France

Europe's single currency reached a 15-month low against the dollar following a French bond auction this morning which saw almost all of the €8bn of debt targeted being sold.

THE EUROZONE

Head of the International Monetary Fund (IMF) Christine Lagarde has warned the world economic outlook is "gloomy" and no country is safe from rising risks.

The head of the Bank of France has attacked the UK's AAA-rating and called for it to be downgraded - as expectations increase of a downgrade to France's rating.

European leaders have abandoned plans for bondholders to bear the brunt of sovereign debt collapses, following talks overnight to tackle the eurozone crisis.

Credit rating agency Moody's has downgraded three of France's largest banks, warning their creditworthiness has been damaged by the European debt crisis.

Angela Merkel and Nicholas Sarkozy are set to meet today as political commentators warn Europe is entering the end game for the crisis, which must be resolved this week to save the euro.

Key eurozone sovereign debt yields have fallen sharply after successful debt auctions and comments from ECB president Mario Draghi boosted investor confidence.

Credit rating agency Moody's has warned on the status of France's AAA-rating after the yield on its bonds spiked last week.

The euro weakened this morning as the cost of insuring French bonds climbed to a record, Spanish yields rose and european equities retreated for a second day.