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The Slovak parliament on Tuesday rejected the expansion of the European Financial Stability Fund (EFSF), which the government was liable, but the text should be adopted in a second vote, outgoing Prime Minister intending to appeal to opposition voices.

The result was expected, since a component of the ruling coalition had indicated that its elected officials abstain. The Smer, the main formation of the opposition, has also said he was ready to vote on the text after the government fell.

The expansion of EFSF was approved in 16 other member states of the euro area.

Representatives in Greece of the European Union, the International Monetary Fund and the European Central Bank Monday morning talk with the Finance Minister Evangelos Venizelos in order to conclude discussions on a new package of financial assistance, has one source close the negotiations.

Without this amount of eight billion euros, the Greek state could be short of cash by mid-November and go in default of payment, major risk for the entire euro area.

"We are working on the assumption that the meetings will conclude today," the source told Reuters on condition of anonymity.

The delegates of the "troika" EU-IMF-ECB must then publish a joint statement on Monday or Tuesday, concluding their tasks, then contact the finance ministers of the euro area and the Board of Directors of the IMF reports that the decision will depend on the payment or not the new tranche of funding.

Last week, representatives of the troika had said they wanted, before concluding their mission, have details of the implementation plans and the impact of downsizing of the Greek civil service and increasing taxation.

French and German leaders pledged Sunday to unveil before the end of the month a new set of measures to resolve the debt crisis in the euro area.

However, no details were provided on the plan. Paris and Berlin have also glossed over their disagreements about the rescue of European banks.

Greece said on Monday morning have enabled support system to help the bank Proton, which is thereby de facto nationalized as it is already under investigation on suspicion of Greek offense rules on money laundering.

Greek banking stocks fell by 11% due to fears that other institutions across the country have also need government help.

To address the credit crunch, the Prime Minister announced that local authorities will receive a loan of 3 billion euros. French Prime Minister: Francois Fillon REUTERS / Jacky Naegelen (FRANCE – Tags: POLITICS)

François Fillon said on Friday the release of three billion euros in loans to help local authorities, faced with the difficulties of banks and the drying up of credit offers to wrap their funding for 2011. "The funding needs of communities must be met to enable them to carry out their investments.That's why I decided that the Deposit would set up a budget of three billion euros to fund loans to local authorities between now and the end of the year, "said the Prime Minister at a shift in Richelieu (Indre-et-Loire).

"I ask Baroin and CEO of the Deposit (…) to ensure that the auctions of the corresponding amounts to lending institutions can be initiated within 15 days," said Mr. Fillon. According to a survey conducted in September by several associations of elected representatives, many local authorities face difficulties in borrowing from banks.

"This is almost systematic refusal when the community does not have long-term loans or do not wish to subscribe again," the study said adding that the banks argue the new Basel banking standards 3 with elected officials to justify the shortage. These standards penalize long-term financing that are not backed by stable resources such as bank deposits. "Basically, this means that we can not lend unless the borrower has savings," noted a banker. "But communities spared nothing."

The device will be launched "based on that the government had set up in 2008 and had been able to satisfy the financing needs of communities at the time the bank has showed signs of drying up," said the Prime Minister.

Local governments provide about 75% of public investment civilian.

The European Central Bank (ECB) believes that the threats have intensified to the economy of the euro area and will provide liquidity to banks to longer term to avoid a new erosion of liquidity (credit crunch).

The ECB left its rates unchanged on Thursday – its refinancing rate thus remaining at 1.5%, as expected by the markets most often – at the end of the last meeting of President Jean-Claude Trichet, who will forward the torch to his successor, Mario Draghi at the end of the month.

The Bank of England also kept the status quo, but it announced that it injected 75 billion sterling in the UK economy more.

"The economic outlook remains subject to a particularly high uncertainty and downside risks of intensified," said Jean-Claude Trichet during his traditional press conference, held this time in Berlin.

Its diagnosis is darker than last month, when he limited to detection of downside risks, and investors may well conclude that a rate cut is coming.

The ECB raised interest rates twice this year and it is possible that inflation rose to 3% last month, while its goal is to just under 2%, is prevented from reversing steam on the field.

"Inflation has remained high …and likely to remain above 2% in the coming months before declining thereafter, "observed the chairman of the central bank.

"It is likely now that the ECB is preparing a rate cut in the next four months, by March at the latest," said Holger Schmieding, economist at Berenberg Bank.

NOTHING TO DO WITH EFSF

To help banks to withstand a worsening crisis of sovereign debt in Europe and the growing tensions in the interbank market, the ECB has raised its tender for a year and a little more, this one taking place month and the other in December.

"The Governing Council decided to conduct two refinancing operations in the longer term, one with a maturity of approximately 12 months in October and the other with a maturity of approximately 13 months in December, these operations will be conducted following standard procedures of the fixed rate allocation with unlimited, "said Jean-Claude Trichet.

The tenders a year were introduced in June 2009 and the first operation of this title has generated unprecedented allocation of 442 billion.

Jean-Claude Trichet said the ECB would resume its purchases of bonds by reopening the program of 60 billion euros applied from 2009 to 2010.She will spend this time 40 billion euros to the thing over a period of 12 months from November, the transactions taking place on both the primary and secondary market.

"Providing liquidity and allocation methods for refinancing operations will always ensure that banks in the euro area are not subject to tensions with regard to liquidity," commented Jean-Claude Trichet. "All unconventional measures taken during the acute tensions in the market are, by nature, temporary."

Although qu'usant measures called unconventional, Jean-Claude Trichet has nevertheless called for a certain orthodoxy in the means of action of the ECB.He thus rejected the idea of ​​transforming the European Financial Stability (EFSF) in a financial institution may solicit funds from the bank.

"I would say (…) that the Board of Governors does not consider it appropriate that the ECB boosts the EFSF," he said.

Apple Tuesday unveiled its new iPhone, an updated version of its iPhone 4 launched in June 2010, but not a real 5 iPhone as some fans had hoped.

The disappointment of some fans who were waiting to be surprised by something sensational, has plunged the share price. End of the session, it was trading down over 4% to 359.70 dollars.

The new CEO of Time Cook assured his first major launch of a new Apple product with aplomb. The emblematic figure of the group's founder and now chairman Steve Jobs, made no appearance at the event, as some had hoped.

The new iPhone, the iPhone 4S, faster, improved and equipped with voice recognition.The camera feature has been improved.

"It's been 16 months and all we have is a processor in the iPhone A5 existing four," said Colin Gillis, an analyst at BGC Partners.

This was highly anticipated iPhone while the phone in Google's Android software, such as those of South Korea's Samsung Electronics, Apple's approach.

More than 550,000 Android devices, including tablets, are turned daily.

Apple has sold over 20 million iPhones during its third fiscal quarter, which ended June 25

The iPhone, which represents over 40% of the revenues of the California firm, has been a success since its release in 2007.This smartphone has the task Cupertino one of the great world of consumer electronics.

According to Nielsen, the iPhone is number two in the U.S. with a market share of 28% with 43% behind Android.

Worldwide, shipments of the iPhone increased by 9.1% in the second quarter, while those of Nokia handsets dropped by over 30%, which has made Apple the world leader with a share of market of 18.4%, according to iSuppli IHS. Samsung, whose shipments rose faster, sometimes very quickly with a market share of 17.8%.

Tuesday's show, "Let's talk about iPhone," marked the unofficial debut Tim Cook since his arrival in the general direction of Apple in late August, replacing Steve Jobs, who was on temporary sick leave since January.

Bank stocks and insurance Monday accusing the largest declines sector in Europe, sealed by the accumulation of bad news on the crisis of sovereign debt in the eurozone.

Greece has confirmed that it will fail to reduce its public deficit as required by its lenders, while the finance ministers of the Eurogroup will meet against a backdrop of high investor confidence in their ability to find an answer common and credible to the crisis.

Around 12:30, the Stoxx index of European banks loose 2.78% and 2.57% insurance.

In Paris, Societe Generale (-5.75%), BNP Paribas (-5.61%), Credit Agricole (-4.51%) and Axa (-3.92%) among the five largest declines the CAC 40 losing 2.18.

Dexia shares fall 8.78%, Moody's notes that have the Franco-Belgian bank supervision.

"It is clear that no major decision should be expected of the Eurogroup (…) Hopefully ministers do not blow on the embers," say the strategists rate of Societe Generale.

The terms of private sector, including banks and insurers, the new aid package to Greece are still under discussion and weigh on financial stocks.

In a note published Monday morning, JP Morgan believes that Europe should have, like the United States, device type TARP bank support bearing claims devalued.

EURO BANKS ARE NOT CHEAP

"We continue to believe that a solution like TARP would be the best way to reopen the finance market and a solution is needed before 2012, while debt financing needs of medium and long term will approach 500 billion euros, "said the broker.

According to JPM, a "Euro Tarp" would be a way to re-evaluate the bank stocks that are trading at 30% or 40% of their net assets.

In the current environment, JP Morgan estimates that European banks, trading at 0.76 times book value and a 2012 price / earnings ratio of 6.9 times earnings in 2012 "do not seem cheap."

"With the continued concerns over sovereign debt, we believe it unlikely that continuation of the rise of European banks (seen last week, in particular, SocGen, BNP and Commerzbank) and prefer U.S. banks whose capital positions are better" JPM said.

In a memorandum to insurers, Natixis said on his part that "the sector is currently suffering (…) (of) losses on fears of sovereign debt PIIGS (Portugal, Ireland, Italy, Greece, Spain), (the ) decline in long rates in countries outside PIIGS, which gradually erodes the profitability of the portfolio insurers (and) sharp decline in equity markets, resulting in impairments in the accounts of T3/S2 insurers."

According to Natixis, the equity portfolios of the insurers were on average in unrealized gains of 15% at end June

"But even in a scenario incorporating drive (which we do not believe) of impairments on PIIGS, including Spain and Italy, and almost stable in long rates and equity markets, some titles retain appreciation potential" , adds the intermediate cites Scor, Allianz and Axa on which it is to buy down while adjusting its price targets.