News & Financial Advice

Enel has announced plans to launch the initial public offering (IPO) of its affiliate company specialized in renewable energies over the last two weeks of October.

The Italian group of community service, the actor in the sector the most indebted in Europe, hopes to raise between three and four billion euros in bringing to market a minority stake in Enel Green Power, which could be the largest such operation in Europe this year.

"The IPO will take place in the second half of October," said a spokesman for Enel Friday.

The banks involved in the operation on Friday met Chief Financial Officer of Enel, Luigi Ferraris, to discuss the case, said the spokesman, adding that the company continued with its parallel search for a buyer for participation .

This dual approach (dual track) means that in theory, Enel could abandon at the last minute to rate its subsidiary if the sale of OTC was a realistic alternative to public offerings.

"At the meeting with the banks this morning, the focus has been on the IPO, but this does not mean that the company abandoned its dual-track approach," said the spokesman.

Sources have told Reuters that the international coordinators of the IPO were Mediobanca, Goldman Sachs, Credit Suisse and Intesa Sanpaolo.

The leaders of the transaction are JP Morgan, Bank of America, Morgan Stanley, Barclays, BBVA and Unicredit.

Wheat prices on the Chicago market gained nearly 8% in plenary on Thursday, near their highest level in two years, following the announcement by Russia to stop its exports of cereals.

The current drought in Russia, one of the worst in the history of the country, devastated crops in several regions, which causes several days a soaring wheat prices on international markets.

Investors are afraid that pressure on this market over the coming months in the absence of a major world exporters.

FAO, United Nations Organization for Food and Agriculture, on Wednesday reduced about 4%, or 25 million tonnes, its forecast for world wheat crop for 2010.

If it considers that the offer is sufficient for now, she warned that "if the drought in the Russian Federation continues, this could pose problems for winter crops in this country, with potentially serious implications for deliveries World wheat in 2011 and 2012.

The benchmark price of wheat in Chicago jumped 82% since June 9

On Thursday, panic buying of investment funds and traders on the Chicago Board of Trade (CBOT) also focused on corn and soybeans, which gained 2.6% and 0.8%.

Russian Prime Minister Vladimir Putin said Thursday the suspension of exports of cereals and processed agricultural products between August 15 and December 31, a decision that applies to contracts already signed.

He has confirmed information previously reported by Russian news agency Interfax, which had triggered the wave of purchases.

"The announcement of Putin panicked everyone (…).Nobody knows how far we could go, "said Paul Haugen, Vice-president of Newedge USA.

At midday in the U.S., the futures contract on wheat for September delivery gained 60 cents, its highest increase allowed to 785.75 cents, the highest level these last 23 months by the maturity nearest market.

DISTORTIONS

"I would not be surprised if it took 60 or 70 cents extra, even more during the next session," said Joe Bedore, the brokerage firm FC Stone in Chicago.

Kazakhstan, another major wheat producer in the Black Sea basin, said anticipating a fall of 35% of its harvest and study by the end of a request from Moscow to reduce its own exports.

International trading giant Cargill said he expected that such trade barriers distort the global wheat market.

In the European market Euronext, the benchmark November contract on wheat milling peaked Thursday at 236 euros before ending the session at 223.25, up 6.8% on the day.It was up nearly 60% since late June

Wheat has not yet regained its record levels of 2008, when prices in Chicago had exceeded 13.30 dollars a bushel, boosted by fears of a global food crisis.

Some analysts also believe that the current increase is overstated, noting the high level of global supply after two consecutive years of record crops.

The absence of Russian wheat in the coming months could also benefit other major exporters, U.S. or Europe.

"A Case of Russian exports would distribute maps of the international wheat market," said one European trader."This would open up enormous opportunities for new sales in Western Europe and the United States."

But the rise in food prices may be exaggerated, says a French professional, for whom the market is driven by purely financial factors.

"When the market (Chicago) won a dollar in four days, not for fundamental reasons," said he. "The decline, if it occurs, will be equally severe."

Luxottica, the world leader in eyewear, has announced a 30% increase in net income and an increase of 13.8% of its turnover in the second quarter and said it was confident for the second half.

The Milanese group, which owns brands including Ray Ban and Oakley, said in a statement that its wholesale division has achieved the best performance in its history, its operating margin reaching 24.1% against 22.5% a a year ago.

"These results provide an excellent base to look with confidence towards the second half of the year," said in a statement the CEO Andrea Guerra.

Luxottica has made the quarter April-June net profit of 150.1 million euros, exceeding the consensus estimate of analysts Thomson Reuters I / B / E / S, which gave 145.3 million.

He said that sales were particularly strong in emerging markets and the U.S., its largest market.

In a presentation accompanying the results, Luxottica said track to achieve its annual targets. In April, he had said it expects growth of about 5% of its annual turnover.

Manutan announced Friday that its sales had increased 9.3% in third quarter 2009-2010 to 132.9 million euros, the group has enjoyed an upturn in all regions of Europe where it is present.

Of the first nine months of the year offset, net sales rose 0.2% on a constant basis and 18.7%, taking into particular account the integration of Local Businesses Camif, acquired in March last.

"The end of the first nine months of activity marks the return to growth in aggregate group," commented Manutan in a statement, without giving targets for the current year.

The Paris Bourse, as all European markets ended down sharply on Thursday following the publication of a series of disappointing U.S. indicators, confirming the interruption of a long sequence of increase initiated the day before.

The CAC 40 index finished down 1.41% at 3581.82 points, after playing a note on irregular closely during most of the session. The index had already paused Wednesday (-0.13%), having won more than 9% in six sessions of consecutive increase.

London fell by 0.8% and Frankfurt 0.97%.As for the European indices, the EuroStoxx 50 yielded 1.35% and 1.14% Eurofirst 300.

'Investors are still worried about the slowdown in the United States, and after the recent good performance of markets, profit-taking seem necessary given that the risks are always present ", says Claudia Panseri, chief strategist at SG CIB .

Falling producer prices and the index of the New York Fed has cooled the enthusiasm of investors even though they had enthusiastically welcomed the results published by JPMorgan.

Similarly, producer prices have fallen more sharply than expected in June and the condition index of industrial activity were sharply down in July.

After cutting their losses in early afternoon following the publication of excellent results by JP Morgan, the banks are heavily impact the market.

Dexia largest decline of ACC, ended down 5.12% to 3.243 euros, Crédit Agricole of 3.26% to 9.287 euros and BNP Paribas 4.01% to 48.705 euros.

The values "dollar" have suffered bad news on growth overseas as the U.S. currency.

In the aerospace sector, EADS lost 4.86% to 16.550 euros and 4.59% at Saffron 20.800 euros. In the area of semiconductors, STMicroelectronics has yielded 2.08% to 6.776 euros and 8.063 to 4.91% Soitec euros.The euro is trading at 1.2906 / 08 1.2738 dollars against the previous day.

U.S. light crude lost $ 1.05 per share to 75.99 dollars a barrel.

At the opening of the Social Summit to be held Monday, May 10th at the Elysee Palace, Nicolas Sarkozy, has declared Monday, May 10 against the renewal of exceptional measures to support the purchasing power of households decided in 2009. "These extraordinary measures have completely fulfilled their duty as French consumption has increased despite the crisis" and "household demand continues to be resilient today," observed the head of state before the social partners.

"I know some of you would like these measures should be renewed," he said, "but you know that France can not remain isolated in this way, it would be disastrous for our competitiveness.""After considerable effort we have provided during the crisis, we must engage now initiate the recovery of our public finances," insisted the head of state.

Nicolas Sarkozy has however decided to extend aid to companies resorting to partial unemployment or recruiting young alternately. Saying that he must "not let down our guard," the president assured commitment to continue to spend on employment policies all means necessary ".

Referring to measures to support the partial unemployment (more than 400,000 beneficiaries in 2009) and conversion of retrenched (CRP CTP), the Head of State said that "we must maintain." It sought to reinforce "still" training employees partial unemployment, whose record was mixed. Mr.Sarkozy has also expressed support for experimentation on several employment areas of the enhanced support of employment transition agreement (SOC) for former interim or ex-CSD. A measure sought by the unions and raised by the government in 2009 but never implemented.

He also briefed the sides met in the Elysee why it was "conducive to the extension of aid to the alternation, ie the State aid paid by employers who recruit a young apprenticeship or contract professionalization. According to the President of the Republic, these aids provide "fragile but encouraging results.We can not risk putting them at risk.

Regarding the measure "zero load" given to very small businesses (fewer than 10 employees) since late 2008, it nevertheless considered that "it has served its purpose at the height of the crisis and is less necessary with the start of the recovery since the fourth quarter of 2009. Such assistance already extended for six months, must be interrupted on June 30 Launched in December 2008, the "Zero charges" is equivalent to one year in aid of 185 euros per month for an employer hiring a worker at minimum wage. Approximately one million workers were recruited under this scheme, which recognizes employers that generates windfall because the company receives assistance even in cases where it would have hired anyway.

Mr.Sarkozy, however, wanted to build this device exemptions from employer contributions to support the hiring "of specific audiences, especially older people, due to an unspecified. The Head of State has asked the Labour Minister Eric Woerth, in conjunction with those of the job (Christine Lagarde, Laurent Wauquiez), to make proposals, finding it interesting to develop tutoring seniors.

Officially, the subject is not on the table. For its pension reform, Nicolas Sarkozy ruled out the possibility of reaching the level of pensions – and thus to contribute to today's retirees. However, the idea is more in tune with the times. The economist Patrick Artus and militates in favor of a form of redistribution from older to younger. As the founding Terra Nova, near the PS, it is about to publish a report on the mind-blowing subject. One of its main proposals: align the tax on retirement assets that, while it is now lower.

An idea supported by a growing number of experts. This is the case of Bruno Palier, a researcher at Cevipof and pension specialist: "The rate of the CSG paid by retirees is 6.6% against 7.5% for assets. Align the two already bring in three billion euros per year.The advantage of such a reform, according to the economist: it would spare the poorest pensioners, exempt from income tax, who do not pay either the CSG. "It is quite unfair to say they will tighten the rules only for those who will in the future, while the system is very generous to pensioners today," notes Francois Legendre, an economist at the center of Employment Studies and author of numerous works on pensions.

It must indeed distinguish reforms necessitated by the longer life expectancy than those imposed by the arrival at the age of retirement for many generations of post-war. "Baby boomers French have not taken the necessary measures to ensure the funding of their pensions. It is not normal that this weighs on active today.From this point of view, a transient increase in the CSG of retirees is defensible, "said Antoine Bozio co-signer, Thomas Piketty, of a proposed radical overhaul of the French pension system. According to this expert, the question does not arise if the baby boomers French had at the time they were active themselves, fed a pension reserve fund, as were the Swedes do, and even American …

See also: What you should know about pension reform

The U.S. agency mortgage refinance Fannie Mae, which had a significant stake in the subprime crisis, said Monday in a loss of 11.5 billion dollars in the first quarter, and asked the federal Treasury to grant further 8.4 billion dollars by the end of June to offset its deficit. "Our first quarter results are due primarily to costs associated with credit, which remain high due to weaknesses in the economy and market américainde residential property," said Fannie Mae said in a statement.

The additional $ 8.4 billion requested to be added for an additional $ 15.3 billion already disbursed by the Treasury on March 31, intended to fill the deficit in December 31, 2009."Given the current trends in housing and financial markets, we continue to expect net deficits in the future, and therefore we will obtain additional funding from Treasury," the company said.

This aid, granted in exchange for preference shares held by U.S. taxpayers also costs for Fannie Mae, who had to pay first quarter dividend of $ 1.5 billion to the federal government, widening its quarterly loss Group share 13.1 billion.

The credit losses increased from the fourth quarter 2009 and first quarter 2010, from 4.1 to 5.1 billion, "reflecting the increased number of defaults, partially offset by a slight reduction in the magnitude of these losses, "the company said.

The rate of seizures has increased in the first quarter, Fannie Mae said: macroeconomic conditions and "the protracted decline in prices of residential property at the national level continue to lead to an increasing proportion of our loans go from being of default than before.

And given the minimum time for them to sell foreclosed properties (unfinished evictions, repairs, legal deadlines to allow property owners to eventually settle their debts to stay home ..), the body just to put on the market properties seizures, delaying the cash flow.

Last week, the other major parastatal mortgage refinancing, Freddie Mac, had published a quarterly loss of 7.980 billion and $ 10.6 billion requested additional assistance from Treasury.

In late March, U.S. Treasury Secretary Timothy Geithner had estimated that the reform Freddie Mac and Fannie Mae should expect "a period of greater stability in financial markets." The Treasury had announced in late December that it would close until end 2012 loss of Freddie Mac and Fannie Mae.

The two bodies were placed under the supervision of the U.S. government in September 2008, at the height of the crisis, when they threatened to collapse under the weight of their debt. Since then, the state has pumped hundreds of billions of dollars to keep them afloat.

How will the bailout work of the euro?

To stem the panic that erupted late last week, the states of the euro area have been working throughout the weekend and agreed on a massive rescue plan on several floors, as shown in this graphic.

The ECB breaks a taboo

It is an essential part of rescue plan devised this weekend in Brussels. While he did not hear of it, Jean-Claude Trichet has agreed that the European Central Bank buys government debt. All explanations in this article.