Business News » EUR

BASF buys Cognis for more than 3 billions EUR

viliyana89 — Wed, 16 Jun 2010 12:02:06 +0000

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.
Nine years ago, Goldman and Permira bought Cognis, which at that time was a division of Henkel, a sum of 2.5 billion.

EUR continue to decrease

viliyana89 — Fri, 14 May 2010 11:55:21 +0000

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.
Meanwhile, ECB substantially increased its forecast for inflation this year to 1.4 percent from 1.3 percent. Earlier today it became clear that unemployment in Greece has reached 12.1 percent in February, which is the highest value since January 2004.

Italian economy is also sick

viliyana89 — Sat, 01 May 2010 22:20:55 +0000

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.
Government securities – the last reserve
This is true, but partially. The fact is that decades of Italian families invest in government securities which are sold only when in urgent need of money. In this sense they act as a secure bank. Following the introduction of the euro in Italy, however, trade in government bonds began to include more foreign investors. Over the last decade new debts Italy grew relatively small compared with those of Germany, for example. Overall, however, Italy has their shoulders to a mountain of debt – 115% of the whole GDP. Maastricht criteria set in this respect limit of 60%. Therefore, Italian Finance Minister Giulio Tremonti is trying to flow as much money in the treasury, by discouraging the bigger social costs. Ultimately promised during the campaign, Berlusconi tax cuts are impossible.
Tightening of belts on the agenda
According to the President of the Italian Parliament Gianfranco Fini is to rein in government spending. However, Prime Minister Berlusconi has promised financial assistance to the Greeks from five billion euros. Italians swallowed that fact without any protests apparently led by the thought that without a large debt. “Italy is sick, very sick, but always so far, we have found the Italians out of difficulty. Italy can recover because there is potential for it,” says the optimistic manager, walking on the street with boutiques in the old part of Milan. Shops here are full of people enjoying the beautiful weather and obviously have no intention to spoil your good mood because of the bad news coming from other Mediterranean countries.

20 billion EUR trade deficit of EU with Japan

viliyana89 — Sat, 24 Apr 2010 14:36:41 +0000

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).
Almost a third of EU exports to Japan in 2009 were machinery and aircraft. Other goods and chemical products account for about one fourth of EU exports. Machinery and aircraft were two-thirds, and other products almost a fifth of imports. In a more detailed examination the most important EU exports to Japan were drugs, automobiles and automotive parts and pork imports from a most important were cars and car parts, printers and parts, and digital cameras.

EU gives 64.4 billion EUR for economy recovering

viliyana89 — Sat, 24 Apr 2010 03:32:08 +0000

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.
64.4 billion EUR: budget for future sustainable growth
Currently, the Structural Funds and Cohesion Fund is actively applied in the field. Although appropriations for commitments increased by 3.2 percent, the payment appropriations for continuing projects increased by 16.9 percent to reach 42.5 billion EUR. Expected increase in payment appropriations to contribute effectively to create the necessary incentives to national economies, while structural adjustment be encouraged to model for sustainable growth, defined by the recently adopted EU strategy for growth and jobs. Implementation of the European economic recovery plan also came on the agenda of more than EUR 1 billion to finance the implementation of site energy projects adopted in 2009 and early 2010, in Capture and Sequestration dioxide, offshore wind and energy infrastructures. Similarly, around EUR 500 million will finance the approved projects for broadband in rural areas. While the financing costs associated with marketing, and direct support for Common Agricultural Policy (CAP) and rural areas will maintain the same level funding for environmental protection program through Life + will increase by another 8.7 % to reach 333 million EUR.
In the draft budget for 2011 also provides increased investment for research, development and innovation, infrastructure and human capital. Funds for the 7 th Framework Programme for research and technical development will increase by 13.8 percent to reach 8.6 billion EUR; ever EU has invested so much money in this program. Research and development alone can not lead to economic recovery: the means of trans-European transport and energy networks will increase by 16.8% (1,3 billion EUR), while for the Competitiveness and Innovation Programme (CIP) will be allocated with 4.4 percent more vehicles than in 2010 (549 million EUR).
These are resources for the future of our youth and strengthening citizenship
“More than 20% of European youngsters are unemployed,” said Janusz Levandovski. “This is absolutely unacceptable. The EU budget should help them prepare for professional careers through education and exchange.” For this purpose the financing of the “Lifelong Learning” will increase by 2.6% (1,1 billion EUR), which will allow students to provide over 200,000 scholarships under the Erasmus program. The additional contribution of 120,000 more students will be funded through the Youth in Action, through which it distributed 127 million EUR (+1,6%) to support the employment of young people through non-traditional forms of training. Funding for programs in the area of freedom, security and justice will increase by 12.8 percent, representing the largest increase in budget lines in the draft budget for 2011 a significant contribution to security and protection of liberties (24.4%) and management of migratory flows (18.5%) shows the importance given to implementation of the Action Plan for EU citizenship justice, security, asylum and immigration for the next five years, which was recently adopted by the Commission.
EU global player
Sustainable level of funding for activities related to the EU as a global player (5.6%) was confirmed by three main proposals:
a) increasing the EU’s commitment under the UN Conference on the Millennium Development, which took place last autumn (65 million EUR);
b) an increase in EU aid to developing countries to tackle climate change (65 million EUR);
c) providing a new means of promoting economic and social development of the Turkish Cypriot community (25 million EUR).
Administrative costs
Administrative costs for all EU institutions will continue to be 8.3 billion EUR or 5.8% of the budget. The Commission will continue to respect its commitment to a zero growth policy for recruitment and internal allocation of staff to cope with the challenge of new tasks.
“This is the first budget since the Lisbon Treaty enters into force,” said Janusz Levandovski. “There are two main differences: first, the whole procedure is much faster than in the past, given that there is only one reading European Parliament instead of the previous two. Secondly, for the first time the Council and Parliament have equal powers in approving the budget. This suggests to increase more than ever cooperation between the three EU institutions involved in the process. ”
The Council will communicate its position on the draft in June and the European Parliament in October. In case of disagreements between the European Commission – in its role as honest broker – will start a conciliation procedure, lasting 21 days. It is expected that the final budget for 2011 to be approved by Parliament in November.

Don’t worry for your money!

viliyana89 — Fri, 16 Apr 2010 17:30:05 +0000

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.
Furthermore, why the government did not explain Germany finally, that it is not very unselfish when it comes to financial aid? Germany Greece credits are beneficial for Germany’s economy. Greece is an important market for Germany companies. Greeks love Germany as much goods as the Germans like to go on holiday in Greece. No money – no jobbery, this is the truth.
Who wins and who loses?
And do not forget the interests of Germany and banks. Special provincial banks have invested in the cool Greek securities – total around 30 billion euros. If these securities suddenly lose its value, then even before the end of the year just rescued so many billions of taxpayers’ financial institutions will once again prove to the brink. And that means they probably will again need to be saved.

Yamaha seeks 600 million EUR investment

viliyana89 — Sun, 04 Apr 2010 22:02:48 +0000

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.
Among the new products from Yamaha are in addition to cleaner engines for motorcycles and boats, also electric powered motorcycle and small engine bikes.

Czech Republic adopt the EUR after 2015

viliyana89 — Tue, 30 Mar 2010 11:56:33 +0000

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.
Republic has one of the most low inflation in the EU. Last year statistics took account of 0.9%.

German banks make money on the back of Greece

viliyana89 — Sun, 21 Mar 2010 09:56:50 +0000

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.
On the same forum was lectured by the Bank of Greece, quoted by the agency Reuters. It said that the country’s economy has turned into a vicious circle of problems, and only strict discipline can help to be shortened huge budget deficit debt. And this can happen to the reforms that help the economy begin to grow, advised the Greek central bank. Vdokladase added that recovery would be prolonged and painful, and initiated measures are only the beginning of the great contraction. The next step will be to support economic growth through structural change, focusing primarily on development of competition. Bank analysts expect that this year will be reported decreased by approximately 2% of GDP. Inflation may reach about 3%. The report said that the fragile economic recovery in the euro zone started in the third quarter of 2009 will continue this year, mainly due to fiscal incentives. Greece’s budget deficit in 2009 reached 12.9 percent of GDP and public debt – 115 percent of GDP.

105.5 billion EUR is the trade deficit in EU

viliyana89 — Mon, 15 Feb 2010 04:59:07 +0000

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.
Last year the trade volume accounts for all major partners, with the exception of exports to China, which increased by 2 per cent.