Top Economics News

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.

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The bill to nationalize the oil company YPF, the Spanish subsidiary of Repsol was adopted Wednesday in the Argentine Senate committee, which should allow the vote in plenary sitting of the text ; re next week.

Argentine President Cristina Fernandez announced Monday his intention to nationalize 51% of YPF, the first oil company in the country, drawing criticism from the international community.

Wednesday, the government decided to include the company YPF Gas, another company controlled by Repsol, which distributes propane and butane, in the Bill of nationalization of YPF.

The action YPF, which had already fallen in anticipation of the announcement of the nationalization, has still dropped 28% Wednesday. 

Tuesday night, Argentina announced that it had no intention of paying the $ 9.3 billion (7 billion) claimed by Repsol YPF to 51%.

"Everyone knew that the risk of nationalization was high," said an Argentine economist familiar with the matter YPF. "But now we have more information on the price that Argentina wants to pay for a controlling stake in YPF."

The United States said Wednesday that the proposed nationalization was a "negative development" and said they were very concerned.

Spain for its part should ask the EU to avail of the World Trade Organization (WTO) to ensure the open proceedings against Argentina.

A meeting of European foreign ministers is scheduled for Monday to decide how to resolve the dispute between the two countries.

Sony's new boss Thursday drew the outlines of a recovery strategy includes 10,000 job cuts and a focus on mobile electronics and medical equipment, in hopes of re reconcile the group to profitability despite its difficulties in televisions.

Kazuo Hirai, who succeeded last month in Howard Stringer to the general direction of Sony, has doubled the forecast annual loss of the group to a record 4.9 billion euros and is faced with the daunting task of rehabilitating the brand, trailing Apple's U.S. and South Korea's Samsung Electronics. 

"We heard the many voices calling for change of investors," said Kazuo Hirai before a crowd of journalists gathered at Sony headquarters in Tokyo, not far from the first plant group, opened 65 years ago.

"Sony will change," he promised.

Sony, like its Japanese rivals Sharp and Panasonic, has suffered in recent years a decline in demand for televisions, fierce competition and competitiveness weighed down by the strong yen.

To bounce back, the Japanese manufacturer of consumer electronics said he wanted to strengthen its business in mobile phones, digital cameras and games, while seeking strategic investments in mate ; riel medical and batteries for electric vehicles. 

The group also confirmed press reports that he would eliminate about 10,000 jobs, or 6% of its global workforce, and provisionnerait a restructuring charge of approximately 75 billion yen (705 million) on the current fiscal year, ending March 31, 2013.

Sony also intends to reduce its costs by 60% and 30% fixed operating costs in televisions in 2013-2014.

"We can not shy away from tough choices," said Kazuo Hirai.

BET ON ENDOSCOPES … AND PORTABLE

By focusing particularly on medical equipment, which is booming, Sony aims for 2014-2015 a total turnover of 8,500 billion yen (80 billion) and operating margin of more than 5%.

The inventor of the Walkman and the PlayStation was one of the frontrunners to an alliance with the Olympus medical equipment manufacturer, which owns 70% of the global market for diagnostic endoscopes but whose finances have suffered from a large accounting fraud discovered last fall.

Sony sees endoscopes, it could enrich its imaging technologies, a growing market. He also said he was looking for partners to make batteries for electric vehicles.

"Expanding its presence in the medical field and electric vehicles is a good thing because these activities have better margins and these are areas where Japan has been proven," said Michael One (Beyond Asset Management).

But Sony has also promised to put smartphones in the heart of its turnaround strategy to triple its sales in mobile telephony to 1,800 billion yen over the next three fiscal years. Some analysts see an inconsistency.

"We do not understand exactly how they will adjust their activity in the electronics, nor how they will again create value," said Tetsuro Ii, president of Commons Asset Management.

Sony Ericsson has already bought full control of their mobile phone joint venture Sony Ericsson to strengthen its position in a market dominated by Apple and Samsung. He has since launched its first smartphone, the Xperia range, under the Sony brand.

Prior to these announcements, Sony has the action ended Thursday up 0.86% to 1,528 yen in Tokyo Stock Exchange.

The Group's market capitalization has shrunk by almost 20% over the last month. Samsung is now ten times and Apple – that some Sony executives were considering buying in the early 90 – thirty times.

EDF Energies Nouvelles and Alstom are the big winners of the first tender for wind turbines off the French coast of the Channel, the second one being planned in the second half to achieve the target set for 2020.

This tender, intended to kick-start the offshore wind sector, should help France catch up it has accumulated in other European countries in terms renewable energy and reduce its dependence on the nuclear-vis.

The Industry Minister, Eric Besson, announced Friday the award of contracts representing a total capacity of 2,000 megawatts, the equivalent of two small nuclear reactors. 

These capabilities are less than a third than originally expected, the field Tréport (Seine-Maritime, Somme) has not been allocated for lack of sufficient competition.

The consortium formed by Alstom and EDF with Danish Dong Energy and won three of the five fields involved: Saint-Nazaire (Loire-Atlantique), Fécamp (Seine-Maritime) and Courseulles-sur-Mer (Calvados), or a volume of about 240 wind turbines.

Spain's Iberdrola and the French group Areva will see their side of the field jointly awarded the Saint-Brieuc (Côtes d'Armor), which should bring 100 turbines.

GDF Suez, which had also formed a consortium with Areva, gets nothing at this stage but will compete in the second tender. 

"This decision will enable France to continue the development of renewable energy that are, next to nuclear power one of the two pillars of our policy e ; nergétique, "said Eric Besson at a press conference.

"A NEW INDUSTRIAL SECTOR"

He confirmed the target of 6,000 megawatts of capacity by 2020, as set by the Grenelle Environment for offshore wind and marine energy. The latter also include turbines, turbines use the energy of ocean currents, for which a separate tender is planned within two years.

The second tender will involve particular area Tréport and that of Noirmoutier, he said.

The selection of candidates announced Friday an investment of seven billion euros and the creation of 10,000 direct manufacturing jobs, argued Eric Besson.

"The foundations of a new industry and export are asked," welcomed his side in a statement the consortium led by EDF Energies Nouvelles, a subsidiary of EDF.

While Alstom plans to invest 100 million euros and generate up to 7.500 jobs with its partners, the challenge will be for the group to impose its new generation of turbine Haliade, inaugurated on March 19 to book (Loire-Atlantique).

Alstom, which confirmed Friday the establishment of four plants in Cherbourg and Saint-Nazaire for its wind Haliade says that orders, amounting to over two billion euros, will occur by field field from 2014.

Areva has now put forward his experience and that could create 4,000 jobs in France, including 1,000 in its single perimeter, while GDF Suez has raised up 'to 6,000 direct and indirect jobs.

Increasing the number of unemployed is expected to slow in February, according to the head of state. He sees a sign of economic recovery. For the month of February, Nicolas Sarkozy expected to increase "quite moderate" unemployment.

The president candidate unveils unemployment figures in February. Nicolas Sarkozy says the monthly unemployment statistics, which will be published on Monday evening show "a fairly moderate increase" the number of job seekers for February.

"The numbers tonight will demonstrate an improvement in the situation with a declining trend in increasing the number of unemployed. This increase is quite moderate," Sarkozy said on France Info. He said it "reflects a significant economic recovery since we tried to solve the financial crisis in Greece, this financial crisis that created a crisis of confidence, which itself creates an economic crisis".

In January, the number of unemployed rose by 0.5% compared to December, a rate cut in half compared to previous months, the total number of unemployed at 2.8 million people.

Barcelona and Madrid are struggling to accommodate "Eurovegas", a project that could generate 164,000 direct jobs and 97,000 indirect jobs. An employment agency in Malaga. Spain has an unemployment rate above 20%

Under the slogan "No Eurovegas", a platform to mobilize citizens to Spain to fight against the project a huge casino complex, inspired by Las Vegas and expected to provide over 260,000 jobs in a country affected by unemployment record.

"It's the return of the economic model of the building to a fault, it's not a sustainable source of employment," denounced one of his representatives, Ana Sanz, during the presentation of the platform form in Madrid on Wednesday. "This project is going back to a model that failed with the crisis," added another member of the group, Carlos Ruiz.  

"This project" is a huge complex centered around the game, which are fighting for the two largest Spanish cities, Barcelona and Madrid. "Eurovegas" as he was nicknamed, involves the construction of six casinos, 12 hotels offering 36,000 rooms, nine theaters and three golf courses, according to Spanish media. It will generate an investment of 15 to 18.8 billion euros and the creation of 164,000 direct jobs and 97,000 indirect jobs.

Its promoter: the gaming giant Las Vegas Sands, owned by American billionaire Sheldon Adelson, who is expected to announce in early summer if the giant complex will be the day or not, and if so, which of the two cities is drawn . But official data are not easily accessible and opponents denounced Wednesday "opacity" surrounding the project.

The numbers of jobs "that we are selling are not real," says Ana Sanz also. Mired in crisis, Spain in late 2011 showed a record unemployment rate of 22.85% and almost a quarter of its workforce (24.3%) should be unemployed by the end of the years, according to government forecasts. In this grim context, perspective, even fuzzy, a project expected to generate 261,000 jobs enthusiasm the political and economic leaders.

"More than half of Madrid unemployed could find work", was launched in February the President of the Madrid region, Esperanza Aguirre, saying negotiate with billionaire since 2006. "We will change all the rules need to be changed, so long as is consistent with our principles", she also promised. For its part, the president of Catalonia, Artur Mas, has said the project would drain a "quality tourism".  

In addition to a return to the worst excesses of the housing boom that fueled the Spanish economy until the bubble burst in 2008, critics of "Eurovegas" denounce them preferential treatment, and legal tax proponents have claimed. "It will be a free zone where laws will be imposed by the investor," worries Carlos Ruiz. He said Las Vegas Sands would have required such that "any request for funding, the Spanish state shall guarantee" that "the project companies do not pay VAT," a moratorium "on ten years of taxes on the game "and further that" it changes the law on money laundering ".

Smoking would be allowed in the complex, while smoking is prohibited in bars and restaurants in Spain since January 2011. "There is a risk of opening the mafia of prostitution," added another representative of the platform, Cristina Fernandez. According to the spokesman for Las Vegas Sands, Ronald Reese, "negotiations with all levels of government are very advanced." "I assure you that these are not agreements that will change the structure (legal) Madrid, Barcelona or Spain," he added last week on public television. However, without reaching to reassure his critics.

The rating agency Standard and Poor's downgraded Monday the credit rating of Greece to "SD", a level corresponding to "selective default. Anti-austerity protesters in Parliament in Athens on 7 February 2012.

. The rating agency Standard and Poor's downgraded Monday the credit rating of Greece to "SD", a level corresponding to "selective default", to reflect the restructuring of government debt launched Friday. S & P said in a statement it plans to raise the rating of the country to CCC rating assigned to issuers of poor quality with a real risk of default, when this operation has been fully carried out, probably around mid- in March.

The decision of the U.S. Agency was expected since it had indicated in the past it would raise the note by Greece SD begin as soon as the implementation of the Agreement on Cessation of Athens claims made by private financial institutions. However, "if a sufficient number of bondholders (public) Greek did not accept the exchange offer," wrote S & P said in a statement, "we believe that Greece would present an imminent risk of default characterized payment "to the extent that the release of the rest of the assistance promised to the country by the euro area and the International Monetary Fund is subject to the successful debt restructuring of Athens.

A default is characterized reflected in the note "D" in the notation of S & P. "I take note of the decision" S & P, said the leader of Finance Ministers of the euro zone Jean-Claude Juncker, in a statement released in Luxembourg, adding that he expected a "strong participation "of private creditors in the operation launched Friday.

This exchange transaction should allow Greece to obtain a cancellation of debt of 107 billion euros. Greece aims to give private creditors participating in the operation of shares worth 53.5% less than those they currently hold. A quarter of those titles that creditors will receive bonds from the European Stability (EFSF), presumably with a maximum maturity of two years. The rest will consist of new Greek bonds with maturities ranging from 11 to 30 years, a period much greater than those they replace.

The goal is to push the repayment schedule of Greece on the amounts it still accepts honor, for giving him time to recover. If successful, "we should consider that the incident of the partial failure of Greece belongs to the past," wrote S & P, for which the possible increase of the rating to CCC would then account "the economic growth outlook uncertain of the country "and its" public debt remains strong ", even after restructuring.

Iran has refused to hand over to Greece 500,000 barrels of crude oil as part of retaliatory sanctions of the European Union related to Iran's nuclear program, reports the Sunday 'unofficial news agency Fars.

"Tankers who had surrendered (to Iran) to load 500,000 barrels of Iranian crude to be delivered to a refinery Greek had to leave empty, Iran has refused to make delivery, "wrote Fars without specifying its source.

Iran has stopped selling crude to British and French companies in recent days. Its oil minister warned on February 4 that the Islamic Republic would cut its oil exports to "certain" European countries.

Key values ​​to follow Friday on Wall Street.

* GAP has disappointed expectations Thursday, saying wait for fiscal 2012 earnings per share 1.75 to $ 1.80, while analysts polled by Thomson Reuters I / B / E / S on average had expected $ 1.79.

Gap posted a fourth quarter profit of $ 218 million, or 44 cents a share, against 365 million (60 cents) a year earlier.

In pre-market value fell by 2% to 23.10 dollars.

* AMERICAN INTERNATIONAL GROUP. The insurer reported a profit of $ 19.8 billion in the fourth quarter of 2011, due to an accounting change that allowed him to display a huge windfall.

This change, which raises the price of AIG from 6.5% to 29.81 dollars in pre-market means that the group will not pay tax on billions of dollars in profits in the coming years.

* Interpublic. The advertising agency has published a quarterly profit above expectations, thanks to emerging markets in a context of recovery of the sector.

EPS for the fourth quarter is 50 cents per share while the market was expecting 39 cents per share. Revenues for the quarter amounted to $ 2.07 billion, or less stable over one year. The turnover abroad rose by 6%.

In 2012, Interpublic expects organic growth of 3%.

In pre-market value gains 4.2% after finishing at 10.91 dollars Thursday.

* CITIGROUP. The bank has raised $ 1.95 billion sale of its stake in Indian company Housing Development Finance Corp, said on Friday, sources familiar with the matter.

In pre-market value gains 1% to 32.95 dollars.

The EDF Group, through its subsidiary EDF Energies Nouvelles Spread (EDF ENR), today announced it filed Friday an offer for the resumption of Photowatt, the only French manufacturer of solar cells ; silicon.

Nicolas Sarkozy announced Thursday that he will present next week a bailout of Photowatt, the leading French photovoltaic, involving EDF.

The company employs 441 employees at Bourgoin (Isère), was placed in receivership after filing for bankruptcy last November. 

The Head of State, speaking during a visit to the Fessenheim nuclear power plant, said he would travel next week Photowatt "because thanks to EDF, we pre ; senterons employees Photowatt a formula of industrial recovery. "

In a statement, EDF said that Photowatt owns 40% of PV Alliance, the leading research and development in the field of photovoltaic technology, in which EDF ENR has already a 40% stake alongside the CEA (20%).

"The offer of EDF ENR will be conditioned to include the recovery of 100% of PV Alliance and to obtain an exclusive worldwide license on heterojunction technology, called to replace the current technology in the years to come, "the group wrote. 

"Given its presence in Photowatt through PV Alliance, EDF ENR appears as the natural candidate for the resumption of Photowatt," said Jean-Louis Mathias, Chief Executive ; EXECUTIVE group in charge of renewable energy.