euro area

added some ES shorts by 1184
S&P DOWNGRADES SPAIN LONG TERM RATING ONE NOTCH TO AA FROM AA+; OUTLOOK NEGATIVE
– S&P: “In our opinion, Spain is likely to have an extended period of subdued economic growth, which weakens its budgetary position. The negative outlook reflects the possibility of a downgrade if Spain’s budgetary position underperforms to a greater extent than we currently anticipate.”
– “The downgrade primarily reflects Standard & Poor’s downward revision of its medium-term macroeconomic projections. “We now believe that the Spanish economy’s shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed,”

Greek Govt Spokesman: S&P downgrades today prove debt issue is a wider problem, not just Greece
– Would like to wrap up talks with EU/IMF as soon as possible to get aid flowing.
– Insists Greece is doing all it can to wrap up the deal with the IMF and the EU, calm markets.

S&P: “Under our revised base case economic growth scenario, we expect the Portuguese government could struggle to stabilize its relatively high debt ratio over the outlook horizon until 2013. Portugal’s public finances in our view remain structurally weak, notwithstanding the government’s substantial public sector reforms of recent years. we expect that the Portuguese government would need to implement fiscal consolidation over and above its current plans. Portugal’s fiscal indicators, as well as its growth outlook, in our view compare unfavorably with the ‘A’ median for sovereigns. ”
– S&P “We have revised downward our growth scenario for Portugal and now expect economic activity to stagnate in 2010. ”
– We expect government debt to continue to rise rapidly, to 95% of GDP by 2013 from 66% in 2008. Fiscal imbalances and high debt rollover in our opinion leave Portugal vulnerable to changes in investor sentiment. The resulting interest rate shock or further shocks to economic growth could in our view lead to a significantly more pronounced increase in the government’s debt ratio.

I find more and more in the press, what big business thinks sooner or later, but Greece will default within 2-3 years, if not earlier, regardless of help in the short term. It would be nice for bears in the stock market earlier :)

Not expected, what the ECB representative has to say, that the sovereign debt crisis is just beginning!

(EU) ECB’s Stark: Inflation risk appears to be tilted to the upside, uncertain whether global recovery is sustainable, may have already entered sovereign debt crisis

How many countries are still ahead and will the market be able to withstand the pressure of negativity??!

Today 06:03am EST / 10:03am GMT
*(PO) FITCH DOWNGRADES PORTUGAL SOVEREIGN RATINGS TO AA- from AA (one notch); outlook Negative – The agency has simultaneously affirmed Portugal’s Short-term foreign currency rating at ‘F1+’ and more…

Today 06:05am EST / 10:05am GMT
(EU) ECB’s Bini Smaghi: IMF involvement with Greece would hurt the euro’s image; should not leave the fate of the euro to market forces – Greece’s insolvency would impact all European banks –

.

We will eat you, when you go bankrupt….Keep it up Germany ! :))

Today 03:12am EST / 07:12am GMT
(GR) German Fin Min Schauble: Germany not to be involved in any EU commission loan but would act if Greece becomes insolvent – German press