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A French 31-year involvement in the case of Goldman Sachs

Saturday, April 17th, 2010

Goldman created a financial product

Since 2004, Wall Street has found a new Eldorado, CDOs (collateral debt obligation). These financial products assembled from scratch, called "synthetic" because they only reflect the value of other real assets, they, as loans granted to low-income households, the famous subprime. In 2007, Goldman Sachs creates such mass-produced and dubbed "Abacus".

The needs of a large customer

Paulson & Co is the time a small hedge fund. It will become one of the biggest thanks to its bet on the decline in U.S. housing. In the year 2007, his boss will cash alone a profit of some 3.7 billion dollars and will save 15 billion to its customers! The SEC in 2006, Paulson & Co has the right intuition that the subprime market is fragile. He put on his fall.Its Paris can take two forms: buy CDS (credit default swaps), the "insurance" against default that will naturally grow in value when the risk will increase, or "short" CDOs, that is ie sell futures without holding them.

A French in the loop

Paulson & Co. is not alone in feeling the wind change on CDOs. At Goldman, you think too. This is particularly the case of a young French – the "Frenchies" are highly respected in the business of structured finance – Fabrice Tourre. The banker of 31 years, citing the SEC's complaint, went on the benches of Henri IV and Louis-le-Grand, has joined Goldman Sachs after Stanford and Central Paris. It is he who makes and sells the Abacus series. On January 23, 2007, he sent an email to a friend: "more and more leverage in the system.Any building can fall at any moment now … only surviving potential, the fabulous Fab, standing amid all these complex transactions, (…), exotic we've created without necessarily understanding all the implications of these monstrosities. "

Fraud

The fund Paulson wants to "short" of CDOs, the most fragile, if possible. Goldman is going to create. According to the SEC investigation, the investment bank has simply made the model 2007-AC1 Series Abacus according to the wishes of his client. Paulson has directly participated in the selection of loans that this CDO would be representative. The bank was then entrenched behind an independent firm, ACA. This firm, which appear to have selected the credits of this CDO when it will be sold to investors.

Goldman said that "ACA has selected the benchmark portfolio, omitting any mention of the fact that Paulson, an actor whose interests were contrary to those of investors, had played a significant role," says the SEC to justify its accusation of fraud.

In fact, few investors have bought shares knowing that a heavyweight like Paulson urged to Paris on their fall! ACA would for his part acted in good faith.While representatives from attending meetings Paulson – "surreal" by Fabrice Tourre – with those of Goldman, but suggesting that hedge funds also invest in shares of CDOs.

Victims

SEC's complaint cites two main victims of the banks handling it denounces the German IKB, the subprime crisis has brought to its knees and the Dutch ABN Amro, fully nationalized today … The first would have lost 150 million, almost all of its investment. As for ACA, it is off … "Investors of Abacus 2007-AC1 lost more than one billion dollars. The opposing positions on CDS Paulson reported a profit of approximately one billion, "says the SEC.

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Europe draws 30 billion for Greece

Monday, April 12th, 2010

It took two peaks and a half-dozen ministerial appointments, but the sixteen countries of the euro are finally able to determine in detail the safety net for Greece. The EU scheme officially operational since Sunday, includes up to 30 billion euros in bilateral loans to an interest rate target of about 5M for a term of three years.

"Until now, the Sixteen had taken decisions in principle, we now show that there is money behind," said Jean-Claude Juncker after a video conference involving Ministers Euro zone finance. "All the tools are in place and operational immediately," said Olli Rehn, European Commissioner for Economic and Monetary Affairs.

Athens has not yet decided to use this financial plan. But it was time to measure reliability.Greece, seriously diminished his credit, is to resume tomorrow's Calvary borrower, raising 1.2 billion of Treasury bills at six and twelve months. Repeatedly announced but never detailed the mechanism difficult to convince the markets for two months. The litmus test is committed immediately. By late May, Athens faces more than 10 billion euros maturity on a debt estimated at 300 billion. It must still find 32 billion before the end of the year. The figures broken down on Sunday in Brussels, more generous than expected, seem a priori to the scale of the challenge.

For 30 billion that could unlock the Sixteen would be added the joint contribution of the IMF. If we follow the rule laid down by 2/3-1/3 the last EU summit, Greece could therefore be based if necessary on a cushion of more than 40 billion euros in loans this year.No estimate has yet been advanced for years.

Mechanism triple expansion

With an interest of around 5% on loans for three years, the Sixteen still follow the principles laid March 25. As a last resort, Greece could be financed at a lower price than it does now on the market (more than 7%), easy payday loans. But she would not receive any subsidy-provided imperiously posed by Germany, nor any advantage over other heavily indebted countries like Portugal, Ireland, Spain or Italy. If the ETF would be implemented, "Greece would be encouraged to return quickly to the market" to finance themselves forward Jean-Claude Juncker.A hypothesis that will be realized when Athens will be able to raise money at rates lower than the European plan.

Faced with deadlines looming, the Greek prime minister, George Papandreou, had struck these days on all doors so that Europe finally joins the action to the word. To impress the financial, "we must put a loaded revolver on the table," he said Sunday at the Greek newspaper "To Vima". "The question, he added, is whether the device will persuade the markets (…) Otherwise, it could well be used …"

At the announcement of decisions taken by the Sixteen, the Greek Minister of Finance was confident.George Papaconstantinou welcomed an agreement "very important", confirming that he had not requested the activation of the mechanism: "We believe we can continue to borrow freely on the markets."

It was at Athens that he would take the initiative, confirmed Sunday the Commissioner Rehn. But the mechanism is at least triple expansion. The European Commission, the ECB and the IMF all have their say or their conditions to ask. Finally, the loans would only be released only by unanimous consent of the Sixteen, which gives a veto to Germany. George Papandreou today has a net credible.But it has not finished with the tightrope.

The weather is also a business

Thursday, April 8th, 2010

They are two to share a new market of several million euros, that of "weather-sensitivity. Climpact and Metnext are young shoots. First established in 2003 and the second since 2007. To their customers, especially large groups, they provide indicators on the impact of weather on their operations. All markets are concerned, especially those of energy, insurance or consumer.

Subsidiary to 52% of M?t?o France, Metnext is very active in the energy sector with 16 contracts signed so far. The company works for major energy companies such as EDF or GDF Suez for Poweo as alternative actors or local operators like the Company of heating the Grenoble region.It also offers support services to hedge weather risk, for example with Pierre & Vacances.

For its part, Climpact works for a small score of the food industry such as Nestl? Waters, Lactalis or Bonduelle. For the latter, which is part of its subscribers this year, the company provides 150 per week for clues to help the vegetable processor to manage its production capacity.

Railing against the consumer

It is precisely in this area of food consumption, very sensitive to climatic changes, the two companies now want to strengthen their positions us fast cash. At weekly intervals, and Climpact Metnext have launched bids very close to making available to manufacturers and distributors of hundreds of clues in many product categories.Do not have any data in sales, and the other one signed strategic partnerships with leading market research specialized in sales in hypermarkets and supermarkets. Climpact has forged a partnership with IRI and Metnext with Nielsen. The goal is to use the databases represent cash available to these two panelists to enrich information "weather-sensitive.

In 60 families (solar products, ice creams, soups, water …), and offers 10 indices Climpact weekly (9 regional indices and 1 national index). Metnext has created an Internet platform on which it offers its customers the same battery on geographical indications in over thirty categories of products. Sixty will be available in June.The idea is to help retailers drive more precisely their supply chain to reduce inventory and prevent breaks, one of the weaknesses of the French distribution.

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Minutes Zacharias: pugnacious defense of the former CEO of Vinci

Friday, March 26th, 2010

Three-piece suit, white shirt and dark tie, the former CEO of Vinci, Antoine Zacharias, has always understated elegance of a great boss. Yet this 70-year-old retiree, who wears a hearing aid, had presided at Thursday yet another board. He appeared for abuse of company property before the fifteenth penal court of Nanterre. Specifically, he complains of having put his own men in the compensation committee of the group to inflate his fees have skyrocketed: a severance bonus of 12.5 million euros, an annual retreat of 2 1 million, gains on stock-option 124 million …

Faced with such accusations, it was expected that Antoine Zacharias lose its superb. After all, it is the first French skipper prosecuted for excessive pay, while his business was booming.In fact, he kept his legendary pugnacity and always distills his little quips. When the President, Isabelle Prevost-Desprez, asks him to track his career, thanked the engineer by Vinci in June 2006 took the opportunity to give a few scratches. Guy Dejouany, his former boss at the General Society of waters in the 1990s? "The man was a tyrant. Perhaps the most difficult period of my life. "Alain Minc who sat on the board of Vinci? "He has a big ego."

And as Isabelle Prevost-Desprez do not let them count, this gives rise to a few passages of arms tasty payday loan . Especially when it comes to whether Antoine Zacharias has ensured that the remuneration committee Vinci is completely renewed."Mr Faure, who was sitting there says you have transferred to establish a committee more complacent. So, did you collect? "Asks the president. "No," replied tit for tat the former CEO of the CAC 40. They lie. "

A retreat "exceptional"

Gradually, Isabelle Prevost-Desprez is accumulating evidence that endanger Antoine Zacharias. Thus, it is disturbing that this new committee has ignored the advice of Towers Perrin warned against "inflation risks" associated with a change in the calculation of salary Zacharias.Also troubling that the point of view of the firm Cardif estimating the amount of the pension provided for ex-boss "exceptional" has been ignored.

In response, Antoine Zacharias has a clear line of defense that summarizes in one sentence: "One thing that is ignored by any board, and they do not know an ounce is the pay of the boss. "He received the unexpected support of Vinci, yet civil party in the record. "When they vote earnings for 2004 by Zacharias, administrators know that all this makes up 14%," said Georges Jourde, counsel for the construction group. This morning, it was the turn of the attorney to his indictment. It is surprising that it shares the same view.

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The business climate remains stable in March

Tuesday, March 23rd, 2010

The indicator of business climate has remained stable in March, to 91 points, according to figures released Tuesday by the INSEE. At the same time, the indicator of economic turnaround remains well oriented "for the tenth consecutive month, Insee said.

"The Climate Stabilization mask disparities between sectors: The climate in the industry is improving as he deteriorates in services and retailing," notes the INSEE.

In industry, the index of business climate earns three points to 94 points but remained below its long-term average. Stocks, albeit at very low levels continue to decline, according to business leaders surveyed by INSEE. The outlook for the coming months rose three points.

The situation is worse in services, the index lost two points to 87 points in March, against 89 in February."The economy is faltering," said INSEE and "slow in coming months." Business leaders review "sharply downward their expectations of activity compared to the February survey, INSEE noted.

The retail trade is suffering for its part a slowdown in recent months, particularly in the automobile. The index of business climate in the sector loses two points in March to 98 points. In the construction sector, the index remains stable at 93 points.

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MEDEF: Metallurgy sets its requirements

Saturday, March 20th, 2010

A matter of survival! Frederic Saint-Geours does not mince his words on Thursday night calling for a profound "recasting employers, on pain of extinction. "In an era of increased competition, where companies seek to reduce overhead and streamline their organization, employers can continue to live on and operate under a structure inherited from the postwar period, has hammered the President the UIMM, in closing the third annual convention of the federation. The employers' organization must meet the expectations of businesses by simplifying its structure (…).Remaining fragmented, we are threatened with extinction in the debate and public action. "

Less than three months to designate the future boss of bosses, the first president of the federation MEDEF has actually set a roadmap can not be clearer for any candidate who would boast the support of the UIMM.

More collegiality

For him, this overhaul is necessary for a "governance reform of MEDEF" he deems perfect. "To better represent the enormous diversity of landscape entrepreneurial French, Medef needs a mode more college (… ), which requires an exemplary collaboration with all components and inter-professional ", justified Frederic Saint-Geours, as the text of his speech – the meeting took place behind closed doors.

The roles must be "clearly established" between a president "in entrepreneurial function, a general manager" responsible for services and the thriving community "and a college of elected officials" fully involved in the preparation position papers and public negotiations with the unions. " A thinly veiled criticism of Laurence Parisot, president of MEDEF, full time since 2005, who spent three CEOs in less than two years and who is accused of taking unilateral decisions.

However, no question of leaving the MEDEF, ensure UIMM – which is one of the most important components. Instead, a call was launched "to restore unity around the MEDEF employers'. Not without asking the end of "fratricidal quarrels" with CGPME – which is also UIMM stick – and the architects of the UPA.The "fierce competition" which engage the employers 'confederations' and display their differences "prove" suicidal for the employers and weaken its position vis-?-vis the government and unions. "

The president of the UIMM also wants to end "the milfoil employer" to approximate the structures (territorial chambers, trade associations, chambers of commerce …). Metallurgy promises to lead by example.

Becoming "the spokesman of the unanimous opinion" of the industrial enterprises that were surveyed in preparation for this convention, Frederic Saint-Geours has finally stated intention to develop cooperation with the federations of industry (chemical, textile … ) "on three common issues, including the promotion of an enabling environment for economic and social competitiveness of industrial enterprises and enhancing their businesses.In short, strengthening the "inter-industry level. Quit walking on beds of MEDEF. Again, Laurence Parisot appreciate …

The Cac 40 remains in the red

Tuesday, March 9th, 2010

The Paris Stock Exchange, plunged into the red. After starting the session hause of 0.10%, the CAC 40 continues into negative territory. Around 10:50, the flagship index Parisian loose 0.42% to 3887.16 points. The threshold of 3900 points, is not maintained. The London Stock Exchange is in the same atmosphere: the Footsie lost 0.41% to 5583.56 points while the Dax in Frankfurt Stock Exchange fell by 0.36% to 5854.58 points.

Yesterday, the Paris markets have ended on a slight decline of 0.18% despite opening in the green (0.35%). In Asia, the situation calmed after the euphoria of Monday. The numbers of U.S. employment, less worse than expected, to cease their invigorating effect. Monday already, Wall Street closed haphazardly in a sitting motionless.

The wait dominates before the publication of figures and important clues on the weekend.French side, there will be foreign trade figures for January and industrial output (Wednesday), the French deficit figures, the trade balance and the number of weekly unemployment in the United States (Thursday), and finally, the much anticipated index of U.S. consumer confidence (Friday).

Meanwhile, the trade deficit narrowed in France in January to 3.681 billion euros against 4.155 billion in December 2009, thanks to increased exports of manufactured goods, the Customs said Tuesday. This figure confirms the resumption of trade, but this recovery is much slower than the drop caused by the crisis, observers said.

EADS in the collimator

EADS announced on Tuesday a loss in 2009 of 763 million euros against a profit last year of 1.5 billion.The group expects a 2010 EBIT of $ 1 billion against 2.2 billion (before provisions) last year, and a stabilization of sales to 42.8 billion euros. Furthermore, EADS and its U.S. ally Northrop Grumman said the night they did not submit a bid for the tanker contract from the U.S. Air Force, saying it benefits their competitor Boeing fast cash without a hassle . The title is heavily penalized Exchange: -5,5,23% to 15.05 euros.

The bank also abused: Credit Agricole (-0.98%), Societe Generale (-0.63%) and BNP Paribas (-0.47%) retreated.

April (2.58% to 23.09 euros) on Monday announced an increase of 20% of its net 2009 profit 72.7 million euros. Financial products have more than doubled to 18.6 million.The insurer expects for 2010 a double-digit growth in its gross margin, with a positive impact on its operating margin (13% in 2009).

Total (0.44% to 42.44 euros) yesterday confirmed the closure of the refinery at Dunkirk and the fulfillment of its participation in the construction of an LNG terminal with EDF (+0.63% at 38 15 euros).

In addition, the electrician announced a collaboration with Rosatom, the Russian nuclear energy giant, in the development of reactors for third countries.Other partnerships are being negotiated with Russia in the field of electricity and fuel.

In the process, GDF Suez is in great shape (+1.18% at 27.80 euros) and achieves the best performance of ACC.

Sanofi Aventis (0.84% to 56.22 euros) and Merck announced Tuesday the creation of a joint venture equally owned in the area of animal health together their subsidiaries Merial and Intervet / Schering-Plow. The agreement created should be finalized within the next twelve months.

Eurotunnel (0.61% to 7.75 euro) remained in the black in 2009, with net income of 1.4 million euros but a turnover of 571 million euros, down 16 %. Jacques Gounon, Eurotunnel's CEO, recalls in an interview with Le Figaro, his intention to "market share" in the future. The group will pay the same dividend as last year, ie 4 cents per share."The payment of a dividend reflects our confidence and determination in 2010," commented Jacques Gounon.

Vicat (-0.07 ? at 56.76 euros) will release after the market closes.

"INTERVIEW – J. Gounon, Eurotunnel's CEO comments on 2009 results

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BHP agrees on a price with steelmakers

Monday, March 8th, 2010

Mining giant BHP Billiton ADR agreed with its main customers in Europe, China, India and Japan on short-term sales of coking coal. This agreement puts an end to traditional trading system prices this year among major mining companies and steelmakers.

BHP proposes three options to its customers for contracts on coking coal: an annual listing and every two months for half of the offers, the possibility of reducing tender contracts between quarterly and half, and finally, publication of prices every three months.

According to Macquarie Group, is the first time an agreement on a three-month contract is signed in the steel sector.

Without any contact number, the group said it sold a "significant portion of its volume of coking coal for 2010.JFE Holdings, the second largest Japanese steelmaker, had said last Friday it had agreed to pay $ 200 per tonne over three months. For Jim Lennon, analyst at Macquarie, specialist materials, "the Japanese will prove more flexible on prices." Flexibility which could benefit BHP, Teck Resources, Xstrata, Mechel OAO, Rio Tinto Group, Alpha Natural Resources and Massey Energy.

The new contract for three months, for which Morgan Stanley anticipates a course at $ 222 per ton, beginning 1 April next year, according JFE. One that expires next March 31, is listed at $ 129 per tonne.

On February 26, Energy Publishing, which reports the data supply and demand in the major coal producing countries, has published three price indexes for coking coal."The pricing in the short term will be difficult to manage without a reliable index of the prices of coking coal, which is why the publication of these indexes comes at the right time for the coal markets," said Forrest Hill, President Energy Publishing.

The Greeks in the street, an emergency meeting of EU

Thursday, February 11th, 2010

Against "unfair and ineffective sacrifices, Greek officials Wednesday manifested in big cities. A 24-hour strike was launched by the Union Public Service ADEDY, with more than 300,000 members. Employees of public protest against wage cuts announced by the Socialist government to reduce deficits and thus reassure the markets. Tuesday, Finance Minister George Papaconstantinou reiterated wage austerity measures provided for in the Public Service wage freeze, down 10% premium, 30% decrease in overtime, stoppage of recruitment in 2010, except in the sectors of health, education and security. Labor Minister, Andreas Loverdos, proposed back two years to 2015 the average age of retirement to raise it to 63 years.

In Athens, about 5,000 union members protesting in the rain in the streets, which must be added the separate gathering of 5,000 activists of the union Struggle Front (PAME), an offshoot of the ultra-orthodox communist party (KKE). In Salonika, is counting down nearly 3,000 officers pounding the pavement.

Moreover, tens of thousands of officials have answered the call to strike the ADEDY. Air traffic controllers joined the strike and there was no traffic Wednesday in Greece.

Meeting of Finance Ministers of the euro area

These events occur when the finance ministers of the eurozone plan to meet as Wednesday by teleconference to discuss the situation in Greece, several diplomatic sources.

According to Le Monde, President of the European Central Bank, Jean-Claude Trichet and the chairman of the Eurogroup forum of finance ministers from the eurozone, Jean-Claude Juncker, will join the discussions.

This meeting will be held on the eve of a summit of EU leaders on the issue in Brussels free credit report . At this stage, there is "not agree" on a plan of aid to Greece. The signs, however, a support mechanism for this country is growing. A senior parliamentary Conservative German Chancellor Angela Merkel, Michael Meister, has indicated that preparations were underway in the German Government for an assistance plan.It could take the form of housing provision of bilateral loans to certain countries of the euro area in favor of Greece, to help cope with higher prices for its cost of borrowing on the markets since the beginning of the crisis.The option of an advance payment of EU subsidies to Greece is also considered.

Papandreou lunch with Nicolas Sarkozy

Prime Minister George Papandreou, who visited on Wednesday in Paris, where he has lunch with French President Nicolas Sarkozy had called in an attempt to limit the impact of the strike, officials to "lead by example" to contribute to the crisis.

Furthermore, President Nicolas Sarkozy and Chancellor Angela Merkel Thursday held a joint press conference after the informal EU summit in Brussels, including the situation in Greece, said Wednesday the spokesman for the French government, Luc Chatel. "Under the EU summit, the president will have the opportunity to hold a joint press conference with Merkel on various subjects.I guess the question (of the situation in Greece) will be addressed, "said Luc Chatel in reporting to the press the work of the council of ministers.

"The French government is involved as its European partners on the situation of the euro and the situation in Greece in particular," he said, adding that the Economy Minister Christine Lagarde had "routine contacts with counterparts "on this issue.

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ECB: Greece will "in the right direction"

Thursday, February 4th, 2010

No surprises from Frankfurt. The European Central Bank (ECB) on Thursday left its main interest rate unchanged at 1%. Earlier, the Bank of England also announced the continuation of its policy rate at 0.5%.

In March the Governing Council of the ECB "will take decisions on (…) a gradual lifting of the measures of liquidity [in support of banks] who are no longer as necessary as in the past," said Jean-Claude Trichet at a press conference.

Long awaited on the subject of Greece, Jean-Claude Trichet has held that the fiscal savings by Greece are "not in the right direction.""We are confident in the ability of Greece will take all decisions necessary to achieve the objective" of a deficit below 3% of GDP by 2012, said President of the ECB personal business card . No exceptions will be made for any area countries, "he said.

While Portugal and Spain in turn disturb markets, Jean-Claude Trichet reiterated that it was "crucial" that all countries "respect strictly the exit procedures for excessive deficits."

"According to the International Monetary Fund, the overall deficit of the euro area will rise to 6%", said Jean-Claude Trichet. "The United States will be at 10%, Japan is also at 10%.(…) A more flattering comparison for the euro area! Nevertheless, we exhibit unabsence total of convenience "in the direction of monetary policy," he said.

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