Fund currently has a lending capacity of 440 billion euros, part of which is already committed for Ireland and Portugal. This envelope is considered insufficient to prevent contagion of the debt crisis in countries as large as Italy and Spain, increasingly in the firing line of credit rating agencies. European countries negotiate so hard for weeks on the best way, via a "leverage" to multiply by up to five response capacity of the Fund's financial debt of fragile countries.

(With agencies)

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Primary PS: yellow card for five major media

Thursday, October 20th, 2011

This is a first. The Higher Audiovisual Council (CSA) has given notice five major national media (Europe 1, France Inter, i-TV, BFM TV and LCI) which greatly exceeded the time allowed the Socialist Party between July and September last. While the rule of respect for pluralism provides that the parliamentary opposition must have a talk time of at least equal to 50% of that given to the majority bloc, the three news channels went off the counters with talk time 146% for i-TV, 142% for BFM TV and 130% for LCI.

Two national radio stations also sentenced to a yellow card. Europe has a wide-open its branch in PS with a talk time of 152%. Even France Inter, a radio public service has been formally for giving a talk time of 129% in opposition.The strings are warned if they reoffend, they face penalties!

"A special alignment of planets"

Convened Monday to CSA, those responsible for these chains are prohibited. This imbalance is due to broad "a special alignment of planets" in the news.

The DSK affair hit the headlines all summer, in September, the Senate shifted to the left and the Socialist Party held its primary. Two of the primary debates were broadcast on news channels, i-TV September 28 and October 5 BFM TV. The gap has even peaked in late August. Thus, i-TV spent 28 hours at PS 40 in July and August against 11:46 for the majority bloc.

The UMP had warned. Franck Riester, the national secretary for communication of the UMP had according to Jean-Francois Cope sent a letter to the CSA two weeks ago.He asked to see the imbalance of talk time and draw the consequences.

"Today, the CSA has highlighted what we said for weeks without being heard," says one in the entourage of Jean-Francois Cope. "This case is an opportunity to reflect on the rules. We were surprised by the impact of primary socialist. But I refute the idea that we are a party line. Instead, we have an image of independence online pay day loans. If the UMP held a primary, we would have done the same coverage, "said Alain Weill, CEO of NextRadioTV, parent company of BFM TV.

Wednesday, Michel Boyon, the president of CSA, and Christine Kelly, one of its members, recalled that "respect for pluralism of time is a constitutional issue and not to derogate pretext of a strong current. " "The senatorial primary and PS were predictable.Chains would have anticipated. This is not the fault of having prevented, I have met on 1 July to talk about, and late August to warn them, "said Christine Kelly.

No compensation

The CSA, responsible for enforcing pluralism in the media, has even been tolerant. "The 50% of time is a floor. The CSA was prepared to accept reasonable overruns due to the news. We could tolerate a talk time of 70%, 80% or even 100% exceptional, "said Michel Boyon. He reminded the rule for newspapers for information, speaking time is counted in three months. After abuse from July to September, the counters were reset for the period 1 October to 31 December."There will be no compensation for the excesses of talk time recorded in the previous quarter," said Michel Boyon.

Dialogue and anticipate

The CSA refutes the idea that the rule of pluralism is inadequate to news channels. Proof: France Info has not been formally general as his cousin was the France Inter. But difficulties exist.

The news channels should repeat the same news in their 45 or 50 daily newspapers. And each time a Socialist head is much talk time counted.

"The rules exist and we must respect them. For the future, it will interact intelligently with the CSA and better anticipate, "says Catherine Nayl, Director of Information of the TF1 Group. "But this is not always easy. And the interview with the DSK JT 20 hours of TF1 September 18 was widely reported on JT LCI. "

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G20: Paris seeks to prevent patterns of tension

Saturday, October 15th, 2011

A sequence at high risk for economic diplomacy opened on Friday in Paris with a G20 Finance Ministers, which ends in mid-afternoon today. The summit precedes the meeting of European heads of state, October 23 in Brussels, to enable Europe to get united at the top twenty richest countries in the world, at Cannes, 3 and 4 November. The road is marked. But after the race progress is uncertain. The subjects of accumulated tensions between developed countries, amid Sino-US tensions around the issue of exchange rates.

Aware of the pitfalls, Paris, who chairs the G20 seeks to avoid the reasons for tension. First objective: to show that Europe is determined to solve the crisis of its debt, which raises concerns around the world.To do this, nothing better than to show the strength of the Franco-German couple at a luncheon on Friday at the Elysee, bringing together around the president, the French finance minister and Baroin his German counterpart Wolfgang Schäuble.

"We have made good progress on the path to find how to package a comprehensive and lasting agreement," said the French way out. For Baroin, progress has been made "on the joint bank recapitalization," he may say no more.According to European sources cited by Bloomberg, the euro area is working on the assumption of a default of 50% of Greek debt and would have identified seven options to boost the European Financial Stability Fund (EFSF), from the processing bank the simple assurance of securities issued by the countries most vulnerable.

Individual Solutions

Paradoxically, this sacred union between France and Germany is no longer visible in the markets bad credit personal loan lenders. Yesterday, the spread between ten-year French and German was 93 basis points, to the detriment of the former. Never since the creation of the euro area, France has borrowed as much from Germany even though the absolute rates at ten years French remain historically low.In the eyes of financial markets, it shows the weakness of leeway in Paris, to boost the EFSF or possibly refinance its banks.

The other cause of tension that the French Presidency is to avoid global order. At their working dinner last night, finance ministers from the G20 should discuss ways "to ensure global growth strong, sustainable and balanced", as agreed for three years. But unlike previous summits, where everyone was asked to revive its economy, the solutions will be this time individual. "At Cannes, each country will come with two or three steps to support its economy depend on the fiscal space of each other," says Bercy. What display a facade of unity.

However, the Twenty will not avoid the reasons for tension.The heaviest between China to the United States, since the passage by Congress in Washington, a bill denouncing the undervaluation of the yuan. The newest arrived yesterday: the emerging propose strengthening of $ 350 billion financial capacity of the IMF for help, among other things, to finance Europe. A proposal that has received a plea of ​​receiving U.S. Treasury Secretary Timothy Geithner, for whom the IMF has "largely sufficient resources to deal with the crisis."

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