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French banks fear that the project of President Francois Hollande to reform regulated savings in France deny them a windfall of cheap liquidity, while debt crisis in the euro area again threatens the ability of banks to refinance themselves on the European markets.

The new head of state, who voted in favor of a pact to support growth of the Agreement on budgetary discipline approved by 25 of the 27 countries of the European Union, wants to mobilize savings of the French to strengthen financial leeway of the state for housing and corporate finance. 

His presidential program provided including a doubling of the ceiling of Booklet A and Booklet Sustainable Development (LDD), currently limited to 15,300 euros respectively and 6,000 euros. They are currently paid at a rate of 2.25%.

Francois Hollande hopes to encourage the creation of new social housing and transform the LDD in "savings book industry" dedicated to SME financing and business innovation.

If investors can not appreciate these reforms, credit institutions such as BNP Paribas and Societe Generale may see whole areas of savings leave their record to head the Caisse des Depots (CDC) that centralizes regulated savings in France.

According to Pascal Decque, an analyst at Cheuvreux, some 83 billion euros of savings could then migrate to the CDC. 

Such a transfer would be another blow to banks

French who have already lost 90 billion euros of deposits last year due to concerns of investors about banks' exposure to Greece and the financial crisis.

"You have liquidity pressures in all sectors for French banks," said Andrew Lim, an analyst at Espirito Santo. The program of Francois Hollande "will put pressure on the deposit market."

Societe Generale has declined to comment on the subject while at BNP Paribas messages left unanswered.

NON-DISCLOSURE OF BANKERS

This regulated savings, which comes mainly from the Booklet A, is collected by the banking networks and centralized at the CDC in exchange for a commission paid to banks. The funds raised finance housing projects, infrastructure and other public projects.

According to statistics from the CDC, the outstanding book A and the LDD reached 295.1 billion euros at end-March.

Leaders of French banks, already reluctant to the idea of ​​a banking reform that would isolate the activities according to their usefulness or not the economy, principal concern is that beyond the housing market deposits and the financing of major projects is entrusted to a public bank.

"Liquidity is our raw material, (Reform Booklet A, Ed) does not help us," said May 10 Perol President BPCE (People's Bank, Savings Bank), parent company of Natixis, radio BFM Business. "It's weird to send money to the Deposit which has no bank branch when there are French banks have 40,000 branches."

"French banks (…) have employees willing to work and to make loans to businesses that need," he added.

The CDC is well mobilized, through its infrastructure fund and Axa Private Equity and Vinci, to fund future high-speed line (HSL) between Tours and Bordeaux, an investment of more than seven billion euros.

"Is it necessary to finance SMEs by the CDC and insurers?" Plague a Parisian banker who requested anonymity. "With Francois Hollande, there is the return to France with the idea that the state does better. This is an old French fantasy. "

Reform of regulated savings" will destabilize the banks, "he says

. While many observers believe that with the new Basel III prudential banks can no longer finance long-term projects, some believe, however, that the state will not only fulfill these investments

. "The challenges of financing long-term investments can not be met if we depend only of a public actor, "says Gerard de la Martiniere, former president of the Federation of French society ; s insurance (FFSA)

.

The one, who runs short of personal cards often face losses in the form of loss of new business orders. Running out of business cards is the worst situation one can get in the commercial world.

JPMorgan has been the subject of Wednesday two lawsuits from some of its shareholders, who accused the bank and its executives for taking excessive risks that led to trading losses of at least two billion announced last week.

A spokesman for JPMorgan Chase declined to comment on these two complaints that were filed in federal court in Manhattan.

Adecco is Tuesday first-quarter results better than expected, while announcing that the European environment is expected to remain difficult as North America, the second largest market of digital ; ro a global placement of personnel, should instead continue to do well.

The net result of the first three months of the yearâ increased 12% to 112 million euros, while analysts polled by Reuters had expected on average 100 million.

"We started in 2012. The turnover of the first quarter of 2012 is almost the same level as in the first quarter of 2011, a solid performance given the headwinds that blow in Europe, "says Patrick de Maeseneire, Director General ral of the Swiss group, said in a statement

. "Our sales in North America continued to hold up well." Revenues

the period rose 2% to 5.035 billion euros, against a consensus of 4.991 billion ..

……. Randstand, Dutch rival Adecco, spoke about the uncertain developments in Europe while the U.S. pre Manpower said ; see a double digit decline in southern Europe in the second quarter

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Francois Hollande took over France in a low growth in Europe depressed, with the main challenges the recovery of public accounts and employment.

The pressure is on the new president, who knows that its room for maneuver is more limited than those of his predecessors.

Having identified the growth as a condition of the reduction of public deficits in Europe, it will negotiate, particularly with Germany, measures to stimulate activity without deteriorating accounts of the States.

In France, he inherits an annual deficit of about € 100 billion, focused on the state and the financial statements. 

He promises to bring the end of 2011 from 5.2% to 3% of GDP end 2013 in accordance with the commitment of France, by raising taxes and curbing the rise in die ; think the effort is balanced between the two.

Priority of the French unemployment rises, it, every month for nearly a year and reached a forgotten since the late twentieth century.

To reverse the trend, adapting the social system and revive the industry, the new president plans to use fiscal and budgetary weapons and engage in important negotiations with employers' organizations and union. 

FAITH IN THE FUTURE

Like his predecessors, he hopes to be helped by a more dynamic growth than await the IMF, OECD, the European Commission and economists. Additional austerity measures could therefore be required.

GDP would grow by 0.5% according to him this year, 1.7% in 2013, 2% in 2014, and 2% to 2.5% from 2015.

Economists at Credit Agricole CIB-felt before the second round it was a forecast "too optimistic".

"Both programs lack a credible comprehensive strategy to boost competitiveness and growth", they added about the finalists.

Francois Hollande opposed to a sudden slowdown in public spending, want to avoid explaining a recessive effect that dry up the revenue of the state and would increase the deficit instead to reduce it. 

Increased spending would be 1.1% per year – against an average of 1.7% from 2007 to 2010 – which would decrease the amount as a percentage of GDP if growth is there.

His relatives said that the rating agencies were watching the growth prospects of the states, not just fiscal ratios.

Degraded by Standard and Poor's earlier this year, the memo from France – ever "triple A" by Moody's and Fitch – is negative outlook for all three agencies, which means other damage are possible.

RECOVERY HISTORY

Francois Hollande promises to balance the public accounts end of 2017, a first since 1974. The effort would be one hundred billion over five years, including about forty by the end of 2013, provided that the annual defense budget.

"Despite the strong commitment of candidates to control deficits, we highlight the historical magnitude of the adjustment would be needed", noted analysts at Barclays.

To lower the debt ratio to GDP, which tends toward 90%, about 80% end of 2017, Francois Hollande provides significant tax increases, where the impact would be in his the less sensitive: the richest households and the largest enterprises.

Thirty billion of new taxes would reduce the deficit, and fifteen more would finance a portion of its 20 billion euros of measures. Some of these measures according to him should support growth and employment, others restore "justice" as the softening of the pension reform.

It is however committed to removing the VAT hike decided for the month of October and that would affect all consumers.

Faced with unemployment at its highest since 1999, Francois Hollande relies on a battery of policy measures – including an increase in recruitment of officials – and on support for small and medium enterprises.

He promises a "generation contract" to integrate young people into the business while retaining older workers, and the creation of 150,000 "jobs of the future", a discount of up to date "youth jobs" of the Jospin government. He announced a refocusing of training on the less educated public and strengthening the capacity of job center.

STRUCTURAL WEAKNESSES

The new president will also reduce structural weaknesses that undermine the French economy since the end of the "thirty glorious years".

The foreign trade surplus that has been ten years since 1950, had a deficit of 70 billion euros last year, a record. The market share of France in world trade deteriorates to 3.3% last year against 5.8% in 1995. Exports and the deficit with the EU, representing 61% of total products sold outside France, widened further.

The imbalance of foreign trade is reflected in the current account deficit, which measures the evolution of the country's debt vis-à-vis the outside, so that almost ; s two-thirds of the stock of marketable debt held by French non-residents.

Francois Hollande surprised during the campaign by his discretion on structural reforms intended to reduce these imbalances.

"The discussions on an agenda of structural reforms (labor, goods and services) are, surprisingly, absent from the campaign of Francois Hollande," analysts at Barclays stressed. "That said, we see reason to believe in the ability of Francois Hollande to reform: the Socialist Party has traditionally good relations with social partners and Francois Hollande is known for build consensus. "

For Gilles Moec, Deutsche Bank, "its goal of zero deficit in 2017 is underpinned by ambitious growth forecasts which we believe are not credible without reforms rapid structural on which the Socialists are now completely silent. "

Deutsche Lufthansa on Wednesday released a quarterly loss higher than expected, attributed to the surging cost of jet fuel.

Operating loss for the first quarter amounted to 381 million euros against a negative balance of 169 million a year earlier. The consensus gave a loss of 289 million euros.

The German airline, which must publish all of its accounts Thursday, has also reported a turnover up 5.6% to 6.6 billion euros.

Lufthansa has also reported a net loss of EUR 397 million against a loss of 507 million a year earlier.

It anticipates for 2012 an operating profit of around 500 million euros.

Honda Motor said Friday it planned for the year that has just begun operating profit increased almost three in favor of an expected surge in car sales Asia and the continued recovery of the U.S. market.

The third Japanese car maker turns the page on a 2011-2012 fiscal year marked by natural disasters-earthquake and tsunami in Japan, floods in Thailand-and the strong yen.

For the 2012-2013 fiscal year, Honda expects an operating profit of 620 billion yen (5.8 billion) against 231.36 billion for the one that just ended. 

This forecast is below analysts' expectations, who see a figure of 645 billion yen, but remained optimistic for a reputable company to the prudence of these projections of results.

"The North American market is gradually picking up and we enter into new segments in Asia. We believe that we will grow faster than the market, "said Tetsuo Iwamura, executive vice president of Honda

…… The latter told … see a car market of 14.3 million vehicles in the U.S. this year, against 13.5 million in 2011

… He added that …… Honda, whose sales of the new version of "crossover" CR-V increased by over 25% in the U.S. since the beginning of the year , wanted to join as soon as possible a share of over 10% of the U.S.

. The group plans to jump from 2012 to 2013 38.4% of its global sales of cars, to 4.3 million units and a 10.2% increase in shipments of two-wheelers, to 16.6 million copies. 

For the last quarter of 2011-2012, Honda has reported a jump of 142.3% of operating profit, the production of Japanese automaker is back to normal Aftern ; s the consequences of the earthquake and tsunami that hit Japan March 11, 2011.

Over the three months to March, operating income stood at 111.98 billion yen (1.05 billion euros), a figure lower than the 123.2 billion average expected by analysts according to Thomson Reuters consensus I / B / E / S.

Net income, which includes the results released in China rose 60.7% to 71.59 billion yen.

Honda is a Japanese manufacturer that has suffered most from natural disasters in Asia in 2011. 

The group has restarted its Thai factory in March after a period of six months.

Economists and analysts are far from unanimous on the eve of the first round of presidential elections on the possible impact of the vote in the markets and the debt of France.

This uncertainty was reflected in an excitement on the market of the French debt, whose resistance was tested Thursday on the occasion of a rumor of dice gradation of the sovereign rating of France.

"The continuation of the gap (between the French and German rates) depend on the evidence that will give the next president of the Republic of the fiscal framework that will implement , and this will depend on the coherence between the presidency and the majority it will enjoy in the Assembly, "said CM-CIC Securities in a note. 

The first round results on Sunday, to measure the influence that extremes may have on the face of the next National Assembly, while a socialist majority in the Senate and that a victory of Francois Hollande in the second round of presidential elections is seen as the most likely outcome among market professionals.

Uncertainty, they agree to say, will remain until the June parliamentary, government's announcement will come out and the decisions it will take to reduce budget deficits ; TARY. 

But, says Guillaume Menuet, an economist at Citigroup, "the markets could react negatively, especially if the candidate of the far left reaches Jean-Luc Melenchon third me, allowing his party and his Communist allies to influence policy, even at the margin ".

"DEBT RESISTS WELL"

A rate strategist at a major bank, who noted the relative stability of voting intention polls, sees no movement on the scale of market unless the two finalists are not Nicolas Sarkozy and Francois Hollande.

"There will not necessarily flow as a seller there is no flow buyer. Like right now, people will stay on the side," he said. He noted that currently, "(despite) the absence of flow buyer, the French debt up well", even as concerns over the euro area are back.

The French rate to 7 years maturity corresponding to the average of the entire French debt, varies from a low of 2.28% in early February 2.5% today, representing a decrease of 22 basis points only.

Many investors point out that the current market will continue to revolve around the financial situation of the countries 'peripheral' in the euro area, regardless of the next tenant of the Elysee. 

"We continue to believe that the first factor in the evolution of spreads will be the evolution of French spreads devices and macroeconomic prospects of the debt crisis in the eurozone" write economists and strategists from Barclays. "The elections will be a secondary factor behind Spain and Italy."

But for Robert Crossley, rates strategist at Citigroup, "the market seems serene, wrongly, on the prospect of victory in Holland. This victory is likely to result in a defeat on the economic front and market confidence "

." Mê ; myself skimming the election rhetoric, the hostility of Holland to the business world and his lack of experience in finance and bond markets begin to undermine the fragile market confidence, "he says

. He however advised to buy the debt of France to favor of widening spreads (yield spread with German debt, refer to the euro area) related to political uncertainties, this spacing to be temporary according to him. He suggests buying French bonds at 10 years and sell bonds or Austrian Belgian with the same maturity.

Meanwhile Sunday, the spread between the yield of the French loan to 10 years and its German equivalent has deviated 29 basis points (bps) since April 12, at 140 bps. The rate of the French loan to 10 years was him, stretched by 21 bps to 3.10%.

On the market very illiquid sovereign CDS, a sort of insurance policy against a default, the spread of the 5-year CDS of France rose from 177 to 210 points from 12 in April.

On the stock market, strategists advise to stay away from French values ​​facing their domestic market but to buy the CAC 40 index.

"The CAC 40 is not France," wrote Credit Suisse those that say that 66% of the turnover of the 40 companies in the benchmark index of the Paris Bourse are outside France, and 36% outside the euro area.

Takeda Pharmaceutical announced Wednesday the purchase for $ 800 million (609 million) of URL Pharma, a U.S. laboratory specializing in the treatment of gout.

The first Japanese pharmaceutical company will provide further value based on future performance from 2015.

Japanese pharmacists are engaged in a flurry of overseas acquisitions, Takeda announced in the May 2011 takeover of Swiss laboratory Nycomed for € 9.6 billion.

URL Pharma achieved a turnover of about $ 600 million in 2011. Its main product is Colcrys, a drug for the treatment and prevention of gout.

Net sales Colcrys exceeded $ 430 million in 2011.

STMicroelectronics (ST) announced Monday that an arbitral tribunal ordered it late last week to pay $ 59 million (45 million) to NXP Netherlands, leading manufacturer of semiconductors ; to lower its margin guidance for the first quarter.

"This award follows a dispute between ST and NXP that involved a claim by NXP for certain operating expenses to be added to the price of chips provided by NXP from 1 October 2008 and 31 December December 2009 to the joint venture created by ST in the field of mobile, "the company said in a statement.

"This award will be reflected in the income statement of our first quarter 2012 and we believe it will negatively impact our cost of sales. This will in turn have a negative impact on our gross margin by about 2.6%. "

ST adds thereby lower its pre ; cédente forecast results for the first quarter as a result of this unexpected exceptional charge, to about 30.4%

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Arnaud Lagardère, General Partner of Lagardère, has made further sales of shares of media group for a little over 1.7 million, after have recently sold for eight million shares.

According to advice published by the Financial Markets Authority (AMF), new assignments were made on 19 and 20 March for a total of 74,247 titles.

Arnaud Lagardère had already sold 346,653 shares between March 16 and 12, or 0.26% of the capital.

The group had indicated that these transactions were within the framework of the "unwinding of a financing package set up by BNP Paribas in 2004 to mark the settlement of the estate of his father and under the relevant contract. "