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 [...]

As if Europe did not have enough problems, French president Sarkozy intends to raise the level of animosity with his insistence on introduction of the so-called Tobin tax. Its objective is to tax financial transaction within EU. Needless to say, not everybody is thrilled with this prospect and while France claims to have support of [...]