Euro Officials Say the EU Bailout Fund Has Enough Funds After Downgrade

A sculpture showing the euro currency sign is seen in front of the European Central Bank (ECB) headquarters in Frankfurt

Article By Patrick Donahue, Rainer Buergin, Josiane Kremer, John Fraher, Bloomber European officials said the euro region’s temporary bailout facility has enough funds to deal with the sovereign debt crisis after losing its top credit rating at Standard & Poor’s. “The EFSF has sufficient means to fulfil its commitments under current and potential future adjustment [...]

S&P’s Credit Downgrade Lacks Substance; Investors Demand U.S. Treasuries, Dollar Gains 8.6% Since August

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Article By Zeke Faux and John Detrixhe, Bloomberg Four months after Standard & Poor’s stripped the U.S. of its AAA credit rating and said the world’s biggest economy was no longer the safest of borrowers, dollar- denominated financial assets are doing nothing but appreciating. Government bonds have returned 4.4 percent, the dollar has gained 8.6 percent [...]

Spain, Italy Notes Surge on Demand; Bund Yield Falls to Record

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Article By Emma Charlton and Keith Jenkins, Bloomberg Spanish and Italian notes surged, leading gains in euro-area debt, on speculation banks bought the securities to use as collateral when the European Central Bank starts offering three-year loans next week. Spain’s two-year yields dropped to a four-month low after the nation sold almost double its initial maximum [...]

Euro Slumps to Two-Month Low

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Article By Catarina Saraiva and Paul Dobson, Bloomberg The euro fell to the lowest level in two months versus the dollar as Moody’s Investors Service said it will review the ratings of European Union nations after last week’s summit failed to produce decisive steps to end the debt crisis. The dollar and yen strengthened against [...]