The draft law imposing a tax on financial transactions will concern only companies headquartered in France and whose market capitalization exceeds one billion euros, according to BFM radio-TV business, which publishes the text Monday.  

The project, to be presented Wednesday by the Cabinet, applies to "acquisition" of securities "issued by a company whose headquarters is located in France and whose market capitalization exceeds one billion euros in the first January of the taxation year ", according to this document.

It is therefore a levy of 0.1% on the exchange of shares and credit default swaps (CDS) called "naked", these financial derivatives intended to act as insurance to bondholders but are accused of promoting speculation on sovereign debt.

One hundred companies concerned

Currently, more than one hundred companies listed on the Paris Stock Exchange exceeds the market valuation. The high-frequency trading, suspected of serving speculation and based on discussions conducted a nanosecond, by computer, will also be affected by this law.  

But order cancellations or order changes will, however, lower taxes beyond a certain threshold. "Since the rate of cancellation or change orders within the scope of this tax exceeds a threshold, on a trading day, the tax amounts to 0.01% of the amount of orders canceled or changed beyond this threshold, "the statement said.

The document states that "the threshold is set by decree" but "can not be less than two-thirds of orders addressed and can be modulated depending on the size of balance sheet of the operators concerned." This tax would generate a billion euros a year will be applied from 1 August, stated the head of state Nicolas Sarkozy announcing its establishment.

The President of the New Centre, Hervé Morin, future presidential candidate, said Sunday during his campaign that he would defend the idea of ​​an increase in working hours, with a 37-hour week, that France found its prosperity. "We constantly talk about the restoration of public accounts and the return to a balanced budget.

Europe

– Provide Europe with a single presidency created by the merger of the European Council President and the President of the European Commission

– Making of the European Commission the true government of the Union

– Provide the euro area economic governance: generalization of qualified majority voting, can create Eurobonds to communitarise part of European debt, creation of a Monetary Fund and a European rating agency.

– Establishment of a European reindustrialisation.

Around 4:05 p.m. GMT, group, owner of the trademarks Corn Flakes, Frosted Flakes and Rice Krispies, lost 7.00% to 50.25 dollars while the S & P 500 advanced 1.04%.

In 2010, the company had to recall millions of boxes of Froot Loops, and other cereal brands, due to suspicious odor.

She reached the third quarter net earnings of $ 290 million (211 million) or $ 0.80 per share, against 338 million ($ 0.90 / share) a year ago.

Europe will she fall back into recession?

The business environment is being degraded rapidly in Europe. This degradation affects all sectors and all countries. It was partly due to the crisis at work currently generating considerable uncertainty about the future, agrees and makes it more complicated financing and forced European states to austerity measures. However, even very poor, the level of the business climate remains consistent with a very small increase in activity, as evidenced particularly in industrial production in the euro zone, France and Germany.

How will evolve the euro?

It is undeniable that the crisis of public debt in the euro area weighs on the course of the single currency.However, the dollar is weakened by the weak economy in the United States, the concerns generated by last summer by the political debate on the budget and the debt and the expectation of monetary policy remains sustainable ultra- accommodative. In total, we expect an exchange rate of euro / dollar relatively stable beyond a very volatile as of weakness of any currency. In a broader perspective, the fact remains that these two currencies would be permanently impaired. Therefore, the pressure to appreciate the currencies of major emerging economies and countries like Switzerland would be persistent.

Chancellor Angela Merkel ended the discussion at a joint press conference with Nicolas Sarkozy, saying that the finance ministers of the euro area were working on two models to strengthen the capacity of the European Financial Stability Fund (EFSF).

"The two do not include the European Central Bank because the treaties do not allow it," she said.

Nicolas Sarkozy for his part said that France "is as much" the independence of the ECB as Germany and he returned not to the Heads of State and Government instruct the guarantor of stability of the euro.

France is still defended publicly on the eve of the weekend to grant a banking license in EFSF, which would have the advantage of giving unlimited access to liquidity from the ECB.

It could rely on the support of 14 of the 17 countries in the euro area, Italy, Spain and Belgium being advanced against a Germany that had only the Netherlands and Finland to its sides.

While the looming G20 summit in Cannes in early November, the United States, the major emerging countries and the International Monetary Fund (IMF) also grew in the wings for the firewall erected by Europeans to be the strongest possible and involve the institution in Frankfurt.

"The problem is not Greece, but installing an effective firewall to prevent contagion to the rest of the euro area," summarized a source close to the G20, which emphasizes the risks posed by European dithering on the global recovery.

"For this, we must size and speed (…) Only the ECB has the size and speed of action needed," the source said.

FAST ACTION

Another source said that if the French Minister of Economy, Baroin, suggested Friday night flexibility on this issue was first to open the door to possible trade-offs between different aspects of the response to crisis in which STRIPS Europeans.

Because if the Germans are opposed to the transformation of the European Financial Stability Fund (EFSF) in the bank and to leaving the ECB to become lender of last resort in Europe, the French refused to endorse them on the discount of 60% Berlin demanded that the Greek bonds.

Remains unknown: the position of the European Central Bank after Jean-Claude Trichet has left office, October 31.

The French are hostile to the evolution of double EFSF and the institution of Frankfurt but his successor, the Italian Mario Draghi, the current governor of the Bank of Italy and considered more pragmatic, there is not necessarily opposed.

"It is likely that Italy is on the side of France against the toughest positions defended by Germany and the Netherlands", do you confirm the Italian Treasury.

The arrival of the "pragmatic" Jörg Asmussen to the Board of the ECB to replace the "hawk" Jürgen Stark as the representative of Germany as well as a possible French digitally replacing Jean-Claude Trichet could also influence the position of guardian of the euro.

In the past, the ECB had similarly plot of "red lines", as its absolute refusal to buy government bonds markets or to consider a discount of Greek debt to be forced to abandon with worsening of the crisis.

Meanwhile, two solutions remain on the table to maximize the firepower of the EFSF: Germany and the ECB's call for a partial insurance mechanism sovereign debt of countries in the euro area.

The alternative would be to create a special vehicle powered by such banks as well as foreign sovereign wealth funds and resources which the Fund would be available to intervene in the secondary market.

Concerns are growing stronger with the approach of the EU summit to be held this Sunday. Around 10 am, Paris lost 1.6%, London 1.3%, Frankfurt 1.5%. At the same time Milan fell by 1.8% and 1.3% in Madrid. The Nikkei of the Tokyo Stock Exchange finished Thursday's session lower by 1%, investors fear that the summit of the European Union this weekend does not solve the crisis in the eurozone.

These concerns were reinforced by the Wednesday night meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel.The two leaders met for nearly two hours in Frankfurt around the future of the euro area. Nothing filtered out of the interview but the discussions have included the lending capacity of EFSF, the relief fund in the euro area, which must be set up to help countries in trouble. According to the German press, Berlin would be in favor of strengthening the EFSF to 1.000 billion euros, but more like Paris. In addition, Nicolas Sarkozy wants to transform this new instrument in the bank, which refused Angela Merkel and Jean-Claude Trichet, President of the European Central Bank (ECB).

Rumors about the amount of its capacity should continue to circulate in the markets, which should make the stock markets volatile."As we approach the summit, nervousness increases and investors away from equity markets," said the note IG Market Analysis, adding that the latest results of companies from the United States are often disappointing and not conducive for optimism.

In a joint statement the leaders of the MEDEF French, German BDI and Confindustria Italian call for an early implementation of agreements reached in recent months to increase the efficiency of European Financial Stability Fund (EFSF) and strengthen the Pact stability and growth.

"The devices are not already considered, however, the 'leap' required to overcome current deficiencies in the euro area," they add.

"That can be established the foundations for a Europe of the XXI century prosperous and politically strong, we ask the EU to launch the construction of a new treaty, which will be a new step towards a political union and closer economic ".

BDI and Confindustria Medef particular wish that the future treaty changes the future European Stability Mechanism (to take over the EFSF in 2013) by granting an independent fund support only under strict conditions.

They also called for member countries of the Union "structural reforms oriented growth to enhance the competitiveness of their economies."

"Member states should focus their reform programs along the lines of the best examples and not to the EU average," said the appeal co-authored by Hans-Peter Keidel, president of the BDI, Emma Marcegaglia, president of the Confindustria and Laurence Parisot, MEDEF their counterpart.

"There is no reason for the real economy plunged into crisis again. The global real economy is intact," they say.

Saab, which has hardly produced a car for six months, is in receivership.A loan of EUR 70 million guaranteed by the Chinese Zhejiang Youngman Automobile Lotus is still not activated.

According to Dagens Nyheter, Youngman would withdraw and abandon its commitment to put money into Saab over the long term.

"But Geely is interested in everything, in terms of production and development," one told the newspaper.

Geely, which acquired another Swedish Volvo cars in 2010, approached the administrator of Saab, is there still told the newspaper.

But Lawrence Ang, executive director of Geely Automobile Holdings, a subsidiary of Hong Kong-listed Geely, denied the information.

"As far as I know, we do not have that kind of project," he said, stressing that Geely was very busy after its acquisition of Volvo cars.

A Saab spokesman declined to comment.

Ian Fletcher, automotive analyst at IHS, sees no interest in such an alliance.

"Volvo and Saab, in fact, fighting for the same space for years. I think in the end, Volvo would be happy with the release of Saab."

He recalled that Geely does not need additional production capacity in Sweden and he can do without technology from Saab.

"I see simply no reason they could intervene," said the analyst.

Saab has gone from crisis to crisis this year.It closed in April, unable to pay its suppliers to whom he owes more than 150 million euros. In August, it was no longer able to pay salaries.

Saab was bought by Spyker, now Swedish Automotive, General Motors in early 2010, as he was leaving another period of bankruptcy.

The sale of the Spyker sports cars in the Swedish Automobile Vladimir Antonov Russian investor has also failed. These cars must now be sold to a private equity investment.

At 9:05, the CAC 40 index advances 2.57% at 2923.78 points.

The London Stock Exchange gained 2.27%, 2.15% that of Frankfurt and Milan up 1.34%.

The pan-European Euro Stoxx 50 index rose 2.1%

European banks index was up 2.98%

This study, in which terms are used particularly alarmist, has plunged the euro fell to a seven-month low against the dollar, less than $ 1.35.

"The budgetary imbalances sharp rise in the euro area as a whole and the extreme situation of some individual countries could undermine the stability, growth and employment, as well as the sustainability of economic and monetary union ( EMU) itself, "it said.

It should be automatic financial penalties for countries whose deficit exceeds 3% of GDP, warns the document released Thursday by the ECB but not formally approved by it.

The study recommends that national budget deficits are approved at European level in case of exceeding safe levels and that States are under financial supervision if the adjustment programs do not meet the objectives.

The ECB added that it is impossible to say for sure whether the latest reforms will be sufficient to ensure sound fiscal policies.

The German Jürgen Stark, chief economist of the ECB and member of its Executive Board, resigned ten days ago, apparently because he disagreed with the policy of buying government bonds implementation by the central bank to fight against debt crisis in the euro area.

Jürgen Stark has continued to call on politicians to develop operating rules for the euro area more stringent.

At this stage, three countries in the euro area – Greece, Ireland and Portugal – have had to resort to an international plan to support developed by the European Union and the International Monetary Fund (IMF).

The ECB has already spent over 150 billion to purchase debt securities issued by countries in the area to prevent the contagion of the debt crisis, including Spanish and Italian paper.

In addition to Jürgen Stark, the study was signed by Ludger Schuknecht, Philippe Moutot and Philipp Rother.