The bond rate to ten years in Italy continued its flight Friday morning, dangerously approaching its record high, while Rome was able to borrow 10 billion euros in the markets but at astronomical rates. Around 11:45, the yield stood at 7.247% Italian, against 7.081% at the close Thursday. He had reached Nov. 9 the highest since the creation of the euro area to 7.483%.

A borrowing rate of 7% is considered unsustainable in the long term by experts for a country to be able to honor its debt. "The award has not gone well, which puts further pressure on Rome and its new government," said Cyril Regnat, bond strategist at Natixis.

The European Central Bank (ECB) decided on Thursday to the surprise of lowering its key rate a quarter point to 1.25%, it had noted in the same proportion there is barely five months.

Since the launch of the euro on 1 January 1999, the ECB changed its rates 34 times (18 increases and 16 decreases).

"The treaties do not allow it." In explaining his refusal of the French proposal to transform the European Financial Stability Fund (EFSF) in the bank, allowed to refinance at the ECB, Berlin relied on legal argument. This is one reason that stands. But that does not really understand the inner motivations of this veto.

Avoid a slap in the Bundestag

To convince Germany, Angela Merkel is not only that we must win, but all members of the Bundestag.The German Constitutional Court has recently decided as follows: all decisions on the euro zone must obtain the approval of Parliament. And given the difficulties faced by the Chancellor with his coalition, the vote of an instrument that could be used to finance massive debt fragile seemed complicated. All the Green MPs a vote last week has mandated an agreement of 620 elected and not 42 members of the Committee Affairs budget as planned initially. "Presumably, if the French proposal was adopted, the vote could have given rise to heated debates and passionate," said Céline Antonin, an economist at the OFCE.

Preserve the independence of the ECB

The institution is far out of his terms for a year and a half.She began to buy back debt from fragile countries in May 2010 (Greece, Italy and Spain in particular) and a further 4.5 billion euros of bonds last week, more than double the week before. In total, the amount of transactions on the secondary market amounted to 170 billion euros. The ECB has also put hundreds of billions of euros of liquidity available to banks that have struggled to find on the market conditions as favorable. But Germany has reluctantly agreed to these interventions. So was it not possible for her to give the EFSF a kind of drawing right on the ECB via the proposed banking license. Berlin would prefer to see the guardian of the euro back to its original objectives of controlling inflation, according to Céline Antonin. "It was created on the model of the Bundesbank.And right now we try to avoid it too so its mandate, even if the buyback is expected to continue in the coming weeks, "said the economist. According to the German press, the capacity of EFSF not would not be sufficient to take the baton, they should buy back the debt jointly.

Avoid stopping just over the ECB balance sheet

If the French solution was preferred, the EFSF would have borrowed directly from the ECB. In exchange, the Fund would have a guarantee of debt securities of countries weakened. This would have meant to burden the balance sheet of the institution and, ultimately, to require states to put the hands in their pockets to recapitalize the institution. Germany wanted not to get there, especially since the ECB has already accumulated a lot of bad loans."Central banks have already full of rotten loans, credit claims more toxic than the debts of the states in trouble," said the economist and the OFCE, Jean-Paul Fitoussi.

The rating agency Standard and Poor's downgraded Wednesday by one notch credit rating of Slovenia, pointing degradation "of budgetary conditions" of the small Alpine country member of the euro area.

Standard and Poor's has increased from "AA" to "AA-" credit rating of the bonds Slovenian long-term, explaining that "budgetary conditions of Slovenia has deteriorated since the financial crisis of 2008" without that "the Government has presented a credible strategy of consolidation."

"AA-" is the fourth best score on the scale of Standard & Poor's and Ljubljana retains its status as issuer of high quality. In late September, it was Moody's had downgraded the sovereign rating of the country and threatened to lower it again, highlighting the fragility of banks and the risks to the government having to intervene again to support the sector.

Fitch's colleague had done the same in the process, lowering by one notch to "AA-" rating of the country, citing similar reasons. Fitch also regretted the rejection of the pension reform, "which is" a setback for long-term soundness of public finances. "

The decision by Standard and Poor's comes as pressure continues to deepen in the euro area, which is still unable to stem the debt crisis, while financial markets have placed their hopes in the top of the EU in Brussels on Sunday.

Tuesday, it is Spain which has been targeted by the rating agencies, with Moody's lowered the country's credit rating by two notches, and indicating that it might be lowered further in the medium term ."The debt burden has declined in Slovenia between 2002 and 2008 and has grown rapidly due to government policy to protect the economy and the banking system of the negative impact of the crisis," noted the agency in a statement.

Standard and Poor's has reported a "stable outlook" for the former member of Yugoslavia because "the expectation" of the agency to see "the government strengthen its finances and implement a program to consolidate budget ". The Slovenian government was overthrown in late September and early elections were called for December 4.

This election "is an opportunity for the new government to avoid another slip (public debt) and to implement structural reforms," ​​said the American agency.Former student model from the former communist members of the EU, Slovenia has been hit hard by the economic crisis and financial crisis of 2008/2009 and is struggling to recover.

Unemployment has nearly doubled in three years. The public debt rose from 22.5% to 43.3% of gross domestic product (GDP) between 2008 and 2010, but remained well below the limit imposed by the Stability Pact and European growth (60%).

The study involved monthly in Tokyo ten days after the Bank of Japan (BoJ) left its monetary policy unchanged, based on the assumption of a recovery at a moderate pace of the Japanese economy.

On this occasion, the central bank had, however, highlighted the growing risks weighing on the country's economic activity, the European debt crisis and the depressed global growth.

"The Japanese economy is still expanding while the decelerating pace of recovery against a backdrop of persistent difficulties related to the earthquake (11 March)," the government in its study.

The third world economy plunged into recession following the natural disaster occurred at the end of winter.

But production and exports have registered a marked increase in recent months, companies have made great efforts to replace the various production lines and delivery and to reopen factories.

The government has revised down its expectations in terms of exports, industrial production and household spending for the first time since April.

"Even if transport equipment support exports, electronic products and machinery equipment weaken, reflecting the slowdown in the global economy," said Shigeru Sugihara, head of macroeconomic analysis to the General Secretariat of government.

The report is, as always, writes that the government expects the Bank of Japan that support the economy "by appropriate monetary policy actions and decisive, and in close cooperation with the government."

According to sources familiar with the matter, the Japanese central bank is likely to revise downward its growth forecasts in a semi-annual report to be published by the end of the month.

Nearly three-quarters of Japanese companies expect a stagnation of the economy in the coming months, and 12% of them see it fall into recession because of growing concerns about global activity, shows a Reuters poll published on Friday .

Luxembourg Prime Minister said at the microphone of the German radio Deutschland Funk that the problems of banks and debt of the States were going to get worse and you need a custom solution for banks.

Asked if a forced recapitalization was intended to force the banks to contribute more, Jean-Claude Juncker said: "Banks should be aware that if the current voluntary creditors is not sufficient (…), then we must realize that we need a mandatory participation of creditors. "

Friday, its rival Moody's had downgraded 12 financial institutions in the UK, including Lloyds and RBS, also citing the likelihood of public support for any future crisis.

The rating agency, has downgraded its rating floors for UK banks of systemic importance, says in a statement placing the Barclays notes under review with negative implications, highlighting its exposure to volatile market activities .

"The dynamics of support are changing in the UK," Judge Fitch.

"Not only the banking system is large compared to the rest of the UK economy, but there is also increased political will to reduce the implicit support for banks."

Lloyds and RBS are held respectively 41% and 83% by the British state.

Around 1:50 p.m. GMT, action Lloyds lost 4.66% to the London Stock Exchange, while RBS yielded 2.91% and 5.08% Barclays. The Stoxx Europe 600 sector at the same time gave up 3.58%.

The European Commission has raised the possibility Friday of Eurobonds restricted to six countries in the euro area receiving the highest rating by the agencies, among the options being considered to better face the future with debt crises excessive. This idea is supported personally by one of the vice-presidents of the EU executive, the Luxembourg Viviane Reding.

"The United States are in a difficult situation but have no problem with the bond market because it is so great" at home, argued Commissioner Reding, responsible for justice issues, in an interview published Friday by the German daily Hannoversche Allgemeine Zeitung. "This is why I propose that all states in the euro area receiving the highest rating, AAA-rated states – France, Germany, Luxembourg, Austria, Netherlands and Finland – are pooling their bond markets "she said.

Such a mechanism for sharing national public debt of the most solid would be "a rock in the middle of the storm," she said.The spokesman of the Commission, Pia Ahrenkilde, said in Brussels that this idea was part of various options under consideration within the EU executive, which plans soon to submit a feasibility report on Eurobonds with the various possible formulas.

"There are a number of options are discussed, the remarks of the Vice-President (Viviane Reding) must be seen in this context," she told reporters. The creation of such a pot of government borrowing by countries in the monetary union is seen by its promoters as the only lasting solution to the debt crisis by ensuring that fragile states are protected by the strongest . However, Germany refuses because she sees an incentive to fiscal laxity. Its Ministry of Finance rejected this mechanism again Friday, although limited to countries rated triple "A"."Our position has not changed" and "this is true whatever the composition of the group (country) which would be backed Eurobonds," said a spokesman for the Ministry in Berlin.

Moody's lowered the rating one notch to the long-term debt and deposits of Societe generale de Aa2 to Aa3 with a negative outlook. Moody's believes that the impact of supervision on the Bank Financial Strength Rating (BFSR) will be limited to one notch.

For Credit Agricole, Moody's downgraded the BFSR a notch, from C + to C, and brought the note from the long-term debt and deposits one notch, to Aa2 from Aa1.

About BNP Paribas, the agency kept under review with negative implications the long-term rating Aa2 and deposits, and the note of B-BFSR.She believes it is unlikely that this under surveillance results in a downgrade of more than one notch.

"Total is preparing to set up a network of about 500 service stations at low prices in the Hexagon in 2012 to compete with supermarkets, several union sources indicate" the business daily reported.

This project must be presented to trade unions at a works council on Sept. 9, according to Les Echos, which said it will not apply to motorway service stations.