The German chemical concern BASF will buy its smaller competitor Cognis for more than 3 billion to reduce its dependence on the production of petroleum products. Goldman Sachs investment bank and private equity firm Permira, which own the Cognis, plan to conclude the deal with BASF first half of this week. It said the Financial Times anonymous sources who are familiar with the situation. From BASF, Goldman Sachs and Permira have refused comment. BASF, which has a significant cash from months to negotiate the price of the acquisition of its competitor. From Goldman Sachs and Permira initially require 3.5 billion, while from BASF insisted that no more than 3 billion. Ultimately, both sides have agreed on price in the middle of the range. BASF’s concerns stem in large account of the criticism that its investors headed for the Company, having gained against the amount of 4 billion Swedish manufacturer Ciba Chemicals in early 2009. BASF is the largest producer of chemical products in the world, Cognis specializes in the production of food additives, health products detergents and other specialty chemical products. In the first quarter of this year came Cognis profit of 47 million compared to a loss of 33 million for the same period a year ago. Its revenue amounted to 728 million euro, equivalent to an increase of nearly 11% annually. Cognis owners gave the Goldman Sachs and JPMorgan to explore initial public offering (IPO) of the company, but it was dropped because of poor condition of financial markets and high levels of indebtedness of the maker of chemicals.
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The single European currency continues to become cheaper and lunch in European trading because of fears that countries with debt problems may not be fast enough to reduce their budget deficits. The single currency lost 0.2 percent of its value to the dollar and halt 12:41 local time was trading at levels of 1.2685 EUR / USD. The single currency was trading lower against the yen on and Swiss franc, the agency adds. Cross EUR / CHF hit a new bottom in the top level 1.4002/01 – just below the former record of 1.4003/04 bottom in 6:05:10. The broad European index Stoxx Europe 6000 retorts accumulated lead of 0.8 percent and at the same time was no particular change from yesterday’s levels. Futures on the S & P 500 fell 0.3 percent after in Asian trade were without special change. MSCI World Index, which includes performance of 23 developed countries also retorts in her early rise, which was 0.5 percent. U.S. light crude for delivery in June fell 1.1 percent to 74.76 dollars a barrel. Quarterly copper futures erased early in its growth of 1.3 percent, the agency adds. Gold also fell as a drop in the precious metal is 0.5 percent to 233.22 dollars an ounce. After reaching a record 248.82 dollars yesterday.
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In Italian television news is a top issue: the crisis in Greece. Journalists also vigilantly monitor the delicate situation in Portugal and Spain. The financial situation in Italy itself, however, remains in the background. “People are desperate and this is very dangerous,” said an elderly Italian, who read a newspaper Milan Square Cruising Markanti activities. He teaches finance at the University of Bari and paints a picture of Italian bad future: “People live day to day, politicians too. They look to cope with what lies ahead tomorrow but not long-term task for the renovation budget. The media is not informed enough. Almost no one knows at what risk we are exposed today said the teacher from the University of Bari.
Taxation feet of clay
According to news concern, because Italy’s tax policy is based on illusions in the economy. If the government in Rome not quit this country will lead to a condition which is Greece. Certain financial and economic experts in Italy strongly reject such grim forecasts. Among them was Giacomo Vachiago economist as saying Italy can not be compared with Spain and Portugal: “Italy has less external debt in comparison to those two countries and the Italians have traditionally invested their savings in local government bonds, thus supporting the liquidity of the country. This is a kind of protection,” says economist Vachiago.
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Between 2000 and 2009, exports of EU goods to Japan fell by about 20%, from 45 billion to 36 billion euros, Eurostat reported. EU Imports from Japan fell by almost 40% from 92 billion to 56 billion. Thus, the EU deficit in trade with Japan has fallen from 47 billion in 2000 to 20 billion in 2009, the share of Japan since the total movement of goods outside EU decreased significantly. In 2009, Japan fell 3 percent of exports and 5% of EU imports. That it was the sixth largest trading partner of EU. On the occasion of the 19th Summit of the European Union and Japan, which will take place on Wednesday, April 28, 2010 in Tokyo, Eurostat presented data on trade in goods and services and investment relations between the EU and Japan. By Member States of the EU in 2009, the largest exporter to Japan was Germany with 10.8 billion or 30% of total exports, followed by France (4.8 bn or 13%), UK (3 8 billion or 10%) and Italy (3.7 billion, or 10%). Germany was the largest importer (13.8 billion or 25%) to the Netherlands (8.7 bn or 16%) and the United Kingdom (7.0 bn or 12%). Most Member States have made in 2009 in the trade balance deficit with Japan. The highest deficits were announced by the Netherlands (-6.2 bn), Belgium (-4.3 bn), United Kingdom (-3.2 bn), Germany (-3.0 bn) and Spain (-1.2 billion) and the largest surpluses were registered in Ireland (+1.3 bn) and Denmark (1.0 billion).
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Promoting economic recovery, investment in European youth and infrastructures of the future are the priorities of the draft budget for 2011 adopted by the European Commission on April 27, 2010, reported portal “Europe”. Of the 142.6 billion EUR 64,4 billion EUR are allocated to actions for economic recovery (3.4% compared to 2010). In addition, funds in support of the flagship initiatives of the EU Strategy for 2020 (growth) accounted for around 57.9 billion EUR (about 40% of the budget). “The ambition of the draft is to continue to support economic recovery, together with Member States, particularly in favor of the more vulnerable in this situation after the crisis, as reflected in the new budget comprehensive EU approach to job creation and growth “said Budget and Financial Planning Janusz Levandovski. He stressed that the draft budget adopted today provides Europe and its citizens incentives to develop the economy of the future: its main components are research and innovation, sustainability and inclusion. This draft is aimed at helping young people to be better prepared for future promotion of small and medium enterprises make best use of EU funds for the bailout.
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The Germans are outraged that have to pay the debts of Greece. Politicians exploit these feelings without having to bother to explain to people the whole truth, says the publication of the newspaper Suddeutsche Zeitung, quoted by Radio Deutsche Welle. Reality has little to do with clichés. Worse is that the Germany government totally failed in its mission to inform and calm just Germans the truth about what is highly indebted to Greece for the common currency, responsibility and interests of Germany. Silence continued so long that finally Luxembourg Prime Minister Juncker seemed forced to take over the role of educator.
No money – no jobbery
In an interview on the radio Juncker said what chancellor Merkel suppressed. He explained that no European taxpayer and at least Germany should be afraid for their money. In the event that Athens asked for money, she will get a loan, which will be quite normal to pay interest. Germany Government may even benefit from such a loan, since it would take the money market at much more favorable conditions than those under which they grant to the Greeks. And not only Germans could allocate money to Athens. No, we should help all countries in the euro area, the burden will be distributed in accordance with a special key.
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Japan’s Yamaha Motor said it plans to raise up to 76.1 billion yen (600 million) through a capital increase to finance the development of lower cost engines and motorcycles at low prices to developing markets. Suffered from lack of demand in the U.S. and Europe and high costs of restructuring, the group announced a loss of 216 billion yen (1.7 billion) for 2009 Yamaha this year hopes to come out of profits, transmits Reuters. Planned capital increase will be most significant, made by a company from the automotive sector by offering shares in Mazda Motor in October 2009 that the market was looking for 98 billion yen (about 780 million euros). Investment plans of the company does show once again that major players in the sector are trying their best to adapt to changed consumer attitudes, consisting mainly in search of greener and more economical models.
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The adoption of the euro Czech Republic is unlikely before 2015 and depends on the condition of state finances, said Governor of the Czech National Bank Zdenek Toumani. He said adopting the common currency of the European Union a question of political will and political decision. Republic remains a problem to maintain a budget deficit below 3 percent, according to the Maastricht criteria, the data show. Last year the country reported 6.6 percent of GDP deficit. The outlook for this year the Czech Ministry of Finance for 5.3 percent and the Czech National Bank – 5.6% respectively. Adoption of the euro before 2015 was mission impossible and Czech experts and politicians. The second problem facing the Republic is the retention rate of exchange for the country to be able to enter the system ERM II. As regards the other Maastricht criteria the country is in good condition. Last year, government debt was 35.6 percent of GDP.
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The German banks make money at the expense of Greece, gave Prime Minister Theodoros Pangalos accused. He explained that this occurs when his country is waiting from Berlin and the EU assistance to remedy its financial system. “What can be seen from the German position is that banks in Germany have speculated with the bonds to its counterparts in the euro area, as allowed to play with the fate of unhappy people in my country, while on their back in Germany, make money,” said Pangalos. With almost 43 billion euro loan banks are Germany’s biggest creditor of Greece. Berlin last week to oppose the idea of providing new financial assistance to Athens and said that the Greek government only has to cope with the crisis. Greek deputy is one of the most fierce opponents of Germany. His name was implicated in a month ago, the media war between the German magazine Focus, and two Greek newspapers. Pangalos then Germany criticized the attitude of the Greek financial crisis, stressing that Athens never received adequate reparations for World War II. And came to an official note from the the German Foreign Ministry, which said that discussions about the past do not help to solve today’s problems. Now Pangalos prosecution argued with Germany’s export expansion. “Although the countries of Southern Europe suffer from the fall of the euro, German exports because of rising profits, which made massive Germany”, said Deputy Prime Minister of our southern neighbor.
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The deficit in trade between the EU-27 and the rest of the world reached 105.5 billion in 2009, while a year earlier – in 2008 amounted to 258.4 billion, showing a pre-data statistical office Eurostat. As regards the euro zone trade balance was positive amounting to 22.3 billion euros, against a deficit of 54.7 billion for 2008. In December 2009 the EU has 2,5 Bn deficit in trade with third countries. Over the same period last year there was a decline in the deficit from 8,8 billion. The previous November, the trade balance was again negative, amounting to 6,8 billion euros, 24.4 billion compared to November 2008. Eurostat data for the period January – November 2009 showed a significant reduction in the deficit in trade in energy resources – from 350.7 billion euros in 11 months of 2008 to 212.1 billion in 2009. Reduced surplus in trade in machinery and equipment (from 138.9 billion to 99 billion euros). As regards trade with chemical products, however, there is growth in the surplus with 5,4 billion euro to 74.1 billion euros in total.
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