Top Economics News

After a year of negotiations, the authorities of the European Union reached an agreement Thursday on the creation of four new EU financial supervision authorities.

These supervisors macroeconomic risks, banking, insurance and markets will be operational from 1 January 2011 and will be staffed, in some cases, a direct power of supervision that may be extended over time.

"We have reached a critical stage: we have found a political consensus on the creation of a European financial supervision," said EU Internal Market Commissioner, Michel Barnier, said in a statement.

"This new architecture of supervision is a key step in our effort to draw the consequences of the crisis to better protect our economy and our citizens in the future," he added.

After adopting this summer in the U.S. law Dodd-Frank, in-depth reform the U.S. financial sector, the European authorities were under pressure to quickly bring these texts, one and a half after their initial presentation by the Commission European.

The prospect of the G20 summit in November in South Korea has also played, the EU wishing to claim a leading role in this field.

"This is a first step (…) this is not the end of the story.But at least we have a European Committee of systemic risk (ESRC) clearly under the auspices of the ECB (European Central Bank), "said Sylvie Goulard, Liberal MEP and rapporteur of the text the ESRB.

POWERS BINDING

The main point of the agreement are as follows:

– Four new authorities were created: a European Committee of systemic risk, which will focus on risks to the overall economy, and three respectively authorities overseeing banking, insurance and markets.

– The first authority will be based in Frankfurt, while the other three have their registered offices in London, Frankfurt and Paris.

– The authorities will have upon creation of a direct power of supervision over certain entities called pan, such as rating agencies, and these powers can be extended to other institutions or activities over the new sector legislation.

– The President of the European Committee of systemic risk will be the President of the European Central Bank for an initial term of five years before the character of the ex officio appointment to be clarified in a revision of the texts provided for in three years.

– It could, alongside the Commission, asking member states to declare an emergency in case of crisis in order to grant extraordinary powers to these authorities.

– These powers will include, under certain conditions, the temporary ban on activities or products known as toxic as was the case for naked short selling at the beginning of the current crisis.

– In such emergencies, authorities may also apply directly to a financial institution without going through the national supervisor or against a decision of that court, to ensure compliance with Community law.

– In case of disagreement between two national authorities, European authorities will have a binding power of mediation in a variety of areas.

– Member states of the EU may invoke a "safeguard clause budget" in order to preserve their sovereignty in this area if it is affected by a decision of the authorities.

Air France plans to create a structure low cost for medium-haul routes, particularly between Paris Orly airport and the province to counter the offensive of the commercial low-cost British airline easyJet, according to Les Echos .

At this time the project would not extend to the creation of a subsidiary low-cost full-fledged business daily said in one of its Friday edition payday loans.

Pilots assigned to Air France and based in the regions would carry 25% of flight hours more, he adds.

A spokesman for the group declined to make comment.

U.S. stocks opened lower on Tuesday despite statistics on house prices better than expected, continuing their trend of the previous day.

In the first exchanges, the Dow Jones was down 0.35% to 9975.21 points, while the Standard & Poor's 500, leaves 0.4% to 1044.73 points. The Nasdaq Composite index yields 0.5% to 2 fast cash.109, 15 points.

The price of single family houses rose 0.3% in seasonally adjusted data in June, against a 0.2% increase expected by economists surveyed by Reuters. But investors nonetheless remain concerned about the health of the U.S. economy.

The tax loopholes enjoyed by the French insurance sector will be planed to the tune of three billion euros, said Monday the Minister of Economy and Finance, Christine Lagarde.

She detailed LCI measures taken in three directions, according to what was announced by the Prime Minister.

In the morning on France Inter, Francois Fillon had said, about the reduction of tax loopholes in the budget 2011: "There will be a number of measures on the insurance because there are a number of anomalies, including differences in taxation depending on the product.

First target, according to Christine Lagarde: the insurance system "responsible and solidarity" enjoyed each other.To accelerate the launch in 2005, the government decided to exempt from the tax on insurance contracts.

"Now it is legitimate to raise the tax on insurance contracts in this sector one, which reported a good success," said Christine Lagarde. "They want special treatment, so it is 3.5% instead of 7%.

Estimated gain for the state, according to Les Echos on Tuesday: 1.1 billion euros.

Second area covered: the life insurance contracts multichannel, consisting of stocks and bonds, for which the payroll taxes are currently levied at the time of finalizing the contract.

"There is no reason to exempt each year.So we go, over water, apply the CSG, the CRDS on these contracts there instead of postponing the imposition of term contract, "said Christine Lagarde.

This device represents a "gain of $ 1.6 billion cash for the state," according to Les Echos.

Another project announced by the Minister of corporation tax will be levied on capital reserves established by insurance companies since 1973 to cope with fluctuations in interest rates.

"This tax will reach 10% over two years, a revenue of 1.4 billion euros for the state," writes Les Echos.

Christine Lagarde reiterated its intention to preserve the tax loopholes supporting employment, innovation and vulnerable population.

"I have said several times that I did not want it removed, planed that the tax benefits is to support employment, or to groups with particular difficulties, or support for innovation companies, "she said.

"We must check the niches that would make windfall every time there is abuse, it will plane if necessary," she also said about a niche for large groups to optimize the sale of their subsidiary.

The U.S. antitrust authorities have given their agreement Friday with the acquisition of Continental Airlines by the parent of United Airlines, UAL.

This agreement will create the world's largest airline.

The U.S. Department of Justice announced that it could complete its review of the record after the decision of both companies give to Southwest Airlines several niches takeoff and landing at Newark Airport near New York.

The United States on Thursday presented a project to strengthen sanctions against what they see as unfair trade practices, some parts might offend China, its largest foreign supplier.

"Today's announcements are a further demonstration of our continuing efforts to improve our mechanisms for regulating trade," said U.S. Secretary of Commerce, Gary Locke.

Some of the proposals could lead to an increase in anti-dumping duties and countervailing measures levied on imports from China, the country most frequently targeted by U.S. complaints for unfair business practices in recent years.

The proposed Washington seeks to strengthen the effectiveness of trade protection in the United States "in various areas," he told Reuters an official U.S. Department of Commerce."This is a process that will continue into the autumn months," he added.

With the fall of the popularity ratings of Barack Obama and the approach of midterm elections, Democrats have begun developing a program "Made in America" in order to support American industry and create jobs .

The reassessment of anti-dumping and countervailing measures comes ahead of the target of doubling in five years for U.S. exports, announced by Barack Obama in his speech on the state of the Union.

The plan unveiled Thursday, however, refrain from any decision on whether to open a formal investigation on China's foreign exchange policy, which could lead to the conclusion that the undervaluation of the yuan is state aid to exporters violating rules of world trade, obviously very sensitive.

China accounted for 19% of merchandise imports in the United States in 2009, totaling 296.4 billion dollars (233.5 billion), making it the first provider outside of the U.S. economy front, in order, Canada, Mexico, Japan, Germany, England, South Korea, France and Venezuela.

CHINA WOULD BE NO DOUBT Annoyed

Less than 3% of U.S. imports, however, are affected by charges of anti-dumping measures, so that the proposals Thursday affect in a small proportion of the goods.

U.S. officials have highlighted three points they think they could have the greatest impact.

The first would require importers to make a cash payment to cover the preliminary duties once they are announced.

The second is to evade taxes Chinese exports of calculating countervailing duties and anti-dumping.It is now standard practice for goods originating in "market economies" such as Japan or Europe but it does not apply to countries' non-market economies "like China.

The latter would "undoubtedly" upset by this proposal because it would lead to higher taxes on its products, officials said the State Department of Commerce.

The third main proposal to end the practice not to impose antidumping orders to companies that can prove for three consecutive years they have not exported goods an unfair price to the U.S. .

Asked by Reuters, a lawyer specializing in commercial law has estimated that these measures were long overdue and found that it does not violate the rules of the World Trade Organization.

"I think they will help domestic industries that have problems with unfair trade practices," said Paul Rosenthel, managing partner in the Washington office of Kelley Drye and Warren.

These decisions should not lead to an increase in dumping cases, but they would improve the effectiveness of corrective measures, "he added.

The business climate in Germany in August reached its highest level in over three years, an unexpected improvement which supports the argument for a continued recovery at a pace that slowed slightly in the first economy in Europe.

The monthly index calculated by Munich-based Ifo Institute rose to 106.7 against 106.2 in July, while economists and analysts polled by Reuters had forecast decline to 105.7.Their estimates ranged from 103.8 to 107.5.

This index is calculated on the basis of the results of a survey of 7,000 companies.

"The German economy is evolving to a higher summer stable," Ifo said in a statement.

The euro briefly extended its rise against the dollar after the publication of the index, amount to over U.S. $ 1.2720 while the German government bonds are expanding their decline.

The component of the current situation grew 108.2 106.8 cons (as confirmed) last month and 107.4 expected.

The expectations component has however declined to 105.2 from 105.6 (revised from 105.5) in July.Analysts had expected a sharper drop, however, to 104.4.

Klaus Abberger, an economist at Ifo, told Reuters that German growth would continue in the second half, but at a slower pace compared to the first.

The surge in exports and a recovery in consumer spending helped the German economy recorded a growth of 2.2% in the second quarter, the most sustained since the reunification.

"The way things are going right now is amazing but great.It's hard to imagine being able to do even better, "commented Andreas Scheuerle, Deka Bank.

"The potential for further increase of the index of business climate begins to diminish."

Klaus Abberger said to expect a slight growth of domestic consumption over the whole year.

European shares ended the session on gains Monday, buoyed by a wave of mergers and acquisitions projects and mining stocks.

The Paris CAC 40 index closed up 0.77% to 3553.23 points and the pan-European FTSEurofirst 300 index rose 0.57% to 1,035.42 points, recovering himself gradually after reaching a low of one month from the close Friday.

The mines have responded positively to a possible abandonment of a new tax in Australia, leading producer of metals in the world.The sector index gained 0.55%, and BHP Billiton, Anglo American, Antofagasta and Rio Tinto closed with respective gains of 0.49%, 1%, 1.58% and 0.56%.

0.79% HSBC took when she announced exclusive negotiations to acquire a controlling stake in Nedbank, fourth largest bank in South Africa, an operation that could reach 5.37 billion euros.

The insurer Anglo-South African Old Mutual, Nedbank, which controls, closed up 3.22% at the London Stock Exchange.

"The day was good thanks to mergers and acquisitions, which is surprising in view of concern over the prospect of a relapse of the economy," said Mike Lenhoff, chief strategist at Brewin Dolphin."Businesses consider that the environment is satisfactory and it is time to make acquisitions."

(Almost) the majority defends Woerth

At the UMP, several voices were raised to denounce as Valerie Pécresse, "attempt to destabilize" Eric Woerth when he led the reform of pensions.

Xavier Bertrand, "if Eric Woerth presented does not at this time the pension reform" the subject would "definitely not" approached in this way. The secretary general of the UMP has lambasted the "excessive" by Arnaud Montebourg and "bad political trial that is powered at this time".

Reminder: The dangerous liaisons Eric Woerth and Liliane Bettencourt

Even Solidarity UMP on the conflict of interest. Francois Fillon said Tuesday before the House that his Minister of Labour is a "righteous man" who has all his "confidence".He denounced the "long procession of anonymous accusations, slander, crows, small political calculations" about this matter.

His government colleagues Chantal and Laurent Wauquiez Jouanno spoke of a "gutter politics".

The Minister of Labour also has the support of his colleague of Economy, who said she was "a bit overwhelmed" for him to Grand Jury RTL / Le Figaro / LCI.

Similarly, Henry Guaino "can not imagine for one moment he could have committed a wrongdoing in this case. For him, "Ms. Bettencourt has no accounts or offshore and whether or not it tax evasion" is not Eric Woerth.

However, Christine Lagarde does not preclude an investigation for tax evasion for Ms. Bettencourt.

But dissonant voices have echoed through the majortié on Tuesday.As for the UMP Villepin, Jean-Pierre Grand, the entry of Florence Woerth Clymene in society "means that Ms. Bettencourt had hired the budget minister.

Alain Madelin, former Minister of Economy and Finance, has appointed Eric Woerth, in "conflict of interest, incompatible with the function". For him, the resignation of Mmme Woerth "may be evidence that [she] does not feel so virtuous as that," and the fetching of the assets of Mrs Bettencourt warrant investigation.

Defenders also outside the UMP

The UMP is not the only one to defend the Minister of Labour. Martin Hirsch, a former member of open government has called on France 2 of "human right, just, mountaineer. With a caveat: "conflict of interest, there are some things to clarify in general."

PS side, everyone does not fall unanimously Eric Woerth.For the member Jerome Cahuzac, the Minister is an "honest man" and "there is no case Bettencourt, nor Woerth case, for now anyway." PS The official criticized the harshness of about Arnaud Montebourg "which I know," he said, it has elements that are based or not. "

In opposition, there are careful … and those responsible

Arnaud Montebourg (PS) was the first, on Saturday, calling into question the maintenance of Eric Woerth the government, on the Express. Com."It seems that Eric Woerth extremely difficult to remain politically in a government that has posted a goal to fight against tax havens," he says.

PS According to MP, the Minister of Labour "has the responsibility to monitor the behavior of taxpayers the most important in France (…) monitor the fight against tax evasion, to suppress the" and "at the same time has a personal interest in the first capital of France ".

"It's called a criminal, I am obliged to note, I do not abuse the words". Arnaud Montebourg has even called on Tuesday the opening of a "judicial inquiry".

MEP Eva Joly (Europe Ecology), former judge on Sunday urged financial departure of Eric Woerth in an interview site Mediapart."It is not unusual to ask a minister to be perfect! (…) In a normal democracy, the resignation is required," she said.

Statements that worth to Eva Joly and Arnaud Montebourg called "professional slander," a complaint from Ms. Woerth, as announced by the Minister of Labour.

The SP requires the Minister of Labour "to explain without delay or detour" on the content of the case. To spokesman Benoit Hamon, he is a "conflict of interest", which "justifies it clarifies exactly the role he played."

They were numerous, as François Bayrou, criticizing the mixing of genres in the case Bettencourt. On Monday, the Secretary-General regretted that MoDem has "not observed" in France "the glass wall that should separate the money matters, private affairs, public affairs."The member of the Pyrenees-Atlantiques has invoked "the necessary caution when you are in a great public service".

For the PCF, this case reveals "alarming proximity between the interests of a number of government members and the interests of large fortunes and finance.

For the second consecutive month, the U.S. economy has destroyed more jobs than it created in July due to the end of temporary contracts linked to the census, and the private sector hired less than expected, which promises an anemic economic recovery.

In fact, the Labor Department announced that 131,000 non-farm jobs were destroyed last month, while 143,000 jobs related to the census were destroyed. The number of job destruction in June was also revised sharply upward to 221,000 against 125,000 originally announced.

The private sector, considered a better indicator of the health of the labor market, has created 71,000 jobs in July.However, after revision, the number of hires in the private sector over the months of May and June fell by 97,000.

The economists and analysts polled by Reuters on average had forecast 65,000 job losses and 90,000 non-farm job creation in private sector.

Despite the job losses recorded in the month, the unemployment rate appears unchanged at 9.5% in July, its lowest level since July 2009.Economists expected a rate of 9.6%.

This can be explained by the final exit of some of the unemployed labor market.

THE FED UNDER PRESSURE

"The employment figures are not bad at the point of forcing the Fed to increase its support measures next week," said Tom Sawanick, chief investment officer at Omnivest.

The state of the labor market is still one of the key elements taken into account by the Federal Reserve in conducting monetary policy, this publication should prompt the Fed to consider its policy.

Its chairman, Ben Bernanke also warned recently that the U.S. central bank, whose monetary policy committee meets next week, could take further measures to ease if the economic recovery were to falter.

"The Fed will probably talk more seriously about an intensification of quantitative easing and what it can do, but the truth is that there is not much to do.This is not a problem of interest rates is a demand problem, "Steve notes, however, Blitz, an economist at Majestic Research.

Advertising disappoint investors as futures on the U.S. indices herald the opening of Wall Street in negative territory, while the dollar declines against the euro and yen.

Last month, the important services sector created 38,000 jobs after the 34,000 job creations made in June

The high budget deficits have also led local authorities to reduce their number of employees as 202,000 civil service posts have been destroyed after the 252,000 cuts recorded in June

However, the area of goods production, against all odds, created jobs after the destruction of the previous month, automakers have not closed their factories in July to reorganize.

Manufacturing employment has also increased to 36,000 after the 13,000 jobs created in June

The production sector has, in turn, eliminated 11,000 jobs.

The average weekly working hours has increased to 34.2 hours, against 34.1 hours the previous month. Employers generally increase the number of hours worked before increasing their numbers.