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Right in the debate on a more vigorous European Central Bank (ECB) in the rescue of the euro, the U.S. ambassador to the European Union said it had "the potential" to resolve the debt crisis. ECB

The U.S. ambassador to the European Union suggested Tuesday that the European Central Bank had the "potential" to do more to resolve the debt crisis in the euro zone, while the debate rages in Europe on this issue. "We are following with keen attention that the European Central Bank is able to do and the potential it has to do more" to the crisis, said William Kennard, in a meeting with some journalists in Brussels.Many economists believe that only the ECB is now able to effectively firefighters to extinguish the fire and should follow the example of the Federal Reserve (Fed). The U.S. central bank acts as "lender of last resort" for the administration by buying unlimited market U.S. Treasury bonds.

"At the peak of the (financial) crisis that we experienced (USA), we were able to use the Fed in a manner different from that in which Europe can use the ECB. It s' acts of a fundamental structural difference, "said the ambassador. Mr. Kennard said would not know how to change the debt crisis. "The outcome of this crisis is quite unpredictable, we do not know how it will be resolved and I think nobody knows," he said.

G20 countries Thursday put the finishing touches on a concerted action plan to try to put the global economy on the path to a sustainable and balanced growth and discussed the possibility of increasing IMF resources to help countries reeling from economic shocks.

According to a draft final statement dated November 2, they should agree at the end of their summit in Cannes on the need for countries with high deficits to put their finances straight and for those who have surplus boost domestic demand.

As part of this plan, Italy, which is in the eye of the storm of the European crisis, promise to reduce debts and deficits (see) to quickly bring in 120% from 2012 in its public debt of national wealth."There is a broad consensus on the need for additional financing (…) We will work on it tonight and tomorrow," she said.

PASSAGES IN WHITE

If the passages devoted to IMF resources and currency remain white, indicating that these issues are still debated, the draft final communique is also no real surprise.

Given the risk of future crises, the G20 leaders are considering a proposal to create a new credit facility in the short term the IMF to help countries that are virtuous face of exogenous shocks ().

Europe is moving towards an agreement on the sovereign debt crisis but "banks must now accept the necessary sacrifices," said Jean-Pierre Jouyet, the president of the Financial Markets Authority, in an interview published Tuesday by The Tribune.

"A lot of the success of the second meeting of the Eurozone is in their hands," he adds.

Finance ministers from the euro area opened Friday six days of intense negotiations, punctuated by an EU summit Sunday to a high of the euro area, where the outcome expected Wednesday is considered crucial for the future of the single currency.

For reassurance on the risks of contagion, "the markets want a political Europe even stronger. A battle will hopefully gained Wednesday, but not the war.It will be played on fiscal consolidation and real political integration, "the president of the AMF.

He said Germany is now "the business model and budget the most efficient in Europe."

Jean-Pierre Jouyet also known as the European Commissioner for Internal Market Michel Barnier to go further in reforming financial markets.

"Today there is an excess of power of financial markets on policy choices. It is time to regain control in the regulation of markets," said he.

French deputies have reduced by nearly 1, 5 billion to 80.321 billion, the deficit in the draft budget law for 2012 at the conclusion of the review, Monday, the first part, the revenue .

The deficit in the original was 81.772 billion euros.

MEPs will vote on Tuesday by a solemn vote of the whole of this first part of the finance bill that the Senate will consider in turn from 17 November.

The level of the deficit is likely to change again with the review by members of the review of the second part of the budget, the expenditure, then the entire text by Senators.

European stock markets closed sharply higher Friday driven by hopes for concrete decisions for the euro area. Update on four major issues of the summit on Sunday. The European Council President Herman Van Rompuy, Nicolas Sarkozy and Angela Merkel in Brussels.

European stock markets have taken the bull by the horns Friday night, driven by renewed optimism for two days of the EU summit must respond to the crisis in the euro area. Paris ended up 2.8%, Frankfurt 3.5%, London 1.9%, 2.8% and Madrid. The eyes are now fixed on Brussels, which is expected to announce concrete steps Sunday to save Greece, prevent contagion of the crisis in fragile countries in the euro area, and reassure the markets.Update on four major issues in this summit.

The loan to Greece is he paid?

Greece has a positive decision of the creditors (IMF, EU, ECB) after passing the test on Wednesday and Thursday of the street. Parliament passed a new law Thursday austerity which provides further wage cuts and layoffs in the setting of 30,000 employees. But if the payment of this sixth installment of the loan of 110 billion seems to be accepted by Brussels, the IMF's involvement is less. The institution is actually more pessimistic than Europe on the development of public finances of the country.

What level of discount for Greece?

The discussions relate "50%" according to a European source. This level imposed on the country's private creditors would erase 67.5 billion euros of Greek debt that will culminate later this year to 357 billion euros (about 162% of GDP).That's a lot more than what was agreed at the Summit of 21 July, the discount was set at the time to 21% of the commitment of private creditors. If this hypothesis is confirmed, this discount will remove 20% of the debt. The Union of Greek Industrialists (SEV) held Friday consequences "dramatic" if this level should be imposed on private creditors. But this statement should not weigh very heavy in view of the issues … However, the whole question is about the ability of Europe to offer a discount to private creditors 'voluntary' of their claims. For without this principle, the credit event could be delivered, which would open the door to bankruptcy of the country.

How much money to recapitalize the banks?

To allow banks to withstand losses on the country's debt, the EU will reassess the capital ratios of European banks to the tune of 9%.For this, the European Banking Authority (EBA) has assessed the need for recapitalization of banks from 80 to 100 billion euros. The question is whether this amount will be enough to reassure the markets knowing that the IMF rather evoked a level of capitalization to 200 billion euros. In all cases, the major European banks were against a forced recapitalization. And warned that, given the difficulties to obtain financing, this would lead them to reduce the size of their balance sheets. In other words, to reduce their lending activity.

How to strengthen the EFSF?

This is where things get complicated. For Paris and Berlin have not yet found agreement on the issue. For France, it would give the banking license to the European Financial Stability (EFSF) to enable it to refinance with the European Central Bank (ECB).Leverage and the ability to fund intervention limited to 440 billion euros that can lift the markets. Paris also wants the ECB to continue to buy bonds fragile as it has done for over a year. But Berlin and the ECB refuses, and instead want to change the Fund's insurer. It would ensure any losses would have to suffer the investors in the bonds of fragile states up to 20 to 30% in case of difficulty in these states to honor their commitments. This idea has received support Friday from 10 major European banks and insurers. But here, in addition to France, Spain and Italy do not agree. Rome and Madrid, this will create a rate difference between bonds and debentures. "No one in a financial crisis, venture to purchase securities that need a crutch," said EU official.This is mainly because of these disagreements has been decided a second peak of the euro area, next Wednesday.

Schneider said Thursday lowered its forecast for 2011 operating margin mainly because of a mix more negative than expected in terms of activity and contribution of geographic areas.

The French specialist of electrical equipment said in a statement that it now expects an EBIT margin (earnings before acquisition costs and impact of integration and consolidation of acquisitions in the year 2011) of 14% instead 15% previously forecast.

However, the Group confirms its forecast for organic growth of between 6% and 9% for the year.

"We expect, however, that profitability is impacted beyond the forecast, the combined effect of a mix more negative, due to growth of solutions greater than that of products and geographic mix less favorable, and a stronger inflationary pressures in emerging economies, "said Jean-Pascal Tricoire, chief executive, said in the statement.

The turnover of the group reached 5.697 million euros in the third quarter, representing organic growth of 7.7%.

At 9 months, organic growth reached 9.3%, faster than the annual target.

The activity "Power" (38% of sales in Q3) recorded organic growth of 7.6%, "Energy" (21% of sales) increased by 7.3%, "Industry" (19% of sales ) 6.6%, "IT" (15% of sales) of 12.6% and the activity "Buildings" (7% of sales) 3.0%.

The activity remained stable in Western Europe, the main market of the group (31% of sales), while Asia organic growth of 15% and North America 9%.

Emerging markets, which posted growth of 14%, now represent over 40% of the total turnover of Schneider.

Investors weary of the impact of the crisis in the euro area financial markets will have something else to put in their mouths this week: the results of business.

As each "earnings season" quarterly, the aluminum producer Alcoa, which will open the ball, his numbers are expected in the third quarter after the close of Wall Street Tuesday.

Business performance and prospects announcing they are considered an important barometer of the state of the global economy and are also likely to give an indication of the impact of the crisis in the euro area on profits companies.

But, having risen sharply over the whole of last week, Wall Street may have difficulty continuing to rise even if corporate earnings are better than expected.

Technical analysts have said in effect that the moving average of 50 days S & P 500, currently at 1178 points, could represent a significant resistance.

In the past week, the S & P benchmark for fund managers, has gained 2.1% to 1155.46 points, buoyed by the feeling that European leaders are now determined to solve the problems of their banks weakened by the debt crisis.

Nicolas Sarkozy traveled to Berlin on Sunday for talks with Angela Merkel of crisis, with a priority to overcome their differences on how to recapitalize European banks.

"Over the next three weeks, attention will focus on results – even if the situation in Europe will always be present in people's minds," said Ken Polcari, an analyst at ICAP Equities.

In addition to Alcoa, next week will also see the results of PepsiCo, Google, JPMorgan Chase and Mattel.

CONSERVATIVE ANALYST ESTIMATES

In light of the debt crisis of the area, but also signs announcing a slowdown in the global economy, many corporate earnings forecasts were revised downward by analysts in recent months .

"The forecast for the quarter just ended were very conservative so there are chances that companies do at least as well as the consensus," said Marc Pado, technical analyst at Cantor Fitzgerald.

In terms of macroeconomic indicators, market players expect including the minutes of the last meeting of the Federal Reserve, retail sales for the month of September and the feeling of households for the month of October, according to Index Thomson Reuters / University of Michigan.

The latest U.S. statistics have been rather better than expected, which has banished the specter of a return to recession in the United States and contributed to the rebound on Wall Street last week.

But, and this also applies to any positive impression left by the business results, although some indicators of the coming week confirm this trend, the positive effect could be negated if further deterioration of the debt crisis the euro area.

Peter Brabeck-Letmathe, the chairman of Nestlé, is sounding the alarm over soaring food prices. It could mean new revolts in poor countries. An Indonesian dried corn grows, without benefit of the inflation of commodity prices. Indonesia is now the largest importer of maize. REUTERS / Sigit Pamungkas (INDONESIA – Tags: BUSINESS FOOD) AGRICULTURE)

The food prices are expected to remain high, which could lead to new hunger riots in developing countries, said President of the Swiss group Nestle in an interview published Friday.

"We have reached a level of food prices substantially higher than we had before. They are expected to stabilize at this level," said Peter Brabeck-Letmathe in this interview with the daily Salzburger Nachrichten.

"When you live in a developing country and we spend 80% of its income on food, we feel bound to it differently from us," where such expenses are around 8%, he argued.

For him, new hunger riots like those that had rocked Africa, Haiti or Indonesia in 2008 are likely to recur. "The situation is similar, it has become the new reality," he said.

Soaring food prices this year is considered one of the reasons that contributed to the "Arab Spring" in North Africa and the Middle East.

The price increase is attributed both to speculation, climate change, increasing population, or to changes in dietary habits in some emerging countries like India, where the middle classes have significantly increased their consumption meat.

For M.Brabeck-Letmathe, the issue of water is also crucial. "We already consume today" too much water, he said, encouraging businesses and consumers to waste less.

Italian energy company Acea said Wednesday its intention to take legal action against EDF regarding the acquisition by the French in 2005, through its affiliate Edison, a majority stake in Edipower.

Acea believes that EDF has acquired illegally participation in conjunction with Aem Milano, now part of the company A2A.

European shares closed higher Friday on hopes of Action of the European Central Bank and government to mitigate the effects of the crisis of sovereign debt in the euro zone and support banks.

However, caution remains the watchword.

Bank stocks recorded the highest increase in Europe with a sectoral Stoxx index which gained 3.53%.

In Paris, BNP Paribas (9.78%), Societe Generale (8.76%) and Credit Agricole (4.78%), which was this week in the eye of the storm because of their exposure to Greek and Italian debt, eventually leading to increases in the CAC 40 on market rumors paying for the government to carry out some form of recapitalization.SocGen and BNP did not wish to comment on these rumors.

The gains, however, show small-scale loss of investor confidence in the ability of governments to quickly implement practical solutions to the crisis of sovereign debt and boost savings on the brink of recession on both sides Atlantic.

This cocktail of strong concerns about the banks is causing serious losses in stock market indices.For the week, the CAC 40 dropped 7.29% in Paris and at European level the EuroStoxx 50 index dropped 6.17%.

"RAMPANT FAILURE OF GREECE"

The CAC 40 gained 1.02% Friday to 2810.111 points after touching a session in new low of 2693.21 points in the year, returning to its level in March 2009.

Risk aversion has stalled late in the session, the performance of the German government bond (Bund) and 10 years, fell in the day to a new record low at 1.64%, found its level Thursday (1.75%) at the close of stock markets.

The euro meanwhile pondered over $ 1.35 and was trading around 1.3508 dollar.

Other major European markets, London

gained 0.5%, 0.63% Frankfurt, Milan 1.36%.The pan-European Euro Stoxx 50 index has been 1.52%.

"Operation Twist (the Fed) has failed to revive stock markets. It is a terrible verdict, a confirmation that governments no longer able to stimulate the economy central banks find themselves faced with the challenge to bring to his aid, "wrote Vincent Chaigneau and Ciaran O'Hagan, rates strategist at Societe Generale in their weekly note.

"They will continue to shoot in the dark, hoping to keep away the ghost of recession.Good luck, "they said, stressing that the stress imposed on the funding of banks is" a great threat to the economy. "

Pichard for Franklin, director of Barclays Bourse France, "markets do not stop to include a default rampant in Greece (although it is true that the 'political' do nothing to speed things up) and the recapitalization of some European banks. "

Cyclical stocks such as Technip (-3.93%) and Alstom (-2.52%) recorded the largest declines the CAC 40.