Wednesday morning news can best be summed up in the headlines of the International Financial Newspapers
THE LIGHT AT THE END OF THE TUNNEL HAS JUST GOT DIMMER FOR US ALL.. The Hearld in response to George Osborne’s speech. BRITAIN’S squeezed middle is just about to get squeezed some more.
EUROZONE FINANCE MINISTERS LIKELY TO MISS RESCUE TARGET..Plans to expand the eurozone’s debt rescue fund to about 1tn euros ($1.3tn; £860bn) look unlikely to be achieved. BBC News.
The International Business Times opened with S&P DOWNGRADES 37 LARGE BANKS and continued with EUROPEAN SHARE RALLY ENDS
MARKET TO ECB: DOSOMETHING! From CNN Money with a second story entitled A FRENCH DOWNGRADE COULD DERAIL EUROZONE RESCUE
MOST ASIAN STOCKS DECLINE AS S&P CUTS U.S. BANKS’ CREDIT RATINGS the cover of BusinessWeek
BRITAIN BRACED FOR AGE OF AUSTERITY from API
Not a word about Black Friday, Cyber Monday. The magicians act worked for a day or two, but now the smoke and mirrors are gone and reality is about to set in.
Last night S&P and Moodys, got out their red pen and began slashing ratings. Bank of American dropped to a new low nearing the critical point of 5.00 per share.
Asian markets are the first to react to the late news from yesterday. Most Asian stocks fell after Standard & Poor’s reduced credit ratings for lenders including BofA., Goldman Sachs Group Inc. and Citigroup Inc. as Europe’s debt crisis cuts the global earnings outlook.
Bank of America, Goldman Sachs and Citi had long-term credit grades reduced to A- from A by Standard & Poor’s after the ratings firm revised criteria for dozens of the largest global lenders. China Construction Bank Corp.and Bank of China Ltd., the nation’s No. 2 and No. 3 lenders, were upgraded to A from A-, joining Industrial & Commercial Bank of China Ltd., the world’s biggest bank by market value on higher ratings than their U.S. rivals. Sumitomo Mitsui Financial Group Inc. Japan’s second- biggest bank by market value, fell 1.4 percent. The MSCI Asia Pacific Index fell 0.3 percent to 112.81.
The markets are also reflecting dissapointment Europe, effort to expand its bailout fund which seems to be falling short, forcing euro-area finance ministers to consider greater roles for the International Monetary Fund and the European Central Bank to insulate Spain and Italy from the debt crisis.
An agreement hammered out last month to expand the European Financial Stability Facility’s firepower to 1 trillion euros with leveraging will be “very difficult to reach,” was quoted by a Finance Minister .
The European situation is still at the center of market concerns, Investors will likely sell shares to lock into profit after recent gains.