Barclays Bank has sold its retail banking operations in France, Les Echos reported in its Tuesday edition.
The newspaper announced on its front page "A" that the British group does want to keep in the Hexagon as their operations to large corporations.
It indicates that the Postal Bank and the HSBC Group "could bid".
No one was contacted Monday evening with the French bank for comment.
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.
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.
Salaries revved up on the Asian continent. In some Chinese provinces, the minimum wage is the same as in Romania. But China is really less competitive? A factory in China flat panel displays.
Competitiveness of Asia is it falling? The English-language newspapers and French launch debate, astonishing figures to support. The Wall Street Journal, remuneration ignite the entire Asian continent. In Thailand, the minimum wage should be increased by 40% in early April. In Indonesia, it has already increased by 20% in many areas in recent months. In China, wages have jumped 181% since 2004. In several parts of China, the minimum wage is now at the same level as Bulgaria and Romania, the newspaper Les Echos.
This surge in earnings, barely slowed by the crisis, he signs the end of the "low cost" in Asia? It is still too early to tell. Certainly, if one believes the economics textbooks, China and its neighbors will lose, with wage growth, competitive advantage in sectors intensive in labor, such as textiles and electronics. A phenomenon which should result in a second step, an upscale Asian.
Except that on the ground, it's not really what we observe, notes Francoise Lemoine, China economist at CEPII. In recent months, China's exports, for example, slowed less quickly than international trade. In other words, the weight of the Middle Kingdom in trade has rather strengthened over the recent period, although the announcement of a record trade deficit has cooled the market!
Moreover, China still has a structural advantage in competitiveness. Wages are only part of the story. We must also look productivity, says Francoise Lemoine. It increases by 10% per year. And foreign companies operating in China are careful not to let this figure decreasing through investments. Indeed, even if wages increase rapidly, especially in the eastern regions which provided further in 2009 nearly 90% of exports, their growth does not exceed that of productivity frankly. Ultimately, the competitiveness of China is still largely preserved.
Especially since the Middle Kingdom has another asset: its reservoir of manpower. China continues to move part of its production in the inland provinces, where wages are lower. Of course, Beijing began a decade ago a rebalancing policy, which should eventually lead to an increased weight of consumption over exports. But do not misinterpret this policy: China has not given up being an exporting nation, says Francoise Lemoine.
In fact, given its advantages, China may well remain very competitive for ten years. However, its scope for growth in the markets today is much lower than that of a decade ago, due to wage increases of course, but also because of the proliferation of protectionist measures, such as the segment solar panels. One statistic sums up the situation in China. Its share in world exports of manufactured goods reached 16%. But in the past, this level has always been a peak for the major exporting countries, whether the United States, Germany or Japan.
Greece does not return to growth until 2014, after four years of recession that have reduced the gross domestic product (GDP) by 17%, estimated Tuesday officials the European Union.
They added that Greece should cut another 150,000 jobs and reduce labor costs by 15% within three years.
"We believe that Greece will return to growth in 2014," said one of them to the press. "We expect a contraction of 4.5% this year and stagnate in 2013. This corresponds to a contraction of more than 17% over four years."
According to these officials, the Greek minimum wage is still higher than in Spain or Portugal. Labor costs increased by over 30% in Greece over the last decade, an unparalleled growth in the euro area, according to statistics from the European Union .
To reduce debt to 120% of GDP by 2020-in accordance with the agreement reached within the Eurogroup on the night of Monday to Tuesday, against 160% currently, Athens must raise 19 billion with 35 planned privatization from 2012 to 2014.
This amount is well below the anticipated 50 billion euros in the first bailout of 73 billion euros but it is included in the second.
The year 2014 would be if Greece would record a primary budget surplus of 4.5% of GDP and where she could return to capital markets, officials said officials.
Unemployment will start to decline until 2014 and also its rate will be the order of 17% and 15% in 2015.
European shares lost ground Tuesday in mid-session, while Wall Street expected a slight decline in market weighed down by disappointing results considered and the fear absence of agreement on a new bailout of Greece.
The CAC 40 was down 0.49% to 3,388.68 points at mid-session, while the Frankfurt Stock Exchange yields 0.74%, 0.42% London and the Eurostoxx 50 declined of 0.54%.
Torn between the impatience of Europe and the exasperation of its people, Greek political leaders meet Tuesday in full general strike, to give their response to measures drastic demanded by donors of Athens.
Investors are also made them more cautious approach to the meetings of European and British central banks Thursday.
"Investors have begun to lift a little from the base until the rate decisions of the Bank of England and European Central Bank (…) while Greece remains a focus of the market, "said Joshua Raymond at City Index strategies.
Side values, ArcelorMittal shows the strongest increase in the CAC 40 and Eurostoxx 50's, with a gain of 2.3%. The steelmaker has published the results meet expectations and be announced ahead of its goal of reducing its debt. Its subsidiary of stainless steel Aperam takes 8%.
UBS was down 0.9%. The Swiss group announced a net profit of 393 million Swiss francs for the fourth quarter of 2011, with a loss before taxes of CHF 256 million in investment banking and prudent for a speech Q1 euro zone.
The Swiss Swatch lost 4.2%, a victim of profit taking after the announcement of results in line with expectations for 2011 and a double-digit growth in demand for watches and jewelery in January .
Alfa Laval lost 8.9%, following orders and operating profit below expectations, mainly because of lower demand from shipyards.
In Paris, LVMH loses more than 3.4%, largest drop in the ACC. The title continues to be a victim of profit taking, just like Swatch, after his strong performance in 2011.
Lagardere lost 5.1% after posting a turnover of slightly worse than expected and have announced writedowns of about 900 million euros.
European shares fell sharply Monday in volume again, failure of U.S. lawmakers to agree on reducing the federal deficit and a warning from Moody's about the "triple A" of France with weighed on investor sentiment.
In Paris the CAC 40 yielded 3.41% at 2894.94 points.
All eyes are on Berlin where German parliamentarians must vote on a proposed reform of the European Financial Stability Fund (EFSF) earlier this afternoon after a speech by Angela Merkel.The Chancellor will then travel to Brussels for EU summits and the euro area, which should provide practical solutions to the debt crisis.
At 9:30, the CAC 40 lost 0.35% to 3163 points while the Eurofirst 300 was almost stable.
European markets are down, investors holding their breath awaiting the outcome of the day announced as crucial for the future of the euro area.
"It is expected that the Bundestag decides on reinforcements EFSF and the role of the ECB in managing the crisis," said a trader based in Paris.
Values, PSA fell sharply under the influence of lowering its forecast for 2011 after a third quarter marked by lower volumes and increased competition on prices in Europe.The group is likely to reduce its workforce by 10% in Europe.
Ingenico, in contrast, was part up 5% in early trade Wednesday of the Paris Bourse, the manufacturer of payment terminals has published the day before its sales for the third quarter.
The euro remains firm and resolutely clings to a level above $ 1.39, while the German Bunds are hesitant, waiting for a clearer trend in equity markets.
Spot gold rose 1% touching a high of more than a month, reflecting investor fears that the crisis drags on still.
Olympus still has the title fell 6.81% Friday, the market value of the Japanese and melted with about 50% since last Friday, the day he announced the dismissal of its chief executive Michael Woodford.
Investors have pushed the action and the manufacturer of cameras and optical instruments of precision to a low of two and a half years, adding to even more pressure on the group to be explained on unusually high consulting fees paid in connection with an acquisition and revealed by the ousted leader.
Olympus acknowledged Wednesday it had paid $ 687 million (498 million) in financial advisors in the purchase of the British manufacturer of medical equipment Gyrus.
These fees represent a third of the price of the acquisition, whereas traditionally they account for only 1% or 2% of the value of a transaction, according to a PriceWaterhouseCoopers study commissioned by Michael Woodford.
POLICE PROTECTION
The latter told Reuters on Thursday it had filed for protection under the British police after submitting new information to investigators British anti-fraud regarding fees.
In the data transmitted to the authorities by Michael Woodford, a former investment banker from Japan appears to be the central figure in the matter of fees.
According to these documents, Hajime "Jim" Sagawa was the owner of AXIS, a financial services company little known American who received the exorbitant fees reported by Michael Woodford.
Olympus, which denies any impropriety, said the fees had been paid to its subsidiary AXIS Axam Investments, a company registered in the Cayman Islands, including Hajime Sagawa was a member of the Board, the report of PricewaterhouseCoopers.
Reuters visited the home of the latter, a former Nomura banker, only to find that his wife, who assured that her husband had done nothing wrong.
INVESTIGATION OF SESC JAPAN
Michael Woodford has also written to the Securities and Exchange Surveillance Commission (SESC), the authority of the Japanese financial markets, asking him to consider the case Olympus.
An investigation by the SESC could take months. Financial Services Minister Shozaburo Jim said the policeman of the financial sector would work, but refused to comment on individual cases.
"Olympus has clearly withheld information to investors. And even if she is not guilty of actions contrary to law, management has breached its obligations vis-à-vis shareholders.It should take responsibility, "said Shigeo Sugawara, manager of Sompo Japan Nipponkoa investments in Asset Management.
Olympus may have to spend significant impairment likely to weaken its balance sheet. And even if, according to manager, many candidates would be interested in the instruments of precision optics group, no one would touch it before the case is improper fees paid.
The company is now worth some $ 4.5 billion.
Brokers have suspended their coverage of Olympus as key shareholders and require that the group be made public links between management and its financial advisors.