What a difference a rumour makes


LONDON | The Ibex35, FTSE100, FTSE MIB, CAC40 and DAX indexes were dealt a synchronised blow when government officials and market participants on Friday afternoon leaked risk agency Standard & Poor’s’ wide downgrade actions over the public finances of a number of European Monetary Union member countries.

Particularly worrying were references of France and Austria loosing their triple A rate, thus leaving Germany as the only nation with top marks to sustain the European Financial Stability Facility‘s standing on the capital markets. The fund, which is meant to play an important role in the recovery plans for the common currency, would see its borrowing power diminished and this would put in danger ongoing and future bailouts of the euro zone.

Later in the evening, the gossip became crude reality.

If you don’t suffer from friggatriskaidekaphobia, today may still change that.

About the Author

Victor Jimenez
London contributor at thecorner.eu, reporting about the City and the Eurozone economies. He regularly writes for Spanish newspaper group Prensa Ibérica--some of his features include shared work with journalists of The Daily Telegraph and the BBC.

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