S&P CUTS GREEK RATING AGAIN ON DEFAULT FEARS - Greece now has the worst rating of any sovereign in the world after a downgrade yesterday from ratings agency Standard and Poor's. Its debt was downgraded by three more notches, a sign that the agency thinks it will be forced to downgrade Athens to default - or D - as private creditors are likely to be involved in the country's next bail-out. S&P said that in its view Greece is increasingly likely to restructure its debt in a manner that would result in one or more defaults.
Stephen Fidler, Brussels Bureau Chief at The Wall Street Journal, says that the latest downgrade puts Greece below the standings of Argentina and Ecuador and other serial defaulters. He says it effectively means that Greece will have to default on its debts over the coming months. He says it is now inevitable that Greece will need a second bail-out. He says that even if the current round of talks do not result in default, the country is facing it at some stage in the not too distant future. Mr Fidler says that while default means different things to various players in the financial markets, he says the ECB does not want any sort of Greek default - technical or otherwise.
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DUBLIN CONFERENCE LOOKS AT WAYS SMALL BUSINESSES CAN HELP THEMSELVES - A Dublin conference today is looking at how small firms can get the most out of their business at the moment. KPMG's Ken Hardy is speaking at the 'Food for Thought - Smart Ideas for your Business' conference in the city centre. He says there are several simple things that Irish small firms can do to improve their situation. He says they can look at new products and product development, while they can also introduce new processes. He says they can look for Government support, which he describes as quite generous. These supports include research and development tax credits and the Enterprise Ireland grants.
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MORNING BRIEFS - Reuters reports this morning that the anticipated sale of a $10.3 billion portfolio of US commercial real estate loans held by Anglo Irish Bank is attracting some of the biggest US and foreign investors. Among those looking at the portfolio are private equity firms Blackstone Group and TPG Capital, as well as Deutsche Bank real estate asset management unit. It says others that could team up include Starwood Capital Group. The sale is likely to be among the biggest US commercial real estate loan sales this year. .
*** The IMF has shortlisted two candidates to take over as its managing director. French Finance Minister Christine Lagarde and Governor of the Bank of Mexico Agustin Carstens will fight it out for the top job. The IMF said it expects to complete the selection process by 30 June.
*** Telecommunications firm Aruba Networks is setting up its international headquarters and shared services centre for all regions outside of the US in Cork, creating 40 jobs over the next four years.
*** On the currency markets this morning the euro is trading at $1.4430 cents and 87.9 pence sterling.
