Aid to Greece may be only a brief respite

The largest ever corporate debt restructuring may be only a brief respite for Greece, a country in recession, which has to bear in addition the uncertainty of the next election .

Greece Friday dismissed the risk of imminent default, thanks to the strong participation of private creditors in exchange for bonds which allow the country reduce its debt of a hundred billion euros and receive a second level of international aid amounting to 130 billion euros.

"This exchange does not solve the situation in Greece," said Holger Schmieding, economist at Berenberg Bank. "Obviously, without him, Greece is in the hole but his problem is the return to growth, without it, no debt burden is manageable."

It is estimated that gross domestic product (GDP) contracted by Greek 15% since 2008. More than one in ten jobs disappeared and more than half of youth are unemployed.

The new austerity measures agreed in exchange for a new international aid, as 20% reduction in the minimum wage, may plunge the country deeper into recession. It would be impossible for the government to achieve the fiscal targets set by international donors in exchange for their help.

"The risk is great that more austerity puts the country to its knees," said Diego Iscaro (ISH Gloal Insight), holding that the social situation could become "explosive" if unemployment continues to rise in a country with almost daily demonstrations against austerity.

Austerity and delays in the reform of the state have made the recession deeper than foreseen in the European Union and the International Monetary Fund since 2010. 

Athens has also consistently missed its fiscal targets and has continued to downgrade to no longer occupy the 90th place out of the 142 countries included in the Global Competitiveness Forum world economy.

"The main reason why the rest of Greece in the euro area is because the choice is really bad. But if we go to press without giving a little air to the economy, sooner or later people will have enough, "says Diego Iscaro

…. RESTRUCTURING ….. MORE SEVERE

Polls show a majority of Greeks remain attached to membership ; the euro area but they are increasingly likely to be tempted to vote for parties that oppose reforms attached to international aid, early elections ; es which could be held in late April

. "If there are elections in April or May, markets Financial will remain about as nervous vis-à-vis Greece they were during the two and a half years, "notes Holger Schmieding. "It would be a huge element of uncertainty for Greece and for Europe".

Even if the recount resulted in a new coalition party of New Democracy and PASOK socialist and if it intended to carry out reforms, it could end up a target of popular pressure e ; standard if the donors demanded more sacrifices during their quarterly inspections.

"If the troika (EU, IMF, European Central Bank) said: 'You're late and you have set up for x billion austerity measures', this risk be the spark that ignites the powder, "said Ben May (Capital Economics). 

In a confidential report, the EU and the IMF warned that the bailout plan can easily derail the debt and return to its pre trade if Greece continues to fail its objectives or if the recession is more severe than expected.

Even if the bailout succeeds in reducing the debt of Greece to 120% of GDP by 2020 as against 160% at present, this new percentage is not considered manageable the long term.

"We think we need to prepare for a more severe restructuring at one time or another, which may imply official creditors," says Ben May. "That's the only way to lower Greece's debt significantly."

The problem is that Greece does not have a good record as it was supposed to reforms undertaken under the first bailout and in this case, donors may be much less streaming in their quarterly inspections.

"If Greece continues to miss its targets, while the troika or later may lose patience and turn off the tap of credit," observed Diego Iscaro.

China interested in electric models by Renault

The Renault range of vehicles that manufacture and market in China will incorporate at least one electric model at the request of the Chinese, said Tuesday the deputy CEO of group.

Renault hopes to produce locally from 2014-2015, joining Nissan in the Chinese market through joint venture that holds its Japanese partner with China's Dongfeng. He hopes to get the green light from authorities by the end of the year to start building its first factory in China.

"Our Chinese partners are very interested in zero-emission vehicles, including electric vehicles," said Carlos Tavares to the press room Geneva Motor Show.

"They asked us to integrate our product plan vehicles of this technology and of course, knowing this is one of our strengths, we agreed to do so willingly, for benefit of the JV, "he added.

"It is tasty as the bet of the electric vehicle is the element that we will return to China, but it is a fact, they asked us."

Renault unveiled in Geneva at the forefront of its electric range, the city Zoe, which will be produced soon Flins (Yvelines). It adds to the Kangoo nonthermal, the Fluence sedan and mini-urban vehicle Twizzy

. Despite a slower start than expected this type of vehicle, the group believes they still account for 10% of the automotive market in 2020

.

0.4% growth in 2011 for Italy

The Italian economy grew by 0.4% in 2011 after an increase in gross domestic product (GDP) of 1.8% in 2010, a figure revised upward by compared to 1.5% retained so far, according to data released Friday by the national statistics agency Istat.

The budget deficit came out last year to a level representing 3.9% of GDP against 4.6% in 2010.

The government forecast for 2011 growth of 0.6% and a budget deficit of 3.8%.

According to Istat, the country's debt stood at 120.1% of GDP last year, its highest since 1996, against 118.7% in 2010.

Chemistry weigh on profits of Bayer in Q4

The benefits of Bayer, the first German manufacturer of drugs, emerged below expectations in the fourth quarter 2011 due to disappointing sales in its chemicals division, and the group has demonstrated caution for this year.

MaterialScience division, the world of polymer foams and polycarbonate for automotive glazing, has seen its quarterly results adjusted to fall by 64%, price increases were not sufficient to offset the higher commodity prices.

Bayer said it expected a significant rebound performance at MaterialScience in the first quarter of this year over last in 2011 but they reach their previous level. 

For 2012, Bayer expects a slight increase in its adjusted EBITDA, with an increase of about 3% of sales excluding currency effects and acquisitions, taking advantage of a rebound expected in the second half thanks to emerging markets.

The group sees the other hand, a real growth in 2013, both for its sales to its adjusted EBITDA.

His four most promising molecules, foremost among them the anticoagulant Xarelto, have a potential combined turnover of around EUR 5 billion, he said. But this potential, however, should not be felt this year.

In the fourth quarter 2011, EBITDA (EBITDA) adjusted fell 8.8% to 1.54 billion euros, while analysts polled by Reuters had forecast average 1.62 billion.

Quarterly net income stood at 397 million euros, while the consensus was 479 million, and revenue was 9.19 billion euros, against 9.114 billion expected.

These ads Bayer contrast with those of its competitor BASF, which surprised investors last week by his decidedly optimistic tone for 2012.

In exchange, the action Bayer yielded 0.8% to 55.45 euros at 1130 GMT, underperforming the European sector index to chemicals (0.1%). BASF took title to 0.6% 66.23 euros.

Lafarge has mastered its debt in 2011, new sales in 2012

Lafarge announced Friday a 14% reduction in its net debt in 2011, thanks to its output activity plaster, and its intention to continue its asset sales in 2012 in the As part of its debt reduction plan.

The title of the world's leading cement and displays the largest increase in the CAC 40 and affects its highest level in seven months, the market welcoming the results better than expected progress in terms deleveraging as investors feared that the group is forced to undertake a capital increase.

Around 10:25, the title, which lost more than 42% in 2011, accounts 6.13% to 33.780 euros, with nearly two million shares, representing already 140% of average daily volume the past three months. The European sector index ahead of his side of 1.7%.

Since the beginning of the year, took the title over 25%, after falling about 42% throughout 2011.

"The internal levers (limitation of dividend, cost reduction) and exogenous (relative relaxation of the funding offer and gradual reversal of trend in the U.S.) reduce the risk of increased capital, "said CM-CIC Securities, which also notes that the results fell less than expected.

Lafarge, which announced earlier this month 460 job cuts as part of an operational reorganization by business to simplify its structure, reduced last year its net debt to 11.97 billion euros, a decrease of approximately two billion over the year as expected. 

"The group's net debt will continue to decline in 2012 through the implementation of actions to maximize our operational cash flow," said Bruno Lafont, CEO of Lafarge, said in a statement ;.

When asked during a teleconference on a target to reduce debt, Bruno Lafont said simply: What can be said is that the debt will be significantly reduced in 2012. "

1 UP TO 4% OF THE MARKET IN 2012

……. . The group's debt, inherited largely from the acquisition of Orascom in 2008, earned him to be downgraded in the "junk" by rating agencies Standard & Poor's and Moody's last year. 

As part of its debt, the group seeks one billion euros in new divestitures in 2012, after 2.2 billion in 2011. It also has limited this year to 800 million euros investment, against 1.2 billion in 2011, achieving in 2012 the bulk – 400 million – 500 million euros of e ; economies already announced and halving the dividend to 0.50 euro per share.

Lafarge also announced in 2011 the closure of its plant Frangey (Yonne), the smallest cement group in France which he pledged to reclassify 75 employees, and the closure of a cement plant in Kansas (USA).

In 2011, the group's turnover increased by 3% to 15.28 billion euros, while net income, group share, fell 28% to 593 million euros, hit by an exceptional charge for impairment of 285 million euros related to the situation in Greece. 

Lafarge plans in 2012 a growth of 1 to 4% of the markets where it operates, especially now the cement (65% of sales) and concrete and aggregates ( 34%).

The output in Europe and Asia-Pacific – including Australia – activity has also strengthened plaster mathematically the group's presence in emerging markets, where growth should still be higher than in mature markets.

The U.S. market should indeed be stable this year and that of Western Europe down 5 to 8%, Spain and Greece in mind.

New economies now account for 57% of turnover, against 52% in 2010 and 32% in 2005.

Rome does not want to organize the Olympic Games 2020

Due to the economic crisis, the Italian capital has decided not to host the Olympics in 2020. Mario Monti, President of the Council, estimated that a candidate is not "responsible".

Rome will not host the Olympics in 2020. Council President Mario Monti said on Tuesday the withdrawal of the candidature of the Italian capital for the organization of the summer Olympics in 2020 stating that it would not be "responsible". Tokyo, Madrid, Istanbul, Doha, Baku remain in contention. The host city will be unveiled Sept. 7, 2013 by the International Olympic Committee (IOC).

Mario Monti announced the renunciation of Rome on the eve of the deadline for submitting applications, explaining it by the current economic crisis and the considerable investment necessary to host the Games. "We came to the unanimous conclusion that the government thinks it would not be responsible, under the present conditions in Italy, to assume these guarantees," he said at a news conference.

The U.S. rating agency Moody's announced late Monday lowered the credit rating of Italy by one notch to "A3", together with that of Portugal also one notch to "Ba3", and that of Spain by two notches to "A3".

"We do not feel able to make a financial commitment that could burden the Italian finances for years. At another point in our history we would have taken the risk, but not now," he said Italian Prime.

The City of Rome, who organized the Summer Games for the last time in 1960, needed a letter of commitment from the government to send its official bid to the IOC. "We lost a great opportunity, but we can only accept the government's decision," responded the president of the Promotion Committee for Rome in 2020, Mario Pescante. "The government's decision was well thought out, and due solely to economic reasons," he admitted, admitting, however, "a lot of bitterness". "Our plan for 2020 Rome was very serious, but the government has been steadfast on the accounts," he added.

Mitsubishi will build more in Western Europe

Mitsubishi Motors announced Monday it would cease later this year to build cars in its sole plant in Western Europe, the Netherlands, a move that was expected after the fall of sales on the continent.

Cars Nederland site, or NedCar, built the Colt and Outlander 4×4 but less than 5% of the total production of Mitsubishi, or 1.1 million vehicles for the year ended 31 March last.

NedCar production, jobs that 1,500 persons, fell to 50,000 vehicles per year, while it has a maximum capacity of 200,000.

Sales of Mitsubishi Motors in Europe accounted for 340,000 vehicles in fiscal 2007/2008 but had fallen to 218,000 in 2010/2011. 

Mitsubishi Motors is building a new factory in Thailand and plans to increase production in Brazil and China.

NedCar, based in Born, was born in 1991 as a joint venture between Mitsubishi Motors, Volvo and the Dutch state. Mitsubishi became the sole owner in 2001 having bought out his partners.

Carrefour Friday categorically denied press reports suggesting a possible change at the head of the group.

Le Figaro wrote that the main shareholders of the supermarket group, funds Colony Capital and Groupe Arnault, have courted Plassat George, the patron of the group distribution of shoes and clothing Vivarte to replace the current CEO Lars Olofsson.

"Faced with rumors successive change of any officer of Carrefour, the Board of Directors of the Company expressly disclaims any information on this release," the group said in a statement.

No one was immediately available from Colony Capital and Groupe Arnault to comment.

Source familiar with the matter, it tells Reuters that George Plassat has been approached by the shareholders of Carrefour to take the CEO of the group but he refused the proposal this month.

"It has been proposed and he said 'no'. It was during November," said the source.

"There is still no candidate to succeed Lars Olofsson," she added.

According to Le Figaro on Friday, the board gave Lars Olofsson to the end of the year to prove itself, especially in terms of achievement of financial targets for 2011.

"(Georges Plassat) is courted for months by the main shareholders of Carrefour.

Renault said Wednesday it intends to develop in India a new car less expensive than compact Pulse, its latest launch date in the Indian market, but at a price significantly higher than the ultra low cost segment.

In its edition of Wednesday, the Tribune reported that Detourbet Gerard, head of the range low-cost Dacia Renault will take the leadership in January of a joint team to the alliance with Nissan in charge of developing a new vehicle in India for emerging countries.

A spokeswoman for Renault confirmed this information, while stressing that the price of the vehicle would be "significantly higher" in 2500 euros raised by the business daily.With its partner Nissan, the group is now seeking to attract the middle class first in the country by launching products in the mid-range and higher, before proposing then vehicles more attractive prices.

Before the Pulse, scheduled for 2012, Renault has launched this year in India Fluence sedan and 4×4 Koleos.

The proposed ultra low cost car, announced in 2008 by the CEO of Renault-Nissan at a price of 2,500 dollars (1,900 euros), for its part has still not been completed when he initially was to be launched early this year , raising doubts about its viability.

Today, the alliance gives more timing and waits for Bajaj Auto, in charge of development of the car, he presented his platform before deciding whether to give it a more industrial.

International creditors of Greece will press Saturday the country's political parties to commit in writing to support the austerity measures required for a new rescue plan and avoid bankruptcy.

Representatives of the European Commission, the European Central Bank and the International Monetary Fund (IMF) will meet with the leader of New Democracy (ND preservatives) was said openly reluctant to provide support for the treatment of austerity imposed by donors.