Moody's warns of lowering Portuguese debt rating

Moody's warns of lowering Portuguese debt rating
Moody's warned on Tuesday it may lower by one or two notches Portugal's A1 rating owing to uncertainty about growth and borrowing prospects, but said it expected Lisbon to be able to pay its Debts. "In Moody's opinion, Portugal's solvency is not in question," Anthony Thomas, Moody's Vice President and lead analyst for Portugal was quoted as saying in a statement. Moody's emphasised its concern over Portugal's growth prospects, which will affect its long-term ability to repay debts, rather than m...

China ready to buy $5.3 billion of Portugal debt: report
Lisbon | Wed Dec 22, 2010 4:54am EST Lisbon (Reuters) - China is ready to buy between 4 billion Euros ($5.26 billion) and 5 billion Euros of Portuguese sovereign Debt to help the country ward off pressure in Debt markets, the Jornal de Negocios daily reported on Wednesday. The paper added, without citing sources, that a deal reached between the two governments will lead to China buying Portuguese Debt in auctions or in the secondary markets during the First Quarter of 2011. Portugal has moved...

Greeks go on strike before austerity vote
Greek unions called a general strike on Wednesday and Athens was paralysed by a 24-hour public transport stoppage in Protest against the government's 2011 Budget, set to pass later as part of an EU/IMF Bailout. The Budget, meant to help stem a Debt crisis that has shaken the euro zone, includes further tax hikes and wage cuts in state-run enterprises, especially in public transport. Fitch said on Tuesday it may cut Greece's Credit Rating next month to junk as both other major rating agencies hav...

Greeks strike before austerity budget vote
By Renee Maltezou and Ingrid Melander Athens | Wed Dec 22, 2010 7:39am EST Athens (Reuters) - Greeks staged a three-hour general strike in Athens on Wednesday against the 2011 Budget which imposes yet more Austerity on the Debt-laden nation, but parliament was set to pass the bill later in the day anyway. Public transport ground to a halt in the city, but some Greeks questioned the point of countless strikes and Protests this year which have failed to divert the government from an Austerity p...

Greeks strike before austerity budget vote
By Renee Maltezou and Ingrid Melander Athens | Wed Dec 22, 2010 7:39am EST Athens (Reuters) - Greeks staged a three-hour general strike in Athens on Wednesday against the 2011 Budget which imposes yet more Austerity on the Debt-laden nation, but parliament was set to pass the bill later in the day anyway. Public transport ground to a halt in the city, but some Greeks questioned the point of countless strikes and Protests this year which have failed to divert the government from an Austerity p...

Greeks strike before austerity budget vote
Athens (Reuters) - Greeks staged a three-hour general strike in Athens on Wednesday against the 2011 Budget which imposes yet more Austerity on the Debt-laden nation, but parliament was set to pass the bill later in the day anyway. Public transport ground to a halt in the city, but some Greeks questioned the point of countless strikes and Protests this year which have failed to divert the government from an Austerity path demanded by the nation's EU/IMF Bailout. At the same time the series of s...

Moodys Warns Portugal of Downgrade
Source: Reuters Lisbon (Reuters) - Moody's Investor Service warned on Tuesday it may downgrade Debt-ridden Portugal's A1 rating by one or two notches after a review that will take up to three months, citing weak growth prospects and high borrowing costs. Portugal has moved into the eye of the storm in Europe's debt crisis, with markets worried it will be next to take a Bailout after Ireland and Greece, although Moody's said its solvency was not in question. The premium investors demand to hold...

Berlusconi Cites Debt Crisis in Fight to Survive: Euro Credit
Dec. 13 (Bloomberg) -- Silvio Berlusconi’s fight for his political life enters its final round today with the Italian premier using the European Debt crisis as a shield. “We could become targets of international speculators like Greece, Ireland and Portugal, a tragic risk with disastrous consequences,” Berlusconi told supporters in Naples on Dec. 5. “The Ratings agencies have confirmed our top rating but have said that it’s conditional on maintaining political stabi...

Strike hits Greece ahead of vote
Greece crisis: Is there an exit? Public transport Unions have staged a further strike in Greece as the country's parliament prepares to vote on the 2011 Budget. The 24-hour strike has caused traffic chaos in Athens as commuters struggled to get to work by car or taxi. Unions are protesting over cuts to wages, which are part of a national Austerity programme. The budget, which is designed to satisfy bail-out requirements by the EU and IMF, is expected to pass. The strike includes public tr...

Greeks go on strike before austerity budget vote
Athens | Wed Dec 22, 2010 5:21am EST Athens (Reuters) - Greek Unions called a general strike on Wednesday and Athens was paralyzed by a 24-hour public transport stoppage in Protest against the government's 2011 Budget, set to pass later as part of an EU/IMF Bailout. The Budget, meant to help stem a Debt crisis that has shaken the euro zone, includes further tax hikes and wage cuts in state-run enterprises, especially in public transport. Fitch said on Tuesday it may cut Greece's Credit Rating...

Crisis-hit Greece gets new ratings warning
Athens, Greece—Fitch Ratings agency on Tuesday warned of a possible downgrade of Greek bonds, adding pressure on the government as it debates the 2011 Budget in parliament. Fitch said that the action "indicates that there is a heightened probability that Greece's sovereign Ratings will be downgraded" from its current BBB- status after a review is completed next month. It follows similar warnings from Ratings agencies Moody's and Standard and Poor's earl...

Portugal faces rating cut, Spanish debt costs rise
LISBON/Madrid (Reuters) - Portugal was put on notice on Tuesday that its Credit Rating could be cut and fellow euro zone debtor Spain had to pay more to issue new Debt, suggesting the currency bloc's crisis will rage unabated in 2011. China, the world's new economic powerhouse, urged European policymakers to demonstrate as a matter of urgency that they can contain the euro zone's debt problems and pull the bloc around. Ratings agency Moody's said it may cut Portugal's Credit Rating by one or two...

Gates of Vienna News Feed 12/21/2010
The United States Senate voted 67 to 28 to clear the “New Start” Arms Control treaty for a final vote, so that the treaty is all but certain to be ratified. Eleven Republicans joined with the Democrats to vote in favor of it. Sen. John Kerry hailed the vote as an important step towards drastically reducing the danger of Nuclear Weapons. In other news, the Chinese commerce minister says his country is “very concerned” about Europe’s Debt crisis. As well it should be ...

Morning Roundup: Have You Heard the One About Basel III?
Deutsche Bank is settling a suit by the U.S. Attorney's office in Manhattan alleging that the company provided tax shelters for wealthy Americans. The alleged Windfall for clients: $29 billion. The settlement payment: $553 million, and an admission of wrongdoing. Hey, those admissions of wrongdoing don't come cheap. [NYT] Former Hewlett-Packard CEO Mark Hurd is interested in keeping a letter accusing him of Sexual Harassment under seal. [WSJ] Banks basically set the agenda for how Basel III c...

Europe still cant turn the page
As we are on the cusp of rapping (pun intended) up 2010, one of the main issues that impacted markets that of sovereign European Debt problems, remains in full force. After seeing Bailouts for Greece and Ireland and now the implementation of a permanent bailout facility we’ve learned that outside of temporarily saving senior bank bondholders, the actions have done nothing to calm investor concerns as funding costs are still very elevated. While markets are thin this week and let’s ...

Greece to vote on 2011 austerity budget
Greek lawmakers on Wednesday wrap a five-day debate on a Budget containing over 14 billion Euros in savings under a tough Austerity policy imposed after the country's Bailout by the EU and the IMF. The Socialist Government of George Papandreou has a six-seat majority in parliament and is expected to carry the vote to be held after midnight. The 2011 Budget includes cuts in the badly mismanaged Greek health sector and public companies, a two-percent increase in the lower Sales Tax rate from 11 to...

China ready to buy $5.3 billion of Portugal debt: report
The paper said, without citing any sources, that a deal reached between the two governments will lead to China buying Portuguese Debt in auctions or in the secondary markets during the First Quarter of 2011. China's Central Bank declined to comment on the report. The euro rose to the day's high versus The Dollar on Wednesday on the back of the report, climbing around 30 pips to a session high of $1.3168 according to Reuters data. Portugal has moved into the eye of the storm in Europe's Debt cri...

Protests in Athens before austerity budget vote
Protests and rubbish clogged central Athens on Wednesday as lawmakers prepared to approve an Austerity Budget under a tough economic overhaul imposed after the Debt-hit country's international Bailout. Unionists, Communists and leftists staged separate demonstrations to reject the economic blueprint containing over 14 billion Euros in savings for 2011 in a bid to restore balance to Greece's woeful public finances. The streets of the capital were already clogged with traffic since morning from a ...

FOREX-Euro helped by report China will buy Portugal's debt
Wed Dec 22, 2010 7:49am EST * Euro gets lift from report China will buy Portuguese Debt * ECB tender shows heavy reliance on cheap funding * Euro hovers near all-time low vs Swiss franc (Adds detail, updates prices) By Anirban Nag LONDON, Dec 22 (Reuters) - The euro gained against The Dollar and bounced from all-time lows against the Swiss franc on Wednesday, boosted by a news report that China was ready to buy significant amounts of Portuguese Sovereign Debt. The Jornal de Negocios daily rep...

Portugal's debt rating set to be cut
The Ratings agency Moody's has said it may cut Portugal's rating by one or two notches within three months, citing weak growth prospects as the government seeks to cut its Debt. The warning came as Spain had to pay more to issue new debt yesterday. ...

Spain OKs 2011 austerity budget, saving PM his job
MADRID (AP) - Spain's Parliament passed an Austerity Budget for 2011 by a razor-thin margin on Tuesday, saving embattled Prime Minister Jose Luis Rodriguez Zapatero his job and giving him a victory in his bid to convince markets that the nation will take control of its finances and avoid a Greek style-bailout. The lower house of Congress passed the Budget in a 177-171 vote, approving a euro122 billion ($160.4 billion) 2011 spending plan that cuts spending 8 percent compared with 2010 and sets f...

Portugal faces rating cut, Spanish debt costs rise
By Andre Khalip and Nigel Davies LISBON/Madrid | Tue Dec 21, 2010 7:08am EST LISBON/Madrid (Reuters) - Portugal was put on notice on Tuesday that its Credit Rating could be cut and fellow euro zone debtor Spain had to pay more to issue new Debt, suggesting the currency bloc's crisis will rage unabated in 2011. China, the world's new economic powerhouse, urged European policymakers to demonstrate as a matter of urgency that they can contain the euro zone's debt problems and pull the bloc aroun...

Portugal faces rating cut, Spanish debt costs rise
By Andre Khalip and Nigel Davies LISBON/Madrid | Tue Dec 21, 2010 7:08am EST LISBON/Madrid (Reuters) - Portugal was put on notice on Tuesday that its Credit Rating could be cut and fellow euro zone debtor Spain had to pay more to issue new Debt, suggesting the currency bloc's crisis will rage unabated in 2011. China, the world's new economic powerhouse, urged European policymakers to demonstrate as a matter of urgency that they can contain the euro zone's debt problems and pull the bloc aroun...

Ireland's credit rating slashed five notches (by private company that helped precipitate the country's crisis)
© Peter Morrison/AP Thousands of demonstrators march through Dublin last month to Protest against Budget cuts and the EU-IMF Bailout. Moody's downgrades Ireland's Credit Rating and maintains 'negative' outlook on concerns cuts will hurt domestic demand Ireland's Credit Rating has been slashed by five notches by Moody's, which also warned that the country faced an increasingly uncertain economic future. Moody's said that the cost of rescuing Ireland's banking sector meant Irish Debt was ...

One Minute Macro Update
US : Futures firm this AM as the light volume week continues. Europe continues to dominate headlines as yesterday saw some firming of the front end and Fed Rate expectations as the back end sold off – erasing mid day gains. This week and next seem more about quietly positioning for next year rather than actual direction. With the CDS roll behind us, we will get a better idea of short risk activity going into the 1Q11. Europe : Post roll, sovereign spreads are wider as news that China would...