NEWS COVERAGE - FRANCE

ECONOMY AND BUSINESS NEWS FROM THE PAST WEEK

10 of March 2014 Business Sweden, Paris

THE PAST WEEK

Two bids for SFR Numericable and Bouygues Net result drop for the CAC40 2013 Dropped 9.4% compared to 2012 to 47 billion The combined turnover stable at 1.268 trillion euros Carrefour Will accelerate investment in France and key emerging markets After a jump in profitability. Increase capital expenditure this year to 2.4bn-2.5bn to speed up store makeovers While also pushing deeper into Brazil and China. Slight decrease in the unemployment rate

-0.1% in Q4 2013

BUSINESS SWEDEN

10 MARCH, 2014

THE EUROPEAN COMMISSION DECIDED PLACES FRANCE UNDER ENHANCED SURVEILLANCE

Reasons: The level of debt exceeds 95% of GDP The Commission considers that the French budget deficit is expected to be around 4% of GDP this year, not 3.6% as expected by the government. Brussels also criticized France's lack of competitiveness and high labor costs "This is a friendly way to say to France that it must act, and quickly. In June, it will be too late said a European source. The risk is that France finds "exposed to turbulence in financial markets, which would have an impact on the real economy" said the Commission. Theoretically, France is liable to sanctions if it fails to meet its deficit targets and structural adjustment for 2013 and 2104. Such a scenario is however excluded in Brussels for the moment.

BUSINESS SWEDEN

10 MARCH, 2014

RUSSIA A BIGGER RISK THAN UKRAINE

FRENCH AND SWEDISH INTERESTS IN UKRAINE AND RUSSIA
The trade surplus with Ukraine last year reached 334 M But what worries the French groups is that the economic relations between France and Russia gets worse. French banks, almost absent in Ukraine have a foot in Russia. Especially Socit Gnrale, Russia is its second largest market after France. Their stock finished 5.43% down on Monday at the Paris Bourse. Its competitor BNP Paribas has created a joint venture with Sberbank in consumer credit , Cetelem Bank, and has UkrSibbank (2 million customers ) in Ukraine. 18 billion trade between France and Russia The Swedish banks have very little exposure to Russia and Ukraine. The exception is Nordea Around 40 percent of Russia's 100 largest companies are included in Nordea's customer base and the bank is considered one of the nation's 25 largest banks.

Nordea, have around 57 billion in loans to Russian households and Russian companies
Other big banks have only representative offices in Russia to serve their corporate clients. If the EU, takes a decision to freeze Russian assets as a result of the country's involvement in Ukraine, it is not unlikely that Western assets can be frozen or that foreign-owned firms are prevented from operating in Russia.

BUSINESS SWEDEN

10 MARCH, 2014

START UP'S, THE FRENCH WANTS TO CHANGE IMAGE

When in Silicon Valley Franois Hollande promoted the creation of a "French Tech" movement France still suffers from an image on the sector deficit. "This is a real issue of communication. There are still a form of condescension toward the French. notes Stphane Distinguin. The French Tech Hub hopes to generate $ 1 million in revenue by next year and advise sixty companies per year. Another to open in Boston and discussions have begun to export the concept to Shanghai.

The state label mission is to invest in businesses and coordinate initiatives to support the start-ups Made in France on the other side of the Atlantic.
Several years ago other countries did the same (Germany, Switzerland) in Silicon Valley "The companies needs to go through the U.S. market, says Sabine Enjalbert, Executive Director of the Regional Development Agency for Paris Ile-de-France

BUSINESS SWEDEN

10 MARCH, 2014

SOURCES
THE PAST WEEK

http://www.lesechos.fr/economie-politique/monde/actu/0203335802433-matteo-renzi-l-homme-qui-voulait-gouverner-a-tout-prix-652544.php http://tempsreel.nouvelobs.com/economie/20140223.OBS7381/un-g20-consensuel-sur-la-croissance-et-l-evasion-fiscale.html http://tempsreel.nouvelobs.com/politique/20140221.OBS7206/montebourg-fait-renaitre-une-compagnie-nationale-des-mines.html http://www.lemonde.fr/europe/article/2014/02/25/zone-euro-la-commission-prevoit-une-reprise-plus-robuste_4373104_3214.html

UE

http://www.lefigaro.fr/emploi/2014/01/28/09005-20140128ARTFIG00530-chomage-hollande-a-ete-rattrape-par-la-dure-realite-des-chiffres.php http://www.lemonde.fr/politique/article/2014/02/21/montebourg-confirme-la-renaissance-d-une-compagnie-nationale-des-mines_4370825_823448.html http://www.lexpress.fr/actualite/politique/ps/chomage-hollande-et-sa-majorite-cherchent-leurs-mots-pour-dire-l-echec_1318317.html UKRAINE RUSSIA

http://www.svd.se/naringsliv/pengar/nordeas-rysslandsutlaning-delar-experter_3324416.svd http://www.svd.se/naringsliv/ukrainas-ekonomiska-utmaningar_3302154.svd?sidan=9 http://www.lesechos.fr/entreprises-secteurs/finance-marches/actu/0203348373071-inquietude-pour-les-banques-francaises-exposees-654238.php http://lexpansion.lexpress.fr/actualite-economique/crise-en-ukraine-ces-groupes-francais-qui-ont-quelque-chose-a-perdre-ou-a-gagner_1497327.html http://www.lemonde.fr/economie/article/2014/03/04/des-sanctions-contre-moscou-nuiraient-a-l-activite-des-banques-francaises_4377170_3234.html http://www.lemonde.fr/economie/article/2014/03/04/une-aggravation-du-conflit-en-ukraine-peserait-sur-la-reprise-mondiale_4377166_3234.html START UPS

http://www.lesechos.fr/entreprises-secteurs/tech-medias/actu/0203345078188-start-up-la-france-veut-changer-d-image-654188.php

BUSINESS SWEDEN

10 MARCH, 2014