US & World News

The British finance minister George Osborne said on Tuesday the introduction of a tax on the assets of banks operating in the United Kingdom, while France and Germany support this measure and prepare to join, at he said.

According to Osborne, the tax on banks' balance sheets will bring the order of 2 billion pounds (2.4 billion euros) per year when it is applied completely. It is expected to set the tax rate to 0.07% with a discount of 0.04% in 2011.

Mr. Osborne, who presented his first budget since the May 6 election, noted that "the failure of banks has imposed huge costs to the rest of society", and was thus "fair" that they are contributing to the economy. "Some have argued we should wait for every G20 introduce such a tax."I think it is neither fair nor reasonable," he said.

A "fair share to reflect the risk" posed by banks

The minister said that "the French and Germans had joined the United Kingdom today by pledging to introduce a tax" on banks' assets."In a joint statement, he said, our three Governments undertake to ensure that our banks make their fair contribution to reflect the risk they pose."

Published on the website shortly after the British Treasury, the Joint Declaration of the French, British and German banking fees "covers much of the ideas raised by Paris and Berlin yesterday in a letter to Canadian Prime Minister Stephen Harper, G20 a few days in Toronto.

"In light of the agreement within the G20, that the financial sector expected to contribute immediately and substantially to pay for expenses associated with government intervention to rescue the banking system – (…) the French, British German and suggest introducing fees based on assets of banks, "said this particular statement.

"The UK tax is announced today, France will present the details of his in the upcoming budget (and) Germany has announced the general framework of a tax credit in late March and will present the bill to the summer, "recalls the text.

It ensures that those three charges "may differ from one another, to reflect economic conditions and tax systems differ from one country to another, but the level of tax take into account the need ensure an equal level of play "between countries, says he.

"The French, British and German want to see fully implement the ambitious program of financial sector reform, the G20 and they look forward to discussing these proposals further with their international partners in the G20 summit on June 24, concludes the text.

The French president Nicolas Sarkozy and German Chancellor Angela Merkel had written in the same direction on Monday Mr. Harper also requesting that consideration be put in place a tax on financial transactions.

Orange, the mobile arm of France Telecom, has begun discussions with shareholders Meditel second operator in Morocco, to acquire 40% stake in it, reported Saturday the weekly News.

The French-language magazine said that discussions between Orange and owners Meditel, CDG and FinanceCom, have reached an advanced stage.

He added that the entry of French capital Meditel could cost 650 million euros.

A senior officer Meditel declined any comment.No representative of CDG or FinanceCom was immediately available for comment.

"France Telecom confirms interest in the Moroccan market, but could not say more now," said a Reuters spokesman for France Telecom in Paris.

On the occasion of the presentation of its interim results on Thursday, the operator has reaffirmed willingness to conduct "a policy of selective acquisition primarily aimed at doubling the turnover of the group on three to five years in emerging markets (particularly in Africa and the Middle East).

Meditel, opposite the Moroccan market to the former monopoly Morocco Telecom, Vivendi is a shareholder, and INWIë owned conglomerate ONA, lost last year's two shareholders weight: Spain's Telefonica and Portugal Telecom Portugal .

Their holdings, 32.2% each, were sold to private groups and Moroccan FinanceCom CDG, a public investment holding, to just under 900 million euros.

At the time, and CDG FinanceCom had not excluded the possibility of bringing a new round of shareholder if it would increase the value of Meditel.They also considered an introduction Meditel the Casablanca Stock Exchange.

Emirates Telecommunications (Etisalat), unsuccessful candidate for the resumption of the shares of Telefonica and Portugal Telecom, has expressed interest in the Moroccan market.

Accor announced Tuesday an increase of 5.1% of its turnover in the hotel industry in the first half on a comparable basis, driven by the high and mid-range.

The fourth group behind global hotel InterContinental, Marriott and Hilton and Starwood publish its first financial data since the demerger of its business of prepaid services, Edenred, July 2.

The total turnover of the group were up by 6.1%, representing a growth of 4.7% on a comparable basis, to 2.849 million euros.

On the only hotel business, which include brands Ibis, Sofitel and Motel 6 in the U.S., net sales increased 7.5% as reported at 2.723 million.

In the second quarter alone, the organic growth of the hotel was up 8.2% at constant scope and exchange rates.

"In most countries, especially in Europe, the recovery began in the first quarter accelerated in the second quarter, thanks to a favorable base effect," said Accor in a statement.

The group claims to have earned a higher "backed" by its occupancy rate in the upper and mid-range and higher average prices of its main markets, France, Germany and the United Kingdom.

Hotel groups noted an improvement in demand, the slow economic recovery that encourage consumers to resume their journeys.

Marriott International issued last week an increase in profit in the second quarter, benefiting from increased prices of its rooms in North America.

Accor announced the sale in early July Newrest 60% of its business catering on trains of the Compagnie des Wagons-Lits (CWL).

Edenred Monday announced an increase of 4.7% of its turnover in the second quarter, growth of Latin American operations have helped offset a more difficult economic environment in Europe.

The shares closed up 0.8% to 23.1850 euros, giving a market capitalization of 5.28 billion. It fell 39% since the beginning of the year.

The International Monetary Fund (IMF) raised its forecast for global growth in 2010, citing the strength of the economies in Asia and rising private demand in the U.S., while warning against the risks inherent in the crisis sovereign debt of the euro area.

The downside risks have increased significantly, mainly because of turmoil in financial markets again since the beginning of the crisis of sovereign debt, but it is unlikely that we are seeing a recession "W", says IMF .

It carries its global growth forecast to 4.6%, while it predicted 4.2% in April, but left unchanged at 4.3% for 2011.

"In our baseline forecast, there is nothing like a recession in 'W'," said Olivier Blanchard, chief economist of the IMF during the presentation of the document.

"In this context, the new forecast is based on the implementation of measures to rebuild confidence and stability, particularly in the euro area."

Olivier Blanchard said that the statement of results of resistance testing was a step towards greater transparency while stressing the need for a return of public spending to sustainable levels.

Austerity PESERA IN GREAT BRITAIN

Under one scenario considered by the IMF, based on the assumption that the consequences of the crisis of European sovereign debt as violent as those of the collapse of Lehman Brothers, the global GDP growth would be reduced 1.5 percentage point in 2011.

The continuing fragility of the U.S. labor markets and housing problems of the euro area and the slowdown in manufacturing activity in Asia have raised many questions among investors who wonder about the possibility of a sudden slowdown in growth for the remainder of the year.

The IMF lowered its growth forecast Thursday for 2011 in Great Britain, Canada, in the euro area, emerging economies and Japan.

According to IMF forecasts, GDP growth in the euro zone will be limited to 1% this year, according to what it expected in April, but it should stand at 1.3% in 2011, 0.2 percentage point less than what was previously announced.

The U.S. economy should she enroll at 3.3% in 2010, against an estimate of 3.1% three months ago, and 2.9% in 2011, against 2.6%.

The most brutal review announced Thursday is to the liabilities of the UK whose new government has begun a course of austerity that may affect growth.

The IMF expects UK growth of 1.2% in 2010, 0.1 percentage point lower than April and 2.1% in 2011, down 0.4 percentage points.

Retail sales in the euro area rebounded in May after heavy fall in April, despite the credit crunch which has affected consumer confidence, show statistics released Monday by Eurostat.

Retail sales in the 16 countries adopting the single currency rose 0.2% after a decline of 0.9% the previous month (revised from -1.2%), but show an unexpected increase 0.3% over one year, after -0.5% (revised from -1.5%) recorded in April.

Economists polled by Reuters had forecast an average increase of 0.4% a month to month and a decline of 0.3% over one year.

Eurostat said that sales of food, beverages and tobacco rose 0.2% in May and 0.3% compared to last year.

For non-food products, the increase was 0.4% compared to April and 1.0% over one year.

Bank of China, one of China's four largest banks, announced its intention to undertake a capital increase, the amount could reach 60 billion yuan (7.0 billion euros).

The bank offers to shareholders to obtain up to 1.1 Right to subscribe for 10 shares held.

"All the products of this rights issue (…) should enhance the bank's balance sheet and improve the ratio of financial solvency of the bank," she says in a statement.

This announcement does not specify whether the parent Public Bank, Central Huijin, subscribe to this offer.

In Hong Kong, under the BoC was trading at 3.97 Hong Kong dollars Wednesday, and he treated at 3.4 yuan in Shanghai on Friday before the suspension of trading.

MASSIVE CAPITAL RAISING

The bank, which raised 4.7 billion euros last month by issuing convertible bonds in Shanghai, is looking like its main rival China to strengthen its balance sheet and to comply with the stringent requirements of regulators in terms of ratios solvency.

Agricultural Bank of China (AGBANK), China's third largest bank, has launched its next capital increase of almost 16 billion euros via an IPO in Shanghai and Hong Kong.

According to local press, Chinese authorities have given their approval to raise capital totaling 287 billion yuan (33.6 billion euros) for the four largest banks.

In recent months, Industrial and Commercial Bank of China and China Construction Bank have also announced increases in capital.

Bank of Communications, the fifth-largest bank, raised its next 2.0 billion euros in Shanghai.

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 euro fell below $ 1.20 and the stock markets have plunged into the red on Friday, sealed by disappointing figures for U.S. employment and the fear of contagion from the euro area. Trained in turmoil, oil lost almost $ 3: Towards 1600 GMT Brent North Sea yielded 2.83 dollars to 72.58 dollars a barrel.

In closing, the London Stock Exchange closed down 1.63%, 2.86% Paris, Frankfurt 1.91%, 3.80% Madrid, Milan and Athens 3.79% 5.03 %. And the Dow Jones in New York lost 2.3% to 1630 GMT.

In the U.S., unemployment fell in May to 9.7%, but the net new jobs (431,000) were worse than the 500,000 expected. The markets also remained concerned about the economic slump in Europe, which has pushed the euro to below $ 1.20 for the first time since March 2006.Around 3:35 p.m. GMT, the dollar posted 1.1993.

Even before the publication of these figures, the traders have fled risky investments and sought refuge with values that are safer as the U.S. dollar and Swiss franc."After a few days away from the spotlight, the debt crisis in Europe is back on the front of the stage," noted and David Morrison, an analyst at GFT, citing the risks of contagion from the crisis in Europe outside the euro area to Hungary and Romania.

In Hungary, alarmist statements from officials of the ruling on the country's economic situation has undermined the financial credibility of a State which is to avoid bankruptcy, under infusion of 20 billion euros available by the International Monetary Fund (IMF), the European Union (EU) and European Central Bank (ECB) since autumn 2008.

But it seems that the euro has also suffered from About … Fillon.Asked at a press briefing with his Canadian counterpart Stephen Harper on slide in the single currency, Prime Minister launched it saw "good news in that the parity between the euro and the dollar."

Media outlets have economic Anglophone immediately heard "parity" ("parity" in English) in its narrow sense of perfect equality. They have deduced that the head of government called the equivalence of his wishes: 1 euro equals one dollar. An avalanche of "urgent" then falls among their clients.

As a result, operators of foreign exchange markets feel encouraged to sell the euro.Within minutes, the single currency reached its lowest level in four years, to below $ 1.20.

But the following remarks by François Fillon said that he wanted "parity" in its other sense, the dictionary defines as "exchange rate of one currency against another."

"For years, the President of the Republic, we complain that this parity between the euro and the dollar does not reflect the reality of our economies and hinders exports. I am not worried about the current parity between the euro and the dollar, "he saidFillon.

"There is no doubt that these ideas have been down the euro, even though they occurred" after two little incidents "in the markets, the rise of the Swiss franc against the euro and rumors exposure to a European bank to derivatives, according to David Deddouche, currency strategist at Societe Generale.

Realizing the mistake, Matignon responds quickly: the entourage of the Prime Minister informed the reporters that "by parity, he meant + + level of the euro against the dollar." But the damage is done. "This correction, no one has seen," said David Deddouche.

However, the decline of the euro is really good news: see the video, the comments of Beatrice Mathieu Prediction Center Expansion.