FITCH WARNED FRANCE THAT ANY NEW SHOCKS TO ITS PUBLIC FINANCES DUE TO FURTHER SLOWING IN GLOBAL ECONOMY WILL ENDANGER ITS A-A-A STATUS. FITCH HAS ALSO DOWNGRADED ITS CREDIT RATING FOR PORTUGAL FROM BBB- TO BB+ CITING "LARGE FISCAL IMBALANCES" AND "HIGH INDEBTEDNESS ACROSS ALL SECTORS" AS THE REASONS. THE DOWNGRADE ALSO MEANS JUNK STATUS FOR THE COUNTRY. THE RATINGS AGENCY HAS ALSO LOWERED ITS GROWTH FORECASTS.
THE I-F-O INDEX OF GERMAN BUSINESS SENTIMENT ROSE UNEXPECTEDLY TO 106.6 IN NOVEMBER FROM 106.4 IN OCTOBER. ECONOMISTS HAD EXPECTED A DROP TO 105.1. EURO GAINED AFTER THAT ANNOUNCEMENT BUT HAS NOW TURNED NEGATIVE AGAIN.
MENAKA DOSHI SPEAKS TO LYN GRAHAM-TAYLOR, FIXED-INCOME STRATEGIST AT RABOBANK
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