The United Kingdom should lose its AAA credit rating and be cut by four notches to A+, according to analysts at Danske Bank in Copenhagen.
The call for further quantitative easing by business leaders in the UK to reboot the economy has divided analysts and commentators between those who fear it will create a bigger deficit and those who argue that it is needed to stave off another recession.
The UK's credit rating is four notches too high at present, and should be downgraded to A , John Hydeskov, senior analyst at Danskebank, told CNBC. The analyst predicted that the UK would be formally downgraded in 2012, as a result of falling real growth and rising national debt.
With his approval ratings on the floor, President Barack Obama will on Thursday unveil an eagerly awaited speech on job creation that will define the 2012 battle for the White House.
On Wednesday, investors will wait with bated breath for news from Germany again, where the Federal Constitutional Court has the power to make or break the fate of the euro zone.
Sometimes a summer vacation can set you up for the autumn, allowing you some-hard earned rest to recharge the batteries before returning to the office, light of heart and confident about the prospects for the rest of the year.
Greater fiscal and political union is needed in Europe, and will be discussed by euro zone leaders within months, Joaquin Almunia, EU Competition Commissioner, told CNBC Saturday.
Despite a bounce in the S&P 500 index this week, many investors see the odds stacked against the bull market making it into 2012.
A few years ago, I pointed out in a column that the cost of insuring the US government against a default in the credit derivatives market, had risen above that of McDonalds, the US fast food company, for the first time, the FT's Gillian Tett writes.
German “bad bank” agencies holding billions of euros of Greek debt have still to decide whether to join a bond swap designed to cut Athens’ refinancing burden as part of an EU bail-out, the FT writes.
In Jackson Hole Wyoming on Saturday Jean-Claude Trichet, the president of the European Central Bank was due to give a speech to a meeting of policy makers hosted by the Federal Reserve. As he prepared to speak the euro zone faced huge problems.
Federal Reserve Chairman Ben Bernanke is unlikely to announce a third round of quantitative easing in his Jackson Hole speech this afternoon, Tony Fratto, the director of Hamilton Place Strategies, a public policy research firm, told CNBC.
In any murder mystery film, it pays to watch the boring gray man (or woman) in the corner; quiet, unobtrusive characters can be deadly. So, too, in finance. Four years ago, the giant US money market funds seemed some of the dullest actors in the global financial scene. But in 2007, they quietly helped to spark the crisis in the mortgage-backed securities world.
Chris Wheeler, bank analyst at Mediobanca joined CNBC to discuss the latest news on the European markets and what would happen if the Greek bailout fails.
"Greece has most definitely been cut loose by the markets, the question is whether it will now be cut loose by the politicians," Steve Barrow, head of G10 research at Standard Bank, told CNBC.
French President Nicolas Sarkozy is due to meet with Prime Minister Francois Fillon, Finance Minister Francois Baroin and Budget Minister Valerie Pecresse on Wednesday morning to decide where to slash the national budget.
On July 21, EU leaders agreed to a second bailout for Greece, one that was supposed to draw a line under the euro zone debt crisis and give the new government in Athens a chance come to grips with the huge debts it inherited when it was elected. One month later, and the situation appears to be getting worse rather than better, according to Simon Derrick, the head of currency research at Bank of New York Mellon.
The fact that Deven Shama, the president of Standard & Poor’s, has stood down from his job just a couple of days after the agency downgraded the United States' credit rating has raised questions over whether he is being made into a scapegoat to deflect political pressure on the credit ratings agency.
I expect that a lot of the attention will be paid to William J. Harrington’s analysis of how conflicts of interest at Moody’s contributed to the financial crisis—and his idea to fix the rating system.
The Republicans are calling for more spending cuts. But bond fund leaders say the better thing for the U.S. government to do is to spend now and save later. The NYT reports.