Moody’s Investors Service and Fitch Ratings affirmed their AAA credit ratings for the U.S. while warning that downgrades were possible if lawmakers fail to enact debt reduction measures and the economy weakens.
The outlook for the U.S. grade is now negative, Moody’s said in a statement yesterday after President Barack Obama signed into law a plan to lift the nation’s borrowing limit and cut spending following months of wrangling between Democratic leaders and Republican lawmakers.
WHAT TO WATCH: *Arcadis 2Q net misses estimates, sees 2011 profit of up to 5%. *Nippon Steel Corp. to buy ArcelorMittal (MT)’s 12 percent stake in automotive-steel venture in China *Corio raised to ‘‘buy” from “hold” at Societe Generale *Swedish Automobile’s Saab unit expects to be able to pay white- collar workers’ wages this week.
MARKETS: *The Amsterdam Exchanges Index lost 1.4 percent to 320. *The Stoxx Europe 600 Index fell 1.9 percent at 256.98. *The Euro was at $1.4190 at 8:10 a.m. in Amsterdam. *The Dutch 10-year bond yield was 2.795 percent at 8:10 a.m.
To contact the reporter on this story: Maaike Noordhuis in Amsterdam at firstname.lastname@example.org