Panic in Las Vegas!

Dear readers,

I have read a very interesting article about Las Vegas… Unfortunately, this money bubble cannot forever succeed in such an indebted country as the United States.

A new hotel “Cosmopolitain” decided to open its doors in December in Las Vegas. It will be a luxury hotel with 2500 bedrooms, spa, gym club, huge casino...  The Deutsh Bank has invested around 4,5 billion Dollars in this project.

All gave the impression of a perfect economy in the city...

Despite the thousands of tourists in front of slot machines, Las Vegas knows its worst economic period. American people knowing a bad economic crisis and limit their leisure budget. Since the beginning of this crisis, Las Vegas knows a decline in its client attendance.

People who work in Las Vegas confide about the actual situation: “It’s quite hard” said a man who works in a hotel.  The unemployment increase a lot, it represents today 14,4% whereas the unemployment average of the USA is 9,4%. Now, people in Las Vegas are satisfied with all types of jobs!

Moreover, this state knows the real estate crisis… more and more people have to sell their home, does it remember you something? The economic crisis of 2007 has its first effect in this state just now! “We are speaking about Las Vegas as the new Detroit.”

Obviously, the end of the crisis will not happen soon in United States…

Entrepreneurs loose a lot of money because of their ambition. “We knew that this money bubble had some risks but we obviously continued to built”

American economists explain that the end of this crisis in Las Vegas will be very long… They also speak about a new economic policy for the state. Casino market will not being sufficient to help the end of crisis.

One more time, American investors have played with fire. They have a lot of ambitions but the actual economic situation doesn’t permit to do too much things.

In this case, American people are guilty because they don’t forecast all economic consequences.

When the American people will stop to be concern by the economic crisis? One thing is sure; it’s not for tomorrow…

Regards,

Pauline

Sources:

http://www.lefigaro.fr/international/2010/10/29/01003-20101029ARTFIG00612-las-vegas-entraine-tout-l-etat-dans-sa-chute.php

http://www.lvrealty.net/files/communities/cosmopolitan.jpg

http://fr.blackjack.org/blackjack/content/misc/blackjack-in-las-vegas.jpg

http://www.tripstolasvegas.info/images/Trips-To-Las-Vegas-las-vegas-casino-chips.jpg

A real bad situation for France...

Dear readers,

I come from France and I read more and more articles; which are speaking about the French situation: What a disaster!

France is out of gas, Paris receives terrorist threats and French students invade Streets…

The world can already worry about the French economic, Financial and social situation.

The wait is getting longer in French petrol stations and student’s reactions have consequences.

In fact, the French government attempts to create a new law concerning the retirement. Actually, the retirement age is 60 years old. Government wants the retirement to be higher (62 years old). This change can improve the French economy because these two years will allow the government to save for future retirement pay.

To stop this law, refiners want to limit the activity of France. They decide to block refinery access… and French people can take their car to go to work.

French students are disagree with this law too because they don’t want to pay 2 years more… Results: They burn garbage, they don’t go to school and they become dangerous (many accidents happened).

I let you imagine the French bad situation…a real drama!

Another surprise happened today! Government received terrorist threats from Osama Bin Laden.

This message explains in two points the reasons of a terrorist attack:

-                - Osama Bin Laden accused France to kill Muslim people in Afghanistan: “How could it be fair that you participate in the occupation of our countries and you support the American’s killing our children and women and still you want to live in peace and security.”

-                - Osama Bin Laden speaks too about the recent law about the interdiction of the wearing the face veil: “If you unjustly thought that it is your right to prevent free Muslim women wearing the face veil, is it not our right to expel your invading men and cut necks.”


You can see the message here : http://www.lefigaro.fr/international/2010/10/27/01003-20101027ARTFIG00565-ben-laden-lance-un-avertissement-a-la-france.php

In spite of the improvement of the situation concerning the gas, France worrying about the France future…

I don’t know what others country are thinking about the French situation but it is not giving a good image I think…

Regards,

Pauline

Sources:

- http://www.lefigaro.fr/international/2010/10/27/01003-20101027ARTFIG00565-ben-laden-lance-un-avertissement-a-la-france.php
- http://www.google.com/images?um=1&hl=fr&client=safari&rls=en&biw=1139&bih=527&tbs=isch%3A1&sa=1&q=raffinerie+bloquée&aq=f&aqi=&aql=&oq=&gs_rfai=
- http://www.tv5.org/cms/chaine-francophone/info/p-1910-France.htm?rub=3

BP manages its crisis

Dear readers,

I have read a very interesting article about the Bp oil spill in Gulf of Mexico.

It shows how BP tries to manage its ecologic incident because it takes big political and economical proportion.

Firs of all, BP stopped recently the oil leak with a very ingenious system:

BP’s engineers have built big screw tops in order to contain 98 tonne of hydrocarbon.  Thanks to this action, to oil leak should be stop very quickly but the result is not quit sure…

In spite of this ingenious invention, BP will have a lot of problem because they are accused of lacking vigilance about their oil platform.

Bp tries to defend us and give some response on their website:

“BP and the gulf of Mexico Alliance announce Implementation of BP’s $500Million independent Research Initiative.”

American government is afraid of the BP invention results because news leaks can arrive soon. All 600 animal species are not save today and coasts are very damaged… For the American government, it’s clear; BP should pay in order to repair all damages.

“BP will receive an invoice”

6 members of the House of Representatives have presented a text, which explains that this type of incident represents 75 million of dollars. Americans senators want to elevate this amount at 10 billion of dollars… 

The award will be terrible for BP! In fact, this type of disaster has a lot of consequences in the environment. I think it is totally normal that BP should do everything as possible in order to repair the situation. This disaster will have an important impact on environment but also on economy and policy! This disaster involved a lot of politics and economics decisions to find solutions for the country.

Regards,

Pauline

Sources:

www.usinenouvelle.com
hebdo.nouvelobs.com/
www.bp.com/home

LVMH and Dreyfus bet on the SMCP group

Dear readers,

Since 2005, in France, acquisitions increase a lot and I want to talk you about one of them.

This acquisition concerns the most important group in the fashion area LVMH and three very famous French fashion brands (SMCP group: Sandro Maje Claudie Pierlot)

These brands propose clothes for young women; it’s very chic and classic.

In fact, the LVMH group decides to extend one more time its activity.

Concerning this acquisition, two persons have become majority shareholders this Monday: Arnault family and Dreyfus family. 

They actually hold 51% shares of SMCP group, other shares are holding by brand founder members. This operation has been realized via L Capital hedge found (From Arnault family) and Floran hedge found (From Dreyfus family).

This acquisition is very important for SMCP group because it will permit its internationalisation. 

These three brands are working very well in France and it will surely work abroad in Asia, Europe and United States.

The group predicts to have a 180 million of Euros turnover in 2010.

Recently, L capital and Floran have buy Pepe Jeans and Hackett brands.

I think that acquisitions for brands can be a real help to develop products, brand image and internationalisation for example.

In this case, LVMH is a luxury group with interesting brands, so this acquisition gives a good image to the SMCP group. I am sure that this group will enjoy a good evolution.

 Regards,

Pauline


Source:

http://tempsreel.nouvelobs.com/index.html
www.maje-paris.fr
www.sandro-paris.com/
claudie-pierlot.placedestendances.com/ 

Kerviel Crisis

Dear reader,

I would like to speak about one French and Financial affair.

In January 2008, Jérôme Kerviel was accused of being the only responsible of Société Générale’s money losses.

Indeed, the Société Générale bank had lost 4,82 billion of Euros because of bad decisions about futures contracts with shares index.

Kerviel had made these bad decisions and became the responsible of the worst french financial history of our century.

Nevertheless, one question worried financial people: “Why this error became an accusation? Is it not the trader’s job to take risks on financial market?”

I agree with this questioning because a trader has to take risks in order to succeed but sometimes it failed. I think that handle a lot of money can be the consequence of losing control.

But the main problem in this affair is that Kerviel had certainly taken advantages of his professional situation.

In the meanwhile of his case, Jérôme Kerviel write his biography in order to try to explain his acts. He was working for a company as computer consultant.

Yesterday, the verdict has been pronounced. The ex trader sentenced to 3 years imprisonment and he has to refund 4,9 billion Euros.

 We can see here that the refunding is totally symbolic!

I think that the sentence is very hard for Jérôme Kerviel because he has to pay for all the mistakes of the financial world. The trader qualify his job as prostitute, it shows here his feelings about the affair.

At the end, I think that Kerviel is not innocent but he can’t be the only responsible in this financial history.

The foreign press juges that the sentence is too excessive.

Trader can be the best as the worst and the sentence is quit hard.  

Is Kerviel still a victim in this affair? I suppose, no body can have the correct answer.

Regards,

Pauline

Source:

http://www.lesechos.fr/investisseurs/actualites-boursieres/020839136828.htm
http://www.lefigaro.fr/actualite-france/2010/06/08/01016-20100608ARTFIG00768-de-l-affaire-kerviel-au-proces-de-la-societe-generale.php
http://www.lavoixdunord.fr/stories/image460x00/mediastore/VDN/France_Monde/A2010/M10/_101004-kerviel-afp.jpg
http://www.lepoint.fr/images/2010/10/05/174345-92933-jpg_72208.jpg