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China has banned its airlines to pay tax on emissions imposed by the European Union since January 1. His opposition joined the United States, India and Russia. An airplane of American Airlines lands on the tarmac at the airport in Port-au-Prince in February 2010.

For the Chinese government, no question of paying tax on pollutant emissions: a tax imposed by the EU to reduce global warming. The Chinese government's message is clear: "No Chinese airlines to participate in the EU ETS" taxes on carbon emissions "without permission from government authorities," and adds that they are also forbidden to raise their rates to offset the cost of the European measure.

The EU ambassador to China, Markus Ederer, defended the tax, but said Monday that negotiations could take place. "There are several possible ways, bilateral, multilateral or perhaps legal," he told a press conference, implying that a solution for Chinese companies could be paying a carbon tax in China. "We are ready to discussions on equivalent measures that would exempt companies from the countries concerned" the payment of the European carbon tax, he added. "We are witnessing a struggle between the EU and China on this issue. You have to see if China will not soon take retaliatory measures", for its part has responded to AFP Yanyan Luo, an analyst at China Merchants Securities based in Shenzhen (south).

In China, the European law will cost 800 million yuan (97 million) in 2012 to its airlines, and this cost will be multiplied by four in 2020. When asked about the tax by AFP, companies China Eastern and China Southern have refused to comment Monday. Worldwide, airlines encrypt the extra cost of the measure for the sector to € 17.5 billion over eight years. The European Commission for its part argued that the additional cost per ticket for a long haul flight would return between 4 and 24 euros only. By this law came into force on 1 January, the Europeans want to force all airlines, irrespective of their nationality, to buy the equivalent of 15% of their CO2 emissions, or 32 million tonnes. The objective is to fight against global warming. But the arguments of Europeans objected to by 26 of the 36 members of the Aviation Organisation (ICAO), including the United States, China and Russia. They adopted early November a nonbinding resolution recommending to exempt foreign companies from the EU carbon tax.

Going further, the House of Representatives in the United States passed a bill prohibiting U.S. airlines to pay this tax, including Secretary of State Hillary Clinton had asked the Europeans to suspend the entry into force . U.S. companies complain of a discriminatory measure and have filed an appeal in Britain, but their arguments were rejected by the European Court of Justice.

In early January, China said it would not cooperate with the EU to implement the tax that had just come into force and had hinted at retaliation. By the end of last year, the China Air Transport Association (CATA), which brings together most Chinese companies had indicated that "Chinese companies would not participate in the ETS, would not provide carbon monitoring plan to EU countries and would not negotiate preferential policies with the European Union ".

Companies refusing to pay the tax could be imposed a fine of 100 euros per tonne of CO2 or, in extreme cases, be denied landing rights in the 27 EU countries. But carriers have a period, because if the law is already in force, they can buy their license right to pollute for 2012 until April 30, 2013, and no sanctions will be applied before that date .

European shares are sharply higher Monday in mid-session, encouraged by the hope that European leaders propose new measures against the debt crisis at the approach of the EU summit of December 9. But traders believe the rebound mainly technical, due to purchases cheap, European values ​​being dropped last week to a low of seven weeks.

Around 12:20, the CAC 40 index advanced 3.6% (102 points) to 2959 points, rising to 3,000 points after falling 4.67% last week.

The London Stock Exchange gained 2.04%, 3.10% that of Frankfurt and Milan up 3.08%.

During the Franco-German summit in Strasbourg, Angela Merkel has made the ECB does not undertake more to calm soaring interest rates, preferring a stronger fiscal discipline to the States. But it is not safe for the German economy … Chancellor Angela Merkel in Berlin.

Markets continue to worry for Europe. The Paris Stock Exchange (-0.18%), Frankfurt (-0.54%) and London (-0.24%) have once again closed in the red on Thursday night. Investors were disappointed by the Franco-Germano-Italian held in Strasbourg, and has not provided an answer to soaring interest rates of the states of the euro area. Italian and rates again exceeded 7% in late afternoon.At this summit, Angela Merkel and Nicolas Sarkozy said they would do "proposals to improve the governance of the euro", refusing however to include a reform of the European Central Bank to establish as lender of last resort and thus relieve the rates. It was the wish of the French president, but Angela Merkel is always hostile. She prefers to impose a priority in budget control by Brussels that would oblige member states to return quickly to the nails of the Stability Pact. But this strategy is not without risk for Germany itself, as shown by recent events.

Interest rates on the rise

This is not a fire, but heat stroke has occurred. The rates at which to finance Germany jumped to 2.26% on Thursday, the highest since late August after a failed fundraising in the bond market Wednesday.

European shares rebound in early trade Tuesday, pending the announcement at 14:30 (Paris time) revised figures for U.S. growth in the third quarter after heavy fall the previous day, but concerns about the financial position Europe and the U.S. remain strong.

At 9:03, the CAC 40 index advance 1.37% to 2935.01 points after falling 3.41% yesterday.

The Milan Stock Exchange gained 1.35% (-4.74% Monday), the London 0.83% (-2.62% yesterday) and the place of Frankfurt 1.1% (-3.35% Monday ).

The European debt crisis continues to take its toll on both European and U.S. stock markets, the risk of contagion to the entire euro area, resulting in a rise in bond yields to unsustainable levels and that affects more only countries known as "devices".

"The market remains concerned about the implementation of these measures (austerity and anti-crisis), which are not detailed enough to be credible," said Emmanuel Cau, strategist at JPMorgan Cazenove,.

In Paris the CAC-40 ended on a loss of 1.78% to 3,010.29, surpassing those of his peers.

French banks, which publish their accounts in early November for the third quarter, are expected by investors on their performance in market activities and their cost of funds after the market storm of summer has suddenly melted during their Stock Exchange.

Beyond the impact of depreciation on new Greek debt as a result of the Europe Agreement of 27 October and an expected revaluation of debt that will boost results, they should undergo a significant decline in their income banking and investment (BFI), analysts said.

Institutions such as Barclays, UBS and the Swiss German Deutsche Bank, have all recorded sharp decline in income and profits in this sector.

"Given the volatility in the markets since this summer, we will look closely at the impact on market activities," said Christophe Nijdam, an analyst at AlphaValue.

"We'll see if there was blood in the trading rooms in both equity trading activities (actions, Ed) and fixed income (interest rates, Ed)," he says.

The quarterly results will also be an opportunity for French banks to specify the measures they intend to implement to enhance their financial strength to cope with the debt crisis in the euro area in early October that forced the Franco-Belgian Dexia decommissioning.

As part of the recapitalization of the banking sector, the European Banking Authority has estimated that a total of 8.8 billion euros deficit capital of BNP Paribas (2.1 billion), Societe Generale (3.3 billion) and BPCE (People's Bank, Savings Bank) (3.4 billion).

Unions and bankers expect in the context of a degradation of the environment that they are announcing job cuts, especially in their BFI.

The head of the European Financial Stability Fund (EFSF) on a visit to Beijing assured, there is no "negotiation" on the future role of China in the fund but "regular consultation". Nicolas Sarkozy (bottom right) attacked Silvio Berlusconi (bottom left) at the European Summit of October 23, 2011

"There are no ongoing negotiations with China" in Chinese investment in the European Financial Stability Fund (EFSF), said Friday in Beijing's director, Klaus Regling, citing only "regular consultation". Mr. Regling is visiting China in the wake of the announcement of an agreement anti-crisis in Europe which includes strengthening the capacity for action of the EFSF to help indebted countries.His visit was seen as a sign that the EFSF would seek financial support from China, the second global economy has a huge cushion of reserves and already has European debt.

But "there are no ongoing negotiations with China," only "regular consultations at an early stage," said Regling warning: "There will be no agreement today" . "I had contacts with the Chinese authorities, (which) are regular buyers of bonds EFSF" Regling said at a news conference, adding that Asia had acquired 40% of the bonds Fund this year. "China will find it a worthwhile investment," said the boss of the EFSF. Since the beginning of the year, Japan has in turn invested 2.68 billion euros, or 20% of total loans issued by the EFSF.

"Until now the only way we asked investors to participate (the fund) was to buy bonds. There was no other instrument," said Mr Regling. But "now we are developing new tools and we will see who will participate," he said without elaborating. "Foreign exchange reserves of China are increasing every month, so there is a need for investment," said Mr. Regling about these reserves of 3,200 billion.

The Chinese "are interested in attractive and safe investment," he noted, before talks at the Ministry of Finance and the Central Bank. The euro area has decided at its summit in Brussels crisis Wednesday and Thursday to multiply the firepower of EFSF for countries in difficulty, Italy or Spain. Its response capacity would increase to 1,000 billion euros.

Air Liquide confirmed Wednesday seek an improvement in its net profit in 2011 "in a normal environment," despite a slowdown in sales growth in the third quarter, still worn by the emerging markets.

The world leader in industrial gases reported 1.5 billion euros in investment decisions, with a target maintained over two billion over the year.

The group, which is German competitor Linde and Air Products and Praxair American, achieved third quarter sales of 3.597 million euros, up 4.9%, 6.6% in like.Over nine months, growth was 7.7% on a comparable basis.

The cluster gas and services, which provides the bulk of group sales, saw its growth slow to 7.7% in the third quarter on a comparable-a pace of 9.5% over nine months, largely due to an unfavorable base effect.

The division, however, also suffered a slowdown in demand for metals producers in Western Europe and Canada and the end of a rebound in the cycle of investment in equipment sales and installation of electronics, which returns to a level "more normal".

The stock closed Tuesday down 1.38% to 92.12 euros, in line with the CAC 40 index, giving a market capitalization of 26.14 billion. It was down 2.7% since the beginning of the year.

The Markit PMI fell below 50 in October, indicating a contraction in activity. View of the Port of Marseille

The French economy contracted in October, according to the PMI index released Monday by the firm Markit, which fell to the lowest in twenty-nine months, to 46.8 points in October against 50.2 in September. " The French private sector falters and comes into contraction zone at the beginning of the fourth quarter, "said Jack Kennedy, economist at Markit, said in the statement of the firm. "The impact of European debt crisis in the real economy may be felt, especially on trust and the level of demand," said Kennedy.

According to the study, the activity of the French private sector declined for the first time since the summer of 2009 in October.The 50 points, the index has gone down, marks the boundary between phases of expansion and contraction phases of the activity. The decline in the index below this threshold is the result of a sharp decline in activity in the services sector, the highest since 27 months, he said. Mr. Kennedy explained that the growth had so far relied on the services sector and noted that "manufacturing output declined for the third consecutive month."

The economist has estimated that these numbers could result in "a significant quarterly rate of contraction of gross domestic product (in the range of 0.5-0.6%)." "The curve is currently followed by the activity lets consider a recession, unless a quick turnaround." The PMI, compiled from a survey of 750 companies operating in France, is a leading indicator of economic conditions, considered reliable by analysts.The provisional figure released Thursday based on a percentage of responses from about 85%.

Moody's is given three months to determine whether his perspective "stable" on "AAA" tricolor is still justified. The rating agency said that financire the financial strength of the French government has weakened. The Minister of Economy and Finance Baroin presented Wednesday, September 28 in Council ministresle of the state budget for 2012.

The rating agency Moody's Investors Service gave the first Monday penknife to the sacrosanct "AAA" rating of France, announcing that it gave three months to determine whether his perspective "stable" was still justified in view of the deteriorating economic situation."Over the next three months, Moody's will monitor and evaluate the stable outlook (the note of the country) in the light of progress made by the government to implement" the measures announced to reduce the budget deficit, said the agency rating in a statement.

France has currently the highest rating possible from Moody's (a "Aaa"), as from its main rival Standard & Poor's and Fitch Ratings. This high rating allows it to borrow on the markets in very favorable terms to finance its budget deficits. If the prospect of this note should be revised to "negative", this would imply that Moody's would likely reduce the medium-term (usually for a term of three to twelve months).And France would become the new big country, after the United States to lose the precious talisman financially.

The agency is careful to note that this review is part of its annual study on the accounts of France and that it is not – at this stage – a decision on the note country. But it is the first of three major rating agencies and to cast a shadow on the "Aaa" French. Last week, Moody's had yet to confirm the strength of the French note, after the announcement of the restructuring of the bank Dexia.

Keeping the promise of deficit reduction

In addition to the ability of the French government to meet its budget commitments, Moody's says it will consider in its deliberations "new negative developments in the economy or financial markets."In its statement, Moody's notes that the financial strength of the French government, although still very high, "has weakened, as is the case for other countries in the euro area, as the economic and financial crisis in the world has led to a deterioration in its debt ratios, which are now among the lowest rated countries Aaa + + ".

For Moody's, so it is "crucial" for France to maintain "investor confidence in its ability and willingness to deal with unforeseen challenges."Or "France could face a number of challenges in the coming months – such as the need for additional support to other European countries or its own banking system, which could increase so significant commitments that must support the country's budget, "said Moody's.

"The deterioration of debt ratios and the ability to see new potential liabilities are putting pressure on the prospect of stable rating Aaa + + of the country," said the agency. For Moody's, the French government now less room for maneuver in 2008 (…) "during the crisis of" subprime "." The continued commitment to implement economic reform measures and budgetary and visible progress in the goals "for reducing debt" will be important for maintaining the stable outlook "of the note of the country, the agency warns.