European markets open with little direction

European shares opened Thursday with little direction, investors conducting buybacks on the cheap while nervously awaiting an Italian sovereign debt issue and the numbers of industrial production in the euro area.

In Paris, around 9:35, the CAC 40 gained 0.21% (6.93 points) to 3,244.62 points. In Frankfurt, the Dax is 0.5% but in London, the FTSE was down 0.13%. The pan-European index Stoxx 50 is almost unchanged (0.09%).

Investors are worried that financial troubles are spreading from Spain to Italy, and little progress displayed by Rome in the implementation of structural reforms has revived the rising cost of financing its debt. Italian bond yields and ten years and is back above 5.5%.

While ramping up the "earnings season" in Japan, Europe and the United States, the day is also marked by the publication of the monthly bulletin of the European Central Bank (8:00 GMT ).

Operators continue to proceed cautiously buying cheap car values, banking and mining, recently battered. The index of bank stocks in the euro area, which collapsed 21% in three weeks on renewed concerns about debt in Europe, thus increasing by 0.6%.

That hides the yoyo market

Financial markets seem to have entered a new phase of instability. This correction is benign or she announces she a new crisis. The responses of Grandrille Xavier, President of Amplegest. Paris Bourse

For three months, financial markets and the States have experienced a real honeymoon. German and Japanese shares rose nearly 20%, spreads have narrowed significantly, from 200 basis points for Italy and Portugal, 170 points for Ireland, 30 points for France. But for two days, it is the fever which prevails. In Spain and Italy, rates on government bonds are strained. And scholarships to play yoyo throughout the Old continent. Analysis of Gandrille Xavier, President of Amplegest

Correction in financial markets is normal?

Only in part. Since late 2011, the CAC 40 was much increased. About 16% until mid March. This increase was driven by two factors. The first is the disappearance of systemic risk through intervention by the ECB provides liquidity to banks. The second is the improved outlook for growth. Last summer, it seemed that Europe would not live through the winter. And then the activity – even if it remains depressed – has grown faster than expected. After a period of rising markets, it is normal to see a correction. We lost 10% of the CAC. It's not a disaster. The problem is knowing what will make markets in the coming months. Will you stay in the same waters or on the contrary, enter a negative cycle?

Exactly. What is your scenario for the future?

The answer is not obvious. But unlike the consensus which considers the correction of the past two days as normal, I'm pretty uncomfortable. The euro area remains a system that does not work. And injections of liquidity by the ECB do not change. We are in a situation where the debt repayment hampers growth. But until there is no improvement economic contagion – that is to say, a generalized rise in long rates – is possible.

Can we implement growth policies to loosen the grip of markets?

It's complicated. Future investments are expensive. We can implement liberalization policies as in the Scandinavian countries. But this type of policy takes time to produce its effect on the economy, in contrast to fiscal austerity. Europe is thus reduced to buying time to let the markets do not become impatient. This is what happened, for example, with its new firewall. But I remain pessimistic for the future. I'm afraid the consensus is do a little too many illusions about the ability of Europe to come out of the rut by itself. It will probably still other attacks markets, other crises to advance.

LIVE. Xavier Bertrand debate-Francoise Gri on youth employment

The Minister of Labour is currently a guest on Expansion and Business Institute for a discussion with Francoise Gri, Manpower France's patron. Follow the live chat with Dailymotion.

In anticipation of upcoming elections, the Institute of Business and Expansion Tuesday, April 10 to receive 8h30Xavier Bertrand, UMP Minister of Labour, and Francoise Gri, President of ManpowerGroup France. They discuss the theme: "Youth employment: how to meet (finally) the challenge?".

The debate is moderated by Beatrice Mathieu, a journalist at L'Expansion. It is broadcast live on Dailymotion. You can also comment on twitter and ask your questions or comments via or via the # debateco. Three questions will be selected and asked Xavier Bertrand on video.

Job creation slows in March in the U.S.

The number of jobs créésa been well below expectations in March in the U.S., which suggests that the Fed has leeway for further monetary easing, although the unemployment rate fell to a three-year low of 8.2%.

The number of jobs créésa was 120,000 in March, reported the Labor Department Friday, the lowest since October 2011.

Economists polled by Reuters expected a number of 203,000 and an unchanged unemployment rate of 8.3%.

Despite the low number of jobs created, average hourly earnings rose five cents per month, while the workweek fell to 34.5 hours against 34, 6:00 in February.

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 global air traffic up 9.3% yoy in February

The air passenger traffic grew 9.3% yoy in February but rising fuel prices and the deterioration of the overall business climate are factors of uncertainty for the future, announced Tuesday the International Air Transport Association (Iata).

The numbers at the end of February have benefited the Chinese New Year, Carnival in Rio and a favorable base effect due to the impact of traffic on the Arab spring last year ; re the same period.

"The outlook is fragile. Improving the business climate weakened in February. This will limit the potential for customer growth in business class and implies an acceleration of the freight is not imminent, "said Tony Tyler, CEO of Iata said in a statement

. growth in international cargo was 5.1% on-year slide in February …… Passenger traffic

… grew faster than the available capacity that growth came to 7.3% year on year, which resulted in a better load factor of the devices. The trend was reversed for freight, which has resulted in a rate of capacity utilization of only 50%, IATA said … ……

Strike in the air: delays and closed aéoroports

The eprturbations are limited to Orly and Roissy. Delays are however consistent in the provinces. Footballers of the OM, which must envoller to Munich, are paying the price. AIRPORT Roissy Charles de Gaulle, PARIS, FRANCE, March 2011

Domestic air traffic was reduced and sometimes significant delays Monday the first day of a strike against the air traffic control reform of navigation, which led to the closure of several airports. The CGT, CFDT and UNSA called the personal air navigation, including air traffic controllers, to protest on Monday and Tuesday against the abolition of positions and the major restructuring of the service in the provinces.

Delays of several hours were recorded in the morning in the region, while dozens of flights were canceled at the weekend in anticipation of the strike, the Directorate General of Civil Aviation (DGCA) has asked Friday to particular companies air to remove 20% of their flights on Mondays and Tuesdays departing or arriving at Orly. Easyjet has canceled 16 flights for Monday to arrive at or depart from this airport, where the situation was calm Monday morning, without delay or queue, according to an airport source, who observed that the strike had been "widely anticipated "and civil aviation companies. From Roissy, Air France plans to maintain its entire program. "Some delays are still possible, however," admitted the company.

However, delays were substantial in the provinces, as in the far west (Rennes and Nantes) or Metz-Nancy, where the routes to Toulouse and Marseille were advertised with two to three hours late, and those to Lyon and Nice canceled in both directions. At the airport of Marseille-Provence, where large queues began to form in the late morning, 10% of flights (28 flights of 286) were canceled by the airlines, according to a spokesman for the direction. Passengers were advised to contact their airline before traveling to the airport. The players of Olympique de Marseille have also borne the brunt of the disruption: they had to take off at 1:00 p.m. for Germany instead of 10:00.  

In Nice, over a third of the 90 Air France flights were canceled at this stage and five easyJet flights. Moreover, cancellations accumulated: 15 to Bordeaux-Merignac, 36 at Lyon Saint-Exupery, 28 in Toulouse. The conflict has also led to the closure of airports of Pau, in the absence of the head of the control tower, Beziers (Hérault), Rouen, Avignon, Le Bourget (Seine-Saint-Denis) where services controls air are closed, told AFP a spokesman for the DGAC, which does not yet have the strike rate at the national level.

Unions estimate that half of the 30 approach control services are threatened, or a direct risk to "dozens of jobs in the inspection, maintenance, technical and administrative", according to the CGT. Approaches are one of three levels of air traffic control, with control towers in France (over 80), and five regional centers of control in flight in the metropolis. For its part, the DGAC speaks of "redeployment" "and" optimization "and justifies its willingness to restructure its services, including the changing needs, increased European coordination and modernization of technology. In case of strike , air traffic controllers have a minimum service obligation, and requisitions are possible. The minimum service is applicable in 17 airports including Toulouse, Mulhouse, Ajaccio, Bordeaux, Orly and Roissy, according to DGAC …… …

Total will drill two relief wells "as soon as possible" in Elgin

Total said Friday it would launch "as soon as possible" the drilling of two relief wells in the facilities from which Sunday since the flight of his platform of Elgin, in the North Sea.

The French oil group further found that surveillance operations and interventions on the well in question, whose operation was stopped in 2011 after abnormalities, were made in compliance with procedures.

"We will start drilling as soon as possible," he said during a meeting with the press Hourcard Michel, director of branch development and exploration and production of Total spokesman technical the incident of Elgin. 

Asked about the duration of the operation, he said it was "reasonable" period of six months previously discussed by Total.

Michel Hourcard also said the group planned to inject parallel mud into the well from which the gas leak.

Philippe Guys, managing director of Total Exploration and Production UK, had earlier told a news conference in Aberdeen, Scotland, the relief well drilling could start by 7 to 10 days.

Hourcard Michel for his part reiterated that the operation of the pit Elgin from which the leak had been stopped for "a little over a year" after the finding of an "anomaly in the conditions of production". 

"There was at the beginning of February (2012) a second anomaly that occurred in the pressure recordings (…), which led us to say that It happened probably something that brought us to intervene, "he added.

SITUATION "STABLE"

Total was then started an "abandonment" of the well, which is to be injected with mud, a process that was underway when the leak was found on March 25.

"The operations of 'monitoring' and action plan on this well have been done well, there was no non-compliance with procedures. From the moment that there were anomalies, it was moved to safety, "said Michel Hourcard

. A union source however said that Total employees on the platform of Elgin had warned the group against the risk of leaks before it occurs but had been told that the incident "could not happen" Total

. also exploring various solutions that would extinguish the flare its platform, where he says the situation remains "stable"

. It comes to mind watering the flare of the platform -either by helicopter or by fire-ship or to proceed with a nitrogen purge to deprive it of oxygen. 

The flare, which reduces pressure on the platform was removed, can not be turned off remotely and with a higher risk of inflammation of the plumes of gas escaping into the air from the leak, a hundred meters away.

Total and British authorities have called a "minimum" potential risks to the environment of the cloud of gas and a thin oil slick which has spread on the water surface. Experts on environmental issues, however, considered only a short distance the "cocktail" of gas would be flammable or toxic.

According to the British, the flare is a risk factor as long as it stays on even when the wind blows the cloud of gas in the opposite direction and that this weather should continue in the foreseeable future.

"Total has assured the government that the platform is designed so that the flare is located in an area where the prevailing winds away from the gas," said ; the UK Department of Energy. 

The leak appears to come from a rock formation located in the upper well and thus added Total volume of gas from this close formation, which is not a re ; tank production in the Elgin field, is difficult to assess.

International experts who advise Total have not yet made a final recommendation to proceed to sealing and repairs, the ministry said.

The gas leak, which broke out Sunday, forced Total to evacuate 238 people who worked on the platform of Elgin, about 240 kilometers off the coast of Aberdeen .

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. "

For Sarkozy, we are "in phase of economic recovery"

In an interview with the newspaper Ouest France, the incumbent stated: "we came out of the financial crisis" and "we are in the process of economic recovery." Incumbent President Nicolas Sarkozy (here in Lyon March 17, 2012)

Nicolas Sarkozy, a presidential candidate, says that "we came out of the financial crisis" and that "we are in the process of economic recovery," in an interview with Ouest-France, to be published Tuesday. "I think we came out of the financial crisis, that confidence is restored and we are in the process of economic recovery," said the president candidate, who makes a visit on Tuesday the Guerande peninsula, followed the end of afternoon by a meeting in Nantes.

"What did they say Does peaks between Ms. (Angela) Merkel (German Chancellor) and me! Through these summits, Europe has an economic government overcame the Greek crisis", has he argued. To "reinforce" this situation, Mr. Sarkozy reiterated his proposals: political governance of the Schengen zone to protect its borders, failing which France will suspend its participation in Schengen, creating a Buy European Act for reserving public contracts to companies that produce in Europe, setting up a Small Business Act, reserving 20% ​​of public procurement to SMEs.

Failing agreement, France will only implement these provisions. Western journalists from France who told him that it smelled "the ultimatum", Mr Sarkozy replied: "it does not smell at all the ultimatum, it smells voluntarism (…) The Minister of the Interior German recently told that I had absolutely right and he was asking the same thing. The truth is that if Europe falls back into his through before, it will explode. " "I kept the same values: hard work, effort, merit, responsibility, authority, solidarity", he also said.

"To the great difference in Mr (Francis) Holland (PS presidential candidate), I consider that one can not isolate France and to promise that exempt the efforts that others are doing and ask," he also said. "My plan is to tell the French: you need to be protected. And to be protected, your country must be strong, paying his debts. This is why I will respect the objective from 0% deficit in 2016, "he added.