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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%.

The Greeks were again gathered in their thousands on Thursday to protest against government austerity measures. Overflows have marred the parades and a man died of heart attack. Demonstration in Greece, Athens, Syntagma Square, October 19, 2011.

The mass protests against new austerity measures continued Thursday in Greece for the second day, weakening the government of Socialist George Papandreou at the approach of a summit "crucial" in Brussels Sunday for the country and the euro area.

In Athens, more than 50,000 people participated in the movement, against 70,000 on Wednesday. Throughout the day, the unit staff, private sector employees prevailed. Thus Vanguélis Bouldadakis, in a public hospital doctor put forward "the destruction of the collective agreements" that "reduce our salaries" and "take our rights."The center of Athens was again sealed off to traffic, Parliament surrounded by dozens of vans of riot police and thousands of police.

Clashes marred the protest near the parliament. Fighting hand to hand and shots of lumber and iron protesters opposed to law enforcement. The latter, usually very active in the protests in Greece, had retired to the adjacent streets, sending only a few grenades and tear gas to try to disperse the crowd preventively.

A few sporadic incidents continued in the early evening around the Parliament and even in the tourist district of Monastiraki.Mobile groups of several dozen young people were harassing the police were carrying out acts of vandalism, burning trash, throwing molotov and stoning shop windows and street furniture.

Central to the dispute: a bill to be voted in Parliament to reduce the deficit abyss of the country and it avoid bankruptcy. Its adoption would freeze collective agreements and lead to a sudden drop in living standards of the Greeks, especially civil servants

These events have caused the death of a man. This woman had been transferred to hospital after violent incidents, died of a heart attack, said the hospital management. He "did no injury," Contrary to the media said, the hospital said in a statement. Justice has opened an investigation and sent an attorney for prosecution.The media for their part said that Mason had been hit by stones in the head on the sidelines of violent clashes between protesters and a group of communist troublemakers. The announcement of the death had raised strong emotions in Parliament, where MPs were to adopt in the evening a new law rigorously.

Emerging nations demand that the governance of the International Monetary Fund (IMF) be reformed before they inject new capital, said Friday the president of Brazil Dilma Rousseff.

These remarks came as some voices in the G20 countries that the IMF to receive new funds to help Europe in particular.

Brazil is prepared to increase its contribution to the IMF, but he wants in return, emerging economies have more a say.

"Emerging markets may be asked to participate in the capitalization of the Fund (…) But for this they need to be more involved in managing the Fund, "said Dilma Rousseff at an event held in Porto Alegre in southern Brazil.

Last month, Brazil, combined with all other countries of BRIC – Russia, India, China and South Africa – had tried to coordinate support for the euro area.

Brazilian policy makers hope that the meeting of G20 finance ministers and central bankers held in Paris on Friday and Saturday leading to action.

Newly appointed head of the IMF, Christine Lagarde Nicolas Sarkozy will meet Saturday to prepare for the G20 summit in Cannes. Christine Lagarde REUTERS / Benoit Tessier (FRANCE – Tags: POLITICS)

Nicolas Sarkozy Saturday at noon will receive the Executive Director of the IMF Christine Lagarde to talk about it with "the preparation of the Cannes summit of the G20 and the situation in the euro area," the Elysee Palace said Friday.

The head of the French state will fly the next day to Berlin for talks with German Chancellor Angela Merkel poour attempt to speed up the rescue plan of the single currency.

Leaders from the eurozone continue intensive negotiations for a recapitalization of banks in the EU to address the risks of contagion from the debt crisis.

Germany has given the green light last week in the expansion of the European Financial Stability Fund (EFSF), which is waiting for the ratification of Slovakia.

Several countries opposed to the maintenance of European budgets that fund free meals for more than 13 million people. With 80% of EU funds within the associations could distribute 130 million meals in less than in 2012.

A meeting of the "last chance" is scheduled in Brussels on Tuesday to prevent a drastic reduction of a European food aid to the poor from agricultural funds. If no agreement is reached, the program will increase from 480 million euros per year to 113.5 million euros in 2012.Currently several European states form a blocking minority which opposes the continued existence of the annual budget of the European Programme of assistance to the poor (MDP) – funded by the Common Agricultural Policy (CAP) – the result of a decision of the European Court of Justice in April.

Four charities have warned Monday in Paris that the decline of European funds allocated to the poor could cause a "tsunami food" in countries of the European Union. Les Restos du Coeur, Secours populaire, the Red Cross and the French Federation of Food Banks (FFBA) have called on ministers to "take responsibility" to find a solution quickly and avoid a "humanitarian crisis" in 2012. "We are facing a new situation (…) While there has never been more demand, there has never been so many threats on our action," said Olivier Berthe, president of the Eating Heart.With 80% of European funds and less, "the associations are likely to distribute 130 million meals in less than in 2012," said Didier Piard, head of advocacy at the Red Cross.

According to one European diplomat, Germany, the United Kingdom, the Netherlands, the Czech Republic, Denmark, and Sweden have so far opposed a transitional formula that would overcome the objections of the Court of Justice and maintain the MDP at current levels for 2012 and 2013."We have nothing against helping the needy, but this is social policy, which is the responsibility of Member States," said a diplomat from one of these states.

13 million people in need

This program, established in 1987 under the leadership of the President of the European Commission at the time, Jacques Delors, in response to the call of the founder of the "Restos du Coeur" Coluche, helps distribute through 240 charitable organizations, support of European stocks pulled the CAP to more than 13 million people. Nineteen of the 27 EU states benefit, at whose head Italy, Poland and France.

But the last two years, the inventory level was so low that the EU had to compensate for large purchases of food destined for food banks.Following a complaint from Germany, the European Court of Justice in Luxembourg in April estimated that these purchases were incompatible with the CAP, requiring the Commission to bring the envelope for years to come at the existing stocks, or 113.5 million euros.

A prospect that provoked an outcry. The European Commission has finally found a way around the objections of the Court, but now faces the blocking minority. In recent days, several states in favor of maintaining the program at its current level have engaged in intense lobbying skeptical countries to try to convince at least one, and thus to shatter the blocking minority, explained diplomats.

European shares ended sharply higher Wednesday for the President of the European Commission José Manuel Barroso to present options for the introduction of euro bonds that endorsed a market, which remains concerned about the exposure of banks to sovereign debt.

The CAC 40 index ended up 1.87% to 2949.14 points, after opening down nearly 1.5%, confirming the already observed high volatility the day before.

Other major European markets, London was up 1.02%, 3.36% of Frankfurt and Milan to 2.69%.The pan-European Euro Stoxx 50 index gained 2.29%, but its implied volatility index remains at levels close to those recorded in August despite a decrease of 4.86% on Wednesday.

"The configurations of the lowest values ​​make you want to buy for those who like to put in front of the trend. Oversold is strong, with significant support.In the medium term, we begin to address our exposure, "said Valerie Gastaldy, an analyst at Day By Day graphic.

"In the short term, the market tent up, but nothing is well established," does nuance.

BACK safe havens

European banks (0.51%) continue to worry investors, especially with Moody's downgraded a notch notes of Societe Generale (-2.88%) and Credit Agricole (1.22%).

Swedish bank Swedbank lost 5.55% and the Belgian KBC 4.29%, while BNP Paribas, she was accused (-3.93%), the largest drop in the CAC 40 after announcing a reduction size of its balance sheet by about 10% by the end of 2012.

"The theme of the rulers continue to pollute the market environment.Within the European indices, banks once again accuse the largest declines due to exposure to sovereign debt.We also see that the volatility particularly for banks, "said Benedict Peloille, equity strategist at Natixis.

The real estate industry has accused the only sector down (-0.72%), penalized by several downward revisions of earnings estimates by analysts for several days.

However, the automobile (5.08%), including the Frankfurt Motor Show opens its doors to the public from September 15 to 25 after two days reserved for the press, the best performing European sector, supported in particular by redemption with it, the sector still showing a decline of more than 31% since July 22.

The relative optimism of investors has resulted in a marked rise in the performance of the German government bond (Bund) to 10 years to around 1.88% against 1.79% the day before closing. The other safe haven, gold, for its part has given up 0.88% to 1,817.15 dollars per ounce.

The euro, which was passed under $ 1.36 in the morning, rose against the greenback around 1.3706 dollars (0.17%).

The investment company Eurazeo announced Thursday a loss of 106.3 million euros in the first half due to losses on derivatives and goodwill.

The results related to the business are better and Eurazeo shows a revenue increase of 5.3% to 1.907 billion euros.

EBIT (earnings) of consolidated companies adjusted to 200.5 million euros it is up 7.7% over the same period last year.

Eurazeo reported a stable net asset value to 70.1 euros 70.3 euros against 31 December 2010.

The financial holding company, which had returned to profitability in 2010, reiterated its goal to create 2 billion of value creation by 2014 thanks to new acquisitions.

Eurazeo has launched this year in a series of acquisitions by taking over the fund OFI Private Equity, participation in the group of ready-to-wear Moncler and the land administration.

The holding company has stakes in listed companies such as Accor or private car rental company Europcar.

Christine Lagarde will be investigated for "complicity in false" and "complicity in misappropriation of public property." The former boss of Bercy, which is supported by the IMF, minimizes the consequences. Explanations. Christine Lagarde will be investigated for his role in the settlement of the case Tapie / Credit Lyonnais.

The Court of Justice of the Republic (CJR) has to decide: Christine Lagarde, former Minister of Economy recently promoted to head the International Monetary Fund (IMF), will make it the subject of an investigation. Involved, its role in the settlement of the case Tapie / Credit Lyonnais end of 2007, when it was flying Bercy. The petitions committee of the CJR was no further action or to file a "favorable opinion" in an investigation. She finally chose the second option.

Where does this decision?

Christine Lagarde, who took the head of the IMF in Washington on July 5, should have known since last month when his term would be marred by an investigation of French justice. The prosecutor at the Supreme Court, Jean-Louis Nadal, took the petitions committee of the RGC in the month of May, at the request of Socialist deputies.

From 2010 in fact, members of parliament had in effect challenged the decision by Justice Christine Lagarde to resort to an arbitral tribunal for the settlement of the case Tapie / Credit Lyonnais. But December 31, 2010, the Administrative Court of Appeal of Paris ruled inadmissible approach.

In February, it was the turn of the Court of Auditors estimated that the tribunal was not lawful. The judges felt that the state should have questioned the Parliament, and therefore there was "a lack of statutory authority."In late March, the Finance Committee of the National Assembly had also published an information report on the amounts allocated by the state to Bernard Tapie.

The petitions committee of the RGC, which was finally held on July 8, was first postponed its decision because one of its members, the magistrate at the Court of Auditors Laurence Fradin, wife of former minister Peter Joxe, recused herself at the last minute.She finally settled on Thursday.

What is justice wants to know?

Jean-Louis Nadal, several factors suggest an "abuse of authority" by Christine Lagarde in the arbitration that ended in July 2008 the conflict between Bernard Tapie and the former state-owned bank Credit Lyonnais, about the sale of Adidas in 1993.

The arbitral tribunal, a court privately condemned the Consortium de Réalisation (CDR), the public structure that managed liabilities of Crédit Lyonnais, Bernard Tapie to pay 285 million euros in compensation, or 400 million euros interest. While at the time Bercy considered that Bernard Tapie should really feel that between 20 and 50 million of the state, he would, according to some parliamentarians, pocketed more than 200 million euros.

Three points are controversial.First, the fact that Christine Lagarde has chosen, in 2007, a private arbitration rather than litigation. And against the advice of the Department, even though the State had won in 2006 before the Court of Cassation, the highest court in the country.

Second, the arbitration agreement was amended to permit the award of 45 million euros in the single title of "moral damage". Last, Christine Lagarde has given up on behalf of his ministry, in an appeal against the outcome of the arbitration, however, recommended services

Read about: What is accused in the case Bercy Tapie

What will happen now?

The prosecutor at the Supreme Court must now seize the commission investigating the RGC, which will investigate.Jean-Louis Nadal being who retired in late June and his successor Jean-Claude Marin has not yet assumed office, steps back to the first Dean of Advocates-General. Cécile Petit, who is temporarily acting, the commission should take "in the coming days."

The inquest will examine the heads of "complicity in false" and "complicity in misappropriation of public property", heads facing ten years in prison and 150,000 euro fine. A more severe penalty than for "abuse of authority", a crime punishable by five years in prison and 75,000 euros fine. The head of "complicity in false" was chosen because the arbitration of the dispute has been changed to a step in the procedure, allowing spouses Tapie reach 45 million euros in the single non-pecuniary damage, an "anomaly may constitute a false, "a judicial source.

Christine Lagarde's lawyer objected to the choice."It having been in the arbitration agreement, the term moral damages in place of personal injury," said Yves Repiquet But the former economy minister had no knowledge of this change. Therefore, "how do you it is complicit in that?" "I would add that this is not a fake. A project that is changing is not a fake. A fake is when you alter the authenticity of a document," he said. About the complicity of embezzlement of public property, Yves Repiquet judge that the choice of the petitions committee of the CJR is "madness".

Christine Lagarde is she considered?

If the investigation provides sufficient evidence, Christine Lagarde could be referred to the CJR, judging the facts alleged members of the Government in carrying out their duties.But not in the immediate investigation will be long and the boss of the IMF will probably not be judged for several years. Since its inception in 1993, the RGC has examined more than a thousand complaints and has found that six ministers.

What are the risks to his career at the IMF?

A few minutes after the announcement of the decision of the CJR's lawyer Christine Lagarde Yves Repiquet assured that the investigation is "not incompatible" with its "current position as executive director" of the IMF.

The Fund has indicated that member states represented on the board trusted the director Christine Lagarde, despite the opening of the investigation."The board believes it can effectively perform his duties as CEO," said the institution in a statement, noting that the possibility of such an investigation had been discussed prior to his appointment to this post .

"That the petitions committee decides whether or not to continue the investigations, I have exactly the same confidence and the same serenity," said his side had the applicant on July 6, days after his appointment to the IMF.

Veolia Environnement announced Friday that it would implement new measures for restructuring, conduct a redeployment of its activities and asset sales, which led him to abandon his goals.

The world leader in environmental services said in a statement that such measures would cause it to recognize in its accounts at June 30, asset impairments and provisions for a total amount that should be about 800 million euros.

The new measures announced Friday are dictated by the "latest developments in operations in southern Europe, particularly Italy and North Africa and the United States, particularly in a specific activity of cleanliness," said Veolia, without wanting to give further details.

The group added that for 2011, it will not achieve its growth target of net profit and he expects a recurring operating income excluding Veolia Transdev slightly lower at constant exchange rates compared to the recurring operating income published in 2010.

Previously, Veolia was a growth in recurring operating income by 4% to 8%, excluding merger with Transdev in transport.

The objectives of organic growth of activity, reduce the cost of 250 million euros on sales of 1.3 billion and free cash flow positive after dividend payments, however, are confirmed.

Veolia, which has particularly suffered from lower volumes of waste treated during the crisis, announced that he "will detail the steps to refocus and improve profitability" in the publication of the interim, on August 4.

It also indicates that the amount of sales and partnerships made during the first half exceeds one billion euros and releases capital gains above 400 million for discontinued operations.

The rating agency believes that the new aid package to Greece means a credit event of partial default on long-term debt of the country. The offices of the rating agency Fitch in New York.

Fitch Ratings has taken the first. Following the announcement of the bailout European Greece, Franco-rating agency in New York said Friday that it would put the note in default part of the country.

The agency, which considers "important" and positive "the agreement reached by the countries of the euro area to hold the debt crisis shaking the monetary union, says that Athens will default on its old bonds, according to its criteria . In effect the new rescue plan involves a contribution from private creditors, which amends the original terms of their loans.

A new note will then be attributed to the Greek sovereign debt, but probably in the bottom of the speculative grade by Fitch Ratings.