As if were a few problems of the Spanish economy, the rating agency of international risk, Standard & Poor s (S & P) downgraded note for debt long-term of Spain to AA + from AAA. In England, for its part, yesterday an encouraging day nor be lived. Gordon Brown’s Government had to leave again to announce a second package of rescue measures for the banking system in English, in order to protect the banks of the risks of toxic loans and reactivate the credit business. Brown also announced a new Fund of the Bank of England by 50 billion pounds to buy titles of quality companies and protect them in the absence of credit. The Government rescue package English prevented that the announcement by the Royal Bank of Scotland (RBS) of losses by up to 28 billion pounds in 2008, produced also in the day yesterday and the interannual drop of 7.3% in the price of housing (its lowest value since June 2006), negatively with higher hardness in the financial markets. In the week also the rating agency S & P slashed the credit rating of Greece sovereign debt due to the fall of economic competitiveness and the growing fiscal deficit. Read additional details here: John Lithgow.
Do so the rating of sovereign debt of Greece, passed to A-/ A-2? from A-/ A-1? This, being the youngest of the entire eurozone. S & P became also the perspective of the rating of sovereign debt of Ireland from stable to negative this strong deterioration both in the data on prospects for Europe’s economy, reducing inflationary expectations and gives more leeway both to the Bank of England as the European Central Bank for new rate cuts, though perhaps this last not I would be willing to break a self-imposed minimum level (which could be in 1.5%). In addition, the more negative picture that opens to the European economies threatens to undermine the value both the pound sterling and the euro, in terms of the dollar (and perhaps also in terms of the yen, although in this case must be observed carefully how it evolves the Japanese economy troubled by many problems).
| January 25th, 2022 | Posted in News |