15/04/2013 World Business Report

Argentina's. Now time for the latest financial news with Sally

Show me the money. Today is the deadline for French government

ministers to publish details of government tries to recover from a

tax scandal. In a shock to the markets, China's economy slowed

down at the start of the year despite heavy government spending.

Hello and welcome. Also coming up, politicians in Europe try to fix

its key tool for tackling carbon change -- climate change. France

were Holland will find out today whether a political gamble has paid

off for him -- Francois Hollande. He ordered his ministers to publish

details of their personal wealth. It is an effort to restore his

Government's reputation after a scandal surrounding his former

budget minister, who admitted to hiding hundreds of thousands of

euros. It's been a tough first year as President for Francois Hollande.

A financial scandal involving his former budget minister has helped

his popularity in the opinion polls climate. In an attempt to restore

his government's credibility the French President has said his

government the task of restoring sex. Ministers have until today to

declare their wealth under a new law, which will also introduce a

special prosecutor to investigate allegations of corruption. A list

of banned professions for politicians will also be drawn up

to her -- prevent conflicts of of ten French voters believe

politicians are dishonest. This this

comes after?I ? comes afterdal su this man, Jerome Howzat. He was the

Government's tax enforcer who himself stashed hundreds of

thousands of euros in tax havens and then lied about it. President

Holland has now promised a relentless fight against greed. But

politicians concede that greater transparency is a gamble as it

could reveal yet more embarrassing details about the finances of

Eight years ago Europe thought it had come up with a way of reducing

the output of carbon dioxide, the gas blamed for global warming.

Under the emissions trading system you could buy and sell permits. But

experts say the system is broken and today European Parliament will

discuss a plan to fix it. You can see the problem through this chart,

permits were first issued in 2005 and rose at first as high as EUR31

per tonne. But in 2008 the crisis hit and helped to undermine the

market. In January this year the price hit a low of EUR3 per tonne.

Experts say it needs to be EUR30 per tonne to expect industry to cut

carbon emissions. I am joined by the Europe analyst at IRE HS energy.

Good morning, thanks for coming in. Tell us more about why the system

is not working fully. Is that basically what I was saying?

system was designed much earlier on at the beginning of the decade and

since then the recession has hit, the outlet in industry has declined,

demand from electricity -- from industry for electricity has

declined. As a result of the reduction in emissions there's less

the officials do? The European Commission have come up with a

separate proposal. They want to implement a policy where they will

remove credits from the system until the end of phase three, in

2020. Step two is for policy makers to come up with a permanent

solution whereby prices will be supported in the meantime. But is

not clear whether they could to support Forster won. There's no

plan for what will happen after that --. 1. This system is a system

that many around the world were looking at to see if this could be

a blueprint for how we reduce our carbon emissions elsewhere. How

will this play out eventually? Europe has been the blueprint for

other countries around the world, California, South Korea, even China

is looking at pilot projects. Europe is taking a Steering role in

that respect. But it doesn't look good if prices have collapsed here.

The problem is when the policy was originally designed Europe was

thinking th?I ? thinking thwe nee rest of the world will follow, but

that hasn't worked out. Many countries like Poland, the Czech

Republic, Greece and Cyprus, they are worried about hurting their own

industry when no others are doing the same. Thank you for joining us.

Let's move on because a new political party was launched in

Germany on Sunday, called alternative for Germany its leaders

are hoping to attract Germans who handling of the debt crisis. The

main goal is to dissolve the euro. chance of winning many votes, but

it could divert voters away from Angela Merkel's centre-right

Coalition i?I ? Coalition i September. Here's the party's

spokesman. TRANSLATION: Because of the euro, old anti-German

resentments are coming to life once again. The cost of the euro people

in southern Europe don't hesitate to express their disgust towards

Germany using old Nazi comparisons. this is not the Europe I want.

pace of economic growth in China slowed in the first three months,

that's come as a bit of a shock to forecasting the economy would

continue to accelerate after a slowdown in early 2012. If we look

at the numbers, GDP expanded at 7.7% in the first three months of

the year. Most countries would be happy with that, but for China it

has got to maintain a faster rate to maintain growing incomes and job

opportunities. That performance is a slowdown from the end of last

year when the growth was 7.9%. Economists were hoping the figure

today could be 8%. We can speak to Jing Ulrich, an economist at JP

response, should we be concerned about it? I think in the first

quarter GDP growth clearly trailed the forecast, many were expecting a

7.7%. -- 8%. There are some concerns going forward about the

economy. There are concerns about the liquidity situation. There was

a lot of debt issued in the first quarter. We also have the

rebalancing Issue. In the first quarter a lot of the growth still

came from investments rather than consumption. Looking at retail

figures the growth rate also came in below expectations. Talking to

Chinese companies across the experiencing over capacity so they

the coming few quarters we may continue to see a lot of the

the new government will be more aggressive in helping the Chinese

economy given today's news, and also a lot of the economic news we

had last week out of Trina? I don't think the government will be

extremely aggressive. -- China. I think they will be steady and

prudent in their monetary policy and fiscal policy. In the second

quarter we are expecting a the first quarter we have a

blockbuster quarter blockbuster quarter in terms of

transaction volumes, but new measures are being introduced. --

we had. That will be a drag on growth. Going forward the

government is keen to rebalance the economy, therefore there supporting

the consumption of lower income families, clamping down on

corruption, luxury spending, as illegitimate, in the meantime they

are trying to curb spending. It is a balancing act. We have got t act.

leave it there but they are leave it there but they are due for

your time. Let's look at how the markets are interpreting this --

thank you for your time. It comes after a poor economic news on