The Top News

Caisse des Depots (CDC) has designated Monday's Deputy Director General Antoine Gosset-Grainville for the interim Augustin de Romanet until the e presidential election.

The mandate of Augustin de Romanet, CEO of the public institution since 2007, expires on March 7. President Nicolas Sarkozy had warned earlier this year that he would take no appointment as head of public institutions play a vital role in economic and social policy of the government before the presidential election of April-May

"Augustin de Romanet today informed its Executive Committee and staff of the Deposit of its decision to designate Antoine Gosset-Grainville, Deputy Director General of the Deposit, as director and acting in the absence or incapacity of the CEO, "says the CDC said in a statement. 

Appointed general manager of the Deposit by Jacques Chirac two months before he left the Elysee, Augustine had said in early January Romanet be candidate to succeed himself. Under its mandate, with the financial crisis, the Deposit has intervened on many fronts, including participation in the rescue and the dismantling of Dexia or bailout of insurer Groupama.

The name of the secretary general of the Elysee, Xavier Musca, circulated as a possible contender for the post of CEO of the CDC.

Augustin de Romanet denied on Sunday evening as a candidate or being approached in the event of a replacement for Mr. Frérot at the head of Veolia Environnement.

Values ​​to follow on Wednesday at the Paris Bourse, where the CAC 40 advances 0.57% to 3,430.96 points at 12:15, investors hoping that in Greece, leaders policies validate the draft agreement on the reforms demanded by its lenders in exchange for the second aid package of 130 billion euros.

* THE BANKING among the main beneficiaries of the market in hopes of a solution in Greece, while the European Financial Stability Fund (EFSF) will, according to Director General ral Assistant Christopher Frankel, probably have to play a key role in restoring the situation of the Greek debt.

FARM CREDIT advance of 3.74%, 2.91% BNP Paribas and Societe Generale 2.48%. The Stoxx sector index was 1.25% grants.

* The CYCLIC also benefit from the possible impact on growth in the euro area of ​​a favorable outcome to the crisis in Greece. ALCATEL-LUCENT rose 1.86%, 1.78% of Renault and Lafarge of 1.33%. The Stoxx auto sector is 1.21% and the resource base 1.33%.

* ArcelorMittal (4.25%) is ahead of increases in the CAC 40, the value advantage as the eve of its earnings forecast for 2012, and its solid fundamentals judged by the market ;.

* VINCI (1.79%) said Tuesday night expect a stabilization of its operating margin in 2012 to its 2011 level, in a context of expected stagnation in activity due to uncertainties in Europe.

* TF1 (7.29%) is ahead of increases in the SBF 120 and M6 earns 2.51%, Bank of America Merrill Lynch has raised its recommendation on the two values ​​of "neutral" to "buy" . 

* NEXANS (6.98%), the world of cable, said he was confident for 2012 after a year 2011 marked by strong organic growth but also by a net loss of 178 million euros, a result of provisions related to an investigation of European competition authorities.

* KLÉPIERRE (1.84%) will propose for 2011 a dividend up 7.4%, to 1.45 euros per share, after last year's growth of 3 , 6% of rent, but the land has made no comment on the possible reduction of the participation of BNP Paribas.

* A reverse trend, SANOFI (-1.75%) shows the largest decrease in the CAC 40, 2012 announcing the exercise more difficult than last year with the loss of patents of several of its major EM ; medicines, including its anticoagulant Plavix. 

* EADS lost 1.24% while the euro rose against the greenback in morning its highest level since mid-December to 1.3290 dollars.

* BOURBON (-2.49%) signed the largest decrease in the SBF 120 on profit-taking, analysts said, after rising 29% since the beginning of the year . The group reported an acceleration of growth in the fourth quarter of 2011, which allowed him to cross the symbolic milestone of one billion euros in annual sales, and pre see a continued improvement in 2012.

* FAURECIA lost 1.32% after a gain of 37% between late December and February 7. The supplier has confirmed its 2015 target of sales after a strong 2011 for the automotive supplier, with North America and China and despite an expected slowdown in 2012 in part because of Europe.

PSA Peugeot Citroën, which owns 57.4% of Faurecia, gaining 2.08%.

* THALES (-1.36%) has published an annual turnover down 1% and slightly below market expectations, but confirmed its operating margin targets for 2011 and 2012.

* ADP was down 1.04%. HSBC lowered its guidance on the title to "underweight", against "neutral".

The pan-European Stoxx 600 index is expected to grow about 4% from its current level and the end of next year, a growth limited by fears about the financial situation of Europe and the United States, according to a Reuters poll published Thursday.

The quarterly survey of more than 40 analysts and fund managers over the past week shows that the index comprising the 600 major European cap should come out to 250 points at the end of December 2012, against 240.08 points at the close on Wednesday and 265 , 25 points late July summer before his fall (-15% in August and September).

"The factors (rebound, Ed) largely concern the ability of the industrial states to bring order into their finances, whether it's debt management or the needed balance between spending and revenues "said Christian Jimenez, president of Blue Diamond Management.

"So the emergence of a new method for solving the debt crisis which should allow the return of confidence.

An economic recession can be avoided in Europe, but we must mobilize sufficient resources to calm financial markets, said Thursday the head of economic research of the Organization for Economic Cooperation and Development (OECD).

In an interview published Thursday by La Stampa, Pier Carlo Padoan added that the forecasts on Monday will present projections of growth and very low down on the basis of a negative scenario reflects the severe financial crisis in the euro area.

"No, (a recession) can still be avoided.

The Swiss pharmaceutical group Novartis announced Tuesday the elimination of 2,000 jobs at the group level and a series of measures designed to absorb the price pressure.

These reductions, announced in conjunction with the release of third quarter results will speak mainly in Switzerland and the United States, and will be offset by the creation of 700 jobs in low cost countries and other countries, Novartis said in a statement.

The group also plans to close two locations in Switzerland and Italy. Part of the research will also be transferred from Switzerland to the United States.

For the third quarter, Novartis presented figures in line with market expectations.Revenues totaled 14.8 billion francs (12 billion), up 18% in dollars and 12% at constant exchange rates.

Net income rose to 2.49 billion francs, an increase of 7% a year in dollars and 15% at constant exchange rates.

Analysts polled by Reuters on average expected a turnover of 14.86 billion francs and a net profit of 2.84 billion.

At 9:25, the title yielded 1.64% to 50.95 francs, while the European Health Index fell back 0.4%.

Wall Street opened slightly higher on Monday, the strong results announced by Caterpillar has somewhat overshadowed the skepticism of investors about the ability of the euro zone to resolve its debt crisis.

After the summit on Sunday, investors are eagerly awaiting the outcome of the next European meeting on Wednesday, including the question of the level of depreciation applied to debt securities held by the Greek private sector.

"We assume that the agreements will be announced in the coming days," said Peter Boockvar, market strategist at Miller Tabak & Co.

In early trade, the Dow Jones gained 0.29% to 11,843.15 points.The Standard & Poor's, wider, taking 0.33% to 1242.34 points while the Nasdaq composite gained 0.45% to 2649.43.

The beautiful performance as Caterpillar, up about 5% at the opening, supports the trend.

The world's largest earth-moving machinery and equipment for the mining industry reported Monday a record turnover and a 44% jump in profit in the third quarter, well above analysts' expectations.

Google loses the title, however, 0.45%. The group spoke with at least two private equity investment opportunity to help finance a transaction to buy the core business of its competitor Yahoo (1.97%), reports the Wall Street Journal, citing a source familiar with the matter.

The eviction of Pierre-Henri Gourgeon the CEO of Air France-KLM and the takeover of the group by its president Jean-Cyril Spinetta could be a lifesaving shock to the Franco-Dutch company, hit by financial indicators in red and a controversial management of the disaster Rio-Paris flight.

The second European airline in terms of sales has also confirmed the appointment of Alexander Juniac, former chief of staff Christine Lagarde, the newly created position of CEO of the national carrier Air France, and so set to resume eventually lead the group.

The arrival of this 48 year old technocrat had been widely anticipated, unlike the departure of Pierre-Henri Gourgeon, whose mandate was renewed for four years ago three months ago.

"It's a shock. It is a little surprised because Air France is not a company that used to act like that. However, it is rather good news for Pierre-Henri Gourgeon has not really good news to analysts, "said one analyst who requested anonymity.

Jean-Cyril Spinetta, who finds his chair as CEO, will be Deputy CEO Leo van Wijk, the current vice-president of the group, while Philippe Calavia remains chief financial officer.They will provide strategic coordination group to the holding of a genuine Air France-KLM, postponed from early 2012 to current 2013.

"The goal is to improve the operational and financial performance of the group in a context marked by economic uncertainty, their impact on European air transport and the situation of Air France face of increased competition from new players "the company said in a statement.

Pierre-Henri Gourgeon became Group Chief Executive in January 2009, while Jean-Cyril Spinetta, architect of the merger between Air France and KLM, had retained the presidency alone.

AIR FRANCE-KLM TROLLING

Stock Exchange on Monday welcomed the prospect of change to an increase of the share of Air France-KLM 1.43% to 5.606 euros, giving a market capitalization of 1.7 billion, against the market trend in Paris.But it remains down 59% since the beginning of the year, underperforming both the largely German Lufthansa and IAG, an entity formed by the merger of British Airways and Iberia.

Pierre-Henri Gourgeon and pays the price for its management of the company, which the French state owns 15.7% of the capital, considered too indebted, too slow to react and too wasteful, including labor costs well above those of its competitors.

The group, which now hold their exercises on the calendar year, merely to predict the end of July a positive operating result in 2011, when he had to exceed 28 million before the year 2010 on a comparable basis.

"It is believed that the duo should be able Juniac-Spinetta implement the measures necessary for the restructuring of the company that Gourgeon should have realized for several years," said another analyst.

"Two caveats, however, do this a few months before the presidential election seems a bit difficult in a society as symbolic Air France.Then, the decision appears to have been in a hurry, it will therefore take time before we truly know the new organization of the company. "

Even before the official announcement, the CFDT, which denounced the months of "rumors, calculations and combinations" between the leaders of the group, said he filed a "social watch" kind of notice of strike to get quick answers to questions employees and a clear strategy.

"We need a flight plan coherent economic and social level," he told Reuters Gilles Nicoli, secretary general of the CFDT Air France."It should not be the result of this reorganization is to delay the action plan."

Another delicate matter left to the new tandem: the catastrophe of Rio-Paris flight in June 2009. The third serious accident suffered by Air France in ten years has also raised questions about the technical training of its pilots, after publication of the interim report of the Investigation Bureau and analysts (BEA).

Countries in the euro area will require banks to accept losing up to 50% of their holdings of Greek debt, officials said Wednesday the euro area, as part of a larger plan to avoid defect in the disorder and to end the crisis that threatens the economic health of the planet.

Before an EU summit last chance scheduled October 23, during which a new plan to attack France and Germany should be discussed, four of the euro zone officials told Reuters that a discount of between 30% and 50% for private holders of Greek bonds was now proposed instead of the 21% forecast.

The second bailout of Greece finalized July 21 by the leaders of the euro area provided, in addition to 109 billion additional financing, a restructuring of the Greek debt on a voluntary basis.

In this context, private creditors – banks, pension funds and other financial institutions – had to accept a discount valued at 21% of the equity in their assets Greek bond, which represents a contribution estimated at 50 billion euros up in mid-2014.

Since then, the recession deepened in Greece, fueling fears of a defect in proper form and forcing the leaders of the euro area to consider a much more radical action to stem the crisis.

To restore confidence in the banking system, they also work on how to strengthen banks in the euro area in the recapitalization.

The President of the European Commission Jose Manuel Barroso has called Wednesday for a coordinated approach to the question bank, calling to use the bailout funds in the euro area, the European Financial Stability Facility (EFSF), as a last resort, as desired by Germany.

He also asked that the replacement of a permanent fund EFSF be brought forward to mid-2012 instead of 2013.

FINAL ENTRY LEVEL NOT FIXED

The amount of the Greek debt to reach 357 billion euros this year, 162% of its gross domestic product (GDP).For now, the Government of the euro area have failed to produce a convincing plan to reduce it.

"We negotiate every day to reduce this debt. This is the great trading and this is where lies the big problem," said Greek Prime Minister George Papandreou at a meeting of the Council of Ministers.

An official in the euro area told Reuters that the final level of participation of the private sector had not been fixed and was expected to see the reaction of banks to these new demands.

"It's still very open. You have to see what the initial reaction of investors.Voluntary participation is the goal, at least for now, and many feel that we must avoid the risk of total failure, "said one of them under the seal of anonymity .

"The discount will be set at levels consistent with the voluntary nature of participation of the private sector," said a second charge.

An official of the Institute of International Finance (IIF), the association that helps set up the agreement with the private sector, said Wednesday that the discount for private investors would be 39% when used the current market prices.

The second funding program of Greece to replace the top 110 billion euros funded through bilateral aid.

The new tranche of eight billion euros during the release will probably be the last under the old program. The 37 billion euros in funds not disbursed in the first plan will be integrated into the background.

A meeting of the Board of Directors of Dexia to be held Sunday at 13:00 GMT in Brussels to discuss the plan for dismantling the Franco-Belgian bank, announced a spokesman for the group.

"A meeting of the Board will be held at 3:00 p.m. local time," said the spokesman.

First bank victim of the crisis of sovereign debt in the euro area, Dexia was forced to seek government assistance. French Prime Minister François Fillon has to go to Brussels to decide the day with his Belgian counterpart Yves Leterme modality of decommissioning.

France and Belgium flew Tuesday to rescue Dexia, while the scenario of a dismantling of the Franco-Belgian bank, weakened by the financial crisis and in particular its exposure to Greece, is gaining credibility.

Placement, the day before, on negative watch Dexia's debt by Moody's, due to concerns of rating agency on the group's liquidity and access to bank refinancing, has accelerated the process.

Dexia shares had lost up to 38% in Tuesday morning, reaching its lowest historical levels, then some limit its losses in the afternoon.

The stock closed lower by 22.46% to 1.01 euros while the index of European banks, although hit by new fears over Greek sovereign debt, has limited its losses to 4.02%.The stock has lost nearly 60% since the beginning of the year, bringing its market capitalization to less than two billion euros.

Emergency meeting, the board of directors of the bank commissioned the night of Monday to Tuesday the CEO, Pierre Mariani, so that it addresses the structural problems of the group, three years after a first plan Rescue audience of over six billion euros, which enabled Dexia to avoid bankruptcy.

The National Federation of Belgian union employees (CNE) said Tuesday it had learned of a decommissioning project at Dexia in several separate entities, which would threaten 150 jobs within the bank holding company.

Several French and Belgian politicians spoke publicly on Tuesday proposed creation of a "bad bank", a separate defeasance structure where the bond portfolio would be stationed at risk for the bank, amounting to some 100 billion euros .

"We need to look at how to change this group.We must remove all the dangerous parts of the bank, this is where the state guarantees come into play – that's what we call a 'bad bank' – then we can give guarantees to customers that if they are depositors or solicitors credit, "said Belgian Finance Minister Didier Reynders in an interview with television channel RTL.

SUPPORT OF CENTRAL BANKS

In a joint statement, Didier Reynders and his French counterpart Francois Baroin committed and that the two states make "their guarantee to funds raised by Dexia."Central banks in both countries have also made their support for Dexia and stressed that the bank's customers had no reason to withdraw their money at the box office.

The creation of a new French bank – which would lean part of the portfolio of loans to local Dexia to those of the Deposit and the Post Bank – is also under consideration.

This funding could be organized in partnership between the Deposit and the Postal Bank."This may in particular through the resumption of activities of Dexia in this area," he told Reuters a source close to the CDC.

A meeting of the Investment Committee of the Supervisory Board of CDC to be held Wednesday, but there is no evidence that the project is complete enough to be formally introduced.

According to the rapporteur general of the UMP Senate Finance Committee, Philippe Mariani, confirming that such a project is under consideration for funding local government does not inject money directly in the operation .

However, the hypothesis of a sale to another Dexia European banking group, on the model of Fortis sold to BNP Paribas, has not favored by analysts, investors, stressing that Dexia is not salable in the state.

The Dexia Group is mainly composed of a retail bank in Belgium, a private bank in Luxembourg, the pole of financing local authorities in France and banking Denizbank in Turkey.Maintaining this "nugget" of Turkey within the scope of the bank as well as the division's management, may seem equally uncertain.

THE FATE OF MINORITY

The question of a recapitalization by the States, would constitute a de facto quasi-nationalization has not been formally excluded.

"Everything will depend on the scheme presented by the management of Dexia," said the Belgian Minister of Finance.

Barely mentioned, the new rescue plan for Dexia, which would be the first bank in Europe victim of the crisis of sovereign debt, has prompted reactions from representatives of minority shareholders of Dexia.

The consulting firm shareholders Deminor has insisted in an open letter to shareholders to be consulted before any decision..

A speech relayed by the chairman of the Finance Committee of the French National Assembly, the Socialist Jerome Cahuzac, who also considered that the shareholders of the Franco-Belgian bank should be involved in resolving this crisis.

The European Banking Authority (EBA) has announced that it would discuss at its meeting Wednesday of the situation of Dexia and, more generally, problems of financing in the euro area.