Europe

Europe: Moody’s downgrades Italy’s govt bond rating to Baa2 from A3, maintains negative outlook. believes Italy is more likely to experience a further sharp increase in its funding costs r the loss mkt access due to increasingly fragile mkt confidence, contagion risk emaating from Greece and Spain and signs of an eroding non-domestic investor base. Notes Italy’s economic outlook has deteriorated, as manifest in both weaker growth and higher unemployment, which creates risk of failure to meet fiscal consolidation targets.