Instant view: S&P warns of possible downgrades to 15 euro zone
NEW YORK (Reuters) - Standard & Poor's on Monday warned it may downgrade the credit ratings of 15 euro zone countries as the region's debt crisis deepens.
MOGENS HAUSCHILDT, REGIONAL DIRECTOR, WESTERN UNION BUSINESS SOLUTIONS, VANCOUVER, BRITISH COLUMBIA
"I think it's turning up the pressure on the EU but I don't think it's a surprise. It's very difficult. This situation is not going to go away. But they need to stem the bleeding. The market is very quiet even after the S&P news. That's because they are set for the ECB and the EU meeting on Friday. The focus will be on the ECB Thursday to see if they'll do more toward being lender of last resort. And if Merkel and Sarkozy are going to make a new treaty, that could help, but it won't solve it all."
CARLEY GARNER, SENIOR ANALYST, DECARLEY TRADING, LAS VEGAS:
"This isn't an official credit downgrade, but it is a not so subtle warning to European nations that they must work toward getting their house in order.
Naturally, the headline didn't offer traders any new perspective or give them anything that wasn't already known, but it didn't seem to matter. All the market needed was a reminder as to why Treasuries have been perpetually high in recent months and this piece of news delivered."
CARY LEAHEY, MANAGING DIRECTOR AND SENIOR ECONOMIST, DECISION ECONOMICS, NEW YORK
"You can argue it's a lagging indicator of the consensus but it is a negative. It includes countries up to and including Germany. Germany might be a bit of a surprise because it has a sterling credit rating. But one thing Germany is worried about is whether, if they share the financial burdens of some of their financial partners, their own credit standing will suffer. In the case of Germany the loss of a AAA credit rating might not mean the loss of Merkel's career. But Sarkozy might be more vulnerable in France." Continued...