On Friday, Standard and Poor’s downgraded nine European countries, including France and Austria. Both of these countries are large guarantors of the European Financial Stability Facility, otherwise known as the bailout fund. Combined, France and Austria are responsible for Euro 180 billion of credits supporting the fund. For the EFSF to retain its AAA rating, [...]

The major market mover on Friday turned out to be not the dismal US Trade Balance, which again showed growing deficit, but a wholesale downgrade of European countries by Standard & Poor’s. After months of threats, the rating agency finally delivered the goods, ending France’s and Austria’s triple-A status Friday. It lowered Italy’s and Spain’s [...]

Media was buzzing on Monday with news of Philipp Hildebrand quitting as the chairman of the Swiss National Bank over his wife’s currency trades. In response, market participants started to buy the Franc, as if Mr. Hildebrand’s departure somehow would change bank’s view on Swiss currency. The EUR-CHF, original target of earlier interventions, fell to [...]