World and National News

The battle of mergers is relaunched in the mid-markets. The London Metal Exchange (LME), the first metal market in the world, 134 years old, is about to be redeemed. According to a source familiar with the matter, the buyers would be the Singapore Exchange (SGX) associated with the London Stock Exchange (LSE). Both players could make an offer to one billion pounds (1.15 billion euros).

The negotiations around the LME were made official last week by its owners, trading houses and banks market users. They admitted that it was highly coveted. Without the name, the CEO of the LME, Martin Abbott, said yesterday that a dozen candidates had appeared.Analysts believe that among them are the American Stock Exchange or ICE that of Hong Kong.

Operation diversification

If the LSE and SGX are able to stand, the operation will allow them to diversify into the sector buoyant metals brokerage. The London Stock Exchange represents 80% of volumes on world markets of the future of metals and recorded a record 120 million packages last year, 2 payday loans.8 billion tonnes of metal. In value terms, this represents 11,600 billion (about 8.56784 trillion euros).

This acquisition will also provide them the opportunity to recover from failures of failed attempts to merge internationally very competitive market of securities and derivatives.To recap, the LSE had to abandon its bid on the Toronto Stock Exchange on behalf of a syndicate of Canadian banks, while the takeover of SGX on the Sydney Stock Exchange (ASX) was rejected by the Australian Government five months ago.

Any bid will nevertheless be accepted by 75% of its shareholders, which include Goldman Sachs, JP Morgan and trading companies.

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Nicolas Sarkozy could not miss the start of construction of the first TGV in Africa and the Arab world. Especially if a French company, Alstom, in this case is at work. The French president will then visit a few hours to Tangier on Thursday to give the start of construction of the train Tangier-Rabat-Casablanca.

After a ceremony at the station in Tangier, Nicolas Sarkozy will hold talks with King Mohammed VI at the Palais Marshan, during a face-to-head followed by a working lunch. Then he will speak to the press at 17:15 Paris time.

One site to 3 billion

Four years after the announcement, the work can begin. This project should permit the entry into service in 2015 a train up to 320 km / h linking Tangier to Casablanca and reducing by more than half the travel time between the two cities, which will go from 4:45 to 2:10.

Its cost is estimated at 33 billion dirhams by the Moroccan government (3 billion euros) and will be partly financed by loans to prime French, Moroccan funds from Gulf countries and the Arab Fund for Economic Development and social. The European Investment Bank (EIB) was, she refused a competition of 400 million euros, which complicated the closure of the project.

Moroccan media while Germany suspected of having deposited its veto against the funding because of the choice of the Moroccan government to favor the French Alstom in its German competitor Siemens business card.The French group, which had previously exported its expertise in high-speed train in South Korea, Spain and Italy to Morocco will provide 14 trains of eight cars, for $ 400 million euros.

Economic projects

While the French government scans the remark, some commentators believe that the choice of Alstom was used to compensate the loss by France of a contract to supply fighter jets to the Moroccan Air Force, who had to prefer the F16 U.S. Rafale from Dassault Aviation.

This episode now seems forgotten. Nicolas Sarkozy, focused on investment opportunities represented by Morocco, has chosen to take with him two ministers, Eric Besson for Industry and Thierry Mariani for Transport and Secretary of State for Foreign Trade Pierre Lellouche.

The Hexagon is the first partner of the Sharifi kingdom, providing 15% of imports from a country with an average growth of 4.5% to 5% for ten years, accounting for 21.5% of its exports, and employing 100,000 Moroccans in its 750 subsidiaries. Other large projects include the creation time of a Renault factory "zero pollution" with Veolia Environment, which should become operational in early 2012 or Tanger-Med, a huge industrial center and port that participates in a Bouygues consortium.

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Reportedly, the government will create a new tax for manufacturers subject to the quotas of CO2. This tax will apply only one year in 2012. It will be between 0.08% and 0.12% of the turnover duty of the companies concerned. "Small polluters", those who received quotas for less than 60,000 tons of CO2 annually, will be exempt. Bercy is estimated that this tax will yield € 223 million. It will be paid by 400 companies. In fact, the electricians (mainly EDF) and large boilers are the main contributors: they will provide one third of tax revenues. Other very involved industries: food processing, chemicals, metallurgy and automobile industries.

The purpose of this tax, which will be part of the draft budget law (PLF) for 2012: to allow Paris to meet a European requirement short term personal loans.Around 1100 French facilities are subject to quotas of carbon. Each year, new plants, boiler plants and enter the system. Now the state no longer had to allocate quotas to new entrants. It must be purchased from the Commission or on the market, and then distribute them free to businesses. By creating this new tax, the state funds this additional cost.

Moreover, the government should announce at the presentation of a PLF government deficit to 81.7 billion euros in 2012. This improvement – the deficit to 95.7 billion in 2011 – is partly the result of the austerity measures taken by the government. The tax burden should also exceed 44% of GDP in 2012, against 42.9% this year. Despite this, the debt will be around 87% of GDP in 2012.

A new week high voltage for Greece and the euro area. In fact, Sunday, the International Monetary Fund (IMF) said that a delegation will travel to Athens this week to determine whether or not the country can benefit from the sixth round of eight billion euros of the loan in May 2010 , aid became vital for the country. The CEO of the institution, Christine Lagarde, has indeed met the Greek Finance Minister Evangelos Venizelos on Sunday to discuss the conditions for the return of the IMF in the country to complete the fifth audit of the Greek economic program. The mission "will certainly place this week," said Fund.

In parallel, Evangelos Venizelos, the Greek finance minister, yesterday met with Jean-Claude Trichet, head of the ECB, to negotiate a restructuring of the Greek debt at a discount of between 40% and 50%.The minister said that "there is no alternative to restructuring." The latter has also expressed confidence the outcome of the vote in parliament of the new austerity plan, condition of the granting of new loans of the troika, because according to him "which member will take responsibility to lead Greece to failure to pay? ". A view shared by the French Minister for European Affairs, Jean Leonetti, who said Sunday that "Greece will avoid bankruptcy because it is the interest of the Greek state, the Greek people and is the interest of us all.If Greece were to fail tomorrow, it would cost more than if it did not go bankrupt, "he said on Radio France International.

The rising social discontent in Greece

The Heads of State and Government in July found an agreement to rescue Greece and broaden the scope of intervention of the relief fund of the zone (EFSF), including providing it with an instrument enabling it to market purchases of debt of states in difficulty. This agreement is being ratified by 17 national parliaments in the area. The vote of Germany, the country is the biggest contributor to EU aid plans appear on track.In a television interview Sunday night, German Chancellor Angela Merkel has indeed shown the outcome of the confidence vote scheduled Thursday in the Bundestag.

But Greece will probably have to wait beyond the holding of a Eurogroup meeting on Oct. 3 before a decision on the release of the next tranche of aid. "Given the delay by the Troika mission (IMF, ECB and European Commission), I do not think that the next meeting of the Eurogroup, October 3, a decision on the sixth installment," said Sunday Washington Deputy German Finance Minister, Jörg Asmussen

In addition, the rising social discontent in Greece.Further strikes are planned next week before a general strike on October 19.

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The smart electricity meter – or communicating – also known as counter Linky, will be extended to all of France. The decision will be made official Wednesday by the Minister of Industry, Eric Besson, attended by all stakeholders in this important industry. So far, this counter had been the subject of a test phase, in Lyon and Touraine.

This counter communicator, which allows to know its power consumption in real time and thus better control, will be installed progressively from late 2013-early 2014. A five-year period is planned to equip 35 million consumers, knowing that the European directive assigns a target that 80% of users are in possession of this tool in 2020. "This counter is a future asset for the modernization of the electricity distribution network.It will particularly help to end the current system of estimated bills, sources of discussions, said one industry player. In addition, the meter installation will require the creation of over 10,000 jobs. "

Throughout the past few weeks, a severe battle was between ERDF – a subsidiary of EDF in charge of distribution – and local authorities about the property counters Linky. Upon arrival, the government has not decided to change the current law, which states that the networks, which include counters, belong to communities. In support of its reflection, the government relied on the report of "Committee Linky" on the generalization of communicating electricity meters in France.The report, led by parliamentarians Ladislas Poniatowski and Jean-Claude Lenoir, was sent Sept. 21 to Eric Besson.

According to the overall pattern was retained, ERDF will be responsible for ordering and installation of new meters. These will be installed free of charge, the government decided that not considering either a tax increase for network use, one of the elements of the bill paid by customers.

A cost of 4.3 billion euros

In charge ERDF therefore, which plans to spend 4.3 billion euros to the generalization of the program Linky, to compensate the investment by the productivity gains achieved through this tool. For example, the new meter will perform many interventions that will distance the presence of agents of ERDF to the customer will no longer be necessary."But whatever the gains, a system of passing on costs is possible sooner or later," suggests an industry expert.

As for local, they indicated that the expected effectiveness of the new meter is fully proven. In other words it is shown that consumers can realize significant energy savings. Widespread Linky is a crucial element of energy efficiency policy of the government at a time when energy prices rise.

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The U.S. stock markets, continue to fall on Friday. The Dow Jones was down 0.55% at 10,680 points and the Nasdaq 100 lost 0.06% in 2454 symbolically points. The markets are still haunted by the fear of a recession in the U.S. and the crisis of public debts. Wall Street tumbled Thursday was at the end. The Dow Jones ends with a fall of more than 3%.

In an attempt to stop the stock market crash, the finance ministers and central bankers of the twenty leading economies gathered in Washington last Thursday pledged to provide "a strong and coordinated international response" to the crisis at a meeting in Washington. In a joint statement, they agreed to ensure that "banks have adequate capital" and promised to provide "the necessary liquidity" to financial institutions.But for specialists Aurel BGC, "the real decisions are referred to the Summit of Heads of State and Government to be held in Cannes, 3 and 4 November."

The Perfect Storm, the large emerging group of "Bric" were "determined to accelerate structural reforms to sustain strong growth." Brazil, Russia, India and China but also South Africa so consider "if necessary, to provide support through the IMF or other international financial institutions, to address the current challenges facing the global financial stability, according to the circumstances of each country. "The inventor of the BRIC, Jim O'Neill, chairman of Goldman Sachs Asset Management, said however that emerging markets are likely to require at least, in exchange for their support, greater clarity on how the Europe has to solve its crisis.

Gloomy outlook for world trade

In response to a request by the G20 in September addressed to Nicolas Sarkozy, the countries of the euro area have also promised to implement "necessary measures to increase the flexibility of the European Financial Stability Fund (EFSF)" to avoid contagion from the crisis in Greece. Yesterday, the possibility of a defect in Athens, though long ruled by EU leaders, was raised by Klaas Knot, Member of the Board of Governors of the European Central Bank (ECB)."This is one of the scenarios," he told the Dutch newspaper Het Financieele Dagblad.

The specter of a global recession has suddenly resurfaced after the ads pessimistic U.S. Federal Reserve (Fed), which held that the U.S. economic recovery was "slow" and threatened by "high risk". Wednesday she has decided to sell by the end of June 2012 for $ 400 billion of treasury bills and to purchase for the same amount with a longer maturity.But the fact that it favors measures to monetary easing, a depressed market on Thursday, who sees as a sign of impotence.

New signs of abating, the World Trade Organization (WTO) revised downwards its forecast for this Friday trade growth for 2011, expecting growth of world trade by 5.8% against 6.5% forecast so far, according to its website.

On the foreign exchange market, the euro climbed slightly against the U.S. dollar: it rose on Friday by 0.57% to 1.3533 dollar. Oil prices also went up.A barrel of "light sweet crude" for delivery in November, which had tumbled more than $ 5 the day before returning 1% by mid-morning at 81.31 dollars.

The side of values, after the close of the NYSE YorkHewlett-Packard announced the replacement of Leo Apotheker as CEO from Meg Whitman, confirming the many rumors that had circulated in recent days.

At Advanced Micro Devices (AMD) is Rick Bergman Devices, responsible for products, who announced his resignation. The CEO will temporarily Rory Read office.

Covidien raised its quarterly dividend 12.5% ​​to 0.225 dollar per share.And, for its part McDonald's has increased its 15% to $ 0.7 per share.

In order to treat its shareholders well, Raytheon has authorized a stock repurchase plan of $ 2 billion.

The American manufacturer of sporting Nike has exceeded market expectations by posting yesterday after the close of U.S. markets net income for the first quarter of fiscal year up 15% to $ 645 million, driven by its Sales in North America and in emerging countries. Revenues rose 11% to $ 6.1 billion.Orders scheduled for delivery between September 2011 and January 2012 were up 16% to $ 8.5 billion.

On the occasion of a major overhaul of its website, Facebooks'est services associated with music, news and video, including Spotify, Deezer and Dailymotion, and challenge from Apple in the content.

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Concerns about the health of the U.S. economy may once again to weigh on the markets in Paris. In the wake of Wall Street the day before and Asian stock markets this morning, the CAC 40 lost more than 4% to 2815 points, having already fallen by 1.6% at its previous meeting. Same trend in other European stock exchanges: the London FTSE-100 lost 2.5% to 5150.06 points, the FTSE Mib in Milan, 2.43% to 13,776 points, the Dax in Frankfurt at 3.24% 5257 points, and the Ibex 35 in Madrid, 2.80% to 7980 points.

Market sanction and the decision of the U.S. Federal Reserve (Fed) on Wednesday. In fact, the Central Bank of the United States announced new measures to support the U.S. economy.It will sell well here in late June 2012 for $ 400 billion of treasury bills and short-term buy for the same amount with a longer maturity in an attempt to lower interest rates in the long term (an "Operation Twist"). To support the mortgage market, it will also acquire real estate securities without increasing the size of its portfolio, according to the Committee.

IMF worried about global growth

However, markets did not appreciate his verdict on the economy, noting the "continuing weakness" of the labor market, with an unemployment rate of "high" of 9.1%, coupled with "significant risks "related" tensions in global financial markets. ""The opinion of the Fed on the economy is deteriorating a lot and it seems it can not do much with the Republicans (he) asked not to intervene," says Yutaka Miura, analyst at house brokerage Mizuho Securities, the Dow Jones Newswires.

Thus, the market had expected better, especially after worrying about the International Monetary Fund. The day before, the institution headed by Christine did not hesitate to raise the specter of a global recession and launched at policy makers in the world "a fervent call to action". At the same time the institution has significantly downgraded its growth forecasts for the global economy. This is expected to grow 4% in 2011 as in 2012, 0.5 points below its previous forecast of 4.5% last April.

Beijing sees its manufacturing activity deteriorated

To this must be added the emergence of concerns about the economic situation in China. Manufacturing activity in the country has deteriorated in September, reaching its lowest level in two months, according to preliminary PMI bank HSBC said on Thursday. PMI Purchasing Managers calculated by HSBC in September reached 49.4 against 49.9 in August, knowing that a figure below 50 means contraction. "We are seeing a moderation in growth as in the past two months.Fears of a hard landing for the Chinese economy are unjustified, "said in a note Qu Hongbin, the chief economist for China at the bank.

In France, the growth of private sector activity in France in September fell to its lowest level since the beginning of the recovery in 2009, the PMI "flash" in the manufacturing sector fell to 47.3 against 49.1 in August.

In Germany, the composite PMI, which includes industry and services, stood at 50.8, its lowest level since July 2009 against 51.3 in August.

In addition, investors are increasingly worried about the evolution of the crisis of public finances in Europe. Greece announced Wednesday its intention to launch new austerity measures to convince the Troika and obtain payment of a new tranche of 8 billion euros in October that will allow it to avoid bankruptcy.

On the foreign exchange market, the dollar was up against the euro. It was worth 1.3544 dollars per euro, against $ 1.37 the day before in Asia. Oil falls as himself down under the effect of a rise in the dollar and pessimistic forecasts from the U.S. Federal Reserve (Fed) for the world's largest economy.In early electronic trading, a barrel of "light sweet crude" for October delivery gave up $ 1.21 to 84.71 dollars per barrel of Brent North Sea crude for October delivery lost $ 1.26 to 109, $ 10.

In the U.S., the weekly claims for unemployment benefits will be unveiled at 14.30, and the composite indicator of economic activity for the month of August in 16 hours.

Earlier this afternoon, the markets also expect the statements of Robert Zoellick and Christine Lagarde, respectively president of the World Bank and IMF Executive Director, at the opening of the annual meetings in Washington

Values ​​to follow

• Banking

BNP Paribas (-2.09% to 23.94 euros), which saw its share price unscrew more than 50% in three months, may request assistance to private investors understood the Financial Times.Analysts said that the institution may seek to raise up to EUR 2 billion from investors from Qatar and Abu Dhabi. However, an assumption that sweeps by the Director General of the bank Baudoin Prot. Investors also will keep an eye on Societe Generale (-4.76% to 16.12 euros) and Credit Agricole (-1.14% to 4.61 euros).

• Saint-Gobain (-2.98% to 28.67 euros)

The group has conducted Wednesday through placement of a bond issue in two tranches for a total of 1.75 billion euros with an average maturity close to six years and an average coupon of almost 4% in the refinancing of debt specialist construction materials. The transaction was heavily oversubscribed as the order book has reached the aggregate for the two tranches over seven billion from nearly 400 investors.

• Danone (-1.98% to 43.02 euros)

The company launched its next bond issue of € 500 million due 2016.

• BioAlliance (-5.65% to 3.17 euros)

The group announced Wednesday the confirmation of the clinical trial schedule Livatag against the primary liver cancer, starting with the pivotal Phase III in 2012. The company also reported a residual income of 1.02 million euros in the first half.

After a lull last week, financial markets have plunged sharply Monday. Concerned about the lack of strong commitment of European finance ministers to support Greece, this weekend, and surprised by the tensions between Europe and the United States, investors are more likely to feel inevitable a lack of Athens. In Paris the CAC 40 index fell 3% while the German Dax gave up 2.83%. Again, it is the banks that were hardest attack.

The declaration on Sunday night on TF1, former IMF Managing Director Dominique Strauss-Kahn, for whom "we must accept to recognize that we must take his loss" of Greece was the effect of bomb."Hearing that DSK four months ago the IMF also urged new funding for Greece say the exact opposite now shows how events have turned," says Bruno Cavalier, chief economist at Oddo Securities. For the latter, there is a "real tired of the financial markets who want to wipe the slate clean once and for all to get back on firmer footing."

A feeling evident in a survey by Barclays Capital from major global investors. They are 24% think that the current crisis will lead to a breakup of the euro area. Over 60% of them believe that the European Financial Stability Fund (EFSF) will be insufficient to resolve the debt crisis.Although little scientific significance, such polls show the amount of work to be done now to reassure the magnitude of the crisis.

Bercy wants to reassure

France, Monday it is used by the voice of its Minister of Economy Baroin for which a default of Greece "is not a working hypothesis." At Bercy we stick to the same line of defense when all European countries have adopted the plan of July 21, that is to say by mid-October, the bleeding will be stopped.Reasoning that is opposed to that of economists who say a failure Greek is becoming increasingly economically rational, "If they want to avoid a failure of control, the Troika and the European Union in particular have an incentive to relieve pressure on the objectives short-term budget of Athens by insisting on the implementation of structural reforms to boost potential growth in Greece, "say economists at Morgan Stanley.

Rather than a sudden failure, we must consider a debt restructuring in the short term, implying a lower repayment installments provided for in the coming months to ease the Greek public finances.The major risk of such a scenario is a contagion to other peripheral countries "can be avoided if the ECB goes on the front lines and discourage speculation against the Italian debt by buying heavily," said Bruno Cavalier.

Creditors on deck

In this climate of growing skepticism, Greece somehow continues the implementation of the agreement of July 21, which passes through the participation of private creditors. Artisans of the device designed to reshape 192 billion euros of Greek claims STRIPS to complete the offer in October. "This operation can not be done in a snap. It is very complex technically and supports many constraints, "insists Fabrice Faure-Dauphin, a partner with law firm Allen & Overy, the Board of the operation.And insist: "If Greece were to miss a deadline, it does not fundamentally change the rules and would not offer more solutions to the problem."

The only good news, the first signals of the voluntary contribution of banks and other insurers are quite positive. While Greece requires a 90% interest in the exchange, some suggested a rate of 75% or 80%, almost unexpected. At these levels, the operation would have every opportunity to move forward. "A contribution of 85% instead of 90% needs to find an additional 8.5 billion euros," analysts calculate Barclays Capital.If Athens was a survey of creditors, the real success of the operation will not be known until after the formal offer proposal issued by the Greek government.

Athens without a loan repayment expected before December, this still leaves him time for both to continue its negotiations with the Troika and to carry out – or not – this massive debt restructuring for its crucial public finances. Meanwhile, the markets do not.

LE FIGARO – You met President Nicolas Sarkozy Friday. What is your analysis of the crisis in the euro area?

Pedro Passos Coelho – Our views are converging. We must accelerate the process of ratifying the plan in July that the EU speaks with one voice. It is essential to avoid systemic risk. How to convince the markets where European leaders expressed doubts on the future of Europe! It must be absolutely avoided, it is better to be silent than to sow doubt.

Would it be better to organize the failure of Greece?

I refuse to make predictions, I'd rather be patient and hope that Athens takes its objectives and carry out sustainable reforms. If Greece dark, the entire EU to be at risk.We need to help Greece and at the same time strengthen the EU, to establish a more integrated economic government which deals with taxation.

What are the consequences in Portugal of the deepening crisis in Greece?

Portugal is in a vulnerable position vis-à-vis Greece. If the crisis worsens, it will make our recovery process more difficult. My vision is very pragmatic: we must make every effort to carry out reforms and fiscal consolidation.

Economists doubt your ability to meet commitments on fiscal 2011?

The aid package was negotiated before the elections. Since then we have taken additional steps preventive and our calendar of spending cuts is more ambitious. We have the political support for it.We will keep the target of 5.9% of GDP deficit in 2011 and are targeting a primary surplus (excluding debt service) in 2012 for a balanced budget in 2015 and an external account deficit by half a point against 9% last year. In addition to the expenditure side and the privatization plan, we will conduct several structural reforms, justice, labor market, too rigid regulation. We will create a board of public finances, which will be independent to ensure full transparency in the management of the state.

Where are you from privatization?

We are to remove the golden shares held by the state in public enterprises, then we will begin the process of privatization in the energy sector by mid-November, by selling the companies for electricity, gas and oil, which Galp.We will then proceed to the privatization of the airline TAP, the airport manager Ana, mail, freight rail and radio station public television RTP. The whole process should be finalized in late 2012, the objective to recover at least 7 billion euros.

Have you received expressions of investors?

Yes, many, from the European economies but also emerging countries, Brazil, China and several Arab countries easy payday loans.The president of the National Bank of Economic Development in Brazil (BNDSE), the President of Brazil, Dilma Rousseff, Lula and his predecessor have already come to us with investor interest in Brazil.

This interest is there also for the government debt?

The purchase of public debt is subject to specific rules, but the important thing is that there were demonstrations of confidence in this government about the quality of Portuguese debt.

Will you create a wealth tax, such as Spain prepares to do?

We refused this solution, not to discourage large fortunes to come and settle in Portugal. However, we have created a special tax of solidarity that will help tackle the portion of 2.5% marginal tax on income that will affect higher wages and will last two years.We also created an additional tax of 3% on business profits in excess of 1.5 million euros, also for two years. The purpose of these taxes is not to create an additional revenue but to allow us to finance social assistance measures for families hit hardest by the crisis.

What are these measures?

They are primarily related to housing. Households that can no longer repay their debts to buy their apartments can contact their bank for the loan to be converted into low-rent, which will relieve the financially while allowing them to remain at home. Similarly, those earning up to one and a half times the minimum wage benefit from using public transport.In addition, if we were forced to raise to 23% VAT on gas and electricity, we have created a social tariff for the poorest.

How to boost growth given that domestic demand will remain very low?

It is true that the austerity has a recessive effect. The middle class will suffer significant sacrifices. That's the ticket out of the crisis, the price of a country that has spent too long. Domestic demand will have a negative contribution to the end of 2012. This will be offset by exports that are doing well. The adjustment must be done very quickly to ensure the financing of the economy. Privatization are important to increase the availability of cash to help recapitalize banks. This will improve competitiveness, greater openness and internationalization of our economy.The State abound 12 billion euros in guarantees for banks.

Competitiveness remains the weak point of Portugal?

Hence the urgent need to launch structural reforms, which should have been done in conjunction with the entry into the EU. The country in several sectors – textiles, information technology, biotechnology … the high performers.

With the individual

1. How does the new system?

Gains on sales of a second home, a rental property, a Land, or in case of supply of property to a SCI continue to be taxed at 19% (plus social security contributions, ranging from 12.3% to 13.5% as of October 1, 2011). However, we must now wait 30 years to be fully exempt (as against 15 years now). The capital gain is calculated after the application of a tax that increases with the length of detention. Beyond the fifth year, this amounts to 2% per year between 6 and 17, 4% between 18 and 24, and 8% between 25 and 30. Thus, 80% of the capital gain is taxable after 15 years, and 64% after 20 years. The tightening of the tax on transfers subject to a deed of 1 February 2012 (bill of sale signed by the notary).The measure applies retroactively to contributions to family SCI occurred since August 25, 2011.

2. The main residence is she exempt?

Yes. It might then be tempting to declare it as such a second home to enjoy the exemption of capital gains. Bad idea, because the IRS can easily discover the fraud by verifying if the property was declared as a principal residence for tax. In the eyes of tax authorities, your principal residence is the place where you live as usual for most of the year. If you have a housing function, it is, in principle, your principal residence. Unless your spouse and children reside permanently in another house, which is then regarded as your principal residence. It must also be your principal residence at the time of sale.The administration does not challenge the exemption if the property is not occupied between the sale and the actual transfer when the property is sold within a reasonable time (approximately one year).

3. How can I limit the impact of taxation?

If you own a rental property or second home for less than 30 years, you may find it advantageous to sell it before February 1. Given the period of 2 to 3 months, usually required between the signing of an agreement to sell and that a final deed of sale, you have until November to find a buyer. After February 1, all sales will be subject to the new regime. To reduce the scope, it will still be possible to make donations. These are not considered transfers, they do not tax capital gains.You will have to pay the gift tax if the value sent to each recipient exceeds the rebate applicable to the transaction (€ 159,325 in 2011 to parents and children).

Accuracy: exposure of Axa France Vie on government bonds of Spain and Italy is not 17.26% as indicated in our last column of Sept. 27. The AXA Group's cumulative exposure to bonds issued by Greece, Ireland, Portugal, Spain and Italy was 7% of the general assets of the group at June 30, 2011. The portfolio life insurance would be lower.

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