Friday, April 26, 2013

China agrees with France to buy 60 Airbus planes


China agreed to buy 60 Airbus planes in a memorandum of understanding signed Thursday by French President Francois Hollande and Chinese President Xi Jinping in front of reporters.
A significant portion of the planes would be manufactured in China at an Airbus factory in Tianjin, 150 kilometres (93 miles) from the capital, an industry source told AFP on condition on anonymity.
The signing ceremony took place in Beijing's Great Hall of the People on Hollande's first day of a two-day visit to China aimed at boosting trade. He arrived earlier with a planeload of business people.
"Today there is a trade imbalance and it behooves us to fix it, not to reduce our investments and our exports but to increase them," he said while exchanging greetings with Xi before reporters.
"This is what we will discuss during our meetings."
Xi told Hollande: "You are working actively to promote growth and increase competitiveness.
"I look forward to the future of our global strategic partnership and look forward to working with you to make our bilateral relationship closer, healthier and more vibrant."
France accounts for just 1.3 percent of China's foreign trade compared with around five percent for Germany, and a trade deficit with China of 26 billion euros ($34 billion) last year is seen in Paris as unsustainable.
Hollande is the first Western leader to be received in the capital by China's new president.

The French government sold 1760 million shares of EADS stock, cash of 1.2 billion euros


French Ministry of Finance issued a statement on Friday, announced yesterday the sale of European Aeronautic Defence and Space Company (EADS) 1760 million shares to 707 million euros ($ 925 million). April 16, sold 1200 million shares, realize a total of 1.19 billion euros in France this month.

The French government sale of Airbus parent company EADS stock plan announced in December last year, the Government of France and Germany to 12% stake each, the Spanish government shares part of the agreement 4%. In addition, private sector investors Daimler AG, Germany and France Lagardere Group sold EADS stock.

Berlin visitors tax levied to tourists. Except for business people


Berlin from July 1 tourist tax levied to tourists.

Tax collection behavior in the hotel, the amount of tax revenue accounted for 5% of the accommodation. The Government will not be liable for business matters of visitors to Berlin from the tax, it is not clear how the government will distinguish between ordinary tourists and businessmen. Tourist tax is very common in major European cities, especially in Rome, Florence and Barcelona. 1991-2004 Russian tourists had to impose medical expenses, but was later canceled

Berlin visitors tax levied to tourists. Except for business people


Berlin from July 1 tourist tax levied to tourists.

Tax collection behavior in the hotel, the amount of tax revenue accounted for 5% of the accommodation. The Government will not be liable for business matters of visitors to Berlin from the tax, it is not clear how the government will distinguish between ordinary tourists and businessmen. Tourist tax is very common in major European cities, especially in Rome, Florence and Barcelona. 1991-2004 Russian tourists had to impose medical expenses, but was later canceled

Thursday, April 25, 2013

Greece revisit the old debt, claims hundreds of billions of World War II reparations to Germany


Russia RT television reported that the Greek government has officially announced that Germany will seek compensation for damages caused by the Nazi occupation of World War II, will amount to 162 billion euros. This may lead to further tension of these two euro-zone countries.

Greece, local media revealed in early April, the Ministry of Finance report showed that Greece that Germany owes 162 billion euros, including Germany in 1941 to the end of the war, during the occupation of Greece caused € 108 billion infrastructure losses, as well as Greece to Germany 540 100 million euro interest-free loans.

European austerity may be the end


European countries are growing differences on the austerity policies. Local time on April 22, European Commission President Jose Manuel Barroso made it clear that countries in recent years and the implementation of austerity measures in order to fight against the financial crisis in Europe has reached its limit.

Some analysts believe that Jose Manuel Barroso issued a statement at this time, apparent in a tendency to abandon austerity policies. This behavior may get the support of the state led by France against austerity policies, but it can also be caused by the opposition of Britain, Germany and other countries to support the austerity policy.

Austerity policies do more harm than good

The primary means of tightening through high interest rates to reduce the circulation of currency in the market. The implementation of this policy requires a very strong wrist and flexibility when the country is in economic crisis, austerity policies have considerable possibility of increasing unemployment, leading to more decline in the troubled economy, tax reduction.

Adhere to the austerity policies of countries led by the United Kingdom and Germany.

EU summit in February this year, under the auspices of the German Chancellor Angela Merkel and British Prime Minister David Cameron, European Budget from 1 trillion euros to 960 billion euros, cut part includes the € 1,000,000,000 expenditures of the EU institutions in Brussels, as well as originally used to stimulate the growth of cross-border infrastructure. Germany insists on fiscal austerity, and that any deviation from the policy of reducing the deficit will lead to an increase in the debt burden, lead to turmoil in financial markets again.

Germany this support austerity attitude, Fudan University Centre for European Studies, Professor Ding Chun explained to the "International Finance" reporter, Germany and Britain insist States austerity, in fact, in order to avoid their own for the other countries of the European Union financial nothing deficit aftermath. At the moment Barroso announced to abandon its austerity policies, but also the very moment quite upset.

The biggest problem is not austerity

Tuesday, April 16, 2013

Decline of Detroit: vacant Building become a nest

"What a beautiful brick house, they have been abandoned for many years, the entire district are dead." Looking barren Community, a native of Detroit, Mike Hawley kept shaking his head.

For decades, the decline of the automotive industry and an unprecedented outflow of population, coupled with the complete collapse of the real estate market in recent years, Detroit was in serious financial crisis. Once the most prosperous manufacturing center of Detroit, today's decline is shocking. Recently, this reporter walked into the city, feeling helpless lives of ordinary people in the shadow of the crisis, explore the root causes of the crisis behind the truth.

Vacant for many years the building became a nest, pigeons freely out from the broken windows

The Americans nicknamed "Motor City" Detroit, it was fame automobile capital. One of the three major U.S. car company General Motors world headquarters is still located in the center of Detroit. In addition, the two companies - Ford and Chrysler headquarters is also located in the suburbs of Detroit.

Riverside's central business district in Detroit, up to 73 layers of the General Motors headquarters building - the Renaissance Center, and some financial institutions, accounting firms, casinos and other buildings still tell the city to its former glory. In addition to the city center also slightly vitality, Detroit, the rest of those who languished scene. Numerous high-rise buildings vacant. An old man said, pointing to the city center in a vacant building for many years, you see that there have become a nest, pigeons freely out from the broken windows. Woodward was on both sides of the street in the heart of Detroit, who have represented the many landmarks of Detroit's most glorious era, some have been demolished, no demolition has been vacant for many years, has become the urban explorers and graffiti artist's paradise.

Out from the downtown area, into a piece of abandoned residential area is like to experience the ruins of war. Disorder, outsiders generally not dare to enter. Taxi drivers, led by Holly, the reporter walked into the many communities in the eastern part of Detroit, was once a middle-class residential areas, Today, these standards garden houses single-family residential, a one to be discarded , and some still preserved better, and some had almost collapsed, there are many to be arson, only ruins. These neighborhoods where there are few people stick with their lives in the shadow of the high crime rates. The reporter has to pass three houses are hung in front of faded puppet. Holly said, those houses have been occurring in the murder of people in order to mourn the dead.

The problem has become, the international financial crisis further into the abyss Detroit

"Detroit today's crisis is the economic downturn in decades, population loss and tax base and the destruction of the results." Wayne State University in Detroit, "the revitalization of Detroit talent Project Director Robin Boyle told this reporter, Detroit fell into a corporate move out of the loss of population, the sharp drop in government revenue, the vicious cycle of deteriorating security, fire, education, health care, infrastructure and other public services.

Heyday in the 1950s, Detroit's population has reached more than 180 million people, the U.S. top five cities today, the population dropped to about 710,000. Famous Detroit automotive industry, the remaining two fairly decent car assembly plant, a Chrysler Jeep factory production, the other is generic factory for the production of electric cars, Detroit's only two manufacturing plants, employment of less than 1 million people. The reporters found in the east of the city of Detroit Chrysler plant. The fenced factory became a local manufacturing island, empty residential areas outside the plant. Chrysler plant is only separated by a wall, a large auto parts factory closed down a few years ago.

The Detroit City hollowing contrast, the rise of satellite towns. Wayne State University assistant professor of the Department of Urban Studies and Planning Ding Detroit "suburbanization" phenomenon likened to a filtration process: the rich and the middle class continue to move to the suburbs, leaving the less educated and the poor in the city , leading to the impoverishment of the entire city. Of Detroit families median annual income of only $ 26,000, and close to the poverty line in the United States. In addition, due to the civil rights movement of the 1960s triggered by the tense race relations, in particular the 1967 riots resulted in today's Detroit residents in the city, 90 black, suburban, 90% white, forming a de facto apartheid.

Ding believes that "a single economic structure, ethnic conflicts and contradictions of powerful labor unions and the employers, and the entire metropolitan area is the lack of co-ordination" the Detroit problem has die-hard, the recent international financial crisis has further Detroit into the abyss. He predicted that the population will continue to diminish in the next few years, Detroit.

Ding's research shows that this wave of pre-crisis, Detroit, housing prices peaked in 2003, when the average price is $ 100,000 Each, and now the most common transaction price is about $ 7,000 Each. The real estate market collapsed, cut off the source of wealth of the Detroit city government, because the property taxes are the main sources of income of the local government.

The new Detroit family, they bet on Detroit tomorrow

The 55-year-old Dean Smith fled nearly 60 years one of the more than 100 million people of Detroit in 1978, he moved from the city to the Detroit suburb of Berkeley City. He said that people follow the jobs go, the suburbs safer, cleaner, better schools. Another point, the low cost of living in the suburbs.

Now, the city of Detroit hardly a decent shopping center, only a few small food shops, is not only expensive, but the quality is not reliable. Holly said, the city plagued by drugs, gambling, alcohol and other issues. Holly's stepfather was fired because of drug use. Today, Detroit still has three large casinos. Poverty did not prevent some Detroit to gamble, Holly said, even can only cast a penny slot machines in the casino.

However, it was Detroit did not despair. Work in the Government of the State of Michigan Brian Connors 3 years ago moved to live in downtown Detroit, he told reporters that the recent emergence of "new Detroit family like him well-educated, higher-income people move to the city . " In downtown Detroit and Wayne State University Medical Center and the concentration of a number of small technology companies in the city ", the housing market appeared to pick up. , Hawley said the negative when asked whether they intend to move out with the flow. "I want to stay here, I bet the future of the city."

The problem is structural, not just government mismanagement

In response to the shrinking of the city, Detroit government announced in January this year, a city of the future development of strategic planning. Professor Boyle said Detroit's challenge is long-term, the problem is structural, not just government mismanagement. Detroit City area of nearly 200 square kilometers, government finances have been unable to maintain such a big city. He believes that Detroit can no longer "peanut butter and put it on the whole slices of bread, but to focus its resources together, selected several target area, providing high-quality public services, the formation of employment centers, attractive to work, live .

Currently, the U.S. manufacturing sector is recovering, once fell into bankruptcy, GM and Chrysler restructuring to return to profitability. However, the recovery of the U.S. auto industry, in terms of taxation, employment and locals almost nothing to help, "said Professor Boyle. Ding also believes that engage in the manufacturing sector in the city of Detroit has no advantage, the U.S. manufacturing sector from the city to the suburbs, flowing from the north to south, from the United States to Mexico, China and other emerging market countries, the trend has been difficult to reverse.