Press review for administrative and financial directors (week of July 18, 2022) - Finance function

Press review for administrative and financial directors (week of July 18, 2022) – Finance function



Despite inflation, economists do not believe in a price-wage spiral

While the SMIC will increase for the fourth time since October, economists believe that the risk of a price-wage loop has not been proven, as other wages are not indexed to prices. Inflation is accelerating, rising wages too. In the wake of prices which increased by 5.8% over one year in June according to INSEE, the SMIC will increase by more than 2% on August 1st. This will be its fourth revaluation since October 2021. Around 2.5 million French people are affected. The automatic rise in the minimum wage has cascading effects. It should lead to an increase in minimum wages in the branches where they remain below the minimum wage. The government is also putting pressure on the grids to be corrected. In its forecasts, INSEE expects a 3.3% increase in the basic monthly salary in the private sector (excluding bonuses) this year, compared to an increase of 1.5% in 2021. >> Read the full article on Les Echos website

Big Bang in sight in finance: the fragmentation of international payment systems is accelerating

The worm was already in the fruit since the application of sanctions against Iran, then Russia. But the war in Ukraine and the exclusion of Russian banks from the Swift system, not to mention the geopolitical tensions between China and the United States, have accelerated the need for states or currency areas to protect themselves by developing their own payment infrastructures. . And the rise of digital central bank currencies should reinforce this movement of fragmentation of the world monetary system, built in the 1970s to accompany the globalization of the economy. “It’s an atomic bomb, but delayed!” Payment systems have so far been built on a logic of globalization and complete openness between the different economic or monetary zones. It was “globalization”, the construction of the “Global Village” on the Web”, observes Hervé Sitruk, president of France Payments Forum. >> Read the full article on the La Tribune website

Purchasing power: why wage increases are complex for companies

While soaring prices are hitting the incomes of the French, the question of rising wages has returned to the heart of the debates in the National Assembly where the “Purchasing power” law was passed last night. Companies are called upon to follow the curve of inflation but the rise in raw materials and the fall in productivity limit the room for manoeuvre. This inaction could contribute to a recessionary spiral. “Firms experience a price shock upstream – such as raw materials. The price of production does not follow the price of intermediate consumption: the shock absorber is therefore caught in the margins of companies”, explained Wednesday to the Senate Denis Ferrand, general manager of Rexecode. Direct consequence: the operating profit of French companies has dropped, in mid-2022, to around 12.6% against around 15.4%. The big losers? Probably workers above the Smic. >> Read the full article on the Challenges website

Relocations have a future

The health crisis and then the war in Ukraine have made European economies vulnerable vis-à-vis the rest of the world. To remedy this, States are seeking to relocate strategic production. A policy which, according to the managers, has a future and favors small and mid-caps, industry and innovative companies. In Germany, as in the rest of the euro zone, the issues of competitiveness, sovereignty and the desire to relocate strategic and promising industries are gaining in importance and are prompting a strong mobilization of local public authorities supported by European institutions. At the beginning of July, the “Choose France” summit was held in France, which aims to attract international investors and during which the Elysée Palace announced some 6.7 billion euros in new investments, with 4,000 jobs at stake. On this occasion, the Franco-Italian company STMicroelectronics and the American firm GlobalFoundries reported the creation of a new semiconductor factory in the Grenoble region with massive investments of around 5.7 billion euros. euros. >> Read the full article on the Option Finance website

Marine energies, sources of hope… and concern

Indispensable to a carbon-free energy mix, marine energies also raise fears related to their potential impacts on biodiversity and other marine activities. Allaying these fears requires further deepening knowledge and sharing it better. On a global scale, the last decade has been marked by the exponential growth of solar and onshore wind power. In comparison, marine energies are still in their infancy. Marine energies cover various uses of the movements of water masses: waves (wave energy), currents (tidal energy) and tides (tidal energy). But also temperature differences between surface water and deep water, especially in tropical areas (thermal energy of the seas or ETM). Or the deep pumping of cold water for air conditioning (SWAC, sea ​​water air conditioning). Less known, osmotic energy results from the pressure obtained by mixing two waters of different saline concentration. >> Read the full article on the La Tribune website

Unlimited company leave, a reality that can work very well

The liberated company, as its name suggests, allows you to free yourself from certain constraints of traditional organizations. Obviously, safeguards are needed, and if an organization decides to adhere to the principles of such a structure, it should not be made into dogmas, but ensure that the application makes sense and is maintainable. Administratively, a company has the obligation to mention leave on the payslip, but in the case of unlimited leave, it does not take it into account. In principle, the Labor Code provides for 5 weeks of paid leave per year worked, as well as RTT for companies at 35 hours per week, parental leave, death, sabbatical year…, and also leave according to collective agreement or agreements of branch. At Fasterize, there is no distinction between all of these types of leave. Also, executives on the day package are entitled to 25 days of paid vacation and 12 RTT per year, and executives on the hour package are at 35 hours with 25 days of paid vacation per year. In addition, the company allows its employees to take leave in advance. In practice, Fasterize employees take an average of 7.5 weeks of paid leave per year, which is more advantageous than the legal minimum, while remaining within reasonable proportions. >> Read the full article on the DNA website

Leave a Comment

Your email address will not be published.