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The European Commission estimates that the pooling of borrowing countries in the euro area could quickly alleviate the current crisis. The counterpart would be a strengthening of fiscal discipline. The President of the European Commission Jose Manuel Barroso (here at a press conference in Brussels April 13, 2011)

The European Commission Wednesday will propose the creation of eurobonds, a system seen by its promoters as a means of achieving sustainable solutions to the debt crisis, but that divides Europeans and has as its corollary a strengthening of fiscal discipline. In a "Green Paper" seen by AFP, the European Commission considers that this pooling of borrowing countries in the euro area could "rapidly reduce" the current crisis.

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The Tokyo Stock Exchange started the week up Monday, the speakers are partly reassured about the evolution of the European debt crisis even if they prefer not to push the market too high before an auction to be held in Italy later of the day.

The Nikkei gained 89.23 points (1.05%) to 8,603.70 and the Topix has taken 6.72 points (0.92%) to 735.85.

Italy must award five-year bonds, a first test for the new Chairman Mario Monti.

The market has not reacted much to the publication before the opening of Japan's GDP for the quarter July to September.

Germany will maintain its influence within EADS, the liberal FDP members of the ruling coalition have raised their opposition to a takeover by the state shares of the aerospace group that Daimler is seeking to sell.

The automaker, which holds a 15% economic interest in EADS and 22.5% of the voting rights, is seeking a buyer for part of its participation.

In return for the lifting of the objections of the FDP, the German state will sell stakes in other companies such as Deutsche Post and Deutsche Telekom, it was said.

The reversal of the Liberal Democrats FDP, the CDU partner of Angela Merkel, will allow the state development bank KfW to buy half of the 15% held by Daimler in the European aerospace consortium.

A government source said that the automaker would retain the remaining 7.5% beyond 2013.

She said the issue of price has not yet been addressed and has no agreement is expected before July.

No one at Daimler, EADS or KfW has agreed to comment on the report.

EADS is governed by a shareholders led by the French Lagardère and Daimler.

Ryanair said Monday it has increased by 10% its profit forecast for 2011-2012, the high fuel costs to be offset by higher revenue per passenger per kilometer.

The first airline to European low-cost, which reported a quarterly taxable income above expectations, said not having seen virtually no impact of the decline in consumer confidence.

The Irish company added, however, she anticipated a decline in traffic in the coming months due to his decision to nail to the ground some aircraft in response to the high cost of kerosene.

Of the three months to September, the taxable income stood at 404 million euros against an average forecast of six analysts polled by Reuters de393 million.

Lufthansa and International Airline Group (IAG) both announced last week the results strongly affected by rising fuel costs.

French deputies adopted Tuesday by 308 votes against 203, majority against opposition, the first part, the recipes, a draft budget law for 2012, which already seems overwhelmed by the failure of growth.

The Senate will consider this text as from 17 November.

At the end of this reading by MPs, the projected deficit for 2012 amounted to 80.321 billion euros, a reduction of 1.451 billion euros compared to the initial deficit was expected to 81.772 billion euros.

But the draft budget for 2012 is built on a growth assumption of 1.75% which, because of the crisis, is considered "optimistic" by many and the government has already announced that new measures would be taken if necessary.

Prime Minister Francois Fillon praised Tuesday the UMP group for his "outstanding work", reported a number of members present at the weekly meeting of the majority group.

"You have been consistent. What you have done is remarkable," he said, referring to the group's decision not to practice in bidding and its amendments have made nearly $ 1.5 billion 'savings.

"This is a true and budget.It is solid, serious and responsible, "said Jerome Chartier UMP.

A BUDGET FOR EVER CADUC PS

But the spokesman of the Socialist Group in this debate, Pierre-Alain Mute, called the budget "to the list of measures which emerges Prévert no other logical that blind and massive austerity."

"It's unfair and a budget already spent," he said.

For Pierre Moscovici, a relative of the Socialist candidate for president in 2012 François Hollande, "It's surreal."

"We vote on figures known to be counterfeit," he told reporters.

Among its main measures, the Finance Act 2012 provides for taxation of high incomes, a tax on drinks containing added sugars and artificial sweeteners, a reduction of real estate gains in some cases for the sale of a residence secondary school.

After this vote, Members should begin to review the draft law on financing of Social Security (Social Security Financing Bill) 2012.Only 2 November they will begin to discuss the second part of the budget, the expenditure.

The Assembly will vote Nov. 16 by a solemn vote of the entire draft budget law for 2012 that the Senate will consider from the day in public.

The final vote on the draft budget for 2012, the last of the five-year term and is expected by mid-December.

The stock market rally seen since early October, which is largely based on the feeling that Europe has finally committed to the implementation of sustainable solutions to the debt crisis, seems to be over in fear that the ads promised by early November are not up to expectations.

The German Finance Minister Wolfgang Schäuble, who warned Monday that the European Summit of October 23 would not produce a definitive solution to the debt crisis in the eurozone, has dampened the enthusiasm in the marketplace.

Around 16:30, the CAC 40 and Eurostoxx 50, which is still evolving in the green in the morning after a G20 finance considered rather promising Saturday, both lost about 1.6% as a result of these statements.

Noting that the increase of over 12% in 10 days is largely based on hopes and was made in limited volumes, leaving the door open to great disappointment when announcements, investors do not exclude relapse of the markets in the coming weeks.

"The meeting of G20 finance ministers this weekend confirmed the hopes of the market for the rapid implementation of a plan to end the crisis", says Franklin Pichard, director of Barclays Bourse France.

"Politicians have no room for error in communication.The slightest disappointment lead to a violent reaction to the decline in equity markets. "

Buyers expect the ads to be made after the G20 summit on 3 and 4 November in Cannes: strengthening the capacity of the European Financial Stability Fund (EFSF), bank recapitalization European responses to the financial situation worse than expected from Greece and reform of European governance.

"Although we have a constructive long-term vision of the evolution of sovereign risk in the euro zone, the political difficulties to be expected before reaching a final solution we ensure that the road is bumpy markets," said BNP, however, Paribas Investment Partners.

The management group, which benefited from the rebound to move to underweight on equities, does not "further price drops, as we had this summer seem possible."

ING Investment Management also remains on the defensive, a position with "underweight" on the stock markets in Europe, as well as financial and cyclical stocks.

His actions strategist Patrick Moonen is especially before the uncertainties not only about the size of the bank recapitalization program, but also on the quarterly results, which could also disappointed with the economic slowdown and exchange rate volatility.

"The month of October started a rally based on hopes (…) and positions, but few facts," he said.

Strategists market rate of Societe Generale also believe that "the latest developments are a supporting factor for the risk appetite, although the markets think differently this time."

CONSOLIDATION AT THE OPTION OF ADVERTISING

Investors are more reserved vis-à-vis the commitment shown by Saturday the finance ministers of the G20 to support and rebalance the global economy – with a fiscal consolidation in advanced countries and support for domestic consumption in emerging markets.

"If these promises are interesting, they are very similar to previous ones.There are many positive intentions but little detail on implementation, with the exception of Europeans advancing at a rapid pace, "said François Duhen, strategist at CM-CIC Securities.

From the graphical point of view, analysts estimate that the CAC 40 should stumble on key areas of resistance around 3280-3300 points, then from 3450 to 3500 points, and the Eurostoxx 50 on the area of ​​2450-2460 points.

"The movements (up to last week) could be extended a little longer, but we expect corrections, or at least consolidation in the coming days," said Valerie Gastaldy, Analyst Day By Day.

Alexandre Le Drogoff, Aurel BGC, agrees that current levels of the market should be the starting point for a correction, to a resistance threshold of 3.060 points for the CAC 40 and 2230 points for the Eurostoxx 50 … unless it announces a new downtrend.

"I see the French market up against the 3280-3300 and consolidate the liking of ads before leaving, especially since we do not see a buying spree at the moment. It's going a little too fast. This is probably not sustainable, "said Frederic Rozier, manager at Meeschaert Private.

However, despite the dismantling forced Dexia, some speakers stressed that the "worst is over", confident in the ability of policies to avoid a systemic crisis as in 2008, after the bankruptcy of Lehman Brothers.

The New York Stock Exchange finished up 1.68% Thursday, the Dow Jones Industrial 30 183.38 points to 11,123.33 winner. The S & P-500, wider, took 20.94 points, or 1.83%, to 1164.97.

The Nasdaq Composite Index was up 46.31 points for his side (1.83%) to 2506.82.

Decline in new orders, production and employment: the French industrial activity is in contraction. Activity in manufacturing contracted in France in September.

Activity in the manufacturing industry in France has again contracted in September, with a decline in new orders, production and employment, according to the final estimate of the PMI released Monday by the company Markit. The manufacturing PMI fell back 49.1 points and 48.2 points in August, its lowest level since July 2009. The decline is less marked announced at a first estimate published on Sept. 22. An index below 50 points signals a contraction in activity.

"The debt crisis of the Eurozone and the deteriorating economic conditions have led to a sharp decline in demand," notes economist Jack Kennedy Markit, said in a statement."The manufacturing sector may well have slowed the quarterly GDP growth, the survey data suggesting a decline in industrial production for the entire third quarter."

The decline in the PMI reflected a sharp decline in the volume of new orders, domestic and export markets, sales declined for the third consecutive month and decreased production. "As a result of the current weakness of the sector, the French manufacturers are downsizing for the first time in a year," said Jack Kennedy. The PMI, compiled from a survey of companies operating in France, is a leading indicator of economic conditions, considered reliable by analysts.

The bank denies a report in the daily Libération, which amounts to 25 billion euros the amount of toxic loans granted to local authorities. Dexia release accused of selling to local governments 25 billion euros of toxic loans.

Dexia bank said Wednesday as "unacceptable" an article published by Libération on toxic loans sold by such bank to local communities. The newspaper, citing "a confidential document to Dexia," the amount of loans taken out toxic amounts to 25 billion euros. "Erroneous and truncated data have been used for this article that calls into question the competence and integrity of Dexia employees and elected officials and administrative officers of local authorities, which is unacceptable," said the bank in a statement."Not only the challenges but Dexia reviews all legal consequences to give to defend the interests of its employees and its customers," she adds.

According to the bank, "the article likens improperly structured credits to 'toxic loans' and reported that fanciful figures do not reflect reality." According to Liberation, 5500 local governments and public institutions have signed French toxic loans between 1995 and 2009. The bank contends in particular that "it is totally unfounded and irresponsible to suggest that 'thousands of French municipalities are bankrupt because of the structured credit underwritten by Dexia".Dexia also disputes the number of the additional cost of these loans valued at 3.9 billion euros, "unfounded" and denied as having "captured the towns."

"At the initiative of local communities"

Loans "were made in response to tenders issued on the initiative of local authorities who asked explicitly, often accompanied by external consulting firms," ​​said she. The toxic loans are considered more speculative and riskier to the family of structured products. These have varying degrees of risk on a scale of 1 to 5. The toxic loans represent the highest risk, rated 5.They are based on variable interest rates, indexed values ​​as highly volatile exchange rate fluctuations, differences in interest rates or a barrel of oil, which can decrease or increase in significant proportions and impossible to master.

For its part, the Royal Commission on toxic debt, created in June, entered the heart of the matter by addressing the situation of Saint-Etienne, a city whose mayor, Maurice Vincent, was one of the first to denounce the dangers of such financial products. "The Audit Office estimates that one hundred the number of communities affected by toxic chemicals," recalled Maurice Vincent before the commission. "For my part I consider that there should be 200 if we take into account hospitals and housing associations."Maurice Vincent also reminded the court ranged between 7 and 12 billion euros the amount of toxic loans, a total stock of 160 billion euros.

The lack of unity of Europeans at the top in Poland worried the markets. The IMF refers to the default of Athens.

Divisions within the euro area and the lack of concrete progress on the issue have plunged Greece into turmoil Monday and world stock markets, maddened by the scenario of a default of Athens. A "delay" of continuing the privatization program in Greece can lead the country to "default" on its debt, warned Monday the Permanent Representative International Monetary Fund (IMF) in Greece, Bob Traa. And the meeting of European finance ministers on Friday and Saturday in Poland ended in failure.Divided, they postponed any decision on October the payment of a further tranche of 8 billion euros to Greece, which desperately needs the money to avoid bankruptcy.

"Once again, hopes for new policy initiatives to resolve the debt crisis in the eurozone were violently showered," lamented Jane Foley, analyst at Rabobank. Now, "the market is betting on a 98% default of Greece," said Phil Flynn, of PFG Best Research. The reaction of the stock exchanges Monday was unequivocal. At the close, Paris fell 3.00%, 3.17% of Milan, Frankfurt 2.83%, 2.03% in London.

European indices, once again, been sealed by the banks that would be the first victims of failing Greek. The Deutsche Bank dropped 4.54% and 4.11% Italian Intesa Sanpaolo. In France, Societe Generale won 6.70% and 5.48% of BNP Paribas.In New York, the Dow Jones lost 1.57% to 1600 GMT. The announcement by U.S. President Barack Obama plan to further reduce the deficit of 3.000 billion, financed half by an increase in taxes for the rich, did not produce any relief.

Teleconference postponed

Very worried, the markets awaited the outcome of a conference between the Greek government and the Troika representing the country's creditors, namely the European Commisson, the European Central Bank (ECB) and the IMF. First scheduled for mid-day, the conference was delayed about 16h, after the close of European stock. "The quarterly audit of the troika is decisive. If the IMF decides to exit the process, the risk of default of the country will be very large," said Cyril Regnat, an analyst at Natixis.

A default of Greece "is not a working hypothesis" in the euro area, however, assured the French minister of Finance Baroin. Greece must at all costs to demonstrate that it meets its budget commitments, the only way to obtain payment of the next round of international loans. "This is not a working hypothesis, it is not our strategy," he said on the sidelines of a meeting with his counterparts from the African franc zone in Paris. "Our strategy (…) is to operationalize the agreement of July 21" adopted by the euro area to come again in aid to Greece and strengthen the European bailout fund, he added. The Permanent Representative of IMF in Athens, Mr. Traa said Monday morning that additional budgetary savings will be "necessary".

"Privatization has been delayed from the program because politicians can not agree on how to proceed," he said in reference to the privatization program of 50 billion euros by 2015 that Greece is committed. "If you wait (…) the country will go to default," he warned.

"Conditions uncontrollable and painful"

Taking the worst estimates of Athens, he returned the country's return to growth in 2013, anticipating a recession of -5.5% in 2011, and -2.5% in 2012. Recognizing the gravity of the situation, the Greek Finance Minister Evangelos Venizelos said that the week opened "is a very difficult week for the country, for the euro area and for me."Athens announced on Sunday that it would conduct new cost-cutting measures in 2012 to reduce the public sector.

"We must now take historical decisions, otherwise we will have to take soon in uncontrollable and painful conditions," he said, referring to the threat of insolvency of the country. The minister made it a priority "respect for the objective for 2011," involving corrective action of 1.8 billion euros, to enable the country to continue to meet its commitments, including "a primary budget surplus in 2012" . Mr. Venizelos nevertheless felt that Athens should not be used as "scapegoats" facing the "lack of competence in managing the debt crisis" in the eurozone.

As a result of concerns around Greece, the euro Monday accentuated its decline against the dollar: towards 1600 GMT, the euro bought 1.3633 dollars against 1.3797 dollars on Friday night. The price of an ounce of gold fell 3%, investors withdrawing from the yellow metal to cover losses in other markets.