My Business News

The Chinese government announced Monday that he forbade Chinese airlines to participate in the program of the European Union to tax carbon emissions quota in air transport.

Announced by the official news agency New China, the decision of the State Council, the equivalent of government, highlights the litigation around this measure taken to help reduce e missions of greenhouse gases. 

"China hopes that Europe will act in light of broader issues that are the answer to climate change, sustainable development of international aviation and Sino-European relations, enhancing cooperation and coordination to find an appropriate solution acceptable to both parties ", said an official of New China Chinese rule of civil aviation.

"Similarly, depending on developments, the Chinese side will also consider the implementation of measures necessary to protect the interests of the people and Chinese companies," Has he added. 

Since 1 January, all airlines flying from airports in the EU are subject to a trading system of emission quotas for greenhouse gas .

Any company failing to observe these rules is liable to a tax of 100 euros per tonne of carbon emitted quota allowed. The EU ban of up to serve European airports.

Last month, the China Air Transport Association (CATA) announced that Chinese companies would not participate in this so-called ETS (Emission Trading Scheme for) and that estimated from CATA, would cost a hundred million Chinese companies in its first year and more than triple by 2020.

The new home sales fell 13% in the third quarter. At the same time, housing starts increased by 11%. Professionals denounce the consequences of the austerity measures the government. An employee on a construction site offices and accommodation in Marseille.

The new home sales by developers are still down in the third quarter. They fell in France by 12.9% yoy in the third quarter, according to the Ministry of Housing, which reported Tuesday alongside a 11.4% increase in housing starts and permits 22.6% built between August and October 2011.

For all of 2011, the number of new homes sold by developers to fall, according to Michel Mouillart, professor of economics at the University of Paris X-Nanterre, between 97,000 and 98,000 against 115,000 in 2010, a down 15%, far from the record 127,000 in 2007. In 2012, Mr. Mouillart expects a further decline to 85,000, far off the figure of the previous crisis (79,000 in 2008). "The year 2012, with 340,000 starts in 2012 against 350,000 in 2011 should mark a decline that feeds the decline in demand. To reverse this decline, it will be tough in the absence of public support for devices private construction, "said Michel Mouillart.

China will begin a cycle of easing monetary policy next month, via a lowering of reserve requirements for banks, a sign that the country feared the consequences of the global economic downturn, according to a survey released Tuesday by Reuters.

Of 19 analysts surveyed, 10 thought that the Chinese central bank will decrease by 50 basis points in the reserve requirement ratio, currently at 21.5%, a level which, according to the bank, affects their profitability and lending capacity.

Two weeks ago, the Chinese central bank said China was ready if necessary to adjust its monetary policy.

Eight analysts believe that the lower reserve requirement ratio will occur in the first quarter 2012 and one analyst expects the second quarter.

Last week, a majority of market participants did not see any easing before the first quarter of 2012, but the worsening debt crisis in the euro zone could precipitate the decision of the Chinese monetary authorities.

Inflationary pressures have led them to meet several times the interest rates and bank reserve requirements since October 2010.

Since then, inflation has decelerated slightly to 5.5% last month, but remains above the official target of 4%.

The lessor of aircraft Kuwaiti ALAFCO has increased to 50 copies, $ 4.6 billion (3.4 billion), its order for Airbus A320neo at the Dubai Airshow.

The group had signed a memorandum of agreement for 30 aircraft at the Paris Air Show in June.

The president of ALAFCO Ahmed Al Zabin said not to be particularly concerned about the potential impact of economic turmoil in Europe on demand for aircraft, including the Middle East.

"We talk about the long term, what is happening right now on the short term," he said at a news conference.

Groupama said in Monday night to Tuesday its CEO Jean Azema had been revoked and the new management team should improve operating profitability and solvency.

The board of directors of the mutual insurer has announced the appointment with immediate effect as CEO Thierry Martel and Christian Collin as chief operating officer.

"Jean Azema, who was CEO of the Central Fund of Commercial Union Assurance and Groupama SA since June 2000, leaving the company," said Groupama in a brief statement.

A spokeswoman confirmed to Reuters that he had been "revoked", writes Les Echos in an article published Tuesday.

"The priority of the new management team will implement measures to strengthen the solvency of the group while continuing to improve operating profitability," said Groupama in a statement.

Thierry Martel assumed since 1 January 2010 the Directorate General insurance and banking France the mutual insurer.Christian Collin was appointed general manager finance and risk in January 2010.

Fitch has downgraded the financial strength rating of Groupama 27 September last, with a negative outlook, while Standard & Poor's had lowered four days before his note from BBB + to BBB, also maintaining a negative outlook.

Jean Azema said last month that the mutual insurer would give priority to profitability rather than market share gains during the implementation of its new savings plan 2012-2015.

"The stock market listing of Groupama is reported at end of period, that is to say more towards 2015," he added.

The French and German leaders, as well as European leaders and the Executive Director of the IMF will meet in the evening of Wednesday in Frankfurt for a preparatory meeting at the EU summit on Sunday the crisis of the euro.

French President Nicolas Sarkozy and German Chancellor Angela Merkel will be accompanied by their finance ministers Baroin and Wolfgang Schäuble, the ECB President Jean-Claude Trichet and his next successor, Mario Draghi, the European Council President Herman Van Rompuy and that of the European Commission Jose Manuel Barroso, and the IMF Executive Director Christine Lagarde.

"No statement is expected at the end of this working meeting," said President of the French Republic.

The meeting came a day after the lowering of the rating two notches by Moody's Spanish, which has increased pressure on European leaders urged to engage at the summit of 23 October breakthroughs to resolve the sovereign debt crisis.

The rating agency had announced the day before she gave herself three months to assess the French Aaa rating and stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks .

In this context, the markets have high expectations of the European Council to be held this Sunday, and during which France and Germany have promised to present a solution "comprehensive and lasting peace" to the crisis of the euro.

A French government source said French President Nicolas Sarkozy did not rule out further action to protect the signature of France to the rating agencies. see

"I do not rule out making further reforms if necessary," said the French president at the Council of Ministers on Wednesday, according to remarks reported by a government source."He did not rule out doing more, he said, 'We'll see if we fit,'" the source said.

Faced with the hopes raised by the top financial centers on Sunday, German Chancellor reiterated its invitation Wednesday markets patience.

"These sovereign debt has accumulated for decades, so we can not resolve in a single peak. It will be hard work over the long term," she said at a conference the press.

A theme echoed by José Manuel Barroso. "We are at a decisive moment, which requires clear answers and determined responses together," he said."Do not expect us to be at the end of our troubles."

"Finito BASTA"

According to German newspaper Handelsblatt, citing government sources, Germany is considering using the European Financial Stability Fund (EFSF) to help states pay the interest on their debt.

This could take the form of a suspension of payment of interest through the issuance of zero coupon by the EFSF, the newspaper said.

Some countries such as China, India and Brazil could also contribute to strengthening the capacity of the fund, said last Handelsblatt.

Berlin, however, tried to put an end to speculation about a possible increase in funding for the EFSF.

"There is no discussion of an increase in excess of 440 billion euros, that's it, finito, basta," said the spokesman for the German finance minister, Wolfgang Schäuble.

Two senior officials of the European Union had earlier denied reports the British daily Guardian that France and Germany have agreed to carry the EFSF to 2,000 billion euros as part of plan to resolve the crisis debt in the euro area. and

One of the two leaders said it was not easy to increase the capacity of the EFSF, currently at 440 billion euros.

Leveraging the EFSF? "NOT SO SIMPLE"

"It is naive to think we can do this kind of calculation and come up with a nice round figure of 2,000 billion.It's not that simple, "he said.

European leaders, however, could agree on Sunday means the multiplication of the response capacity of the EFSF, allowing it to secure some of the new issue of debt in the euro area, said on Tuesday European officials.

Ensuring, for example, the first 20% to 30% of potential losses, the EFSF could triple or five overall capacity for intervention.

With about 300 billion yet available, the EFSF could thus increase its fire power to more than 1,000 billion or 2,000 billion, which would be sufficient to cover the financing needs of Spain and the Italy in 2012.

Greece is still mired in recession and the debt is expected to reach 357 billion euros this year, equivalent to 162% of its gross domestic product. Most analysts agree that this debt can not be honored by Athens.

The country is experiencing this morning for a general strike for 48 hours decided to protest against austerity, and scuffles broke out in parliament between demonstrators and police.

Coca-Cola announced Tuesday a quarterly profit that just beat the consensus, thanks to sales growth throughout the world.

The world leader in soft drinks has reported net earnings of $ 2.22 billion, or 95 cents a share, against 2.06 billion (88 cents a share) a year earlier.

Excluding items, EPS was $ 1.03 compared to the consensus Thomson Reuters I / B / E / S, which gave $ 1.02.

Revenues jumped 45% to 12.25 billion, boosted by the acquisition in 2010 of bottling operations in North America, by price increases and a favorable currency impact. Analysts were expecting a turnover of 12.01 billion.

Volume, worldwide sales increased 5%.In North America, the increase in volume is the same, with the addition of new brands being cross-licensing as Dr Pepper. Leaving aside these brands, sales increased 1% in volume in North America.

In Latin America, volume growth is 7%. It is 2% in Europe, 7% in the Eurasia-Africa segment and 6% in the Pacific region.

The action is down in pre-market.

The Slovak parliament on Tuesday rejected the expansion of the European Financial Stability Fund (EFSF), which the government was liable, but the text should be adopted in a second vote, outgoing Prime Minister intending to appeal to opposition voices.

The result was expected, since a component of the ruling coalition had indicated that its elected officials abstain. The Smer, the main formation of the opposition, has also said he was ready to vote on the text after the government fell.

The expansion of EFSF was approved in 16 other member states of the euro area.

Bank stocks and insurance Monday accusing the largest declines sector in Europe, sealed by the accumulation of bad news on the crisis of sovereign debt in the eurozone.

Greece has confirmed that it will fail to reduce its public deficit as required by its lenders, while the finance ministers of the Eurogroup will meet against a backdrop of high investor confidence in their ability to find an answer common and credible to the crisis.

Around 12:30, the Stoxx index of European banks loose 2.78% and 2.57% insurance.

In Paris, Societe Generale (-5.75%), BNP Paribas (-5.61%), Credit Agricole (-4.51%) and Axa (-3.92%) among the five largest declines the CAC 40 losing 2.18.

Dexia shares fall 8.78%, Moody's notes that have the Franco-Belgian bank supervision.

"It is clear that no major decision should be expected of the Eurogroup (…) Hopefully ministers do not blow on the embers," say the strategists rate of Societe Generale.

The terms of private sector, including banks and insurers, the new aid package to Greece are still under discussion and weigh on financial stocks.

In a note published Monday morning, JP Morgan believes that Europe should have, like the United States, device type TARP bank support bearing claims devalued.

EURO BANKS ARE NOT CHEAP

"We continue to believe that a solution like TARP would be the best way to reopen the finance market and a solution is needed before 2012, while debt financing needs of medium and long term will approach 500 billion euros, "said the broker.

According to JPM, a "Euro Tarp" would be a way to re-evaluate the bank stocks that are trading at 30% or 40% of their net assets.

In the current environment, JP Morgan estimates that European banks, trading at 0.76 times book value and a 2012 price / earnings ratio of 6.9 times earnings in 2012 "do not seem cheap."

"With the continued concerns over sovereign debt, we believe it unlikely that continuation of the rise of European banks (seen last week, in particular, SocGen, BNP and Commerzbank) and prefer U.S. banks whose capital positions are better" JPM said.

In a memorandum to insurers, Natixis said on his part that "the sector is currently suffering (…) (of) losses on fears of sovereign debt PIIGS (Portugal, Ireland, Italy, Greece, Spain), (the ) decline in long rates in countries outside PIIGS, which gradually erodes the profitability of the portfolio insurers (and) sharp decline in equity markets, resulting in impairments in the accounts of T3/S2 insurers."

According to Natixis, the equity portfolios of the insurers were on average in unrealized gains of 15% at end June

"But even in a scenario incorporating drive (which we do not believe) of impairments on PIIGS, including Spain and Italy, and almost stable in long rates and equity markets, some titles retain appreciation potential" , adds the intermediate cites Scor, Allianz and Axa on which it is to buy down while adjusting its price targets.

The European Commission gave its approval Friday to a provisional government assistance of 4.75 billion euros to recapitalize three Spanish banks created this year as part of a restructuring of the network of savings banks.

The three banks are Banco NCG, Catalunya Unnim Bank and Banc.

The EC added that its final approval depended on a restructuring that ensures sustainability over the long term.

"Strengthening the capital of these banks is crucial in their ability to continue to lend to the real economy and to implement the restructuring they will suffer as a result of large subsidies received," said Competition Commissioner Joaquin Almunia in a statement.

The Bank of Spain said on Friday that 96.4% of banks had completed their recapitalization.

She added that the recapitalization had cost 13.4 billion euros, while the initial estimate given 15.2 billion. All banks are now in compliance with minimum solvency ratios, she said.