International & World Report

Italy would not have sought help from China to overcome its problems of sovereign debt. So says the Tuesday evening Antonio Gentile, Italian Secretary of State for Economic Affairs. Contrary to information in the Financial Times that Rome would have asked Beijing to make significant repurchases of its sovereign debt, it says that "we have not requested any specific assistance to China. The demand for government securities is good Italian. "

Antonio Gentile and again the words of a member of the Italian government which emphasized on Monday night that the purchase of debt securities of the Italian state was not central to the negotiations which took place several weeks ago. While the Finance Minister Giulio Tremonti, as well as officials of the Cassa despositi e prestiti, met Lou Jiwei, the chairman of China Investment Corp (CIC), accompanied by a delegation in Rome.But "there is no extraordinary operation to purchase debt with China but only institutional meetings planned for a long time to evaluate investment opportunities in Italy, especially in industrial," said Secretary of state.

This meeting was on capital expenditure and not bonds, "provided later another government source.

Relief markets

In any case, the information had an immediate impact on equity markets. European shares closed Tuesday on a rebound, despite the conflicting information. Yesterday, the news sparked a dramatic rise of U.S. indexes, which ended the session up when they were, like all European markets, a sharp decline shortly before that information cash advance loans. Foreign exchange markets also reacted.The information has strengthened the euro, trading at 1.3692 dollar in the evening.

All stock indices around the world is indeed suspended at the least information related to the status of sovereign debt in the euro area. In fact, the fear of contagion shook the Greek market.

The tension remains strong. Italy fails to regain investor confidence on Tuesday and again, the Italian rates have soared in bond issues.

China has pledged to support the euro area

The assumption of support from China bound for the euro area is particularly taken seriously by the markets as the Central Bank of China recently said it was ready to support countries in difficulty to repay their debt.

Moreover, China has already come to the rescue of countries in the euro area in difficulties in recent months.In late May, Beijing had expressed its intention to purchase debt securities issued by the European Stability for Portugal. In January, China had purchased European titles for bail Ireland. And from the beginning of the crisis, China had come to the aid of Europe's sick of his debts. Earlier this year, the country had purchased bonds espagnolespour a hundred million. The Middle Kingdom is also committed to acquire Greek bonds

By helping the EU now, China is diversifying its investments in debt securities. In addition, the country is gaining leeway in future negotiations.

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MPs begin on Tuesday the review of the proposed supplementary budget, which includes measures of anti-deficit plan presented in late August. A risky period for the government, some measures of the plan is hotly contested in the majority.

After the removal last week of raising VAT on theme parks, the UMP president of the National Assembly, Bernard Accoyer, pleaded Tuesday morning in an interview with Les Echos, a lower threshold for taxation of high income. Those reporting more than 250,000 euros would be affected, while the government's plan was initially not as income of more than 500,000 euros.

"It's still very high level. I think this discussion will be debated in Parliament. I am at least favorable, "said Bernard Accoyer. A proposal that the government seems willing to consider instant credit report.Europe 1 this morning, the Minister of Economy, Baroin, said here that "it will be discussed in the budget for next year. We made a proposal, the debate is open. " This measure, however, should be discussed in October.

Remove the Consolidated Global Profit

The government and members of the majority, however, have already agreed on Monday to restore the deduction on real estate gains after 30 years of detention of property, excluding primary residence. To fund this measure, the budget minister, Valérie Pécresse, expressed on Tuesday on Canal + ready to tighten the tax on luxury hotels and large groups.

"Whatever the arrangements, relaxations or changes you make to a particular measure, it will have to be fully compensated," recalled the minister.

"The Apple employees called the police directly from the Mission District neighborhood, asking them to help locate a lost object," said the police. "They then went into the house to search for the lost object (…) but they have not found". The statement did not specify what the object sought, but the title of the document "iPhone5.doc" is final! For now, the group does not want to complain.

Enhanced security

Ironically, Apple continues to strengthen security around its new devices to avoid the rustle in the media information about new projects. Thus, in a Guardian blog, it is stated that the latest iPhone are transported in locked boxes and sealed. Almost no one is able to open these packages. And the software itself is protected.The walls that do not, however, resist the doors of bars!

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Among the statistics expected Monday in Wall Street, the surprise came from consumer spending. The Americans have in fact spent more than expected in July. Up 0.8% on month, consumer spending across the Atlantic more than 0.3 percentage points the level expected by analysts. Because of inflation, which rose 0.4% from June, consumer spending rose 0.5% in real terms. Their progress is the highest since December 2009.

This increase serves as a good sign for U.S. growth in the third quarter. What mood enhancing buyer investors, who already showed optimism prior to publication.At the opening of the session on Monday in New York, the Dow Jones ahead by 0.74% to 11,368 points, the Nasdaq and Standard & Poor's 500 rising 1.36% respectively in 2514 and 1 points, 40% to 1193 points.

The final impact less severe than expected from Hurricane Irene passed over New York yesterday, also contributes to investor optimism. Similarly, after being confused by the speech of Ben Bernanke, the Fed chairman, on Friday, market participants regain hope in a possible intervention by the Fed.

The Dow Jones above 11,000 points

According to analysts at Aurel BGC in fact, the announcement by Ben Bernanke, a two-day meeting in September to study in detail the possible deployment of new monetary tools, reassured. "Either the recovery of economic activity is growing, or the central bank will implement new support measures, they summarize.Under these conditions, the U.S. indices rebounded sharply after Bernanke's speech. "

In fact, dropped below the 11,000 points while the Fed chairman began to speak, the Dow finished at 11 284.5, up 1.2% on Friday night. A final increase, which encouraged European stock markets bounce back on Monday morning, except in London, closed due to holiday.

Another indicator which will be followed on Monday, the promises of home sales for July are expected down 0.1% from a consensus of analysts, against 2.4% rise previously.

The bank should remain in the spotlight

No major publication is expected on the business side.

However, the banking sector will probably still at the heart of analysts' expectations, due to the rebound in the sector in Europe.

It will double or quits. Europe 1 was full of novelties for the start. This is to embody the renewal of the station of Lagardère Active, after a 2010-2011 season in any turbulence, which ended at the lowest in the polls, to 8.7% of total audience of the months of April-June

Europe had a well done one after two strategic hires at the end of last season, announcing the arrival of Bruce Toussaint morning to resume the abandoned during the year by Marc-Olivier Fogiel and signing Nikos Aliagas, starting from NRJ, for a chronic morning. The arrival of two icons a cathode showed indirectly that Europe retains its attractiveness to the small screen heavyweights.

In parallel, the station has increased the presence of familiar voices to its listeners.Michel Drucker is back with a daily late morning; Laurent Ruquier integrates the morning in addition to his appointment to 2:30 in the afternoon, Frank plunges Ferrand "At the heart of history" every day for one hour with a program which also promises future success of downloads podcasts, Michael Field found its followers in the evening. Finally, William Cahour, who led the morning safely after the defection of Marc-Olivier Fogiel, anime slice of information between noon and 13 hours.

A "media habit"

But these new appointments – even when they are carried by figures very "Europe 1", also include the risk of destabilizing a little more the station paydayloans. Indeed, radio is considered a "media habit", which does not change even from generation to generation. However, Europe 1 has already undergone several major revisions over the years.Upon arrival in the summer of 2008, Alexandre Bompard had thus hastened to abandon the format "info-talk", previously proposed by Jean-Pierre Elkabbach, to reposition it as a strong generalist radio sport and entertainment. Despite a slight revival of the hearings, he had to change his mind in the following season and slow down on the supply of sport. Last season, finally, was heckled by the departure of Alexandre Bompard in November, that of Nicolas-Demorand just happened to animate the early evening, in January and that of Marc-Olivier Fogiel early February.

For the new boss of the house, Denis Olivennes, it is both a balancing act and a distance race ahead.

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"Real estate: the cropped Scellier

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"Companies: rising social package

"Other tracks: capital gains on the hot seat

Operation must! The government will this week attempt to convince the financial markets on its ability to control public finances. François Fillon unveiled late Wednesday afternoon in the presence of Baroin and Valerie Pécresse, the Ministers of Economy and Budget, the new conservation measures for France to retain investor confidence and its " AAA. "

The government enters the final stretch trade-offs. François Fillon and Nicolas Sarkozy meet to sort the list of suggestions made last week by Bercy (and amended by the relevant ministries) and begin to remove some tracks.Then the president and prime minister Wednesday to finalize the measures to adopt.

The government did not release the extent of the plan, but it evokes an effort between 5 and 10 billion, and a trend towards the top. The turn of the screw will break down between savings on public spending and further cuts in tax and social niches.

On this last point, the government does not start from scratch. The measures that were passed in the fall (tax on marriages, on the solar panels, niches plane, etc.). Will yield 2.4 billion in 2012. But we'll have to do much more. There is another month, the government did not request such an effort to households and businesses. He planned to take samples of only 3 billion. With 2.4 billion already in the pipeline, the step to take was minimal.But since the degradation of "AAA" rating from the United States, France finds itself under pressure from the markets. Even if it borrows at low levels (2.74% at ten years), a sign of confidence that it continues to generate, France must do everything to protect his note. For if it were lowered, the state should borrow at higher rates. According to the Court of Auditors, an increase of one point would increase the debt burden of $ 2 billion the first year. To prevent a runaway cost of debt, the government should not deviate from its route.

Increase in the social package

Paris has pledged to reduce its public deficit to 5.7% of GDP in 2011 and 4.6% in 2012. This objective was particularly complicated since the Insee reported zero growth in the second quarter. Bercy forecasts an increase of 2% of GDP in 2011 and 2.25% in 2012 now seem too optimistic.On average, economists expect now on a 1.4% growth next year. However, less growth means less tax revenue and more spending for the state, the social security and local authorities. Without necessarily announcing Wednesday a revised its growth forecasts, the government is obliged, if he wants to keep its deficit targets, to take austerity measures …

Increase in the social package for businesses, new plane and lower overall ceiling of niches, penknife devices ultramarine and real estate … the tracks are not lacking. The government also provides measures for the social security system, not to mention taxing very high incomes as suggested on Wednesday, Maurice Levy, president of Publicis and the Association of Private Enterprises (Afep), in an article in Le Monde ."We need efforts that will be requested to the French are fairly distributed," assured the same day Valerie Pécresse on Europe 1. The measures adopted will be included in budget 2012.

France can she get into the spiral of Greece, where budget cuts exacerbate the recession, which in turn widens the gap? A priori not. This year, increases in taxes, resulting from the measures passed in the fall, reached $ 12 billion. Without destabilizing the country.

Real estate: the cropped Scellier

Before the crisis, Bercy was considering reducing benefits. The pressure is greatest.

• Law Scellier

The niche Scellier reduces its tax by investing in rental real estate. It was expected that the tax reduction equal to 22% of the investment in 2011 reaches 18% in 2012.The reduction could fall to 15%.

• Ready to zero +

There are plans to reintroduce a means test for the loan (PTZ), in order to focus on vulnerable households.

• Capital gains on real estate

The capital gain on the sale of a principal residence will remain tax exempt. For other assets, the gain is taxed at 19%, plus 12.3% social. However, there is a reduction (10% per year after five years in prison) that applies to the capital gain and will disappear for undeveloped land for building. It is also the question of decline (eg 5%) for other goods.Another track: the system of reduction of the gain disappears for the payment of social security contributions.

Niches: plane and down the ceiling

The tax loopholes will undergo a new movement of the plane after the last year which affected 22 devices (Scellier, actions overseas, the tax credit for environmental equipment in the house). The rate of tax reduction was reduced by 10%: a rate of 50% was increased to 45%, a rate of 25% to 22% … The measure, however, has yet to be felt, because the first plane applies to the income tax paid in 2012, sitting on the revenues of 2011. The government planned to meet the plane in 2011 (eg 15%) and pass a new tax on plane sitting on the revenues of 2012.
Widely used devices, such as overseas benefits or tax credits for equipment of the house will still be trimmed.MPs want all the niches are planed. Others will disappear. In addition, the overall ceiling of niches, set at 6% of income over 18,000 euros, will be lowered.

Companies: rising social package

Social package, paid by companies on the profit-sharing and employee savings, should be increased from 6% to 8%. Expected gain: 400 million euros. Since its inception in 2009, the government increased the fee by 2 points every year! Systems loss carry-on prior and subsequent, which limit the corporate tax should be reduced. They benefit primarily to large companies but the government wants to rebalance the tax burden with the small. The carry-back would
limited to one year. And to carry forward losses from the profits would be capped.In Germany, the losses charged can not exceed 60% of the profit. However, the idea of ​​limiting the deductibility of loan interest is difficult to implement.

Tax on very wealthy households

The government pledged in the spring to tax high incomes, and a working group must report its findings in the fall. Two tracks are at this stage on the table to non-deductible from corporate income tax payments "extravagant" or create a new tax paid by very wealthy households. The latter option holds the rope in the government because it has the support of parliamentarians. Gilles Carrez, the rapporteur of the budget UMP
in the Assembly, propose to tax at a rate of 1% or 2% revenues exceeding one million euros per year. But Peter wants Méhaignerie the new tax applies from 150,000 euros to 200,000 euros in annual income for a couple.The lively debates ahead!

Other tracks: capital gains on the hot seat

Gilles Carrez wants the taxation of life insurance is carried over the water each year on their earnings potential, while households are now taxed when withdrawn at a variable rate depending on the length of detention ( 7.5% after eight years). Another idea: adjust the taxation of life insurance, whether it is placed in shares or products without risk. The UMP Jérôme Chartier wants to create an additional ceiling on tax loopholes, reducing to 50% of tax due from the advantage of niches. But Bercy is not favorable. Finally, many parliamentarians call for the removal of reliefs on capital gains from stocks and bonds (third year in excess of five years from 2012).

The rise in prices over the past decade has not spared the agricultural world. A report published by the Agreste, the agency in charge of "statistics, assessment and agricultural perspective," returns to the soaring prices of agricultural land since 1997. In 2010, arable lands and grasslands sold free worth 5230 euros per hectare, an increase of 66% over 1997.

Sold leased, the price is lower, at 3620 euros per hectare, which is still a 51% increase in 13 years. Rental status is not the only explanation for the difference in price between these two types of terrain. Although subject to the law of the market, characteristics of municipalities where agricultural lands are for sale often come into playThe specialty of the town, that is to say raising grain or cattle, for example, is one of the main factors that come into account when the reserve price. When the municipality has a dominant breeding beef cattle, rates may be on average 10% cheaper than in a town that specializes in cereals.

Geographically, the agricultural land is distributed in a rather orderly in the territory. The leased lands are mainly located in the Paris Basin and the northern half of France, the rest of the country being occupied mostly by vacant land payday loans in one hour.

New competition

More generally, the report highlights the influence of geographical location on the pricing of these lands. Near a city, a parcel is approximately 8% more expensive than in rural deep.An element that is associated with patch size, which also has changed over the years: the area of ​​arable land and grasslands free decreased in urban areas. Instead, the size of land rented sold continues to grow throughout the country thanks in part to farms that do not stop to grow to increase their production.

Another change in size during the past 13 years: the buyers. The report shows in fact that today Agreste fewer farmers acquire land and open meadows. They represent only two thirds of the purchasers against three quarters in 1997. Although this was down due in part to their inability to face economic uncertainties but also the arrival of new competition. A growing number of individuals and communities have actually landed on the market for agricultural land free.Primarily interested in the land, they usually offer to buy the most expensive land that farmers and thus participate in the surge in prices.

The ranking of cities where life is the most expensive in the world has just been updated. Based on the study "Prices and Earnings" of 2009 conducted by the Swiss bank UBS, the ranking reveals a new top trio now consists of Oslo, Zurich and Geneva. New Delhi, Manila and Bombay are on their last on the list.

To establish this classification, UBS has written, based on European consumption patterns, a basket of 122 goods and services in 73 cities worldwide. Surprise for New York, formerly the sixth, falling heavily to the 14th because of the weak dollar. Paris, however, losing three places, is now considered to be more expensive than New York, as it appears in 12th place.

Regarding wages, Zurich tops the list of cities that pay the best.Far behind Paris and Lyon are respectively the 24th and 25th place in this ranking shows that during that wages are twice lower than in Switzerland. Central to the survey on which this list is based: the purchasing power. UBS has in fact a classification of employees taking advantage of the stronger purchasing power based on their net hourly wage. If Zurich, Sydney and Luxembourg occupy the podium, London 16th and 22nd Lyon. Gones is the capital of the French before the capital, Paris listed in 28th place for the only criteria in purchasing power.

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"I listened to France Info radio Saturday when I heard the note of the deterioration in the U.S. by Standard and Poor's. Though I have expected, I was very worried. Not for the United States, but I wondered what would happen Monday at the opening of the markets. I spent the day listening to the radio gamberger. It was great for me because all day the journalists spoke only financial, AAA rating, the rating agencies. We rarely talked about as much my passion in the media! Joking aside, I was worried. Sunday, I surfed all the sites info from my iPhone, that's how I learned that the ECB was planning to buy securities in Italy and Spain. I was reassured, but I waited for the opening of markets with anxiety. "

"So it's the end of the world?"

"Monday morning, arrive at work before the markets open.My colleagues and I, we laugh yellow, you wonder "when is the end of the world?". The morning went well thanks to the announcements of the ECB, I breathed a sigh of relief. I expected that the stock market tumbles and climbs, but it rises very little. But when it was revealed that the ECB did not buy that much of Italian and Spanish titles, bang, everything collapsed. There is nothing worse than a disappointed hope. To make matters worse, a spokesman for the German government said that the European emergency (EFSF) should "stay as it is" (the face of calls, including French, to increase its staffing to fight against debt crisis , Ed). In the world of finance, it was a joke: As soon as the stock market decline we say "ah, a German leader has spoken." Well there was quite that.Monday night, the ACC finished the session on a further drop of 4.68%. "

"The worst days of my week is definitely Tuesday and Wednesday. There, I was really afraid, I hung my head payday loans. We were stunned to face the noise of the gravity of the situation of Societe Generale. As the bank had already had to deal with the case Jérome Kerviel (the trader who lost nearly 5 billion euros in the bank in 2008, ie), the rumor might have seemed credible. This story disgusts me. When I think that some have started this rumor to sell shares short and buying 20% ​​less than two days later, it puts me out of me. Because I know that those who suffer, it is the small savers. Tuesday night, the ACC shows a gain of 1.63%. Nevertheless, I am not alone.However, since the 2008 crisis, I learned to better my personal life separate from my work, I do sleep more as I have done in the sub-prime crisis. I slept like a log, exhausted. "

"I'm not going to shoot myself"

"Wednesday, the markets are sealed by rumors of degradation of the note of the French debt. I'm not surprised. My personal analysis is that the deterioration of the U.S. debt will have negative consequences on the note of the French debt. The CAC closed down 5.45%. I try to relax at home in the evening. I will not shoot myself in the foot every time things go wrong. "

"Thursday and Friday, the stock market has regained color. On Thursday, the CAC closed on an increase of 2.89% and 4.02% Friday. I'm not confident either. I do not know how long we're going to balance.I spend Friday night to read newspaper articles, think about how markets will open Monday. I started to install fiber optics to my house, I will continue to tweak this weekend. To be able to surf the web faster to read the financial information. Gamberger for what will happen to the market opening on Monday. "

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The fifteen-minute speech of Barack Obama addressed the U.S., not markets. The objective of the President was to convince his fellow citizens that the right of the Republican Party is responsible for the impasse. He asked the rest of his listeners to call their senator or their Republican Congress asking them to compromise.

Barack Obama said the disaster would be a failure to pay the Treasury on Tuesday, if this compromise was not reached. The economic crisis that would result, he said, entirely caused by the political dysfunction in Washington.

Obama maintains its position

For the chief executive of the United States, the problem of excessive indebtedness of the country is the result of at least ten years of lax fiscal policy. First, because of excessive spending and irresponsible tax cut decided in George W. Bush.He then explains the explosion of debt since taking office by the need to save America from a very serious recession.

Nothing he outlined in his speech Monday night was not already stated in previous days by Barack Obama. From this point of view, it may disappoint the market. The White House put on the pressure of public opinion to split the Republicans in two.

He tries to rally the Republican pragmatists to what he calls "a balanced approach" to reducing debt. That is a major plan that includes both tax increases and cuts in public spending.

However, he supported the plan proposed by the Democratic majority leader of the Senate, Harry Reid. It abandons the idea of ​​raising taxes.It offers a massive and immediate increase in the debt cap, with "savings" of the same order.

Republicans denounce economies sham

John Boehner responded Monday night's speech by Barack Obama. Photo credits: NICHOLAS KAMM / AFP