Personal Finance News & Advice

Groupama, forced to sell assets to strengthen its financial solvency, announced Thursday an annual net loss of 1.81 billion euros, its accounts have been sealed by heavy dice depreciations linked to the crisis.

The mutual insurer said in a statement on spending in fiscal 2011 to 3 billion euros of writedowns and exceptional losses, including $ 1.55 billion on Greek sovereign debt.

In late 2011, its equity capital amounted to EUR 5.3 billion against 7.0 billion a year earlier.

Groupama has sold its subsidiary EUROCOURTAGE and its activities in Britain.

The luxury group PPR has formalized the appointment Wednesday of Hedi Slimane as creative director of fashion house Yves Saint Laurent, Stefano Pilati where it will replace, standing ovation Monday when presenting his latest collection of scratched e YSL.

Hedi Slimane and found the house in which he led the men's fashion from 1997 to 2000, before knowing the glory at Dior.

The designer will now assume responsibility for the overall artistic YSL brand and all its collections, PPR said in a statement.

Along with these new features, Hedi Slimane continues his photographic career.

Stefano Pilati was artistic director of Yves Saint Laurent since 2004.

Like all luxury brands, YSL has signed a particularly brilliant year 2011. Its sales have taken off from 31% to 353.7 million euros and operating profit quadrupled to 41 million euros.

As with many other brands, profitability was driven by the success of its leather goods, more profitable than the loan-to-wear.

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. "

Finance ministers of the euro area have indicated to Greece Saturday they could not give the green light to restructure its debt held by the private sector in the absence of guarantees on measures deemed necessary to the granting of a second international aid plan.

The ministers hoped to meet Monday to finalize the second aid package of 130 billion euros to be implemented by mid-March to avoid a bankruptcy of Public Accounts but the appointment was postponed because of reluctance to engage in Athens in favor of the reforms demanded. The meeting was replaced by a conference call.

"All participants of the conference sent a clear message to the Greeks: that's enough," said a member of the Eurogroup. "There are a lot of frustration because they are dragging their feet."

"They have to decide and start talking honestly, decisively and quickly with the troika of program aspects that remain to be finalized, such as tax reforms and those of the Labour Code , "he added.

The troika, consisting of representatives of the International Monetary Fund (IMF), European Commission and European Central Bank, has prepared a plan to restructure Greek debt which depends on the granting of the second aid plan.

VENIZELOS POINTED FINGER

The private sector should accept a discount of around 70% of its obligations under the debt exchange program. This will help to lower than 100 billion euros of debt of Greece, which currently represents 160% of its gross domestic product (GDP).

International creditors demanded that the Greek parliamentary parties agree on including a decrease in the minimum wage and a reduction in premiums paid leave in the private sector but Athens fears a deepening recession and social movements.

Finance ministers from the eurozone believe further that their Greek counterpart Evangelos Venizelos cares more about elections in April that the financial situation.

"There are a lot of frustration regarding the Minister Venizelos, which is very difficult to mobilize because he is busy with the campaign for the leadership of PASOK. IT is not available to meet with members of the troika.

"He prepares his own political future, rather than his country," lamented the head of the Eurogroup.

The interested party has meanwhile spoke of "great anticipation and great pressure not only from the three institutions that make up the troika, but also from the states of the euro area". Evangelos Venizelos has also recognized that the call had been "very difficult".

"The moment is critical. All must be concluded before tomorrow night," he said.

Jean-Claude Juncker, Eurogroup President, has meanwhile not ruled out the possibility of bankruptcy of the Greek government accounts. "If we were to establish that everything went wrong in Greece, there would be no new program (aid) and it would mean that they should declare himself bankrupt in March" , he said.

The Chairman of the Consob Giuseppe Vegas reaffirmed Wednesday that as of Thursday, the ban on naked short sales would be extended to all classes of shares.

At the beginning of November, Constable Italian Stock Exchange announced a ban on naked short sales of all equity markets regulated to reduce market volatility, a decision to take effect from 1 December at midnight.

In an interview published Wednesday by the newspaper La Repubblica, Giuseppe Vegas has also discussed the requirements of the European Banking Authority (EBA) relating to the recovery bond and that he would ask the Bank of Italy to raise the issue at European level

The new EU regulation that requires banks to value sovereign debt in their accounts at market value may cause a new credit crunch that could cripple the economy of Italy, said the president of the Italian stock market authority .

"In Italy, there are fears on banks. The money does not circulate. The main risk is the development of a credit crisis."

"In this scenario, the risk that a bank collapse is secondary.

The rating agency lowered the rating of the country by one notch to "AA +" to "AA". It could further deteriorate in the future. Outgoing Prime Minister of Belgium Yves Leterme, the ordinary business since April 2010

Belgium was sanctioned Friday by the rating agency Standard and Poor's, because of its debt and therefore the political crisis through which it passes for over 500 days and paralyzing currently discussing the formation of the next budget. The rating agency lowered the rating of the Kingdom by one notch to "AA +" to "AA". It could further deteriorate in the future.

Reacting immediately, the Prime Minister Yves Leterme current affairs said that the decision was "naturally bad news," before launching an appeal to political parties to reach agreement within 48 hours on the budget.The country's leaders also face pressure from the European Commission threatening Belgium with a fine of 700 million euros if a tight budget is not completed by mid-December.

Continuing difficulties in the financial sector

It is this urgency and the lack of credibility of the country has pointed Standard & Poor's lowering the rating of the kingdom. Involved: "difficulties in the financial sector" which may require greater support by the government which would increase the already high debt of the country and especially the context of "political uncertainty" that continues to affect the credibility of Belgium as a borrower.

Nexans Thursday confirmed its 2011 targets after strong third quarter as forecast by a slowdown in growth due to an unfavorable base effect.

The world number two cable conducted on a quarter revenues of 1.127 billion euros at constant non-ferrous metals, an increase of 3.9%.In the first half, the group posted organic growth of 8.2%.

Nexans has maintained its annual target organic growth of between 5 and 7% and that of an operating margin of about 5.5%, but with an enhanced contribution of industry and construction segments, and a contribution weaker segment energy because of the economic environment.

"The increase in activities of medium and low voltage is subject to conditions as operators invest electricity still based on it," he told Reuters Frédéric Vincent, CEO of Nexans. "And we will be weaker in 2011 than in 2010 high-voltage ground in view of the situation in the Middle East."

Nexans notes, however, begin to restart in the Gulf.As for Libya, the end of the war could provide opportunities in energy, but not this year.

"With the end of troubles, we secure the recovery of activity in 2012 but nothing in 2011," said Frederic Vincent.

At current metal prices – especially copper, which Nexans believes it should remain around its current price in the fourth quarter – revenue the quarter stood at 1.711 billion euros.

The lowering of the rating two notches by Moody's Spanish increases the pressure on European leaders urged to engage at the summit of 23 October breakthroughs to resolve the sovereign debt crisis.

The rating agency announced Monday that it gave three months to assess the French Aaa rating and stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks.

In this context, the markets have high expectations of the European Council to be held this Sunday, and during which France and Germany have promised to present a solution "comprehensive and lasting peace" to the crisis of the euro.

Nicolas Sarkozy on Wednesday was to have a telephone conversation with Angela Merkel to prepare for the meeting.

But German Chancellor again invited to the Wednesday markets patience.

"These sovereign debt has accumulated for decades, so we can not resolve in a single peak. It will be hard work over the long term," she said at a conference the press.

A theme echoed by the European Commission President Jose Manuel Barroso. "We are at a decisive moment, which requires clear answers and determined responses together," he said."Do not expect us to be at the end of our troubles."

"Finito BASTA"

According to German newspaper Handelsblatt, citing government sources, Germany is considering using the European Financial Stability Fund (EFSF) to help states pay the interest on their debt.

This could take the form of a suspension of payment of interest through the issuance of zero coupon by the EFSF, the newspaper said.

Some countries such as China, India and Brazil could also contribute to strengthening the capacity of the fund, said last Handelsblatt.

Berlin, however, tried to put an end to speculation about a possible increase in funding for the EFSF.

"There is no discussion of an increase in excess of 440 billion euros, that's it, finito, basta," said the spokesman for the German finance minister, Wolfgang Schäuble.

Two senior officials of the European Union had earlier denied reports the British daily The Guardian that France and Germany have agreed to carry the EFSF to 2,000 billion euros as part of plan to resolve the crisis debt in the euro area.

One of the two leaders said it was not easy to increase the capacity of the EFSF, currently at 440 billion euros.

Leveraging the EFSF? "NOT SO SIMPLE"

"It is naive to think we can do this kind of calculation and come up with a nice round figure of 2,000 billion.It's not that simple, "he said.

European leaders, however, could agree on Sunday means the multiplication of the response capacity of the EFSF, allowing it to secure some of the new issue of debt in the euro area, said on Tuesday European officials.

Ensuring, for example, the first 20% to 30% of potential losses, the EFSF could triple or five overall capacity for intervention.

With about 300 billion yet available, the EFSF could thus increase its fire power to more than 1,000 billion or 2,000 billion, which would be sufficient to cover the financing needs of Spain and the Italy in 2012.

European leaders will try to convince otherwise Sunday the banks to accept "voluntary" at a discount may reach 50% of their debt securities Greek and they will try to develop a plan for recapitalization of financial institutions the weakest.

Greece is still mired in recession and the debt is expected to reach 357 billion euros this year, equivalent to 162% of its gross domestic product. Most analysts agree that this debt can not be honored by Athens.

The European Financial Stability Fund (EFSF) will not be turned into a bank, says its leader, Klaus Regling. It was one of the options mentioned to strengthen the capacity of the fund. Klaus Regling, head of European Financial Stability Fund (EFSF).

Europeans have abandoned the idea of ​​transforming the European Financial Stability Fund (EFSF) in the bank to increase its ability to help beyond the planned 440 billion euros, said its chief Klaus Regling, quoted by Handelsblatt Tuesday . This idea, "yet discussed a few weeks ago (…) is not at all on the table" before the EU summit this weekend that should answer that Europeans hope to convincingly debt crisis in the eurozone.

"The EFSF will not be a bank," he said at a conference in Munich, according to the German business daily.Give the EFSF a banking license would have allowed him to borrow from the European Central Bank (ECB) – who opposed the idea – and to leverage its financial strength as well as for future assistance to States and troubled banks in the euro area. Other means could allow an expansion of the capacity for action of the fund, for example by making him act as an insurer, extending its guarantee financial debt of the States.

According to Handelsblatt, the European Commission, Germany and other European countries have rejected the idea of ​​a banking license as contrary to EU treaties that prohibit the ECB to finance the debts of member countries. Such a solution would be to turn back the ECB's "bad bank" or defeasance structure for bonds depreciated, and would have been a step towards sharing of losses of states, including Berlin denies that.

Europe will have its problems resolved by the G20 summit on November 3 and 4, Nicolas Sarkozy said Sunday.

The Franco-German agreement is "total" the necessity to provide "comprehensive and sustainable solutions," said the French president at a joint press conference in Berlin with German Chancellor Angela Merkel.

Paris and Berlin, he stated inter alia, are "willing to strengthen the capital structure of banks in Europe."

They also offer a number of adaptations of European treaties to accelerate the integration of the euro zone, said Nicolas Sarkozy.

"We will find solutions that will ensure the financial stability of Europe and the sustainable treatment of problems," he said.