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ABB - Abb News Story

$29.7 0.5  1.8%

Last Trade - 05/03/21

Sector
Industrials
Size
Large Cap
Market Cap £43.15bn
Enterprise Value £43.69bn
Revenue £18.81bn
Position in Universe 191st / 6646

LIVE MARKETS-Downside risks for EZ credit ratings

Thu 7th January, 2021 2:39pm
* Wall Street opens higher * Europe's STOXX up 0.5% * Financials lead S&P sector gains, consumer staples leads losses * Dollar up, gold falls, oil futures edge lower * US Treasury 10-year yield ~1.07% Jan 7 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com DOWNSIDE RISKS FOR EZ CREDIT RATINGS (0938 EST/1438 GMT) Debt which has been piling up during the pandemic is a major concern for markets and if something goes wrong the first warning sign will probably come from rating agencies. So it might be useful to take a look at some predictions for this year. BofA says that 2021 would be consistent with significant credit rating downgrades it wasn’t for ECB quantitative easing and the new generation EU fund. If the ECB and the implementation of EU funds “manage to keep investor risk propensity supported (as we expect they will), we think rating agencies can justify holding an overall neutral outlook for euro zone credit sovereigns". Downgrades are more likely for semi-core, BofA says in a research note. On the side of significant downside risks agencies seem to be focusing on the contingent liabilities accumulated on banks’ loan books, it adds. As government support gradually pulls back "banks may run the risk of being under-provisioned with losses potentially spilling over to public finances in the most extreme cases.” (Stefano Rebaudo) ***** WALL STREET POINTS UP AFTER BIDEN WIN CERTIFIED, DEMOCRATS WIN CONGRESSIONAL CONTROL (0901 EST/1401 GMT) Wall Street stock index futures are gaining ground across the board on Thursday after Congress formally certified Democrat Joe Biden’s Presidential election victory hours after hundreds of President Donald Trump's supporters stormed the U.S. Capitol in a harrowing assault on American democracy. urn:newsml:reuters.com:*:nL1N2JI0JO The White House released a Trump statement pledging an "orderly transition" when Biden is sworn in on Jan. 20, although the President repeated his false claim that he won the election. urn:newsml:reuters.com:*:nL1N2JI0JO Also on Thursday data showed the number of Americans filing first-time claims for jobless benefits unexpectedly dipped last week while staying extremely high, with the labor market recovery appearing to stall as a raging COVID-19 pandemic threatens to overwhelm the country. urn:newsml:reuters.com:*:nL1N2JH2AV With Democrats also winning control of both houses of Congress investors were also betting on the introduction of heftier fiscal stimulus to counter the impact of the pandemic. .N While the S&P and Dow closed higher on Wednesday, afternoon trading was volatile after the mob of Trump supporters forced their way into Capitol Hill in what Biden and some Republicans called an insurrection during election certification proceedings. Here is your premarket snapshot: (Sinéad Carew) ***** FOR THURSDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE: urn:newsml:reuters.com:*:nL1N2JI13H <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Wall St futures point to higher open https://tmsnrt.rs/2Xm0If0 rating https://tmsnrt.rs/3orW3Ej ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters Messaging: sinead.carew.thomsonreuters.com@reuters.net))
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