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The Paris Bourse wins more than 2%

Investors finally found a smile in Paris. The CAC 40 has indeed rebounded to 2.08%, passing the bar of 3600 points. He finished at exactly pointspoints 3617.32. The market which opened in Paris rose sharply accelerated the pace in the afternoon, after payment of first European loan of 14.5 billion euros in Greece and the renewed commitment of Member States of the euro area monitor national budgets.

Other major European markets have resumed in unison. In London, the Footsie has advanced 0.85% to end at 5307.34 points while in Frankfurt the Dax has risen by 1.47%, to 6155.93 points. Wall Street, which also opened in the green, confirmed the trend. Shortly before the close of European stock,

Bargain hunting

The Dow Jones gained 0.72% and the Nasdaq 0.85%. Wall Street has particularly welcomed the results of Wall Mart.The U.S. retail giant, whose numbers are often included as an advance indicator of the U.S. economy has garnered in the first quarter of current year net income of over $ 3.3 billion, well above expectations analysts.

In Paris the CAC 40 was worn by groups rooted in the international advantage of the weakness of the euro and an intense hunt for bargains.

The group's title defense and aerospace firm EADS has been leading the race for almost the entire session. Titles major exporters such as Michelin or Saint-Gobain also benefited from the movement as well as luxury groups. Analysts at JP Morgan believe that the weakness of the euro should be particularly conducive to luxury groups like LVMH and Hermes but also in L'Oreal, and is active in the United States.

After blowing the last few weeks, banking stocks were under PURCHASE cheap. Just before the close, Societe Generale, BNP Paribas and Credit Agricole showed increases of between 2% and 5%

European stock markets: banking stocks plunge

Societe Generale, -6.6%, Credit Agricole, -4.9%, BNP Paribas, -4.6% … French banks weigh heavily on the Paris Bourse. The CAC 40 digs on Friday its losses (-1.8% to 3663 points to 11:00).

His European counterparts also suffer, while banking stocks enroll the largest declines, everywhere.

This reflects the renewed concern about the economic health in Europe, barely a week after the European plan negotiated the titanic last weekend. Further evidence of the uncertainty room, the euro broke the 1.25 dollar, which had not happened for 14 months. Gold coast near 1,240 dollars per ounce. Unheard-of.And oil is under $ 74 a barrel.

Banks underperforming in Europe

In Italy, while the FTSE-Eb hollow losses and was down 2.7% at 20,314 points at 10:30, the many bank stocks are at the bottom of the list: in order, loose UniBanca 4.6% to 8.1 euros, Mediobanca, 4.2% to 6.2 euros, Banco Popolare, 4% to 4.25 euros, UniCredit, 3.5% to 1.9 euro, and Intesa Sanpaolo, Italy's leading bank , yields 3.8% to 2.2 euros.

In Spain, same old story. The Ibex 35 largest market capitalizations falters 3.4% to 9639 points, and the banking sector heavyweights weigh box. Banco Santander, the second largest bank in Europe, falling 5% to 8.7 euros, and Banco Popular 4.75% to 4.7 euros.BBVA fold from 3% to 9.2 euros and 3.6% of Bankinter at 4.85 euros.

The Dax in Frankfurt, he, more resilient – the index of 30 companies the biggest German stock market down 0.45% at 6223 points. But again, it is Deutsche Bank, which is at the bottom, falling 2.16% to 49.8 euros and Commerzbank sells 2.1% to 106.8 euros.

In Belgium, KBC retrograde 3.4% to 31.5 euros and Dexia 3.25% to 3.7 euros in a market down 1.75% at 2490 points for the Bel 20. And in Switzerland, UBS depreciates 3.35% to 16.1 Swiss francs, financial group CS Group lost 3.1% to 47 Swiss francs.

The bank still frontline

Fears of a state unable to grow its fiscal power the risk of lowering its rating by a rating agency. But what are the financial institutions in a country with the largest of government securities in the portfolio.

Generally, capital financial institutions required to hold an asset also depends on the "rating" (the note) of the issuer of this title. If it deteriorates, the capital required to hold a state title will be more important.

As banks are exposed to the Spanish Treasury securities, profitability and solvency is lowered … hence the fall in stock.

First cuts in state spending

Until now, the French have not felt the effects of policy, expenditure control has been conducted since 2007. For the general revision of public policies (RGPP) merely cut in the organization of the state, culminating with the non-replacement of staff on two retiring. After the controversy arose in Spring 2008 when Bercy had failed to dent the map "families," the executive had resigned himself to not touch, or marginally so, the expenses of intervention, ie policy social and wider economic (costs targeted exemptions, housing subsidies, RSA, assisted contracts …) and subsidies (crops, including transport).

Today, given the magnitude of deficits, the government changed its tune.In framing the letter he sent to all departments, Francois Fillon requires a 10% decline in value of intervention expenditure in the period 2011-2013. "To meet the target of freezing government spending-load of debt and pensions, we can not content ourselves to work on the only day operation of departments," said Baroin's entourage, the Minister Budget. In fact, operating expenses, such purchases, computers or real estate, representing less than 20 billion euros, while the operating expenses weigh 67 billion. The Prime Minister had already announced a cut of 10% within the past week payday loans. Measurement confirmed in the letter of framing.The extension of this plane to political intervention will save 6 billion more to the state by 2013.

Difficult choices

Remains now to determine exactly where the cuts will take place. Discussions between Bercy and the ministries that will lead to arbitrage mid-June, tight ahead, as the operating expenses are political. Social expenditures account for half wicket. For them, it will take "specific reforms," according to the letter of framing. Minister of Youth, Marc-Philippe Daubresse however assured Wednesday that the criteria for awarding the RIAA will not be changed. The other half of the expenditure is made up of sectoral aid.Transport (including rail network of France), agriculture, housing and culture are on the front line.

"More generally, all departments will freeze all spending," insists one at Bercy. Including, therefore, that of Defence, while the military budget law provided an increase in appropriations. But everything should be done to ensure that capital expenditure are chipped to a minimum.

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The EU wants to "save the euro, London plays alone

An afternoon and night to negotiate a little. Finance ministers of the European Union gathered in Brussels on Sunday to develop a European Support Fund before the opening of Asian stock markets in the night. The mechanism would be for the countries of the euro area are experiencing difficulties in refinancing their debt markets.

These negotiations will be tough. If Sweden, which does not belong to the eurozone, said she would not rule of replenishing the fund for assistance, the United Kingdom, he was categorical. It will not contribute to the plan because it is not part of the single currency club.

"I think it is important that we do everything we can do to stabilize the markets …Be very, very clear: if there is a proposal to create a stabilization fund to the euro, it must be left to the Eurogroup countries, "said British Finance Minister, interviewed from Brussels by British news channel Sky News.

Despite these differences, the EU wants to send a strong signal to markets. They have since the beginning of the crisis in Greek, brought little credit to European decisions. On Sunday, the Spanish Minister of Finance, Elena Salgado, has shown great volunteer arriving in Brussels for talks: "We will defend the euro, we believe that we should give more stability to our currency, and we will do what is necessary to achieve that goal. "She also stated that "Spain does not intend to use this fund."

The original idea was that the European Commission to borrow under the guarantee of all countries of the European Union, including those like Britain that do not use the euro, as it is mechanism of the EU, diplomatic sources said.

To validate such a device would require the approval of a majority of the 27 qualified enough that EU ministers meet in Brussels, but the goal is to have a consensus.

An agreement must Tonight

London's refusal to participate could force the euro zone to fall back on a loan facility guaranteed by the only countries using the single currency, an option also being considered.

The contingency plan for defending the single currency will he ultimately guaranteed by all countries of the EU or the only states in the euro area? "It's a question for debate," a diplomatic source admitted to another European country.

The British, they refuse to give their guarantee for loans in Europe, however, are willing to approve in principle the establishment of the Stabilization Fund, according to British sources.The latest proposal on the table talking about a $ 60 billion for the fund, she said.

The euro area is imperative to reach an agreement before financial markets open in Asia on Sunday night to Monday in order to be able to reassure investors after Greece took in their sights Spain, Portugal or Italy.

London also in turmoil

The United Kingdom is, as the euro area in turmoil. The elections on Thursday did not produce a clear majority in Parliament, which is at once suspended. Because of this uncertainty, the pound fell Friday below 1.46 dollars, its lowest in a year.

Markets are particularly concerned about the reduction of budget deficit British, the highest of the major EU countries. It reaches 12% of gross domestic product (GDP).What dig the debt, which could peak at 94.1% in 2011, according to the OECD. The rating agencies expect the presentation of a future austerity plan to degrade or not the "AAA" rating from the United Kingdom.

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»COMPUTER GRAPHICS – Aid to Greece in five questions

Agreement between the EU, the IMF and Greece on an aid plan

Considered "strong" and "credible" by European Commission President Jose Manuel Barroso, the program of multi-year budget cuts proposed by Greece to return to high deficits and debt decent justifies the activation of the aid plan finances by the European Union (EU) and the International Monetary Fund (IMF).

Greek Prime Minister George Papandreou said on Sunday a new "sacrifices" that meet the requirements of the IMF and the EU, adding that the new austerity measures against officials and retirees of public sector salaries and save private sector.

A deficit below 3% in 2014

"We are all called to make a choice. The choice is between the collapse or a program of structural change.The government has decided to save the country ", said Sunday the Minister of Finance, George Papaconstantinou.

Save the country, European language, is to establish an austerity plan that allows the return of a budget deficit below 3% of GDP, the ceiling required by the Maastricht Treaty to cement his place in the EU.

Thus the Minister of Finance has proposed to launch an "economic agenda that includes efforts to reduce the budget deficit of 11 percentage points of GDP or 30 billion euros – more than 4.8 billion already announced for 2010 – from today and the next three years "for a return under the famous European threshold by 2014.According to estimates by the Greek government, the deficit would be 8.1% this year, 7.6% in 2011, 6.5% in 2012, 4.9% in 2013 and finally 2.6% in 2014.

From his side, public debt is expected at 133.3% of GDP this year and should continue to rise, up 149.1% in 2013, before beginning to recede in 2014, 144.3%.

Drastic measures

Among the main measures announced included a wage freeze and the removal of 13th and 14th month salary in the public service. There will, however, no change in private sector wages.

The minimum age for retirement is 60 years. Public investment will be reduced and a fund to help the banking system will be implemented.

Starting in 2010, is also provided a further increase of one to two points of the VAT (value added tax, which is already 21%, France is at 19.6%) fast cash advance loan.

A financial assistance plan to ensure the stability of the euro area

Ending speculation and ensure the stability of the euro area. These are the priorities for a Europe troubled for several weeks by the threat of bankruptcy of one of its members.

While rates have long known Greek fevers to worry about the financial world right, and that the euro has depreciated at a rate fears about the ability of Greece to declare bankruptcy, the very viability of the model European Union has been threatened. Political tensions between the heads of state of member countries have revived the debate on Europe in a failure of coordination.

The amount of funding to be given jointly by the EU and the IMF has not yet been revealed, but it will be "unprecedented in the world. The French Minister of Economy Christine Lagarde on Saturday evoked total amount of support within the range suggested by the IMF and the European Commission between "100 and 120 billion euros". She said it was "a plan over three years, the current year, 2011 and 2012." According to analysts at Natixis, the country would need 130 billion euros over three years.

In any case, Greece might blow. The country will repay its term of almost nine billion euros to be repaid on May 19 next.

Never again

Nicolas Sarkozy and Angela Merkel intend to take "initiatives in the coming days" for Europe to strengthen monitoring mechanisms within the euro area, expedite its work on the fight against speculation and improving the transparency of products derivatives and make further proposals on the regulation of rating agencies.

For these rating agencies, Banier Michel European Commissioner for Internal Market and Services, expressed support on Friday to create such an entity in Europe that would complement three existing credit rating agencies, all U.S., Standard & Poor's, Moody's and Fitch.

"SPECIAL CASE – Greece, a challenge for Europe