The debt crisis in Europe has almost been forgotten that the U.S. also face their great difficulties on their debt. European stock markets closed sharply lower on Thursday. Paris (-3.4%, below 2900 points), Frankfurt (-3.5%) and London (-2.6%) fell sharply in the wake of Wall Street lost more than 2% at the end of the afternoon. Democrats and Republicans should agree on a plan to save 1,200 billion over ten years to hold their huge debt. But after two months of negotiations, they were still far from an agreement a few hours from the end of negotiations scheduled for Monday evening.

Congress had in effect established a commission to decide on a plan to reduce debt. Composed of twelve members of Congress – six Republicans and six Democrats – the "super-committee" was intended to relieve an abysmal debt that comes to exceed 15,000 billion (you can see it evolve in real time on the www . usdebtclock.org). The six Democrats proposed a plan for 2900 includes 1,300 billion billion tax increase, the six Republicans on the other hand opted for a plan of 2,200 billion euros, with "only" 200 billion of tax increases. Without ever reaching a consensus.

Why the lock?

This blockage occurs less than a year of presidential elections scheduled for November 2012.

The Economist, 68, former European Commissioner and now president of Bocconi University in Milan, is seen for weeks by the markets as the best candidate to lead a government of national unity and implementation of emergency austerity measures needed to redress the accounts of the country.The Paris Bourse was almost in equilibrium, Frankfurt advanced 0.5% and London gave up 0.45%.

Discussions in the PDL

Italian President Giorgio Napolitano has appointed Mario Monti senator for life Wednesday. Investors saw this as a sign that he would ask him to try to form a government from the start of Silvio Berlusconi, expected in the coming days.

And as the cost of borrowing to ten years in Italy continue to grow beyond 7%, a level deemed unsustainable by many, the assumption of a unity government seems to be gaining ground in the PDL.

"The LDP can not simply follow the call to the polls that emanates from the core," said Foreign Minister Franco Frattini in an interview with Corriere della Sera.

The group's operating income for the period July-September second quarter of this year stood at 39.2 billion yen (365 million euros), while analysts had on average expected 25.6 billion yen.

Net income for Suzuki, owned 19.9% ​​by Volkswagen as part of a partnership that turned sour, fell 13% to 13.3 billion yen while revenue declined by 6 , 6% to 618.8 billion.

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.

Earlier in the morning, the French bank whose needs additional capital was estimated at 3.3 billion euros, said it will recapitalize on its own without explicitly rule out an increase of capital.

For avoidance of doubt, SocGen said that it does not seek public money or raise capital in financial markets.

Under the agreement reached on the night of Wednesday to Thursday at the conclusion of a new double top, the European authorities have agreed to recapitalize their banks to the tune of 106 billion euros, 8.8 billion for French banks.

BNP Paribas, whose capital needs were assessed by the EBA to 2.1 billion euros, also rejected any appeal to the market.

"The economy as a whole has continued to grow in September, although many districts described the pace of growth as" modest "or" low "and contacts have generally found a weakening outlook," says the Fed This situation report.

Wall Street and oil prices went up in free fall as a result of this paper while the price of Treasuries rose.

The memo on the economy the Fed is based on data collected before October 7 and deals with all the economic conditions in the 12 Fed districts, which cover the entire United States.

According to the Beige Book, consumer spending rose slightly in most districts, thanks to the automotive industry and tourism.

There was also an increase in business investment, particularly in construction and mining.

While a number of districts have experienced some recovery in construction activity, "the general conditions of real estate – residential as commercial – are still depressed."

Also according to the survey, several districts noted that many retailers are reluctant to build up stocks despite the approach of the holiday season, reflecting a decline in consumer confidence.

This holiday season – which runs from Thanksgiving to Christmas – is at least half the annual turnover of many stores.

Interviewed on CNBC, the president of the Boston Fed Eric Rosengren said the Fed may have to increase support measures if the U.S. economy weakened further or if it was affected by a new shock.

The number of building permits issued for housing shows a parallel increase of 10.5% over the last 12 months to 490,620 and an increase of 10.6% over June to August, to 133,169.

"Over the past twelve months, new construction, representing over 87% of homes, rose 9.8% over the previous twelve months," the ministry said in a statement.

In the non-residential housing starts were up 7.3% over the past year to 25.35 million square meters, and 26.2% for the three months to 6.18 million m2.

Building permits granted for industrial or commercial premises are up 7.2% over the last 12 months to 36.22 million m2, and 2.8% over three months to 8.95 million m2.

The British news channel SkyNews had indicated this morning that the French group insurance decided to sell its subsidiary AXA Private Equity, adding that it could be worth one billion pounds (1.15 billion euros ).

"It's like any new process," said one source, noting that the figure of one billion sterling mentioned as selling prices seemed quite high.

Axa and its subsidiary did not wish to make comments.

A spokesman for Axa said Axa Private Equity, an AXA IM managed $ 28 billion in assets.

Axa PE announced in August with the acquisition of HSH Nordbank much of a portfolio of 620 million euros, having already completed in June the acquisition of a portfolio of Citigroup for $ 1.7 billion (1, 17 billion) and another from Barclays for 740 million dollars.

In April 2010, AXA Private Equity acquired for $ 1.9 billion of private equity investment in Bank of America, when signing the largest-ever by a single buyer in this market.

The second European airline in terms of sales said in a statement it had carried 6.8 million passengers last month, with revenue per available seat kilometer (RASK) excluding currency "slightly down" from August 2010.

Traffic recorded an increase of 10.7% in the Americas network and 9.0% on the Asia network, for load factors in respective increases of 1.3 points to 89.6% and 1.4 points to 89.4%.

The Caribbean and Indian Ocean network recorded a traffic increase of 10.0% with capacity up 7.1%, while Africa and the Middle East are still affected by political crises and have a stable traffic ( -0.1%) on capacity down 0.5%.

In freight, cargo traffic is also almost stable (-0.2%) with capacity up 2.8%, bringing a decline of 1.9 points in load factor to 62.5% while unit revenue per tonne kilometer (RATK) excluding currency is "up slightly".

Action Air France-KLM on Tuesday completed a course of 5.993 euros, showing a dip of 56% since the beginning of the year.

Meeting in Jackson Hole, Wyoming, the cream of the world economy seems to fear that the slowdown in growth and worsening debt crisis from escalating into a much deeper threat if nothing is done.

By Friday, the Fed chief Ben Bernanke has set the tone, insisting that most of the work to establish a solid foundation supporting growth in the long term was within the White House and Congress.

IMF Executive Director Christine Lagarde warned the next day against the risk of the global economy plunging into recession and called on leaders to "act now", especially for a European bank recapitalization.

"I hope they listen," responded the governor of the Bank of Israel Stanley Fischer.

For Angel Gurria, Secretary General of the Organization for Economic Cooperation and Development (OECD), "Governance is not a very rosy at the moment (…), either in Europe or the U.S. ".

"That's the feeling that emerges from the discussions in the short term, 'We can not even come to an agreement on the time it is, even when there is a huge clock that tells us", has he told Reuters.

DO NOT UNDERMINE GROWTH

United States, the political stalemate has inhibited the proposals to control the country's massive deficit, which led to the edge of default and earned him the loss of its coveted triple-A rating to eyes of the Standard & Poor's.

In Europe, the euro area remains divided on the question of who will pay the debt crisis, exemplified by the divisive debate on the euro bonds or collateral requested by Finland in exchange for his assistance Greece.

Christine Lagarde, whose intervention in Jackson Hole was added at the last minute and reflected his sense of urgency, warned against the too rapid reduction in deficits, which could undermine growth faltering.

She is not alone.

Since the outbreak of the financial crisis, the Fed cut interest rates to near zero and bought 2,300 billion of bonds to support the recovery.Monetary policy has exhausted much of his ammunition, everything depends now on fiscal policy, suggested in Bernanke substance.

"Although the issue of fiscal sustainability needs to be addressed urgently, the heads of budgetary issues should take into account the fragility of the current economic recovery," he argued.

"Warning shot"

According to Glenn Hubbard, dean of Columbia Business School, Bernanke's speech is "a wake-up call for government to say: 'Stop to submit to the Federal Reserve, you have a job to do" .

"The Fed simply said: 'We are monitoring the situation closely but we encourage the government, both parties to get around a table and adopt a plan to strengthen long term fiscal and then maybe a plan stimulus in the short term, "he told the Reuters micro Insider.

These calls from the elite of the world economy could offer unexpected support Barack Obama while his campaign for a second term may begin as ominous a stagnant unemployment rate beyond 9%.

The U.S. president prepares a speech after the Labor Day scheduled Sept. 5, in which he is expected to present proposals to boost employment.

Barack Obama also turned to the tenors of the world economy.

The tenant of the White House and German Chancellor Angela Merkel met Saturday by telephone from the crisis in the euro area and the turmoil in financial markets, vowing to take measures to revive the global economy.

The day before, Barack Obama spoke with Christine Lagarde and the two agreed that the economy needed short-term measures to support new growth.

European side, the question of the soundness of the banking sector returns insistently.

Christine Lagarde and the President of the European Central Bank Jean-Claude Trichet have both stressed the strengthening of bank balance sheets, the executive director of the IMF even calling to make a "substantial recapitalization."

"While policy dialogue is clear, the uncertainty generated by political posturing in Europe and the United States creates serious risks", says Eswar Prasad, a professor at Cornell University.