Moody's downgrades Italy by two notches, might cut more. MILAN (Reuters) - Italian banks came to the rescue on Friday after the country suffered a ratings downgrade, but while Rome cut its three-year borrowing costs at auction, a rise in 10-year bond yields highlighted concern it may fall victim to Europe's debt crisis. Moody's cut Italy's sovereign debt rating to Baa2 on Friday, citing doubts over Italy's long-term resolve to push through much-needed reforms and saying persistent worries about Spain and Greece were increasing its liquidity risks.
Solid domestic demand helped the Italian Treasury sell the top planned amount of 5.25 billion euros in bonds, paying less than a month ago on three-year paper. "This was a challenging enough auction without the downgrade which makes the result look all the more impressive," said Spiro Sovereign Strategy Managing Director Nicholas Spiro.
"Once again, the Treasury was able to get its debt out the door, which right now is the overriding priority. " The rating agencies deny vigorously any wrongdoing. Daiwa looks to lead $380 million investment in Myanmar. No recession respite as UK services stagnate. By Jonathan Cable LONDON Fri Jun 29, 2012 6:45pm BST LONDON (Reuters) - Britain's dominant service sector stagnated in April and an extra holiday and festivities for the Queen's Diamond Jubilee failed to lift consumers' spirits, data showed on Friday, giving little hope of an escape from recession in the second quarter. The gloomy news strengthens expectations the Bank of England will restart its printing presses when it meets next week and provide further stimulus to an economy that sank back into recession around the turn of the year.
Output in the services sector -- which ranges from banks to hotels to airlines and accounting for some three quarters of output -- was flat on the month after growing 0.6 percent in March, the Office for National Statistics said, offering the first official glimpse of how the sector fared in the second quarter. Purchasing managers' surveys are a bit more upbeat than the data. (Additional reporting by Sven Egenter. Editing by Jeremy Gaunt.) Wall Street slides on Spain, Greece fears. UPDATE 1-Two towns fall to Ivory Coast's Ouattara | Agricultural Commodities. * Civil war reignited as Ouattara forces push south * Progress being made on fronts in east, west * Gbagbo forces kill 10 civilians-U.N. (Adds Nigerien U.N. peacekeeper kidnapped, edits) By Ange Aboa and Tim Cocks ABIDJAN, March 29 (Reuters) - Forces loyal to Ivory Coast presidential claimant Alassane Ouattara advanced on Tuesday to within 200 km (120 miles) of the two main port cities in an intensifying offensive against incumbent Laurent Gbagbo.
The United Nations said forces loyal to Gbagbo opened fire on civilians in the commercial capital Abidjan on Monday, killing about 10. But he later called for a "ceasefire" on Radio France International (RFI). Greece now in Great Depression, PM says. Breaking News, Business News, Financial and Investing News & More | Reuters.co.uk. Special Report: Clandestine loans were used to fortify Greek bank. Syria says could use chemical arms against foreign intervention.
Russia's Putin says the West is on the decline. Gunmen ram van into Microsoft's Greek headquarters. Europe's leaders at odds before summit. BRUSSELS (Reuters) - German Chancellor Angela Merkel will pit herself against France and Italy on Thursday at an EU summit that could shape the euro zone's future, insisting they must put the bloc's fundamental problems ahead of pleas for emergency action. European Union leaders go into the two-day meeting in Brussels more openly divided than at any time since the debt crisis erupted in Greece in 2010 and spread over the euro zone. On the eve of the EU summit, which is due to start at 2:00 p.m. British time, Merkel brushed aside demands from Italy and Spain for rapid action to lower their soaring borrowing costs, and poured cold water on proposals backed by France that euro zone countries should assume joint liability for each other's debts.
Merkel accused top EU officials of getting their priorities wrong by proposing common euro zone debt before EU controls are in place on national budgets and economic policies. She left the door ajar to eventual joint debt issuance. Exclusive: Prosecutors, regulators close to making Libor arrests. Today: Merkel snuffs out euro bond hope | Video | Reuters.com.
Spate of attacks kills 107 across Iraq.