The Spanish Treasury has managed to issue 2.5 billion euros of debt in three to four years but at interest rates much higher than in April .

Around 1:45 p.m., Paris lost 1.3% to 3,008.93, London 1.68%, 1.06% Frankfurt, Milan and Madrid 2.45% 2.37%. The Euro Stoxx 50 index of large values ​​of the euro area loose 1.63%.

The German government bond (Bund) and 10 years take an aversion to risky assets and its yield fell to a new record low as 1.43%.

The euro fell below $ 1.27 and is trading around 1.2668.

Barrel of Brent North Sea gives up 71 cents to 109.05 dollars.

* However, banking stocks suffer from persistent market fears about the financial position of the peripheral countries of the euro area, the performance of Spanish debt in ten years being spent at above 6% for the first time since the start of the year.

BNP PARIBAS leaves 3.55%, largest drop in the CAC 40, followed by Crédit Agricole (-3.28%) and SOCIETE GENERALE (-2.5%). The index Stoxx European banking yields 0.93%. ACC off, DEXIA (-11.54%) shows the largest decrease of the SBF 120 and Natixis were down 2.43%.

In addition, Citigroup cut its price targets on several French banking stocks.

* ENERGY SECTOR's is up at European level (+1.6%) while VESTAS WIND SYSTEMS jumped 18.49%, two Chinese groups planning to launch a takeover offer for the Danish manufacturer wind turbine, the newspaper Jyllands-Posten.

Technip (3.83%) signed the largest increase in the CAC 40, MAUREL ET PROM was up 2.76%, 2.55% of CGG VERITAS and TOTAL of 1.96%.

GDF SUEZ wins 3.06%. The group announced the acquisition of 30% International Power (0.73%) that did not already own for 6.8 billion pounds (8.3 billion euros). He announced in the wake that it was within its target of recurring net profit CEOs for 2012 at between 3.7 and 4.2 billion euros, against 3.5 to 4 billion previously.

* DOLLAR VALUES are oriented correctly, the euro had hit a two-month low against the greenback, investors reducing their exposure to the euro area. EADS rose 2.7%, 1.29% and STMICROELECTRONICS ZODIAC AEROSPACE of 3.42% (largest increase in the SBF 120).

* Illustrating the continuing investor concerns for the situation in Europe, defensive stocks are sought. Air Liquide wins 1.96%, 1.5% or Pernod Ricard ESSILOR 1.38%.

* RENAUL PSA and win respectively 1.99% and 1.34%. According to trade publication The Letter VN Auto K7, orders for new cars in France saw their slow decline in March.

* INTERNATIONAL GECI remains suspended until Tuesday. The aerospace engineering company said it had been informed of the lapse of a memorandum of agreement to finance the project of French aircraft Skylander, and said it was exploring new ways of financing.

The project Skylander is grossly under-funded in its current setup and would require tens of millions of euros of additional investment, according to an expert report that Reuters was able to consult.

Contrary to the predictions of earlier this year by Christian Noyer, Governor of the Banque de France, inflation does not decline in France. It remains even at a high level. In March, consumer prices rose 0.8% on month (after +0.4% in February), and 2.3% year on year. Normally this would result in a revaluation of rates of pay A booklet of 25 basis points, according to mathematical formula which is based on determining the rate of investment preferred by the French – 93% have.

The law provides that changes in rates of Livret come into force on February 1 and August 1. But large changes in inflation, such as increases currently observed may also result in rate changes on May 1 and November 1. In short: compensation should automatically go from 2.25% currently to 2.50% in a fortnight. There is a good chance they will not happen.

The government can indeed block the automatic adjustment of the booklet A. He has already done in the past, particularly to address the declining rate as in August 2009 – at that time, the rate had dropped 1.75% to 1.25%, while the application of the rule would justify a reduction to 0.25%. But at election time, the opposite is true: the government blocks the upward revaluation. This is what happened last February, while inflation already justified a rate increase to 2.50%.  

Increase the rate by 0.25 A booklet would cost 500 million euros effect (the total amount outstanding of 60 million accounts reached 223 billion euros) to the State, 700 million even if one adds the blue books. While the booklet A is a popular product, but it could still be perceived as a gift to investors. So the Livret A rate is likely to remain at 2.25%, at least until August 1.

"This level of rate barely covers inflation. At The booklet does not generate more over-compensation for savers, analysis Gommard Benedict, CEO of Cortal Consors. It is a product that preserves the purchasing power but which offers no more. " However, this low attractiveness of the booklet A should not lead to a massive outflow, estimated the specialist savings and online brokerage. Indeed, the booklet A "is a reassuring product in an increasingly anxiety-provoking," he concludes.

Difficult to see clearly in the statistics of China's foreign trade. After recording a record trade deficit in February, the Middle Kingdom has a surplus of 5.3 billion in March.

Even if Chinese firms continue to suffer from the debt crisis in Europe and a hesitant recovery in the U.S., exports of the second world economy grew by 8.9% yoy. Not so bad. In March, sales abroad of China totaled 165.66 billion dollars. For their part, imports reached 160.31 billion dollars, up 5.3% year on year.  

"The surplus in March is quite low so that the deterioration occurred in foreign markets since last year has continued to affect Chinese exports," he told AFP Liao Qun, China economist for Citi Bank International. This return to a surplus as a surprise to fifteen analysts polled by Dow Jones agency, who on average expected a deficit of $ 3.2 billion. Indeed, the latter provided stronger imports. But they have slowed in March, mechanically inflating the trade balance.

"Domestic demand continues to slow," said Qu Hongbin, chief China economist for HSBC. However, outside of this effect that disrupts the development of the trade balance, China remains competitive. In 2012, the projected growth in foreign trade of the world's leading exporter is about 10%. This remains higher than expected growth in world trade (6%).

While trade with the EU skate, China has many other growth. In the first quarter, its trade with the United States and Southeast Asia grew by 9.3%. Bilateral trade with Russia, meanwhile, has jumped 33% year on year.

Finally, the slower growth of foreign trade does not affect all regions of China in the same way, while some inland provinces are beginning to catch up on the coastal provinces, which until now focused exporting companies . While exports of Guangdong (south), which ranks first provinces to trade with abroad, rose only 5.4% in the first quarter, those of Chongqing (Southwest) and Henan (center) have respectively increased by 150% and 140%, according to Customs.

The strength of exports is vital for China must maintain a solid growth to contain unemployment and social discontent. Friday the country should publish the number of growth for the first quarter. Analysts polled by the business daily Diyi Caijing Ribao (China Business News), GDP growth should be limited to 8.4%, against 8.9% for the fourth quarter 2011 and 9.2% for all last year.

In Paris, around 9:15, the CAC 40 gained 0.19% to 3,479 points. The DAX 30 is 0.3% and the FTSE ahead 0.20%. The Eurostoxx 50 is 0.22%.

Values, EADS gained 1.75%. The German government is preparing to buy 12% stake in planemaker taking over the holdings of Daimler and several private banks, it was learned Friday from the German government source.

BOLLORÉ gained 2.7% after announcing a 19% increase in operating profit.

BT gained 4.8%. The British telecoms operator plans to pay two billion pounds into its pension fund as part of a new plan more advantageous than nine years.

The French government raised its economic growth forecast for 2012 to 0.7%, against 0.5% previously, and was lowered to 1.75% for 2013, against 2.0%, said Minister of Economy Baroin.

This announcement follows the revision by the National Institute of Statistics and Economic Studies (INSEE), its growth forecast to 0% in the first quarter and 0.2% in the second quarter of 2012.

Moreover, the overall business climate in France has improved significantly in March, to 95 points, an increase of 4 points, according to INSEE. 

In the U.S., the indicator of home sales in the nine will allow investors to refine their expectations of recovery in the industry and the economy in general.

A CSA decision was expected imminently as part of a call for applications for the granting of new frequencies in high definition on TNT for which thirty candidates were ; auditioned from March 5 to 14.

"Due to circumstances at this time of tragedy that all families and our country, the CSA is associated with this sentence and defer its decision regarding the selection of DTT channels", Reuters said a spokesman.

Because of concerns about the strength of the European banking system in the context of debt crisis in the euro area and more stringent prudential standards, European banks have difficulty ; refinance.

Tensions on bank liquidity were such as the European Central Bank (ECB) had to intervene twice in December and late February, to inject more than one.000 billion euros in loans to three years (LTRO) to help European banks and avoid a credit crunch.

"The world has changed considerably and perhaps even more on the liquidity of capital (.) The great lesson of the crisis is that liquidity is now chè re and much rarer, "said Frederic Oudéa at a conference at the European American Press Club in Paris.

"The interbank market, direct loans become scarce," he added.

In Europe, other bank executives emphasize that the interbank market has not returned to normal operation despite the extraordinary intervention of the ECB. 

"The liquidity is still abundant despite the funds injected by the ECB," has said Federico Ghizzoni, the Chief of the Italian bank UniCredit at a conference in Rome . "It is difficult to find financing medium and long term."

"SAFETY NET"

"The LTRO (ECB, Ed), this is a safety net (…) which allows us to give where we must pay without fear of tomorrow," he For its part, commented the head of SocGen.

Asked about the debt swap Greek and the onset of CDS, the contracts that protect an investor against default risk, Frédéric Oudéa, who is also the pre President of the French Banking Federation (FBF) found that the 'credit-default swaps "were not a" significant issue "for banks. 

"The problem of default, the organization's default, this is not so much the CDS (credit default swaps, Ed) which, after all the numbers floating around, not rep not feel a significant issue for any bank and financial system (…) the problem of financing the Greek system, "reported the director general of SocGen.

"All these figures were provided by banks as part of the exercise stress tests (stress tests) of EBA (European Banking Authority, Ed)," Has he added. 

The International Swaps and Derivatives Association, the organization brings together the major players in the derivatives markets, decided Friday by activating a measure requiring private creditors to take losses on their sovereign debt, Greece had triggered the payment of CDS.

The agency, however, held that payment of these CDS, estimated at some $ 3 billion, would have no significant impact on markets.

In its program for the presidential election, the Socialist candidate proposes to separate the activities of deposits and capital market activities of French banks, like of what was decided at the end of last year the UK to reform its banking system after the crisis. 

If the authorities and French banks reject outright the idea of ​​separating banking, financial analysts have begun to incorporate this assumption into their projections of results banks, and taking note of polls giving the favorite Socialist candidate in the polls for the presidential election.

Francois Hollande, who poses as "adversary" of finance, also plans to increase 15% taxation on the profits of banks and create a tax on all financial transactions. 

The financial intermediary KBW estimated for example that, cumulatively, the three reforms envisaged by Francois Hollande could reduce 10% average annual results for French banking groups, BNP Paribas, Credit Agricole, Natixis and Societe Generale, or a total cost of 1.7 billion euros.

"These measures are a little confused from our point of view and with such worries, if the rally continues, I doubt that French banks is the preferred choice of investors," said Marco Bruzzo, Chief Operating Officer of Mirabaud Gestion. 

"The banks say that the separation of no use, it's stupid, but it would be interesting to know their real arguments against this reform," said an analyst based in Paris who did not want to be named.

"My feeling is that banks do not have that much," he says.

THREAT ON THE STOCK MARKET REBOUND

The European Commission has now put in place in November a working group on the structure of banks. This group will discuss in particular the question of the separation of banking activities and its report is expected later this year.

To justify their opposition to separation, the French bankers and the Bank of France to retreat behind the recent failures of the British bank Northern Rock and Lehman Brothers.

Analysts agree the coup use conferences to present the results of the banks to question their leaders on the issue and the consequences of a separation of banking activities already undertaken e across the Channel where the impact is estimated between 3.5 and 5 billion pounds (about 4 to 9.5 billion euros). 

"A movement towards this type of system (UK Ed) would certainly have a significant impact on profitability," said Marie-Pierre Peillon, director of financial analysis and non-financial at Groupama Asset Management .

Analysts also believe that the context of presidential campaign and uncertainty about the election's outcome will affect the share price of French banks, already engaged in strengthening their plans capital to meet new prudential standards and restructure their operations in the banking and investment banking.

"I think the performance (market, Ed) French banks will be capped as we will not know the outcome of presidential elections," remarked one analyst in Paris. "To go higher, you need better visibility."

Slaughtered on the stock market last year due to the exacerbation of the financial crisis, which forced the bank Dexia to dismantling, the French bank stocks have benefited from spurts of hope on the rescue of Greece and exceptional liquidity provided by the European Central Bank to bounce.

SocGen shows a gain of over 30% since the beginning of the year after losing nearly 60% of its value in 2011.

BNP Paribas will open Wednesday the ball bank results in France, followed the next day by Societe Generale.

Analysts polled by Reuters expect the drafting of an average 63% drop in net income for the BNP in the fourth quarter and 78% for SocGen. 

Credit Agricole and Natixis publish their results on Feb. 23. Credit Agricole SA warned in December that it would be a loss for the year 2011 and he would come to 2.5 billion euros of writedowns in its accounts of the fourth quarter.

In Europe, Deutsche Bank and Credit Suisse have surprised markets by posting accounts into the red in the fourth quarter. and

At 9:03, the CAC 40 index advance 1.37% to 2935.01 points after falling 3.41% yesterday.

The Milan Stock Exchange gained 1.35% (-4.74% Monday), the London 0.83% (-2.62% yesterday) and the place of Frankfurt 1.1% (-3.35% Monday ).

"The market remains concerned about the implementation of these measures (austerity and anti-crisis), which are not detailed enough to be credible," said Emmanuel Cau, strategist at JPMorgan Cazenove,.

In Paris the CAC-40 ended on a loss of 1.78% to 3,010.29, surpassing those of his peers.