Lu Zhongyuan, vice president of the think tank Development Research Centre (DRC) of the Chinese government also believes that inflation will fall to 4.5% next year.

The economic slowdown expected – compared to a rate of over 9% expected this year – is estimated by the economist as "reasonable and acceptable" because, he says, the quality of growth improves.

These reductions, announced in conjunction with the release of third quarter results will speak mainly in Switzerland and the United States, and will be offset by the creation of 700 jobs in low cost countries and other countries, Novartis said in a statement.

The group also plans to close two locations in Switzerland and Italy. Part of the research will also be transferred from Switzerland to the United States.

For the third quarter, Novartis presented figures in line with market expectations.Revenues totaled $ 14.8 billion, up 18% in dollars and 12% at constant exchange rates.

Net income reached 2.49 billion dollars, an increase of 7% a year in dollars and 15% at constant exchange rates.

Analysts polled by Reuters on average expected a turnover of 14.86 billion and a net profit of 2.84 billion.

At 9:25, the title yielded 1.64% to 50.95 francs, while the European Health Index fell back 0.4%.

As feared, the Slovak Parliament rejected on Tuesday the strengthening of the Financial Assistance Fund of the countries in the euro area, potentially exacerbating the debt crisis. There is indeed no "plan B" to circumvent the veto.

"Of the 124 deputies present, 55 elected officials voted in favor, 9 against and 60 did not vote," noted the Vice-Speaker of Parliament Pavol Hrusovsky, after the vote. Without the 22 members of the SAS did not participate in voting, the coalition could not consider getting a required majority of 76 elected members.

Considering that the Slovaks are too poor to pay for the mistakes of others, Richard Sulik, the leader of this party, opposed the EFSF, unless that Slovakia is provided to pay his bill, an event swept by Brussels.

The result of this vote should logically lead to the collapse of the center-right party Radicova Ms. Iveta SDKU-DS who had associated with a motion of confidence in his cabinet.

EU leaders decided on July 21 to give the EFSF new powers including increasing its lending capacity to 440 billion euros. An envelope that could be used to recapitalize European banks.

But to become effective, these measures were to be ratified by the parliaments of 17 countries in the euro area, which had set up in mid-October. Sixteen countries have already approved these changes, Slovakia is the only one to refuse to ratify it.Bratislava had already refused to participate at the forefront of aid to Greece decided in spring 2010.

Strengthening the EFSF represents a contribution of 7.7 billion euros for this small country, entered the eurozone in 2009. Given the risk of paralysis, Bratislava has raised the possibility of a second parliamentary vote, in which the opposition Social Democratic Party (Smer-SD) could support the strengthening of EFSF. No date has been set for that vote.

The leader of the opposition Smer-Social Democrats SDn Robert Fico, former prime minister, warned that he would abstain from voting on Tuesday but could then provide support to the government in a second vote provided that early elections are held.

The European Commission had in turn put pressure indicating "strongly hopes" a positive vote to help ensure "the stability of the euro area".Monetary union is by no means destitute. But she should return to EFSF old formula, with a lending capacity and lower private supposed to allow new tools to stem contagion from the crisis in countries like Spain and Italy.

Already, the decisions taken on July 21 are partly obsolete. On the one hand, the EFSF will have probably still be muscular to leverage its clout to reassure markets on its ability to cope with a possible spread of the crisis in Italy or Spain.

On the other hand, the leader of the finance ministers of the euro area Jean-Claude Juncker acknowledged Monday that the losses will suffer the creditor banks in Greece are likely to be greater than expected.

Made outstanding contributions in the second aid package to Greece, decided July 21, banks had committed to eventually accept a depreciation of 21% of their portfolio of Greek bonds, in order to relieve Athens , awash in debt of close to 350 billion euros. But this figure of 21% now seems outdated. "The discussions focus on a discount of 50%" today, said a European government source told AFP.

If this threshold is reached, Greece would move to a default similar to Argentina in 2001. The country's creditors in the end had to accept a discount of about 70% on a debt four times less than that of Athens.

Greece, however, snatched on Tuesday troika comprising its creditors (European Commission, European Central Bank and International Monetary Fund) the promise of payment in November of 8 billion euros.

This will prevent an immediate collapse and allows it to buy time in negotiations to restructure its debt in the euro area. The fears weighing on the banking system led the Europeans to agree to recapitalize their banks. The Commission President José Manuel Barroso, will also Wednesday "proposals" in that it will present to the Commissioners.

The Basel Committee and will conduct the first global effort to force banks to hold more liquid assets, said Stefan Ingves, who is also governor of the Swedish central bank.

"A balkanization of rules on the long term is in nobody's interest," said Stefan Ingves FT.

The Basel III should lead banks to hold more capital to better deal with unexpected losses, but concerns are emerging that some countries do not respect them.

The newspaper reported that the committee plans therefore to publish maps showing which countries of the world follow the rules or not. The committee will also send teams of experts to check whether the transposition laws and regulations of each country are consistent with the agreement.

The Basel Committee is finalizing details of two rules of liquidity: the liquidity coverage ratio, which could require banks to hold sufficient liquid assets to survive a crisis 30 days, and the ratio net of stable funding, which would force financial institutions to make greater use of forms of long-term financing.

Organizations require retirees to protest Thursday in 110 cities against the plan anti-government deficits, the loss of purchasing power and delayed the reform of addiction. Paris will be the highlight of this day inter-engagement, with a planned demonstration at 14h between the Place de la Bastille and of the nation, the call of the UNSA-retired from UCR-CFDT, the Unar-CFTC, the UCR-CGT and the FGR-FP.

These pensioners' organizations have condemned the government decision to postpone indefinitely the reform of financing of the loss of independence and recalled "the need to create a universal benefit to compensate for the loss of autonomy regardless of age, care for national solidarity, as part of Social Security. "

Campaign promise of Nicolas Sarkozy in 2007, this reform was to improve the quality of care for older people and reduce the cost for individuals, has been postponed several times, the last time in late August. But is conspicuously absent from the bill funding the Social Security (PLFSS) for 2012, presented Wednesday by the Cabinet, even if it is intended as annual increases in funding for the elderly.

Regarding the purchasing power, "which continues to deteriorate," the five unions fear a further decline due to plan anti-government deficits announced in late August. At the same time, they demand a significant increase in pensions, especially for low pensions, minimum pension at the minimum wage and a new method of indexing.

The UCR-FO, which was signed in July calling for the single day of action, has finally shown solo on September 20 with all the militants OST to the trial of "austerity".

The markets showed positive trends at the opening, the unit displayed the day before by Angela Merkel and Nicolas Sarkozy have partially reassured investors about the impending failure of Greece.

The CAC 40 has pressed the bar of 3000 points and finished with a gain of 3.27% to 3045.62 points.The index was pressed from the opening above a key technical resistance close to 2,950 points, which could lead the benchmark index of the Paris to its next significant resistance located nearly 3,120 points, analysts say techniques.

Investors are nevertheless concerned about the Greek case and a possible contagion of debt to other countries in the euro area, some traders felt that the current phase of increase is just a technical rebound.

"In our scenario, China is a bumpy landing, the euro survives, growth in the United States is at a new pace disappointing, but still positive, and central banks keep rates low for a while really, really long , "wrote strategists from Societe Generale."Meanwhile, risk indicators show that fears of a catastrophic scenario are already circulating."

Other European markets, London has gained 2.11%, 3.15% Frankfurt and Milan 3.55%. As for the pan-European Euro Stoxx 50 index, it took 3.47%.

FLIGHT OF BANKS IN THE AFTERNOON

The renewed optimism, even relative market has benefited particularly to financial and cyclical stocks.

The indices of banks (4.08%) and insurance (4.23%) topped the increases in perspective of a coordinated intervention by central banks to address the problem of liquidity of European banks.

"They have to do something. We saw the announcement yesterday that banks had asked for two dollars to the ECB.We are again in the dollar shortage. They are forced to address this problem.If they do not, everything stops, "said Philip Lawlor, strategist at Smith & Williamson.

Beyond the risk of losses from their exposure to sovereign debt vulnerable countries in the euro area, especially Greece and Italy, the market fears that European banks, French banks in mind, are facing problems refinancing if the market of bank financing to complete paralysis.

BNP Paribas has finished well ahead of increases in the ACC and the index of banks in Europe, with a gain of 13.38% to 30, 500 euros, after gaining up to 22% shortly after the announcement by the ECB the resumption of contributions in dollars.

UBS, however, ended in a fall of 10.8%, the Swiss bank has suffered from the revelation of a loss estimated at two billion dollars (1.46 billion) related to transactions by a trader.

The pressure to sell the investment bank will increase further after the discovery of the fraud in the Swiss financial institution.

Among the cyclical sectors, the European car gained 3.18% and the construction took 3.22%.

Some brokers are beginning to find that the decline in the prices of cyclical stocks has been excessive, including a false scenario of deep recession as the fall of 2008.Citi went to buy ArcelorMittal, saying it is time to buy the title, whose prices anticipate "the end of the world."

The action of the steelmaker gained 4.31% to 13.400 euros.

Illustration of a slight relaxation, the performance of the German government bond (Bund) and 10 years went back around 1.93% against 1.87% on Wednesday and that of the Greek debt to trade around 23.15 % against 25.15% the previous evening.

The euro also regained some ground against the greenback and is trading around 1.3860 dollars, against 1.3741 the previous day.

The Spanish Treasury has issued on Thursday to 3.95 billion euros in three auctions, reaching the top of the range expectancy of 3 to 4,000,000,000 euros, but at a high cost, despite the support of the Central Bank Europe in the context of fiscal crisis.

The group that owns Gucci and Puma, in the very focus on luxury and sports fashion, is in discussions for several weeks with high-end Italian tailor, had they learned from sources close to the matter.

The sources said the Italian company would be valued around 350 million euros.

"We are in discussions with them, as with others, but nothing is finalized," said the CEO of PPR François-Henri Pinault a few journalists during a trip to China last weekend, according to the spokesman for PPR.

The CEO added that PPR was in competition with others, as well as investment funds.

He also said to be interested in Chinese brands have a "strong identity," but said not to have found so far.

Asked about the sales process of Redcats (La Redoute, Vertbaudet and Cyrillus), François-Henri Pinault has recognized that the deterioration in the credit markets might complicate the operation.

"Access to credit is crucial.There is a risk, for sure, and we watch it closely, "he said.

PPR was happening in late July to begin the process of transfer of Redcats, which he sought to draw between 1.5 billion and 2.0 billion euros.

With the turmoil that has gripped financial markets, the valuation problems it poses and the deterioration in the credit markets, many bankers fear a setback to the resumption of mergers and acquisitions initiated this year.

Already, some observers doubt that the auction held for Redcats to succeed.

The least we can say is that the summer was hectic, not just on the weather front. For a month, equity markets are yo-yo, mired in a debt crisis which it is not the end. Despite the many political will to stem the panic room, investors have never been so fearful. The CAC 40 has lost 16% within a month. Back on the reasons for the stock market panic.

Why stock markets have plummeted?

To explain the crisis of the summer, we should go back a long time ago.Back on the crisis of private debt (subprime) that resulted in a public debt crisis (see our graphic here). Also explain how the United States are in debt without limit to display a huge debt of 14,300 billion, or how the eurozone failed to apply themselves to fiscal discipline to which she had promised. But that was before the summer.

To stay on the stock market crisis, therefore, it all started on July 22 after the publication of bad U.S. indicators and the unprecedented thing downward revision of U.S. growth earlier. The stock markets began a fall that they will recover just 13 sessions later. For the meantime, a decision is much more brutal moral taint the market.We are Saturday, August 6, and the rating agency S & P decided to degrade the rating of U.S. debt, despite the agreement reached a few days earlier on raising the debt ceiling. Involved, she said, the risk of slower U.S. growth, and the inability of leaders to agree on how to reduce the deficit. The following Monday, all eyes are on the stock exchanges that predictable drop considerably. The crash (10% drop in one or more exchanges in a day) is narrowly avoided, but the market share is considerably achieved. Also much more than U.S. government bonds, investors know that deep down safely.

In fact, the controversial decision to S & P revealed a fear in the markets that a recession in the global economy.Problem of debt and sluggish growth, the perfect ingredients Mix together the …

What role banks played in the crash latent?

Initially, banks were particularly affected by the stock market tumble, as the other values ​​are highly dependent on global economic growth. Especially since they are very exposed to European sovereign debt. The BNP, to name it, holds 22 billion euros of bonds in Italy.

Soon, banks become the target of the obsession of markets, victims of more or less misleading in their health. Societe Generale is the most striking example. August 8, title closing on a drop of more than 20%, the victim of a rumor amazing: according to British newspaper Daily Mail, the bank is on the verge of bankruptcy and could be nationalized.The same day, other rumors are springing up everywhere on the web and in trading rooms, which evoke a degradation of the note next to France by the rating agencies, or a default next to Italy. The surprise return of Nicolas Sarkozy, who convened a crisis meeting at the Elysee Palace, lends credence to the rumors. By which end of course self-sustaining.

We are in the month of August, and trading rooms are empty, which probably accelerated the downward movement. As for speculation, it has played in full, the brokers down on betting the securities most sensitive. The AMF decided to do the same and the device temporarily banned short selling. But it's too late, the damage is done. The banks are worse.

Will follow a brief period of calm in the markets.The latter, who probably over-interpreted the risks to the economy, take over for a few days of color. But soon the panic is back. August 18, the Fed launched an investigation into the level of liquidity of U.S. subsidiaries of European banks. The shock is immediate. Investors, who still lead the terrible crisis of 2008 that followed the collapse of Lehman Brothers, fear that the interbank market flu. That is to say that the banks no longer want to lend to each other.

The credit facilities with the ECB rise dangerously, proof that banks are less and less confidence. The scenario of the credit crunch, that banks can not finance the economy is on everyone's mind.

What can we expect next?

It's hard to say.In exchange, we must not underestimate the power of self-fulfilling prophecies. In addition to the real issues of debt, all depend on the credibility of messages and actions that will be made at the political level. But also of how states will implement the drastic austerity measures they have imposed. This weekend, Barack Obama and Angela Merkel have agreed that a "concerted action" to stimulate global growth. A first step has seemed rather reassure the markets. At 16:15, the CAC 40 showed such an increase of 2.57%.

According to most economists, the scenario of a global recession is not yet on the agenda. However, all the engines of the Western economy are seized and monetary institutions and public authorities have more tools at their disposal in 2008. Namely the management of fiscal and monetary policy.The example shows a Fed interest rates near zero and did not want recently used his last cartridge, the famous EQ3 (quantitative easing) the injection of liquidity into the system, including the long-term in any case contested.

Anyway, no good news on the macroeconomic front, there is little chance that the markets will resume in earnest. The yo-yo is expected to continue for some time.

Read also: Your fears about the crisis are justified?

The CAC 40 index closed down 1.01% at 3087.64 points, but above the lowest of the day (3014.37 points) hit immediately after the Fed chairman has assured he would use all the tools necessary to support the economy.

For the week, the benchmark index of the Paris advance 0.38% after falling nearly 18% during the first three weeks of August.

London finished little changed (-0.02%), Frankfurt lost 0.84% ​​and 0.97% Milan.Of the European indices, the EuroStoxx 50 yielded 1.18% and 0.65% Eurofirst 300.

Ben Bernanke was "stuck in terms of what he could say. The markets had intensified the pressure for him to say more but he must first win the support of the FOMC (monetary policy committee, ed)," says Julian Callow, economist at Barclays Capital in London.

"The fact that there will be a two-day meeting of the FOMC is interesting and reflects the Fed's will to end disagreements. The decision to stimulate the economy depends on the statistics," he adds.

"Any decision by the Fed has been postponed to September.Long-term fundamentals of the U.S. economy are not affected by the crisis dixit Bernanke, "said Philippe Waechter, director of economic research at Natixis Asset Management.

Waiting for the FOMC 21 AND September 22

"The current imbalance requires a course correction. The unemployment rate is too high and inflation (underlying) low. If there is no significant rebound and inflection of the profile of the activity before the meeting of September 21 and 22 of the Fed action will be announced then, "said he.

As for values, financials weighed on the markets. In Paris, BNP Paribas (-2.33%) and Axa (-3.44%) were the main contributors to the decline in the CAC 40.Natixis, the largest decline CAC lost 4.51% and 2.82% Societe Generale.

Technip as the cyclical (1.76%), Michelin (1.31%) and Alcatel-Lucent (1.02%), have resisted.

The euro rose and traded around the 1.4460 dollar.

The performance of the German Bund to 10 years, the benchmark euro zone was stable at 2.17%, the 10-year T-Bond American relaxed by 3 basis points to 2.21%.

The composite PMI, which includes industry and services, rose to 53.6 in version of "flash" against 53.2 in July.This last figure marked a low of 23 months.

In services, the purchasing managers' index, which also shrank in May, has started to rise to 56.1 from 54.2 last month.

But this obscures the rebound of the index decline of manufacturing, which dropped to 49.3 and returns for the first time since July 2009 under the 50 between contraction and expansion of the business.

Economists and analysts polled by Reuters on average expected a less pronounced decline to 49.7 for the industry and a decline to 53.5 for services.

The survey also shows that the new contracts signed by French companies (industry and services combined) recorded in August their lowest growth for two years.

More worrying in the services, the expectations component of business leaders is down more than five points from one month to another.

"Manufacturers are faced with the contraction in output and order books at a time when declining confidence in the services sector," he told Reuters Chris Williamson, chief economist at Markit. "So we really can not imagine how the growth of the service sector can remain at current levels."

Based on the latest figures from PMI, the French economy would see growth limited to 0.1 or 0.2% in the third quarter, he said.A rebound that would be only symbolic after the stagnation of the period from April to June announced ten days ago by INSEE.

Among the few positive results of the flash PMI figure the resilience of employment, which is an upward trend, the number of recording even the most sustained growth for four months.

These indices are calculated on the basis of about 85% of respondents in the sample followed by Markit, consisting of 750 business services and manufacturing.