May read the "agency downgraded the French" it not for hewlett-packard company (NYSE: HPQ) collapse of the big news this morning. The reality of the situation is relegation irrelevant. Moody's has French AAA rating on negative credit observation, to Aa1 from AAA degradation is a gap. Moody's still retained the prospect of France as negative.
We warned that the French are very likely to face the risk of "AAA" rating and several other major European countries, as early as in August 2011. Rating agencies action too slow.
It is early in July 2012, moody's changed the prospect of France for negative, as well as with other AAA rating of Germany, Luxembourg and the Netherlands. Our view is, more degradation to Europe. It will be the only degradation. Moody's said, the French economy's long-term growth prospects of the negative influence of the structure of the more challenge, due to the worsening economic outlook. Moody's said:
French predictability against the impact of the euro zone of the future is weakening economic growth and financial performance and the cost of money the rising risk. The French Europe neighboring countries through the trade relation and its banking system risk particularly big, and its natural support other eurozone member obligations have been on the increase. In addition, and other than the eurozone sovereign countries similar high ratings, France nor a country central bank debt financing market interrupt event.
Don't forget to call growth. Today's report says, suppose to 0.8% in 2013 and GDP growth of 2.0%, from 2014 onwards, the government budget office is too optimistic. The company also said that, and unemployment rises, consumption level, drag plus tax, the per capita disposable income growth of the weak housing market is a correction of all problems.
So, the bad news? Forget it. Is this the last credit rating agencies degradation. IShares AnShuo MSCI French index (NYSEMKT: EWQ) is flat at $21.39. If it is a huge event you will see martket, fell more than 2%. Paris CAC 40 grew by 0.5% in real terms. Some American depository receipt more than the whole of the French stock market reaction different:
Alcatel lucent SA (NYSE: ALU) fell 0.5% at $1.005.
France telecom (NYSE: FTE) fell 0.2% at $10.41.
Total company (NYSE: TOT) dropped 0.4% at $48.75.
Veolia environmental SA (NYSE: VE) is the actual growth 4.5% at $10.06.
This move, degradation? This is just a after the call.
FULL moody's demotion
JON c. OGG




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