US & World News

Volvo reported Wednesday a 4% drop in shipments from trucks in April from a year earlier, sluggish demand in Europe and South America have overshadowed ; a strong recovery in North America.

The second largest global industry saw its shipments fall by 22% in Europe, its biggest market, while increasing by 39% in North America.

The industry is facing hard times in Europe, with widespread debt crisis, but also in Brazil, the first South American market, where demand is suffering from new rules on emissions.

Deliveries from Volvo in South America fell 30% while they increased by 9% in Asia. 

The Volvo share fell by 1.9% to 82.40 Swedish kronor (9.02 euros) to 8:35 GMT, while the benchmark index of the Stockholm Stock Exchange yielded 0.84%.

Volvo, which manufactures trucks under the brand name but also under names Eicher, Mack, Renault Trucks and UD, had raised its annual targets for Europe in late April, saying anticipate an increase in production over the coming months.

The band, which rivals the industry leader Daimler, said Wednesday that its production would increase slightly in his division in the second quarter and Renault for its Volvo brand in the third.

Volvo expects a contraction of the European market for heavy trucks to 230,000 vehicles this year, against 242,400 in 2011.

The priority given by the European Union to austerity should not be questioned even if the means of stimulating growth are in the focus of next week, has Monday said the German finance minister, Wolfgang Schäuble.

"Fiscal consolidation is not only necessary but is necessary for a specific purpose: to generate sustainable growth, which is the best way to generate employment" , he said during a joint press conference with the Spanish Minister of Economy, Luis de Guindos.

"The economic and fiscal consolidation is the first condition. If we now speak of growth, we must not understand this as a change of course. It would be wrong. Priority (for austerity) must remain, "he added, before holding that Spain was on track

… Referring …… French presidential election, he felt that his result would not call into question the European fiscal pact

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Societe Generale has crossed the threshold of 5% stake in Vivendi, becoming with a participation of 7.86% the largest shareholder in the group of media and communications confronted with rumors, dice ; menties, decommissioning.

This rise of the French bank, announced Friday by an opinion of the Financial Markets Authority (AMF), comes as the businessman Vincent Bollore could rise, according a source familiar with the matter, up 5% stake in Vivendi against 1% currently.

According to the AMF, Societe Generale said to have crossed over on April 20 the threshold of 5% of share capital and voting rights of Vivendi and Vivendi hold 98,045,823 or 7.86% of share capital and voting rights. 

This total includes a participation of 5.25% effective in custody and the balance by assimilation.

The bank was not immediately available for comment on whether share purchases had been made for herself or on behalf of a client.

Bollore announced in September 2011 a proposed sale to Vivendi of free TV channels Direct 8 Direct and Star in exchange for remuneration in Vivendi shares up of 22.4 million shares.

The source familiar with the matter, Bolloré could reach 5% stake in Vivendi by the combined effect of the implementation of this agreement and new purchases of securities on the market. 

Citing people familiar with the matter, the Bloomberg news agency reported Wednesday that the conglomerate was considering an overhaul of its structure that could lead to a dismantling of the group, which was denied by Vivendi.

An amount that includes the 240 billion aid from Europe and the IMF, 100 billion debt erased by private creditors, and 40 billion euros of EU funding. In other words, Greek 33,600 euros per capita. Here, anti-austerity protesters in Parliament in Athens on 7 February 2012.

The assistance provided to Greece to prevent it from falling into bankruptcy amounted to a total of 380 billion euros in the form of loans, are injected directly and debts erased, said Wednesday the European Commission in a statement.

This includes the 40 billion euros of EU funding in 2007-2013 for Greece. In addition, there are 100 billion euros of debt that the private sector has agreed to remove and 240 billion euros of state aid provided by the EU and the International Monetary Fund. This corresponds to 33,600 euros per capita Greek, and 177% of gross domestic product of Greece, says the European Commission, who made a point Wednesday on its proposals to boost growth in the country.

Brussels reiterated its plans to use European funds to help support the Greek SMEs and youth employment. The Commission has 4 billion euros to help businesses. She also wants to focus on better control of public finances and a recapitalization of banks to support lending to individuals and businesses, particularly SMEs.

The Commission has a mission of experts ("Task Force") which together with the Greek authorities to implement the reforms necessary to resolve the crisis. Around the task force, member countries of the Union offer their expertise to help Athens to complete his reforms.

The blacklist of tax havens in 2012 was reduced to a trickle, from 18 to 8 members this year. The government is attacked for its laxity. The headquarters of the Cayman National Bank in George Town. The Cayman Islands belong to the core of tax havens.

The list of states considered by France as uncooperative in terms of transparency and exchange of tax information has been updated for 2012.

Surprised, she has been drastically reduced: exactly eleven states have been removed (Anguilla, Belize, Costa Rica, Dominica, Grenada, Cook Islands, Islands and Caicos Turkey, Liberia, Oman, Panama, Saint Vincent and the Grenadines have been removed from this list) for a single added (Bostwana). Among the endless extras, we can see Brunei, Marshall Islands, Montserrat, Nauru, Niue Island, or the Philippines.  

In total, in less then ten states listed on French blacklist of tax havens. The withdrawal was decided, either because these countries have concluded with France a bilateral agreement to exchange any information necessary for the application of their tax law, or in reciprocal because the Global Forum on Transparency and Exchange of Information in Tax Matters (OECD) has removed himself from the list.

Sometimes this can lead to some contradictions, as in the case of Costa Rica came out of the French list, even as the World Forum reminded last week that "the law might hinder the effectiveness of exchange of information ".

"A sustained vigilance"

Asked about this issue by Nicole Bricq, general rapporteur of the Finance Committee of the High Assembly, Valérie Pécresse has ensured that the states concerned were subject to sustained vigilance. "The challenge for the coming years was to put the agreements under vigilance" has justified the Minister of Budget. Before insisting: "I think we should be very firm on the implementation of agreements." But Valérie Pécresse admits, some countries with which France has signed agreements are still experiencing "pain points" in the image of Switzerland. Recently a delegation of Bercy was sent to Geneva to say that the implementation of the agreements was not satisfactory.

According to figures released by the Ministry, 77 000 French bank accounts abroad were identified in 2010, three times more than in 2007. Ms. Pécresse also said that tax audits had reported 16 billion euros in 2010, "1 billion more than in 2009," did she congratulated.

An enthusiasm not shared advocates the fight against tax havens. According to the NGO CCFD-Terre Solidaire (Catholic Committee against Hunger and for Development), at least 20 billion euros each year would continue to escape the budget of the French government because of tax evasion. In a report last October, the NGO also points out that according to the Tax Justice Network, it is not 8 but 54 states in the world who cultivate a "high degree of financial opacity", nearly a quarter countries of the planet should be placed on the gray or black list.

Specifically, the inclusion on the blacklist French is not trivial for states. For businesses located there are heavily taxed by France. The rate of withholding tax on passive income (dividends, interest, royalties) are 50% when they are poured into an entity present in the territory uncooperative. In addition, certain provisions of the parent-subsidiary regime are removed as the exemption of 95% of corporation tax on dividends paid by a subsidiary to its parent.

The OECD recommends that developed countries cut their debt to GDP ratio to 50% in the coming decades to cope with possible shocks, in a study published Thursday.

Most of these countries have much higher ratios, significantly aggravated by the recent crisis, the OECD average in excess of 100% and 200% Japan.

For comparison, the French public debt amounted to 1.717 billion euros at end 2011, nearly 86% of GDP.

"Cleaning up public finances to cope with the consequences of the crisis, the underlying weaknesses as well as future pressures on public spending is a major challenge for many countries", e described the Organization for Economic Cooperation and Development. 

"It appears there could be an important and lasting fiscal tightening in almost all countries to reduce debt to prudent levels," she says, adding: "Given the weak economy World, commissioning Å? work of a broad program of fiscal restraint could be particularly costly. "

The Indian airline Kingfisher Airlines could be stripped of his license for non compliance with safety standards and financial viability, said Tuesday the Indian Minister of Aviation, Ajit Singh.

The company in financial difficulty, does not meet its turnaround plan, said the minister who was speaking to reporters.

Kingfisher Airlines is now operating more than 18 aircraft, barely more than a quarter of its fleet.

The company, whose debt stands at $ 1.3 billion (995 million), could file for bankruptcy if banks continue to refuse to lend money for its operations rations from day to day. 

A massive decrease in thefts has reduced the turnover of the group and the carrier has almost no money to defray the salaries and meet its tax liabilities and its airport charges.

The chairman of Kingfisher, Vijay Mallya, will meet the civil aviation authorities Tuesday or Wednesday to discuss the Group's recovery, the minister added.

According to data from Airbus, current orders Kingfisher deal 32 single-aisle A320 Family, 20 A330s, five long-haul A350 and five A380 super-jumbo.

The gross domestic product (GDP) of Finland increased by 1.4% yoy in the fourth quarter of 2011, after an increase (revised) 3.3% in the third I, Statistics Finland said on Friday (SF).

Over the whole of 2011, GDP in one of four countries in the euro area still have a "AAA" from the three major rating agencies has advanced 2.9%.

Volksbank Austrian bank said Monday it would be partially nationalized and its minority shareholders could lose up to 70% of the value of their participation.

The majority of the capital should remain controlled by regional banks, which will 230 million euros on the table while the state plans to provide at least 250 million.

A financial source said that the state would recover the direct participation of over 40% in Volksbanken after the recapitalization.

The capital of the bank is currently owned 60.8% by sixty Austrian credit institutions, to 23.4% by the German DZ Bank, to 9.4 by the insurer Ergo% and 5.7% by Raiffeisen Zentralbank. 

Volksbanken had received in 2009 one billion euros from the state but failed to meet its deadlines for repayments on time, providing the government Austria the opportunity to turn his loan into securities.

The Austrian Minister of Finance, Maria Fekter, however, said they wanted to avoid this scenario, Vienna has already had to nationalize Kommunalkredit and Hypo Group Alpe Adria since the outbreak of the financial crisis .

The promise made yesterday by Nicolas Sarkozy to ban hats and retreats, golden parachutes has a deja vu. The candidate of 2007 there was already risky. The President also, during his tenure. But from words to action, there is a gap … Nicolas Sarkozy Golden Parachute

What he said in 2007: At the time, the future president described the golden parachutes "detestable practices" and announced their removal "summer 2007" in the name of "values ​​that are not (his) ".

What he did: It is clear that five years later the "golden parachutes" still exist. Certainly, there have been few measures of supervision. But they were sometimes taken by the UMP majority against the Government's view.

In August 2007, the TEPA law requires and golden parachutes are subject to a decision of the Board, and is linked to performance criteria. But the announced removal is not requested. In 2008, during the speech of Toulon, the head of state announced that executive compensation "must be indexed to the actual economic performance of the company. They should not be eligible for a golden parachute when they committed mistakes or put their company in difficulty ". No law follows.

In 2009, following the scandal of the golden parachute of the former CEO of Valeo and stock options of Societe Generale, Nicolas Sarkozy puts it: "There should no longer be any golden parachutes, it should not be any bonuses, distribution of free shares or stock options in a company that receives government assistance, which implements a social pronounced or that relies heavily on partial unemployment. " A decree to this effect was taken in April. But this prohibition applies only to companies that received aid from the state (banking and automobile sectors) until end 2010. And it is not retroactive.

Finally, 21 October 2010, MEPs adopted an amendment during consideration of the budget which provides that golden parachutes may not exceed 'twice the highest severance benefits, provided in case of dismissal by the agreements business or industry. " Baroin, then budget minister, has yet attempted to oppose it. He states that "the government has already done much" and argues that "these elements of compensation (that) feed business competitiveness to attract the best subjects."

Pensions hats

Unlike the golden parachutes, Nicolas Sarkozy has never announced the elimination of pensions hats. But he has often denounced the abuse. And his government has taken steps to harden their taxation. That said, in February 2010, matter in full Proglio, Luc Chatel, a spokesman of the government has not asserted that the least critical of retired boss of Veolia's hat fell within "the hard". He even tried to justify it. And as for golden parachutes, the government has sometimes sought to oppose regulatory ambitions of its majority

What he did:

The decree of 20 April 2009 prohibits hats retreats for executives of companies that have benefited from state assistance, but this provision shall be valid only until the end of 2010. Today, they are perfectly legal.

In October 2009, MEPs in the committee adopt a reform of the governing pensions hats … but waive the government's request. Eric Woerth, budget minister then, justifies its position by the fact that this system affects many thousands of frames and not only the great leaders. The government settle a code of ethics established by the employers.

In October 2010, MPs return to the fray and adopt a law to limit pensions hats. The latter will no longer exceed 30% of the remuneration of the last fiscal year. Unusually, the majority supported the opposition. The government opposes it but will eventually bow, relying on "wisdom" of the assembly.

Taxation has for its part, was weighed down twice in 2010 (particularly in the context of pension reform). And surtax has once again undergo a hardening at the end of last year with the introduction of a progressive scale with three slices according to the amount (7%, 14% or 21%) against two previously (6 % or 12%).

The high wages

What he said

Wednesday night on France 2: "From now on, the remuneration of top leaders will be voted on not by the board, where typically there are many friends, but by the general meeting of shareholders. (They) will be published in the legal documents to be published by the company "

What he has said: ……. In June 2006

. at Agen: "At the very least, is that the leaders of large listed companies assume their remuneration to their employees, their shareholders, and that, therefore, remuneration of each officer is not secretly fixed in the closed session of the Board but publicly endorsed for each of them by the general meeting of shareholders, and, of course, nominally published in the annual report. " What he did

:

Actually, not much thing, except the temporary ban on stock options and bonus shares for companies aided by the State until the end of 2010. Otherwise, the government has clearly shown its refusal to regulate comprehensively Wages and Salaries Francois Fillon saying, still in 2009, such a move would have "no real technical, economic, unless you want naturally regulate all remuneration ". And rely on the wisdom of big business and its ethics code. The measures proposed Wednesday to stay elsewhere in this lineage. Existing in the Anglo-Saxon voting remuneration by the general meeting of shareholders does not guarantee the end of excessive compensation. And the principle of transparency on executive compensation has already been included in the New Economic Regulations Act of 2001.