US & World News

From early 2011, the European bankers will no longer affect more than one third of their bonus in cash and the payment of 40% of the total variable pay will be deferred over time, according to an agreement reached Wednesday between MEPs and member states .

Moreover, bank managers who have not repaid the state aid paid to the height of the financial crisis will not be eligible for variable pay and their salaries can not exceed a certain limit.

Finally, extraordinary payments related to retirement are covered by these rules.

"Parliament has managed to get 70% bonus is linked to the results when states were content to pay portmanteau words as 'balanced' or variable part" reasonable ", welcomed the French MEP Canfin Pascal, who was negotiating the text for the Greens.

Technically, according to the agreement, 30% of earnings will be pocketed immediately, 30% will be paid in shares not immediately salable and the remaining 40% will be paid later, half in cash and half in financial instruments linked to the performance of long After the bank.

The directive, known CRD3 (Capital Requirements Directive), also increases the capital requirements for operations re-securitization, which will affect the activity of investment banks.

The new rules should be in force early next year to cover bonuses and variable compensation paid in January 2011.

Retail sales fell in Spain in May, their second consecutive month of decline, a trend that could jeopardize the growth of the economy in the second quarter.

This decrease of 1.9% compared to May 2009 when adjusted for seasonal variations made after the fall of 2.4% in April, said the National Institute of Statistics (INE).

This further decline is partly due to segments of the consumer electronics and power.

Retail sales in Spain had increased in March for the first time since November 2007.

The renewed weakness in consumption could undermine the government forecasts a growth in gross domestic product (GDP) in each quarter this year after recovering from recession in the first three months.

"The retail sales figure is wrong and shows that people are worried about the future. The demand is low because people increase their savings," said Mariano Alierta M & G Valores.

"There are many uncertainties and we can expect continued weakness in retail sales until the job prospects are improving."

Leaders of major industrial nations and major emerging countries meet Sunday in Toronto with a challenge to coordinate their policies to make sustainable global economic recovery, they speak in jumbled order.

The G20 will also take stock of their efforts to regulate banks and markets, a stated priority in their previous meetings to ensure that the financial crisis of late 2007, which degenerated into an unprecedented global depression since 1929 not recur.

This is the fourth summit meeting of the group since the end of 2008 in Washington at the height of the crisis.

Composed of the United States, its major European allies, Japan and also China, Brazil, India and Russia, the G20, which accounts for 80% of world trade, has meanwhile become the main forum international discussion on economic and financial issues.

If the recession, which was fought by hundreds of billions of dollars of public money, now belongs to the past, the challenge now is to consolidate growth globally still considered fragile.

In this context, the United States, joined by other countries such as India, have expressed concern in public policies to reduce their deficit announced by several European countries precipitated by the financial storm that nearly won Greece, one of most indebted nations.

SAME PURPOSE

The approach of the G20, which was preceded by a G8 summit in rural Ontario, has nevertheless been marked by a desire for peace between the two sides of the Atlantic.

"We are aiming the same direction, that of a long-term sustainable growth that puts people at work," said U.S. President Barack Obama.

According to a draft statement obtained by Reuters, the G20 countries are close to agreement on a reduction by half of their deficits, which were inflated by the crisis, over a period of three years. But they also leave the choice to each act, at least initially, at their own pace to take account of its economic situation.

The draft communique circulating recognizes the existence of more or less advanced stages of recovery depending on the country and the delicate balance needed between supporting growth and consolidation of public finances.

"There is the risk that a fiscal adjustment synchronized several major economies negatively impact recovery.There is also the risk that the absence of a consolidation needed to affect your confidence and hinders growth, "reads the text.

The main source of global growth today is the economy of China and other major emerging countries, which share the same concern about the debt problems of old industrialized countries.

In G20, the latter's debt is expected to average 107.7% of this year gross domestic product, against 80.2% in 2007 to the beginning of the crisis, while the forecast for the emerging countries of the group are 37%.

VIOLENCE IN TORONTO

Also according to the draft communique, the G20 should welcome the inflection in a more flexible management of its currency, the yuan, by China, which some hope that it will lead to currency appreciation.

They should also commit to strengthen the soundness of their banks tightening their standards of capitalization.

Germany, France and Britain are determined to push their project for the taxation of financial institutions, which are also U.S. support but is opposed by Canada and several developing countries.

The G20 is ready to leave each country free to impose such a fee to recover the substantial resources committed by states to save their banks from the crisis.

G20 leaders who gathered in Toronto Saturday night for dinner, have four working sessions on the menu this Sunday, including a luncheon before the summit ended around 16:30 (2030 GMT).

The center of economic capital of Canada has been the scene of clashes Saturday between police and anarchist militants dressed in black at the end of anti-G20, which brought together several thousand people generally peaceful. The police reported at least 130 arrests.

Action BP lost nearly 7% Wednesday to the London Stock Exchange after falling to its lowest level in 14 years, investors feared that the British oil giant is forced to raise more funds to finance the cost of oil spill that pollutes the Gulf of Mexico.

BP said it had already spent $ 2.35 billion (1.92 billion euros) to contain the spill.

Meanwhile, five-year CDS BP, financial instruments used by investors to hedge against default risk on the group's debt rose 19 basis points to 555 points, according to Markit data.

Some traders also explain the fall in BP by bad weather looming over the Gulf of Mexico that could complicate the fight against oil spills.

At 9.45 am GMT, BP lost 6.55% to 303 pence in London Stock Exchange.

The recovery should continue at low speed in France by the end of the year, with a growth rebound in the second quarter but remain moderate then provides INSEE.

In his memo on the economy released Wednesday, the Statistical Institute expects a 0.5% of GDP in the second quarter and growing 0.4% in the next two quarters.

For the full year, growth would be 1.4%, in line with the government's forecast and just enough to stabilize unemployment.

The acquired at year end would be +0.6% and should in this case a 0.8% growth in each quarter of 2011 for achieving the government target of 2.5% was calculated INSEE which the forecast is however limited to 2010.

After rising 0.5% in the fourth quarter of 2009, GDP stagnated in the first three months of 2010 (+0.1%), fearing a relapse of the economy even if this figure is likely to be revised upwards on Friday when the national accounts are published in detail.

Entitled "In mid-stream, Note Insee business survey suggests a continuation of the recovery but at a moderate pace and with high uncertainty.

Turbulent waters

"An upturn in global activity was engaged for several quarters but there is still some way to go in this crisis and in waters which may be turbulent," said Sandrine Duchêne, head of the Business cycle, at a press conference.

Two forces are at work in France as in other advanced economies, "she said.On the one hand, the global recovery, but more beneficial to the country heavily exposed to foreign trade such as Germany or Japan, the other the need for fiscal consolidation that has already resulted in the listing Plan rigor.

"The year 2010 is a transition year between recovery and fiscal consolidation," said Sandrine Duchêne.

"In the very short term, the second quarter looks good but there is currently a cap on surveys which is expected a slowdown in activity by the end of the year."

According to INSEE, the attenuation of growth in the second half will not call into question both the positive contributions of the first quarter, namely the beginnings of a revival in business investment and re-creations of net jobs in the commercial sector.

"This trend will continue throughout the year but the pace of recovery will be slow and does not transmit only gradually income households," said Sandrine Duchêne.

In this context and with unemployment still high but stable, Insee sees household consumption stagnated in the second quarter as the first, before rising moderately (0.3%) in the next two quarters.

Demand for business will be limited but the depreciation of the euro will bring them a breath of fresh air by making their exports more competitive.

POSITIVE EFFECT OF THE EURO

In total, according to projections by INSEE, the recent decline of the euro should have a positive impact of 1.6 points on exports this year and 0.5 percentage points on growth that otherwise would therefore was only 0.9%.

Business investment in turn will benefit from improved market opportunities but will remain constrained by production capacity remains under-used, with a rate currently of 76% – ten points below the long-term average.

After eight consecutive quarters of decline, Insee sees the investment by non-financial leave of 0.6% in the second quarter, but he would decline a further 2.0% in total over 2010, following a drop of 7.9% in 2009.

Regarding employment, creation of the 24,000 net new market sectors in the first quarter – after seven quarters of destruction – would be followed by 8,000 others in the second, 4,000 and 15,000 in the third to the fourth, a total gain of 51,000 jobs this year 337,000 after destruction in 2009.

After six quarters of strong growth, the unemployment rate would remain stable for its 9.5% in France (9.9% in the counties overseas), to its highest level since late 1999.

Insee said its forecasts are surrounded by uncertainties. A resurgence of financial stress and / or the impact of measures to reduce the deficit might weigh on growth, since, unlike the depreciation of the euro, if continued, would allow countries Eurozone to benefit more from the dynamism of world trade.

"It is imperative to increase the soundness of the banking system, all G20 countries are convinced", said this morning Christian Noyer, governor of the Bank France, during an interview with The Tribune.

On the slopes of the reforms currently being tested, he explained that "the general philosophy of the reform is to require banks to allocate a larger share of their findings to their own funds, without affecting the distribution of credit, adding that "priority is to complete our work at the end of the year."

However, the governor of the Bank of France was cautious about the actual creation of a tax credit, a project supported by the Franco-German: "This proposed tax is the responsibility of States," he said business daily.For now, the new rules adopted in the context of Basel III are not yet determined, although a number of proposals have been put on the table. "All the rules laid down will not necessarily accepted," said Christian Noyer The Tribune, adding that 'the dosage and timing are not yet established'. One thing is sure: the economic impact on banks will be taken into account.

Credit rating agencies under scrutiny

Furthermore, Christian Noyer considered "incomprehensible" the recent decision of Moody's notes the degrade of Greece speculative grade. "The rating agencies should be alert indicators in judging upstream on the strengths and weaknesses of borrowers.Cause abrupt movements of the market once the problems identified and solutions have been made, is cons-productive, "he has told La Tribune. Before concluding:" Moreover, in the case of Greece we rely more on analysis of the IMF – more aware of the situation – as those of rating agencies.

See also: The financial regulation for Dummies

The British oil giant BP has already spent 1,250 billion dollars trying to contain the oil spill in the Gulf of Mexico, "he said Monday, indicating also be collected Saturday a total of 10,500 barrels after the installation of a funnel flight.

Between 3 and 5 June, BP and 16,600 barrels of oil collected with this new device.

Read also: This bumbling boss of BP
See also: Why BP has it all wrong

The amount advanced by the group does not include $ 360 million promised for the construction of artificial islands to Louisiana, he said.

"The optimization (device) continues and we hope to improve the collection in the coming days, but it will be some days yet before we can evaluate the success of this attempt at containment," BP said in a statement.

BP also said it was too early to quantify the total costs of the oil spill caused by the explosion late April of the platform Deepwater Horizon, in which 11 employees were killed.

The Chinese authorities have allowed a wave of increases in the minimum wage face the discontent of workers illustrated by growing social conflicts, the media reported Friday.

In Beijing, the minimum monthly wage will be raised by 20% to 960 yuan (115 euros) from 1 July, reported the newspaper Global Times. The increase is twice as large as the increase traditionally announced each year (10.02%) from the capital has introduced a minimum wage in 1994, said the English-language daily.

Beijing is one of 30 provinces or municipalities in China have increased the minimum wage or are about to do.After a recent increase, the metropolis of Shanghai (east) offers the highest minimum wage in the country, to 1120 yuan per month, or 134 euros, according to the official.

These increases come as the harsh working conditions of millions of workers in China are subject to debate, at a time when the third world economy with growth in double digits. Ten employees of the Taiwanese group Foxconnse committed suicide in recent months in southern China, apparently victims of high stress at work and a 11th died of exhaustion in another factory of electronic components, in northern China.Foxconn announced Wednesday a wage increase of 30% of its Chinese employees.

In addition, employees of a factory of spare parts of the Japanese manufacturer Honda are on strike demanding better wages last week, crippling the entire production until Friday before obtaining satisfaction with an increase of 24 % of their salaries to bring them to 1,910 yuan (228 euros).

Despite spectacular economic growth, labor compensation has fallen against the wealth created since the beginning of economic reform in China: it accounted for 56.5% of GDP in 1983, but 36.7% in 2005, recently argued a union official.

More than six in ten French (63%) feel negatively action of Nicolas Sarkozy since 2007 on social policy, against 34% positive, according to a CSA poll published Cap Friday, June 4 by the Journalists Association of social information (AJIS) and DomPlus. When they think about the action of the President of the Republic since 2007 in social policy, 29% of the French as "very negative" and 34% "fairly negative", while 3% are "very positive" and 31 % "fairly positive". They have been 3% did not comment.

Read about our investigation: Why Sarkozy's policy is so unpopular

When asked specifically about various fields is in terms of purchasing power that the French seem most critical: More than three quarters (76%) perceive the action of the Head of State as "rather negative", only 18% consider it "somewhat positive".For a majority of French, is also rather negative opinion on the fight against unemployment (68% against 27%), the fight against poverty (69% against 26%), the incentive to work harder (60% cons 36%), dialogue between management and unions (57% against 30%, 13% did not). Concerning the effectiveness of the minimum service in transport during strikes, the action is seen as "rather negative" to 48%, against 40% (12% did not).

About the pension reform, only unions inspire "somewhat confident" a majority of French people (54% against 42% who have "not much confidence"), according to the poll. In contrast, over two thirds (67%) were "not much confidence" in the patronage of the reform, against 26% experiencing more confidence.At 64%, the French have not much confidence in Nicolas Sarkozy to reform, against 32% who tend to trust.

The leftist opposition also inspires rather not trust a majority of French, but to a lesser extent (55% against 38%). Of the decisions taken by the President to deal with the crisis, 49% of French people consider them bad, against 47%. Nearly one in two French (49%) said the French company less united than three years ago, while 37% say "neither more nor less" and 11% supportive.

The survey of the CSA institute and Cap for Ajisai DomPlus and was conducted by telephone 19 and May 20 from a nationally representative sample of 1,000 persons aged 18 years or older, constituted under the quota method.

On June 5, 1947, in a speech at Harvard University, General George C. Marshall announced a program of development aid as the world had ever known. The reconstruction program in European history will keep the name of its author.Spread over four years, resulting in a total of $ 13 billion of loans or donations in cash or in kind: tractors, equipment … is the equivalent of $ 115 billion in 2008 to rebuild Europe at the end of the Second World War.

In other words, not much in terms of the 3600 billion in 2008 for public intervention in World War II and the 700 billion spent during the Vietnam War, calculates Dessertine Philip, director of the Institute of High Finance.

And trifle when compared to the Marshall Plan 700 billion plan Obama in 2008 and 2008 of $ 1.095 trillion (750 billion euros) of the system put in place the euro area and by the IMF to maintain stability currency.