France is downgraded to Aa1 from Aaa at Moody's, which also maintains its negative outlook. "The...


France is downgraded to Aa1 from Aaa at Moody's, which also maintains its negative outlook. "The predictability of France's resilience to future euro area shocks is diminishing in view of the risks to economic growth."

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Comments (16)
  • User 353732
    , contributor
    Comments (5158) | Send Message
     
    France is on Italy's trajectory which is on Spain's trajectory which is following Portugal into the long descent which is following Greece which is following Argentina into the abyss.........
    With a lag these and many other nations in the West are on a grim descent that will severely diminish their middle classes and cause material standards of living for 90% of the citizens to regress by two generations
    19 Nov 2012, 05:17 PM Reply Like
  • Lares Capital
    , contributor
    Comments (438) | Send Message
     
    "a strong commitment to structural reforms and fiscal consolidation, as reflected in recent governmental announcements"

     

    Which one?

     

    1) Rolling back retirement age
    2) Raising taxes to 75%
    3) Hiring more teachers
    4) Raising a minimum wage
    19 Nov 2012, 05:24 PM Reply Like
  • Tricky
    , contributor
    Comments (2425) | Send Message
     
    France will simply make future downgrades illegal ;-)
    19 Nov 2012, 05:28 PM Reply Like
  • Tack
    , contributor
    Comments (16262) | Send Message
     
    This will likely have the same effect on bond markets that the U.S. downgrade had, precisely nothing.
    19 Nov 2012, 06:27 PM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    You make a good point.

     

    Since that downgrade is based on fundamentals and the market is hardly reacting, shows how far the markets in western economies has divested themselves from fundamentals. Dangerous times to be invested.
    20 Nov 2012, 02:23 AM Reply Like
  • Interesting Times
    , contributor
    Comments (14997) | Send Message
     
    The market rally , that usually happens on Turkey week, might be over!
    19 Nov 2012, 07:19 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    Too fast. Not even the French market is showing much of a sign in that direction. -0.1% right now.
    20 Nov 2012, 06:29 AM Reply Like
  • jean5566
    , contributor
    Comments (63) | Send Message
     
    that must be why the companies on the cac 40 are raising their gidances as well as a target of 3% on the dette 2013 the cds markets
    is not showing any of this .
    19 Nov 2012, 07:32 PM Reply Like
  • bbro
    , contributor
    Comments (11216) | Send Message
     
    2 year French Bonds .10%....10 year 2.05%...
    20 Nov 2012, 01:22 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    The French economy is strong but they do have to reform the influence of unions on companies a bit there. I am sure they will though. France is not on the trajectory of South Europe.
    20 Nov 2012, 06:31 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    I fear you are wrong.

     

    France's economy is driven by strong multinationals that have come under severe pressure due to lacking global competitiveness which has been exacerbated by constant socialistic meddling. Have a look at Citroen, Carrefour, Peugeot or EDF. Their labour costs have risen by approx. 50% over the last 10 years, their economy is driven by consumption - in particular government expenditure, which has a disproportionate share of the economy and all the while their industrial production is dwindling fast.

     

    Recipe for disaster.
    20 Nov 2012, 07:40 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    The French automobile industry is under fire for 20+ years now. I am talking about TelCom (FTE will make a come back soon), Pharmaceuticals, TOT etc. etc. France has the advantage of producing very very cheap electricity. I do agree on the labour costs with you.
    20 Nov 2012, 08:34 AM Reply Like
  • Tricky
    , contributor
    Comments (2425) | Send Message
     
    The Economist's most recent edition has a special on France. I haven't finished it yet.
    20 Nov 2012, 09:01 AM Reply Like
  • Archman Investor
    , contributor
    Comments (3316) | Send Message
     
    Meaningless.
    These ratings agencies are a joke and should be shut down.

     

    To bad they will wait until the very end of time to downgrade the most unproductive nation on the planet who out of 160 million working, 107 million of them earn $45,000 per year or less, which after taxes even with free handouts keeps them barely above poverty level with no savings, retirement and a future brainwashed by reality TV and the lowest level of culture in 100 years.
    No need to say the country.
    The ratings agencies will downgrade everyone else, even Canada, before they downgrade the hand that feeds them.
    20 Nov 2012, 07:45 AM Reply Like
  • Interesting Times
    , contributor
    Comments (14997) | Send Message
     
    Where all those bulls today???
    20 Nov 2012, 02:38 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    Here!
    20 Nov 2012, 08:39 PM Reply Like
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