The euro retreated against the dollar after the seven-week high hit the previous day in the wake of the Brussels agreement on the management of the debt crisis.

In the bond market, the Italian bond yield to 10 years has exceeded 6% after the award of the Treasury, while the German Bund futures cut their losses.

Brent crude dropped below the threshold of $ 110 and U.S. crude has returned close to 92 dollars.

Inflation reached 2.5% in August, is already well above the objective of the ECB, whose primary mission is to maintain price inflation slightly below 2%.

Economists polled by Reuters were expecting a figure of 2.5% in September as in August. However, they believe that inflation will fall soon because of the economic downturn.

"It's not a good figure, but I do not panic.That said, I think these figures imply that the ECB will not lower interest rates next week, "he tempered Martin Van Vliet, economist at ING, who said that inflation will decline in coming months because of lower oil prices and supply.

Markets anticipated more rate cuts key ECB, in support of the European economy and to offset the fiscal restraint measures introduced by most European countries.

The investment bank JPMorgan said last week anticipating a 50 basis point ECB rate to 1.0%.

According to a survey this week by Reuters, 56 of 76 economists surveyed felt that the rates will be unchanged at the monetary policy meeting in October, which will be the last of the ECB President Jean-Claude Trichet.

However they planned a rate cut in early 2012.

THAT WILL LOWER RATES?

After raising rates twice this year, the ECB changed its attitude at the September meeting and opened the door to future cuts.

According to many economists, it would be the next President of the ECB, Italian, Mario Draghi, Jean-Claude Trichet decides to lower the house money before taking office.

They argue that if Mario Draghi had to take such action in its first monetary policy meeting in November, it might then be portrayed as a supporter of lower rates.

This would imply, however, that Jean-Claude Trichet left as the last measure of his eight-year term rate cuts in a context of high inflation: such a decision contrary to fundamental principles of the ECB, would be enough to ruffle the supporters of the 'budgetary orthodoxy.

The euro area may therefore have to await further signs of a slowdown, or a decline in inflation, to get a breath of fresh air in the form of lower rates. However, such signals may soon appear.

"The slowdown has driven down commodity prices.Therefore, we should observe a slowing of inflation in energy prices, which was the main driver of core inflation in recent months, "warned Clemente De Lucia, an economist at BNP Paribas.

It must have the meeting "last chance". However, on Tuesday in Brussels, the European Ministers of Agriculture have failed to agree on the future of food aid to the poor, previously levied on agricultural funds. Six countries of the European Union (EU) refused to hold it in the state, saying its operation denatured for many years.Associations, including the Red Cross and Restos du Coeur in France, fear serious consequences, which could be felt in 2012.

What is the European food aid?

In 1987, in the heart of the cold winter that pushed Coluche to open the "Restos du Coeur", the European Commission created the European program of aid to the poor (PEAD). Backed by the Common Agricultural Policy (CAP), he plans to give to charity, today nearly 240 – the agricultural surplus of the member countries, then redistributed to the poor. Nineteen of the 27 EU states benefit now headed by Italy, Poland and France, for the preparation of some 13 million meals.

Since 1995, the surplus stocks are supplemented by a budget that allows you to run the program despite the fall in surplus.Between 1988 and 2008, its budget has risen from 97 to 300 million euros, reaching 500 million in 2009.

Why is the program being called into question today?

The current debate has in fact emerged in 2008. That year, "EU Commissioner has proposed to give a stronger legal basis to support plan by assigning two objectives: to reduce farm inventories, but also contribute to food security of the poor, with a social dimension" , said Nadège Chambon, researcher expert on the CAP for the think tank "Notre Europe". With this new legal base, the European Commission would have any legitimacy to buy food in the absence of surplus, or to expand the range of products supplied.

But the refusal of a handful of countries, including Germany, buried the project. These states were opposed to the feeding program is funded by the EU budget.In 2010, the current Commissioner for Agriculture, Dacian Ciolos, submitted an amended version. "It would increase the share of the envelopes of the EU, but also to open the co-financing private foundations, for example," says Nadège Chambon. The search for a compromise failed again today: Germany, United Kingdom, the Netherlands, the Czech Republic, Denmark and Sweden continue to oppose the text, forming again a minority of block which makes it impossible to vote.

What are the arguments of the opposing countries?

The strong position of these six countries is based on a jurisdictional issue. "In principle, assistance to the poor is good, but it is the duty of national states," said the German representative, the Secretary of State Robert Kloos, advocating that it be spring " national budgets and not the European agricultural budget. "In Germany, moreover, the associations are very few appeals to the European program, with emphasis on regional governments, municipalities and churches. (Read on the subject: Germany has does not (the restaurants) heart?)

In April, the Court of Justice of the European Union, seized by Germany, has proved him right, by canceling the article to fund the distribution of aid from the budget of the CAP.

And those of his supporters?

The European Commission is in turn firmly attached to the device. Members highlight the growing needs of the poor, still weakened by the recent rise in food prices."In 2006, an estimated 43 million people in the EU-25 were at risk of food poverty," she recalled in a discussion paper.

"The CAP has imposed tariff protection which may themselves have negative consequences on the food purchasing power of citizens. The European Union would have a real legitimacy to helping people by providing food aid to the poor" Nadège Chambon also observed.

Program funds be at risk in the short term?

Yes, largely. The decision of the Court of Justice already prevents the European Commission to use the budget of the CAP to fund the program in 2012, depriving him of more than 80% of its resources. Result, its funds could rise from 480 million euros this year to 113.5 million in 2012, since only the original part of the program, the distribution of the surplus can be maintained."The associations are likely to distribute 130 million meals in less than in 2012," responded Didier Piard, head of advocacy at the Red Cross.

Despite the determination of the Commission and the outrage of European public opinion, "I do not see many positive outcomes, both the position of countries who oppose the program seems strong," said Nadège Chambon. In anticipation of the forthcoming negotiations, the states in favor of maintaining the program should continue intense negotiations to bend the skeptics.

As part of a new package of measures to reduce the deficit for 3000 billion announced Monday by Barack Obama, President of the United States to unveil the creation of a tax on wealthy Americans with incomes above the one million dollars. This tax has already been dubbed "Buffett Act", in reference to billionaire Warren Buffett, who recently noted that the richest Americans are taxed less than the middle class.The New York Times, the millionaires tax would only affect 0.3% of taxpayers, less than 450,000 of the 144 million returns recorded in 2010. It integrates with a broad revision of the tax schedule by ending tax breaks granted under the presidency of George W. Bush to taxpayers earning over $ 200,000 annually.

Before they are formalized, these proposals have raised an outcry among Republicans. To Senator Lindsey Graham, "the tax code should be reformed as the sole purpose of creating jobs. When you tax one percent of the economy, this is called a class war." Criticism echoed by the representative Paul Ryan of Wisconsin. "The class struggle may be regarded as good politics but it rots the economy, he said on Fox News. We do not need a system that divides people.We do not need a system that exploits fear, jealousy and anxiety. "

In France, an outstanding contribution … and symbolic

Included in the austerity plan announced in late August, a 3% tax will be set up in 2012. It will labor income and capital in excess of 500,000 euros per year. And bring 200 million a year into the coffers of the state. "This is an exceptional tax" to be "removed" when the government deficit in France has been reduced to 3% of GDP, said the Prime Minister. If France keeps its promises, the tax shall remain in force until 2013 and disappear the following year.

However, the tax is considered "symbolic" by many observers. "It's quite symbolic and ridiculous," lamented the president of the Senate Finance Committee, Jean Arthuis.In common with many members of the majority of economists, the centrist senator favored the creation of a slice or two additional tax on high incomes. Even more virulent, the Socialist Party denounced as an "emblematic" of "cynicism" of government, accused of asking the rich "not to make a ninth" of the "check" that they made in reducing tax Solidarity on wealth (ISF). "It's really the political symbolism," joked Elie Cohen, research director at CNRS. He said eight months of the presidential election, the government wanted to "go in the direction of public opinion in favor of taxation of the richest."

In Italy, Berlusconi managed to water down the tax

After a first abandoned under pressure from Silvio Berlusconi, the richest tax is included in the austerity plan endorsed by Italy, September 14.But it will be much narrower than that previously envisaged. Set at 3%, finally it will only cover the income above 300,000 euros per year while the previous version had the highest of more than 90,000 euros.

In Spain, the wealth tax is reintroduced to finance regional

Pressed by the markets and the European Union to reduce its deficits, the Spanish socialist government has reintroduced this Friday for two years, the wealth tax, suspended in 2008. It ensures that it is intended only for the richest and 90% of Spaniards do not have to pay. This tax will concern that "about 160,000 citizens," "all the others do not pay," assured the spokesman gouverenement.A measure that would generate about one billion euros, and to fund areas that block the accounts of the country.

Also accused of touching a part of the middle classes, the tax was suspended in 2008. To answer these criticisms, the base has been changed: the taxpayers will be taxed on their property that beyond 300,000 euros, against 150,000 in 2007, and their assets in excess of 700,000 euros, against 108,000 in 2007. A constant parameters compared to 2007, the tax, "focused on the richest people" should report "around 1.08 billion euros," said Thursday the economy minister Elena Salgado

"All cash possible" recovered in 2011 and 2012 will be available to the regions, so that in 2012 and 2013 they have "more resources to meet their expenses," said Minister of Economy.The financial situation of the 17 regions, which have a high degree of autonomy is a recurring source of concern for the markets. At the end of June, their accumulated deficit was already 1.2% of GDP, while it should not exceed 1.3% by the end of December, while overall debt reached a record high at 12 , 4% of GDP, against 10.2% a year earlier.

Kweku Adoboli, 31, was charged with false accounting and fraud.Wearing a light blue sweater and a white shirt, the trader, in tears, was served that he would remain incarcerated until next Thursday.

It is defended by the British cabinet Kingsley Napley, who had advised Nick Leeson, the British trader who caused the collapse of Barings Bank in 1995.

Kweku Adoboli, son of a Ghanaian UN official retirement, had specialized in index funds.

Fraud is a blow to the new director for risk management at UBS and has ruined the banking industry's efforts to convince that this situation could happen again.

Market rumors suggest the hypothesis of a foreign exchange loss resulting from the decision of the Swiss central bank set a floor for the franc-euro parity, which has pushed the Swiss currency and the stock market bounce.

UBS said losses related only to the shares. She did not comment on the indictment of the trader.

A trader at UBS in London said he expected further job cuts in the next two weeks.

"In my team people are afraid and are low profile. The idea is to remain here and keep his job.In the current situation, it would be difficult to find work elsewhere, "said the trader told Reuters on the condition of anonymity.

UBS INVESTMENT INDUSTRY THREATENED

A senior UBS said that the meetings and other meetings were canceled because he said the crisis experienced by the bank or an appointment with the financial regulators.

"The morale is abysmal," said the banker."It's very bad for our reputation."

The bank has dropped the stock market Thursday, having reported that it could record a loss in the third quarter as a result of these uncontrolled transactions.

The loss erased in fact the two billion Swiss francs ($ 2.3 billion) of savings that the bank hoped to release as a result of a cost reduction program announced in August that will result in the elimination of 3,500 jobs .

It also threatens the future of investment banking, which is evaluated by the CEO Oswald Grübel as part of restructuring.

UBS, which says that no position of customers were affected, held on November 17 a day for investors to probably announce the restructuring of the investment bank.

"I would not be surprised that we have a preliminary confirmation of a reduction (of staff) major, perhaps as early as this weekend," said Matthew Czepliewicz, an analyst at Collins Stewart.

"This announcement can not wait for the third quarter results and Investor Day," he added.

The first two political parties the Swiss People's Party and Social Democrats, called for separating UBS's investment banking arm of its asset management.

Rating agencies Standard & Poor's and Moody's placed the credit rating of UBS on negative watch.

The UMP Gilles Carrez, general rapporteur of the budget in the Assembly, is considering raising the VAT rate on luxury hotels, after the Finance Committee of the Assembly was retoqué a similar measure for theme parks, Les Echos reported Friday.

"By raising the VAT to 19.6% of the few luxury hotels, as was the case from 1981 to 1994, Gilles Carrez hopefully garner revenue the same as those expected with the theme parks: 13 million euros this years and 90 million per year from 2012, "the paper said.

The business daily said that no decision has been made for establishments covered by any such action and that this project has not been approved by the government.

Asked by Les Echos, the president of the National Union of Hoteliers (Synhorcat), Didier Chenet, considers that an increase in VAT rates on luxury hotel would be "intolerable" because it would penalize an industry that attracts a customer generation of significant tourism revenue. The increase in the VAT rate in the theme parks has been repeatedly criticized since its announcement in the anti-deficit plan decided by the French government.

Jean-Pierre Raffarin, Senator of Vienna, Department of Futuroscope, has reiterated Thursday that it was "inappropriate action" and that it was the "delete". The founder of Park du Puy du Fou (Vendée), Philippe de Villiers, has also requested its withdrawal.

The Finance Committee of the Assembly on Wednesday adopted an amendment introduced by some fifty members of the majority, against raising the VAT rate in the theme parks.

To be adopted, it will be voted on next Tuesday in open session.

The transaction will allow the private equity fund Permira, owner of Provimi in 2007, winning more than 2.3 times its initial investment.

The Company has issued an Ebitda of 86 million euros in the first half, up 20.3%.

"Cargill has offered a clear and compelling case and we believe that the combination of its activity feed with Provimi will create a stronger business," said the CEO of Provimi, Ton van der Laan.

Provimi had been coveted in June of DSM, Nutreco and Chinese New Hope.

This, though reduced in size compared to some recent acquisitions in the luxury and fashion, would be a step in the refocusing of the PPR luxury brands and fashion at the expense of distribution.

One of the sources interviewed by Reuters said that discussions "were under way" on a possible takeover of the Italian family group, known for its men's suits high-end.

The other, more conservative, said that Brioni has long been in the crosshairs of PPR and the operation was "far from being buckled."

"PPR is always watching, discussing (…) but it does not always translate into a concrete operation," the source said, estimating that the figure of 350 million euros is "" makes sense in terms ratios ".

Neither PPR nor do you want Brioni comment.

The Italian daily Corriere della Sera reported Wednesday that the leaders of PPR would be in Italy "in a few days" to study the accounts of Brioni.

This increase in debt could undermine the government's objective to begin to reduce the debt ratios of France from 2013.

"This will have an indirect effect is an increase by 2014 our debt levels, given the inclusion of guarantees, up to about 15 billion euros," said François Fillon to Following a meeting with parliamentarians of the majority.

The government expects public debt will continue to grow this year and next year (85.4% and 86.9% end 2011 end 2012) and begin to decline in 2013 to reach 86.4% at end 2013 and 84.8 % end of 2014.

François Fillon announced that the new support plan for Greece would require a new supplementary budget to be presented to Parliament in September.

The leaders of the euro area reached an agreement Thursday involving the private sector and reforming drastically the stability fund to make an embryonic "European Monetary Fund."

Welcomed by the markets, the new Greek plan, a total of 109 billion euros, will be echoed by participating banks and European insurers, the amount could go up to 50 billion euros.

NO BANKRUPTCY OF STATE

"This agreement marks an absolutely decisive in the history of the euro area," said François Fillon."There will be no state of bankruptcy in the euro area, because the solidarity of the euro area will be complete.."

The "golden rule" would entrench the need to reduce deficits in the French Constitution is now more than ever, still says the head of government.

"It is indeed now a joint effort of the countries in the euro area to adopt this budget framework must be credible leads," he said.

France has pledged to reduce its public deficit below 3% of GDP in 2013 but believes it must include the balance of state finances in a basic document.

If this "golden rule" was passed by the majority, it must, to be enshrined in the Constitution, getting three-fifths of the vote in a Congress, which requires adherence to some of the parliamentary left.

The Socialist Party refuses for the moment and Nicolas Sarkozy has not officially taken the decision to convene the Congress but the majority, Francois Fillon at the head, pushed him to move forward.

For the Prime Minister, France played a "central role" in the conclusion of the agreement, including by reaching before the summit in Brussels an agreement with Germany.

"The Franco-German duo has once again played a key role in finding the right solutions to the crisis.I guess you could say that the Franco-German couple is the key to stability in the euro area, "he said.

The President of the Community executive, José Manuel Barroso, has accused the three agencies Standard & Poor's (McGraw Hill), Moody's and Fitch (Fimalac) to encourage speculation in the euro area and said it was desirable make them accountable to the civil courts and put them in competition with a new European agency.

This is not the first time that the Commission addresses head-on agencies, but without success so far.In March, the commissioners Olli Rehn and Michel Barnier had issued a joint statement containing these different tracks from a lower rated Spanish and Greek, already by Moody's.

"We deeply regret the decision of a rating agency to lower the rating Portuguese. We regret this, we also regret the methodology chosen and the chosen date," said José Manuel Barroso at a press conference to Strasbourg.

"Frankly, the decisions made yesterday by a rating agency do not add to the clarity and transparency.They add an additional speculative element to the situation, "he added, noting that rating agencies were" not infallible "and failed to properly anticipate the crisis of 2008.

Simultaneously, a spokesman for the Commission considered that this decision was a "regrettable incident" and highlighted the "questionable behavior" agencies.

LIABILITY

The relationship between rating agencies and the European authorities have considerably strained since the beginning of the Greek crisis in late 2009, accusing the EU Fitch, Moody's and Standard & Poor's to have a negative bias towards European support plans Greece, Portugal and Ireland.

Two regulatory measures have been adopted.They require agencies to register to practice in the EU and they are now under the supervision of the new and Markets Authority (ESMA), which can be up and withdraw licenses for failure compliance.

The services of the EU Internal Market Commissioner, Michel Barnier, STRIPS for several months on a new version of these texts, which could be used to suspend the rating of a country subject to a support plan and to make agencies civilly liable for their decisions.

They also hope to encourage the emergence of a new European agency to compete with American supremacy in financial rating.

"We are considering measures to improve the methodology and the transparency of sovereign ratings, reducing the reliance of financial institutions with respect to ratings, to reduce conflicts of interest and introduce more competition," stressed José Manuel Barroso .

"We are interested in making such agencies responsible civilly.Our proposal will be ready by the end of the year, "he said.

Even if this reform is claimed a majority of EU Member States and MEPs, it has little chance of success quickly.

Suspend the rating of a country enjoying an aid to civilian agencies or officials are facing a series of technical problems and perspectives differ widely in shape and missions of a possible European agency says one in Brussels.