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.

Pressure mounts on Barack Obama. While the deadline of August 2 approach, the U.S. president can not convince Republicans to vote on raising the debt ceiling of the United States. He must now face the threat of a deterioration in the country's sovereign rating from Moody's. Wednesday evening, the rating agency said it could in the coming weeks to lower the American note, currently the highest possible AAA, AA category, which is an investment category.

Moody's became the first of the three major rating agencies to place the note in the United States under surveillance with risk of a downgrade. In a statement, she said, receive "a possibility of increasing the maximum statutory debt is not found in time."Without an agreement, the U.S. could miss some payments on government bonds in circulation, she says. The dollar and U.S. bonds fell after the announcement. The dollar's share has compounded its losses. In morning trading, the euro is worth 1.4196 dollars.

The agency intends to end the monitoring as soon as it can conclude whether a defect is avoidable or not. It will then decide if the United States are entitled to keep a stable outlook on their ratings, on the basis of the budget negotiations between Democrats and Republicans. But even if Congress manages to avoid a technical default in August, increases the likelihood of a revision of the outlook to negative in the weeks following, told Reuters Steven Hess, Moody's analyst."The fact that they do not agree on are the maximum debt shows that the outcome of negotiations on the status of long-term debt may not be very positive," said he.

Recall

Following this announcement, the Deputy Treasury Secretary for Finance interior, Jeffrey Goldstein, said the Moody's decision was a timely reminder of the need for Congress to avoid a default and to seal an agreement to reduce serious budget deficit.

For Democrat Chris Van Hollen, the words of Moody's demonstrated the danger in the ideological debates. "The fact that Moody's places the United States under surveillance and downgrade our rating to AAA underlines the danger of those who would do our economy and our jobs hostage to a rigid ideology instead of acting in the best interests of our country, "he said.

Tense discussions at the White House

The opinion of Moody's fell just before the fourth interview in four days between Barack Obama and the leader of the Congress. According to a Republican parliamentary attaché, she was the most tense of all. To conclude the meeting of Wednesday, the president of the United States would have meant he would no longer concession, even if it were put at risk its mandate. "I got to the point where I have to say 'enough is enough!" Is Ronald Reagan would sit here? I reached my limits. This may possibly lead to the end of my presidency, but I will not yield on this point ", would he have said.

Denying the information that the President had left the room abruptly, an audience member who requested anonymity confirmed that he had expressed his exasperation, saying, "Enough!".Barack Obama, who will again parliamentary leaders on Thursday, has also asked to renounce the political maneuvering, according to a member of the Democratic Party.

In this context, the President of the U.S. central bank (Fed), Ben Bernanke, warned that failure to pay the United States would create "huge problems" for the country and a "major crisis" in the world .

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As announced in Le Figaro, the No. 1 reactor of the nuclear Fessenheim (Haut-Rhin) received clearance from the Nuclear Safety Authority (ASN) to continue operating. He "is able to be operated for a period of ten additional years provided you follow a number of requirements," said Monday the president of the ASN, Andre-Claude Lacoste.

The concrete slab on which was built the reactor must be such "enhanced" before June 30, 2013 "to increase its resistance to corium (molten magma resulting from insufficient cooling of the fuel, Ed) in case of serious accidents with piercing of the tank. "Second "major limitation" on the 40 made by the ASN: EDF will have to install an emergency device designed to remove the residual power "in case of loss of the cold source" before December 31, 2012.

Notice of extension published Monday is worth not discharge. Especially since it was made "subject to the findings of evaluations undertaken additional security after the accident Fukushima," said Andre-Claude Lacoste.

These stress tests requested by France and Europe aimed at assessing the behavior of plants in extreme situations. An "appointment" that could lead to the ASN "strengthen requirements," says its president. It will then EDF or the government to decide whether to continue the operation of reactor.

Monday, environmental groups and antinuclear called for "immediate closing" of Fessenheim.Nathalie Kosciusko-Morizet, Minister of Ecology responds to Le Figaro.

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.

While the rating agency Standard & Poor's downgraded three notches note of Greece who becomes the country with the lowest rated in the world, the eminent economist Nouriel Roubini sees the end of the eurozone. In an article published in the Financial Times, the man who announced the financial crisis of 2008 estimated that countries of the European periphery abandon the euro within five years.

In the eyes of Nouriel Roubini, the debt crisis that weakens current euro area highlights the flaws in this monetary union. In fact, the euro zone has never been an "optimum currency area", ie a group of countries has any interest in sharing a single currency. There is indeed always been too strong and competitive economic differences between countries in the euro area.The founding fathers of the euro area, however, hoped that the differences between fiscal, monetary and exchange rates are offset by an acceleration of structural reforms within the euro zone countries. These measures would then have enabled the countries of the eurozone converge.

Without economic convergence, the euro area is doomed to failure

But "the reality is quite different," says Nouriel Roubini. Following the establishment of a common monetary policy, countries are folded on the weapon budget to adjust their economic policies. Very different policies have been implemented within the eurozone. Consequently, the lack of fiscal discipline in countries like Greece and Portugal involved in the birth of speculative bubbles in other countries like Spain or Ireland. And finally, the peripheral countries have become less competitive.

Economist reaffirms that to work, creating a currency area must be accompanied by a fiscal policy even as the establishment of supranational sources of income or the issuance of sovereign bonds Commons. In the absence of economic convergence, the euro area is doomed to failure, according to the economist.

Thus, Nouriel Roubini believes that there is now a way to restore the competitiveness of peripheral countries: leaving the euro, return of national currencies and depreciation. Such a scenario seems inconceivable today, is the economist who said that nothing says that in five years this idea has not gained ground, especially if the economies of peripheral countries are stagnating. Unless the idea of ​​a Euro reaches more federal drilling, some European leaders call for that greater European integration.

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Since mid-May, the United States exploded the ceiling set by Congress of American debt, around 15,000 billion dollars currently. This ceiling has been found in January. It would suffice to go back again to exit the United States from embarrassment: the country can theoretically borrow on the markets when the threshold is exceeded. Which is to say that the U.S. is in a situation of default.

But the maneuvers have pushed until August 2, the bankruptcy of the federal state. The White House and Congress have so until that date to agree. The first press the other to raise the ceiling, but he refuses to press the button until the government has not detailed a program foresaw and specific reductions in public spending. The United States shackle in effect three years of deficit exceeding 10%.It should reach around 1.6 trillion dollars this year.

If the financial world does not doubt the ability of great leaders of the first world power to agree, for the good of the global economy, the timetable is narrowing. And rating agencies do not fail to recall. Thus, after Standard & Poor's in April, Moody's puts a sudden extra pressure on Thursday by threatening to put the debt rating of long-term United States, currently at AAA, on negative watch, implying an actual deterioration in the coming months.

No to raising the ceiling

Yesterday, Wednesday, Barack Obama received dozens of Republican representatives in the White House. These, a majority in their meeting, refused to give the green light to an increase in the federal debt ceiling because of cuts in spending."We need to tackle this debt," said out of the meeting the head of the budget committee in the House, Paul Ryan, author of a draft budget with drastic cuts in funding for the welfare state and criticized by Democratic allies of Barack Obama.

Tuesday night, the House rejected by 318 votes against 97 an increase of 2,400 billion of debt ceiling, a move described as "irresponsible" Democratic side.

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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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The Japanese government thought about it and he did. The operator of the plant in Fukushima Tepco come under his control. The Japanese government has indeed released Friday details of a financial rescue plan to help compensate victims of the nuclear accident that hit Japan on March 11. "The purpose of this plan is not to bail Tepco, said Friday the Japanese Minister of Economy, but to ensure that victims are properly compensated." The operator will be under the supervision of an independent commission to strengthen the de facto government's influence on the conduct of its affairs.The government project, hotly debated within the team of the Prime Minister's center-left, Naoto Kan, has yet to be voted by Parliament.

Between 26 and 43 billion euros in compensation for victims

This plan includes the creation of a structure financed by both state funds and contributions from various private power companies in Japan. This entity will help Tepco through grants of bonds (5,000 billion yen by the Japanese press) convertible into cash, to compensate the estimated 85,000 victims of the nuclear disaster. Japanese media say that the operator should have to pay from 3000 to 5000 billion yen in total (26 to 43 billion euros).Tepco should also pay annually between 100 and 200 billion yen this structure (from 870 million to 1.74 billion euros), according to Japanese news agency Jiji.

The government even asked the banks that have lent 1.4 trillion yen (11.7 billion euros) to Tepco to waive a portion of their claims vis-à-vis the operator. "People do not understand that public funds are injected into Tepco if banks did not give their side a portion of their claims vis-à-vis the operator of the nuclear power plant in Fukushima," says Government spokesman Yukio Edano credit reports free.

TEPCO will have to sell financial assets and properties

Anxious not to appear to give a blank check to the company criticized for his role in the nuclear incident, the government also demanded that she undergo Tepco a number of conditions. The company will mainly sell financial assets and properties in order to concentrate its resources on the production and distribution of electricity.In addition, the eight most senior executives of the company will also waive any compensation and personnel managers to ordinary workers, will also undergo substantial pay cuts.

In addition to the huge amount of compensation, TEPCO will have to pay an extra bill to increase hydrocarbon production in thermal power stations, eleven of its nuclear reactors have been arrested since the disaster, counting those in the central hilly.Group CEO believes that these additional imports of gas, oil and coal would cost him 1,000 billion yen (8.7 billion euros) over budget during the year to April 2011 to March 2012.

Bank stocks fall at the Tokyo Stock Exchange

Result of this announcement, bank shares fell sharply on the Stock Exchange on Friday: Sumitomo Mitsui Financial Group sells at the close of the Tokyo Stock Exchange 3.80% to 2452 yen, Mizuho Financial Group, 2.98% to 130 yen and Mitsubishi UFJ Financial Group 2.79% to 383 yen.Due to the collapse of the market capitalization of Tepco stock market that has lost more than 80% between March 10 and April 7 last, Sumitomo Mitsui Financial Group (SMFG) could announce a loss of about 80 billion yen ( 696 million euros), Mizuho Financial Group, 50 billion yen (435 million), and Mitsubishi UFJ Financial Group (MUFG), 30 billion yen (261 million).

Opponents of the gas and oil shale will not be satisfied with the recent announcements by the government is considering banning the extraction of hydrocarbons in May. National coordination group opposed to the gas and oil shale holds since Friday until Sunday a series of rallies in the south and east and in the Paris region, in areas where the government has issued permits exploration or considered the possibility. Planned events include Saturday in Marseille (Bouches-du-Rhone), Meaux (Seine-et-Marne), Rousson (Gard), Donzère (Drôme), Lyon (Rhone) and Lons-le-Saunier (Jura). Sunday, decreed a "national day of mobilization", other gatherings are planned in Cahors (Lot) and Blyes (Ain). Protesters call again the firm and definitive cessation of these hydrocarbons.New anti-capitalist party (NPA) on Friday called on to participate in the mobilizations.

The recent pronouncements of the Ministry of Ecology and Prime Minister, if they have a little reassured opponents, have not entirely convinced. So they refuse to release the pressure. "We see it is understood (…) Now we are asked to repeal and only then that the mobilization will stop," said Anne Lacouture, Assistant José Bové, leader of the protest. MEP Ecology Europe will participate Sunday in the Aveyron mobilization in its stronghold in Nantes, which gave its name to one of the permits issued by the former Minister of Ecology Jean-Louis Borloo. These allow large groups to explore for oil and gas in areas that may contain shale gas.The Department of Ecology has acknowledged that three licenses granted in the region in March 2010 were used for the exploration of unconventional oil. The legal uncertainty that currently exists on the issue can not be sure whether other permits issued in recent years does not apply also to search for and extract gas from shale.

A report due by François Fillon

Before the wind of revolt, Prime Minister Francois Fillon said Wednesday the cancellation of licenses already granted. The Minister for Ecology Nathalie Kosziusko-Morizet had requested the suspension of exploration work in February, a form of de facto moratorium. A bill must be considered in an emergency procedure from 10 May to the Assembly to formally ban them extraction.Si the ban is passed, it could however be only temporary.Francis expects Filllon including the report of a mission "to better understand the shale gas." Eventually, a development of the mining code to strictly supervise the extraction of these hydrocarbons is not unthinkable, say experts elsewhere.

François Fillon on Wednesday gave impression that the government reserved the option to "go again" projects "in a way maybe a little more acceptable the next time," said Anne Lacouture. "For us, it is not acceptable, regardless of how it's done," she added.The techniques used to release the hydrocarbon trapped in the rock, the injection of very high pressure water mixed with chemicals, fears of pollution of groundwater, the devastation of the landscape and environment and development Risk-based economies, as in the Aveyron, on high-quality agriculture and tourism.

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Chinese Lenovo did not hesitate. To compete with Apple on the market shelves, Lenovo has dubbed his "LePad. Almost the same pronunciation in English and virtually the same as the now famous letterpress iPad.

The market for slate or internet tablets, cleared by the firm at the apple, should represent between 55 and 60 million units worldwide in 2011 and encroach a little on the notebook market, say the research firms iSuppli and Gartner. Lenovo, China's first brand and PC World number four since he bought the PC division of IBM, had to enter the market shelves.

The LePad, who chose the Android operating system from Google, looks like the shelves of its competitors Archos, Samsung, Dell, Toshiba and Motorola.Other manufacturers are on the starting line, such as HP and the California Research In Motion (RIM).

Available this year in France

Lenovo has two advantages: a strong brand recognition in the Chinese market, where the group has a distribution network which irrigates the very end of campaigns, and the price of the product, less expensive than the iPad. The proposed LePad is 3499 yuan, or 377 euros, against 489 euros for an iPad functions comparable in terms of memory (16 GB) and internet access (Wi-Fi).

In addition, Yang Yuanqing, CEO of the Chinese group, has already warned it would launch a second version of its LePad, "in September or October." The next shelf has been designed in parallel with the first product by another team. The upcoming slate will be fine, "said the CEO of Lenovo.But most observers believe that the Chinese group will continue to opt for software from Google, which should allow it to tighten its prices.

"About a dozen bars in the developing world use our operating system, recently told the Figaro Andrew Rubin, the head of Android at Google, which states that" the experts we attribute about 20% of the market shelves the last quarter of 2010. " That share could rise, like Google's breakthrough in smartphones, to the detriment of the iPhone.

The tablet should be given LePad outside China, including France, "in the course of 2011," says the group's subsidiary.

However, its availability, including in the Middle Kingdom, is in question.The earthquake in Japan, March 11, could affect the supply of components of the tablet, said an official to Lenovo was quoted Tuesday by The Wall Street Journal.

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