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The euro at its highest since December 2009

The European currency is worth more than $ 1.48. The greenback is sealed by the zero rate policy by the Fed.

The euro remained at the highest Friday, April 29, at levels seen since December 2009 against the dollar weighed down by the absence of any prospect of a rate hike and ill-digit economic growth. Around 0600 GMT (0800 Paris) the euro was at 1.4837 dollars against 1.4822 dollars around 2100 GMT on Thursday night. The euro also regained ground against the Japanese currency to 121.02 yen against 120.74 yen Thursday.

"The weak dollar is partly to continue until the Fed chooses the policy of caution rather than risk everything to tighten (credit) too soon," analysts have estimated at Phillip Futures in a report. "Lax monetary policy has been a scourge for the dollar and a boon to the euro has gained nearly 11% against the dollar this year," write the analysts.

The U.S. central bank left unchanged its no surprise interest rate between zero and 0.25%, a level where it was set in December 2008 to help an economy in a recession. The few voices upward in the Committee's monetary policy the Fed sided with the majority in voting unanimously for the status quo for showing traders that the Fed is not ready to change course.

With rates near zero for an indefinite period, the greenback less attractive than other currencies more rewarding, as the euro, especially as the European Central Bank (ECB) has conducted an initial increase in its rate in April to fight against rising prices.For its part, the ECB intends to continue tightening its monetary policy in the coming months, despite lingering concerns about the fiscal health of some fragile countries of the euro area, like Greece, Ireland, and Portugal.

Another source of pressure on the greenback, the U.S. GDP figures released Thursday confirmed the slowdown in the economy of the United States in the first quarter, but this bout of weakness is seen for now as not to be a passenger . According to the first estimate of Commerce for the months January to March, the country's gross domestic product grew only 1.8% annual rate, while growth had been 3.1% during the fall.

The sharp weakening of the U.S. dollar has also led to a surge in price of an ounce of gold, awarded for the first time above the threshold of 1,530 dollars.Around 0600 GMT, the pound sterling regained slightly against the euro at 89.02 pence per euro, and against the greenback at 1.6666 dollar. The Swiss franc fell against the European currency to 1.2955 Swiss francs per euro and was steady against the greenback at 0.8731 Swiss francs to the dollar.

PS's attempt to pay more taxes to Total failed

Socialist senators filed a bill to repeal the device which allows Total and Vivendi of not paying tax on companies in France. Their text was rejected. The bill of PS on tax justice has been denied in the Senate.

The case of Total, accused by the opposition to pay no corporate tax in France when he reached 10 billion euros in profit in 2010, was mentioned Thursday in the Senate during the consideration of a proposed law (PPL) PS on tax justice that was denied."Total and Vivendi Why do they not pay corporate tax at all?" Asked François Rebsamen, a close associate of Francois Hollande, who also raised the tax issue in his campaign speech the night before to Clichy-la-Garenne.

"The rate of corporate tax is 33.33% but the actual rate is 22%," said Senator-Mayor of Dijon, in consideration of the PPL has been postponed. These arguments have not moved the government, represented by Patrick Ollier (Relation with Parliament), who attacked the project in return for the PS 2012: "More and more public spending and increasing taxes, I do not think that this is the real way to stimulate investment. " "Everything is done today by the government to encourage business investment," said Mr.Ollier citing the research tax credit (CIR): "It is effective, one euro of aid results in more than one euro spent in research."

"A Minimum Tax"

Created in 1983 and relaunched in 2008, the CIR is a tax shelter that cost four billion euros. It allows companies to deduct from their income tax (CIT) a portion of their investment research. In the last budget debate, parliamentarians UMP and PS have tried in vain to limit tax cuts to companies through the use of CIR by subsidiaries. In his bill, the PS proposed to modulate the corporate tax with the profits reinvested. This is one measure of project PS 2012.

Senators PS François Rebsamen François and Marc also wanted to establish a "minimum tax" for businesses. Expected revenues: 10 billion euros.They also suggested the repeal of the regime "of worldwide profits, which allows French multinationals to deduct losses from their foreign profits of their company profitable (what are Total and Vivendi). Expected revenue: 450 million.

Nexans improve its margins despite rising copper prices

Nexans announced Wednesday a 13% increase in sales in the first quarter and improved its profitability despite the rising price of copper has increased the debt over the period.

The specialist cables, which in February 2011 was a return to a growth of over 5% of its sales and a continued recovery in its operating margin to 5.5%, achieved on the first three months of year a turnover of 1.754 million euros.

A non-ferrous metal prices constant, the turnover amounted to 1.129 million, up 13% from one year to another at constant exchange.

The first quarter is a "confirmation of improved market conditions on all trades," said Nexans in a statement.

The group also reported an improvement in profitability over the period, particularly in industry and construction, reflecting the recovery in volumes, unspecified figures on this improvement nor its annual targets.

At end-March 2011, net debt amounted to 307 million euros against 144 million at end December 2010."This increase is explained partly by the sharp rise in copper prices since the beginning of 2011 and half by the acceleration of activity during the quarter," the company said.

The action was led Nexans increases the SBF 120 Tuesday after crossing a threshold important technique. It closed at 73.10 euros, giving a market capitalization of around two billion euros. Since the beginning of the year, the stock has taken almost 25% after a gain of about 5% last year.

Barrick concluded the acquisition of Equinox, coveted by Minmetals

Barrick Gold Corp. announced Monday it had reached an agreement to buy the Australian Equinox for more than 7 billion Canadian dollars (5 billion), outdoing an offer from China Minmetals Resources.

The gold producer said that Equinox had accepted the price of 8.15 Canadian dollars per share, a premium of 8.7% over the closing price on Thursday.

Barrick added that in this transaction, Equinox will also withdraw its offer on the copper producer Lundin Mining.

Attracted by the assets of Equinox in copper in Zambia and Saudi Arabia, Minmetals Resources had proposed earlier this month to 6.5 billion Canadian dollars, or seven Canadian dollars per share.

Conflicts of interest: ministers have published their statements

All members of the government are subject to the new practice of "declaration of interests", which refers to their investments and their professional background. They are often sketchy. Christine Lagarde Minister of economy remains, Finance and Industry in the Fillon government III. Baroin meanwhile remains Minister of Budget, Public Accounts, the Civil Service and State Reform. He also became the spokesperson for the government

Financial investments, employment history, positions held during the three years before joining the government: all the ministers on Thursday issued a "declaration" of honor, often sketchy, to prevent possible conflicts of interest.

This delicate question of conflict of interest in politics is suddenly back on the front of the stage from the case-Woerth Bettencourt in the summer of 2010 and during the October release of a book by Martin Hirsch, who pinned members the majority as Jean-Francois Cope and Gerard Longuet.

Pending submission of a bill expected before mid-June, and the creation of a position of "compliance officer" in the Assembly, Matignon sent in March to all members of the government to fill a questionnaire " of honor "for more transparency. These are about two pages of questionnaires, completed by Prime Minister Francois Fillon, and all government officials who were posted Thursday morning on the government website.These "statements of interest", common in Anglo-Saxon as the site of the Government, does not identify all the assets of ministers, but only those whose value is likely to be directly influenced by government decisions. The real estate and are not mentioned. Similarly, Ministers should declare the only holdings in excess of 5000 euros or 5% stake in the structure concerned.

Without providing detailed figures, the ministers seem to have played the game, even though many answers boil down to a simple "None". François Fillon reported as holding shares EDF and Credit Agricole, which "management is entrusted for the exercise of ministerial duties to an Authorized Dealer.

Similarly, the Sports Minister, Chantal Jouanno says owning shares Pernod-Ricard and the Minister of National Education, Luc Chatel, a stock savings plan (PEA) in agricultural credit.

The Minister of Agriculture, Bruno Le Maire, has its side shares in mutual funds associated with the Rothschild Bank.

By investing in a small software company, Applicatour, the economy minister, Christine Lagarde, has in turn introduced a device used by law Tepa on purchasing power, she had herself brought in 2007 and allowing tax exemptions in case of placement in an innovative society.

As the Foreign Minister, Alain Juppe, he holds a life insurance contract.

Secretary of State for Health, Nora Berra owns shares in a "Limited food.In case of full Mediator, she also recalls that she was a physician in the department of medical affairs, Sanofi Pasteur – MSD until February 2009.

Gerard Longuet, the defense minister, says his action in a consulting firm, Sokrates Group, "a tool in sleep," according to his declaration of interests.

His colleagues on the Budget and Foreign Trade, Baroin and Pierre Lellouche, recall their past lawyers.

The property of the spouse and minor children are part of the statement but have not been made public out of respect for privacy. The case had yet Woerth partly tied around the hiring of the wife of the former budget minister, Florence Woerth, a company that manages the fortune of billionaire Liliane Bettencourt.

Soaring food prices: towards new "riots"?

Rates of food to reach new record globally, following growth of over 36% in one year. The risk of repeating the "riots" of 2008 is not negligible. Analysis of the situation with Philippe Hugon, research director at Iris. A food distribution in Sudan.

In a report entitled "The volatility and high food prices continue to threaten the poor", the World Bank is sounding the alarm. Soaring food prices, which have returned to their 2008 levels, affects millions of people in developing countries and particularly in Africa. Riots against high living costs have already occurred in Uganda in recent days.Decryption with Philippe Hugon, author of The Suds in the crisis (ed Armand Colin, 2009) and research director at the Institute of International and Strategic Relations (IRIS).

What explains the sharp rise in food prices last year?

Philippe Hugon: One is a double growth in world demand for food, with both the increase in world population and creation of middle classes, needs new, ever more important in developing countries. Then there is an unstable supply the global marketplace. Agricultural policies at the local level, such as Pac for the European Union will influence the level of global stocks. There is also increasing competition from biofuels, which reduces the surface area of ​​food crops and thus the amount of available reserves.Finally, speculation about agricultural commodities is also involved in raising tariffs.

The situation resembles Does the food crisis of 2008?

Yes. With oil prices high and high speculation about food. There are such countries that block the flow of their production in anticipation of higher classes, as did the Philippines in 2008. And as always, these are developing countries that are most affected.

What are the solutions that can make international institutions?

I think the posture of the IMF and the World Bank is not the same since 2008. These institutions will be more responsive today than three years ago. Several solutions are available to them. First, there is the possibility to control the margins on speculative markets while monitoring the prices of foodstuffs for export.Some countries may also empty their stocks and alleviate the global market. Finally, in an emergency there is always the solution to distribute food to the school populations of the countries in difficulties. Although this is not ideal.

What are the areas most at risk?

Again it is Africa which is the continent most affected. Niger is highly vulnerable to soaring prices, sub-Saharan Africa, particularly in the east, and is involved in West Africa tensions in Ivory Coast have also contributed to higher prices, even if economic circuits have recovered thanks to neighboring countries such as Ghana.

Chairman of the purchasing power he failed?

Nicolas Sarkozy was elected in 2007 on the rising purchasing power. Four years later, when the presidential race of 2012 is launched, the French are disappointed. Explanations. President Nicolas Sarkozy visited Tuesday, April 19 in the Ardennes to talk about purchasing power.

In 2007, Nicolas Sarkozy promised the French to be the "president of purchasing power". Today, one year's presidential election, the subject makes a comeback on the political scene. And for good reason: according to a recent poll ViaVoice, purchasing power has again become the primary concern of the French, even before unemployment. Sign that Nicolas Sarkozy has failed? The answer is not simple.

How has the purchasing power since 2007?

A priori, there has been increasing, even in 2008 and 2009, years when the economic crisis has made the most havoc.According to Insee, the purchasing power of households' disposable income (income that is available for consumption and savings, after deducting taxes and social) gained 3.1% in 2007, 0 , 4% in 2008, 1.6% in 2009 and 1.2% in 2010. These figures must however be balanced by changes in growth and household composition. Thus, the purchasing power per unit of consumption, less often felt distant from the household to the extent that macro-economic revenue, has evolved differently: +2.4% in 2007, -0.4% in 2008 + 0.8% in 2009 and +0.4% in 2010. In the first half of 2011, INSEE estimated that the gains in household purchasing power will remain low (+0.4%).

Is it thanks to Sarkozy that purchasing power has remained more or less?

Yes and no.Not because the key measure for the five-year purchasing power, namely the tax exemption of overtime – an illustration of the campaign slogan "work more to earn more" – has borne the brunt of the crisis: after rising in 2008 their numbers have declined sharply in 2009. Gains in purchasing power for affected employees – less than a third of French employees – are also questionable (150 euros on average per month by the government, only 30 euros according to INSEE). In 2010, overtime hours are divided up. But the problem is that during periods of low activity, this feature allows firms to avoid hiring.

In fact, the very relative increase in purchasing power has been largely supported by the safety net of social benefits represent (+3.5% in 2008, +5.3% in 2009 and 3% in 2010 ).But it is true that the measures taken under the recovery plan (premium of active solidarity, prime beneficiaries of the allowance for school and deletion of the last third of the income tax for households) have alleviate the tax burden on households. But these measures have not been renewed the following year.

Yet the French still have the feeling that their purchasing power decline …

From 2000 to 2010, there is indeed a growing gap between what INSEE said on the changing purchasing power and what the French perceive. The paradox is that INSEE measure the purchasing power of the French way and not that of all French.As explained by economist Alexander Delaigue in a video, if we return to Bill Gates in a bar where ten people, through the power of the customer is going to explode, even if ten customers has remained stable. The real problem, according to Alexander Delaigue, is the evolution of income inequality in France. Proof: In 2008, the 20% of people living at the lowest hold 9% of the total mass of revenue against 38% for 20% of the wealthiest.

Why the subject he returns today on the carpet?

After two years of belt-tightening in wages, the French now have the impression not to take advantage of economic recovery, initiated in 2010 and accelerating in 2011.According to INSEE, the pace of wage growth this year will be identical to that of 2010, that is to say, the lowest since 2000 – year of consecutive frost to the generalization of 35 hours. The basic monthly salary should increase by 1.8% in the first half, 0.3% taking into account inflation. The average salary per capita (base salary + bonus and overtime) in the private sector would increase it, in real terms by 0.4%. Concurrently, the prices of energy and food prices soaring, while those dwelling ablaze.To reduce the public deficit, the government also announced the elimination of many tax loopholes (end of the tax credit on real estate interests, heavier taxation on estates at the end of the tax credit for employment at home, etc..), which will result in higher tax burden (+1.8% in the first half of 2011 after 2.6% in 2010).

What is the government today to allay their fears?

The priority is to reduce debt, its room for maneuver is limited. He can no longer afford, as in 2007, to tax breaks. Therefore the tax shield has been repealed but the ISF remain. He also refused to give a boost to minimum wage or raise the salaries of civil servants, two levers effective incentives to increase wages.Result: it just announced a series of bandages – upgrading the kilometric scale, freezing the price of gas, key basket, etc.. – The strongest of which, the payment of a bonus to employees of companies that pay dividends, could pschiiit very quickly.

Johnson & Johnson would discuss the purchase of Synthes

Johnson & Johnson has begun discussions to take over the Swiss manufacturer Synthes medical equipment for an amount that could represent $ 20 billion (14 billion euros), officials said a source close to the situation.

At this price, the transaction represents a premium of 11% compared to the current capitalization of Synthes, about $ 18 billion.

The transaction would allow the U.S. to diversify its activities in the medical field.

The source however said the talks could still collapse.

The medical device industry is undergoing a major consolidation trend caused mainly by the interest shown by major pharmaceutical groups seeking the parade at the expiration of patents on their drugs more profitable.

Synthes closed Friday up 6.2% on market rumors stating the interest of another group, the American Medtronic, also a specialist in medical devices.

J & J, which has $ 19 billion of reserves, could not be reached for comment.

Strauss-Kahn said the IMF must help Egypt and Tunisia

"Our role is to provide countries with the money that is not available for all sorts of reasons," says the head of the IMF. The IMF chief, Dominique Strauss-Kahn said at a conference here at Bercy in June 2010.

The Director General of the International Monetary Fund, Dominique Strauss-Kahn said Friday that his agency was "here to help" Arab countries like Egypt and Tunisia, by providing the funding they require.

"We learned from what happened in the Near and Middle East and North Africa," said Strauss-Kahn at a conference on this region, at IMF headquarters in Washington. For Egypt and Tunisia, theaters recent revolutions, "he continued," some sources of income, tourism for example, could be lower than they were last year. ""What is important for us if one looks to the future? It is to see how we can help" and "we're here to help," he said. He added: "Our role is to provide countries with the money that is not available for all sorts of reasons."

"Nothing can be accomplished in the fight against inequality, job creation, without growth," he felt the director of the IMF. "We can build together a better future for these countries. And it is not only important for Egypt and Tunisia, it is important for the world because this example is an example that will have great impact" , "he said.

The IMF was charged Thursday in an "economic assessment" that should serve as a basis for using five international financial institutions aimed at supporting the aspirations of Arab peoples to a better economic future. Mr.Strauss-Kahn stressed that he would impose on any country from its lending institution: "We are not bankers looking for customers [...]. We do not come from abroad as an economic dictator and say this is what you must do. "

He also called for measures to recover "macroeconomic stability". "For a democratic revolution anywhere in Africa, the Middle East, Latin America [...] it is easy in hindsight to say here, we'll spend a lot of money, we'll subsidize many people, "he said. "If the Arab revolutions must be milestones in history, and I think this may be the case, then I believe that success depends on building democratic institutions, along with organizations representing employees" he said.

The Governor of the Central Bank of Tunisia, Mustapha Nabli, who attended the same debate has been evasive on the question of a loan application to the IMF. "The question is not whether we need funding. Any funding can be good and can be bad. That's the way it is used. It may be corruption, you can have a mismanagement, "he said. "That is why the democratic process is so important," he said. "This is not an easy path ahead."

A better than expected first quarter for Danone

Danone on Thursday confirmed its 2011 targets by announcing an increase of 19.6% of its sales in the first quarter thanks to the synergies of integrating Unimilk in fresh dairy products in Russia.

The food group has achieved quarterly revenue of 4.757 million euros, against 4.642 million expected by analysts polled by Reuters.

On a comparable basis, sales were up 8.5%, while analysts expected organic growth of 6.8%.The increase in volumes was 5% against 4% expected, and the price effect of 3.5% against 2.90%.

The group anticipates an increase in the total costs of packaging materials and 6% to 9% on average in 2011, with a larger increase in the first half because of comparators 2010.

It still provides, on a comparable growth in its turnover by 6% to 8% and an increase in its operating margin of about 0.20% through the synergies of integrating Unimilk.

So it will materialize in the second half, while the operating margin for the first half will be down slightly compared to the same period of 2010.

Finally, Danone aims to grow its free cash flow consistent with the goal of 2 billion euros for 2012.