:00:05. > :00:15.Argentina's. Now time for the latest financial news with Sally
:00:15. > :00:23.
:00:23. > :00:28.Show me the money. Today is the deadline for French government
:00:28. > :00:32.ministers to publish details of government tries to recover from a
:00:32. > :00:42.tax scandal. In a shock to the markets, China's economy slowed
:00:42. > :00:46.
:00:46. > :00:54.down at the start of the year despite heavy government spending.
:00:54. > :01:00.Hello and welcome. Also coming up, politicians in Europe try to fix
:01:00. > :01:04.its key tool for tackling carbon change -- climate change. France
:01:04. > :01:09.were Holland will find out today whether a political gamble has paid
:01:09. > :01:13.off for him -- Francois Hollande. He ordered his ministers to publish
:01:13. > :01:17.details of their personal wealth. It is an effort to restore his
:01:17. > :01:21.Government's reputation after a scandal surrounding his former
:01:21. > :01:29.budget minister, who admitted to hiding hundreds of thousands of
:01:29. > :01:33.euros. It's been a tough first year as President for Francois Hollande.
:01:33. > :01:38.A financial scandal involving his former budget minister has helped
:01:38. > :01:42.his popularity in the opinion polls climate. In an attempt to restore
:01:42. > :01:49.his government's credibility the French President has said his
:01:49. > :01:53.government the task of restoring sex. Ministers have until today to
:01:53. > :01:58.declare their wealth under a new law, which will also introduce a
:01:58. > :02:01.special prosecutor to investigate allegations of corruption. A list
:02:01. > :02:10.of banned professions for politicians will also be drawn up
:02:11. > :02:17.to her -- prevent conflicts of of ten French voters believe
:02:17. > :02:21.politicians are dishonest. This this
:02:21. > :02:24.comes after?I ? comes afterdal su this man, Jerome Howzat. He was the
:02:24. > :02:30.Government's tax enforcer who himself stashed hundreds of
:02:30. > :02:35.thousands of euros in tax havens and then lied about it. President
:02:35. > :02:38.Holland has now promised a relentless fight against greed. But
:02:38. > :02:42.politicians concede that greater transparency is a gamble as it
:02:42. > :02:52.could reveal yet more embarrassing details about the finances of
:02:52. > :02:52.
:02:52. > :02:57.Eight years ago Europe thought it had come up with a way of reducing
:02:57. > :03:02.the output of carbon dioxide, the gas blamed for global warming.
:03:02. > :03:06.Under the emissions trading system you could buy and sell permits. But
:03:06. > :03:15.experts say the system is broken and today European Parliament will
:03:15. > :03:20.discuss a plan to fix it. You can see the problem through this chart,
:03:20. > :03:25.permits were first issued in 2005 and rose at first as high as EUR31
:03:25. > :03:31.per tonne. But in 2008 the crisis hit and helped to undermine the
:03:31. > :03:35.market. In January this year the price hit a low of EUR3 per tonne.
:03:35. > :03:41.Experts say it needs to be EUR30 per tonne to expect industry to cut
:03:41. > :03:46.carbon emissions. I am joined by the Europe analyst at IRE HS energy.
:03:46. > :03:51.Good morning, thanks for coming in. Tell us more about why the system
:03:51. > :03:56.is not working fully. Is that basically what I was saying?
:03:56. > :04:01.system was designed much earlier on at the beginning of the decade and
:04:01. > :04:05.since then the recession has hit, the outlet in industry has declined,
:04:05. > :04:15.demand from electricity -- from industry for electricity has
:04:15. > :04:17.
:04:17. > :04:27.declined. As a result of the reduction in emissions there's less
:04:27. > :04:31.the officials do? The European Commission have come up with a
:04:32. > :04:36.separate proposal. They want to implement a policy where they will
:04:36. > :04:41.remove credits from the system until the end of phase three, in
:04:41. > :04:47.2020. Step two is for policy makers to come up with a permanent
:04:47. > :04:51.solution whereby prices will be supported in the meantime. But is
:04:51. > :04:58.not clear whether they could to support Forster won. There's no
:04:58. > :05:02.plan for what will happen after that --. 1. This system is a system
:05:02. > :05:10.that many around the world were looking at to see if this could be
:05:11. > :05:14.a blueprint for how we reduce our carbon emissions elsewhere. How
:05:14. > :05:21.will this play out eventually? Europe has been the blueprint for
:05:21. > :05:25.other countries around the world, California, South Korea, even China
:05:25. > :05:30.is looking at pilot projects. Europe is taking a Steering role in
:05:30. > :05:39.that respect. But it doesn't look good if prices have collapsed here.
:05:39. > :05:43.The problem is when the policy was originally designed Europe was
:05:43. > :05:46.thinking th?I ? thinking thwe nee rest of the world will follow, but
:05:46. > :05:52.that hasn't worked out. Many countries like Poland, the Czech
:05:52. > :06:00.Republic, Greece and Cyprus, they are worried about hurting their own
:06:00. > :06:03.industry when no others are doing the same. Thank you for joining us.
:06:03. > :06:07.Let's move on because a new political party was launched in
:06:08. > :06:14.Germany on Sunday, called alternative for Germany its leaders
:06:14. > :06:21.are hoping to attract Germans who handling of the debt crisis. The
:06:21. > :06:25.main goal is to dissolve the euro. chance of winning many votes, but
:06:25. > :06:31.it could divert voters away from Angela Merkel's centre-right
:06:31. > :06:35.Coalition i?I ? Coalition i September. Here's the party's
:06:35. > :06:42.spokesman. TRANSLATION: Because of the euro, old anti-German
:06:42. > :06:46.resentments are coming to life once again. The cost of the euro people
:06:46. > :06:56.in southern Europe don't hesitate to express their disgust towards
:06:56. > :06:59.Germany using old Nazi comparisons. this is not the Europe I want.
:06:59. > :07:05.pace of economic growth in China slowed in the first three months,
:07:05. > :07:11.that's come as a bit of a shock to forecasting the economy would
:07:11. > :07:17.continue to accelerate after a slowdown in early 2012. If we look
:07:17. > :07:20.at the numbers, GDP expanded at 7.7% in the first three months of
:07:20. > :07:25.the year. Most countries would be happy with that, but for China it
:07:25. > :07:29.has got to maintain a faster rate to maintain growing incomes and job
:07:29. > :07:34.opportunities. That performance is a slowdown from the end of last
:07:34. > :07:44.year when the growth was 7.9%. Economists were hoping the figure
:07:44. > :07:44.
:07:44. > :07:54.today could be 8%. We can speak to Jing Ulrich, an economist at JP
:07:54. > :07:59.
:07:59. > :08:04.response, should we be concerned about it? I think in the first
:08:04. > :08:12.quarter GDP growth clearly trailed the forecast, many were expecting a
:08:12. > :08:16.7.7%. -- 8%. There are some concerns going forward about the
:08:17. > :08:24.economy. There are concerns about the liquidity situation. There was
:08:24. > :08:28.a lot of debt issued in the first quarter. We also have the
:08:28. > :08:32.rebalancing Issue. In the first quarter a lot of the growth still
:08:32. > :08:37.came from investments rather than consumption. Looking at retail
:08:37. > :08:43.figures the growth rate also came in below expectations. Talking to
:08:43. > :08:51.Chinese companies across the experiencing over capacity so they
:08:51. > :08:56.the coming few quarters we may continue to see a lot of the
:08:56. > :09:00.the new government will be more aggressive in helping the Chinese
:09:00. > :09:07.economy given today's news, and also a lot of the economic news we
:09:07. > :09:12.had last week out of Trina? I don't think the government will be
:09:12. > :09:17.extremely aggressive. -- China. I think they will be steady and
:09:17. > :09:23.prudent in their monetary policy and fiscal policy. In the second
:09:23. > :09:24.quarter we are expecting a the first quarter we have a
:09:24. > :09:30.blockbuster quarter blockbuster quarter in terms of
:09:30. > :09:35.transaction volumes, but new measures are being introduced. --
:09:35. > :09:39.we had. That will be a drag on growth. Going forward the
:09:39. > :09:43.government is keen to rebalance the economy, therefore there supporting
:09:43. > :09:50.the consumption of lower income families, clamping down on
:09:50. > :09:56.corruption, luxury spending, as illegitimate, in the meantime they
:09:56. > :09:58.are trying to curb spending. It is a balancing act. We have got t act.
:09:58. > :10:04.leave it there but they are leave it there but they are due for
:10:04. > :10:12.your time. Let's look at how the markets are interpreting this --
:10:12. > :10:17.thank you for your time. It comes after a poor economic news on