Torrent of bad financial news flows out of Europe

[WestVirginiaRebel]

Yahoo News:

DUBLIN (AP) — Alarming financial news flowed out of Europe in a torrent, just a week after the EU leaders struck a deal they thought would contain the continent's debt crisis.

The bombardment Friday shredded hopes of a lasting solution to the turmoil that is endangering the euro — the currency used by 17 European nations — and threatening the entire global economy.

In quick succession:

— The Fitch Ratings agency announced it was considering further cuts to the credit scores of six eurozone nations — heavyweights Italy and Spain, as well as Belgium, Cyprus, Ireland and Slovenia. It said all six could face downgrades of one or two notches.

— Moody's Investors Services downgraded Belgium's credit rating by two notches. Belgium's local- and foreign-currency government bond ratings fell to "Aa3" from Aa1," with a negative outlook. The ratings remain investment grade.

— Ireland's economy shrunk again much deeper than had been expected, with its third-quarter gross domestic product falling 1.9 percent. Ireland is one of three eurozone nations kept solvent only by an international bailout.

— Bankers and hedge funds were balking in talks about forgiving 50 percent of Greece's massive debts, a key issue in the debate over Greece's second rescue bailout.

— The red ink in Spain's regional governments surged 22 percent in the last year, endangering the central government's efforts to cut overall Spanish debt.

— France, the second-largest eurozone economy after Germany, warned that it faced at least a temporary recession next year.

— The euro hovered Friday just above $1.30, a cent higher than its 11-month low.

On the positive side, Fitch said France should keep its top AAA credit rating even though the country's debt load is projected to rise through 2014. Italian lawmakers overwhelmingly passed Premier Mario Monti's new austerity package in a confidence vote, even though many still objected to its pension reforms.
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And Sarkozy wants to know why the UK doesn't want to be a part of this.