US & World News

America Movil, the phone giant owned by Mexican billionaire Carlos Slim, said Thursday it will buy the California-Simple Mobile to expand its market presence ; American.

This is the second external expansion of the group within days.

Simple Mobile is a mobile virtual network operator, with more than one million subscribers. In March, the number of subscribers of Tracfone, the U.S. subsidiary of America Movil, reached just over 20 million.

America Movil, the leading provider of mobile services in Latin America, announced Tuesday its intention to increase its stake in Dutch KPN to 28%, thus taking hold in Europe as part of a transaction of more than 2.5 billion euros.

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France has awarded Thursday 7.43 billion euros of long-term debt at better terms than in previous auctions, three days before the second round of presidential elections .

The Agence France Trésor (AFT) has issued an amount corresponding to the top of the announced range (6.5 to 7.5 billion euros).

Three of the four lines of Treasury bonds (OATs) offered the 4.25% in October 2017, the 3.25% in October 2021, the 3.0% in April 2022 (refer to the OAT ence to 10 years), interest rates have declined from previous auctions.

The weighted average rate of the OAT 6.0% in October 2025 stood at 3.31%. The AFT, which manages the state debt, does not provide a comparison, the bond not been available for many months.

The rate of OAT reference (benchmark) 10-year stood at 2.96% against 2.98% in April. After the auction, the rate fell further in the secondary market at 2.93%, the yield spread with the German Bund at 10 years, the euro area benchmark, contracting six basis points to 133.

Auctions of France and that of Spain, now the focus of investor concerns, helped ease the situation in the market for government bonds in the euro area.

The Spanish Treasury has placed 2.5 billion euros of bonds in three to five years – the maximum referred – but unlike AFT, he had to concede a higher risk premium than in previous auctions.

Overall demand for OAT reached 18.64 billion euros, providing a comfortable coverage ratio. 

"It seems that the relative uncertainty of the presidential election has not weighed heavily. They managed to raise the maximum referred to lower rates and with a coverage ratio decent, "said John Davies, rates strategist at WestLB.

"Holland has softened his speech on the new fiscal pact (…) and said he just wanted to add stimulus to growth," he says, adding that the positions of President of the European Central Bank Mario Draghi and Chancellor Angela Merkel have also evolved.

"We realize that the pure austerity can not walk. The conflict that the market feared when Holland came to power might not be as insurmountable as we thought at first sight, "said John Davies

…. ….. "Solid as usual, decent rates. Where is the political risk? "Said Peter Chatwell, rates strategist at Credit Agricole CIB in London, about the French auction

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The new futures contract on OAT, due in June, hit a high (126.75) since its launch on April 16 on Eurex, the market for die riveted to the Frankfurt Stock Exchange

Around 12:30, he was earning 57 cents to 126.69 in a volume of more than 11,000 contracts. Open positions reached 43,223 against 58,000 batches on Italian BTP future, launched in 2009 by Eurex.

The Bund future, benchmark futures contracts in the euro zone fell by 14 cents to 141.59 in a volume of more than 202,000 contracts. Positions on maturity in June exceeded the 13 million lots.

The public deficit of Greece for 2011 amounted to 19.6 billion euros, or 9.1% of GDP. The public debt reached 355.6 billion euros, to 165.3% of GDP. The Standard & Poor's downgraded the long-term CC and C short term rating of Greece to SD (Selective Default). (REUTERS / Pascal Rossignol)

The public deficit of Greece for 2011 "is estimated at 9.1% of GDP, to 19.6 billion euros", said Monday the Greek Statistical Authority (Elstat) in a statement. "The Greek government debt for 2011 reached 355.6 billion euros, to 165.3% of GDP", according to this text. These figures are very close to the forecast contained in the budget of the country voted in December, which foresaw a deficit of 9% of GDP, against 10.6% in 2010 and a debt of 161.7% of GDP, against 144, 9% in 2010.  

"Greece has managed to reduce by two years the general government deficit of 6.5 points (…), which we will soon have primary surpluses," said Finance Minister Philippos Sahinidis, quoted in a statement. Mr. Sahinidis predicted in March that the deficit would amount to around 9.2% of GDP. First country affected by the debt crisis, Greece is subject to a strict austerity program to consolidate its public finances. This program, dictated by its creditors EU and IMF, was agreed in exchange for international loans and a debt restructuring that enabled the country in March, erasing about 105 billion euros.

"The need for continued effort to restore fiscal and financial recovery is the goal of next year (…), which will also benefit the Greeks" to justify "their sacrifices," said Mr. Sahinidis. According to budget estimates, the country targets a deficit of 7% in 2012 and a reduction of its debt to 145.5% of GDP after the restructuring. The Minister visited during the weekend in Washington, where he met with the Executive Director of the IMF, Christine Lagarde, on the sidelines of the meeting of the General Assembly of the organization and a ministers' meeting G20 finance.

"The discussion with Ms. Lagarde was held in a positive atmosphere. We have addressed the issue of recapitalization of banks in Greece after the successful restructuring of debt of the country and the progress made in implementing the sanitation program of the economy, "said Mr. Sahinidis, quoted by the Greek news agency, Ana (semi-official). "Today there is greater optimism about the country's exit from the crisis," added the Minister.

Small and medium businesses, entrepreneurs and self-family businesses, which account for most of the economic fabric of the country, paying a heavy price for the Greek crisis. The European Commission is trying to address the funding problems they suffer. In Greece, six out of ten SMEs have seen their incomes decline in 2011.

Up to a thousand individual companies will put the key under the door every week in Greece in the first half of 2012 due to the serious crisis that is sinking the country, said Friday the European Commission, which seeks to root the problem.  

"Greece is facing an economic crisis and social crisis which is reflected in the situation of small and medium enterprises: six out of ten companies have seen their incomes decline in 2011 and 150,000 jobs were lost," said the Commission in a press on the sidelines of the visit to Athens Friday the European Commissioner for Industry, Antonio Tajani. "It is estimated that during the first half of 2012, up to 1,000 small businesses have closed every week," said the statement, which does not provide estimates on the number of companies created in parallel.

The Commission therefore calls for increased aid to these companies, self-entrepreneurs and family businesses, which form the bulk of the Greek economic fabric. Since last September, the European Union through its Task Force for Greece including trying to find ways to overcome the credit crunch affecting SMEs, banks, deficit, cut off from markets and dependent on the ECB, having suspended loans. In March, a special guarantee fund, with 500 million euros, was created by the EU to promote through the European Investment Bank lending to SMEs up to a billion euros.

According to the Commission, in 2010, Greece had 742,600 very small businesses, employing a total of 2.512 million employees, over 85% of total employment in the country, a record level in the EU. These structures produce 35.3% of the value added of the country against 21.8% on average in the EU. With 14% of employees on average in Greece, against 33% in the rest of the EU, large companies they create 28% of the value added, highlighting the low productivity of small businesses in Greece, the Commission added.

Deficit to around 6.4 billion euros in February, the balance of foreign trade has suffered because of the cold spell which caused an increase in energy purchases. Customs estimate that exports have benefited from "buoyant manufacturing sales".

The trade deficit widened substantially France in February compared with the previous month, reaching 6.398 billion euros, Customs said Friday. "In February, the surge in imports is partly attributable to energy purchases related to the cold wave, which leads to relativize the rising deficit to -6.398 billion euros, after -5593000000 in January," said Customs in a statement.  

"The cold wave that hit France and implementation of maintenance work on three French refineries led to a sharp surge in energy supply (electricity and refined petroleum products)", said the Customs. Imports amounted to 43.553 billion euros and exports 37.155 billion when adjusted for seasonal variations and the number of working days.

Exports have benefited from "buoyant manufacturing sales, while those of agricultural products and military equipment contract sharply again," commented Customs. Exports of transport equipment have found "their best", due to large supplies of satellites and a recovery in exports of motor vehicles.  

Dynamic exports to Russia and the Middle East

Customs also noted "the good performance of electronic and electrical equipment and metal products (oil and nuclear industries)." By region, exports remained nearly stable to the countries of the European Union but have been "particularly strong" to Europe outside the EU (deliveries of parts of satellites to Russia) and the Near and Middle East (aeronautics and industrial equipment). In contrast, sales to America have been reduced (fuel, after a peak in January, and chemicals).

Import side, in addition to the surge in purchases of energy products, Customs stressed that "the level of aircraft acquisitions to Germany is also occasionally very high." "Import growth also reflects the continued strength of metals purchases, pharmaceuticals, industrial machinery, household appliances and electrical products and automotive industry," the statement said.

Regions, in February, increased purchases from the EU has accelerated: from Germany for the aerospace, Spain, Belgium and Sweden for energy products. Imports also increased since the rest of Europe (Switzerland for electricity and the pharmacy, Russia for natural hydrocarbons and refined products), but shrank from the Middle East. The deficit of 12 months completed end of February stood at 70.051 billion euros. The negative balance record set by France in 2011 was also again revised up to 70.437 billion, after a first revision to 70.104 billion euros on 8 March.

Of the 35 billion budgeted in 2010, 25 billion has been spent on 880 projects ranging from education to digital through aviation. It is too early to measure the impact of these investments on the economy. President of the Republic, Nicolas Sarkozy, has held 27 June 2011 at the Elysee a press conference on the big loan.

In March 2010, financial storm, the government launched the national loan to support the economy: the key to an envelope of 35 billion euros to finance research and innovation. Two years later, the device has already helped to select and provide funding to 880 projects on 3,000 proposals received.  

"Today it is 25 billion spent, but in a few days, there will be 27 billion," says Alain Juppe, who was with Michel Rocard, co-chairman of the Supervisory Commission and Great Loan Rene Ricol, Commissioner General investment, a press conference-record March 20.

€ 6 billion for education

Among the 880 projects already selected, higher education is carving the lion's share. 8 and excellence initiatives, designed to bring out the poles leading academics, have been funded for more than 6 billion euros. In addition, eight technology research institutes combining private and public research have received a total of 2 billion.  

In industry, it is aviation, and in this case EADS, with its two subsidiaries Airbus and Eurocopter, which has hit the jackpot: € 1.4 billion for two demonstrators, one of composite airplane, another helicopter of the future. The banking industry, announced in February by Nicolas Sarkozy, should also benefit from a contribution of one billion euros through the big loan.

In sustainable development and the digital economy, the budget allocated to the various projects are less important. They concern, for the first, low-carbon or renewable energies, for the second, the digitization of content, cloud computing, e-health or e-education.

No doubt, the teams have carbureted big loan. They still have two new programs announced yesterday university hospital oncology in Ile de France and Toulouse. But it is still early to assess the impact of these investments for the future of the economy and the role of France in international competition.

The net job creation show an increase of 25% in February. Almost all sectors involved in the upturn. Employees of General Motors in the United States

Hiring in the private sector has greatly accelerated in the United States in February, according to the monthly survey on employment of the consulting firm HR ADP released Wednesday. Private companies have created that month 216,000 more jobs than they destroyed, ADP says in a statement

The balance of hires, adjusted for seasonal variations, appears and up 25% from January and very close to that given to the median estimate of analysts (218,000 net job creation).

ADP has revised upward its estimate of 2% of hires in the previous month, to 173,000. "The increase in employment [... remained] solid "in February, and" almost all sectors of the economy created jobs, "writes ADP, noting that" the average monthly hires totaled 200,000 over the past five months "…. According to the survey

….. ADP, February was the twenty-fifth consecutive monthly rise of private employment in the United States

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European shares ended sharply up Thursday, supported by jobless claims near their lowest in four years in the U.S. and the new massive injection of liquidity from the European Central Bank (ECB) yesterday.

The CAC 40 index closed up 1.37% to 3499.73 points, new peak of year, having stumbled in the afternoon against the bar psychological 3,500 points. London took 1.02%, Frankfurt and Milan 1.25% 2.93%. The pan-European Euro Stoxx 50 index has been 1.45%.

The increase was particularly driven by the banking sector, which jumped 1.85% after the sharp decline in borrowing costs of Spain and Italy on the market ; s bond.

Other U.S. indicators have yet been considered disappointing, including the ISM manufacturing index, which signals an unexpected slowdown in growth in industry in February, and spending construction, which fell against all odds in January for the first time in six months.

At the brink, the euro area has again died Tuesday morning at the fire that threatened to bring Greece but the road is still long and bumpy before the country only emerges from two years of an unprecedented crisis.

Under the terms of the agreement reached shortly before 4:00 Tuesday and after thirteen hours of negotiations, the Greek debt will be reduced to 120.5% of GDP by 2020 through a new public loan program of 130 billion euros and a restructuring of debt held by private creditors.

They have finally agreed to a 53.5% discount on their obligations through a share swap that will erase more than 100 billion Greek debt. 

The European Central Bank and national central banks in the euro area also participate in the plan by giving up some profits on Greek bonds they hold.

"We have reached an agreement on a new scale for Greece and a private sector that will lead to a significant reduction of the Greek debt (…) to ensure the future of Greece in the euro area, "said President of the Eurogroup, Jean-Claude Juncker, after the meeting.

The euro jumped by about half a cent against the dollar after the announcement of this agreement by Reuters. 

ATHENS UNDER SURVEILLANCE

The restructuring of the Greek debt held by private creditors will commit this week, said Greek finance minister, Evangelos Venizelos.

It is expected to close in early March, when the Greek authorities should also have implemented a list of priority measures in the program if they want to get the first disbursement.

These public funds are needed to Athens could repay 14.5 billion euros of bonds maturing on March 20.

Troika EU-IMF-ECB, which oversees the implementation of reforms and conducts quarterly reports will be further strengthened and its resources increased. 

Under the second bailout, the European Commission will soon send dozens of permanent inspectors in Athens to ensure the smooth running of the technical program and monitor the implementation .

This presence on Greek soil will be accompanied by the creation of a special account to process a priority debt repayments Greek, whose principle is enshrined in the constitution within two months.

NO MIRACLE CURE

This agreement multistage was made necessary by the state of Greek public finances as they appeared in a confidential report prepared by the EU, the Central Europe ; enemies and the International Monetary Fund and obtained by Reuters. 

The document also shows that in case of slippage in reforms introduced in Athens or in terms of economy, Greece's debt could reach 160% in 2020, about his current level.

The new aid package will not be a miracle cure. The Greek economy shrank by 7% annual rate in the last quarter of 2011, more than expected, and the new austerity measures would further exacerbate the situation.

Diplomats and economists do not expect this new bailout plan that solves all economic problems overnight, Greek and many believe it will take at least ten years or more for fulfill this task.

Wall Street is hesitant to open Thursday, the fears generated by a warning from Moody's on Banks are offset by good U.S. statistics of the day.

In early trade, the Dow Jones gained 0.15% to 12,800.44 points. The Standard & Poor's lost 0.02% to 1,342.91 points while the Nasdaq composite yield 0.06% to 2914.08 points.

Moody's warned on Thursday that it could lower the credit ratings of 17 major global banks and 114 financial institutions in Europe, reflecting the impact of the crisis of European sovereign debt on the financial system.

The KBW bank index lost 0.27%. The S & P financials yields 0.2%.

The weekly jobless claims fell against all odds in the United States during the week to February 11, to 348,000, or a low of nearly four years, 361,000 against revised) the previous week, said Thursday the Labor Department.

The number of housing starts rose more than expected in January, thanks to a sharp rise in rental housing projects, which raised hopes that the real estate sector, there is little time still devastated, finally brings its contribution to growth. 

The producer prices rose 0.1% in January in the U.S., due to lower prices in the food and energy, but the prices of staples have risen twice more than expected, according to figures released Thursday by the Labor Department.

General Motors on Thursday posted a profit below expectations for the fourth quarter of 2011, the positive effect related to the results achieved in North America have been offset by a weaker performance overseas.

The action, however, earns 4.9% to 26.16 dollars.