Top Economics News

General Motors announced Wednesday consider selling its manufacturing plant in Strasbourg gearboxes and be looking for investors willing to maintain the site activity.

The U.S. automaker, which announced in February an alliance with PSA Peugeot Citroen, has appointed an advisory bank and committed a "strategic review" concerning both the production engineer neering and development of this plant, says in a statement.

He was willing to explore the internal and external solutions to find "viable alternatives and potential solutions to secure the future of the site".

General Motors intends to favor buyers who will continue the work site, which employs a thousand people. 

This file may be one of the first industrial sensitive topics for the new president Francois Hollande, in a context of overcapacity in the hunt for European automotive sector.

Last year, the plant produced 280,000 automatic transmissions with six speeds, mainly for GM brands and BMW, mostly for vehicles assembled outside Europe.

This is the second time that General Motors is trying to lease the site. During the 2008 financial crisis, the company charged with liquidating the assets of the American manufacturer had not found a buyer. In 2011, a year after his brief for the procedure of bankruptcy, GM had bought the plant for a symbolic euro.

At the time, employees had accepted a two-year wage freeze in exchange for guarantees on jobs.

"There are several commitments in place to continue the manufacture of transmissions for years," assured Jim Cain, spokesman for GM.

Lloyds has surprised investors by announcing Tuesday a 36% reduction of its bad debts and a quarterly profit after the loss of 3.5 billion pounds (4.3 billion) realized a year ago.

At midday, the action of the British bank and advanced 2.32% to 31.73 pence while the FTSE 100 London Stock Exchange, the only open in Europe in May 1 , gained 0.24%.

The UK bank has yet announced that it had a fresh supply of 375 million pounds (459 million) in its accounts for the first quarter to cover the reimbursement of customers who potentially overpaid for certain insurance policies. 

Lloyds 40% owned by the State since the 2008 financial crisis, said the increase in provisions in the case of insurance policies had been decided e given the increasing volume of complaints received, echoing comments made by Barclays last week about it.

Last year, Lloyds had already funded £ 3.2 billion for the same reasons.

The group also said that the sale of 632 programmed agencies made little progress, while being pessimistic about the UK economy, fallout recession in the first quarter.

"We think the economy will stagnate this year but it will be a long and difficult recovery. We anticipate a resumption of growth in 2013 and a peak in unemployment of almost 9% early next year, "said Antonio Horta-Osorio, Director General ; ral

. Lloyds bank has cleared the first three months of a taxable income Statutory 288 million pounds over the period, against 316 million the previous quarter

. The largest British settlement in terms of customers reported a level of bad debts to 1.7 billion pounds

.

The Eramet Group, whose sales fell 10% in the first quarter, said Thursday that operating profit in the first half should be lower than the first half 2012 due to the falling price of nickel and manganese.

The turnover of the mining group totaled 877 million euros in Q1 2012 against 973 million a year earlier (-7% at constant perimeter.)

The decline is 20% in the activity of manganese and nickel in 13% compared to first quarter 2011, while world production of stainless steel fell by around 3%. 

"As previously announced, average prices of nickel and manganese are the beginning of the year at levels below the current average of 2011 ", said in a statement the group, who still expects an increase of its turnover in the second quarter compared to first quarter 2012.

The CEO of Qatar Airways has expressed interest in studying the case of aircraft developed by countries such as China, given frequent delays at Airbus and Boeing.

Akbar Al Baker, who regularly criticizes two giants of the aerospace industry not to take their time, said Monday that delays of up to three years had thwarted growth plans of carriers in the Gulf region, which now constitute much of the Western demand for appliances.

Qatar Airways has ordered the Boeing 787 Dreamliner, the Airbus A380 superjumbo and the A350, three devices that did not meet delivery dates announced. 

The airline has also ordered smaller devices to 150 seats, as the A320neo. She ordered 50 during Dubai Airshow in November.

Asked if he would consider buying Chinese equipment, Akbar Al Baker said: "Why not? If it is safe, effective, advanced and that it meets the requirements."

The Chinese Comac develops a 150-seat aircraft.

Industry leaders argue, however, it will take at least ten years before China can compete with Boeing and Airbus on larger aircraft.

The Tokyo Stock Exchange ended down 0.53% Thursday, limiting its losses in the wake of the sharp drop on Wall Street and European markets.

The Nikkei fell 52.38 points to 9,767.61 points after touching a low four-week session and the Topix broader point yielded 2.79 points (-0.33%) to 832.57 points.

Toshiba has closed up 1.73%. The world number two flash memories is considering an alliance with South Korea's SK Hynix Semiconductor to buy Elpida Memory, according to the Nikkei newspaper.

Values ​​have been car clearances, leaving Toyota and Honda Motor 0.72% 1.13%.

Arnaud Lagardère, the General Partner of Lagardère, was sold for eight million shares of the group founded by his father Jean-Luc Lagardère.

According to advice published by the Financial Markets Authority (AMF), the shares were sold in five lots between 12 and 16 March. Arnaud Lagardère has sold 346,653 shares, representing 0.26% stake in media group.

Prior to these assignments, Arnaud Lagardere held directly and indirectly 9.62% of Lagardère, or 12,610,893 shares, as the group's annual report in late 2010.

These sales of securities came as the sovereign wealth fund Qatar Holding is mounted to the capital of Lagardère in its interest to 12.8% against 10% previously. The Qatari fund since December is the largest shareholder group.

"The sale of shares made these days on behalf of Mr. Lagardère held as part of the unwinding of a financing package set up by BNP Paribas in 2004 to opportunity of settling the estate of his father and under the relevant contract ", simply commented Lagardère in an email to the press.

"Mr. Lagardère has signed, as such, a term of disposals programmed, September 30, 2011 and including the AMF was informed," says the company. "The declarations of leadership assignments are made directly to the MFA by the operator."

Lagardère, which owns a 7.5% share in EADS, has suffered a heavy loss in 2011, 707 million euros due to massive writedowns past ; are about sports.

This diversification, considered strategic by Arnaud Lagardère, ended last year with an operating loss of six million euros, after sales performance below expectations, loss of several contracts and litigation.

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 debt-swap plan (ISP) must be completed Thursday night. Lack of agreement with private creditors, Greece risks bankruptcy. The agency Standard

Greece is entering a critical period. Its private creditors have until 2000 GMT Thursday to say whether or not they participate in the swap of debt (the famous PSI).

Why the looping of the PSI is it important?

The success of this operation is vital: through it, the slate of Greece (EUR 350 billion today) should be lowered by more than 100 billion euros. Specifically, private creditors must agree to waive 53.5% of the face value of Greek bonds they hold. They must also agree on a new Greek bonds, a longer maturity and bearing a lower interest rate. The PSI is also the condition for the EU and the IMF in the wake unlock a second credit line of € 130 billion to Greece, private market access. European aid plan that provides more than 60 billion euros in aid to banks, which at least 30 institutions only Greek. This massive support to banks, which aims to try to avoid the repetition of the 1929 crisis, however, is hotly disputed, both in the protests in Greece, as the former Argentine Finance Minister Roberto Lavagna, the main architect of his country's recovery after its bankruptcy a decade ago. All denounce the drastic sacrifices imposed on the Greek population in exchange for aid purely financial.

An agreement will he find?

Not sure, and that is what worries the markets. The Greek government is between 75 and 90% acceptance rate for private creditors. But the financial sacrifice is asked of them is important. Their participation in the exchange is likely to be lower than expected. Below 75%, the government has already announced that the project would be abandoned. Greece would be at risk of a default on March 20, when the country must repay a maturity of 14.4 billion euros. The Eurosceptics, like the British think tank Openeurope, opposed the entire plan of aid to Greece, for their part provide a default inevitable future of the country on the rest of its debt will weigh on the shoulders of taxpayers Europe. In the immediate future, the Institute of International Finance (IIF), which led the negotiations with banks on the side of the Greek government, drew a scenario Apocalypse if the PSI was not adopted at least 75%, in a confidential report was leaked to the press. The IIF has amounted to over EUR 1,000 billion cost for the international economy of uncontrolled bankruptcy of Greece in case of failure of the PSI. The report also refers to the ECB in difficulty, and the rapid contagion in Portugal, Italy, Spain.

Is there already private creditors in favor of PSI?

Yes. The heavyweights of European finance announced on Monday night agreed to participate in the deal: three German Allianz, Commerzbank, Deutsche Bank, the French Axa, BNP Paribas, CNP Assurances, the Dutch ING Bank, Italy's Intesa San Paolo The three Greek banks Alpha Bank, EFG Eurobank and National Bank of Greece (NBG) and the U.S. fund Greylock Capital Management. According to Bloomberg, the private creditors in favor of PSI represented 20% of total Greek debt by mid-day. We must now reach 50% in the shortest possible time. Indeed, from this threshold, special provisions allow the imposition, under certain conditions – restructuring to all creditors. In this case, the turnout would be at least 86% calculate the BNP Paribas' experts. Meanwhile Thursday, the Greek government shows its serenity betting on involvement "and substantial enough" to PSI, and repeating the recalcitrant creditors that there will be no better offer.

Officials from the euro area are studying how to delay parts of or the entire second level of aid to Greece, if possible until after the election pre views for April, it was learned Wednesday from European sources.

While the new aid package of € 130 billion is now almost ready, the finance ministers of the euro area are still not satisfied with the commitments of the Greek political leaders to implement the agreement, which realizes that Athens provides further budget cuts and introduce many unpopular reforms by 2014.

There are also doubts about the path of debt reduction Greek. It represents about 160% of Greek GDP and the "troika" consisting of the European Commission, the European Central Bank and International Monetary Fund would like to return to 120% of by 2020.

"There are proposals to delay the Greek package or cut into parts, so that immediate fault is avoided, but without commitment on the whole (package)" said one source.

"The options will be discussed (…) There is pressure from several countries to hold things until there is a concrete commitment in Greece, which could not come before the elections, "they added.

A telephone conference of finance ministers of the euro area must take place at 17:00.

Repair cracks appeared on the wings of the Airbus A380 jumbo could cost up to 100 million euros in the aircraft manufacturer, writes Der Spiegel Sunday.

The identification and repair of cracks on the 69 aircraft already in service would cost in themselves within 70 million, thirty million then being attributable to a change production procedures, continues the weekly said, citing experts and people of Airbus.

Der Spiegel also quoted a spokesman for Airbus, an EADS subsidiary, which states that a long-term technical solution will be found by the summer, without comment on the cost. 

European authorities are preparing to extend the inspection process to all Airbus A380 fleet after the discovery of cracks on the wings of some copies of trè s jumbo jet, said on Wednesday sources close to the matter.

Moreover, in an interview published Monday in WirtschaftsWoche, Louis Welsh, CEO of EADS, said he wanted make 350 million euros in savings this year by unifying procedures for various business functions.

He added that in view of recent successes in the U.S., EADS should seriously consider building a plant there.

Welsh also said that the A320neo should be profitable in its first delivery in October 2015. "Development costs are limited and therefore we will have depreciated even before the start of production" No he said.