Moody’s cuts EU outlook to ‘negative’
3 September,2012
Moody’s ratings agency has downgraded its outlook on the Aaa rating of the European Union from ‘stable’ to ‘negative,’ linking the decision to a recent outlook downgrade of the bloc’s major economies.
"The negative outlook on the EU's long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 per cent of the EU's budget revenue,"
Moody’s said in a statement on Monday.
The agency also cut its outlook on the provisional (P)Aaa rating of the EU's medium-term note (MTN) program from ‘stable’ to ‘negative.’
The outlook downgrade comes after the agency changed to negative its outlook for Germany and Holland's Aaa ratings on July 23. Moody’s explained that it was reasonable to assume that the EU's creditworthiness should move in line with the creditworthiness of its strongest key member states. The outlook on France and the UK are also negative.
Moody’s warned that it may downgrade the European Union's rating if it decides to cut the ratings of Germany, France, the UK and the Netherlands.
The agency also added that the outlook for the EU could go back to 'stable' if the outlooks on the four major European economies are first.
Moody’s ratings agency has downgraded its outlook on the Aaa rating of the European Union from ‘stable’ to ‘negative,’ linking the decision to a recent outlook downgrade of the bloc’s major economies.
"The negative outlook on the EU's long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 per cent of the EU's budget revenue,"
Moody’s said in a statement on Monday.
The agency also cut its outlook on the provisional (P)Aaa rating of the EU's medium-term note (MTN) program from ‘stable’ to ‘negative.’
The outlook downgrade comes after the agency changed to negative its outlook for Germany and Holland's Aaa ratings on July 23. Moody’s explained that it was reasonable to assume that the EU's creditworthiness should move in line with the creditworthiness of its strongest key member states. The outlook on France and the UK are also negative.
Moody’s warned that it may downgrade the European Union's rating if it decides to cut the ratings of Germany, France, the UK and the Netherlands.
The agency also added that the outlook for the EU could go back to 'stable' if the outlooks on the four major European economies are first.
Moody’s ratings agency has downgraded its outlook on the Aaa rating of the European Union from ‘stable’ to ‘negative,’ linking the decision to a recent outlook downgrade of the bloc’s major economies.
"The negative outlook on the EU's long-term ratings reflects the negative outlook on the Aaa ratings of the member states with large contributions to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45 per cent of the EU's budget revenue," Moody’s said in a statement on Monday.
The agency also cut its outlook on the provisional (P)Aaa rating of the EU's medium-term note (MTN) program from ‘stable’ to ‘negative.’
The outlook downgrade comes after the agency changed to negative its outlook for Germany and Holland's Aaa ratings on July 23. Moody’s explained that it was reasonable to assume that the EU's creditworthiness should move in line with the creditworthiness of its strongest key member states. The outlook on France and the UK are also negative.
Moody’s warned that it may downgrade the European Union's rating if it decides to cut the ratings of Germany, France, the UK and the Netherlands.
The agency also added that the outlook for the EU could go back to 'stable' if the outlooks on the four major European economies are first.
US rattles saber against Iran in attempt to stall Israeli strike
3 September, 2012
The US announced it will take further indirect action against Iran in an effort to delay a possible Israeli strike against the country. Washington’s plans to halt Iran’s embattled nuclear program include military exercises in the Persian Gulf.
In addition to increasing US naval activity in the region, Washington is also preparing to intensify economic sanctions against Iran’s oil industry, the New York Times reported.
The US – along with 25 other countries – will conduct extensive joint minesweeping exercises in the Persian Gulf in October. The move aims to increase pressure on Iran and prevent it from closing the Strait of Hormuz. Iran has also scheduled war games for this autumn, which are intended to dissuade the international community against an attack.
Washington is currently treading a fine line in the Israel-Iran dispute amid increasingly hawkish rhetoric from the Israeli government, which is pressing for an immediate strike on Iran’s nuclear facilities.
The Obama administration has urged Israel to refrain from military action and allow more time for diplomatic initiative. On Sunday, Israeli PM Benjamin Netanhayu called on world leaders to draw a “clear red line” for action against Iranian nuclear activities.
Israel has criticized Washington for its perceived unwillingness to back an Israeli strike against Iran’s nuclear program.
A UN report released on Thursday said that although Iran had more than doubled the number of centrifuges in its fortified underground facility at Fordo since May, the new machines are still not operational. Israel and the US accuse Iran of enriching uranium for in order to build atomic weapons. Iran denies the claims, maintaining that its nuclear activities are purely for civilian purposes.
The Israeli PM cited the new centrifuges as overwhelming evidence that the sanctions implemented by the US and other western countries had been ineffective.
"The report confirms what I have been saying for a long time, international sanctions are a burden on Iran's economy but they are not in any way delaying the advancement of Iran's nuclear program," Netanyahu said.
The Obama administration has faced increasing criticism from Republican presidential candidate Mitt Romney for being "soft’"on Iran.
Romney previously stated that he would never allow Iran the capability to produce weapons-grade uranium. He also slammed Obama’s diplomatic stance on Iran, accusing him of endangering the US and alienating Israel.
The Obama administration is also weighing the use of covert espionage and direct military action, the New York Times reported.
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