European Super Markets: : Carrefour Buoyed by France, Spain - by Christina Passariello

French retail giant Carrefour reported improved fourth-quarter sales in France and Spain, two of the countries hardest hit by European's economic slowdown, but doubts remain if the turnaround is solid.

Carrefour said Thursday that fourth-quarter sales rose 3.2% on an organic basis, stripping out exchange rate fluctuations, acquisitions and disposals. On a reported basis, sales fell to €22.2 billion ($30.2 billion) for the period—down from €22.85 billion a year earlier as a result of weaker currencies in Brazil and Argentina. Carrefour competes with Tesco PLC for the title of world's second-largest retailer behind Wal-Mart Stores. 

 

Sales grew faster in France than in any quarter since 2007, Chief Financial Officer Pierre-Jean Sivignon said. Stripping out gasoline sales, sales in Carrefour's biggest market grew 1.7%. "We had good momentum in all our formats," Mr. Sivignon said, from hypermarkets to convenience stores. 

Carrefour's performance in France has been at the core of Chief Executive Georges Plassat's strategy since he took the helm of the company over a year and a half ago. The mantra in the sector is that a retailer must be strong in its home market before it can succeed abroad. Mr. Plassat has revived Carrefour in France with a clear emphasis on low-prices and store renovations.

Yet analysts fixated on the fact that the French sales increase was lower than its third-quarter comeback, when sales rose 3%. "Sales at hypermarkets were slightly disappointing," said Citigroup nalyst Alastair Johnston. Mr. Sivignon said sales in November lifted the entire fourth quarter.

In Spain, Carrefour logged 1.2% sales growth in the fourth quarter—the first time it has moved into positive territory in "many years," said Mr. Johnston. Spanish consumers significantly cut back on their shopping bills during the country's economic crisis. At the end of last year, some got extra spending money: the payment of Christmas bonuses to civil servants that were suspended in 2012—which Carrefour said boosted its sales.

Further abroad, Carrefour had stronger growth in Brazil, its second-largest market.

Sales increased 6.8%, excluding the heavy penalty of a weak Brazilian real. Carrefour opened several new stores and is considering listing its Brazilian unit on the local stock market to finance further expansion, Mr. Sivignon said. "We will grow in Brazil and an IPO is one of the items we have in our toolbox to finance expansion in the coming years," he said.

But sales in China, long Carrefour's second growth engine alongside Brazil, didn't shine. Carrefour cited a "slowing consumption environment" for its 3.1% drop in sales at stores open at least a year. "Asia saw the most disappointing performance," said Sanford Bernstein analyst Bruno Monteyne.

Read more: Carrefour Buoyed by France, Spain - WSJ.com

EU Millitary Cooperation: Finland in 200 million-euro used tank deal with the Netherlands

 The Finnish Defence Forces will upgrade its rolling stock with used tanks from the Netherlands. The new equipment will be delivered in 2015.

The military deal will see Finland purchase 100 used German made Leopard 2A6 battle tanks for 200 million euros from the Netherlands.

Finnish army officials are well-acquainted with the model, since it has been using 139 older Leopard 2A4 tanks. The vast majority of the older model tanks were acquired used from Germany between 2002 and 2004; more were purchased in 2009.

Colonel Jukka Valkeajärvi said that the newer 2A6 tank has far better performance capabilities than the older model.

“We’re talking about two completely different tanks. Roughly said, the current tank is quite good, but its performance is not quite what it should be nowadays. This 2A6 model is a 21st century tank,” Valkeajärvi added.

The army colonel would not say what would become of the older stock, as a separate decision needs to be made on its fate. Older tanks acquired from the former Soviet Union and Germany were taken out of use to make way for the Leopard 2A4 tanks.

Note: It would be fascinating to know what use Finland can have for these old Dutch tanks. Certainly not to stop Russian tank forces. Anyway, it seems the Dutch must be laughing all the way to the bank 

Read more: Finland in 200 million-euro used tank deal with the Netherlands | Yle Uutiset | yle.fi

Europe tightens up financial market rules - but Britain once again "odd man out"

The Europe Union is to tighten regulation of financial markets under a deal to prevent any repetition of the rampant speculation which helped bring down banks and crash the global economy.

After two years of tough talks, the European Parliament and negotiators for the 28 member states agreed a deal in principle that sets new rules to regulate the market, known as MiFID II.

"These new rules will improve the way capital markets function to the benefit of the real economy," said the EU's Financial Markets Commissioner Michel Barnier.

"They are a key step towards establishing a safer, more open and more responsible financial system and restoring investor confidence in the wake of the financial crisis."

Barnier first pushed for the new rules in 2011 at the height of the eurozone debt crisis which was sparked by the 2008 global financial crash.

They aim to curb speculative trading in commodities and to regulate high-frequency trading so as better to protect investors and make the markets less crisis prone.

They will apply to investment firms, market operators and services providing post-trade transparency information in the European Union, a parliament statement said.

They will notably force market players to buy and sell financial instruments on regulated markets comparable to stock exchanges to ensure that all trading is tracked by MiFID.

 

International aid group Oxfam welcomed the deal but warned of the dangers of exemptions, especially for Britain which is home to one of the world's largest financial markets in London.

"Today's decision marks a good start in tackling 'gambling' on food prices which are a matter of life and death to millions," Oxfam said.

But "the deal is far from perfect," Oxfam said." Unjustified exemptions were granted to powerful lobbies and limits will be set nationally, rather than at the European level.

"There is a real risk, particularly in the UK, of ineffective sky high limits triggering a regulatory race to the bottom between European countries," it said in a statement.

Read more: Europe tightens up financial market rules - Yahoo News

Food Quality: Netherlands is country with most plentiful, healthy food: Oxfam - by Patricia Reaney

The Netherlands nudged past France and Switzerland as the country with the most nutritious, plentiful and healthy food, while the United States and Japan failed to make it into the top 20, a new ranking released by Oxfam on Tuesday showed.

Chad came in last on the list of 125 nations, behind Ethiopia and Angola, in the food index from the international relief and development organization.

"The Netherlands have created a good market that enables people to get enough to eat. Prices are relatively low and stable and the type of food people are eating is balanced," Deborah Hardoon, a senior researcher at Oxfam who compiled the results, said in an interview.

"They've got the fundamentals right and in a way that is better than most other countries all over the world."

Oxfam ranked the nations on the availability, quality and affordability of food and dietary health. It also looked at the percentage of underweight children, food diversity and access to clean water, as well as negative health outcomes such as obesity and diabetes.

European countries dominated the top of the ranking but Australia squeezed into the top 12, tying with Ireland, Italy, Portugal and Luxembourg at No. 8.


Read more: Netherlands is country with most plentiful, healthy food: Oxfam | Reuters

EU Immigration Policies: EU official accuses UK of spreading ‘myths’ and telling tales about immigration

In a scathing attack on the UK’s immigration policy, a UN official has slammed London for peddling “myths” about an “invasion of foreigners”. Viviane Reding, vice president of the EU Commission, said the scare tactics are part of a strategy to win votes.

Speaking on a webchat on EU citizenship, Reding said British politicians were putting the future of the UK in jeopardy for the sake of their political ambitions. She warned that the political rhetoric about the impending arrival of a wave of migrants, who will take jobs and leech off the welfare system, was a “myth”
 
“Most of the things which are told to the people in Great Britain are myths, [and] have nothing to do with reality.", said Reding.

Reding argues that in fact the arrival of EU migrants, in fact, stimulated the UK economy, causing GDP to grow by “3-4 percent”.
 
“I am mostly frustrated about the political leaders because what is leadership if you just try with populistic movements and populistic speech to gain votes?” said Reding.

She appealed to all of the “reasonable forces” in Britain to dispel the distorted version of events that the UK government has created and explain to people what the European Union really is.

"You are destroying the future of your people, actually,” said Reding, condemning Prime Minister David Cameron’s policy of “populism” and “Euroscepticism”.
 
Reding’s come off the back of a flurry of rhetoric from EU leaders condemning new immigration policies that have been implemented by the UK government. Prime Minister David Cameron has moved to cut immigration to the UK.

Furthermore, the government is also taking measures to restrict migrants’ access to the British welfare system.

Recently David Cameron said he would like to change treaties with the EU that would allow him to cut child benefit for workers from other EU countries.


Almere-Digest

Greece takes over EU presidency

The Greek premier Antonis Samaras told MEPs of the EU Parliament in Strasbourg that his government’s economic reforms were working.

“I know that many things have been said in this room- positive and negative- about this period. But we should keep one thing here: Greece kept its commitments and honored its signature. In other words: We delivered.”

One centre-right German MEP said Greece’s economic woes would not hamper its presidency.

“I do trust Greece. I had a meeting with Prime Minister Samaras and Vice Prime Minister Venizelos, I have the impression that they have clear idea and.priorities. And I think that Greece should have a chance as every presidency before.”

But for the leader of the far-left group, scant attention is being paid to the plight of ordinary people.
UKIP MEP Nigel Farage told parliamentarians that the country was not a real democracy whilst it had to answer to the troika.

“A country in the desperate state Greece is in, and much of it because of the idiotic decision to join the euro itself, the fact that Greece has taken over the presidency of the European Union, I mean frankly it is as much as I can do to stop myself laughing.

Samaras said that he planned to put structrual reforms to boost jobs and growth at the heart of his agenda over the next six months.

Almere-Digest 

Google: Questionable Anti-Freedom of Speech action by Google after it blocks Dutch Politician 'Geert Wilders' account

Google has deactivated the mail account of Dutch far-right politician Geert Wilders following complaints that the anti-Islam politician was using it to spread anti Islam initiative.

“Unbelievable; Google just blocked the account. It seems Mohammed Rabbae’s complaint was successful,” Wilders tweet was quoted by NL Times on Friday, December 27.

Wilders’ was referring to the complaint presented by Rabbae on behalf of the National Council of Moroccans at Google that Wilders was abusing its service.

Rabbae’s move followed many other complaints that were lodged against Wilders after he came out with his anti-Island sticker a week ago; it read “Islam is a lie. Mohamed is a criminal. The Qur’an is poison.”

The politician claimed the sticker was not meant as an action against Muslims.

After Google’s move, Wilders launched a new account where people may order his sticker.

 "Regardless if one agrees with Wilders or not, but this action by Google is unheard of in a democratic country like the Netherlands or for that matter any EU member state as it relates to secularism and freedom of speech" said a member of the Dutch CDA political party.

Almere-Digest