News & Financial Advice

Universal Music, a subsidiary of Vivendi, announced Friday the signing of a definitive agreement with Citigroup to buy back the recorded music industry of its British rival EMI for a total of 1.2 billion sterling (1.4 billion euros).

The operation, if it goes to completion, will allow the first record company to add to its global purse of music stars such as Coldplay and Katy Perry, but it may be a long review and detailed by the competition authorities.

"It is a historic acquisition for UMG (Universal Music Group) and an important step in preserving the heritage of EMI Music," said Lucian Grainge, CEO of Universal, in a statement.

The U.S. bank, the Financial Times on Friday, would end the deadlock by agreeing to make such commitments at his expense.

Also interested in the recorded music division of EMI, the billionaire Len Blavatnik, owner of Warner Music Group, was considered the favorite, but according to two people familiar with the discussions, he threw in the towel last week after the rejection by Citigroup's offer of a $ 1.5 billion.

The rise in house prices in the capital could be interrupted, the professionals are predicting. The price per square meter reached 8,350 euros on average in the capital. http://www.flickr.com/photos/gcattiaux/

Rising prices of old apartments in Paris will soon be interrupted after a new record in 8350 euros per square meter on average this summer, due to a decrease in transactions caused by the new tax on most real estate gains. "The decline in the number of transactions due to the number of goods withdrawn from sale by investors, who fear they do not give in quickly to be affected by this tax, and the fact that sellers do not want lower their prices, "said Bernard Cadeau, president of the branch network Orpi.

From June to August, 44,300 existing homes were sold in Ile-de-France, down 2% over the same period in 2010 and 7% compared to the boom in housing markets (1999-2007) indicates the monthly note on real estate markets released Tuesday by the notaries in Paris and Ile. The decline in sales, which has increased this fall as real estate agents, is much brighter in Paris where it reaches 5% for 8500 apartments sold between June and August.

"Almost all transactions for the studios and 2 rooms and the property over € 1 million," laments Ricour Gilles de Bourges, president of the National Federation of Real Estate (Fnaim) to Paris and Ile-de-France.For Philippe Buyens, Network Director Guy Hiccups, "is a rather classical vendors more easily take into account higher prices than lower prices ahead." Indeed, almost immediate consequence of the decrease of transactions: the latest projections of prices calculated on the promises of sales, "confirms that rising prices will soon be interrupted" in the capital, say the lawyers.

Record at 8350 euros per square meter

In intro-muros Paris, prices rose only 0.8% for the period June-August compared to the period from May to July, instead of a monthly increase of 1.5% over the same period in 2010. The deceleration is also clear from the peak reached in March 2011 when prices had risen by 2.5% in a month.

But this does not prevent prices from reaching Paris this summer a new high of 8,350 euros per square meter on average, 835,000 euros to 100 m2. The price hike is still very strong in the capital with an annual increase that reaches even 21.3% at end-August. But began to fade in comparison to previous months (23% annual growth in June). "Vendors want to sell their goods too expensive and look at china dogs with buyers until at least mid-November is the deadline to sign the final act before February 1 in order to escape taxation for investors and holders of a second home, "said Laurent Vimont, president of Century 21 network.

The record reached in central Paris displace more three categories: first-time buyers, the middle classes and tenants."We noted in our offices down 17 points in the percentage of buyers for the first-time buyers and middle classes," notes Mr. Vimont. For Mr. Ricour Bourgies of "investors rush to sell studios and 2 rooms yield to the households become homeowners, which reduces the number of units for tenants, another perverse system taxation of capital gains "

Unions in the public and private rally for two days. They want to roll back the government on the review of new austerity measures in Parliament. Thousands of "outrage" expressed Sunday, June 19 against austerity on Syntagma Square in Athens.

Greece was paralyzed Wednesday by a new general strike in two days the call of public service unions and the private sector who hope to reduce the government faces a new set of austerity before Parliament. The fifth general strike since the beginning of the year – the second 48 hours since late June – comes as the country is already disturbed by categorical stops working like scavengers against which the government plans to use the army.

Few professional groups have not called to stop work, from government officials, tax officials, doctors and teachers to the sailors, taxi drivers, traders and managers of gas stations. Even the bakers should join the movement. Public transport idling Wednesday morning. Bus drivers stayed at home but the metro was operating from 6am this morning. Air traffic controllers have decided to stop working 12 hours.

The two main unions in the country, the private sector GSEE and ADEDY for the public, have called for demonstrations in the capital Athens at midday.This show of force aimed at reducing the government, which decided to further austerity measures to meet the demands of creditors of the country, which make it a condition to payment of a new tranche of aid necessary to prevent Greece bankruptcy altogether.

Countries of the European Union could agree Sunday on a new debt reduction Greek more important than that which was decided on July 21 in agreement with the banks, hoping to stem the debt crisis in the euro area that threatens Italy and Spain. In addition to lay-off of 30,000 public sector employees by the end of 2011 and a single wage grid for the officials, the bill under discussion in Parliament provides for a freeze on collective agreements, paving the way for cuts wages in enterprises in the private sector.

"This means that our employers will be able to impose any salary, though we can not oppose it. It is a serious challenge to the rights of employees", judged Tuesday night Irene, an architect of a thirty year will be on the street Wednesday.

The rating agency Standard & Poor's downgraded the sovereign rating Thursday night of long-term credit of Spain by one notch to "AA" to "AA-" with negative implications.

S & P puts forward such weak growth and high debt of the private sector.

In response, the euro has a downward trend in Asian markets opened Friday, but always seems on track to achieve its best performance since the week of January.

"Despite signs of strength in economic performance during the year 2011, we observed an increased risk to the outlook for growth in Spain," said S & P, citing high unemployment, difficult budgetary conditions, the high indebtedness of the private sector and the likely economic slowdown in major trading partners of Spain.

The agency said in a statement to expect that the quality of financial sector assets continue to depreciate.

Standard & Poor's also believes that the reform of the labor market is "incomplete" and therefore constitutes an obstacle to the resumption of economic activity.

"We could lower the rating again if, according to our scenario of decline, the economy is contracting in 2012, if the fiscal situation of Spain deviates significantly from the objectives set by the government or if reforms Additional labor market and other reforms to support growth are delayed, "warns the rating agency.

The chairman of Deutsche Bank, Josef Ackermann, is opposed, in an interview broadcast Saturday, a review of the terms of private sector participation in the second bailout of Greece.

"If we reopen the voluntary agreement of July 21, we not only lose valuable time but also quite possibly the private sector support," said Josef Ackermann in the Sunday edition of Greek newspaper Kathimerini.

"The impact of such a decision will be incalculable.That's why I warn with great energy against any revision material, "the head of Deutsche Bank, who also chairs the Institute of International Finance (IIF).

At the European summit on 21 July, private creditors, represented by the IFIs, have agreed to reduce Greece's debt of some 37 billion euros through a redemption followed by an exchange.

The program anticipates a 21% discount on the underlying bonds, but in recent days, officials from the European Union have suggested that higher discount would be required to read the accounts of Greece by the inspectors of the EU and International Monetary Fund.

Josef Ackermann also finds that the exposure of German and French banks in Greece's debt is "absolutely manageable" and that it is "necessary and important for governments in the euro area to their promises and implement them on time and with determination. "

PSA Peugeot Citroën could reduce up to 10% of its workforce in France by eliminating temporary positions against the expected slowdown of the European car market, write Friday Les Echos and La Tribune, citing union sources after a meeting between Group management and its unions.

Last week, at the motor show in Frankfurt, chief executive of the manufacturer, Philippe Varin, announced an acceleration of cost reductions to cope with the uncertain economic environment in Europe and increased competition in the segment of B C3 cars.

He then mentioned an adjustment from temporary workers and subcontractors.According to the Tribune of Friday, nearly 10,000 temporary positions, or nearly 10% of the group in France, would ultimately threatened.

Asked about the figure, a PSA spokesman said it was "far too early to tell," noting that the working groups set up by Philippe Varin would make their work in October.

PSA employed in late June in the automotive industry 81,240 people, with an additional 10% of temporary workers.

"The willingness to reduce the volume of temporary workers is not good news for employment, particularly among youth," said the CFDT Metallurgy in a statement."This policy will have a direct impact on working conditions, especially for those most vulnerable."

Eric Besson, Minister of Industry, said that one should not rush to draw conclusions on possible job cuts coming at PSA.

"Do not cry wolf when there is no wolf," he said on Canal +.

"Let them wonder about the consequences of the crisis on their future and take steps to remain competitive, surprising and shocking," he added.

500 PERMANENT PENDING

Faced with the rebound in demand after the crisis of 2008-2009 and the success of several new models of the group, such as the Peugeot 3008 and Citroën DS line, PSA has increased its staff of French 1.600 people between December 2010 and June. But faced with economic uncertainty reappeared this summer, the group has suspended its recruitment plan, except strategic functions.

"In terms of staff, we have a temporary drive that represents 10% of the workforce in France, plus subcontractors in large numbers, there were elements of flexibility, plus the mobility agreement, So we are in a situation that is not comparable to 2008, "said Philippe Varin during a press conference in Frankfurt.

In October 2010, PSA has identified 980 jobs to disappear, of which 700 have already been subject to a mobility agreement.For others, the process of management jobs and skills (GPEC) signed in April 2010 and expiring on 30th of this month has been extended until the end of the year Thursday at the CEC.

On this occasion, the unions again sought assurances on the future site of Aulnay-sous-Bois (Seine-Saint-Denis), redundant 300 people since the decision of the night shift in October 2010.But PSA still refuses to comment on the post-C3, saying only that the plant will produce even this model in 2014 and the post is "define".

Regarding the site of spare parts of Melun-Sénart (Seine-et-Marne), which is scheduled to close since the group decided to Vesoul (Haute-Saône) the central store, 180 people are still give their response to the proposals of mobility that has made their PSA.

Total announced Wednesday the acquisition of a 40% interest in five licenses offshore Lamu Basin, Kenya, to develop its presence in exploration and production in the countries of East Africa.

The transaction is subject to approval by the Kenyan authorities, the oil group said in a statement.

The field of operation, located off the Lamu archipelago, covers an area of ​​more than 30,500 square kilometers in water depths between 100 and 3,000 meters.

Total has recently engaged in the exploration and development of reserves of Lake Albert, Uganda, and was selected to develop exploration activities in Tanzania.

The European Commission said on Wednesday which would shortly introduce proposals for Eurobonds, which promises a new face serious challenges, but that supports the euro and equity markets, especially as return to the political maneuvering to try to find solutions to the debt crisis in the euro area.

Degradation by Moody's credit ratings of two of the largest French banks came to illustrate the growing risks to the European financial sector of a deepening crisis.In particular, Moody's said the one notch downgrade of the rating on Societe Generale and Credit Agricole by exposure to the Greek debt.

President Nicolas Sarkozy and Chancellor Angela Merkel were to meet with Greek Prime Minister George Papandreou in the late afternoon.

No official communication is provided at the end of the conference, which takes two days to an informal meeting of EU finance ministers, in Wroclaw, Poland, with the participation of exceptionally U.S. Treasury Secretary Timothy Geithner.

Meanwhile, France and Germany have reiterated their opposition to the issuance of Eurobonds.

In Paris, the budget minister Valérie Pécresse reiterated the position of France, that these bonds could only be "the culmination of a process of consolidation in the euro area" and a convergence of fiscal policies, and not a starting point.

In Berlin, a spokesman for the Ministry of Finance said that Germany was always hostile to it waiting to see what the European Commission will propose.

The President of the European Commission Jose Manuel Barroso said in the morning before the European Parliament that the EC will soon propose options for the introduction of euro bonds. It would, at this stage that a technical document that lists the available options and nothing says that member states of the EU finally choose to embark on this path.

THE BRICS also consider ASSISTANCE

José Manuel Barroso warned, however, that in case of issue of eurobonds would not provide an immediate solution to the problems of Europe.And the Commissioner of Economic and Monetary Affairs Olli Rehn was wanted by recalling that a prudent option amounting to euro bonds was proposed in May 2010 for countries sharing the single currency, which had rejected.

However, these comments supported the euro, which hit a high of 1.3742 to dollar days before returning to around 1.3690 in mid-afternoon.

Sign of the nervousness of investors, European equity markets that had erased their losses after the initial declaration of the President of the EC, significantly reduced their earnings to 16.30, traders citing a possible postponement of the vote in the second rescue plan by the Greek the Austrian Parliament, scheduled Sept. 21 but retoqué in committee.

Bank stocks, the volatility remains high, were all divided down in Paris in the afternoon.Societe Generale, BNP Paribas, Credit Agricole signed the three largest declines in the CAC 40 index.

Hopes also came Wednesday from major emerging countries gathered in the club of the Brics, which should decide on the opportunity to help the euro area at their meeting in Washington Sept. 22, according to an official of the Indian Ministry of Finance.

The BRIC countries (Brazil, Russia, India, China and South Africa) have begun preliminary discussions to increase their holdings of bonds denominated in euro, had already indicated to Reuters on Tuesday an official of the Brazilian government.

Chinese Premier Wen Jiabao at the World Economic Forum in Dalian, nevertheless said China would invest more in Europe but the Europeans were on their side to avoid an extension of the debt crisis. An adviser to the Chinese central bank, Li Dakui, subsequently said that China should refrain from buying large volumes of European bonds, adding that it was important for European countries to continue their reforms.

The adoption of the austerity plan seems to Italy. The government of Silvio Berlusconi has won the confidence of the House of Deputies, the last step before the vote, in the evening, this package of measures designed to bring the country out of the crisis.

Hermes has released the results Wednesday rose sharply in the first half and said that the financial crisis had not affected the attendance of its stores at this time.

The saddle on the Rue du Faubourg Saint-Honore, in which LVMH acquired a 21.4%, further confirmed its growth targets for all of 2011, statements in July, the group for an increase in its Sales at constant exchange rates between 12% and 14%.

Hermes also confirms that its annual operating profit "should be close to the historic high reached in 2010."The margin reached a record 27.8% last year, driven by growth also historical (+19% at constant exchange rates).

"We have not seen a drop in attendance in our stores, not even in Japan," said Patrick Thomas, CEO of Hermes, at a conference for the presentation of interim results.

"That does not mean there will not be," he added, however.

"In July and August, growth is not quite in the first half for reasons mainly the presence of products in shops," he also said Patrick Thomas, referring to the very low stocks in the group.

"The trend is still very good but it is lower than the first half (…), It is not at all a problem of declining attendance in the stores. "

"It is our policy to be as moderate as possible in price increases for next year (…), even if we find a strong increase of certain raw materials," also said the manager of Hermes.

THE DECISION 15/09 ON APPEAL OF THE ADAM

The manufacturer of Kelly bags or silk scarves saw operating profit rise by 37.3% to 418.1 million euros, increasing by 3.7 margin points to 28.3% against 32% a year earlier.

Net income rose 49.5% to 290.5 million euros against 271 million expected by analysts according to Thomson Reuters consensus I / B / E / S.

Patrick Thomas said the floating of the group was now "much reduced" and reiterated that Hermes had to purchase its own shares since early June to cover the programs for free shares to its employees.

He emphasized that such purchases had ceased since the course has exceeded 250 euros, the maximum purchase price authorized by its shareholders, suggesting that LVMH could in turn have continued to increase its stake.

Between early June and late August, Hermes acquired for 242 million euros of its own shares.

The Association for the Defence of Minority Shareholders (Adam) is also seeking to block the creation of a holding company by Hermès family control to counter a possible takeover bid by LVMH.

Hermes was granted a derogation from the Financial Markets Authority (AMF) to the obligation to redeem all the minority in the context of the creation of its holding.

Patrick Thomas was of a "serenity" vis-à-vis the decision of the Court of Appeal of Paris on an appeal of Adam against the exemption, expected Sept. 15.

In exchange, where it operates more at the mercy of speculation than on the performance of a group whose float is now below 7%, as Hermes was down 0.75% to 262.95 euros at 11:35, showing a up close to 68% since the beginning of the year for a market capitalization of around 27 billion.

The Spanish Socialist government announced Friday the signing of an agreement with the conservative opposition in the Constitution for the country the principle of limiting the public deficit and debt.

The Constitution will be amended through a law to be adopted before June 30, 2012, the government said in a statement released in the early hours of Friday.

Both sides agreed to secure 0.4% of GDP limit of the overall deficit of the country, that is to say state and regions included.

The law will also include criteria for a gradual reduction of debt pursuant to the Pact of Stability and Growth in the euro area.

The two sides signed the agreement will review the deficit ceiling in 2015 and 2018.

This follows a call to that effect made by France and Germany to countries threatened by the debt crisis in the euro area.

Spain has already announced Tuesday that it would enshrine in the Constitution a public debt ceiling before the legislative elections in November.