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 level of satisfaction in life is to the French 7.3 out of 10, according to a study. Not surprisingly, satisfaction increases with the standard of living. Participants at the 13th edition of the Paris Techno Parade (September 2011)

The French are quite happy in their lives, and they are all the more as their incomes rise, according to a study released Wednesday by the National Institute of Statistics (INSEE). "In France in 2010, when we ask people to indicate their level of satisfaction in life, they meet an average of 7.3 on a scale of 0 to 10", is the INSEE.

This study was conducted following the report presented in 2009 by Nobel laureate economist Joseph Stiglitz.This report commissioned by President Nicolas Sarkozy suggested to complete the measurement of economic growth, currently estimated by the gross domestic product (GDP), indicators of "well being" taking into account the non-market activities (housework, leisure …) or inequality.

The money buys happiness

According to INSEE, 92% of respondents said a satisfaction greater than or equal to 5, and 60% even give themselves a score between 7 and 9. "The satisfaction increases systematically with the standard of living," said he: it rose from an average of 6 to 10% of the most modest at 7.8 for the 10% most affluent.Similarly, the French have more difficulties, to make ends meet month to pay their bills or have adequate housing, more dissatisfaction is high.

However, most high-income, "plus gain satisfaction is low and other dimensions that the income involved," said INSEE. "The money buys happiness, but only to a certain extent," he told AFP Fabrice Lenglart, Director of Demographic and Social Statistics at INSEE. "This is the first time that we assess subjective indicators. The main interest is to be correlated with objective data that we used to collect," he added.

After the material living conditions, health problems have a strong impact on the well-being felt.Other factors include age (45-49 years are the least satisfied) and the situation vis-à-vis employment (the unemployed are significantly more dissatisfied than assets). Residents of rural communities say they are on their side slightly more satisfied than city dwellers.

The study was conducted in May and June 2010 with a panel of 10,000 households representative of the so-called ordinary French metropolitan population over 16 years, interviewed face to face.

European banks may need more than 100 billion euros of fresh money to the crisis of sovereign debt, said Saturday in Ireland, on the eve of a meeting between Nicolas Sarkozy and Angela Merkel should be largely devoted to the recapitalization of the sector.

Illustration of the urgency of the matter: Paris and Brussels talks continued Saturday for an orderly dismantling of Franco-Belgian group Dexia, the first European victim of the bank debt crisis.

Germany and France have so far given conflicting discourses on the best way to strengthen banks weakened by the devaluation of their holdings of sovereign debt of countries "devices" in the euro area and by the recent turmoil in the markets Financial.

Paris would prefer to use the European Financial Stability Fund (EFSF) to recapitalize their own banks, while Berlin insists on booking this instrument of last resort actions, such as support to Greece.

The International Monetary Fund (IMF), meanwhile, estimates that the capital requirements of banks could reach 200 billion euros, the equivalent of half the resources of EFSF.

The Irish Finance Minister, Michael Noonan, said Saturday that the necessary capital to strengthen banks' balance sheets could come from different sources but the overall bill would in any case heavy.

"I think everyone agrees that far exceed 100 billion (euros)," he told reporters on the sidelines of an economic conference in Dublin.

"I know some of the major German banks with which I myself have discussed plan to raise money in the market, so there will be a private financing. Other banks would have EFSF funds. Others depend on their government to provide capital, there will be many ways to do this, "he added.

EACH SETTING THE CONDITIONS

Some officials believe that forcing many major financial institutions to accept public funding would not make the best use of European resources.The banks, themselves, fear that this strategy branding some of them and inflame tensions in the markets.

The German daily Frankfurter Allgemeine Zeitung (FAZ) reported Saturday, citing financial sources, that the first five French banks would be willing to receive 10 to 15 billion euros invested by the French state on condition that Deutsche Bank, a number Germany is also increasing its capital.

The CEO of Deutsche Bank, Josef Ackermann, is opposed to any entry of the state capital of his group and he ruled out a capital increase.

A spokesman for Deutsche Bank reiterated Saturday that double principled position and declined to comment further.

Nicolas Sarkozy, who received Saturday the Executive Director International Monetary Fund (IMF), Christine Lagarde, to arrive in Berlin in mid-afternoon on Sunday for a meeting and a working dinner with Chancellor Angela Merkel.

Their discussions will be devoted to the preparation of the G20 summit in Cannes in early November and that the European Council and summit of the euro area provided 17 and 18 October, while Seventeen still struggling to implement the new mechanisms supposed to solve the debt crisis.

In Slovakia, in fact, the various parties in the ruling coalition Saturday remained at odds over ratification of the Europe Agreement of 21 July which provides for the strengthening of EFSF, one of the smaller parties placing conditions on his support.

Slovakia and Malta are the last two countries in the euro area has not ratified the agreement in July that some regional leaders believe already passed.

The German finance minister, Wolfgang Schäuble, has acknowledged in an interview with FAZ that Europe may have underestimated the resources needed to reduce the burden under which plunged Greece.

"The risk is high to see this crisis about a further escalation and spread," he added.

A view shared by the Greek representative at the IMF, for which the financing needs of Athens will be higher than current estimates.

"This lack of funding will be covered either by an increase of 109 billion loan decided on July 21 or by a private debt restructuring," he told the Greek daily Imerisia.

The euro rebounded frankly Monday at midday, as equity markets driven by banking stocks after opening sharply lower, thanks to hopes for the European Central Bank cut its interest rates for support the economy.

The ECB is the only one of four 'major' world's central banks to have begun a cycle of rising rates, falling twice since April. The easing of inflationary pressures reinforces those who believe that the ECB will be forced to ease monetary policy because of sluggish growth.

"The ECB does not undertake to advance and rate cuts can not be excluded.It all depends on future developments, "said Ewald Nowotny in the morning, a member of the Governing Council of the ECB.

The euro, which hit a new low in eight months against the dollar and a 10-year low against the yen, is back above $ 1.35 in favor of speculation the ECB and a Ifo business climate in Germany better than expected although declining.

The anticipation of a share of the ECB also feeds a rebound in oil prices.Brent, who had fallen below 102 dollars, is trading around 104.80 dollars a barrel and U.S. crude, which had been reduced to just above 77 dollars, rose above $ 80 a barrel .

The Ifo economist Klaus Abberger Institute said he expected a return of the refinancing rate of the ECB to 1% – against 1.5% now – while stressing that it is difficult to anticipate when the decline could intervene.

This perspective has somewhat overshadowed concerns about the debt crisis in the euro area and the difficulties of European leaders at the curb.

On equity markets, the Paris Bourse takes about 3%, as the Frankfurt Stock Exchange, supported by the values ​​of the insurance and banking, respectively, whose indices resumed about 6% and 4.7% .

The U.S. Treasuries and German Bunds were down in response to buoyant equity markets, but caution is still required and the predominant feeling is that this decline will be only short-term bond markets.

The index futures suggested Wall Street now open sharply higher as they gave a sharp decline in market early in the day.

Eurobond BELIEVED "inevitable"

Asian stock markets were down sharply over yet, as investors once again stung by the fact that the EU leaders' discussions, especially concerning the strengthening of EFSF, have resulted in anything concrete.

Europe has once again been called to beef up Sunday its response to the debt crisis that afflicts him, asking the International Monetary Fund including more action from the European Central Bank.According to the IMF, the ECB is indeed the only player strong enough to "scare" the financial markets.

"As long as political leaders have not developed a long-term solution to address the debt crisis, the short-term outlook for copper and equity markets will remain negative," said Ong Yiling analyst Phillip Futures.

Klaas Knot, Member of the Board of Governors of the European Central Bank (ECB) on Monday called for the creation of an independent budgetary authority to impose sanctions on countries in the euro area with a high deficit.

He also finds "inevitable" the introduction of euro bonds common to the euro area.

A trader suspected of being linked to losses of some $ 2 billion announced Thursday morning by UBS, was arrested in London, said on Thursday from several sources.

London police said they had arrested a 31 year old man suspected of fraud. Swiss bank UBS was not long before reports a loss estimated at two billion dollars due to unauthorized trading by one of its traders.

The Swiss newspaper NZZ, citing UBS, reported that the trader in question worked in service "stock market" of the London office of Swiss bank.

The arrest took place during the night, at 3:30 am local time, on suspicion of fraud.The man is currently under police surveillance.

A UBS spokesman confirmed to Reuters that one of its employees had been arrested.

Before the opening of markets, the Swiss bank announced in a terse statement that a trader had generated losses of about $ 2 billion through unauthorized trading in its investment bank, which could result in a loss in the third quarter.

"An investigation is underway, but the current estimate of UBS for losses on transactions is around two billion," the bank said, adding that no customers had position was affected.

By 10:45 GMT, UBS shares fell 7.7% to 10.09 Swiss francs, while the European sector index of banking stocks gained 2.21%.

CRISIS OF CONFIDENCE?

The new strikes UBS reminded investors the Kerviel affair, named after the former Societe Generale trader Jerome Kerviel, accused of losing 4.9 billion euros at SocGen in 2008 by conducting stances are not allowed.

"It's amazing that it is still possible," was surprised Claude Zehnder, trading analyst at Zurich Cantonal Bank, about the losses announced by UBS.

"Even if the amount is not so huge, there is again a loss of confidence that casts an unfavorable light on UBS.With that, the bank loses some credit she returned, "he added.

The management of UBS has told its employees that the bank remained strong despite the loss, however, which comes as the group undergoing restructuring, is struggling to regain investor confidence after heavy losses from the crisis of 2008 and suspicions complicity in tax evasion.

"This news is unfortunate, but it does not affect the fundamental strength of our business," UBS said its teams, according to an internal memo that Reuters was able to consult.

The rating agency confirmed Tuesday the maximum "AAA" rating to the debt of the United States, less than a week after the degradation of the note by S & P. The U.S. Congress passed a law Tuesday, August 2 authorizing the raising of the ceiling of the debt, after weeks of political deadlock.

The rating agency Fitch Ratings said Tuesday the maximum "AAA" rating to the debt of the United States, less than a week after its rival Standard & Poor's had decided to lower it a notch, causing a earthquake in the financial markets. This note offers a perspective "stable", meaning that Fitch does not plan to change the medium term.

In a statement, Fitch said its decision that "the fundamental pillars of the exceptional credit of the United States remains intact: its pivotal role in global financial systems and a flexible economy, diverse and rich".The U.S. economy, is still there, is also capable of adapting to shocks thanks to the flexibility of monetary policy and its exchange rate. He believes that the world's largest economy should return rate and its growth is expected to exceed its long-term before stabilizing over time above 2.25% per annum.

The rating agency notes, however it may have to revise "negative" the outlook for the rating of the country if the two-party parliamentary committee, whose conclusions are expected by the end of November, could not to agree on a credible plan to reduce debt.

Such a decision would imply a probability greater than 50% as the country lost in two years his precious talisman, which allows it to benefit from very favorable refinancing conditions.A lowering of the pure and simple note in the country could intervene on this occasion, although this scenario is "less likely," said Fitch.

Oil prices have closed up nearly 3% Monday in the hope that European leaders will eventually find a solution to the debt crisis.

Black gold has also benefited from the new growth in global stock markets and the decline of the dollar.

On the Nymex, the contract on September U.S. crude (WTI) finished with a gain of 2.50 dollar, or 2.93% to 87.88 dollars a barrel.Meanwhile, Brent advanced to 1.61%, or $ 1.74, to 109.77 dollars.

The price of Brent are still lower by about 15% compared to the highest of the year of 127.02 dollars reached in April.

This level, the highest since the outbreak of the 2008-2009 financial crisis had been reached at the time of the eruption of violence in Libya, which disrupted the supply of crude to Europe.

Since the concerns about the state of the global economy is refluxed in the market.

The Strategic Investment Fund (ISF) announced Thursday its entry to the capital of Bull up to more than 5% in order to enhance ownership and support the development of the IT group.

"The ISPs, long-term investor, thus contributing to enhancing shareholder of Bull, which it intends to support the development of its various markets," said the ISP in a statement.

Bull, which employs 8,600 people, including more than 4,500 in France, is on the market of supercomputers, security and "cloud computing".

"I look forward to the arrival of the ISP, which became the third shareholder in the group after Crescendo and France Telecom," said Philippe Vannier for his part, President and CEO of Bull of the investment fund Crescendo Industries, the largest shareholder the IT group.

Action Bull closed Wednesday at 3.85 euros, a market capitalization of around 500 million euros. Since the beginning of the year, the stock has gained nearly 13% after a gain of more than 11% throughout 2010.

The Paris Bourse opens slightly lower Wednesday, continuing its consolidation in the wake of U.S. markets yesterday, after degradation by Moody's debt of Portugal.

At 9:24, the CAC 40 index yields 0.28% to 3967.52 points, below the threshold of 4000 passed last Friday.

Banks weigh on the rating, assigned by Moody's decision to degrade the speculative grade debt of Portugal, who raises fears of contagion from the Greek sovereign debt.Credit Agricole (-1.9%), which also confirmed the departure of its chief financial officer, the fastest decline.

Scor was down over 3%, largest drop in SRD, after announcing that the exceptionally high cost of natural disasters in the first quarter led him to issue up to 75 million shares to strengthen its equity .

Other major European markets are also down slightly: London and Frankfurt lost 0.27% 0.19%. Of the European indices, the EuroStoxx 50 yields 0.61% and 0.36% Eurofirst 300.

The euro fell slightly vis-à-vis the dollar and is trading around 1.44 dollars against 1.4421 the previous evening and U.S. light crude gained 31 cents to 97.20 dollars / barrel.

Household consumption was weaker estimated in the first place. INSEE revised growth earlier this year to 0.9% as against 1% previously. Liner France

Growth in the first quarter in France has reached 0.9%, Insee said Wednesday, revising slightly downwards its previous estimate of growth during this period, set at 1.0% in mid-May.

The National Institute of Statistics does not emphasize less the "clear acceleration" of growth in the first quarter of 2011. INSEE also states that the rising purchasing power of households slowed to 0.2% after 0.4% last quarter.

The revised estimate of first quarter results from one of several indicators including the production and consumption as well as the integration of information obtained since the previous publication, INSEE said.