PARIS (MNI) - The day after mass demonstrations in France against the government's pension reform bill, President Nicolas Sarkozy proposed several minor adjustments to the plan to allow more people to retire early.

However, the "primary axis" of the reform -- which pushes back the minimum retirement age from 60 to 62 and the age for retirement with full pension from 65 to 67 -- is not open to negotiation, Sarkozy said after the weekly cabinet meeting.

"There is no question of revisiting this point," he declared in a written statement.

LONDON, Sep 8 (MNI) - Continued concerns over eurozone sovereign debt acted to weigh further on the euro during European morning trade, with sales reversing an early recovery attempt that saw rate push up to $1.2733 before dropping back to $1.2660.

Late morning saw rate edge back above $1.2700, disregarding a weak release in German industrial production data, as a short squeeze developed ahead of the NY open.

LONDON (MNI) - The euro LIBOR/OIS 3 month spread tightened again Wednesday, despite 3-month LIBOR nudging higher.

Earlier Wednesday the Euribor 3-month rate fell 0.1 basis points Wednesday on the day, as it has done on every working day so far in September. Euro 3-month LIBOR did not follow suit, rising 0.125 bps on the day.

With OIS moving higher, the 3-month euro LIBOR/OIS spread tightened 0.275 basis points to stand at 33.309 basis points.

LONDON (MNI) - European credit markets have seen a mildly soft session with spreads edging wider in places. The notable underperformer again today in the financial sector, where medium and high grade single names continue to see sharp widening in places, mirroring, to a degree, weakness seen in European government bond spreads today, where Greece, Portugal and Ireland widened.

LONDON (MNI) - European credit markets have seen a mildly soft session with spreads edging wider in places. The notable underperformer again today in the financial sector, where medium and high grade single names continue to see sharp widening in places, mirroring, to a degree, weakness seen in European government bond spreads today, where Greece, Portugal and Ireland widened.

LONDON, Sep 8 (MNI) - M&A-linked sterling demand into early Europe provided the main drive as the pound made general gains, cable pushing up to a high of $1.5495, while euro-sterling was able to extend its corrective pullback from Monday highs of stg0.8390 to stg0.8202.

Release of stronger-than-forecast Halifax house price data and UK industrial production/manufacturing output coming in at expected levels, also aided sterling's recovery. The pound held off best levels ahead of the NY open, though the underlying tone remains buoyant.

FRANKFURT (MNI) - Germany sold E1.981 billion in inflation-linked bonds ("linkers") in a top up of its 1.50%-coupon 10-year linker with 2016 maturity at a real average yield of 0.19%, the Bundesbank announced Wednesday.

The bid/cover ratio (excluding retention) was 1.9, above the 1.8 b/c at this security's last auction on June 11, 2008.

The lowest accepted price was 107.19, while the average weighted price was 107.26. The government accepted 75% of the bids at the lowest accepted price.

LONDON, Sep 8 (MNI) - Despite the negative tone in European credit and equity markets so far today, the expected rush of new issues has begun to materialise, with a number of benchmark deals to add to the pipeline this morning.

Swedish Housing Finance Corp is to issue a benchmark, 3 year FRN deal in Euros. Price talk is in the Euribor plus high-60s area and the leads are Barclays, Deutsche Bank and JPMorgan.

RBS is to issue a benchmark, 2 year FRN deal in Euros. Price talk is in the Euribor plus 145-150 bps area and the deal is to be self-led.