S&P SDs Greece (Again)
At the Asia open Standard & Poor’s downgraded Greece to ‘selective default’ from CCC. The agency has clearly taken a negative view on the country’s debt buyback plans and believes ‘distressed’ conditions applied. The market will probably turn its attention to whether ISDA will make a credit event determination, but the event itself has barely had an impact on markets – perhaps another sign that the private sector has all but disentangled itself from the country. Elsewhere, the RBNZ kept its overnight cash rate on hold at 2.5%. Governor Wheeler said that the NZD’s strength was still a ‘headwind’, but did not appear to favour more easing, and also noted some pick-up in recoveryrelated activity, which is in-line with our growth forecasts for 2013. In Australia, 13.9k (cons. 0k) jobs were created in November as the unemployment rate fell to 5.2% – a firm result. EURUSD traded 1.3046-1.3077 and USDJPY 82.37-82.61.
Click here to read the full report: UBS Morning Adviser Europe
UBS Investment Bank