Greek Socialist leader Evangelos Venizelos said Tuesday that Greece should "alas" return to parliamentary elections, in principle within one month, without an agreement on forming a coalition government.

"We're going back to the elections in a few days, in very bad conditions," said Mr. Venizelos, after a crucial meeting with four other political party leaders, convened by the Head of the State Karolos Papoulias. "The efforts of government formation have concluded without success," confirmed a statement from the presidency, played live by a journalist of public television Net.

Mr. Papoulias is to convene at 10:00 Wednesday the leaders of all parties to establish an interim government, charged with caretaker pending the holding of early parliamentary news. Tuesday's meeting was the last chance to form a government "personalities" to get the country out of political deadlock, which worries the European partners and creditors of Greece, EU and IMF. Participants at the meeting were the Conservative leader of New Democracy, Antonis Samaras, M. Venizelos and the leaders of the radical left Syriza, Alexis Tsipras, the Democratic Left, Fotis Kouvelis and training national-populist independent Greeks, Panos Kammenos. The neo-Nazi party there was not invited, and the Communists have declined the invitation.

"Greece is heading towards elections, the meeting did not yield results," said Mr. Kouvelis, after the end of the meeting. This leader had proposed "an ecumenical government" but because "the refusal of the party of the radical left Syriza, this government could not be established," he said. Greece has been trying for over a week to form a coalition government after no party won a majority in parliamentary elections on May 6.

The airline needs to spend a large order by the end of 2016 to reach its goal of doubling its capacity to 150 million passengers a year.

An order before the end of 2014 is unlikely, however, said Michael O'Leary told reporters.

The CEO of Ryanair also said that if his group paid a special dividend in respect of fiscal 2013, it does not pay a second in 2014.

Asked if the Commission felt that Madrid was always able to avoid stressing the currency bloc to preserve its banking sector, Olivier Bailly simply replied "yes".

He also said the Commission would be able to have an overview of the efforts of Spain to consolidate its finances once the Spanish Government has delivered a comprehensive overview of its plans, including regional governments. 

Lack of information, particularly on the provisions which reach implement local Spanish, "the Commission is not able to make any recommendation at Madrid" he added.

The credit market has recorded one of its best quarters in issue volume in number of transmitters and in reducing risk premiums (spreads), related professionals. 

"Issuers have succeeded without difficulty in raising funds to historically low levels and syndication desks (banks) had a stellar quarter," writes in a note Suki Mann , head of credit strategy at Societe Generale.

Gaëlle Malléjac, responsible for managing rate at Groupama Asset Management, points out that if one judges by the evolution of the Barclays corporate EuroAgregate, March 26 corporate credit engrangeait performance 4.63% higher than German debt.

"The average spread of the universe credit stood at 215 basis points (over German debt) at March 26, against 322 bps at end-December 2011," adds she said. 

"Concomitant resistance of German Bunds, risk-free assets, is a great enigma. The German rate (1.8% for 10 years) is disconnected from the fundamental view of the im improvement of economic situation, "said the manager.

She explains that in fact "excess liquiditésa benefited all asset classes," even the most expensive as Bunds.

BANKS EMIT NEW

The primary market for credit has regained health insolent.

"There was this quarter a record number of shows. At each show demand was strong from the beginning of this year the premium has significantly reduced or disappeared, "says she …… According to data

… established by the team of Suki Mann, the third quarter ranks among the most active primary market with 53.3 billion euros issued by non-financial corporations classified as investment (Investment Grade, IG) against 27.6 billion in the first quarter of 2011 …. In

….. speculative grade (high yield, HY), the threshold of EUR 10 billion was reached, a third of the amount total issued in 2011, and ranks fourth quarter in terms of amount issued on the euro market. 

Abruptly closed last summer with the worsening debt crisis in the eurozone, the segment of senior bank debt unsecured woke up with a bang 55 billion Euros against 12 billion for the last six months of 2011.

This rise is largely up to the credit of the last acts of unconventional European Central Bank, which was conducted in December and February 2 refinancing operations and three years of euro area banks.

The cumulative amount lent to banks at a rate of 1% has exceeded 1,000 billion and has raised a major concern emerged in 2011: the inability of banks to use market ;. 

ECB DETERMINED TO SUPPORT BANKS

"The ECB has demonstrated its determination to do everything to support the banking system of the euro area. There is more risk of refinancing of banks by 2014-2015, "said Gaëlle Malléjac

." The two LTRO averted a 'credit crunch' and to banks to buy debt device, "said Nicolas Forest, head of rates strategy at Dexia Asset Management …..

…. "With LTRO, banks have changed their behavior in January," said Gaëlle Malléjac, adding that vendors of debt Italian or Spanish sovereign, they increased rates to buyers

. 10 years Spanish and Italian have declined to 4.86% and 4.81% in February, against 6.73% and 7.3% in November at the height of the crisis in the euro area. The Spanish rate rose to 5.43%, attesting to the difficulties of the Madrid government to meet its objectives of reducing public deficits.

The professionals interviewed all stress that if the time for the LTRO has averted the risk of a credit crunch and that governments have set short-term problem of Greece and its private creditors, the underlying problems remain.

"Governance problems and structural imbalances in the euro area whose solution will take time for caution for the future," notes Nicolas Forest. However, he believes that governments seem to have learned from the bear market in 2011.

Gaëlle Malléjac and Suki Mann also express caution. But they want to believe that the new fiscal pact in the process of ratification and the expected agreement on an increase sufficient means of financial solidarity mechanism at meetings of finance ministers of the EU this week- Weekend in Copenhagen should allow a continuation of the rally-but at a more modest pace, especially for spread tightening.

The Standard & Poor's 500, which on Thursday signed its best daily performance in two weeks to finish at a high of nine months, rose by 0.32% (4.39 points) to 1,362.44 points in early trade, from a test area of ​​technical resistance around 1,360 points.

The Dow Jones takes him 0.35% (49.35 points) to 12,949.80 points while the Nasdaq composite is stable (0.02%) to 2,960.46 points. 

The Italian Prime Minister Mario Monti, German Chancellor Angela Merkel and Prime Minister of Greece Lucas Papademos are optimistic about the chances of concluding an agreement on Monday in Greece, said Friday services Head of Italian Government after a teleconference between the three leaders.

Moreover, the European Central Bank (ECB) is considering allowing Greek bonds held by central banks in the euro zone to experience similar discounts to those offered by private investors told ; Reuters sources within these central banks. 

"With a jump of more than 4% of the Greek Stock Exchange, European banking stocks rose and the S & P which is the subject of buying whenever it drops, the market assumes that European finance ministers will approve the bailout (of Greece) Monday, "said Peter Boockvar, equity strategist at Millar Tabak.

The market has little pre-market reacted to the publication of retail prices in the U.S. in January, which rose 0.2% last month as expected by economists .

Values, Apple advance of 0.62%. The group at the apple has seen its share of the smartphone market in China back in late 2011 for the second consecutive quarter to compete with local builders and buyers a wait of some of its pre-market iPhone 4S.

Applied Materials, who said to expect an acceleration of the recovery in the second quarter of fiscal year, increased by 3.33%.

Baidu and Heinz, who delivered results above expectations, experienced varied: Baidu was down 1.97% and 4.22% Heinz wins.

"Political leaders should give an answer in principle tomorrow afternoon (the EU)," he told reporters Panos Beglitis, spokesman for the Greek Socialist Party ( PASOK) on Sunday.

They will then discuss the plan of the troika (International Monetary Fund, European Commission and European Central Bank) at a meeting chaired by Prime Minister Lucas Papademos.

"There will be a meeting of political leaders chaired by Papademos tomorrow afternoon," said Beglitis. 

The chief minister said for his part that the various managers of the government coalition have agreed on a reduction in public spending by an amount equivalent to 1.5% of GDP this year.

This includes measures to reduce salaries and benefits costs to make the Greek economy more competitive, he added.

He also confirmed the meeting of heads of coalition parties on Monday to conclude negotiations on the second aid package of 130 billion euros to be implemented by the mid-March to avoid a collapse of public accounts. 

The two main Greek unions called for a 24-hour strike Tuesday to protest against austerity measures and reforms demanded by international creditors.

"We expect one-day strike on Tuesday," said Ilias Iliopoulos, general secretary of the ADEDY representing public sector employees.

"Despite our sacrifices and despite the recognition that this policy mix is ​​bad, they ask even more austerity," he added.

ADEDY and its private counterpart, the GSEE, representing about two million workers in Greece, about half of the workforce. 

BAROIN OPTIMISTIC

Creditors of Greece had requested a reduction in spending worth one percent of GDP, slightly more than two billion euros for 2012.

The negotiations on the restructuring of the Greek debt held by the private sector rose "relatively well", said his side the French Minister of Economy and Finance, Sunday .

"I think it progresses smoothly on the part of private sector involvement to be made on a voluntary basis," said Baroin under the "Grand Rendez-Vous "Europe 1-Le Parisien-i> Télé.

"We would not get away from the level at which one must move the Greek debt in 2020, that is to say around 120%," said the French minister. And "it is because we do not withdraw these objectives that the discussions are difficult," he said.

"Anyway, it's later than February 13," continued Baroin.

February 13 is the deadline posed by the euro area to launch the operation, which should bring the Greek debt around 120% of GDP in 2020 against over 160% today.

The private sector should accept a discount of around 70% of its obligations under the exchange program of the Greek debt. This will help to lower than 100 billion euros of debt of Greece.

In exchange for a loan of at least 130 billion euros by 2015, the troika of institutional creditors requires further structural reform and further reforms of austerity authority to clean up its public accounts.

Troika calls including a lowering of wages in companies and supplementary pension, which measures face many political and union resistance.

In the absence of an agreement, Greece is threatened with failure to pay on 20 March, when mature 14.5 billion euros of bonds.

FARM CREDIT * (+20.3%), BNP PARIBAS (16.23%) and Societe Generale (14.8%) are leading the CAC 40, with AXA (13.9%).

Out CAC 40, Natixis is 11.6%.

BNP Paribas, Societe Generale and BPCE (People's Bank, Savings Bank) have additional capital needs between 2.1 and 3.4 billion euros, while Credit Agricole is regarded as sufficiently capitalized, reveal tests by the European Banking Authority (EBA).

BNP and SocGen said they could come into compliance with new rules without recourse to the market.

* Dexia wins 6.10%.The title was suspended from trading for the announcement of its capital needs, estimated at 1.7 billion euros.

* AXA also announced a decrease of 4.8% of its turnover for the first nine months of 2011, mainly due to the retirement savings Life business where the insurer has given priority to the margins rather than volumes .

* ARCELORMITTAL also jumped 7.7%, with the entire commodity sector in Europe (+5.9%), and other cyclical sectors that benefit from the feeling that the agreement limits the risk of a sharp recession.Many brokers have reduced their price target, including Goldman Sachs, Morgan Stanley, Exane BNP Paribas, Credit Suisse, UBS, Natixis and Kepler, following the announcement of a new downward revision to its goal of operating income and the elimination of 6,000 jobs.

Moody's also changed the outlook to negative on its debt, while the Baa3 rating is confirmed.

Brazilian Minister of Trade and Industry Fernando Pimentel said Wednesday that PSA would invest 3.7 billion reais (1.5 billion) to Brazil to double production by 2015.

* RRP is 6.2%, boosted by the announcement of a very strong sales growth in the luxury market in the third quarter despite a difficult economic environment.

The Bank of France reiterated Monday its forecast of growth of 0.1% of the French economy in the third quarter, based on the results of its latest monthly business survey.

In September, "industrial activity has remained stable, the contraction in the automotive and manufacturing equipment was offset by the increase observed in the food industry and some sectors of production of consumer goods" said she.

The Bank of France said that the forecasts of business leaders expect a continuation of the stability of industrial activity in the coming months. Services could, in turn, suffer from a slowdown in activity.

Thursday, INSEE had indicated anticipate GDP growth of 0.3% for the third quarter, a more optimistic prediction than the Bank of France.But the institute expects a stagnation in activity over the last three months of the year highlighting the sharp deterioration in the economic climate in the euro area during the summer.

The indicator of business climate in France has lost eight points between July and September to $ 97 in its long-term average of 100.

INSEE also announced Monday that industrial production rose by 0.5% in August while economists polled by Reuters on average expected a contraction of 1%.

"It's always good to take.PMI surveys suggest already predict a decline in output, which shows that this sector should not escape the impact of slower global growth and lower domestic demand against a background of escalating crisis debt in the euro area ", says Joost Beaumont, economist at ABN Amro.

Markit PMI surveys among purchasing managers have shown last week a contraction of manufacturing and for services, the lowest growth for two years.

The only support activity at year end could then once again to come from household consumption, unless the sovereign debt crisis incentive for consumers to save more.

According to Insee, the saving rate of French households has reached 17% in the second quarter, its highest level since the third quarter of 2009.

The European Commission said Friday it would submit in the coming days proposals for a coordinated recapitalization which will allow to reassure markets worried about the resilience of the banking system facing the European financial and economic crisis.

They should be ready in time for the summit of the European Union and the euro area provided 17 and 18 October, which will give "a clear signal" on the subject, said German Chancellor Angela Merkel.

Asked during a visit to Armenia, Nicolas Sarkozy said Berlin was "the proper place" to discuss these issues Sunday.

German and European sources, there are reports of disagreements between Paris and Berlin on the use of European Financial Stability Fund (EFSF) to provide the necessary funds, the International Monetary Fund (IMF) estimates that between 100 and 200 billion euros .

For Germany, the appeal to EFSF, which has the capacity for intervention of 440 billion euros, should be a last resort, if the banks were unable to finance on the markets and whether their country are not able to provide them with public funds.

Receiving the Dutch Prime Minister Mark Rutte, Angela Merkel reiterated that the EFSF should be activated "if a country can go it alone."

According to a German source, the French, whose banks have the highest exposure to the debt of the peripheral countries of the euro area, "misunderstood the EFSF" and want money from the European emergency fund is available to all financial institutions in need of capital.

In Brussels, a source close to the talks said that one option considered for the recapitalization of banks is that the countries of the euro "access to EFSF jointly."

"Perfect identity of views"

This idea, which has the support of France but not Germany, would avoid the "stigma effect for a particular country" and display a significant clout vis-to-market, a the source said.

The French Ministry of Economy and Finance has sought to minimize the differences between France and Germany, emerged from discussions within the Eurogroup in Brussels this week, ensuring that the issue had not yet been discussed between the two countries.

"Our position is no different from that of the Germans: it takes more capital for banks, banks must first find in themselves the resources, then if they find private investors outside and ultimately being considered injections of public capital, "it was said at Bercy.

"All this must be discussed at European level and must be coordinated, it is currently being considered," they added noting that the issue of "instruments of a possible recapitalization public has not yet been addressed."

Diplomatic sources in Brussels, it indicates that the position of France is motivated by the desire to maintain the AAA rating on its debt for fear that it is under pressure in case of provision of public funds to banks important.

"The main thing for France is its triple A and it grows as a result of the use EFSF (for the recapitalization)," said this source.

Paris does not further that the current debate among Europeans are limited to this single question.

"It will be among the topics discussed but the main thing about Greece and the euro area, since the banks is a consequence" of the current crisis, said the French Ministry of Economy about talks Sarkozy, Merkel on Sunday.

In announcing last week his forthcoming visit to Germany, the French president had indicated he intended to "continue the work of collaboration and coordination" between Germany and France to protect the euro.

There can be between the two heavyweights in the euro area "a perfect identity of views to resist speculation, to resist the excitement of the markets and to protect Europe," he stressed.

The BoE's decision on Thursday to bring its program of asset purchases to 275 billion pounds underlines the fragility of the British economy, against a backdrop of fiscal restraint and spending power of consumers due to half-mast 'high inflation and weak wage growth.

The Governor of the BoE Mervyn King, in a letter to finance minister George Osborne, says that the global economic recovery has slowed and the debt crisis in the euro area has caused severe strains in financial markets.

"These tensions within the global economy threaten the British recovery," warns Mervyn King.

If the price increase is expected over 5% annual rate in the coming months, the recent deterioration in economic outlook bodes well for a return in the medium-term objective of the BoE, which is 2% in annual basis.

The Bank of England held rates unchanged at record low of 0.5%.This rate has not changed since March 2009.

The bold decision of the BoE to launch a new phase of quantitative easing contrasts with the more conservative ads of the European Central Bank.

The ECB also held its key rates unchanged Thursday while taking further steps to promote the supply of interbank liquidity and to intervene to the tune of 40 billion euros for the primary and secondary markets for bonds in the euro area .

OUTLOOK further deteriorated

Economists polled by Reuters had given a probability of 40% to restart its program of asset purchases by the BoE expected but mostly that it covers only 50 billion of extra pounds.

The sterling fell to 1.5280 dollars after the announcement, the lowest since July 2010, against 1.5466 before.

"The fact that the Monetary Policy Committee has decided to act now on the quantitative easing and he did it for 75 billion pounds rather than 50 points out that these members consider that the already difficult prospects of the economy further deteriorated due to headwinds both domestically and internationally, "said Howard Archer, economist at Global Insight.

"We believe that quantitative easing will be emphasized in the first quarter of 2012," he added.

The UK economy is virtually at standstill for a year while the government is facing a budget deficit that reached almost 10% of GDP.

The BoE had frozen to 200 billion pounds the amount of its asset purchases since February 2010 in favor of an economic recovery after a deep recession.

Restrictive means adopted by the BoE in view of inflationary pressures has markedly changed over the summer with the fear of a relapse into recession and difficulties for banks caused by the sharp correction in financial markets crisis the euro area and the signs of a global slowdown.

"We would not be surprised to see the total amount of asset purchases to 500 billion pounds, the new stage of quantitative easing, starting with the 75 billion announced today, adding an additional 300 billion in the first phase," said James Knightley, ING Financial Markets.