Monday, September 5

French economic growth Sputters stop

PARIS - France economic engine ground to a halt in the spring, as French consumers cut their spending and exports dried up, is to strengthen the concerns that the global economy faced increasing recessionary threats.

The worse than expected French personalities come, like policy makers encrypt, investor nerves to settle down, that the country of's next major economy, could lose the coveted AAA rating.

A movement Friday from stock market regulators in France and elsewhere in Europe, a form of speculation to ban, some are blamed for turbulent trading in recent days saw some effects to have that economists stressed that a very fragile recovery.

French bank shares were flat or slightly lower in early trading in Paris. In the last few days have been like Societe Generale and BNP Paribas extremely volatile amid rumors about their financial health.

The EU markets supervisor, the ESMA the short selling ban announced late Thursday night to increase monitoring of the stormy markets earlier in the day. A trader wants to make a profit in a short sale by you bet on the decline in the price of a stock. The practice is been blamed for contributing to market volatility.

Regulators in France, Italy, Spain and Belgium are the prohibitions, whose Angaben vary from country to country every implementation.

The French market regulator, the AMF said that net-short-selling bans BNP Paribas and Credit Agricole and leading insurer for 15 days on 11 shares, including the banks Societe Generale,.

Authority of Belgium announced a ban on short selling in financial stocks such as leading banks and insurance companies from Friday. Belgium had already banned short selling, which is essentially a bet on a decline in the price of a share without borrowing of share since August 2008.

Several countries banned short selling during the financial crisis 2008 to try to tame the volatility. But some experts the prohibitions, actually a feeling of uncertainty contributed to.

Message, that French economic growth sputtered in the second quarter to rest concerns that the European economy by the debt crisis is dependent on that struck some countries and has fueled the turmoil in the markets is likely.

The French economy posted zero growth in the second quarter, national statistical office said INSEE. Government had forecast growth of around 0.2 percent in the period economists.

Growth in the first quarter was nearly 1 percent, but a sudden reversal of consumer spending and stagnation of the country exporters the seizure has caused to the euro-zone's second-largest economy.

Finance Minister France Friday morning took the airwaves again in an attempt to put a positive spin numbers on the weak second quarter.

"It's no surprise that is worse than the first in the second quarter, which we expected," Francois Baroin said in an interview on French radio station RTL. He said, the Government with the glue deficit reduction targets in spite of lower is.

This week said the French Central Bank that the economy will grow only 0.2 percent in the third quarter. The Bank monthly industry survey showed corporate books and factory utilization rates fall for the second consecutive month in July.

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