Financial News Headlines

Made in France is particularly popular in this pre-election period. For Adrien de Tricornot co-author of "Inevitable protectionism" is both inadequate and cons-productive for the country reindustrialise. Interview. But the tertiary sector of the labor market in France is also accompanied by a sharp drop in the industrial sector. Occupations exposed to international competition are the most exposed. Metallurgy and should lose, according to forecasts of CAS, 40 000 jobs. Made in France is particularly popular in this pre-election period. Almost all candidates have made a strategic focus of their program. Why?

In contact with opinion and their voters, candidates understand the concerns that cause deindustrialization. They are therefore obliged to provide answers, more or less satisfactory elsewhere. But behind this reaction a bit demagogic, candidates are especially becoming aware that the trade deficit is causing the budget deficit, and not vice versa. Clearly, that our problems are not related to excessive public spending but the growing industrialization of France. This is reassuring since the diagnosis is correct. Unfortunately the answers thereto are not up to par.

Why? Promote French production is not a good starting point?

This is both superficial and cons-productive. Superficial, because it does not respond to the initial problem: it's not a label or an annuity tricolor French product that we will reach reindustrialise France. Cons-productive or even dangerous, because it leads us to withdraw into ourselves when we are part of a package called the European Union. Our priority must be to bring together our models rather than opposing them. Or give the advantage to the Franco-French products require to ultimately recover from the borders between us and our European neighbors. Suffice to say that we would lose 50 years of progress and of European integration.

VAT Social Nicolas Sarkozy seem to you more able to answer the question of de-industrialization of France?

A tariff intelligent European borders seems a more appropriate response, although more difficult to implement. Anyway, create a social VAT at this time of unemployment and low growth seems particularly dangerous. Taxing consumption will lead to an immediate compression of demand, which is obviously not desirable. Conversely, the success of the device in terms of labor cost is far from clear. For the measurement to be as efficient as possible, it would take a broad base and a strong increase in VAT, which is the opposite of what the government proposes. Therefore, it seems wiser to focus on other ways to offset the decline in the cost burden as the increase in CSG for example, or the tax on financial transactions.

Germany has set up successfully …

It's time to stop with the myth of the German model. German competitiveness is not due to labor costs, but its strong specialization in heavy industry. Indeed, the country has managed to turn to high-end industry and is now enjoying growth in inequality in the world, by building machines from Chinese factories. Moreover, the German population is very different from its French neighbor, giving it the moment a comparative advantage. Anyway I think the comparison is irrelevant between the two countries. More generally, moreover, the manipulation of foreign models, often in politics, most often leads to an impoverishment of the economic debate. Remember when in the year 2000, Germany put Ireland and Britain on a pedestal …

In your book "Inevitable protectionism", you feel that the only answer to our competitiveness problem is protectionism, why?

For years, employment and value added of manufacturing French, European and U.S. are in freefall. For years, the growth of the financial system helped to hide this reality. The use of public and private debt indeed allowed to sustain growth. But the crisis of 2007 brought down the masks: after the financial bubble burst, it became impossible to restore growth. In a way or we must therefore find ways of production.

See also the discussion of Expansion: Is a new protectionism?

How?

The great ideology of free trade, still largely dominant, lulled us into the illusion that global competition could be pure and perfect, and it would lead to lower prices for people, and enrichment of the most poor. In reality, this never happened, and very quickly, new forms of protectionism (unfair) appeared. This is for example the case of the Chinese currency, now largely undervalued, and against which it is impossible to compete! It is also the case for taxation which allows some countries to attract the wealth of others. Faced with this terrible situation two possibilities: either we wait idly by our bankruptcy or they were countered by strong safeguards, but transparent and fair.

What concrete steps do you propose?

We propose to set up barriers at the borders of Europe and more generally to regionalize trade in coherent sets. The idea is to increase the price of imports from countries that do not meet a number of tax rules, social environment. At the social level, for example, one can imagine a system where we would tax the product if wage growth does not follow the increase in productivity. Thus, if the difference between the salary increase of Chinese textile worker and the average gain in productivity of the company is 15%, 15% tax on the product until the gap is not reduced. To avoid paying customs duties, the company's interest to raise wages. This can be transposed at the environmental level: all products whose manufacture has not met the criteria of the Kyoto Protocol for example could be taxed. To be completely concrete, we tried to do the math, a role for monetary dumping: on his arrival in Europe, a Chinese textiles would be taxed to the tune of at least 50%.

Europe seems you ready?

It will be long and complicated but not impossible. Especially Germany defends its interests tooth and nail, but is aware that she eminently need the euro area, the main destination of its exports. Moreover, in the European treaties, customs duties are primarily decided by qualified majority, which offers greater flexibility. However we are well aware that such measures will be implemented in a snap. It is only time to think, the risk that not only the political extremes seize the issue and distract.

Might there be not to antagonize our trading partners?

Today no one can move from Europe as a trading partner, nor the U.S. nor China, which have also not the same reservations that we resort to protectionism. Moreover, it seems that for some of our partners, our lack of reaction is analyzed almost as a sign of weakness and decadence of the West. That is why they will not be surprised to witness the awakening of Europe! When Barack Obama has increased tariffs on Chinese tires, it affected relations between the two countries for a time, and then exchanges came away with renewed vigor, as tariffs for that matter! That's why it's time to stop stigmatizing a priori protectionism, which is not comparable as such to the war or border closures as would have us believe the advocates of liberalism …

When you think of quick cash loans, it means you are going to acquire your funds online. It requires few minutes for the approval of your application and then you are happy with your funds!

OpinionWay poll for Le Figaro and LCI, 57% of French people say they are against an increase in VAT. Other measures announced by Nicolas Sarkozy are they rather welcome. The standard VAT rate will increase on 1 October from 19.6% to 21.2% to compensate for 13 billion euros of lower employer contributions, announced Sunday, January 29 Nicolas Sarkozy a majority of French (57%) are against an increase in VAT in return for lower social security contributions, but approves other measures announced Sunday night by President Nicolas Sarkozy, according to a survey OpinionWay-Fiducial for Le Figaro and LCI released Tuesday soir.28% of respondents are "totally opposed" to "lower burdens on wages and, in turn, the increase in VAT by 1.6" and 29% are "somewhat opposed" .42% in however, support this measure (15% "quite" 27% "fairly positive"). 1% is silent pas.La proposal of the Head of State VAT increase is accompanied by a decrease in payroll taxes. The requirement for companies with more than 250 employees have at least 5% of young people in training is approved at 90%, creating a tax on financial transactions to 77%. 65% approve of "the possibility for social partners to negotiate agreements within each enterprise to define, for example working time of employees," 53% "higher than 30% of construction rights on any ground." For Moreover, Nicolas Sarkozy is preferred to Francois Hollande for "lead France" (39% against 32%, 28% said "neither"), "reduce the debt of France" (35% against 27%, "no of the two "37%)," reform France "(34% against 30%," neither "to 35%)," to get France out of the crisis "(31% against 26%," neither "42%). The socialist candidate prevails over the incumbent president when it comes to" bring the French "(38% against 18%" neither "to 43%). Study conducted on 30 and 31 January with a sample of 1097 people representative of the French population aged 18 and older, interviewed online and constituted under the quota method.

In particular, Allianz gained 5.6% after posting a quarterly operating results better than expected and have claimed to be able to face difficult market conditions.

Earlier this afternoon, the Italian Senate approved the law of financial stability, a set of austerity measures demanded by the European Union to help the country cope with the debt crisis. Council President Silvio Berlusconi has promised to resign and make way for an emergency government once the text approved by the lower house of parliament, which is scheduled Saturday.

"The Italian rates were down significantly today.

Toyota reported Tuesday a 32% drop in its quarterly earnings and abandoned its forecast for annual profit, the impact of floods in Thailand completing disrupt a production line that is not yet fully recovered from the earthquake March 11.

The Japanese automaker also suffers from the strong yen, beating down the profitability of some 1.5 million vehicles exported each year and makes it less competitive with neighboring South Korea's Hyundai Motor.

Despite the unfavorable foreign exchange, Toyota said it did not intend to reduce its cut production, saying instead that he wanted to increase the share of domestic sales in total sales to offset the effect of force the yen.

The builder was particularly affected by flooding in Thailand disaster that claimed more than 500 dead, like Honda, which also dropped its earnings forecasts.

The three assembly plants of Toyota in the country are at a standstill since October 10 and will remain so until at least November 12.

The number of unemployed Germans reached a new record low in October, to 6.5% of the workforce. It increases in numbers against the seasonally adjusted. An employment agency in Berlin

Unemployment has posted a new recession in Germany, in October, on a gross basis, to 6.5% of the workforce. But increased in numbers seasonally adjusted (SA), beating expectations, said Wednesday the Employment Agency. Economists polled by Dow Jones Newswires had forecast a further decline in numbers CVS, the most widely followed by economists as more representative. Overall, however, "the positive developments on the labor market continued," commented the President of the Employment Agency Frank-Juergen Weise.

The NYSE has closed lower Tuesday due to disappointing company results and tried not bode well for the health of the U.S. economy, while the uncertainty surrounding the euro zone has amplified the trend.

The Dow Jones finished down 1.74% or 207.00 points to 11,706.62, while the S & P 500 ended on a down 2.0%, or 25.14 points, to 1229.05.

The Nasdaq composite, for his part yielded 2.26% (61.02 points) to 2,638.42.

The meeting of finance ministers from the euro area scheduled for Wednesday was canceled, but the leaders of the European Union still plan to meet the same day summit, as expected.

"Everyone thought that with the meeting and the summit, the European problem was more or less settled, but the announcement of the cancellation has created a very negative feeling about the chances of a resolution in the short term," commented Steven Neimeth of SunAmerica Asset Management.

On the corporate side, the diverse group was disappointed by 3M reported results below expectations in the third quarter and lowering its forecast throughout the year.

The title sold 6.25% to 77.04 dollars.

The UPS Logistics Group has meanwhile declined by 2.14% to 69.35 dollars after the Director General indicated that predict the U.S. economy continue to grow slowly.UPS, however, reported an increase in profits.

Netflix suffered a spectacular fall from 34.9% to 77.37 dollars after announcing a loss of subscribers higher than expected.

Wall Street opened sharply higher Tuesday in the wake of European stock exchanges, investors wanting to believe the adoption of new measures to deal with the debt crisis in the eurozone.

In early trade, the Dow Jones advanced 2.08% (225.95 points) to 11,271.48 points. The Standard & Poor's, wider, taking 1.78% (20.71 points) to 1183.33 points while the Nasdaq composite clinching 1.68% (41.34 points) to 2557.74 points.

"The market is starting to finally say that European leaders emerged from their torpor," Judge Peter Cardillo, chief economist at Rockwell Global Capital.

"The values ​​of all commodities are generally on the rise.People hope that a global recession can be avoided. "

Like their European counterparts, U.S. bank stocks are up, the S & P financials up 2.6% and the KBW bank index of 2.71%. JPMorgan, the largest increase Dow gained 3.8%.

The publication of an S & P Case / Shiller house prices unchanged in July has only little impact on index contracts before the opening, and investors are now looking to the index of consumer confidence The Conference Board in September, due at 14:00 GMT.

European shares have gradually reduced their gains Monday afternoon due to lack of more precise statements confirming the speculation of interest rate cuts from the European Central Bank (ECB) and new measures to support the banking sector.

The announcement 16h to a decline in home sales in the United States in August has increased the movement.

At 4:37 p.m., the CAC 40 index gained no more than 0.4% to 2821.25 points, while he earned more than 3% at mid-session. The London Stock Exchange lost 0.51%, Frankfurt earns more than 1.1% and 1% EuroStoxx 50E.

"The increase in this morning was purely related to rumors. In the absence of confirmation, the markets are reducing their earnings for several hours," said one speaker. "What the market expects, it is clear statements and figures."

PSA Peugeot Citroën could remove up to 10% of its workforce in France against the expected slowdown of the European car market, write Friday Les Echos and La Tribune, citing union sources.

Initially, 115 jobs will be lost on a voluntary basis and 300 temporary contracts not renewed in Aulnay-sous-Bois (Seine-Saint-Denis), an assembly plant in the Citroen C3, whose future after 2014 and threatened, and 180 positions will disappear in Melun-Sénart (Seine-et-Marne), according to Les Echos.

In the longer term, nearly 10,000 temporary positions, or nearly 10% of the workforce in France, would be threatened by the first French car manufacturer, said La Tribune.

"It's far too early to tell," said a spokesman for PSA that number of temporary positions.

At the end of the Central Committee (IAC) held Thursday, the agreement on the management of jobs and skills signed in April 2010 with the unions, which ended September 30, 2011, been extended to December 31, 2012.

The group's management has identified 980 jobs to disappear, said the spokesman, adding that the downsizing of the site of Aulnay came within this framework and that the site of Melun had not been discussed at the CEC Thursday.

Last week, at the motor show in Frankfurt, the CEO of PSA, Philippe Varin, announced an acceleration of cost savings through workforce adjustments among temporary workers and contractors to address the context economic uncertainty in Europe.

Eric Besson, Minister of Industry said that we should not rush to draw conclusions on possible job cuts coming at PSA.

"Do not cry wolf when there is no wolf," he said on Canal +.

"Let them wonder about the consequences of the crisis on their future and take steps to remain competitive, surprising and shocking."

The insurer Lloyd's of London has suffered in the first half loss of 697 million pounds (one billion dollars, 800 million) due to an unprecedented amount of compensation for natural disasters, including earthquake and the tsunami of March 11 in Japan.

A year earlier, the insurer a profit of 628 million pounds.

Compensation totaled 6.7 billion pounds in the first half, the half of the more expensive 323-year history of Lloyd's.

Many insurers have recorded strong half-yearly losses due to recurring natural disasters, including earthquakes have account in New Zealand and flooding in Australia.

The year 2011 is currently the most severe natural disasters in compensation since 2005.In the first half, the overall compensation totaled $ 70 billion, according to Swiss Re, the second global reinsurer.