France and Germany step up their thoughts on a radical redefinition of the euro zone to force an economic, fiscal and tax in the short term and without necessarily the case of a slow and tedious review of the European treaties.

Paris and Berlin have agreed this week to propose by December 9 – when the next European summit – an ambitious reform of the Lisbon Treaty, but behind the scenes, preparations are being made around the tool more flexible and easily activated, as an intergovernmental treaty outside the community or a bilateral Franco-German if members of the euro area do not follow.

The second is to adopt a purely bilateral approach by including in the ongoing revision of the Franco-German Elysée in 1963 a high degree of harmonization in fiscal and social law.

The advantage of this approach is twofold for France and Germany. First, it allows to circumvent the unanimity required for a revision in formal treaties.

On the other hand, it places the responsibility to recalcitrant countries. This is particularly true of Great Britain who wanted to use the exercise to repatriate a number of powers to London.

CRISIS PLAN

Officially, the goal of Berlin is to obtain a limited revision of Article 126 of the Treaty of Lisbon on the Stability and Growth Pact.

Cigarette prices increased by 6%

Cigarette packs will cost on average 30 cents more starting Monday. This should bring 600 million euros to the state in one year.

Cigarette packs will cost on average 30 cents more starting Monday in France, a 6% increase sought by the government should have little effect on consumption, but that will bring 600 million euros a year in State to Safely smokers will find it in a package less than 5.70 euros in their tobacconist. For the first time, the Marlboro (the best-selling package with nearly 25% market share) will pass the bar 6 euros to 6.20 euros.The government has allowed manufacturers to revise their prices, anticipating an increase in minimums of perception which must be passed by Parliament in the law on financing of Social Security.

This increase was announced by Prime Minister Francois Fillon, in late August, when presenting the plan anti-government deficit. It should bring 90 million euros this year and 600 million in a full year.

Taxes are 80% of the price of a pack of cigarettes. Most (over 10 billion euros in 2010) goes into the coffers of the social security system. Fillon also announced a further increase of 6% in 2012, without specifying the date. This is the third consecutive year that the cigarettes in the fall recorded such an increase (30 cents per pack), well above inflation.However, sales have never declined so far in the same proportions.

54.8 billion cigarettes sold in 2010

Thus, it has sold 54.79 billion cigarettes in 2010 against 54.98 in 2009, a mere drop of 0.3%. At the same time, the amount of rolling tobacco rose from 7257 to 7598 tonnes (+4.7%). In total, sales of tobacco (including cigars) increased by 0.14% by volume, according to figures from the observatory of drugs (OFDT). Again this year, cigarette sales in late July had declined by only 0.6% in volume compared to 2010.

Value, because of previous price increases, the market is increasing by about 5%. Growth shared by the state (almost 13 billion euros in 2010, including 2.5 under the VAT), tobacconists (8.2%) and manufacturers and distributors (11.8%). The anti-smoking groups believe that any increase less than 10% has no effect on consumption.The Office of Tobacco Prevention (OFT) ironically on Monday up seeing an "application" of the state "to the tobacco industry for agreeing to increase by more than 100 million profit."

Tobacconists and manufacturers recall their part that a sharp increase has an effect on sales in tobacco shops, without lowering consumption, since it encourages smokers to buy abroad or from resellers on the sly. A study of Customs estimates that 20% of cigarettes smoked in France are not purchased in the network of tobacconists, but fraud (5%) or legally (15%) in the neighboring European countries (Belgium and Spain) where the package is sell up to 30% cheaper.

These purchases, which exploded after the sharp increases in tobacco prices in 2003/2004, affecting particularly border trade, result in financial compensation from the state to tobacconists.A parliamentary report issued in early October to the Minister of Budget, recommends "a convergence of prices of tobacco in France and in neighboring states," but also "to reflect on the taxation of rolling tobacco" for "contrecarrrer the substitution effect for each increase in the price of cigarettes. "

France could reactivate the plan to help banks in 2008

The French authorities said Sunday that the system created in 2008 to help banks following the collapse of Lehman Brothers was always available on event "extraordinary".

However, they insisted that French banks, whose market value has shrunk in a few weeks, were strong and they did not need injections of public capital demanded by some stakeholders in the financial markets.

"The only thing that exists is the mechanism 2008 of a public company may purchase securities in the capital of banks if they express a need.So if there was an extraordinary event, this mechanism is in place, "said the Governor of the Banque de France, Christian Noyer, in an interview with Journal du Dimanche.

"There is no plan.And besides we do not need, "he added, saying once again its confidence in the strength of French banks.

The Sunday newspaper also reported that a proposal by the French authorities to banks, September 11, to put 10 to 15 billion euros at their disposal, along the lines of operations in 2008.

Banking sources said this week told Reuters that exploratory talks on a possible state support to the banking sector were underway.

READY FOR 2013 IN BASEL III

According to the Journal du Dimanche, the CEO of Societe Generale, an institution whose share price tumbling for weeks, has accepted the proposal of the authorities, provided that all banks participate.But "BNP Paribas declined to be supportive, burying the project immediately," wrote the weekly.

"Many intervention schemes were under consideration, simple loan to the issuance of preferred shares with warrants," he says.

Contacted by Reuters, BNP Paribas, Societe Generale and Credit Agricole had no comment.

As for the Ministry of Finance, "between the more formal denial" of the possibility of an imminent public recapitalization plan mentioned by the Journal du Dimanche.

Christian Noyer also stressed in the same interview that he has asked banks to speed up the process of strengthening their capital of schedule III of Basel, the international agreement designed to make banks more resilient. "They will be ready by 2013," he said.

To address the financial crisis following the collapse of U.S. bank Lehman Brothers, the French government established in the fall of 2008 a plan to help the banking sector by mobilizing a budget of 360 billion euros, including 40 billion to build equity and 320 billion to help banks refinance themselves via the Company's financing of the French economy (SFEF).

Parisot opposes higher taxes for businesses

Asked about the fiscal tightening to come, the president of MEDEF opposes a heavier tax burden on businesses, which increased their production costs. It calls for a concentrated effort on reducing expenses. For the leader of the MEDEF, "Small and medium enterprises are the cleat of what they may experience as a tax burden."

The president of MEDEF, Laurence Parisot, ruled Monday that the government should be careful "not to penalize" companies not to stop growth, while it must present a Wednesday fiscal tightening to meet its commitments deficit."If we win tenths of a percentage point of growth, it is important not to penalize companies, it is important not to exacerbate their production costs," warned Ms. Parisot on France 2, but stressed that "efforts should collective being, "but to focus on reducing expenses.

The government must announce Wednesday a fiscal tightening needed to meet its commitments deficit in turmoil on financial markets. Asked about the available margins, the president of MEDEF, which is scheduled to meet Prime Minister Francois Fillon in the day, said that "small and medium enterprises are the cleat of what they may experience as a tax burden."

She, however, conceded that "there may be some room for maneuver in very large companies," without giving further details."They must also remain competitive globally," warned Laurence Parisot. The leader of the employers' association also estimated that there were other avenues to consider, such as public service delegations from the state to the private sector. "This would allow the state to spend less and companies to develop new on those sectors," she said.

2% growth, a target "hard to reach"

Laurence Parisot considered "very difficult" to achieve the government target of 2% growth in 2011, a figure considered unrealistic by many economists. "This is something that seems very difficult to achieve," said Ms. Parisot on France Televisions, while the French gross domestic product stagnated in the second quarter, indicating a sharp slowdown in economic activity.

The government's growth target is 2% in 2011, but many economists and analysts say the figure is unattainable, which complicates the preparation of budget 2012 and the commitments for deficit reductions public. The government Wednesday to unveil tracks withheld in an attempt to find additional funds to meet these targets. "If we do not show discouragement, we can continue to get these points of growth," however, felt Ms. Parisot.

Nestlé driven by growth in emerging markets

Nestlé has identified its goals Wednesday after unveiling an organic growth than expected in the first half, also marked by strong sales growth in emerging markets.

Despite an environment of rising agricultural commodity prices and the strength of the franc, the agribusiness giant expressed confidence in its ability to achieve its target of organic growth of 5% to 6% – indicating he thought to reach the top of the range – combined with an increase in the margin at constant currencies.

Nestle also announced that it would not launch a new program of share repurchases at this time, after buying 35 billion francs in securities since 2007.

The group intends to maintain its financial flexibility to carry out its expansion strategy in emerging markets while pursuing acquisitions.

Nestlé intends to continue to increase the dividend paid in Swiss francs to shareholders, also stated the CFO.

In the first six months of the year, Nestle achieved a turnover of 41 billion francs (39.3 billion), down 12.9% from the previous year due to changes in scope and impact of foreign exchange.

Sales increased in all regions, including Europe and North America, despite the fall in consumption in developed countries.

PRESSURE FRANC FORT

Organic growth has exceeded expectations, reaching 7.5% while sales in Asia, Oceania and Africa rose 11.5% on strong performance of the Maggi range of products.

Price increases, of 3.8% recorded in the second quarter after rising 1.5% in the first, also contributed to this performance of Nestlé.

Last week, competitors Kraft Foods and Unilever have published better than expected results after having passed on their selling prices high inflation in the prices of agricultural commodities such as coffee, cocoa or milk.

For Danone, which published its half-year end of July, the price increases, however, have negatively impacted volumes in the dairy business.

Nestlé, unlike its major competitors, has also faced pressure from the strong franc has had a major impact in the consolidated accounts.

"The Swiss franc has no significant impact on the underlying performance," however, said Chief Financial Officer Jim Singh, at a conference with analysts.

PROGRESSION OF OPERATING MARGIN

Compression of distribution costs and administrative costs, however, have helped to protect the operating margin which increased by 20 basis points and 40 basis points at constant exchange rates, while many analysts had forecast a loss of profitability .

Net income was 4.7 billion francs, a decline in over a year but slightly above expectations.

The consensus of analysts polled by Reuters had stood at 41 billion francs in revenue and $ 4.6 billion in net income.

At 11:20 GMT, reduced earnings, but still took 0.7% to 47.03 francs, underperforming the European index of food and drink that gained 1.13%.

"The forces were well distributed geographically, but were particularly impressive in Europe and echo the strong results from Unilever last week," noted Alicia Forry and Eddy Hargreaves, analyst at Collins Stewart.

"The fact that Nestlé has not announced share buyback will fuel further rumors of an interest in the activities of Pfizer Nutrition," says Jean-Philippe Bertschy, an analyst at Vontobel.

Nestlé, which has large reserves of cash from the sale of Alcon to Novartis, has acquired particular Prometheus Laboratories, California company that specializes in the diagnosis in gastroenterology and oncology.

In July, he also announced plans to partner with Hsu Fu Chi to grow the confectionery market in China.

The Tokyo Stock Exchange to its lowest level since the post-earthquake

The Tokyo Stock Exchange ended down 3.72% on Friday to fall to its lowest level since the fall quake in March, weighed down by dropping out of Wall Street and growing pessimism about the strength of the economy .

The Nikkei lost 359.30 points to 9299.88, however, but has stabilized around its support to 9300 points, foreign investors have apparently concluded it to lighten their portfolios.

The Topix, wider, has sold its 25.40 points (3.07%) to 800.96 points from sitting below 800 points for the first time since March 17.

Thursday, investors had already massively shifted from world stock markets, focusing on the safest assets at the expense of equity markets that have experienced disastrous performance.

Cooled by a series of disappointing statistics on the state of the U.S. economy, dampened by the risk of extension of the debt crisis in the euro zone in Italy and Spain, the market has also suffered from the force the yen, whose safe-haven status is bad for Japanese exporters.

The Japanese authorities would have intervened on the foreign exchange market Friday to curb the rise of the yen, said on the markets after a brief surge in the dollar in afternoon Tokyo.Around 6:15 GMT, the dollar fell by 0.90% to 78.54 yen.

In an environment of risk aversion, oil and financial values ​​have been particularly penalized. Inpex has unscrewed from 6.82%, while the bank Mitsubishi UFJ Financial Group and Mizuho Financial Group gave up 2.55%, respectively, and 4.72%.

Further decline in European stock markets, the CAC in 3500 points

European shares posted an eighth straight session Wednesday of decline, ending in Paris 3500 points after the publication of new statistics confirming the slowdown in the U.S. economy.

Sovereign debt crises and growing fears of contagion to Spain continued to weigh on the markets.

The CAC 40 index ended down 2.08% to 3449.45 points in a trading volume of 5.3 billion euros, almost double the average of the last three months. The index has closed for the first time in 3500 points since August 31, 2010.

London fell by 2.34%, 2.30% of Frankfurt. Milan lost 1.54% and 0.85% Madrid.Of the European indices, the EuroStoxx 50 lost 1.85% and 2.02% Eurofirst 300.

The euro traded around 1.4307 dollars against 1.4210 in the early morning.

A barrel of U.S. light crude was trading down 1.4 dollar to 82.39 euros.

Time runs out on the issue of debt, says Obama

Time is running out to resolve the question of raising the ceiling of the debt of the United States said on Friday U.S. President Barack Obama.

"Obviously, time is running out so I told the congressmen that they should submit to me within 24 or 36 hours the ideas they have to raise the debt ceiling," at he said.

Barack Obama has decided that this issue should have been resolved long ago, adding that, underlying deficits should be addressed.

The owners of private jets and millionaires, could pay more taxes to participate in solving the debt problem, he added.

He also dismissed the idea of ​​a reduction of 2,400 billion federal budget unless it is accompanied by an increase in taxes.

"By immersing myself in the numbers, I have not seen a credible plan that would allow us to find 2400 billion dollars without affecting the average American," said Bush.

"The idea that we do this without asking the wealthiest among us, or without removing tax loopholes for companies, does not seem serious."

BIS calls for higher interest rates worldwide

Central banks need to start up their rates to contain inflation, says the Bank for International Settlements in its annual report. Bank for International Settlements.

The global interest rates must be met to avoid a high rate of inflation does not install permanently, said Sunday the Bank for International Settlements (BIS).

She also felt that any postponement of deficit reduction could aggravate the debt crisis, investors may no longer have such confidence in an important country like the United States.

"With the emergence of more pronounced increases in food prices, those for energy and other commodity prices, inflation has become a global concern," the BIS said in its annual report.

"A tighter global monetary policy is needed to contain inflationary pressures and to distance the risks to financial stability."

The four major international central banks – U.S. Federal Reserve, European Central Bank (ECB), Bank of Japan (BoJ) and Bank of England (BoJ) – the ECB is the only one to have initiated a cycle of rising interest rates, which had been reduced to historic lows during the intensification of the financial crisis in late 2008.

The Fed at the bedside of a recovery "desperately slow"

Persistently high unemployment will force the Fed to keep monetary policy accommodative to support economic activity, said Tuesday its chairman Ben Bernanke.

Chairman of the Central Bank of the United States, Ben Bernanke, promised Tuesday to maintain a "monetary policy complacency" as the surge in inflation is not threatening, to boost economic recovery "desperately slow" . The maintenance of "an accommodative monetary policy is still necessary," Bernanke said during a televised speech in Atlanta in the Southeast United States.

Noting the sharp slowdown in economic growth in the U.S., Mr Bernanke has held that recovery was still not "fully established" and remained "desperately slow in terms of millions of unemployed or assets underemployed "in the country.

Given this situation, the Fed sees no urgent need to reduce its support to the economy since the current surge in inflation caused by soaring oil prices and raw materials, should be " transient, "he said.

For the Fed chairman, "growth should recover somewhat in the second half, but the concern remains the high level of unemployment (9.1% in May, according to official statistics) and the employment situation that should "continue to monitor carefully." The Fed has been practicing since the fall of 2008 an ultra-accommodative monetary policy. Led initially to allow the U.S. economy looking beyond the crisis, it has been intensified to support it in resumed.

Mr.Bernanke reiterated that the Fed would keep its key rate for a long time to almost zero, which keeps the floor interest rates in the short term that are correlated. The Fed also conducts a program to repurchase U.S. Treasury bonds launched in November in order to ensure that interest rates in the medium and long term are as low as possible. This must be completed by the end of the month.

In his remarks, Mr. Bernanke has made clear that the time of the credit crunch had not come. Beyond June 30, the Fed should continue for some time to reinvest in Treasury bonds and real estate finance securities it holds as and when they expire to ensure that the financial assistance it makes to the economy remains slack.

The Fed has a dual mission of ensuring price stability and full employment in the country.The rise in inflation has contributed significantly to slow U.S. growth in the first quarter, she finds herself in a very delicate situation in that a central bank can hardly fight for both growth and against rising prices.

Indeed, a policy of containment of inflation generally tend to lead to a restriction of credit, and hence a slowdown. Conversely, too much to stimulate activity, it could fuel higher prices.

For Mr. Bernanke, like most leaders of the Fed, but there is not too much to hesitate at the moment: given the low uptake of the American production (and thus the absence of inflation on salaries), and the expected stabilization of commodity prices, inflation "should subside."