German and French economies rebound

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Workers assemble engines at the Mercedes car and truck engine factory in Berlin.German and French economic growth rebounds in third quarter of this yearIncreases in GDP for eurozone's two largest economies at top end of expectationsGerman GDP increased by 0.5 in 3rd quarter; France up by 0.4% in same period

(Financial Times) -- German and French economic growth rebounded in the third quarter of this year, putting the countries in slightly better shape to withstand a looming eurozone recession.

Increases in gross domestic product for the eurozone's two largest economies were at the top end of expectations, according to data released on Tuesday, but did not dispel widespread fears of a significant slowdown in the final months of 2011, fuelled by the region's escalating debt crisis.

German GDP increased by 0.5 per cent in the three months to September compared with the previous quarter, according to the country's statistics office. At the same time, German data for the second quarter were revised upwards to show a 0.3 per cent increase -- compared with the 0.1 per cent originally reported.

Simultaneously, France reported a 0.4 per cent increase in the third quarter -- although its second-quarter data were revised downwards to show a 0.1 per cent contraction, rather than the zero growth originally calculated.

The continuing expansion of the German and French economies during the third quarter helped offset weakness in the eurozone "periphery" -- especially in crisis-hit countries such as Greece and Portugal, but also Italy, where recent economic indicators have pointed to a sudden decline in economic activity. Eurozone growth data are released later on Tuesday.

But sharp falls in business and consumer confidence as well as the first effects of widespread fiscal austerity measures are expected to result in eurozone economic activity contracting in the fourth quarter. Earlier this month, Mario Draghi, the new European Central Bank president, predicted a "mild recession" by the year-end.

German growth in the third quarter was driven mainly by consumer spending, with investment spending also helping, according to the statistics office. That suggested economic growth in Europe's largest economy had developed its own momentum, rather than relying on exports, with steady falls in German unemployment over the past two years feeding through into a more balanced expansion. But even Germany is not expected to escape a significant slowdown.

"Today's numbers are as good as it gets for the German economy, at least for a short while," said Carsten Brzeski, European economist at ING in Brussels.

© The Financial Times Limited 2011

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Baby girl for French President Sarkozy, wife Bruni

French President Nicolas Sarkozy and first lady Carla Bruni welcomed a daughter into the world on Wednesday.Sarkozy and Bruni welcome the arrival of a daughterA friend says the mother is doing wellIt is the first child for the couple

(CNN) -- Carla Bruni, the wife of French President Nicolas Sarkozy, has given birth to a girl, a very close family friend told CNN on Wednesday.

The mother is doing well, the friend said.

Sarkozy, 56, was seen earlier leaving the French capital's La Muette clinic, where Bruni gave birth, according to French media.

It is the first child for the couple, who wed in February 2008. Bruni, 43, announced in early September that she was pregnant and vowed to keep the child out of the spotlight.

Sarkozy divorced his wife of more than 11 years before marrying Bruni. He has three children from that marriage.

Bruni, a former supermodel and singer, previously dated singers Eric Clapton and Mick Jagger.

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French get back famous painting stolen during World War I

French Ambassador François Delattre, left, shakes hands with ICE Director John Morton during the ceremony Thursday.The work by Jules Breton was stolen during World War IIn 2010 French officials told Interpol the painting might be in New YorkICE seized the painting from a gallery after an investigationThe painting was handed over to the French ambassador in a repatriation ceremony

Washington (CNN) -- A famous French painting stolen during World War I by the German Army was returned to the government of France by U.S. officials on Thursday. The 1876 Jules Breton work is called "A Fisherman's Daughter/Mender of Nets" or to the people of France it's "Une Fille de Pecheur/Raccommodeuses de Filets."

In 1918 the German army confiscated that painting and others from the Musee de Douai in the city of Douai and transported them to Belgium. The following year the Belgium government went to return all the French works of art, but the "Fisherman's Daughter/Mender of Nets" was missing.

Spring forward to 2010 and French officials alerted Interpol that the painting might have been imported by a gallery in New York City. U.S. Immigration and Customs Enforcement investigators worked the case, concluded the painting in New York was the same one stolen from France more than 90 years ago and seized it.

The painting, which is worth an estimated $150,000 dollars, was handed over to the French ambassador to the United States during a repatriation ceremony in Washington. ICE did not provide details about how the painting reached the gallery in New York or where it might have been in the decades since it was stolen.

"Returning a painting to a museum is a significant contribution to the celebration of our cultural heritage and a gift to all future visitors who will enjoy the work of art, but it is also yet another symbol of Franco-American cooperation," said French Ambassador François Delattre in a written statement. "We are celebrating today a gesture of friendship by the United States toward the French Republic."

The U.S. Attorney's Office for the Southern District of New York worked on the case. "One of the very few ways that we are able to redress the awful legacy of war is to return stolen art to its rightful owners so it can be shared and enjoyed, "said U.S. Attorney Preet Bharara. "In this case, it took nearly a century, but it is nonetheless extremely gratifying.

ICE does numerous investigations into stolen art or cultural artifacts and has helped repatriate many other items to various nations. "We remain committed to combating cultural heritage crimes, which are one of the oldest forms of organized cross-border illicit activity," said ICE Director John Morton.

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French get back famous painting stolen during World War I

A famous French painting stolen during World War I by the German Army was returned to the government of France by U.S. officials on Thursday. The 1876 Jules Breton work is called "A Fisherman's Daughter/Mender of Nets."

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