The Fiat-PSA agreement loses ambition but also uncertainty | Opinion

The marriageable couple Fiat Chrysler Automobiles (FCA) and Peugeot maker PSA can finally walk down the aisle. The Jeep maker has agreed to cut a huge dividend linked to its planned merger by nearly half, but its shareholders will get more savings and shares in parts maker Faurecia. The change will boost the balance of the future Stellantis group and will eliminate the anguish that persists in the operation.

Moderation in the Covid-19 era makes sense on multiple levels. By reducing an originally planned 5.5 billion payment to € 2.9 billion, Fiat admits the inevitable: that it needs to preserve cash in the pandemic.

It also eliminates the threat of a challenge from PSA shareholders to the terms of the original deal. Fiat has been burning cash in the crisis. Paying himself a huge bonus would also have been odd after he obtained a € 6.3 billion loan backed by the Italian state, the biggest help of the crisis for a European carmaker.

Fiat shareholders are being compensated by other means. Under the terms of the revised deal revealed Monday, PSA will distribute its 46% stake in auto parts maker Faurecia to all Stellantis shareholders, rather than just PSA’s. This means that FCA investors will get 50% of that stake of around 2,500 million euros of current market value, or almost 1,300 million, in addition to the 2,900 million euros of cash dividend.

Even adding Faurecia shares, Fiat investors appear to be € 1.3 billion short of the original dividend plan. But they can get an optional dividend of 500 million later. And they have been promised that their share of the annual savings will be worth at least 5 billion euros, more than originally estimated at 3.7 billion euros and that it will amount to about 35 billion once they are taxed and capitalized.

Tuesday’s rally in Fiat shares reflects in part the fact that its shareholders could have expected a stronger blow to send the ball of the deal flying over the net. But it is also driven by much greater confidence in its completion.

At current market prices, the merger spread between the two stocks has dropped below 4% from almost 12% prior to the announcement of the deal. That’s the value of removing a large dose of distress.

The authors are columnists for Reuters Breakingviews. Opinions are yours. The translation, of Carlos Gómez Down, it is the responsibility of Five days


Wall Street crashed, unease returns to global markets

The Bag New York tied its third straight decline, as its major stock indices plummeted more than 2%. Tech stocks, which a few weeks ago pushed Wall Street to record highs, are now pulling down. The S&P 500 Index fell 2.8%, the Dow Jones fell 2.2% and the Nasdaq lost 4.1% .╠

Tech stocks had flown on Wall Street, also boosted by intense activity in the stock options market of big tech companies. The operation allows financial investors to generate huge profits on a security, without having to pay for its entire value. The condition is that the stock continues to rise. But if the trend reverses, the decline is quick and steep. That’s what happened last week, when Apple shares fell 3.1% .╠

The flight to quality caused the 10-year Treasury yield to close at 0.67%, up from 0.72% on Friday.

The energy sector shares also posted heavy losses, due to the fall in crude prices fell. The US crude price (WTI) fell $ 3.01 to close at $ 36.76 per barrel. The Brent blend lost $ 2.23 to $ 39.78 a barrel. This drop came after Saudi Arabia cut its October sales prices and Covid 19 cases rebounded several times. countries.

Coronavirus cases are increasing in India, Britain, Spain, and various parts of the United States. The rebound could weaken the global economic recovery and affect fuel demand.

Argentine stocks listed on Wall Street managed to weather the collapse of the US markets. On the Buenos Aires Stock Exchange, for its part, the S&P Merval index lost only 0.5%, after falling at the beginning of the round to almost 3% .╠

After Argentina managed to restructure foreign debt for $ 66,000 million and securities under local legislation for another $ 41,000 million, investors are expectant about the price of the new bonds. Those securities began trading in full yesterday, due to the fact that the Labor Day holiday in the US was celebrated on Monday. They debuted in New York with a yield above 11%. The exit rate was slightly above the 10% projection made at the time of closing the deal with creditors. Analysts estimated that it will settle towards that theoretical value.

The volume traded in bonds in the local market was less than a figure equivalent to US $ 2,000 million, in a context in which three-quarters of the operations were concentrated in the brand new Bond 2030. This last security traded at 6,320 pesos, with a rise of 0.8% in the local market compared to the day before. In New York, meanwhile, the global 2030 had a yield of 11.5%, while in 2038 it was 12%, and the title 2046 , 12.5%. For its part, the 2035 bond had a yield of 11.6%.

“The new titles at the moment have a limited volume,” said Joaquín Candia, analyst at Rava Bursátil.╠

The positive position of the country’s yield curve had not occurred since mid-2018, when the market turned around and the risk of default became increasingly real. The bonds in dollars under local law operated with lower yields than those issued under foreign law, since they moved with rates between 10.5% and 11.5%, showing a lower risk than international bonds.

The country risk prepared by the JP Morgan bank rose 33 units, to 2,150 basis points, pending a reconfiguration of the index with the new titles


Quarantine only 5 days instead of 10? Federal Councilor Berset and the cantons warn – Switzerland

For the second time since the summer break, Federal Councilor Alain Berset met with the cantonal health directors yesterday. Not only were discussions about major events, the next ski season and the question of testing, but also about: How long should the quarantine last?

In Switzerland there are two reasons that lead to a quarantine obligation. In quarantine, …

  • … who has had close contact with an infected person. According to the BAG, “close contact” means that someone has been in the vicinity – a distance of less than 1.5 meters – to an infected person for more than 15 minutes without protection (hygienic mask or physical barrier such as Plexiglass).
  • … who comes from a risk country, more precisely: who has been in a state or area with an increased risk of infection within the last 14 days, according to the list of countries by the FOPH. “Then you are obliged to go directly to your apartment or other suitable accommodation immediately after entering the country,” says the BAG information sheet.

There are currently around 12,000 people in quarantine

Ten days – that’s a long time. This period, which has been in place since April, means that the quarantine is often not followed. That is forbidden, but it happens anyway. There are currently around 12,000 people in quarantine in Switzerland. There are no numbers on quarantine objectors.

The epidemiologist Nicola Low, member of the federal Covid task force, said in the NZZ that a shorter quarantine could encourage people to follow the rules better. She pointed out that the actual quarantine time for most of those affected is already less than ten days. Because the count starts from the day of the last contact with a contagious person.

Signs indicate the obligation to quarantine for women returning from risk countries.  Here is an example from the canton of Zug.  (Archive image)

Signs indicate the obligation to quarantine for women returning from risk countries. Here is an example from the canton of Zug. (Archive image)

So should the quarantine officially be halved to five days – as suggested in Germany by the well-known virologist Christian Drosten? The Bern health director Pierre-Alain Schnegg (SVP) showed sympathy for this proposal. Also with a view to other countries. France has announced that the quarantine will be shortened from 14 to 7 days.

The wrong signal in view of the increasing number of cases

But Switzerland will maintain its ten-day quarantine, which is clear after Alain Berset’s meeting with the cantonal health directors yesterday, as the CH Media editorial team learned. Also present: the Zug Cantonal Doctor Rudolf Hauri, President of the Association of Cantonal Doctors. In view of the increasing number of cases, so the tenor of the meeting, an easing now would be the wrong signal. The Aargau government councilor Jean-Pierre Gallati (SVP) says:

According to Gallati, figures from Aargau show that the risk is still too great after five days. According to the canton doctor, around half of them are still at risk of infection afterwards.

Against quarantine shortening: Aargau government councilor Jean-Pierre Gallati.

Against quarantine shortening: Aargau government councilor Jean-Pierre Gallati.

That is the key question: how long is someone contagious? The decisive factor is the incubation period, i.e. the time between infection and the onset of the first symptoms. According to the World Health Organization, it is five days on average. Virologist Drosten said in his podcast that new data would show that five days after the onset of the first symptoms, around 90 percent of those infected are no longer contagious. But the studies on this are contradictory.

That is why the federal government and the cantons play it safe and leave the 10-day rule unchanged. The Aargau government councilor Gallati previously deviated from the recommendations of the federal government – the cantons are allowed to do this in certain cases – but here it is clear to him:

Incidentally, anyone who has symptoms is not just quarantined, but isolated. Their duration depends on the test result. If this is positive, the responsible cantonal office will intervene and issue instructions.


Politics with psychological tricks: This is how the federal government wants to turn the Swiss into model citizens – Switzerland

You are eating too much chocolate. Sitting around too much. Drink too much beer and wine. Even good citizens have their weaknesses – at least that’s what the top health officials in the country think. Although most know exactly what would be better for their health, they do not always act wisely. “An important reason for this is that people do not make many smaller and larger decisions completely rationally in everyday life”: The Federal Office of Public Health (BAG) puts it that relentlessly. Often it just has to be quick. Short-term benefits then outweigh, analyze it further. “Despite all good intentions.”

In order to turn the Swiss into healthy, sensible acting model citizens, the prevention experts at the FOPH are using new strategies – by taking advantage of their guilty conscience. Instead of prohibitions and regulations, they should be guided on the right path with little psychological tricks.

“Nudging” is the name of the instrument that is used for this; the term is English and means something like “nudge”. It’s about a new political approach. The authorities want to steer the citizens in the desired direction with nudges. These aim at subconscious behavior patterns so that a person still acts sensibly.

Such approaches could be used systematically for the first time in Swiss politics. As research by the editorial team of CH Media shows, the BAG has been trying out behind the scenes for a long time how nudging could help promote health. To do this, it has brought in leading experts.

Star economists advise the federal government on nudging

On the one hand, there are researchers from the Zurich University of Applied Sciences (ZHAW). Above all, however, the consulting firm Fehr Advice & Partners developed a “behavioral economic guide” for the federal government. The work was recently sent to experts and published on the specialist website.

The founders of the company are the brothers Ernst and Gerhard Fehr, both leading behavioral economists. According to the rankings, Ernst Fehr, who teaches in Zurich, is considered the most influential economist in German-speaking countries.

In the experts’ material, there are some ideas on how health officials could use pokes themselves:

  • If young people are informed that their colleagues drink less than they expect, they reduce their own alcohol consumption.
  • Money could be deposited in a “smoking cessation” program. If a participant fails to keep a promise to quit smoking, the sum will be donated to a charity.
  • Meat labeled “99% fat-free” is perceived as healthier than the same meat labeled “1% fat”.
  • Even mundane signs served as “behavior drivers” in order to “implement good resolutions and healthy behavior in everyday life easily and with little additional effort”. A sign could be placed next to a lift to draw attention to desirable behavior. One possible label: “Burn calories, not electricity. Take the stairs! “

Most of the suggestions are more gentle in nature. How far nudging can go can be seen in the UK. Here defaulting taxpayers were sometimes sent a photo of their car in a warning letter; combined with the warning that this could be seized if you do not pay off your tax debts soon. Or the example of California: some communities consistently inform their residents how much electricity they use compared to their neighbors.

Where exactly will the BAG use nudging in the future? On request, the authority only gives a vague statement. At the moment, workshops are looking for new approaches to promoting physical activity. “This area is particularly exciting because it is often difficult to reach less active people with classic exercise-promoting measures,” says a spokesman.

It is also known that the Federal Office for the Environment has recently launched an internal “behavioral economics guide”. Among other things, it is intended to help environmental policy measures to «improve effectiveness and efficiency».

Critics prefer to speak of paternalism

According to official reading, nudging is primarily intended to help implement good resolutions. It contains no compulsion, no regulations. It is no wonder that there is often talk of “liberal paternalism”. Skeptics, on the other hand, consider the nudges a lot more paternalistic. Citizens would be subtly incapacitated if they were induced to do something that the state considers to be their good conduct.

In contrast to clear regulations, one can hardly take legal or democratic action against nudges: SVP National Councilor Thomas Burgherr warns against this. Even before the BAG’s efforts became known, last winter it called for a fundamental debate on nudging via a parliamentary initiative. In view of the controversial discussions in politics, this is urgently needed, he believes:

The Federal Council rejects the fears. Nudges could be effective and efficient if they were inexpensive, he noted in his statement – and emphasized: “However, government nudges must be disclosed transparently.” If the citizens have to be brought to their senses, they should at least be allowed to learn how exactly this happens.


Spread Italia, the trend in real time today 27 August

On Thursday 27 August, the spread opened at 143.4 basis points, slightly up from the close of 143 on Wednesday, and ended at 142. Negative session for Piazza Affari: the Ftse Mib index closed down by 1, 44% at 19,847 points

The spread between BTP and Bund (WHAT’S THIS), on Thursday 27 August, opened at 143.4 basis points – slightly up from the 143 at the close on Wednesday – and closed at 142. The yield on the Italian 10-year bond stood at 1.02% (THE REAL-TIME TREND OF THE SPREAD). Negative session for Piazza Affari: the Ftse Mib index concluded down by 1.44% to 19,847 points. The other major equity markets of the Old Continent also all ended slightly in the red: London recorded a final fall of 0.65%, Paris of 0.64%, Frankfurt a decline of 0.71% (THE TREND OF AUGUST 28).

The trend of 26 August

Wednesday 26th August, the spread closed down at 143 basis points and with the 10-year Italian bond yield equal to 1.01%. The Milan Stock Exchange closed up. The Ftse Mib index gained 0.54% to 20,137 points. The other European stock exchanges also increased their pace at the end of the session and closed with a significant rise. Positive in Frankfurt (+ 0.98%), Paris (+ 0.8%), Madrid (+ 0.21%) and London (+ 0.14%) (THE REAL TIME TREND OF THE MILAN EXCHANGE).

Date last modified


Spread Italia, the trend in real time today 17 August

On Monday 17 August the differential, after having opened at 140.5 basis points, stable compared to the closing at 141 on last Friday, ended with a slight decrease to 138. Slightly negative session for Piazza Affari: the Ftse Mib index concluded with a -0.39% to 19.950 points

The spread between BTP and Bund (WHAT’S THIS), on Monday 17 August, after opening at 140.5 basis points – stable compared to 141 at the close on Friday 14 August – it closed slightly down at 138. The yield of the Italian 10-year bond stood at 0.927% (THE REAL-TIME TREND OF THE SPREAD). Slightly negative session for Piazza Affari: the Ftse Mib index concluded with a decrease of 0.39% to 19,950 points. Marginally positive end of the day for the other major European exchanges: London was the best exchange with a final increase of 0.62%, while Paris finished up by 0.18% and Frankfurt by 0.15% (THE TREND OF AUGUST 18).

The trend of August 14

In the last session last week, Friday 14 August, the spread had opened at 141 basis points and then concluded staying at the same value, with the yield of the 10-year Italian bond equal to 0.99%. Piazza Affari ended the week with a marked decline: the Ftse Mib index closed down by 1.13% to 20,028 points. The other main European stock exchanges also fell sharply: London closed trading down by 1.55% to 6,090 points, Paris by 1.58% to 4,962 points and Frankfurt by 0.71% to 12,901 points (THE REAL TIME TREND OF THE MILAN EXCHANGE).


Smoking weed during pregnancy increases the risk of autism

Scientists from the maternity hospital in the Canadian capital Ottawa have evaluated data on cannabis and pregnancy. In doing so, they discovered a potential risk for the babies. Like the team around obstetrician Mark Walker in the journal Nature Medicine reported that if the mothers smoked weed during pregnancy, the children were at a significantly higher risk of developing autism.

Children of smoking mothers have a higher risk of autism

The study is based on data from 2007 to 2012. At that time, statisticians in the Canadian state of Ontario recorded a total of 500,000 births to determine whether the mothers had consumed drugs. Around 3,000 of them reported using cannabis, often in combination with other substances. 13.4 percent had also used cocaine, 11.3 percent took prescribed medication, 4.4 percent methadone and 3.8 percent drank while smoking weed.

Finally, the researchers excluded all children who had died before the age of four and calculated the risk of developing autism. If the mothers used cannabis during pregnancy, four out of 1,000 children developed autism. For children who were not exposed to the drug in the womb, the figure was just 2.42 in 1,000.

Cannabis not safe during pregnancy and breastfeeding

The authors of the study expressly point out that their data do not allow any statements on cause and effect. In the surveys, there was no information on the amount of cannabis consumed, the frequency of use or the type of intake. Only the statistically significant joint occurrence of consumption by mothers and autism in children is documented here. Since cannabis was legalized in Canada in 2018, the medical professionals want to warn the public with their study.

Just because the drug is allowed to consume does not mean it is safe for pregnant or breastfeeding women. However, recent statistics show that the number of smoking mothers is growing. “This is worrying because we know little about how cannabis affects pregnant women and their babies. Parents-to-be should educate themselves about the possible risks, and we hope studies like ours help here,” says lead author Mark Walker.

Cannabinols are important messenger substances in the embryo

Doctors suspect that cannabis disrupts the messenger system in the embryo. The intoxicating agent tetrahydrocannabinol (THC) crosses the placenta and enters the growing child’s circulation. However, there is a sensitive endocannabinoid system that is central to the development of the nervous system. It would be disturbed by the THC. Previous studies had also shown that cannabis increases the risk of premature birth.

Update 8/12: In an earlier version of this post it was said that there is a sensitive system of endogenous cannabinoids in the embryos. In order to avoid misunderstandings, we have replaced this with the correct technical term “endocannabinoid system”.


Anastasia Volochkova showed a string of “alcoholic” and publicly put in place Dan Borisov

Anastasia Volochkova and Dana Borisova long-standing conflict. Two blondes had a fight after the former TV presenter has accused the dancer of alcoholism and amoralke. In response to the dancer urged her opponent to answer.

Dana Borisova came face-to-face Anastasia Volochkova, which was accused of drunkenness. The ballerina denies that suffers from alcoholism. “What she’s accusing me? What I like to drink wine. What do you not drink wine? Sorry, what do you care what I do, I sleep with somebody that I realize. If the main task is to come every day to be on stage,” he said, as snapped, the actress in the new issue of the program “New Russian sensations”.

Dana just does not intend to retreat. “By the way, at this stage the legs were growing. It is explained to us in rehab. Female alcoholism, the third stageread the literature , specifically the woman begins to crawl” – not appeased with the scandalous attacks on television.

Volochkova also not born shita. “I’d love to see Dana Borisov after his cocaine, so she went out and did something physically feet, hands. Without cocaine, I think, will not. If she says this, that they used to lose weight,” he recalled ballerina revelation sworn friend.

Borisov admits that struggling with their addictions. “Yes, I’m an addict, Yes, I’m an addict, Yes, I’m an addict! But I’m honest, I speak about it openly. But I’ve dealt with a long time all these initial stages, and her daughter is not even in the beginning, it is in active use! That is her denial even saw but saw. Nastya, I have a lot in common. We share the same disease – alcoholism“- she said.

Anastasia most resent injustice. “I do not understand why people take the liberty to judge me, to appreciate and evaluate? Climb into my soul, into my glass, my plate, in my bed, in my house. I have a feeling that in my house lives the whole country. Everyone drink: one wine who – vodka is what everyone wants – it is the right of every human being. But after drinking you can’t come to the gym and doing cartwheels, pirouettes and to do what you love”, – is angry with the artist.

Volochkova believes that Borisov must answer for his slander. “When you’re talking shit, you have to answer! I can tell you my cat: chatter and … – no bags to roll”.

Dana retorted: “Away: Mat-peremat. Habalki included. You go drunk, beg, fall.”

However, the proposal Nastya took. “Anastasia, breathe!”, – demanded Dana. Volochkova complied with the request, and Borisov withdrew, driving away the smell. “Are you sober?”, – asked the presenter.

In response Volochkova assured that just worked eight hours on Pointe and offered the opponent the experiment. She sent Borisov through all the circles of hell ballet to the on your own Pointe shoes see how hard hangover “to be in the pack.”

The job – to do the splits – Dana failed miserably. And this is understandable. In this field Volochkova has no equal.

Drove Dan twine “alcoholic” in the air. Spinning, spinning. String “alcoholic”, and revolves a ball of gold” – Anastasia twirled in the dance, doing his trademark splits.

She said that for the year from it there were 40 performances of “the Dancer in the mirror of the circus.” “I do every day love. Wake up in bed with a loved one… to Blame I have nothing. Has no right! For the charges that she made, calling me, pouring dirt, she will answer in court”, – said the dancer.


The average ticket for Bonpreu customers is doubled due to confinement

The supermarket sector is based on having a precision operation, where every detail counts and allows you to often compete for a penny to win customers. As a result, companies in this field have become accustomed to increases in sales, which are usually around GDP and rarely reach double digits. But the coronavirus has completely altered this reality.

As ARA has learned, Bonpreu, the first supermarket chain in Catalonia, has seen the average customer ticket double since the population was confined. To contextualize the jump, in 2018 the group increased sales by 13%, and a year earlier by 11%. The evolution of 2019 is not yet known, but in 2020, even without knowing how long the current situation will last, it promises to be better for the 35th Catalan company in sales.

Its 187 stores, which also include those of the Esclat brand, have made this leap without resorting to price increases, the company says. The company chaired by Joan Font has carried out a study, based on the 1.2 million purchases made on average during the weeks of the state of alarm, which allows us to observe customer behavior. The conclusion is very clear: commodities are living a golden age.

The frozen fish boom

The closure of fishmongers triggers the purchase of 151%

Of all the products, the jump in the sale of frozen fish stands out, with an increase of 151%. Meat has also experienced a sharp increase in sales, of about 50%. Bonpreu stands out above all for the increase in lamb, processed meats, skewers, steaks and pork chops.

Rising fruits and vegetables

Potato and zucchini, the amazing kings of the shopping basket

The data from the Osona company also make it clear that the consumption of fruit and vegetables has increased in recent weeks. The vegetable, in particular, 54%, and the fruit, 33%. Bonpreu has detected that in the vegetable basket, the most successful in this time are the zucchini and the potato.

Packaging is growing

From pasta and rice to sweets, the snacks and beers

The company has also seen a very significant increase in sales of packaged food products. The increase, in particular, is 80%. This food group serves to check the change in consumption trend from the beginning of confinement until now. The study finds that initially there was more purchase of commodities such as preserves, pasta and rice, and that it later changed to products more associated with celebrations or moments of pleasure, such as beers, snacks and sweets like chocolate.

More cleanliness than ever

Sales of products such as bleach are doubled

The wave of shopping has also reached for household cleaning and personal hygiene products, such as soap, bleach and toilet paper. In this area, sales have almost doubled, with an increase of 99%.

Pricing policy

The supermarket group denies they went up

Bonpreu says that almost all the prices of these food families have remained the same as last year. In fact, the company claims that soups and broths, liquid milk, soup pasta and butter have been sold during confinement at lower prices than last year.

Bonpreu even explains that in its establishments, and despite the success of sales that are taking place throughout the sector, the promotions have been maintained, covering half a thousand products. This same week, The Economist echoed a study that explained that the percentage of household spending on food has gone from 18% to 60% due to confinement, in a phenomenon that even compromises the validity of indices such as the CPI in all countries.