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After Moody's and Standard and Poor's, the third major rating agency, Fitch said Wednesday that a possible worsening of the crisis in the euro area could threaten the note "triple A" of France.

The return of the French debt to 10 years who had scarcely changed after the publication of this note was then increased to about 3.68% to 16.45, the yield differential with Germany (the "spread") oscillating around 165 basis points. It was over 200 points last week for the first time since the creation of the euro.

"According to Fitch's central scenario, the numbers of French public finances remain consistent with the conservation of its AAA rating," writes the rating agency.

The gross debt of the country in this case could reach the upper limit of the range that Fitch considers consistent with a AAA rating – if this level is temporary and decline thereafter – 90 to 100% of GDP.

"If all of the 158.5 billion euros in France's commitments to the EFSF was disbursed, the gross public debt would reach 98.2% of GDP in 2014, the top of the range compatible with its status as a AAA "Fitch wrote.

"However, based on net debt and if the loans were accounted EFSF (with a discount of 50%) as liquid assets, the debt would peak at just over 80% of GDP in 2014.

PPR reported Wednesday a very strong sales of its luxury brands in the third quarter, while its retail brands have suffered from the deterioration of the economic environment in France and southern Europe.

The group, which owns Gucci, Puma, Fnac and Redcats, saw sales grow by 8% to 3.86 billion euros, higher than the consensus of analysts polled by Reuters (3.8 billion).Organic growth stood at 7% instead of 5.4% expected.

Especially, the group surprised by organic growth well above the expectations in luxury (Gucci, Yves Saint Laurent, Bottega Veneta and Balenciaga), where it reached 25% (23% after the first half) instead of the anticipated 19% .

The only Gucci brand, which accounts for nearly 60% of operating profit of the group, grew by 21% (22% in first half).

The Chief Financial Officer, Jean-François Palus, said during a conference call that the dynamics remained equally strong in luxury in October and was confident for 2012.

In contrast, the performance degradation of Fnac and Redcats has accelerated.Sealed by the drop in consumption in France and Southern Europe, the distributor's sales of cultural products were down 4.2% on a comparable basis. Those of the cluster distance selling (La Redoute, Vertbaudet and Cyrillus) fell 5.6%.

PPR, which wants to focus on luxury and sports fashion by selling its retail brands, was forced, with the deterioration of access to credit due to the crisis, to postpone the sale of Redcats.

The group, which has designs on Brioni, continuing discussions with the Italian tailor, said Chief Financial Officer without elaborating.

The sporting goods company Puma, which released its figures on Tuesday reported a 10% increase in sales in the third quarter.

According to a "government source" quoted by AFP, the French government is considering "tough decisions" on aid to Greece and banks … but after the passage of the bailout by Germany. An encrypted connection that will boost the rumors.

There is something to speculate. While the French government Monday strongly denied any plan to bail out banks hexagonal, a government source quoted by AFP said Tuesday that the executive intends to take "tough decisions" for banks and assistance to Greece. Remains to be seen what these "tough decisions" and what the banks concerned.

"We must make tough decisions on Greece and the banks but we can not do it before that Germany has adopted Thursday the rescue plan," sources said the same source.The German parliament is to decide Thursday on expanding the envelope and skills of EFSF, the support fund for the euro area set up last year. German lawmakers should give the green light. Remains to be seen what would those "tough decisions" that can not be formally discussed before the decisive vote.

The vote of Germany, Europe's largest economy and biggest contributor to the fund with 200 billion euros of guarantees, should give a decisive impetus. While the implementation of this mechanism requires the approval of the rescue 17 members of the euro area and that some countries, like Slovakia, are still praying.

The president of the AMF considers that the situation in the markets is "very, very worrying." He said a collapse of the entire global economic system is to be feared. Jean-Pierre Jouyet said that "it is not in a better situation than in 2008."

The chairman of the Financial Markets Authority (AMF) Jean-Pierre Jouyet spoke Friday of "situation, very, very worrying" in the markets and expressed concern of a "risk of systemic crisis" able to dive all the world into recession.

"We are in a State of Crisis" with "before us, the risk of systemic crisis", that is to say a collapse of the entire global economic system, noted Mr. Jouyet, questioned France Inter.This is due to "a very high debt in Japan", the "U.S. imbalances that are extremely deep despite recovery plans that do not give great result" and, in Europe, "the sovereign debt crisis," he said former Secretary of State for European Affairs.

"We need urgent action at the international level," he said, hoping that "the Europeans, Americans and the International Monetary Fund (IMF) will at least get to make a shared". "This is expected by the markets," he said, "is to see a little clearer." "We are in a situation of a crisis of debt in 2008 was characterized by a rise in private debt, which today is characterized by a rise in public debt, government deficits and imbalances in all the world economies, "he summarized."It turns out that Europe is the epicenter of this crisis." "We're not in a better situation than in 2008," he warned.

Jean-Pierre Jouyet also found that the introduction of a tax on financial transactions, to which he was in favor, could worsen the current liquidity crisis in the euro area. "I am in favor of a tax on financial transactions" but "we must choose when it is made." But "what I said – and I take into consideration in my work – is that today, it will further increase the reluctance of investors, including Anglo-Saxon and American, to respect to the euro area, "said the president of the AMF.

After Paris and Berlin were in favor of such a tax in August, the summit of the major developed and emerging countries of the G20 in Cannes (South of France) should address the issue in early November.Britain and the United States were opposed to establishing such a mechanism. A transaction tax, such as those popularized by the economist James Tobin, is to take a very small percentage of financial flows ..

The small archipelago in the Atlantic Ocean would have hidden more than 1.67 billion euros of debt since 2008. This discovery increases the Portuguese public debt by 0.3 percentage points of GDP. View of Madeira Island off the coast of Portugal

Portuguese statistical authorities announced Friday they had discovered undeclared debts of the Autonomous Region of Madeira that increase the government deficit in Portugal to 1.11 billion euros from 2008 to 2010, and that of the 568 million année.Selon a Joint Statement of the Bank of Portugal (OTP) and the National Statistics Institute (INE), this is a "serious omission of information" detected after a report of the Court of Auditors the finances of this small archipelago in the Atlantic Ocean.

These debts represent an impact on the public debt estimated at 0.3 percentage points of GDP and involves an upward revision of the deficit in 2008 (+0.08) 2009 (0.03 points) and 2010 (+ 0.53 points), stated the Ine and OTP. According to latest official figures, the debt was late 2010 to 93% of GDP and the deficit to 9.1% of GDP. Debts for the current year had already been detected in the first quarterly assessment conducted by representatives of the European Union and International Monetary Fund as part of the aid plan of 78 billion euros granted in Portugal May

The Portuguese government had then decided to resort to extraordinary income in order to correct a skid overall budget of about EUR 2 billion and meet the deficit target to 5.9% of GDP this year."The evidence released today reveal a serious deficiency," responded the Ministry of Finance, pointing out that it is an "isolated case" and noting that the regional government of Madeira has already asked the Lisbon helps to develop its own financial recovery program.

The U.S. economy in the second quarter growth initially announced lower, weighed down by business inventories and exports despite the upward revision to consumer spending.

The second estimate published Friday by the Commerce Department, the gross domestic product (GDP) of the United States rose by 1.0% over the period April to June, against 1.3% in preliminary data.

Analysts had expected a growth rate revised to 1.1%.

"This is entirely consistent with what we expected and the slowdown was observed during the first half of the year.We expect some downward revision, which reflects the headwinds that the recovery is facing, "Judge Paul Ballew, Nationwide Insurance.

This figure revised down is mainly due to lower inventory accumulation by firms estimated initially. Companies saw their stocks increased $ 40.6 billion, against 49.6 billion according to preliminary figures, subtracting 0.23 percentage point growth rate.

GDP was also impacted by lower exports announced, with an increase of 3.1% against 6.0% in the first estimate.Imports rose 1.9% (revised from 1.3%), which has almost wiped out the contribution of foreign trade to growth, previously amounted to 0.58 percentage point.

"Net exports and stocks seem to be the big piece of this downward revision.Overall it's still consistent with a recovery very soft so these figures do not generate optimism. "

The bad news, however, have been offset by consumer spending, which reflected an increase of 0.4% (revised from 0.1%).

Final sales rose 1.2% against 1.1% in the first estimate and consensus of 1.0%, while business spending were revised up to 9.9% as against 6 3%.

The PCE price index rose 3.2% over the quarter (revised from 3.1%) after 3.9% in the first quarter. Economists surveyed had forecast 3.1% between April and JuneAs for the price index of basic ("core"), which excludes volatile items and is followed closely by the Federal Reserve, it reflects a slight lull on the inflation front with an increase of 2 , 1% (revised from 2.2%).

The Franco-German couple offer to suspend the structural funds to countries in the euro area does not reduce their deficits. Greece may well be deprived of more than 20 billion euros. The logo of the euro to the European Central Bank in Frankfurt.

French President Nicolas Sarkozy and German Chancellor Angela Merkel proposed Wednesday to suspend payment of structural funds and cohesion in the euro area countries unable to control their budget deficits. "In the future, payments from the Structural and Cohesion Funds should be suspended in the countries of the euro area that do not comply with the recommendations of the excessive deficit procedure," wrote the two heads of state in a letter to the President of the European Union, Herman Van Rompuy."These changes should be incorporated into new regulations for structural funds and cohesion that will be proposed for the next multiannual financial framework", ie from 2014, they continue in this letter, written at the end of the Franco German in Paris on Tuesday.

Created in the 1990s, the European Structural Funds are the main instrument of solidarity between Europeans but also for his detractors, a "bottomless pit" that engulfed wasted billions of euros. Three funds with a total of 347.4 billion euros for 2007-2013, allow the EU to grant financial aid to multiannual regional development traded between regions, Member States and Commission.The Cohesion Fund and the two structural funds, namely the European Regional Development Fund (ERDF) and the European Social Fund (ESF), over a third of the total budget of the EU.

Among the countries in the euro area, Portugal, Greece, Spain and Italy are among the first beneficiaries of these funds. Any part of Europe whose income (GDP) is less than 75% of the EU average is subsidized is an investment in the future. The European Commission, a total of 347 billion euros, or 35.7% of the total budget of the European Union, have been allocated for regional aid policy for the period 2007-2013, 49 billion per year.

The 27 EU states, the European Commission and European Parliament are engaged in difficult negotiations to secure the budget for the period 2014-2020 and the structural funds are in the sights of several European governments. Including Germany, which grows for several months, so far without success due to lack of consensus on the subject, so that structural funds are allocated under certain conditions. The Franco-German proposal follows the lead of Dutch Prime Minister Mark Rutte, who had pleaded Tuesday for sanctions against countries undisciplined budgetary matters.

If the Franco-German proposal was acted upon, the countries of the euro area with a high budget deficit as Portugal, Greece, Ireland and Italy could miss crucial European aid to improve of their infrastructure and regional development.For 2007-2013, Portugal has thus pocketing 21.5 billion euros from structural funds and cohesion, Greece 20.4 billion, Italy and Ireland 28.8 billion 901 million, according to Figures released by the Commission on its website.

European stock markets are expecting a strong signal on the governance of the euro area. German Chancellor has warned however that we should not expect the summit of spectacular announcements. President Nicolas Sarkozy meets with German Chancellor Angela Merkel Tuesday, August 16th at the Elysee Palace (both are here in Berlin July 20, 2011)

European shares opened slightly lower Tuesday, opting for caution before the Franco-German summit on the governance of the euro area. After three consecutive sessions of gains, Paris opened down 0.73%, 0.68% from London, Frankfurt 1.02%, Madrid and Milan by 0.65% to 0.28%. Monday, Paris won 0.78%, London 0.57%, 0.41% Frankfurt, Madrid 0.71% and 1.37% on the Swiss Exchange. New York has erased all its losses last week in garnering 1.90% for the Dow and 1.88% for the Nasdaq.

Global financial markets are also showing much more attentive Tuesday.Asian stock markets were the first very hesitant: Tokyo has ended up slightly from 0.23% after a session sawtooth and Sydney ended down slightly by 0.86%. Seoul, closed Monday, was an exception by closing up sharply from 4.83%.

All eyes are on the meeting between German Chancellor Angela Merkel and President Nicolas Sarkozy from 4:00 p.m. at the Elysee Palace in Paris. "The markets are expecting a very strong signal: Is there a pilot on the plane to govern the euro area? Will you finally speak with one voice in the Franco-German and stop to maintain the cacophony that lasts for months and madden investors? "asked a Paris-based analyst who requested anonymity.

But hopes could be quickly showered.Berlin has in fact warned that they should not expect miracles, especially not that the two largest economies in the euro zone agreed to set up Euro-bonds, which would be financially harmful to Germany .

"It seems that there is an acute attention paid to this appointment, and we believe that the margin for a big disappointment," warned analysts at MF Global. This meeting should ultimately focused on the governance of the euro area, following decisions taken by Heads of State and Government of the European end of July.

Officially, if the debt ceiling is not raised, the U.S. will fail, causing a global financial disaster. But in practice, the U.S. economy could continue to operate, at least in the short term. Explanations. View of the Capitol, seat of Congress.

And if the end of the world was ultimately not for next week? The White House has continued to repeat: if an agreement is not quickly find the Congress to raise the debt ceiling, then the U.S. will be in default on August 2. But that date could be arbitrary. After all, it would not be the first time that the disaster would be delayed.It was originally scheduled for March 31 and then to July 8 and finally to August 2 …

Some analysts also believe the government has enough to deal with some 23 billion dollars in social assistance for elderly and disabled due on August 3 and what redeem the $ 90 billion of treasury bonds reached expire on 4."In all projections, it appears they have a large cash reserve to cover their commitments," said Lou Crandall Reuters, economist at Wrightson ICAP.

Barclays Capital, for its part that the Treasury may find itself short of cash on August 10 only days scheduled payment of $ 8.5 billion in Social Security, which oversees welfare programs.

Wrightson and Jefferies' offices for their estimate that the U.S. really start to risk default on August 15, when the government will pay 41 billion, including $ 30 billion of debt interest.

John Carney CNBC a hypothesis still more bold. He said the United States can continue to operate for another 18 months if the ceiling is not raised on August 2.His reasoning is this: the U.S. government has a bank account at the Fed, which varies depending on the deposits and withdrawals. Friday, the reserve of cash included $ 77 billion. Withdrawals represent all government spending such as salaries of civil servants, NASA, the interest on the debt while deposits are powered by various tax revenues, profits made by the Fed itself, but also largely by public bond issues. But the debt cap applies only to this last source of financing, by prohibiting the government to issue more than good.

For John Carney, nothing prevents the U.S. government to continue to write checks to its employees and its creditors, even to be discovered, "as are millions of Americans."As a bank with his wealthy clients, the Fed will not refuse it discovered the American state and still honor his checks. Failure to do so "would defeat its dual mandate of full employment and price stability." To credit the beneficiary's account, "the Fed can either print money or sell some of these assets (especially holds 1.6 trillion worth of Treasury bills)," says Felix Salmon of Reuters. In any case, the overdraft would not be technically considered public debt and therefore not subject to the statutory ceiling. Best of all, "having an overdraft facility would only strengthen, not threaten, the triple A of the United States," said Salmon. Conclusion: "The Fed can not run out of money, said John Carney.It can only run out of money if Geithner and Obama decide to stop to draw checks to meet their obligations. "

One could certainly argue that even if it appears that the U.S. can continue to operate without raising the ceiling, no one monitors the reaction of international markets and rating agencies. If Congress fails to reach an agreement and that the Treasury is not empowered to borrow on the markets, it is likely that the United States lose their triple A, which strongly destabilize not only the U.S. economy but also global. Except now it seems that the U.S. will lose it anyway, even if a plan is adopted before August 2. According to the Washington financial blog's blog, as well as the proposal by Democrat Harry Reid than the Republican John Boehner are perceived as insufficient to address the problem of U.S. debt.

What is certain is that the use of an open can not solve the short to medium term the debt problem. However, this might help avoid a financial earthquake on August 3 in case the Congress failed once again to find a compromise to raise the ceiling.

Deutsche Bank reported Tuesday a quarterly profit before tax lower than expected, following the presentation of its new management team.

Germany's biggest bank posted a profit before tax up 17% in the second quarter to 1.8 billion euros, while analysts polled by Reuters were expecting $ 1.97 billion.

Its net banking income came out unchanged at 1.2 billion euros.

The bank expects to achieve its goal of a 2011 profit before tax of EUR 10 billion, but that it could miss its target on its corporate finance, due to the debt crisis in Europe.

Deutsche Bank announced Monday that a duo of Anshu Jain and Jürgen Fitschen be succeeded in May 2012 at the CEO, Josef Ackermann.

Anshu Jain, 48, heads the investment bank Deutsche Bank while Jürgen Fitschen, 62, driver's German operations of the facility.