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Terra Botanica, a Theme Park in the ‘Garden of France’

diane — Thu, 29 Jul 2010 08:00:58 +0000

In the darkness, my wife screams, then, as I rush to the rescue, starts to laugh. She has been captured by a giant Venus flytrap – but this particular carnivorous plant is made of plastic.

We are at Terra Botanica, a new attraction in France’s Loire Valley. This is a very French dish, for which the recipe is intriguing: a chunk of Kew Gardens, slices of the Chelsea Flower Show, spoonfuls of the Natural History Museum and a dollop of funfair. Et voilà! Welcome to the “first theme park in Europe devoted to plant life”.

On the outskirts of Angers, what was a golf course and an airstrip two years ago is now a dazzling display of horticulture: 27 acres, 5,500 tropical trees and plants, 510 rose bushes and 5,300 shrubs, all nurtured by 20 full-time gardeners. The park has only been open since April, but wherever we look, the greenery seems to be maturing by the minute. We climb aboard an aerial pedalo and cycle through the tree canopy, peering down at intricately patterned flower beds. At ground level, we are encouraged to walk across instant lawns that have been rolled out like carpets. Ground Force would be impressed.

As for exploring the park, that is easy. Radiating from a central piazza are four themed areas: exotics; Anjou favourites; plant evolution; and the weird and wonderful. There are surprises at every turn. From the far corners of the world come walls of bamboo, a Louisiana bayou and a rice paddy. Closer to home are willows enveloping a graceful arbour, purple wisteria and herbs galore.

Much of the explanatory text, as well as maps, are in English and French. Reading both improves our language, as well as our gardening. Some jokes cut across cultural barriers: in the greenhouse, we discover that the golden barrel cactus has the same nickname in both languages: coussin de belle-mère, or mother-in-law’s cushion.

Although this is not a theme park for teenage roller-coaster fans, there is plenty for children. They can peer at worms in a glass-sided compost heap and “pollinate” poppies by catapulting yellow balls into giant flower heads. They can dig for fossils in a sand pit and measure the rings of a tree to discover its age.

The closest to a white-knuckle ride is the Journey to the Centre of the Plant. Strapped into our seats, we take a short but spectacular trip. Following a cartoon droplet of water, we fall from cloud to Earth and are then sucked up through the roots of a tree. Our seats rock and roll, virtual ants tickle our feet and we zoom through the trunk, eventually landing on a leaf.

Unlike most theme parks, Terra Botanica is a reflection of its location. Maine-et-Loire, usually referred to as Anjou, is known as the Garden of France. In its temperate climate, orchard fruits and vegetables thrive and vineyards carpet the rolling countryside. The area is France’s leading producer of everything from apples and hydrangeas to bedding plants and bulbs. No wonder there are gardens everywhere: classic gardens in a score of Loire Valley châteaux and manor houses; the largest Japanese garden in Europe at Maulévrier; and more than 1,000 rose varieties in Doué-la-Fontaine. In Angers itself, medieval-style parterres, topiaries and a physic garden soften the imposing walls of the 13th-century castle; the 200-year-old Jardin des Plantes is a public park.

Terra Botanica is a standard bearer for environmental reforms: green thumbs up for water conservation; thumbs down for pesticides. The park even has a fine eco-café, Veri Fraîch (spot the French pun), created by chef Pascal Favre d’Anne.

Michelin rosettes have sprouted in Anjou in the past five years as fast as Terra Botanica’s flowers. Chef Pascal’s own Michelin-starred restaurant enjoys grand views of the Angers skyline across the River Maine. In 2006, his menu featured 100 per cent French produce: “Now it is 95 per cent Anjou produce.” He aims to source everything locally – “Except cheese. I am from the Savoie,” he explains with a smile, “so I always serve great Savoie cheese.”

Like any new garden, Terra Botanica is still a “work in progress”. Growing and changing by the day and season, this French version of a theme park looks set to be a blooming success.

Story from Telegraph

EU Property Sales Still on the Increase

diane — Wed, 28 Jul 2010 08:00:49 +0000

The growth in European real estate transactions continued to rise in the Q2 despite investor uncertainty over the sovereign debt crisis.

Separate sets of figures from Cushman & Wakefield and DTZ both showed transaction volumes increased compared with the previous quarter.

Cushman & Wakefield reported that deal volumes in the second quarter stood at €25.2bn, a 19% increase on the first quarter, while DTZ said investments totalled €21.4bn, representing a growth of 11%.

According to the reports the core markets of France, Germany and the UK dominated transactions, accounting for 64% of all deal volume. They also noted that buying demand had spread to new areas, especially Norway and Sweden.

Central and eastern European markets had also returned to favour during the quarter, with volumes rising 61% (versus a Western European increase of 16%), led principally by Poland, Russia and Turkey.

Story from OPP

France and Germany Urge Tougher Measures for Deficit Offenders

diane — Tue, 27 Jul 2010 08:00:51 +0000

France and Germany urged the European Union on Wednesday to impose tougher sanctions on serial budget deficit offenders, including stripping them of their voting rights in the euro zone.

The Franco-German proposal, made in a joint letter and approved by a French cabinet meeting attended by German Finance Minister Wolfgang Schaeuble, forms part of European efforts to repair damage from the Greek debt crisis along with bank stress tests due to be published on Friday.

“We’re sure that these bank tests and measures such as deficit cutting and tougher rules for the Stability and Growth Pact will allow us to restore confidence … in the stability of Europe and the stability of the euro,” Schaeuble told a joint news conference with his French counterpart Christine Lagarde.

The document, addressed to European Council President Herman Van Rompuy, added little to proposals already made by the European Commission and Germany, many of which have already been endorsed in principle by EU finance ministers.

They called for tougher penalties, including a temporary suspension of the euro zone voting rights of a country in persistent breach of the EU’s budget deficit limits, but acknowledged that this may require a change in the EU treaty.

“In the short term, a non-binding political alternative could take the form of a political accord that could allow euro area member states either to bar an offending Member State … from taking part in specific votes … or to make a political commitment to neutralise the effect of that member’s vote,” the letter said.

States that failed to make sufficient progress on deficit reduction should be forced to make an interest-bearing deposit with the European Commission, the two countries said.

They also called for strengthening peer surveillance to ensure better budget coordination, and broader monitoring of gaps in competitiveness, structural reforms and private debt.

EU finance ministers agreed in principle on all these points in recent weeks.

TREATY REFORM UNREALISTIC

President Nicolas Sarkozy had already endorsed the German idea of suspending the voting power of a repeat budget sinner, but Paris officials say privately that anything that requires a new treaty negotiation is unrealistic, given the lengthy and uncertain ratification process.

The joint letter made no mention of German proposals, opposed by Paris, to establish an insolvency procedure for states unable to pay their debts.

However it called for the establishment in the medium term of “a credible crisis resolution framework that respects the budget prerogatives of each member state”.

Schaeuble, the first foreign government member to attend a French cabinet meeting, said he was convinced that strengthening fiscal discipline and conducting EU-wide stress tests on banks would restore confidence in the euro.

At the session with Schaeuble, Sarkozy called for France and Germany to work towards fiscal convergence, beginning with a joint inventory of the two countries’ tax and budget systems by the French Court of Auditors and its German counterpart.

The aim was that “our two governments are in a position to take decisions to move towards a necessary fiscal convergence both on business taxation and on personal taxation”, Sarkozy said in a statement.

The statement did not spell out whether the two countries would harmonise their tax rates, which are widely different.

Schaeuble made no comment on the French idea.

France collects less in income tax and far more in indirect taxation than Germany. It also has a wealth tax, abolished in Germany after a constitutional court ruling in 1995.

The overall tax burden in France amounted to 42.8 percent of gross domestic product in 2008, compared with 39.5 percent in Germany. However, French public spending is much higher at 55.6 percent of GDP in 2009 compared with 47.6 percent in Germany.

“The convergence of our fiscal systems is an essential element of our economic integration and the deepening of the European internal market,” Sarkozy said.

Story from Reuters

French Banks Pass EU Stress Tests

diane — Mon, 26 Jul 2010 08:00:47 +0000

France’s leading four banks are strong enough to face another potential crisis after passing with success Europe stress tests, Bank of France, the central bank, said on Friday.

The tested banks were BNP Paribas, Societe Generale, Credit Agricole and BPCE, the parent of investment bank Natixis.

Regulators tested the ability of 91 European banks to cope with recession and any eventual financial downturn after the Greek crisis hit markets across the bloc and on attempts to bolster investors’ confidence in the eurozone.

The tests by the Committee of European Banking Supervisors ( CEBS) with national supervisory authorities tried banks in 20 European Union countries, totaling 65 percent of banking assets held in the bloc.

“Results confirm the robustness of the French banks which are the strongest in Europe. This result was not unexpected given the encouraging results obtained from stress tests regularly conducted in France and the recognized capacity of French banks to weather the recent financial crisis”, the central bank said in a statement.

The bank said the tested four banks outlined “the excellent capacity of the French banking system to withstand stress.”

Tested banks showed an average Tier 1 ratio of 9.3 percent in 2011 under a worst-case scenario, compared with 9.9 percent at the end of 2009, it added.

The Tier 1 ratio is a major scale to measure a bank’s capital adequacy, consisting of equity, preferred shares and retained earnings. Regulators said banks needed a Tier I ratio of at least 6 percent to pass the test.

The strength of income, a low-risk structured domestic real estate exposures and diversified sovereign debt portfolios have driven higher French bank ratio and bolster their performance to withstand large shocks.

The test result showed that French banks “only suffer a limited shock” and “would have no problem financing the French economy even in conditions of severe stress,” Christian Noyer, governor of the Bank of France and member of the European Central Bank governing council, said after the publication of the result.

Story from Xinhuanet

Numbers Paying Wealth Tax Growing Despite Crisis

diane — Fri, 23 Jul 2010 08:00:07 +0000

The number of people required to pay wealth tax in France has grown by about 4% this year, despite the economic crisis.

Provisional figures from the budget ministry show 562,000 people made a wealth tax declaration by the beginning of July, up from 539,000 at the same point last year.

The final, complete figures will be published in the new year, as overseas residents living outside the EU have until August 15 to complete their return.

According to Nicolas Sarkozy, France is the last country in the European Union to impose a specific tax on its wealthiest residents, called ISF or impôt de solidarité sur la fortune. This year it is estimated to bring in €3.29bn, up from €3.13bn in 2009.

The president said in a TV interview earlier this month that there was no question of axing the wealth tax.

However he also said it was important that rich people did not leave France because of its taxation, and defended the bouclier fiscal, which caps an individual’s personal taxation at 50% of their income.

Wealth tax has to be paid by all French-resident people with total net assets that were worth €790,000 or more on January 1 (following various deductions including 30% of the value of your main residence).

The tax is also paid by people resident elsewhere who have property in France worth more than the threshold amount.

Story from The Connexion

German FM Welcomed to French Cabinet Meeting

diane — Thu, 22 Jul 2010 08:00:22 +0000

French ministers have welcomed German Finance Minister Wolfgang Schauble to their weekly cabinet meeting in a first for the Franco-German relationship.

Following Wednesday’s Cabinet meeting, Schauble and French Finance Minister Christine Lagarde were holding talks on economic and financial matters with representatives of the two countries’ central banks.

It was the first time a minister from another country has taken part in a French Cabinet meeting. Lagarde attended a German government Cabinet meeting last March.

Story from Canadian Business

Britain, France, Germany Urge EU Emissions Cuts

diane — Wed, 21 Jul 2010 08:00:01 +0000

Britain, France and Germany are urging European Union nations to agree to a 30 percent cut in carbon emissions by 2020 in an effort to combat climate change.

Britain’s climate secretary, along with the environment ministers of France and Germany wrote in a joint letter published Thursday that the EU must target a 30 percent reduction in carbon emissions from 1990 levels to stop the rise in global temperatures.

The ministers further argue the move makes good business sense because it would promote more green sector jobs and keep Europe competitive in tackling climate change.

The EU is already promising a 20 percent cut and has discussed the possibility of deepening that by 30 percent.

Story from The Associated Press

European Real Estate Investment Increases 15% in Second Quarter

diane — Tue, 20 Jul 2010 08:00:22 +0000

European commercial real estate investment turnover reached €23.5 billion in the second quarter of 2010, a 15% increase on the €20.3 billion transacted in the first three months of 2010, according to the latest data from CB Richard Ellis (CBRE).

Investment turnover rose despite the stress factors emerging in the broader capital markets, such as the sovereign debt crisis and the introduction of austerity measures by many European governments, the report shows.

Investors continue to predominantly focus on the core assets, predominantly at the prime end of the market, with the largest, most liquid markets seeing the most activity. As property investors’ concerns over issues of sovereign debt grew during the period a flight to quality seems to have intensified even further, it points out.

In the second quarter investment activity remained concentrated in the UK, Germany and France, which together accounted for 62% of the European investment total. France saw the highest growth of the three markets, with a quarter on quarter increase of 46%. The UK market saw an increase of 24% in investment activity.

Of the 27 markets covered in the report some of the smaller European countries, such as Austria, Ireland and the Czech Republic, reported the highest quarterly increases, albeit from a very low base.

However, whilst not yet fully reflected in the level of the actual deals closed, Poland and the Nordic region, Sweden in particular, are starting to emerge as a focus of strong investor demand.

‘The increased interest in the Polish and Nordic markets should not be seen as a coincidence but as evidence that investors are recognising the robust fundamentals. In light of downward pressures in most markets, low government deficits and a consequent lack of government spending cuts, these markets look very favorable,’ explained Michael Haddock, director of EMEA Capital Markets Research at CB Richard Ellis.

Another notable feature of the European investment market in the second quarter was the growing number of large deals. In Italy, for example, the €440 million acquisition of the Porta di Roma shopping centre by Allianz Real Estate accounted for a third of the country’s activity in the period.

In some markets there has been a genuine increase in large deal liquidity. Germany stands out, with 13 €100 million plus deals reported in the first six months of 2010. This performance runs alongside the UK, which has been in recovery for longer and where 25 €100 million plus deals were reported in the first half of this year.

‘With a growing number of larger transactions in Europe, we are also starting to see an increase in cross border activity. This is already evident in Germany, where cross border investment grew to 44% of the market in the first half of 2010 compared to only about 10% in the second half of 2009,’ said Jonathan Hull, executive director of EMEA Capital Markets at CB Richard Ellis.

‘The same is true of the UK, and Central London, in particular, where most buyers of €100 million plus properties have been international. Middle Eastern and overseas investors have been particularly prominent this year, concluding a number of large deals, including the purchase of Knightsbridge Estate in London for close to €660 million,’ he added.

Story from Property Wire

Air France and Flybe to Launch New Sharing Deal

diane — Mon, 19 Jul 2010 08:00:07 +0000

Air passengers in France will be able to mix and match between Flybe and Air France routes under a new sharing deal due to launch in the autumn.

The two airlines have agreed to begin marketing each other’s routes, with Flybe moving to Terminal 2 at Paris Charles de Gaulle airport to allow for easier connections.

Flybe passengers will see Air France flights listed on the website when they make their booking, giving them access to an additional five between the UK and France and seven domestic French links.

Similarly, on the Air France website, passengers will see Flybe’s 45 routes from France to the UK and connecting domestic services including Birmingham, Manchester and Southampton.

The deal should come into effect by the end of October.

Flybe chairman and chief executive Jim French said: “The codeshare brings benefits for passengers and the two airlines alike; it’s a real win-win agreement.

“For Flybe, it allows us to offer an even wider range of flights to our passengers, as well as provide superb levels of inter-connectivity that only an airline as big as Air France can offer.”

Air France chief commercial officer Bruno Matheu added: “The future co-operation with Flybe is a major opportunity for Air France to strengthen its position in the UK, Europe’s biggest market.”

The following new routes will be sold through the Flybe website. They will continue to be operated by Air France:
• Aberdeen to Paris CDG
• Birmingham to Lyon
• Edinburgh to Paris CDG
• Newcastle to Paris CDG
• Paris Orly to Bordeaux, Limoges, Nice, Perpignan and Toulouse
• Paris CDG to Brest, Budapest, Geneva, Istanbul, Lyon, Madrid, Munich, Nice, Nuremburg, Prague, Sofia, Vienna, Warsaw and Zagreb

Similarly, Air France will market the following FlyBe routes:
• Birmingham – Avignon; Bergerac; Bordeaux; Brest; Chambery; La Rochelle; Limoges; Paris Charles de Gaulle (CDG); Perpignan; Rennes; Toulouse; Belfast; Glasgow; Guernsey; Inverness; Isle Of Man; Jersey
• Exeter – Avignon; Bergerac; Chambery; Rennes
• Edinburgh – Bergerac; Limoges; Rennes
• Glasgow – La Rochelle
• Jersey – Nice
• London Gatwick – Bergerac; Limoges
• Manchester – Avignon; Bergerac; Brest; La Rochelle; Limoges; Paris Charles de Gaulle (CDG); Rennes; Belfast; Glasgow; Inverness; Isle of Man
• Newcastle – Limoges
• Paris Charles de Gaulle (CDG) – Belfast, Cardiff, Exeter, Glasgow, Jersey
• Southampton – Avignon; Bergerac; Bordeaux; Brest; Chambery ; Limoges; La Rochelle; Nice; Orly; Perpignan; Rennes; Belfast; Glasgow; Guernsey; Jersey; Isle of Man; Inverness; Leeds Bradford

Story from The Connexion

Agents Call for Clarity Over Paris Rental Fines

diane — Fri, 16 Jul 2010 08:00:59 +0000

A top international agency has welcomed the attempts by the French authorities to bring clarity to a confused law regarding owners renting out their Parisian “pied-à-terres” on short-term lets.

Talking to OPP this week, Mark Harvey, International Developments Consultant at Knight Frank said that it is “encouraging that the authorities are trying to clarify the law. These warnings from the authorities are nothing new and they have been creating a lot of confusion recently.”

Mayor Bertrand Delanoe ordered some agencies last year to warn property owners that renting out residential apartments for less than a year violated French law. The move was intended to address the lack of affordable housing in the city centre. People who ignore the warning, he said, would be prosecuted.

Overseas investors face fines of up to £21,000 under a 2005 law that says all rentals in France must be offered with a minimum one-year lease. The regulations have seen officers from the Bureau de la Protection des Locaux d’Habitation, (BPLH, or Office for the protection of residential property) acting on tip-offs from neighbours who resent constantly changing tenants.

Some argue that the only way to get around the law is to reclassify flats as commercial properties. However, this is a complicated and bureaucratic legal process which usually ends in failure, especially for foreigner owners.

“So far it has been very unpredictable as to who has been targeted,” says Harvey. “How do you differentiate between friends and family staying in the house and letting it out to holiday-makers.”

“A lot of agencies have therefore stopped accepting clients who want to buy a pied-a-terre to use for a few weeks a year and rent to the rest of the time. It’s good then that Paris setting out to get rid of the grey areas.”

There is no precise tally of how many of the 1.3 million residences in Paris are being used for short-term rentals. Industry professionals estimate there may be tens of thousands, with a significant proportion owned by foreigners (predominantly Americans, Italians and Britons) who bought them as vacation homes or investment properties.

Story from OPP

French Industrial Output Rose in May

diane — Thu, 15 Jul 2010 08:00:46 +0000

French industrial output rose 1.7 percent in May from the previous month, official figures showed Friday, but analysts cautioned that the sector’s production potential remained weak.

The May spurt followed a 0.5 percent decline in April, according to the national statistics institute INSEE.

The manufacturing sector, which covers industrial processing plants, showed a gain of 0.5 percent in May after 0.3 percent in April.

Between March and May overall industrial output rose 2.2 percent while manufacturing industry output gained 2.4 percent.

“The progression in manufacturing output for the fifth consecutive month and the rebound in industrial production confirms that economic growth in the second quarter should be better oriented than in the first quarter,” a source at the finance ministry said.

INSEE is forecasting a 0.5 percent expansion in gross domestic product in the second quarter after a weak 0.1 percent in the first three months of the year.

“In the last 12 months industrial production has re-gained half the ground it had lost because of the world financial crisis,” the ministry source said.

Economist Alexander Law of research group Xerfi agreed that the INSEE report was “clearly positive” but warned that “uncomfortable” months lay ahead.

Inventory buildup by manufacturers is winding down “without having had a major effect on growth,” he said.

“Order books are running low, the economic situation remains fragile in France and Europe and a decline in (industrial) activity in the third quarter cannot be ruled out.”

At Natixis bank, analyst Adele Renaux said: “We continue to believe that industrial production will suffer with the end of stimulus measures and in the face of plans to curb deficits and a slowdown in world trade.”

Story from AFP

France Hailed Europe’s Most Popular Bond Market

diane — Wed, 14 Jul 2010 08:00:27 +0000

French corporates are enjoying their status as Europe’s most popular bond market. Traditionally, that mantle went to Germany, whose markets are larger and more liquid. But amid sovereign debt fears across the continent, which are driving investors out of southern European bonds into French and German ones, France is coming out on top.

Covered bond sales by French banks have surged above Germany’s usually dominant market for the first time in the six months to June 30, data provider Dealogic shows.

Similarly, French non-financial companies, both investment grade and high-yield, are tapping the bond markets more than their German counterparts. The rise in French corporate issuance over German is partly down to an exercise of catch-up, after German blue chips prefunded much of their borrowing needs last year, said bankers.

But others believe France’s dominance is down to a more material shift from French companies’ reliance on bank loans to using the capital markets.

Tim Hall, global head of DCM origination at Crédit Agricole in London, said: “In my opinion, this is at least partly because the French banks have been less willing to offer below-market loan pricing and terms for domestic companies, a phenomenon which remains much more common in many other European countries. This, in turn, has forced French companies – both investment grade and high-yield – to go to the capital markets for financing in lieu of relying solely on bank financing. In the long run, this is much more healthy for the companies as it provides capital structure diversity.”

Demand from domestic investors is also accounting for a greater share of French bond sales than in the past.

Laurent Attali, head of corporate DCM at BNP Paribas in Paris, said: “French issuers have always been active in the European bond markets and French investors that are currently active in the market compose a large proportion of these issuers’ placement.”

Financial News looks at debt issuance patterns from French issuers.

• Covered Bonds

Issuance to June 30: $36.6bn (€29bn)

The French market has come into its own this year, with bank issuers selling more bonds than their German counterparts in the first six months of the year, according to Dealogic.

Jean-Luc Lamarque, global head of DCM syndicate at Crédit Agricole CIB in London, said: “French banks have noticed that it is an increasingly efficient and flexible tool versus senior unsecured bonds. They also allow the issuer to reach a different investor base, and since the beginning of the financial crisis diversified funding has been a key goal.”

Crédit Agricole sold its first covered bond in 2009, while Société Générale and BNP Paribas did their inaugural deals in 2008. Since then they have been repeat issuers in that market, and both BNP Paribas and Crédit Agricole brought benchmark deals in the last week.

While financial institutions in troubled southern European countries have been locked out of the market, there has been a knock-on effect for demand for French bank paper.

Lamarque said: “On the investor side, when you simply stop buying bonds from institutions in the peripheral countries, that leaves you with very little ‘safe haven’ paper available – and France has benefited from that.”

While some have been certain that the change is permanent, one senior banker at a US investment bank disagreed. He said: “In general, there is an element of catch-up going on as financial institutions, and even corporates, are playing catch-up after the massive amount of issuance from Germany last year.”

• Corporate investment grade bonds

Issuance to June 30: €19.35bn ($24.4bn)

French non-financial companies were the most active issuers in Europe in the first half year. They sold €19.35bn in bonds over the period, accounting for one third of European issuance, according to Société Générale research. Meanwhile, German non-financials sold €13.95bn over the same period, or 23% of the European total. In the full year 2009, French non-financials accounted for 20%, while German issuers represented 24% of the European total.

French companies have been more confident in the markets partly because the domestic investor base has become a bigger buyer of French debt. Félix Orsini, head of French DCM at Société Générale in Paris, said: “French investors, which are an important part of the global pool, had a lot of cash to invest, but have been restricted to strong companies, particularly in the domestic market. That effect really intensified after volatility hit the markets in May and we noticed that there was a strong push to cut ‘risky’ positions over a short period of time, especially among asset managers.”

As a result, the percentage of French bonds being taken up by domestic investors is running at 40% and 70%, as was in the case for French power transmission grid operator RTE EdF Transport’s benchmark bond in April. Before the eurozone crisis, investor demand for French issues averaged about 30%, said one banker.

Activity has continued this month. French gas company Air Liquide launched a liability management exercise in a deal that offers to swap €400m worth of bonds for ones with longer maturities. French cement maker Lafarge also last week issued $550m into the US market in a deal that was upsized, showing an added leg of international demand for the bonds.

• High-yield corporate bonds

Issuance to June 30: €4.3bn ($5.4bn)

It was a sign of the times that the high-yield issuer to reopen the debt markets in June, after a six-week hiatus, was French drinks company Rémy Cointreau. The company sold a €205m bond on June 25 and was oversubscribed with more than 100 accounts on the order book, according to a bank on the deal. Carmaker Renault also priced a €400m bond at the end of June, although that deal was downsized by €100m.

Hall said: “One of the principal attributes of the French bond market from an issuer perspective is diversity across sector and credit quality.”

Orsini added: “The high-yield market came back very quickly compared to what happened after Lehman, and issuers with good name recognition continue to benefit from the size of the retail bid. They were attracted by yield in 2009, but that should have dwindled over time. Those investors are still there, mainly because there is no real alternative out there.”

Story from Financial News

Britons Still Top French Property Buyers

diane — Tue, 13 Jul 2010 08:00:34 +0000

Britons remain the biggest foreign buyers of French property – but other nations are catching up.

A study by the Notaires de France on non-new-build property sold in 2009 shows Britons bought around 4,012 homes – 17% of the sales to foreigners. Italians came next (14%), then the Belgians (11%) and Portuguese (10%).

The figure is down on 2008 when Britons bought 8,030 homes – 24% of foreign sales.

This year Belgians and Portuguese saw their share of the market rise to their highest levels in ten years. The British part of the foreign sales market has dropped significantly from its peak of 40% in 2004.

In 2009, sales to foreigners accounted for 4% of the market compared to 5% in 2008.

In areas of France where at least 5% of sales were to foreigners Brits bought the most, apart from in the Alpes-Maritimes where Italians bought more.

Sales to foreigners, including Britons, were at their highest in the Riviera, Alpine skiing area Haute-Savoie, Paris, and south-west departments the Creuse, the Dordogne, the Lot and the Gers.

Other popular areas included the Côtes d’Armor in Brittany and the Manche and Orne in Basse-Normandie.

Notaire Patrick-Léon Lotthe, from Bailleul, Nord, said the drop in Britons was due to the low pound and the economic crisis – in 2009 Britons bought a third as many homes as in 2007. However he added that sales to Britons already in France had been picking up recently.

“Also, now the Euro is having some troubles, more British residents might start looking to buy here again,” he said.

The notaires registered a total 590,000 sales of non-new build property (to French and foreigners combined) in 2009, down 27%, from a high of 800,000 in 2007.

Story from The Connexion

French Banks Boost Lending to Leaseback Buyers

diane — Mon, 12 Jul 2010 08:00:19 +0000

The French mortgage market is experiencing a tightening of bank policy towards accepting clients in some sectors because the economy has slowed but current currency rates are good news for British buyers.

Leading French loan broker Athena Mortgages said that attitudes amongst many of the banks have now changed and there is more caution about lending in particular to self employed people.

‘The past 18 months have been uncertain times in which the economy has slowed considerably. This has meant a reduction in gross profit for many self employed borrower during 2008/09. The reduction when taken in context with other years of business may seem reasonable given the economic context. However, we have seen several borderline applications refused due to significant reduction in net revenues over the past month,’ explained director John Busby.

‘This indicates a returning level of conservatism on the part of the French banks which saw it almost impossible for self employed borrowers to find loans in France in the mid 1990s. For salaried borrowers, revenue will have remained constant over the period but borderline cases are harder now to pass through the bank’s lending committee,’ he added.

But with most currencies having strengthened against the Euro it is cheaper to make deposits on properties and the net cost of mortgage payments is also less. ‘The pound is at a 19 month high against the Euro and the horizon for rate increases still seems a way off and mortgage rates remain at their historic lows. So for the meantime the buying conditions in France are improving overall,’ said Busby.

There is also good news for those looking to buy leaseback properties in France. Several French lenders have announced that they will be offering 100% of the price of the property and 100% of the stamp duty and taxes, which can be up to 8% of the property value.

‘Mortgages are now available on a new build French leaseback for 104% on both a repayment basis, from 2.6%, and interest only basis from 3%. French banks will finance up to 108% for a renovated leaseback at the same rates. Some banks have increased the amount they will lend by 15% on certain French leaseback developments,’ explained Busby.

Interest in French leaseback property has been strong over the first six months of the year with many French leaseback developments selling out in record time and this is expected to boost the sector even further.

‘The number of clients searching for French leaseback mortgages increased by over 50% in the first half of 2010 compared to the second half of 2009. The number of new enquiries for mortgages for French leasebacks has remained stable in the past quarter with the number of people progressing their application increasing sharply in the last week since the Budget announcement,’ said Busby.

UK investors have sometimes struggled to secure units in the face of strong competition for apartments from their French counterparts who have the added incentive of the Loi Scellier, a tax break from the French government that allows a portion of the value of the property to be offset against income tax liability.

‘This is an unprecedented move that reflects the confidence of the French banks in the security of the investment and the developers. When you look at the return on investment for investors who have put very little money into a property purchase, even with minimal growth, the returns are impressive,’ he added.

Story from Property Wire

Alitalia Joins Air France-KLM and Delta in Joint Venture

diane — Fri, 09 Jul 2010 08:00:22 +0000

Italy’s flagship carrier Alitalia has joined Air France-KLM and Delta Air Lines in their trans-Atlantic joint venture that will result in more flights between key cities in the U.S. and Europe, the airlines announced Monday.

Launched in April 2009, the joint venture created a coordinated network for customers flying across the Atlantic, allowing the member airlines to share revenues and costs.

With Alitalia’s addition, the joint venture represents about 26% of total trans-Atlantic capacity, with annual revenues estimated at about $10 billion, according to Delta.

The member airlines will offer nearly 250 daily trans-Atlantic flights, including 20 flights daily from Rome and Milan to five U.S. cities.

Rome joins Amsterdam, Atlanta, Detroit, Minneapolis, New York JFK and Paris Charles de Gaulle as the hubs of the joint venture. The airlines can offer customers codeshare service in the network for “seamless airline-to-airline connections,” the carriers say.

The four airlines are already part of the wider SkyTeam alliance. Air France-KLM is also the largest single shareholder in Alitalia after a 25%-stake purchase last year, according to the Associated Press.

But the joint venture does not signal an eventual Alitalia merger with Air France-KLM, according to Alitalia CEO Rocco Sabelli at a news conference in Rome. The deal “has the same benefits as a merger but maintains the companies separate as long as it makes sense. There is no plan for a merger,” he said.

Story from USA Today

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