European shares in the red at midday

The rebound in European stock markets fizzled Thursday and all were down in mid-session, due to renewed fears about the European crisis of sovereign debt, which continues to penalize euro.

In Paris the CAC 40 yields 0.53% (-17.64 points) to 3,295.68 points. After driving the 3350 points on Wednesday, its next support level is at 3270 points, corresponding to the moving average at 200 days, while the next resistance is at 3,350 and 3,425 points, emphasizes the broker Aurel BCG.

In Frankfurt, the DAX was down 0.91% and London, the FTSE drops 0.38%. The pan-European index Stoxx 50 lost 1.14%.

The FTSEurofirst 300 was down 0.52% to 1,045.56, the lowest in two months and sinking support for 1,050 points.

Clearances are again particularly marked on banking stocks due to their exposure to sovereign debt.

A Spanish Treasury auction Wednesday marked by weak demand and yields to rise, despite the austerity budget presented by Madrid, has revived tensions over the debts of pe riphériques within the euro area and fueled a movement of flight to quality benefiting in particular German bunds. 

The resurgence of risk aversion to the approach of a long weekend, on many places, for the Easter celebrations, benefits to the U.S. dollar and in a lesser extent to gold.

On the bond market, the yield on government bonds to ten years in Spain have continued to tighten, gaining 12 basis points to 5.84% after being up nearly 30 basis points Wednesday and pushing the performance of Italian government bonds to rise. The Italian 10-year yield rose 12 basis points to 5.52%. German Bunds continued to benefit from their safe haven status, yields from 10 years to below the threshold of 1.80%.

The spread between Germany and Spain to ten years widened by 10 bps to 400 bps, the highest since late November when it stood at 475 bps, according to data Tradeweb. The spread between Germany and Italy widened 10 bps to 370 bps, then at the height of mid-February.

However, France issued in good condition 8.439 billion of long-term debt.

The price war moves lines, mass dismissals

French consumers' purchasing power stagnant or even declining, leave no alternative: the price war is declared over and intensifies, leading to casualties until the hushed offices s branches.

Treasurers and volatile, consumers hunt for bargains, not hesitating to visit several stores or surfing the net to find the best prices.

"Consumers are facing a first tightening of tax and price increases, wage freezes, not to mention the consequences of rising unemployment which lead them to save by cutting their defi ; think, "explains Alexander Mirlicourtois, an economist at the institute Xerfi. 

"In this context of zero-sum game where everything that is earned by some is lost by the other, the short-term strategies of both producers and distributors are very constraints and go through domination by prices and costs, "he adds.

"This is illustrated by the arrival of Free Mobile."

Frank Esser, head of the mobile operator SFR, which contributes 40% to operating income of its parent company Vivendi, has been sacked for not much anticipated the arrival of Free (Iliad).

This is the latest example. In large groups with the French market still represents a significant portion of revenues and profits, it is not good to be in charge of France.

At Carrefour, the replacement in May of the Executive Director for France did not allow the CEO of leading food retailer in France to save his head and Lars Olofsson will leave in June.

Earlier this year, PSA Peugeot-Citroen, whose market share of passenger cars in France fell in 2011, appointed his finance director Frederic Saint-Geours at the head of the management of brands.

POWER AND WANTING TO BUY

"Households have a strong feeling of restriction. They are bombarded with commercial offerings and have the desire to consume, but they feel very strongly that their purchasing power is not up to their 'will to purchase ", said Franck Lehuédé, Department of Consumer Research Centre for the Study and Observation of Living Conditions (Credoc)

……. .. "They make choices, and the first sector they highlight is the recreation and communication. There is a generation effect: even in times of crisis these areas remain safe havens, "he continues

……. .. "Health is another area that goes well the crisis. In an aging society, crisis or not, health spending increases. "

We must also consider spending constraints , some such as housing and energy soared, pushing consumers to restrict all others, especially the equipment housing, automotive, clothing and even food

. In the car, which has largely lost its role as a social marker, the price war is raging in particular small cars entered e range. This segment, which has benefited most from the scrappage scheme, is struggling since the demise of a measure which, in turn, has used drivers at prices even lower.

Household spending in textile-leather were down 5.6% yoy at end-January, according to INSEE.

In food, arbitrations are equally radical. The sector experienced in 2008 and 2009 two consecutive years of decline, the most since World War II. In 2011, these expenditures have stagnated in volume.

"If households do not necessarily consume less in volume, they consume less," notes Franck Lehuédé.

Carrefour, which France represents 43% of turnover and 39.5% of operating income, failed to divest itself of an image of higher price s that some competitors, and sees the market share of its hypermarkets erode steadily.

ABOVE THE INDEPENDENT

Food service, at the confluence of entertainment and food, is symptomatic breaks imposed by the price dynamics with purchasing power at half-mast. The concentration of the industry structured around clusters, chains and brands, will continue.

Independent restaurants with fewer than three employees, representing 60% of institutions-have seen their market share in the turnover of the sector from 30% in 1994 to less than 20% in 2007 and 2020 groups will distribute 45% of meals provided against 38% in 2007, according to research firm Eurogroup presented March 20 by the National Union of ho ; i-bays, restaurants, cafes and caterers (Synhorcat).

"When consumption is down, there is no other choice but to take customers to the competition through a strategy of capturing market share with a continuous expansion of networks distribution, "Alexander Mirlicourtois analysis. "The price war is no thank you and independents will be the main victims in 2012."

If the market is already locked by major retailers, the development is done either by transfer of a sign shop to another, like the 46 Carrefour stores recently spent ; s the flag-U system, whether by merger to the image network of garden centers and Pollen Villaverde who have come together to give birth to a group uniting 185 stores, now the fifth player in the sector.

The same logic was the end of 2010 the approximation of jewelers Histoire d'Or and Marc Orian, who formed a network of over 500 stores under six banners, high of 370 million euros of turnover. 

When the market is not locked or not, the chains held in place their denser mesh and open new stores. This allows them to have an additional strike force with their suppliers to drive prices down and capture the business of the independents.

But "low prices all year need to go deeper into offshoring, to pressurize perpetual sub-contractors, as soon as possible to substitute skilled jobs by unskilled jobs, "notes Alexander Mirlicourtois.

"If, initially, the price decline is pleasing to consumers, deflation is a deadly poison, it's a vicious cycle that becomes self-sustaining and that destroys the value of all goods than that of labor. "

Casino has sued the Galeries Lafayette on Monoprix

Casino confirmed Tuesday it had sued the Galeries Lafayette and their representatives on the board of Monoprix, a joint venture at the center of a conflict between the two groups.

This new episode of the standoff between the legal and financial concerns the two distributors one-year extension, from 1 April, the mandate of the President of Monoprix Philippe Houze, then he should initially return to Jean-Charles Naouri, CEO of Casino.

"Casino confirms having issued a subpoena last week to the Commercial Court of Paris Galeries Lafayette, Philippe Houze, Ginette Moulin (Chairman of the Supervisory Board of Galeries Lafayette and whose family controls the group-ed) and Philippe Lemoine (Monoprix administrator) ", says one in Casino. 

"The objective is to obtain compliance with the agreements between Galeries Lafayette and Casino Casino which provide that holds the Presidency of Monoprix from 31 March 2012."

Casino and Galeries Lafayette, each holding half the capital of Monoprix, put in the public last month their disagreement on the valuation of the sign.

Under a memorandum of agreement between them, the Galeries Lafayette can exercise since January 1 of an option to purchase their shares. But the two sides differ on the value thereof and the Galeries Lafayette assigned Casino courts on this part of the file.

In late February, Jean-Charles Naouri ruled that the climate was "not conducive" to discussions between the parties and said he was ready to assert the rights of his group.

Casino estimates the value of the participation of Galeries Lafayette to 700 million euros while the department stores the value to 1.95 billion.

Consumer confidence unchanged in February

The index of consumer confidence in France is almost stable in February compared with the previous month, announced Friday INSEE.

The composite indicator is 82 against 81 in January.

In February, consumer confidence about their personal financial situation went down 2 points, INSEE said.

That their future personal finances rose 2 points, while remaining below its long-term average. Households are also more numerous than in January to consider it advisable to make major purchases (5 points).

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.

The CDC meets on Wednesday resumed Dexma

The final pattern of the recovery of Dexma, a subsidiary of French bank Dexia being dismantled, should be arrested by the end of the week while Caisse des Depots (CDC) meets on Wednesday its supervisory board on the subject, Reuters reported Tuesday sources familiar with the matter.

Agreement on the resumption of Dexma (Dexia MA), specializing in refinancing loans to local authorities, is crucial in today dewatering of loans to community ; s French local. 

Caisse des Depots, who had already participated in the rescue of Dexia in 2008, and the Post Bank should take over from the Franco-Belgian bank in this market with the launch, expected to ; mid-2012, a new public bank dedicated to local governments.

"The supervisory board of the Fund is meeting tomorrow (Wednesday, Ed)," Reuters said a source familiar with the matter.

"There will be a point on Dexma," said a second source confirming the meeting of the supervisory committee of the CDC.

Two other sources familiar with the talks added that an agreement on Dexma was now imminent.

"This is about one to two days. It will be before the end of the week, "said one of these sources

. The Fund deposits declined e to comment while no one was immediately available to respond at Dexia

. Under the dismantling of the former world leader in financing local government, the French state could eventually take a stake of around 25% to 33% in Dexma to defeat the re ticences of the Deposit to resume this structure whose loan portfolio, valued at approximately EUR 80 billion, could be toxic ……. FOUND AN INVOICE

.. TOO HEAVY FOR THE CDC

The Post Bank would in turn take a minority stake of 5% in the initial plan provided last fall. News reports have mentioned these days a stake of up to 7%.

In recent weeks, several members of the parliamentary committee to monitor the CDC has expressed concern over the increase in numbers of the Deposit in favor of businesses hit by the crisis, as was the case with the bailout of insurer Groupama.

Fearing that the CDC can not alone bear the brunt of the resumption of Dexma, some of them felt that direct intervention of the state was desirable to reduce the invoice. 

A final agreement on Dexma will also submit to the creation of new public bank for local communities, some of them likely have to abandon or postpone investment projects due to lack of credit banking.

According to forecasts by Dexia Credit Local, some 10 billion euros in 2012 could fail to secure the financing that French local authorities have required banks deserting the market because of the crisis and new prudential rules.

Cameron mocks Sarkozy's Tobin Tax

With this measure unilaterally decided by France, the UK will host "several French banks," mocked the British prime minister Monday. Meeting between David Cameron and Nicolas Sarkozy at the Elysee December 2, 2011. <p> British Prime Minister David Cameron mocked Monday Nicolas Sarkozy's decision to unilaterally introduce a tax on financial transactions, believing that by this measure, the UK would host "several French banks." " / p> "I find it incredible that we can do this," said Mr. Cameron about Mr Sarkozy's decision to introduce this tax without waiting for its European partners. "As we fight for jobs and growth, do something that cost so many jobs seems extraordinary," he said during a press briefing on the sidelines of a summit of 27 countries of the European Union in Brussels. </ p> "And in a healthy sense of competition with France, if France a tax on financial transactions, our door is open and we can welcome UK banks and many more French companies, and our economy will grow, "Mr Cameron joked. </ p>" I am full of admiration for Nicolas "<p> While noting that they were disagree on certain issues, he described the French president as "remarkable man" and recalled their collaboration during the war in Libya. "I wish the best to my friend Nicolas," he added, in response to a question whether, as German Chancellor Angela Merkel, he would campaign for re-election of Mr. Sarkozy. </ P> "I am full of admiration for Nicolas. From time to time he said something with which I do not agree, as when he said that Britain has no industry, as we have an industry larger than France, "he said. </ p> M. Cameron was referring to comments made Sunday night by Mr Sarkozy during his interview broadcast by French television channels. "We can talk in the UK with pleasure, the UK, they have more industry", launched the French President. </ P> Relations between the two men are strained these recent months. The EU summit in late October had already been the subject of a frank explanation of them, M. Sarkozy irritated during a meeting that Mr. Cameron gave lessons to the euro area over the course of action. </ P>

BNP Paribas will eliminate 1,396 jobs in its banking activities and investment (BFI), or about 6.5% of the pole, told Reuters on Wednesday representatives of the CFDT union SNB and banking, to Following a meeting with management.

Downsizing of the BFI, which will be built through internal redeployment and voluntary redundancies, 1023 for positions abroad and 373 positions in France, said the two unions.The CIB division of BNP employed approximately 21,400 employees worldwide at the end of September, according to information available on the website of the bank.

The job cuts at BNP Paribas occur the day after a similar announcement of Societe Generale, which plans to reduce its workforce by bank and investment of several hundred jobs.

"BNP Paribas has announced a plan for job cuts is, in the world and only for bank financing and investment, 1396 jobs," said Joel Debeausse, deputy national delegate of the union SNB.

"It's 1023 posts for the world, there is no breakdown by country, and 373 for France," he added.

Asia continues to draw clear of global economic growth, but may be affected by a worsening crisis in the euro area because of its trade and investment links with Europe, said Saturday the director of the International Monetary Fund, Christine Lagarde.

The latter was speaking at a press conference after his meeting with Japanese Minister of Finance, Jun Azumi.

Former French Minister of Economy has called for strengthening international cooperation and a determined political action in order to ensure a strong, sustainable and balanced.

"(…) We discussed the consequences of the crisis in the euro area, and that it would have for the rest of the world, especially Asia, if it gets worse again."

"In current circumstances, no country can be immune, regardless of its development, its level of emergence or advancement," she warned.

Before arriving in Tokyo, Christine Lagarde visited Moscow and Beijing, hoping to convince Russia and China to invest part of their huge foreign exchange reserves in the bailout funds in the euro area .

The large emerging group of BRICS (Brazil, Russia, India, China, South Africa) are reluctant to invest directly in the European Financial Stability Fund (EFSF), and prefer to help Europe through contributions to the IMF.

The de-globalization is "reactionary" according to Michel Barnier

European Commissioner Michel Barnier to financial services has denounced the speech "against" the interests "of peasants and workers", held by Arnaud Montebourg. The EU Internal Market Commissioner Michel Barnier (here at a press conference in Brussels on 21 February 2011)

European Commissioner Michel Barnier to financial services Friday sharply criticized the "reactionary discourse" of the de-globalization held in France, saying it was "contrary" to the interests of peasants and workers. "I hear that speech that I found in France (to be) a reactionary discourse on the de-globalization", denounced Mr. Barnier, former French Minister of Agriculture and member of the majority party UMP on LCI television.

"What is it? Is protectionism? The home each and every man for himself? This is contrary to the interests of the workers is contrary to the interests of farmers who need to produce goods and export "he criticized. For the Commissioner, Europe needs a sectoral industrial policy to be "a force of production" and "not just a force of consumption." In France, the PS deputy of Saone-et-Loire, to the surprise came third in the primary Socialist, Arnaud Montebourg, notably because of the "de-globalization" a major focus of the debate politique.d