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A fault of Greece have unpredictable consequences, including the risk that the debt crisis in the euro area spread to other countries, said Commission President José Manuel Barroso, quoted in the German daily Bild.

Discussions between Athens and the inspectors of the mission the International Monetary Fund (IMF)-European Union (EU)-European Central Bank (ECB) continued for a payment of a new tranche under the aid plan international countries.

Greece could be short of money in the month of November without this slice of eight billion euros.

"If we leave Greece, there are more chances for the crisis is spreading to other countries," said José Manuel Barroso in an interview to be published by Bild on Monday.

The President of the European Commission stressed that no one had ever experienced a bankruptcy of a member state of the euro area.

"We have entered uncharted territory and we are talking of solutions that have never been tested before."

Didier Reynders, Belgian Finance Minister, also made comments rather alarmist, saying that Greece should be helped to prevent financial contagion across what had happened during the collapse of Lehman Brothers in any late summer 2008.

"If we do not solve the Greek problem, if there is a danger of contagion to Spain and Italy, while the worst case scenario could materialize," he said in an interview published Saturday by the Greek magazine Proto.

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.

In announcing the end of September it moves ahead in the German capital, the French president had indicated he would discuss with the Chancellor "ways and means to accelerate economic integration in the euro area and implement as soon as possible" the new aid plan for Greece approved July 21 by the Europeans.

DEBT REDUCTION GREEK underestimated DIT SCHÄUBLE

Wolfgang Schäuble, German Finance Minister, said that Europe may have underestimated the amount of debt should be reduced Greek summit on 21 July.

The summit, which established the principle of a second aid plan for Greece and that of an extension of the powers of EFSF, provides that private creditors agree to a 21% discount on their debt Greek.

"It is possible that, in July, we held a level of debt reduction is too low," said Wolfgang Schäuble, quoted by the newspaper Frankfurter Allgemeine Sonntagszeitung.

Jean-Claude Juncker, President of the Eurogroup, said a few days ago that the finance ministers of the euro area were reviewing the extent of private sector involvement in the second bailout of Greece.

"There are significant risks to the crisis deepens and widens," said Wolfgang Schäuble.

Greece is at a crossroads and must implement "structural reforms much more stringent" to avoid failure, said the head of the IMF mission in Greece, Poul Thomsen, quoted by the German Sunday newspaper Welt am Sonntag .

"Greece is at a crossroads," said Thomsen. "It is clear that the program will not work if the authorities do not take a path that requires structural reforms much harder than we've seen so far."

"Greece is two steps forward, one back," said Thomsen."The Greek government has much of the most difficult changes are to come."

About the austerity measures, Didier Reynders warned however that we should not go too far: "We do not want a cure that will kill Greece."

Greek Socialist Prime Minister George Papandreou could propose the formation of a unity government with the opposition to try out his country from the financial crisis, a local newspaper reported Saturday.

The government has however denied reports published by the financial daily Imerisia which raises the possibility of a resignation of Papandreou order to reach a political consensus and bring together a large majority in parliament supporting a coalition government.

Despite the criticism that accommodate its proposal, the new director of the IMF persists and signs in an interview with a German weekly. IMF Executive Director Christine Lagarde at a news conference in Washington July 6, 2011

Executive Director of the International Monetary Fund, Christine Lagarde, repeated in an interview published Monday in Germany criticized the application of a European bank recapitalization.

"We think in general it is necessary to recapitalize European banks so that they are strong enough to withstand the risks associated with the debt crisis and low growth," she told the weekly Der Spiegel.

"It is necessary to prevent contagion" problems, she said.

Ms. Lagarde was prompted indignant reactions in Europe already calling a few days ago to strengthen urgently the equity of European banks.

The boss of the IMF, when it was French Finance Minister has criticized Germany's dependence on exports and inadequate intake, also called Berlin in this interview to "stimulate domestic demand, it would be good for the German economy and neighboring countries. "

Lagarde finally claims that "the whole idea (behind the introduction of fiscal rules of thumb) is good," but felt that the inclusion in the constitution limits of public debt "must be understood as a signal to financial markets. "

Germany and France have called on countries in the euro area to adopt such rules of thumb, and Spain responded to the call, although this initiative has been criticized by the President of the European Union Herman Van Rompuy.

European shares ended sharply lower Friday, ending mostly to four sessions of consecutive increase after the announcement of a halt in job creation in the United States in August.

The CAC 40 index fell 3.59% to 3148.53 points. The benchmark index of the Paris, however, who managed to stay on top of an important support points in 3136, managed to record a gain of 1.97% for the week.

Other major European markets also stumbled, leaving London and Milan respectively 2.34% and 3.89%.Frankfurt, who had already lost ground yesterday, yielded 3.36%.

For the week, the London was up 3.16% while its German counterpart has remained stable (0.02%).

"There are fears a 'double dip' (relapse), several indicators have turned to orange or red. It's like 'take the cash and run' on the market," said Fabrice Cousté, CEO of CMC Markets France, highlighting the rapid exit of investors from stocks to safe havens.

The Swiss franc and back ground on the European single currency within 1.12 franc per euro (1.1174 francs to 6:13 p.m.), 1.13 franc against most of the day.Similarly, gold rose 2.82% to 1,875.96 dollars per ounce.

SYSTEMIC CRISIS

Another illustration of the renewed risk aversion of investors, the performance of the German government bond (Bund) and 10 years fell below 2% in the wake of the publication of U.S. employment figures.

"We will turn to the Fed and its special meeting two days. But the Fed is out of breath and lack of ammunition.We should not have EQ3, but probably something more technical, "said Fabrice Cousté.

The latter warns that in the meantime the markets should still live on hard times even if investment opportunities should arise in securities of groups able to significantly increase their prices or capacity of important innovations.

Friday, fears of relapse into recession in developed countries have particularly affected the cyclicals and financials.

As for banks, Alpha Bank has dropped 9.26%, Barclays 8.4% and 7.38% Credit Agricole. The automotive industry, PSA fell 5.99%, 5.17% of Volkswagen and Fiat of 4.98%.

"The market values ​​have a relapse into recession scenario.Only a systemic crisis as in 2008 is not yet 'pricée ", explains Benoît Peloille, equity strategist at Natixis.

"However, central banks have just replaced the emergency measures that had helped break the stalemate in the interbank market resulting from the collapse of Lehman Brothers," he adds.

Lafarge announced on Wednesday the sale to the Australian Boral its stake in their joint venture equally in the plaster in Asia worth 429 million euros as part of its debt.

The world cement continues its withdrawal from the plaster, the smallest of its three businesses, in February after setting an ambitious target of over two billion euros of debt, half by reducing the dividend, and for other by a decline in investment and new divestitures.

Final completion of the sale of its share of Lafarge Boral Gypsum Asia (LBGA) expected before the end of the year, Lafarge said in a statement.

The price of EUR 429 million represents the value from Lafarge LBGA.Excluding debt and minority interests, the price stood at 380 million euros.

Founded in 2000, LBGA conducted last year in sales attributable to the group of 181 million euros and EBITDA of 31 million.

Lafarge had already announced July 22 the sale of its gypsum in Australia in its German competitor Knauf for a net worth of 120 million euros, ten days after entering into exclusive negotiations with the Belgian Etex plaster to give up his European and South America, for a net amount of 850 million euros.

With these assignments, which follow the cement and concrete assets in the United States announced in May, Lafarge will far exceed the target of disinvestment of 750 million euros it has set for 2011.

The group's debt, inherited largely from the acquisition of the Egyptian Orascom in 2008 reached 14.3 billion euros at the end of June.

Moody's announced on August 5 lower the debt rating of Lafarge Cement in the speculative grade, five months after a similar decision by the Standard & Poor's.

Baroin and Valerie Pécresse have one week to make proposals to Nicolas Sarkozy to secure the goal of deficit reduction. Exec. UTIF arbitration will make its August 24. The budget minister has already announced that tax loopholes will be deleted. Baroin was appointed Minister of Finance and Econo Wednesday, June 29, 2011. He was replaced by Valerie Pécresse Budget.

Ministers Baroin (Economics) and Valérie Pécresse (Budget) will have to be Nicolas Sarkozy proposals to ensure compliance with the goals of deficit reduction that will be subject to "final decisions" on August 24, announced the Elysee Wednesday. At a meeting convened at the Elysee Palace, Sarkozy recalled that France's commitments on this issue "are intangible and will be required regardless of changing economic conditions."

Proposals requested from Mr.Baroin and Mrs. Pécresse to ensure compliance will be first reviewed by Nicolas Sarkozy and François Fillon August 17 and then the "final decisions will be made August 24" at a meeting between the four of them, the statement of the Presidency. The meeting on Wednesday, August 24 will take place after the Council of Ministers of the season, on the morning of that day.

"This will be the day of decisions, actions to achieve these objectives (public deficit, ed), regardless of the impact of global uncertainties, the announcement of the deterioration of the American note by Standard and Poor's (…) the volatility of markets, "said Baroin told reporters after the crisis meeting for which MM. Sarkozy and Fillon have interrupted their holidays.The French government has pledged to reduce its public deficit, which amounts to 5.7% of Gross Domestic Product (GDP) this year to 4.6% next year, and 3% in 2013.

Speaking of the objectives of reducing public deficits, he added, "the intangible that is what set the budget for the year 2011 (…) which is fixed under the law for triennial 2012 perspective, these are the objectives of deficits that will form the matrix of measures that we will have to make. "

Valérie Pécresse has in turn announced that tax loopholes would be eliminated, reaffirming the possibility of an "extra effort" to keep the financial commitment of France, in an interview on BFM TV. "We will remove tax loopholes (…) because we will not raise taxes," said budget minister without specifying what niches were covered.Niches, she said, are "tax exemptions sometimes justified" and "can be very inefficient." "We have already pledged to remove 3 billion euros in 2012 (…), tax loopholes for perhaps he will go the extra mile," added the minister.

By the way Nicolas Sarkozy again called the gathering "beyond party lines" in order to restore the balance of public finances, the statement said. An allusion to the refusal of the PS to vote the "golden rule" which the Head of State wishes to inclusion in the Constitution. For this he needs the votes of 3/5èmes Parliament meeting in Congress.

The rating agency believes that the new aid package to Greece means a credit event of partial default on long-term debt of the country. The offices of the rating agency Fitch in New York.

Fitch Ratings has taken the first. Following the announcement of the bailout European Greece, Franco-rating agency in New York said Friday that it would put the note in default part of the country.

The agency, which considers "important" and positive "the agreement reached by the countries of the euro area to hold the debt crisis shaking the monetary union, says that Athens will default on its old bonds, according to its criteria . In effect the new rescue plan involves a contribution from private creditors, which amends the original terms of their loans.

A new note will then be attributed to the Greek sovereign debt, but probably in the bottom of the speculative grade by Fitch Ratings.

Wall Street opened lower, as expected, affected by sovereign debt problems which persist in Europe and the United States.

In early trade, the Dow Jones lost 0.69% (86.43 points) to 12,393.30, the S & P 500, wider, yielding 0.59% (7.72 points) to 1308.42 and the Nasdaq composite fell by 0.56% (15.73 points) to 2774.07.

"There is a perfect storm at the macroeconomic level, with no agreement on debt and here the problems that still persist in Europe, and the market looking these things is pretty anxious," said Oliver Pursche, president of Cary Goldberg Financial Services, near New York.

A few days before the deadline for reaching agreement on the budget and debt, no progress was made this weekend on the subject, and no meeting is scheduled at the White House on Monday .

The rating agency Moody's suggested Monday the United States than simply eliminating the ceiling on the national debt in order to reduce uncertainty for holders of sovereign bonds.

The wait for a good season of results, however, could support the market, as have those of last week Google and JP Morgan Chase.

News Corp. slipped 2.49% in the wake of the wiretapping scandal blamed on News of the World.

IBM gained 0.44% while it must publish its quarterly results after-hours trading, opening the show a series of results of many technology companies this week, including Yahoo and Apple Tuesday, Intel and Microsoft Wednesday Thursday.

French industrial production rose 2.0% in May after two months of decline due mainly to the impact of the earthquake and tsunami in Japan, a rebound well above expectations reassuring when the confidence of heads of business declines.

Manufacturing output, which is to say, but including non-energy food, rose 1.5%, state statistics released Monday by INSEE.

Twenty economists surveyed by Reuters on average expected a 0.5% increase in industrial production, and their estimates ranged from -0.2% to 1.0%.

The decline in industrial production in April, initially amounted to 0.3%, was revised to -0.5% and the increase in manufacturing output to 0.1% against 0.2% last month announced .In March, industrial production fell by 0.8% as manufacturing.

This decrease was notably driven by disruptions in the supply chain of some sectors caused by the disaster of March 11 in Japan and their impact on nuclear power plant in Fukushima.

Disturbances that seem to gradually fade away: in the car, particularly affected, the production increased by 2.5% in May after falling 4.6% in March and 2.6% in April.

The detailed statistics in May also showed a rebound of 2.3% of the production of electrical, electronic and computer, and 1.4% in other industries, which include textiles and leather (1.3%) , chemicals (+0.3%) or plastics (+2.2%).

POSITIVE CONTRIBUTION TO THE 2ND QUARTER

Energy production has amplified this trend, increasing by 5.7% in May while she was down 4.3% in April, with rising temperatures.

French industry and follows the same trajectory as the German: the other side of the Rhine, the business sector grew by 1.2% in May after falling 0.8% in April, a bounce him also significantly greater than anticipated.

The Minister of Economy, Baroin, welcomed the figure of French industry, saying in a statement that it "testifies to the strength of economic recovery in France."He reiterated in the wake growth forecast of 2% of the government for all of 2011.

The improvement which has benefited the industry in May, however, could be short-lived if we are to believe the latest surveys of business leaders.

PMI purchasing managers in the industry has declined in June to return to its lowest level since August 2009 and the business climate indicator for the Bank of France declined by four points.

The contribution of industry to growth in the second quarter should still be positive.

"The carry-over of industrial production for the second quarter was 0.4% a quarter over quarter in May," said Frédérique Cerisier, economist at BNP Paribas in a research note."In manufacturing, the achievements reached 0.8% after 3.3% in the first quarter."

Parallel to the industrial sector, construction activity fell 1.0% in May after rising 1.3% the previous month. It was up 3.3% on the quarter compared to the previous three months.

The U.S. economy has created very few jobs in June and the unemployment rate has increased, showering the hopes of those who think see it confirmed the economic recovery of the United States.

Last month, 18,000 non-agricultural jobs were created, according to official statistics released Friday by the Labor Department. Economists on average had forecast 90,000 jobs created.

The labor market has experienced growth in June, the slowest since September 2010, when 29,000 jobs disappeared.

"This indicates that the sluggish economy continues.Revenue growth is marginal and there is no evidence so dynamic, "said Pierre Ellis, an analyst at Decision Economics in New York.

The news has a bitter taste for the markets after Thursday's hope born of good numbers of private sector employment and jobless.

These figures are from their publication had a significant impact on the markets, especially in the course of the euro.

Futures contracts on U.S. indices fell sharply, and over Treasuries rose.

A 9.2%, while analysts expected a rate unchanged from one month to the other 9.1%, unemployment reached its highest level since 9.4% in December 2010.

RUDE COUP FOR OBAMA

The Labor Department also revised down figures for April and May, which now show 44,000 fewer jobs created than originally announced.

The only private sector created 57,000 jobs in June, and contributes to the overall monthly increase since the public has in turn eliminated 39,000 jobs.

Economic activity in the first six months of the year was tempered by higher raw material prices and supply chain disruptions caused by the earthquake of March 11 in Japan.

These numbers are a harsh blow to the government of Barack Obama, who tries to revive the economy to reduce unemployment, which affects 14.1 million Americans.

Just to absorb new entrants into the labor market would require between 125,000 and 150,000 jobs created per month.

And it is difficult to expect the Federal Reserve to lend a cup since it was completed last week its second program of quantitative easing, which has passed through the purchase of $ 600 billion of bonds.

The working week fell to 34.3 hours on average, against 34.4 hours.Employers reluctant to work more in view of the uncertainty surrounding the recovery.

The average hourly wage fell by a penny, a sign that wage inflation is not a real problem.

U.S. stocks finished lower Thursday after another earthquake in Japan.