The Nikkei gained 0.16% or 13.67 points to 8,514.47 while the Topix, larger yielded 1.17 points (-0.16%) to 729.13.

On the whole a week marked by a deepening debt crisis with the record level by the Italian sovereign bond yield, the two indices lost 3.3% and 3%.

Title Olympus finished down 4.96% to 460 yen after a volatile session.

Objectives, duration and the choice of the directing personality similar government must be acquired before the start of the power of the current prime minister, said on national television MP Telemachos Hitiris.

"Just wait for the announcement of the (selection) Prime Minister in the cabinet. Everything must be done in the day, otherwise it will be hell tomorrow," he warned.

Economists polled by Reuters had expected that the unemployment rate in the fourth largest economy in the euro area, the highest in the European Union, remains unchanged from the second quarter.

While being held in Paris the meeting of G20 Finance Friday and Saturday, the market hopes to see political leaders overcome their differences to meet a debt crisis that threatens the stability of the euro area and the strength of the European banking system.

"For now, investors give them the benefit of the doubt," said Patrick Moonen, strategist at ING Investment Management, in a note entitled "Good luck to political leaders."

Pending the outcome of the meeting of finance ministers and central bankers of the G20, the surveillance by Fitch notes several banks – including Barclays, BNP Paribas, Credit Agricole, Credit Suisse, Deutsche Bank or Societe Generale – show the difficulties faced by banks today.Difficulties that have driven the last weekend the French-Belgian Dexia decommissioning.

In exchange, the banks Friday was the only sector to finish down in Europe (-0.59%).

The President of the Eurogroup Jean-Claude Juncker reiterated Friday that several European banks needed to be recapitalized.

The crucial step remains the European Council of 23 October at which Germany and France will unveil their proposals for overcoming the crisis. Both countries said they already sealed their agreements without specifying its content.

"We have never been so close to a solution (to the debt crisis, Ed). But this is not done," warns David Thebault, head of quantitative trading at Global Equities."There is concern that the market takes it badly if there is no announcement of precise and detailed plan on October 23 and November 3 (G20 Cannes, Ed).I remain cautious. "

The Franco-German proposals will include a bank recapitalization and strengthening the response capacity of the European Financial Stability Fund (EFSF).

SIX MONTHS to recapitalize

In preparation for the European Council, the European Banking Authority (EBA) provides a new set of stress tests of the banking sector.

Stricter than the previous year this time should include a valuation of sovereign debt, particularly that of Greece, at market value, and the EBA should require banks a minimum capital ratio "hard" ("core tier one") of 9% and not only by 7%.

According to European sources, the weakest banks will then have six months to build up their capital.

"The only real justification for recapitalization would be to reassure the markets," said Laurent Quignon, head of economics at BNP Paribas bank.

"But in terms of economic fundamentals, there is no more reason than all the banks are recapitalized today than yesterday."

According to Goldman Sachs, at least 50 out of 91 European banks could fail the new stress tests, indicating a need for 139 billion euros in fresh capital.

The terms of a bank recapitalization on the Old Continent will be the subject of intense negotiations from Monday, said President of the Eurogroup.

"LESS DIVIDENDS, BONUS UNDER"

The French government has already said that the State was ready to help banks, but for now it emphasizes the strengthening of capital by private capital, unlike what was done in 2008 and 2009 under the plan to help French banks after the collapse of Lehman Brothers.

"Banks will have to recapitalize on the basis of their results by distributing less dividends and less bonus," said Friday morning the Minister of Economy Baroin, Europe 1.

"If they can not, they will do in the markets.If markets are not sufficient, they will find partners and, ultimately limit, there will be an opportunity for European coordination. "

"For France, I want to say that I am confident in the ability of our banks to raise their profits and all means at their disposal to strengthen their capital base," added the Prime Minister Francois Fillon, in the afternoon during the parliamentary days of the UMP.

In line with the German position, France has already ruled out recourse to EFSF to recapitalize its banks.

"Policies must resolve the dilemma between the private shareholders of banks that do not want to hear about dilution and the market which requires recapitalization," said Christophe Nijdam, an analyst at AlphaValue.

"The calls for recapitalization by the European authorities can be cons-productive to the extent that they contribute to fuel concern for all banks," warns Laurent Quignon, at BNP Paribas. "What can paradoxically make raising capital more difficult for institutions that need it."

Deutsche Bank, which would need to raise 9 billion euros according to sources, has made it clear that it would avoid any forced recapitalization.

At the end of a board of about noon, the directors of the former world number one funding of local authorities have approved the nationalization of Belgium Belgian activities of Dexia, Dexia Bank Belgium (DBB) specializing in retail banking.

Belgium will pay to do this four billion euros.

"This sale will be finalized shortly," advised the bank."It will enable Dexia to reduce its need for short-term financing of over 14 billion euros, will improve the solvency of the group of more than 200 basis points and reduce its portfolio of non-strategic assets of 18 billion euros. "

Matignon has in turn made in a statement that France would lean financing activities of French local authorities of Dexia Municipal Agency (DexMA), French securitization structure owned by Dexia Credit Local, the Caisse des Depots (CDC).

A consortium of funding for French local authorities will also be created and established by the CDC and the Postal Bank, also indicate the services of the French Prime Minister Francois Fillon.

As part of the new rescue plan for Dexia, already saved from bankruptcy in 2008 with a public bailout of more than six billion euros, Belgium, France and Luxembourg have signed to provide 90 billion euros government guarantees to ensure the financing needs of Dexia.

NOT FOREVER IN DBB

"States have agreed to divide this guarantee in proportions similar to those of 2008, 60.5% for Belgium, 36.5% for France and 3% for Luxembourg," reported Matignon.

Belgian Prime Minister Yves Leterme said at a news conference that Dexia would immediately pay a premium of 50 basis points in return for these guarantees.

The Belgian Finance Minister Didier Reynders said in that same press conference that the Belgian state, however, did not intend to stay forever in the capital of DBB.

Sunday morning before the meeting of a special board of Dexia, the French Prime Minister Francois Fillon met with his Belgian counterpart in Brussels and the Luxembourg Finance Minister, Luc Frieden, to find a agreement on modalities and participation of all three states.

"The three governments agreed to submit a proposal to the board that fits perfectly with the objectives of the Belgian Government, which involves taking control of Dexia Bank Belgium, secure and make it a bank very safe," he Yves Leterme said Sunday on Belgian television.?

The challenge for the three states participating in the plan was to ensure that aid does not come to Dexia worsen the situation of public finances.

The rating agency Moody's had also increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 kingdom under surveillance by explaining, among other things, will assess the costs and liabilities that the state could take Dexia in supporting.(See)

Didier Reynders has reported on this during the press conference that the debt / gross domestic product (GDP) of Belgium would remain below 100% despite the agreement of Dexia and said that the European authorities of the competition had been informed of the plan.

Dexia, the rating action has been suspended since Thursday, is at 9 am press conference to present the plan to dismantle the bank as it was approved by the directors.

The euro, which rated approximately 1.3350 dollars, is notably supported after the commitment by Germany Wednesday to help its banks if necessary.

Be announced by the ECB at 24:45 GMT at the end of the meeting of its board of governors for the last time led by Jean-Claude Trichet? The issue is discussed.

The market economists expect a simple majority in monetary status quo – the main rate by the ECB would remain at 1.5%.But the voices of a growing number were heard to ask for a lower cost of money while the signs are increasing of a faltering economic recovery and as the financial crisis – bonds and bank – escalates .

However, inflation continued to rise in September in the euro area. It reached 3.0% annual rate, its highest level in nearly three years, against 2.5% in August, is already well above the objective of the ECB. However, the essential mission of the Central Bank of 17 countries in the euro area is to maintain prices at a level slightly below 2%.

If the ECB does not reduce the cost of credit, it could announce other support measures.Among the measures expected by the market, increased liquidity, recovery of tenders 12 months used for the last time in late 2009, handed to the current tastes of the program to purchase bonds (covered bonds).

According to a Reuters poll conducted last week, 56 of 75 economists said to anticipate a continuation of interest rates, but 13 anticipate a decline of 25 basis points in September and even predict a reduction of 50 points.

For example, JP Morgan Chase is expected to drop 50 points in the cost of money.

The single currency has lost about 10% against the greenback since its peak of 1.4550 dollars in late August, but is above the low point of his nine-month dollar hit 1.3145 this week.

Carmignac Gestion WANTS THE RATES TO ZERO

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

She said that the risks to inflation were no longer on the upside but were "broadly balanced".

Since then, inflation was announced at 3%, but the signs of a slowdown have been confirmed.The U.S. investment bank Goldman Sachs and others now provide even a "mild recession" for the eurozone in the fourth quarter.

Economist Oxford Economic Forecasting (OEF) Tom Rogers believes that the ECB will reduce its rate to less than 1% if the economy falls into recession.

In a full page advertisement in the Financial Times on Wednesday, the French manager Carmignac Gestion, with assets under management amounted to 55 billion euros, asked Jean-Claude Trichet to go further and to reduce rates to zero.

"Goodbye, we do not regret it!" We read in the box presented in the form of a letter to the President of the ECB."This is your last chance to leave on a positive note."

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 feel 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.

Some as Carmignac criticized the ECB for not doing enough to fight against debt crisis in the euro area, but others, like the Bundesbank, the ECB's view that has already gone beyond its limits and it puts independence at risk.

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.

Heads of Mission of the troika of creditors will return to Athens, Greece "in early next week" to complete talks for the release of the next tranche of loans to the country, said Tuesday the Department of Finance at the end a teleconference between representatives and the Minister.This conference gave rise "to a satisfactory progress" in negotiations, said a ministry statement, stating that the minister, Evangelos Venizelos, will also continue its discussions with donors in the country "this weekend in Washington at the annual meeting of the IMF. "

These negotiations are intended to avoid a default on Greece in need of loan from the euro area and the International Monetary Fund to cover its financing needs from the end of October. In Brussels, the European Commission made from advanced, indicating that negotiations were possible to find common ground and confirming the return of the troika. During the conference, following a first round Monday, "Good progress has been made," the Commission ruled in a statement.Technical discussions will continue over the next few days in Athens, she added, as also the statement of the Greek Ministry.

Of these negotiations depends on the payment in October – vital for Greece – the sixth round of eight billion euros of the loan in May 2010 in the euro area country and the IMF. A source of the Greek Ministry of Finance, negotiations Tuesday were to endorse the measures agreed between Greece and its creditors to achieve the planned budget savings and accelerate structural reforms that Athens has promised to perform in exchange for his rescue bankruptcy.

The European Commission has not confirmed this information and did not provide details in a statement. The department has for its part not mentioned in either agreement.A cabinet was nevertheless restricted announced Wednesday morning that the Greek media are waiting for a green light to launch the measures agreed with creditors, centered on the compression of the public sector.

Some thought that profit-taking would arise from the opening given the gains accumulated in four sessions. If the opening movement continues, the S & P 500 is on track louse save his best week since early July.

For now, he earns 0.5% to 1215.33. The Dow Jones ahead by 0.5% to 11,488.73. The Nasdaq Composite Index is 0.3% to 2615.08.

Fellows prepare for the publication of the index of consumer confidence published by the University of Michigan. It is intended to 56.5 against 55.7 in August.

Boeing gained 1% to 64.98 dollars.Air France-KLM announced plan to order 110 aircraft divided equally between Airbus and the American manufacturer.

Yahoo takes 1.5% to 15.11 dollars. According to the media, the private equity fund Silver Lake is considering an offer.

Global stock markets tumbled again Monday, maddened by the assumption of more and more openly discussed a bankruptcy of Greece despite the soothing statements from European officials.

"The events taking place in Europe affect a growing market with a flurry of distressing information," noted Patrick O'Hare, Financial Analysis Site Briefing. "The markets anticipate scenarios very dark and do not want to remember that the darkest assumptions," added Yves Marc, Global Equities."We remain in a market in flux guided by fear," added Franklin Pichard, Director Barclays stock.

All European stock markets ended the day deep in red, Paris, Milan and Madrid, ending even the lowest for two and a half years. Briefly falling over 5% in early afternoon in Paris because of particular concerns for French banks, under threat of a deterioration in their rating by the rating agency Moody's.

European shares, which had already been a Black Friday, continued to plunge. In closing, Paris was unscrewed from 4.03% to 3.89% Milan, Madrid from 3.41%. Frankfurt yielded 2.27% and 1.63% in London. In Asia, Tokyo ended down 2.31% and 4.21% of Hong Kong.

Wall Street resisted in the middle of the session: to 16:00, the Dow Jones that yielded 0.75%.But the trend remained fragile and could accelerate the losses from one moment to another, stressed brokers.

The hypothesis of a failure of Greece, or even leaving the euro area, continues to gain ground and influence markets. "European officials are trying to take a more firm vis-à-vis Greece, in front of a ras-le-bol growing against the bailouts in Europe and North against austerity in the south "in the region, said Michael Hewson, an analyst at CMC Markets.

This weekend, the German Minister of Economy Philipp Rösler has not ruled out a bankruptcy ordered Greece to save the single currency before the department will remember come Monday that Athens had its place in the euro .

The Commission President José Manuel Barroso and German Chancellor Angela Merkel in turn tried to restore calm by ensuring, in a joint statement after a meeting in Berlin, the EFSF, in its strengthened would be operational by the end of the month.

The European Financial Stability Fund created last year, bringing relief to struggling countries, must in particular be allowed to buy government bonds on the secondary market. Athens, which is desperately trying to reassure its creditors, has pledged Sunday to take additional steps to save $ 2 billion in 2011.

The European Commission has welcomed the announcements and said that the donor countries meeting in a Troika-European Commission, European Central Bank and International Monetary Fund-would return to the country "in the coming days." The atmosphere had deteriorated markedly since the unexpected departure of the country of a Troika mission in early September.

Bank stocks, especially in France, have been particularly turbulent Monday, weighed down by their exposure to sovereign debt and fears about their solvency. BNP Paribas has unscrewed from 12.35%, 10.64% of Crédit Agricole and Societe Generale of 10.75%.

"Whatever the scenario Greek and supplies to go, French banks have the means to cope," he tried to reassure the French Minister of Economy and Finance, Baroin, reiterating a message delivered in the morning by the governor of the Banque de France Christian Noyer.

"We are ready to provide liquidity to banks requested" to "unlimited" and "fixed" for the euro area, for his part reiterated the governor of the European Central Bank (ECB) Jean-Claude Trichet, in his as a spokesman for the group of major central banks.

The week promises to be crucial. Wednesday, an emergency meeting of the IMF to be held on Greece and the finance ministers of the euro area and European Union will meet Friday and Saturday in Poland to try to complete the second level of support Greece nearly 160 billion euros, promised the country July 21.

However, the markets seem to doubt the capacity of policy to agree and thus to regain control the crisis, especially after the G7 meeting on Friday and Saturday, which has resulted in "no action" according to an analyst.

Finance ministers and central bank governors of the seven richest countries in the world (G7) have simply promised Friday to Marseille to respond "strong" and "coordinated" to the crisis but without specifying their strategy.

Considered a value at risk in this context, the euro was heavily abused: Monday he touched its lowest level since mid-February against the dollar and 10 years against the yen.

On the debt market, the rates of German and U.S. bonds, safe havens, were at their historic low.Conversely, interest rates have soared Monday in a securities issuance of public debt in Italy.