Financial, Business, Personal Finance News

A provision lies with the first half of Remy Cointreau

Remy Cointreau has released Tuesday for the first half ended in late September up 23.7% of its operating income, driven by the cognac, but a decline in net income after a provision of EUR 45 million for impairment of Metaxa.

The number two French wines and spirits, owner of Remy Martin cognac, Cointreau liquor and champagne Piper-Heidsieck, has recorded a half-year EBIT of 81 million euros, he said in a statement.

Its net profit after minority interests amounted to 14.1 million euros, against 39.8 million a year earlier.Without the provision for Metaxa, who suffers from the Greek crisis, this result appears to 47.5 million.

Turnover, published October 21, has increased its share from 18.3% to 428.2 million euros.

The operating margin was 18.9%, an improvement compared to 18.1% last year.

For the entire year ending in late March 2011, the group merely states that it will continue its "strong growth in markets with high potential" and will concentrate its investments in the development of its international brands in high-end segments.

COGNAC STILL MOVES IN CHINA

By activity, the EBIT of cognac increased to 71.5 million euros (+45.6% as reported and +29.5% organic).The branch, which benefits from its development in Asia, particularly China, saw its operating margin increased to 28.8% against 26.9% in 2009.

The United States, the largest market of the company, saw a market recovery in the second quarter.In Europe, strong performance, with double digit growth, primarily from Russia and Travel Retail.

The EBIT of liquors and spirits decreased by 18.6% (-25.5% organic) to € 21 million mainly due to the impact of lower sales of Metaxa in Greece and the increased investment for Cointreau.

The champagne, which envisages the transfer Remy Cointreau, is losing $ 2.8 million, against a loss of $ 3.5 million a year earlier.

Net debt fell to Remy Cointreau 484.7 million euros compared to the level of March 2010 (501.4 million). The ratio of net debt to EBITDA bank came out at 2.78 to the end of September "in significant improvement over March 2010.

Finance ministers agree aid plan for Ireland

The plan for emergency aid of 85 billion euros adopted Sunday by finance ministers of the European Union was designed to help preserve the financial stability of the euro area, "said Jean-Claude Juncker.

The president of the Eurogroup of finance ministers from the eurozone announced the agreement after talks in Brussels.

He said the plane to Ireland included a restructuring of the banking sector and fiscal reforms and the conditions that Ireland gets the help would be formally adopted on December 6 and 7.

The Irish government said the average interest rate combined annual loans would be around 5.8% per year.

For a tax participatory

In this column, Andrew Urban, Doctor of the University of Paris I Panthéon Sorbonne, offers to let taxpayers choose themselves the allocation of a portion of the income tax.

The income tax in France represented 19% of revenue in the state budget in 2009, a proportion that varies little from year to year. VAT accounted for 47.5%, the corporate tax 14%, etc..

For a complete presentation: andre.urban @ club-internet.fr

This finding suggests a possibility of unexpected reform: let taxpayers choose themselves the allocation of a portion of the income tax to a particular item in the state budget without amending the budget balances! The fourth, for example, their income tax could go to that department, joining the other three quarters of the 81% tax not applicable, can in themselves reduce any imbalance.Indeed acclaimed departments no longer have to be financially, the entire balance would look by sliding on expenses not yet funded. So even if the French neglected national defense spending, for example, their choice would have no consequences for the reasons indicated proportions.

The tax would include boxes representing the major tasks of the state budget, such as education, security … or repayment of debt; boxes that the taxpayer could check. Imagine that he chose justice: he would have a role in that it is properly done. The only risk of drift would occur if a disproportionate number of French plebiscite usually a department with few resources, such as the environment, culture and foreign affairs.This risk, if held true after considering public opinion, would lead to reducing the share of each tax household decisions. Each instance decide the allocation of less than ten, or fewer than five percent of its income tax, not more than a quarter. The measure would have a scope less strong, but the symbol would remain.

The challenge of reform would not allow a majority of distorting the state budget at the expense of some long-established tasks as going to the public interest. It would, in parallel with the tasks incumbent on representative democracy, to introduce to the taxpayer, which no longer content to be viewed today in elections once every five years, part of democracy a little more Direct. Like a majority vote can tolerate a dose of proportional representation.The reform would also seek to restore the tax, including the top off.

It is true that this possibility could not be used by half of the French, the one who pays no income tax. But the measure could be extended to another tax which is paid by everyone: the generalized social contribution (CSG), taking into account that the risk of imbalance for the latter, essential to the financing of social security, is evident . There are actually several solutions that will reduce this risk. Thus, insofar as those who pay only the CSG were not consulted on the income tax, it would be illogical for those who pay income tax are not consulted on their CSG, which would only affected accounts to Social Security.

Further improvement in consumer sentiment in November

French consumer confidence improved for the fourth consecutive month in November despite a strengthening of their concerns about unemployment, according to the monthly survey of consumer confidence survey released Thursday by the INSEE.

The summary indicator of households' opinion on the economic situation rose 2 points to -32, -34 cons in October and a long-term average of -19.

Twenty economists surveyed by Reuters on average expected a rise to -33 of the summary indicator in France, with estimates ranging from -30 to -36.

In November, the opinion of households on their personal financial situation improves significantly past and future, written INSEE said in a statement.

The balance of opinion on the living past is stable while the outlook fell slightly (-1 point) for the first time since June.

The opportunity to make major purchases is stable for the second consecutive month.

In November, French households are slightly more numerous than in October to anticipate an increase in unemployment, the balance of opinion corresponding 2-point win.

He had fallen sharply since early summer (-25 percentage points between July and October), while remaining above its long-term average, said INSEE in its statement.

The survey was conducted among about 2,000 households from 29 October to 18 November.

India's Mahindra buys Ssangyong for 339 million euros

The Indian automaker Mahindra & Mahindra will acquire South Korea's Ssangyong Motor to 522.5 billion won (339 million), said Tuesday it.

Ssangyong, the smallest of South Korean manufacturers, is in administration since early 2009.The transaction is expected to close in March next year.

The announcement of the agreement, widely expected after Mahindra said Oct. 13 that he hoped to seal the takeover of Ssangyong by December, has not prevented the title of South Korea's fall of 4.5% , pulled down by declines of 3.05% of the action Hyundai.

This decline is related to the fears of investors to see a social conflict at work with the first South Korean automaker will result in significant disruption of the production line of cars in South Korea.

For its part, the title Mahindra & Mahindra was little changed (-0.11%) to 6:40 GMT.

Ssangyong, which specializes in 4×4, Renault had an interesting time before the French group renounces to bid in August.

Analysts are skeptical about the possibility of redressing the manufacturer models such as Rexton and Kyron. And the fact that Mahindra has little experience in either the "SUV (sports utility vehicles) or in international sales was unlikely to change his mind.

Ssangyong exports its models to China, Russia, Europe and the Middle East.

Rolls-Royce will equip twenty Airbus Air China

Britain's Rolls-Royce announced Monday it had won a contract worth $ 1.8 billion for the twenty engine aircraft of the airline Air China.

This is the second command obtains the major engine manufacturer in China this month.

The contract provides that ten Airbus 350 XWB future will be powered by Trent XWB engines, and the Trent 700 will be placed on ten A330s, Rolls-Royce said.

Already in November, Rolls-Royce has entered an order of 1.2 billion dollars with China Eastern Airlines during a visit to China from British Prime Minister David Cameron.

Beijing is still the reserve requirements of banks

People's Bank of China (PBOC) announced Friday a new increase in the required reserve ratio of banks, the second in two weeks and the fifth this year, intensifying the fight against inflation.

The coefficient, which applies to deposits that are required to provide the banks with the central bank, was raised by 50 basis points to 18.5% for large banks, a record level.

BPC explains his decision, which takes effect Nov. 29, by a desire to "strengthen liquidity management and control of the money appropriately and emission credits.

Investors, who expected worse, will not have been surprised and perhaps even be relieved.

"This second increase in two weeks suggests that China has every intention of managing price pressures by withdrawing liquidity from the system," said Xie Dongming, an economist at OCBC Bank in Singapore."However, we can also infer that China is cautious vis-à-vis an aggressive monetary tightening."

The Chinese stock market fell nearly 10% over the last six meetings in fear of a tightening monetary magnitude with inflation, which reached a peak of 25 months in October.

They had even more reason to be febrile that the government had announced Wednesday that it would take strong action, up to and price controls to curb inflation.

China raised interest rates on Oct. 19 for the first time in nearly three years, and most analysts expect further increases two to four by the end of 2011.

Increase the required reserve ratio is a more direct way to absorb excess liquidity that fuels inflation.

The latest increase should lead to freeze about 350 billion yen that banks could otherwise lend.

In addition to this measure, Beijing has also ordered banks to curb lending.

These are all decisions that also show that the government has confidence in the dynamism of the Chinese economy, even if Europe and the USA, customers of China's exports, are experiencing sluggish growth.

Beijing accuses Washington of feeding the speculative cash flow to countries emerging after the decision of the Federal Reserve, November 3, to conduct a new quantitative monetary easing (QE2).

These streams feed the inflationary risk, but in the case of China, excess liquidity is inflationary, however, local reasons. Before asking them to restrain, Beijing had urged banks to lend.

This resulted in an unprecedented credit growth and the government was slow to react to absorb the masses of cash that drown the economy.

Saffron does not preclude a hostile bid for Zodiac

President Safran said Wednesday does not exclude a hostile bid for Zodiac after unsuccessful attempts to enter into friendly discussions with its competitor.

Jean-Paul Herteman, CEO of equipment manufacturer specializing in aerospace, defense and security said it was a "possibility" that require more theoretical reflection.

He spoke before a small group of journalists at air show in Zhuhai, China.

"It's not our style but yes, theoretically, this is part of the options, but we must think," he said in response to a question about such a possibility.

He reiterated that the issue should be resolved "shortly".

Zodiac has declined comment.

The Zodiac has reduced its share rise to 1.72% to 52.53 euros to 12.45, after rising by more than 3% in early trading, the market little by believing in the event of a hostile bid.

"We would be surprised by a hostile bid, because it must be remembered that 45% stake in Zodiac is in the hands of family shareholders and some of them will be difficult to convince unless Safran incorporates much cash in his proposal, "said one trader in Paris.

The action Safran lost 1.37% to 21.5250 euros at the same time, after falling more than 4% in early morning to a low of nearly a month.

Chevreux said that if hostile bid, the intervention of a white knight, perhaps American, is not excluded.

Safran, who is convinced of the industrial and strategic rapprochement with Zodiac, has been proposed that an informal way to start discussions. The offer was rejected by the supervisory board of Zodiac Aerospace.

Relations between the two groups have remained tense.

HAMILTON SUNDSTRAND NOT INTERESTED

Another potential predator of Zodiac recently quoted by La Lettre de l'Expansion, the U.S. Hamilton Sundstrand, a subsidiary of United Technologies, said not to be interested in the French group.

"These are speculations.We do not look at all this matter, "he told Reuters at the same airshow Alain Bellemare, president of Hamilton Sundstrand.

Since it has sold its branch of inflatable boats, Zodiac is known for its seats and cabin interior equipment.

Analysts wonder, therefore, the existence of real synergies between Zodiac and Safran, whose business revolves around aircraft building aircraft engines.

Jean-Paul Herteman said he agreed that the electronic systems developed by Zodiac become increasingly important in aircraft design and that a merger would improve the position of Saffron in a market, the aerospace subcontracting, marked by a serious fragmentation of suppliers.

Hostile bids are rare in France, but Jean-Paul Herteman, known for his tenacity, seems to keep the pressure on the competitor.

According to industry analysts, an all-Safran Zodiac would be in direct competition with Hamilton Sundstrand and to a lesser extent with another American, Honeywell.

Safran recently announced the acquisition of U.S. L-1 Identity Solutions to reinforce the security and SNPE Energetic Materials (EMS) and its subsidiaries for their critical rocket propulsion for missiles and military space launch .

Ryanair will adjust its routes under the conditions

The Irish airline Ryanair low cost will continue to move its European operations based tax increases and changes in investment regimes, said Wednesday the new director of development routes.

Faced with conditions considered negative in Ireland, the group has reduced its operations, said Ken O'Toole at the Global Airport Development conference in Dublin.

"We continued to reduce our capacity to face Ireland in the mismanagement of aviation by the government to introduce a tax on aviation at the height of the crisis and the continuing increases in airport charges" , "he said business card layouts.

The first low-cost airline in the world also plans to close in January 2011 the only platform in France at Marseille's Marignane airport, since the French court has before it a pay dispute with its 200 local employees .

The group asked the Justice.

"What is happening in France is linked to the influence of Air France. We opened a platform to Marseilles in 2006, coincidentally at the same time, a decree was introduced in defiance of EU Directive on the rights of transport workers, "said Ken O'Toole.

"It's disappointing because it is essentially an initiative of Paris free business card maker.If the decree was invalid, is it that we would return to Marseille? Yes, absolutely. "

Last week, Ryanair announced a further reduction activities in Germany, in response to a proposed tax increase on passengers.

Several flights will be canceled in 2011 on the nine routes served from Hahn Airport, its largest German platform.

"Inside Job", the film that allows (almost) to learn the truth about the financial crisis

Inside Job comes out on Wednesday in France. Supposed to reveal "the dreadful truth" behind the financial crisis of 2008, the film is largely his promises, with information pickling. Despite some distractions … to see.

"A crime committed within," "Inside Job", the feature of the American Charles Ferguson aptly named. This documentary is to reveal the intention of frightening truth behind the 2008 crisis. Through a series of interviews with major players in American finance, politicians and journalists, the director is trying to retrace the emergence of an industry, finance, who for years would goinfrée on the back of his citizens.

Banks can bet on the collapse of the financial products they sell to their customers. Economists who praise the benefits of deregulation to death.Politicians under the thumb of an all-powerful financial industry … Between greed and irresponsibility, the details of the film feel sick. He recalls for instance that the regulators gave the go-ahead for the Citicorp-Travelers merger in 1998, at a time when the Glass Steagall Act prohibited it yet. Or that the proposed regulation of derivatives was blocked by Larry Summers, then assigned to the Treasury. The numbers also speak for themselves. Between 1998 and 2008, the financial sector has spent more than 5 billion dollars in lobbying fees and financial donations. In less than 10 years, subprime loans increased from 30 billion per year to over $ 600 billion …

The film spares nobody. Governments especially Reagan to Clinton, through the Bush father and son, were all left to do. The Fed, however, regularly alerted by consumer associations, has only promote deregulation.Like the SEC, which has never really held its investigative role, or rating agencies paid by the banks which it noted the financial products. The academic world does not escape the terrible review. The film tackles in effect to an incestuous relationship between banks and leading academics, who make money on the sly in the boards of companies. Larry Summers, who became president of Harvard in 2001 after passage of the Treasury declares a wealth of between 16.5 and 39.5 million dollars. "No comment," responds Martin Feldstein, who served on the board of AIG while teaching at Harvard. Two years after the explosion of the financial crisis facing the camera, the big heads of Wall Street who have accepted the confrontation still refuse to acknowledge their responsibility …

A film with few shades

This is the "best horror movie of the year," estimated Thierry Frémeaux Cannes, the festival director. A disaster movie indeed deserves a little bit of nuance. To view this effective demonstration, one might be tempted to think that the American financial elite is solely responsible. False. The subprime existed elsewhere in Spain, for example. And European banks have never spit on subprime either to reap more profits. As for the European Union, seen as the good student of the markets, it is certainly not exempt from all criticism. The reform of European regulation, yet the example shown in the film, is still not completed, when the United States has already been adopted long ago.

Another surprise of the film, made beautiful by Christine Lagarde, who reportedly warned Hank Paulson in February 2008 from the disaster that was being prepared. Is this the same person who in August 2008 announced that the brunt of the crisis was past? As a visionary, we've seen better! The director also seems to forget too quickly that France has not been further than the United States in the process of limiting compensation. And she also bailed out its financial institutions, without much consideration. The vision of China, perceived as the victim of financial crisis, is also surprising. Even today it is ready to make any concessions to save the world economic system.

On the form then the film also has its limits.Was it really necessary to interview a mother twice bawd for her testimony about prostitution and drugs on Wall Street? The numerous white interviewees are sometimes embarrassed to think of Michael Moore documentaries. Nobody likes it or not … As for the end, it is outright ridiculous. "There are things that are worth a battle," argues Matt Damon, the Oscar-winning commentator on a closeup of the Statue of Liberty!

Anyway, this film is worth a look. Even the uninformed public should find the elements to understand the crisis. And better understand the future. Because as said Charles Ferguson, the chief instigators of the disaster of 2008 still hold the keys of power. Despite its attempts to control, Barack Obama was surrounded by the same people who defended the excessive liberalization.Timothy Geithner, who played at the Fed as a disruptor, is currently the Treasury. His chief of staff is Mark Petterson, a former lobbyist for Goldman Sachs. As for Ben Bernanke, there is always at the head of the Fed …