Already recapitalized in 2008 to 6 billion euros not the French public authorities, Belgian and Luxembourg, Dexia announced the beginning of October a new rescue plan led by the three countries.

The Prudential Control Authority (ACP) has sent two letters to Dexia Credit Local in the summer of 2010, copies of which were sent Thursday to Reuters by Georges Gilkinet, MP Belgian French-speaking Green party Ecolo.

"The College (CPA) found that the liquidity position of DCL, which does not comply with the regulations to the deadline of 30 June 2010 and also presents the risk of deterioration was particularly fragile," writing to the regulator DCL August 16, 2010.

"Under these conditions, it intends to place the institution under special supervision."

More detail in a letter sent Sept. 17, 2010, the CPA advanced many shortcomings in the management of Dexia Credit Local.

"In general, DCL is not or has not been always able to accurately determine the parameters of risk instruments markets," it said in the second post.

"The efforts of DCL and Dexia since late 2008 to address the weaknesses identified by internal audit group and this inspection mission are still insufficient to significantly reduce the risks, including counterparty and liquidity, and comply with prudential regulations and accounting, "the governor continued.

CONTROL OPERATIONS failing markets

He also noted the lack of control of Dexia Credit Local of its foreign subsidiaries' consolidated supervision of market transactions was deficient at the time of the survey, DCL not knowing the transactions initiated by its major subsidiaries including Spanish and German."

For the ACP, Dexia Credit Local had failed to mid-2010 to regain control of the risks taken by its various subsidiaries after its first rescue in 2008.

"This situation, similar to that already encountered in 2008 on the activities of the Slovak subsidiary, is not admissible in view of the notional amounts involved and the risks involved," he is also indicated in the report, in which the ACP doubt on the ability of Dexia to "effectively control the activities of its subsidiaries and branches."

A spokesman for the Prudential Control Authority declined to comment.

"This is a report on the consequences of the first banking crisis, we can not correct the story in a snap," Pierre Mariani defended himself in the newspaper De Standaard Dutch, noting that 'no sanctions had been taken against DCL.

A Dexia spokesman declined to comment further.

Dexia has given Thursday launched the final phase of its dismantling by validating the sale of subsidiaries whose Franco-Belgian bank must dispose as part of its rescue plan October 10.

First victim of bank scale of the crisis of sovereign debt in the euro area, Dexia should exist only as a holding company listed in Brussels which will combine the activities of financial services to the public sector in France, Spain, Italy and Germany.

Recapitalized on the basis of 9.9 euros per share in 2008, the Dexia share is worth more today than 0.61 euro. She lost three quarters of its value since the beginning of the year after falling nearly 39% in 2010.

But if the decision of the rating agency to assess the stable outlook of the French financial risk rating to weigh on confidence vis-à-vis the currency area in the coming weeks, there is little chance that the risks associated materialize in the short term.

As for the long term, permanent mechanism for stability, which could take effect in July 2012, will shield the single currency which will have a solid capital structure and legal personality, making it impervious to turmoil on the notes of the national constituent countries.

Moody's justified its decision Monday night focusing on the risks to French growth and the potential costs of bank recapitalization and support to troubled countries in the euro area.

The news comes at the worst time when the leaders of the euro area, meeting Sunday in Brussels to agree on a strategy for Greece and their banks, already suffering from a lack of confidence from investors after almost two years of delay and 14 peaks that have failed to stem the crisis in Greece.

The risk premium associated with the French bonds jumped to a record since the inception of the euro after this warning, which now places a sword of Damocles over the Franco-German couple, the backbone of the currency area and the ultimate guarantor its stability.

Franco-German

The consequences could be felt this week and affect the contours of the European plan to reduce Greece's debt consistently, reinforcing the strength of the euro area banks by recapitalizing and maximize "the firepower of the fund to support the euro area (EFSF) by using leverage.

"The French are clearly vulnerable.It becomes difficult for them to talk on equal terms with Angela Merkel in terms of spreads (the spread between yields on French and German-Ed), "said Ludovic Subran, chief economist at Euler Hermes.

Philippe Waechter, director of economic research at Natixis Asset Management, for its part considers that the new could curb the ability of Europeans to use the EFSF to relieve the ECB in resolving the crisis.

"It's true (that announcements by Moody's) can weaken the EFSF, debts are guaranteed by France to the tune of 158 billion euros, which is significant.It could create a doubt, "he says.

As for Alex Koagne, an analyst at Natixis bank, it is estimated that the bank recapitalization component that is affected first.

"The message from Moody's equivalent to saying that France can not help its banking sector.It's a way of saying: 'If your bank should be recapitalized, they will do in the markets,' "he said.

CALENDAR

Beyond the impact on trust, risk, however, are limited in the short term.

The "multiplier" of EFSF, which could be decided on Sunday, will have no impact on the sovereign ratings of countries in the euro area and could increase the response capacity of the fund to some 2,000 billion euros in guarantees, which does not weigh on the public accounts.

The recapitalization of banks should in turn be primarily via internal reserves and facilities through the market, with limited impact on finances.

Above all, the European Stability Mechanism (MES) could start operating sooner than expected

Legal personality of international institution and its 500 billion euros in capital, which can be more easily "multiplied", will make it impervious to changes in national sovereign debt notes.

The date is now planned on 1 July 2012 but some call for further accelerate this timetable.

Moody's has on its side no plans to go as fast and was given three months to choose whether or not the French note on negative outlook, before eventually withdrawing its maximum score within two years.

The deficit on trade in goods fell to 5.2 billion euros, against 6.4 billion a month earlier.

Trade in services have stabilized, generating a surplus of one billion euros.

The income balance has reached $ 3.5 billion from 3.6 billion in July while the current transfers deficit was unchanged at 2.2 billion.

The financial account showed a net outflow of direct investment of 800 million euros from 8.5 billion in July.

French direct investment abroad stand at 4.6 billion against 4.3 billion a month earlier.

Portfolio investment recorded net inflows of 21.7 billion euros residents increased their holdings of 34.6 billion while non-residents making sales of French securities to 12.9 billion.

Other investment posted net outflows of $ 4.9 billion after limited net outflows of 5.3 billion.

At 9:33, the CAC 40 is 0.16% to 3004.63 points after passing briefly under the psychological barrier of 3,000 points.

The New York Stock Exchange ended down 1.03% Thursday, the Dow Jones industrial yielding 30 119.96 points to 11,493.57 points.

The S & P-500, wider, lost 14.47 points, or 1.19% to 1204.42 points.

The Nasdaq Composite Index was down 33.42 points for his side (-1.3%) to 2546.04 points.

Trading volumes were low, investors pausing after four sessions up and awaiting the U.S. employment figures on Friday.

The number of jobless fell by 12.000 last week, while the ISM manufacturing sector, albeit declining, remained in the growth area in August, while economists expected a contraction.

However, the decline in nonfarm productivity in the United States was larger than originally announced in the second quarter.It fell 0.7% annual rate instead of a decrease of 0.3% in the first estimate.

Construction spending in the U.S. have also declined by 1.3% in July, their biggest drop since January, according to figures from the U.S. Department of Commerce released Thursday.

President Barack Obama has also revised downwards its growth forecast as well as on the budget deficit.

As for values, title Ciena surged 20.18%. The manufacturer of equipment for telecommunications shows a profit for the first time in three years, while analysts expected a further loss.

Goldman Sachs has been unscrewed from 3.49%.The U.S. Federal Reserve demanded that the U.S. bank to make the services of an outside consultant to review the mortgages issued by one of its subsidiaries, to identify and compensate borrowers who have been victims of improper seizures .

Finally, as GM fell 4.16%. The manufacturer has not achieved the most optimistic of sales growth in the United States in August. Since the beginning of the year, the stock has lost about 36% of its value.

The third global brand PC has been driven by strong sales in China and other emerging markets but faces the risk of a collapse in demand in Europe and the United States as it embarks on the tablets (Lepad) and smartphones (Lephone) alongside giants Apple and Samsung.

Lenovo's net income nearly doubled in the first quarter ended in June, standing at 108.8 million dollars against 54.9 million a year earlier.Analysts polled by Thomson Reuters I / B / E / S on average expected 78.6 million.

Lenovo makes 48% of its sales in China, where it is the industry leader with a market share of 31.7%, according to its own figures and those of IDC.

Worldwide, the market share of the group jumped to 12.2% against 9.9% in the first three months of the year.

"(…) The challenges facing the global demand for personal computers remain, such as the pace of recovery in the global economy and the continuing crisis of debt in Western Europe ", stressed, however, the group in a statement.

By 0700 GMT, the action Lenovo fell by 7.76% at the Hong Kong Stock Exchange, while the Hang Seng index feature yielded 1.25%.

Wednesday on Wall Street, Dell unscrewed from 10% after the world number two sector published a quarterly revenue slightly below expectations and said a stagnation in sales for the quarter.

In Canada, the U.S. bank has an agreement with TD Bank Group on a portfolio of $ 8.6 billion, according to a statement released Monday, however, reveals that the amount of the transaction.

TD Group said it would pay a "modest premium" of the approximately 1.8 million customer accounts at Bank of America again.

Bank of America also announced the sale of its credit cards in Spain in the private equity fund Apollo Capital Management.

The first U.S. bank seeking to strengthen its capital reserves as it faces several legal disputes inherited from the takeover of the mortgage company Countrywide.

Bank of America, which has lost more than 22 billion dollars over the last four quarters in its mortgage business, was announced in late June have resolved almost all of a dispute relating to securities linked to mortgages from Countrywide, upon payment of $ 8.5 billion in cash.

The torpor of the activity in Italy and Spain, third and fourth economies in the euro area, continues to fuel the concern of the markets, which fear that this lack of not going further complicates their budget equation and does not lead contagion the debt crisis.

According to estimates released by the Bank of Spain, the Spanish economy grew 0.2% in the second quarter compared to the first, against 0.3% in the period from January to March.Economists surveyed expected an average of 0.1%.

For its part, the Italian agency of statistics Istat has reported a growth of 0.3%, as expected, after rising 0.1% on each of the two previous quarters.

But this slight burst Italian looks short-lived after the fall of industrial production in May and June and indicators gloomy side of purchasing managers and the business climate, economists expect that the growth slowed again in the second half.

"Most of the second quarter growth was obtained at the beginning of the period, and indicators over the three months have indeed shown a marked slowdown," notes Raj Badiani, IHS Global Insight.

The same applies to Paolo Mameli, Intesa Sanpaolo: "The weakness in industrial production over the last two months has raised concerns for GDP growth in the third quarter, which, at present, could fall to 0.1 %.Although GDP growth throughout the year, expected around 1%, could actually be below. "

BANK OF SPAIN FOR POLICY "Energy"

Many economists believe now difficult to achieve the growth forecast of 1.1% set by the government of Silvio Berlusconi, although Istat said that "acquired growth" at the end of the second quarter was 0.7%.

From one year to another, the Italian GDP rose 0.8% in the second quarter, a figure also consistent with the consensus of analysts, after +1.0% in the first quarter.

For Spain, this figure stood at 0.7%, as expected, after 0.8% in the first three months of the year.Final data are published in Madrid on August 16.

In its monthly bulletin, the Bank of Spain said that the good performance of tourism in the second quarter helped offset some of the deteriorating consumer spending and manufacturing activity.

However, it believes that the growing tensions in the market for sovereign debt are the main source of risk to growth.

"The information available in the second quarter suggests a weakening of activity in an environment marked by the deterioration of the crisis of sovereign debt in the euro area," said the central bank.

Symbol of these tensions, the bond market has experienced in early trading Friday a new onset of fever, the yield on Italian 10-year surpassing that of the Spanish paper of the same maturity, the first time since May 2010.

The securities to 10 years in Rome at the meeting showed a return of 6.18% while the yield was 6.11% Spanish, levels considered to be difficult to sustain over time.

The Spanish central bank has warned that a rapid and ambitious conclusion of the work on structural reforms would help reduce uncertainty and restore solid growth.

To overcome the debt crisis, European leaders should not hesitate to implement the agreement decided at the summit of 21 July, she said.

"However, in order to contain the contagion, there must also have a strong response in terms of national economic policy."

The Bank of Spain still discern a glimmer of hope: assuming a continuation of the global economic recovery, it evokes the "recovery" predictable Spanish industrial production in the coming quarters.

The new bailout of Greece decided on Thursday in Brussels will be "indirect effect" for France increased its debt by about EUR 15 billion by 2014, François Fillon said on Friday. Can be estimated at 15 billion by 2014 French commitment, "assured the prime minister, citing a" byproduct "of the agreement.He was speaking at Matignon after a meeting with key officials of the Parliament after the summit of the euro area held Thursday in Brussels.

"These decisions have no direct cost to public finances," assured the Prime Minister. "They have an indirect cost because we will participate through the guarantees provided for loans to be made by the European Stability Fund to Greece," he added. "This will have an indirect effect is an increase by 2014 our debt levels, given the inclusion of guarantees to the tune of about 15 billion euros," he chained. "It can be estimated at 15 billion by 2014 French commitment," he said later the prime minister.

He estimated that the agreement reached Thursday night marked "a step absolutely decisive in the history of the euro area", and stressed the "vital role" of the Franco-German 'key to stability in the euro area ". The aim of France to bring its deficit below 3% of gross domestic product (GDP) in 2013 "to be achieved," he also said the Prime Minister. "The commitments we made must be respected."

This objective is "imperative", he said, "is now a concern that we share with all countries in the euro area.It does not involve extra effort it requires (…) strictly adhered to the commitments that were made under the law of finance multi-year, to continue to reduce tax loopholes, to further reduce public expenditure, to continue not to replace a staff of two, to further support local communities to participate in the collective effort. "

The world of microprocessors has published a turnover of 13.1 billion dollars (9.2 billion), representing an increase of 22% over the previous year.Analysts were expecting a turnover of 12.83 billion dollars, according to Thomson Reuters consensus I / B / E / S.

This is a record turnover for the group, for the fifth consecutive quarter.

The non-GAAP net income totaled up 10% to $ 3.2 billion, or EPS of 59 cents against 51 cents expected.

The group also plans a turnover of about $ 14 billion in the third quarter, against $ 13.5 billion expected by analysts.

"The results of T2 and T3 are forecast for much higher expectations.Under a quarter where no one thought he could again achieve these results, Intel has once again raised the challenge, "said Patrick Wang, an analyst at Evercore Partners.

The title sells on its gains in after-hours trading, falling 0.2% after taking 1.65%%.