France Pushes Ahead: Weekly International ETF Report
Seperate multiple addresses with Commas. Must enter an email address. You must enter the verification code below to send. Invalid entry: Please type the verification code again. October 7, 2013, 3:19 a.m. ET Air France-KLM Likely to Make Profit in 2013 — Chief Executive Text By Inti Landauro PARIS–Franco-Dutch airline Air France-KLM (AF.FR) is likely to turn a profit in 2013 as a result of recent restructuring programs, its Chief Executive Alexandre de Juniac said Monday. “[French unit] Air France will make profit in 2014 and Air France-KLM is likely to make profit as soon as 2013,” Mr. de Juniac said in an interview with local radio station Europe1. “This will the means us to develop and open new routes.” The airline will begin flying to several cities in Latin America, Asia and Africa, including Panama and Brasilia, he said. The company has carried out a series of job cut programs over the past couple of years as part of a company-wide restructuring effort aimed at cutting about 2 billion euros ($2.7 billion) in annual costs by 2015. It is facing with rising competition from low-cost airlines in the short- and medium-haul European market and from Middle Eastern airlines such as Emirates Airlines. Mr. de Juniac said the company isn’t planning to make further job cuts in 2014 and doesn’t anticipate any conflict with labor unions in the coming months. Write to Inti Landauro at email@example.com
France military eyes 2014 cuts, far-right seeks to benefit
Credit: Reuters/Christian Hartmann By John Irish and Emmanuel Jarry PARIS | Thu Oct 3, 2013 8:21am EDT PARIS (Reuters) – France’s military will cut about 7,500 jobs next year, a defense ministry source said on Thursday, detailing government belt-tightening plans that the far-right hopes will deliver it votes at municipal elections in 2014. The cuts come as tensions rise within Socialist President Francois Hollande’s 17-month-old coalition, whose poll ratings have fallen to 23 percent due to dissatisfaction about the economy and jobs. The defense ministry said in April that 34,000 jobs would likely be cut over the coming six years, but its overall budget would remain largely static, steering clear of drastic spending cuts after military officials and lawmakers said that would reduce France’s ability to counter global security threats. “Given the six year objectives, (the cut) should be around 7,000 to 7,500 military and civilian personnel in 2014,” the source said on condition of anonymity, ahead of a news conference by Defence Minister Jean-Yves Le Drian. A handful of bases will be closed or restructured, including an 800-man regiment in the town of Orange in the Vaucluse department, where support for the anti-immigrant, anti-European Union National Front is strong, the source said. Marion Marechal-Le Pen, a National Front member of parliament for Vaucluse, said the cuts would hurt France’s defenses and local economies in areas like hers. “I can only worry about the immediate economic impact in a region that has already been heavily hit by unemployment and economic difficulties,” she said, reacting to media reports about the cuts. “The governments of the right and the left have preferred to sell off our military know-how and lose our diplomatic independence by making small short-term savings. That will cost France’s sovereignty dearly in the coming years,” she said. France’s military employs some 228,000 personnel today. A further 165,000 individuals are employed by the defence industry, not including sub-contractors.
Investors have been keeping a watchful eye on France, as the economic health of weakest link in the Eurozone core is often seen as an indicator of the Eurozones recovery from the Great Recession. On October 3, the French National Institute of Statistics and Economic Studies (INSEE) released a report entitled, Conjonture in France The Recovery Continues . The report began with this overview: In France the business climate, which started to pick up in industry in spring, is now improving across all sectors. Activity is however likely to be restricted in the energy and transport equipment sectors in Q3, most notably due to the after-effects of the previous quarter. GDP should thus stabilise in Q3 before growing once more in Q4 2013 (+0.4%). As an annual average, GDP should climb by 0.2% in 2013. Year-on-year, activity should show a far more positive trend at the end of 2013 than one year previously (+0.8% after -0.3%), driven by the rebound in manufacturing output, most notably. The rate of unemployment in France continues to remain dismal, at 11 percent during August, (unchanged from July) according to an October 1 report from Eurostat , which indicated that the Eurozone unemployment rate remained at 12.0 percent (NYSEARCA:VGK). The Eurozone unemployment rate for July was revised downward from 12.1 percent to 12.0 percent. On October 3, Markit Economics released its final France Services PMI report for September , which included the final Composite PMI figure for the month. The Markit Services Activity Index rose to a 20-month high of 51.0 from Augusts 48.9, finally breaking into the range of expansion. (A reading below 50 indicates contraction and a reading above 50 indicates expansion.) The final Markit France Composite Output Index also rose into the expansionary range with a reading of 50.5, compared with 48.8 in August. The Composite PMI for September also reached a 20-month high. Unfortunately, the final Markit France Manufacturing PMI for September remained slightly in the range of contraction for the nineteenth consecutive month creeping upward to only 49.8 from Augusts reading of 49.7. Markits France Retail PMI report brought the bad news, as the nations retail sales fell for the first time in three months. Retail PMI fell into contraction during September, dropping to 47.1 from Augusts 51.6. The France Services PMI report included the following Commentary from Jack Kennedy, Senior Economist at Markit Economics and author of all three of the Manufacturing, Services, and Retail PMI reports: The prolonged downturn in the French service sector finally came to an end in September, with activity rising for the first time in one-and-a-half years. (Chart courtesy of Stockcharts.com ).