International & World Report

Courted by the stock exchanges around the world, Chinese private enterprises would they be about to fall into disgrace? After several scandals revealed in recent weeks, rating agencies go up to the plate one after the other. Fitch Ratings yesterday estimated that fraud cases were probably only just begun in the Middle Kingdom.

The U.S. agency has assessed 35 companies listed on the Shanghai and is ready to review its portfolio of Chinese. She considers their standard accounting and trading in Shanghai as many "key indicators of their weakness."

Although the Chinese accounting standards, adopted in 2006, are very close to IFRS (international financial-reporting standards), audit firms have not the confidence of investors, and obviously not the rating agencies which still largely prefer the four major (Ernst & Young, KPMG, PriceWaterhouseCoopers and Deloitte & Touche).The Fitch report said that companies from these large firms "would be more difficult to publish than those fraudulent reports go through domestic companies."

Fitch does not mean to review the scores awarded to different companies observed, adding that they "are already taking into account the context of a Chinese legal environment and an under-developed documentation, practices and specific business low corporate governance practices. "

Nevertheless, this case is the latest blow to Chinese companies. Last week, Moody's, which was hoisted the "red flags" of sixty-one companies that note. Fitch's rival evoked particular the opacity caused by a family shareholding in forty-three of them.

For several weeks, scandals involving Chinese companies listed multiply.Everything was packed in June, with the case Sino-Forest the title of which collapsed in Toronto. Since February, the business of handling accounts or misrepresentation of results had already forced many companies to delist in the U.S..

Loss of confidence

In total, nearly forty companies have shown irregularities, not the United States. The Securities and Exchange Commission (SEC), Constable of U.S. markets, has established a special committee to investigate these Chinese companies.

Hong Kong is no exception.The financial analysis firm Dealogic calculates that Chinese private enterprises were canceled or postponed them of trading, the equivalent of $ 3.8 billion.

Finally, there is a shift among investors who gradually give more confidence in the state, whose sovereign debt is rated A + by Fitch and Aa3 by Moody's, as private companies.

"Nuclear power is one reason for the choice of France, not a choice of passion," said Eric Besson justified this Friday morning on Europe 1 radio. Recalling that the energy brought to France an "energy independence" and that it limited the emissions of greenhouse gases, the Minister of Industry, Energy and the Digital Economy has reported that "the certainty absolute "that electricity prices would be higher for the French consumer without nuclear.

The minister, however, announced that a "great foresight exercise", called "Energy 2050" was launched on Friday, "few hours". "We will study all possible scenarios (…) the energy mix for years to come."

No cases will be avoided, he said, "including so-called scenarios of nuclear power," even if "no belief" or "the choice of the Government and the President of the Republic." "To say 'out nuclear power', it means nothing, he said. What is interesting is to know where it is replaced, what consequences for the dependency [energy], how much it costs to businesses and consumers and with what consequences for greenhouse gas emissions. "

The program, which provides an "analysis of energy demand in France and the world" and "all sources of production" will be led by "the services of Bercy, with a number of experts and personalities independent, "the minister said without giving further details no fax cash advances.

Fessenheim: no suspension or moratorium

Eric Besson has also confirmed that the Fessenheim nuclear power plant in Alsace will not be subject to suspension of its business, or a moratorium. "The Nuclear Safety Authority, which is totally independent of political power, EDF has given permission to stay in business for ten years subject to a number of works. So Fessenheim continue its business, "he added.

But he added that "Fessenheim be subject, like all French nuclear power plants in Fukushima post-audit," an audit requested by the government to learn from the nuclear disaster that occurred in Japan in March. "The nuclear safety authority may make other decisions," he said.

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Saturn must be profitable in three years: it is the objective that its new owner, HTM Group, has set. The holding of the family group Mulliez (Paragraph, Kiabi, etc.). Boulanger strengthens its brand with 35 stores in French Media Saturn, a subsidiary of the German Metro, which she bought on June 30 for an undisclosed price.

"Saturn knew generate traffic in its stores with low prices and promotions, but never developed Internet business and has never managed to be profitable," especially in front of supermarkets are on the same niche (26 % market share), explains Layous Bernard, director of purchasing and marketing Boulanger.

"With Saturn, Boulanger changes category. Faced with global suppliers, we will have greater purchasing power and we will be known to the public, "he says.The distributor of multimedia products and services and appliances improves its national coverage with this acquisition, which "saves 3 to 4 years of expansion." Even if Baker is, first, giving up open the store on the outskirts of Saturn provided Avignon and on the other hand, give five other outlets of the brand (Toulon, Le Havre, Mulhouse, Aubergenville , Angers), and a shop in Tours Boulanger to respect the opinion of the Competition Authority on the merger.

No project abroad

The integration of the stores kept Saturn, which carry a turnover of 500 million euros, will allow Boulanger (97 stores) to reach the 2 billion mark in sales in a French market the electrical appliance 22 billion euros, according to Gfk.

"The market has been growing steadily for twenty years, with the exception of 2009," says Francis cord, CEO of HTM Group. Since the beginning of the year, but the activity is again down, 1.2%, except for sales professionals on the Internet, such as Darty and Fnac. These are already doing about 10% of their sales through this channel, twice as Boulanger, who made his priority. Points boulanger.com withdrawals and will appear in the old Saturn, because a client of two picks the order.More reason to want to see HTM Group "soon" its goal of 150 stores Boulanger on the rise, with major cities and especially Paris-line of sight. International expansion, produced by its competitors, remains a dream, "but before going abroad, one must be strong in our home market," said Francis cord. Confident, it provides a higher turnover of Boulanger 3% over the year, at constant perimeter.

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The mood remains gloomy in the Paris Stock Exchange on Thursday. In the aftermath of a session that saw the CAC 40abandonner 1.49%, morale improved slightly with the release of U.S. indicators better than expected. In the afternoon, the Paris index erased some losses and ended down 0.38% to 3792.31 points after hitting a low of 3743.97 points.

The London Stock Exchange also ended lower, the FTSE-100 index lost 0.76% to 5698.81 points. The Frankfurt Dax finished down slightly from 0.07% to 7110.2 points.

This bad mood, which resulted in Wall Street and Asian markets this morning in the dark red, is mainly due to Greece. Indeed, the financial position and policy of the country bogged down.The special meeting of finance ministers has ended in failure Wednesday, Europeans failing to agree on the role of private creditors in the new rescue measures. Meanwhile, violent demonstrations took place in Parliament of the country, forcing the Prime Minister George Papandreou to announce a reshuffle of his government that is expected to announce on Thursday evening.

Decline in jobless claims across the Atlantic

In addition to Greece, the eyes were again turned to the United States Wednesday, the publication of disappointing statistics showed the weakness of the U.S. recovery, particularly in the industry.On Thursday, the news was, however, quite good: the new jobless claims have declined more than expected and the United States, where 414,000 benefit claims are submitted from June 5 to 11 – a decrease of 4% compared to last week.Analysts had expected 421,000 new registrations.

The housing starts and building permits issued in the United States are also rising again in May, increasing by 8.7% and 3.5%, according to figures released Thursday by the Commerce .

However, the deficit in the current account of the United States has widened in the first quarter to 119.3 billion against $ 112.2 billion the previous quarter, according to figures released Thursday by the Commerce Department.

Manufacturing activity declines in the Philadelphia area for the first time since September, said Thursday the U.S. central bank (Fed), whose local activity index fell to -7.7 against all odds, the lowest level since July 2009.

In the euro area, consumer prices rose 2.7% year on year, after 2.8% in April, according to a second estimate of Eurostat made similar to the first end of May.

On the currency side, the euro has stabilized against the dollar in late afternoon. Around 17:30 the European currency was worth 1.4166 dollars against 1.4182 dollars late Wednesday. In the morning, the euro has continued to fall weighed down by the Greek crisis, and fell to 1.4090 dollars, its lowest level for three weeks.

Values ​​to follow

Banking

French banking stocks are still under attack on Thursday. They are among the largest declines the CAC 40 business cards. Societe Generale lost 3.28% to 37.50 euros, Crédit Agricole loose 2.77% to 9.63 euros, BNP Paribas was down 2.20% to 50.17 euros. Axa Natixis and follow the trend with decreases of 3.60% to 14.60 euros and 1.37% to 3.45 euros.Dexia unscrews for its share of 4.56% to 2.15 euros.

Areva: -2.80% to 25.31 euros; Eramet: -1.83% to 217.50 euros

Luc Oursel, deputy CEO of Areva, is the favorite to replace Anne Lauvergeon at the head of French nuclear specialist, says the newspaper La Tribune.In addition, the group extended for six months its shareholders in companies with Eramet Sorame CEIR and representing the shareholders of the family Duvan.

Bull: -1.47% to 4.68 euros

The French computer group announced Thursday a plan to recruit a thousand employees for 2011, including 400 in France, mostly young graduates.

Sanofi: -0.92% to 51.43 euros

The group announced Thursday the signing of a research collaboration of two years with the Dutch biotechnology company Audion Therapeutics for the development of potential treatments for hearing loss.

EADS: + 0.65% to 21.53 euros

The low-cost Philippine Cebu Air said Thursday it had entered into a $ 3.8 billion with Airbus for an order for 30 A321s and seven A320s.

Renault: -1.16% to 36.27 euros

The Renault-Nissan is about to take control of Russian automaker AvtoVAZ, an acquisition that would propel the world's third largest, said Thursday the Japanese newspaper Nikkei.

L'Oreal: -1.18% to 84.39 euros

The businessman Stephane Courbit explained in a letter to Liliane Bettencourt why he wants to break the financial partnership that had just concluded the head of Lov group and the heir to L'Oreal.

Total: -0.58% to 37.52 euros

The tanker has completed its friendly takeover bid of about $ 1.3 billion over the American SunPower, a majority of shareholders of the company specialized in solar panels have agreed to tender their shares.

Eurosic: + 0.56% to 33.99 euros

Batipart, family holding company specializing in real estate, will launch a takeover bid for Eurosic in the coming weeks after the sale by Nexity and Banque Palatine of all of their shares in the specialist real estate office.

Vivendi: -0.22% to 18.13 euros

Between September and the summer of 2012, SFR will take the rays of the telephone 80 Fnac stores in France.

France Telecom: -0.49% to 14.21 euros

The operator said Wednesday it had issued 670 million euros maturing in 2019 and 2021.

Perno Ricard: -0.42% to 66.46 euros

The group announced Wednesday that its board had decided to pay an interim dividend of 67 cents per share.

After market, Zodiac Aerospace announce its third quarter revenues.

"CONTEST Estimate the Cac 40 in late June

Asian stock markets follow divergent paths on Wednesday. Markets are generally reassured by U.S. data released Tuesday, less bad than expected on the price front in the production and sales details. But the reluctance dominates.

In Japan, the Nikkei decides to follow the good mood on Wall Street has ended sharply higher on Tuesday. The benchmark index of the Tokyo Stock Exchange gained 0.28% to 9574.32 points at closing. The Topix, wider, took 0.22% to 824.65 points. Again, the action of the electric company Tokyo Electric Power (TEPCO), operator of the nuclear accident in Fukushima, illustrated by a jump of 32.12%, after the government submitted to Parliament Support project to fund compensation for victims. The title had already taken 25% yesterday.

In contrast, Hong Kong and Shanghai are losing ground.The Hang Seng loose 0.39% and the Shanghai Composite was down 0.49%. Investors are troubled by the decision of the People's Bank of China to meet Tuesday to 50 basis points on required reserve ratio of banks, hoping to contain high inflation that poses many economic and social risks. Beijing had announced earlier that consumer prices rose 5 guaranteed personal loan approval.5% in May, an unprecedented growth in nearly three years. The banking sector battered the image of Bank of China (-1.27%) and HSBC Holdings (-1.01%).

The KOSPI Korea following the Chinese markets and decline of 0.17%. Same thing for the Indian Sensex losing 0.31% and the S & P dropped 0.43% Australian. In Australia, the rating is pulled down by the airline industry. Qantas Airways (-1.06%) and Blue Holdings (-3.33%) and are penalized by their decision to cancel domestic flights due to volcanic emissions.

Trend mixed before U.S. crude stocks

The time is also reluctance on the oil markets on Wednesday. In morning trading, a barrel of light sweet crude for July delivery lost 25 cents to 99.12 dollars while that of Brent North Sea crude for delivery rose 49 cents identical to 120.65 dollars.

Investors await the day the report on the status of stocks of petroleum products in the United States. Analysts surveyed by Dow Jones Newswires, crude oil inventories have fallen by 500,000 barrels last week. In contrast, gasoline stocks had risen by 400,000 barrels and distillates (including diesel and heating oil) of 900,000 barrels.

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"We resist '. That is what could be read on the sign of one of the protesters took to the streets of Athens on Saturday to protest against austerity measures additional adopted by the Greek government to clean up its public accounts. Responding to the call of the country's two main unions, GSEE (private sector employees) and ADEDY (public sector), the thousands of protesters denounced the identified "social barbarism" After the enhanced supervision of international institutions in their countries . "We oppose the government and the memorandum for these barbaric actions and antisocial," said Gregoris Kalominis, an official of ADEDY.In a joint statement released on the sidelines of the event, the two unions have called for "a different economic policy, with measures of development and social measures that preserve jobs and increase our social and economic rights."

A plea against the recent economic decisions imposed on Greece. Yesterday, the country has received the "troika" (European Central Bank, European Union and International Monetary Fund) the green light for the payment of this summer's fifth installment of the loan of 110 billion euros granted in 2010. But a green light conditioning to "accelerate fiscal and structural reforms in the country", which Moody's rates still at 50% the risk of default within five years. Enough to arouse the wrath of the unions.Indeed, George Papaconstantinou, the Greek finance minister, has already announced it is less than a month an austerity plan for 2011, about 6.4 billion euros.

Hardening of social climate on another front

After nine general strikes, mobilization has been moderate on Saturday. The demonstrators were mostly employees of the public power company PPC, port employees and teachers. An event that went smoothly. Nothing to do with the excesses seen in previous demonstrations.

Mobilization and social deterioration seems rather move on another front, the less supervised by trade unions or political parties. Already experienced in Spain, a spontaneous party Internet illustrates the ras-le-bol of the Greeks, that of "outrage".Now, they do not hesitate to take sides publicly in the political class and physically, according to them responsible of the current situation. For ten days, these "outraged" gather every evening on the Constitution Square, just before the Greek Parliament.

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To those who doubt the impact of future rules on the banking sector, the market this Friday brings an answer without ambiguity. It was enough that the Financial Times raised the prospect of a fresh application of standards known as "Basel 3" for all European banking stocks rebound sharply! Crédit Agricole wins 3.61% to 10.62 euros, BNP Paribas climbed from 2.03% to 53.36 euros, the two largest increases Cac 40 and Societe Generale is 1.39% 42.32 euros. And this while the Paris Bourse advance of 0.77% to 3947.39 points.

According to British newspaper, that the deduction of bank capital and capital employed in the insurance industry that have been announced including less severe than anticipated. Good news, if it were true for large bancassurance groups that are French.

In fact, several elements collide in the European regulation.The European Commission initiated the drafting of the Directive (CRD 4), which transpose Basel 3. But the text does not fix a ceiling for leverage, since Basel 3 ratio does not compulsory but a tool available to regulators. Nor does it impose any standard of liquidity, since the Basel Committee provides a period of observation before definitively concluding its normative work. These elements are sometimes misinterpreted as a softening of the device.

A market sentiment indeed confirmed by another rumor that swells in the financial world: the possibility that the obligations imposed by Basel 3 are relaxed or shifted to European banks if a restructuring of the Greek sovereign debt should intervene.

This is a first. Nearly 1000 makers and observers of the Internet will meet in Paris tomorrow and Wednesday to participate in e-G8 Forum. Sizing of the digital economy, as Mark Zuckerberg, the founder of social networking site Facebook and Eric Schmidt, Google's president, made the trip.

They rub shoulders patterns of media, such as Australian-American tycoon Rupert Murdoch, the chairman of the New York Times Arthur Sulzberger Jr. The conference will also host the rising stars of the Web as the creator of good plans Groupon Andrew Mason and Mikael Hed, Director General of Rovio, the publisher of mobile gaming success Angry Birds.The world of finance will ambassadors Niklas Zennstrom, CEO and cofounder of the fund Atomico Skype, and Sean Parker, Founders Fund partner today, Co-founder of Napster and Facebook, and bad boy of Web embodied by Justin Timberlake in The Social Network.

This casting will demonstrate the importance of the event. It was proposed by Nicolas Sarkozy, who chairs the G8 this year. For the first time, an Internet discussion has been put on the agenda of the G8, which meets on May 26 and 27 in Deauville. E-G8 Forum should provide a framework for exchanges between heads of state.These will be based on a paper presented at the next G8 e-Forum, which might detail a series of reflections and proposals on major issues of the Internet.

The conference program addresses broad issues as "The Internet and economic growth," which will discuss among others John Donahoe, eBay's CEO, Eric Schmidt, and Christine Lagarde, Minister of Finance. The debate "Internet and Society meet Andrew Mason, Sheryl Sandberg, Facebook's number 2, and Jimmy Wales, founder of the collaborative encyclopedia Wikipedia.To make proposals on these discussions, stakeholders were asked to come up with key ideas that they wished to submit to the representatives of the G8.

Private funding

Issues closer to the everyday concerns of internet entrepreneurs and internet will be discussed in workshops: financing for start-up, freedom of expression and privacy, mobile issues, information sharing and value, e-government … All these exchanges are broadcast live over the Internet, will be summarized by rapporteurs and provide the basis for a "message for Deauville."

The conference was organized in record time by Publicis, whose chief executive, Maurice Levy, was given the mandate in February.Advantage: via its subsidiary Publicis Live, the communications group organizes many events which already meet the tenors of the Web and media, such as the Monaco Media Forum, the Abu Dhabi Media Summit and Davos. These are the links forged during these meetings that enabled convincing, snatching, Mark Zuckerberg to participate in the forum. He has confirmed his arrival a few days before the opening of e-G8 Forum.

In return, Publicis has not been able to rely on public funding to mount the e-G8, whose budget is estimated at 3 million. The organizer has therefore appealed to private financing from a dozen sponsors, including Orange, Vivendi, eBay, Google, Capgemini, Iliad, Microsoft and Alcatel-Lucent.Four other finance a dinner tomorrow evening at the Louvre, in which 350 handpicked guests were invited.

The most important guests of the e-G8 forum:

• Rupert Murdoch – CEO of News Corporation

The media mogul had anticipated the rise of social networking by buying MySpace in 2005. It now relies on paid content online. "Aggregators and plagiarists will soon have to pay a price for our content. If we do not take advantage of the current movement towards paid content, the kleptomaniac triumph "

• Mark Zuckerberg – Founder and CEO of Facebook

At 27, the young prodigy of the Web is the 52nd World fortune, according to Forbes. More than 650 million Internet users have joined the social network he founded in 2004 at Harvard. "The social norm (of privacy, Ed) has simply evolved over time.People are really accustomed not only to share more information, different but also more openly and with more people "

• Jeff Bezos – Founder and CEO of Amazon. Com

It has revolutionized e-commerce by creating Amazon in 1994. He is now going to online media, from books to video. "The last nugget of gold rush has disappeared. With innovation, there is no last nugget. Each update creates new questions and new opportunities "

• Jimmy Wales – Co-founder of Wikipedia

His collaborative encyclopedia celebrates its 10th anniversary this year. It has 18 million articles written and edited by Internet volunteers. "I think MySpace is doomed, I give them another two years … I think Facebook is the next Microsoft, for better or for worse.It is an incredible company that will do much good and bad things "

• Eric Schmidt – Google Chief Executive

DG Internet Group from 2001 to 2011, Eric Schmidt has handed over to Larry Page in April. He remains in charge of acquisitions, partnerships and institutional relationships. "Today your phone knows where you are, and to some extent where you go. Ultimately, your mobile does what he does best is to say, to remember everything and make proposals. You can be a better human and have a good time "

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While the rating agency Fitch on Friday downgraded the rating of long-term debt of Greece, and the French minister Christine Lagarde asked Athens to take further fiscal austerity measures, the German finance minister speaks the ability to offer additional assistance to Greece.

In an interview published Sunday by the newspaper Bild am Sonntag, Wolfgang Schäuble believes that steps could be taken for the country if his efforts fail to reduce its debt. This additional support "is only conceivable if it is confirmed that the private creditors such as banks, do not opt ​​out of Greece, leaving European taxpayers to take full responsibility," said the German minister nonetheless. He believes that the creditor countries of Greece must first ensure that Athens is able to overcome its economic difficulties."Only in this case we could, if necessary, discuss an extension (the maturity) bonds that Greece should pay next year," says he.

The inspection visit, arriving in early to ensure that Athens respects the conditions attached to the bailout 110 billion made in the country, had to extend his stay. Officials hope it will make its findings next week but no date has been set. Wolfgang Schäuble also said that the decision to give an additional boost will require the approval of the International Monetary Fund (IMF) and especially that of centrel Bank (ECB).On Friday, the IMF has in effect called the euro area to urgently adopt a more comprehensive range of measures to resolve the debt crisis, but some resistance has emerged towards the ECB.

'Soft' restructuring

George Papandreou, the Greek Minister Pemi must submit on Monday a multi-year plan with new measures to strengthen the fiscal consolidation of the country online payday loan lenders. He hopes to escape the restructuring of the enormous debt that he does not want to hear aujoud'hui, but that markets demand. Unlike the ECB, they are convinced that Athens can not solve its problems by merely the emergency loan of 110 billion euros already granted by euro zone countries and the IMF. Despite a big effort to reduce the deficit last year (five points of GDP), Greece is indeed still in a critical budget situation.

The leader of the finance ministers of the eurozone, Jean-Claude Juncker, is the promoter for this week of a 'soft' restructuring through debt rescheduling. He pleaded over the weekend for the creation of an independent umbrella of the Greek government's privatization program in the country. Athens has planned about 50 billion euros from privatizations in 2015, whose income must be allocated to debt reduction. This option is opposed by the European Central Bank (ECB), fearing that the outright failure of Greek banks, and chain reactions throughout Europe.Dominique Strauss-Kahn, former head of the IMF, was also on the same line.

Determined to "save" his country that he says can work it through his own efforts, George Papandreou is due to visit Paris this week, Tuesday and meet with key political leaders of his country to reach a consensus on measures to be taken to cope with the crisis. This agreement required by the countries of the euro area, however, looks difficult to obtain, the prime minister faced with a sling, even within his own party.

(With agencies)

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