Personal Finance News & Advice

The Tokyo Stock Exchange ended sharply lower Friday as investors worried by the worsening debt crisis in the eurozone and rising yen.

The Nikkei lost 2.99% to 8611.31 points, points, while the Topix broader, yielded 2.89% to 725.54 points.

The fear that the turmoil in Spain, after the lowering of 16 banks by Moody's, impact on the Japanese financial sector weighed on banking stocks as Nomura Holdings, which fell 5.63%.

Exporting companies have also suffered from the rise in the yen, considered a hedge against the dollar and the euro.

Toyota has sold 3.7% and Nikon, which is no longer recommended for purchase by Nomura, lost 5.7%. 

The Japanese Finance Minister Jun Azumi said Friday he was following the developments on the foreign exchange market with special attention, adding that he was ready to react appropriately, comments that suggest mid-word possible intervention on the yen.

The price of raw materials, corn and iron ore, will remain high in 2012 due to demand from China, which seeks to revive its growth, said Wednesday the 'economist Philip Chalmin.

Demand from emerging markets, especially China, will offset the demand in Western economies at half mast this year but the raw materials remain exposed to high volatility, as was the case for oil in 2011.

The activity in China, whose growth has returned in the first quarter to its lowest level in nearly three years, has aroused the concern of some investors, the country being one of main drivers of the global economy and a major consumer of raw materials. 

But after having focused on inflation in the second half of 2011, China should seek to strengthen its growth this year as it prepares to develop new leaders policies for the first time in a decade, said Philippe Chalmin reporters.

"In this transition year, I think the Chinese will play back the economic recovery," he said when presenting the 26th report on cycles and guidance products and exchanges (Cyclops), published Wednesday.

"China is undoubtedly the key to a number of commodity markets," he added.

Rising food demand from China has made this country the world's largest importer of soybeans and a major importer of corn. 

Forecasters expect the Cyclops on maintaining a relatively high average prices of most commodities, although below those of 2011. The U.S. wheat could fall by 1% as well, that of copper by 15% and cotton by 37%.

"We expect today's world prices slightly lower than those we experienced during the spring of 2011," he added.

Among the few price increases expected this year, experts expect Cyclops rose from 54% of the carbon price, a market half-mast until now, up 9% to palladium , used in the automotive sector, and an increase of 8% for gold and crude oil the United States.

Finance ministers of the euro area have agreed to bring the total response capability for emergency funds to some 800 billion euros, said Friday the Austrian Minister of Finance Maria Fekter.

After intense discussions, in the opinion of several sources, the 17 euro zone countries have chosen a minimal agreement that suits countries like Germany, Finland and the Netherlands, which the public does not want to pay for bailouts, sources said the European Union. 

This includes $ 500 billion of the European Stability Mechanism (MES), the permanent emergency fund that will be operational in July, and 200 billion already committed by the Europe Fund in financial stability (EFSF), the temporary emergency fund to be disabled in July 2013, told reporters Maria Fekter.

She said that this was added the remaining 49 billion of European Financial Stability Mechanism (EFSM), which had been the first response to the debt crisis of the euro area, and 53 billion bilateral loan to Greece.

A senior official of the euro area has confirmed these amounts. 

The EFSF has a total capacity of loan of 440 billion euros and 240 billion would not mobilized a mattress in an emergency within 15 months, during which the EFSF and MES will be operational in parallel, said Maria Fekter.

The European Commission, France and several other major economic powers wanted to help build the capacity of the euro area as possible in the hope that, faced with such a display of force , markets regain confidence in the long run, thus avoiding having to commit any such capacity. 

But Berlin did not want such a mobilization in advance, not accepting that if it is really necessary, while noting that the markets were already over and placated implementation of agreed reforms was more important.

With such a decision, the euro area will have something to present to the G20 finance ministers in Washington in April, during a meeting that will discuss higher global contributions to the International Monetary Fund.

Capacity building of the eurozone bailout is, for most countries of the Group of Twenty (G20), a prerequisite for increased allocations to the IMF. 

From this perspective, the euro area is now well placed to discuss the matter, said Friday French Finance Minister Baroin.

"This is a good signal," he has said.

Frédéric Oudéa, CEO of Societe Generale, will collect under a fiscal 2011 bonus of 682,770 euros gross, down 43% compared to 2010, indicates French bank on its website.

SocGen added that in 2012 Frederick Oudéa receive a fixed gross one million euros, an amount unchanged from that of 2011.

"In a context of major economic crisis affecting the banking sector and the results of Societe General, the board (of directors, Ed) has decided to enroll in the wage restraint policy implemented by the Directorate General for all Group employees, "said SocGen in a paper posted online. 

The three deputy managing directors of the bank, Severin Cabannes, Jean-Francois Sammarcelli and Bernardo Sanchez Incera, receive variable remuneration crude were down 28% to , 53% for 2011.

Societe Generale last year saw its net profit fall by 39%, accounts that have been sealed by the debt crisis in the euro area and costly ts related to the restructuring of its activities in corporate banking and investment.

BNP Paribas has in turn reported in mid-March pay cuts ranging from 8% to 19% for its three most senior executives for 2011. 

At Credit Suisse, the remuneration of the CEO Brady Dougan for 2011 was reduced by more than half, which was reduced to 5, 82 million Swiss francs (4.8 million) against 12.76 million the previous year.

Enhanced lending capacity of bailout funds in the euro area would reassure markets, which are not persuaded that the debt crisis is over and fear of further declines in ratings, estimates Klaus Regling, who heads the European Financial Stability Fund (EFSF).

"More money would reassure markets, wrongly or rightly, large numbers subside," said Regling, in an interview published Sunday by the German magazine Focus.

Finance ministers of the euro area (Eurogroup) will meet in Copenhagen on 30 and 31 March to decide whether to increase the lending capacity of the bailout mechanism euro area.

That of the EFSF is 500 billion euros. 

Der Spiegel reported on its side that German Chancellor Angela Merkel, strongly opposed to increased firepower of European aid mechanism, is currently changing his opinion, con frequency of pressure from its European partners and the International Monetary Fund (IMF).

According to Spiegel, Merkel and Finance Minister Wolfgang Schäuble agreed that the EFSF and its successor the European Stability Mechanism (MES), could both be operational during a transitional period. 

Two possibilities are being studied: group the 500 billion euros of MES with 200 billion euros of EFSF already set aside for Greece, Portugal and Ireland; combine EFSF and MY ability to reach a loan of 940 billion euros.

A spokesman for the Ministry of Finance would not comment on the Spiegel article but said, about the Eurogroup meeting at the end of the month: "Discussions are continuing but we were hopeful that a solution will materialize at the Copenhagen meeting, which satisfies everyone. "

'The bailouts did not cost a penny to Germany. The idea that money is lost forever is false, they are ready, to be repaid, "argues his side Regling, adding that Germany has benefited from the crisis in the euro area, to the extent that borrowing costs have fallen

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PSA Peugeot-Citroëna announced Friday that he was studying with General Motors, as part of their alliance, the feasibility of developments on common platforms for large segments of small sedans and minivans.

The French carmaker also announced in a statement issued at the end of a European Works Council, the offset of 7 months of the industrialization phase of the DCT gearbox whose production is envisaged on the site of Valenciennes.

"During this period, it was decided to explore cheaper ways including those offered by the alliance with GM to allow the group to have a box that kind, "said PSA. 

The suspension of a proposed C-segment car – compact type – provided on the site of Madrid is also confirmed.

PSA also said in a statement it was studying GM with the launch of a program of small cars for emerging markets, with a first potential application in Latin America , and co-development of a platform for small cars with low CO2 emissions.

Faced with labor unions determined, employers eventually agreed that the increase in supplementary pensions not only integrates the forecasts of price increases for 2012, but inflation in 2011. The chamber, which wanted the increase will not exceed 1.56%, due to the financial situation of supplementary pension funds, has finally accepted the request of trade unions.

Good news for 11 million pensioners in the private sector. The supplementary pension will be uprated by 2.3% in April 1st, the two organizations announced Agirc-Arrco in a joint statement confirming the information Echos and Le Figaro.

As a reminder, the MEDEF wanted the increase will not exceed 1.56%, highlighting the difficult financial situation of supplementary pension funds. In 2010, Agirc-Arrco had an overall deficit of over € 350 million (surplus of 355 million euros for Arrco – deficit of 709 million euros for Agirc).

But the unions did not see it that way. They demanded an increase of 2.3% to integrate not only the price increase planned for this year but inflation last year (0.55 points). They finally succeeded with an average annual increase of 2.25% for Arrco and 1.82% for Agirc.

Basic pensions (CNAV), for their part should be uprated by 2.2% on the same date, says Le Figaro.

European shares ended higher Friday, boosted by the creation of jobs higher than expected in the U.S. and the high rate of private sector participation in the Greek debt restructuring.

In Paris the CAC 40 closed up 0.26% (9.12 points) to 3,487.48 points. For the week, the Cac 40 lost 0.39%. In London, the FTSE took 0.47%, the DAX in Frankfurt 0.67% and the pan-European FTSEurofirst 300 index 0.54%.

European banking stocks, the most directly affected by the Greek record, started the session up but the sector index is then passed into the red and finished down 0 , 48%. Commerzbank has sold 2.48%, 1.03% Societe Generale and Credit Agricole 0.96%.

The Italian bank lost 2.76%, suffering from profit taking.

The success of the exchange offer of securities of Athens with its private creditors should allow a rapid disbursement of the first tranche of the new aid package of 130 billion euros to Greece, thus avoiding the latter a disorderly default.

The U.S. economy created 227,000 non-farm jobs last month and the unemployment rate remained at its lowest level in three years, to 8.3%, according to Labor Department statistics.

The euro fell back, however, significantly against the greenback, around $ 1.31.

Contracts held for less than 8 years will be subject to the schedule of income tax, which varies from 5.5% to 14%, 30% or 41% currently as tax brackets, even 45% and 75 % if the PS introduced two additional rate. Only new contracts will be affected. The PS candidate for president, Francois Hollande, said Monday night on TF1's intention to tax at 75% rvenus greater than one million euros per year.

Francois Hollande has no plans to change the terms of taxation of life insurance contracts held for more than eight years, said Thursday told AFP Michel Sapin, in charge of the presidential project of the socialist candidate for president . "Francois Hollande is keen to apply the principle of fair taxation is that capital income should be taxed as labor income," said Michel Sapin.  

"But this principle must be adapted to the specificity of each individual investment and savings tools. Regarding life insurance, it seems legitimate when that savings tool is used for short term – less than 8 years – that the principle is implemented in full, "he said. In other words, that the interests of these investments are subject to the schedule of income tax, which varies from 5.5% to 14%, 30% or 41% depending on the current tax brackets, even 45% and 75% if the PS introduced two additional rate. This would only affect new contracts, said Michel Sapin.

Currently, investors have every incentive to keep their life insurance contract for at least 8 years holding period from which the taxation of this investment is softer at 7.5%. Withdraw before four years of detention is accompanied by a tax of 35%, which drops to 15% between 4 and 8 years. "Beyond 8 years, this is a long-term savings, which is useful in many French and helpful in financing the French economy, and given this fact, Francois Hollande is not proposing changing taxation methods, "said Michel Sapin.

That is to say that beyond eight years of detention, interest will continue to be taxed at 7.5% for all taxable persons and that the abatement (4,600 euros per person) will be retained . These statements contradict those made Tuesday by Michel Sapin in a newspaper article on the internet latribune.fr. The member of the Indre indicated there while "life insurance is subject to the scale of income tax" without differentiating between short and long term. "We do not expect to maintain reductions exempting the result of these investments", he had continued

. These words, synonymous with hardening of the taxation of life insurance, had been badly received by the insurers, who saw an attack on this placement adopted by 17 million French households. The socialist candidate also wants "the share of saving life dedicated to business financing is increased," said Michel Sapin. "The purpose of Francois Hollande is that the proportion be increased in order to mobilize more savings in support of this re-industrialization and for development of SMEs and SMIs," and that "in connection with the professionals life insurance, "he said.

Standard Chartered reported Wednesday a 10.7% jump in pretax profit in 2011, in line with expectations, signing a record result for the ninth consecutive year favor of the Asian economic growth remains strong.

The bank displays a taxable profit of 6.78 billion dollars against 6.12 billion in 2010. Economists anticipated $ 6.8 billion, according to Thomson Reuters I / B / E / S.

"The pace of growth should accelerate in 2012," said Dominic Chan, an analyst at BNP Paribas in Hong Kong. "The major markets such as India, are showing signs of improvement and the bank is well positioned to gain market share in areas such as finance international trade or wholesale banking. "

The results were supported by the strong performance of StanChart in China and Singapore. The city-state, where the group posted a profit of one billion dollars, has become its third largest market.

"We started well in 2012, after a very strong year-end 2011," said Chief Executive Peter Sands said in a statement. "For 2012, we are on track for a double-digit income, EPS (earnings per share) in double figures (…) but it is still early to tell. "