Moodys Downgrades France and Europe Takes a Dive on November 20th

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One day after European stocks had their biggest jump in two months, Moody's downgraded France's credit rating sending the markets into shock. These as today European Finance Ministers' meet to try to figure out and solve the problems of Greece, Spain, Portugal and Ireland.

So far this morning BNP Paribas (BNP) has been one of the biggest losers so far in the markets "Moody's ratings agency pulled the trigger on France's triple-A rating last night, It could have a trickledown effect down through the French banking system, with potential downgrades for French banks, feeding through into higher borrowing costs," said Michael Hewson a market analyst at CMC Markets Plc in London. Moody's made this move on the fact that a worsening growth outlook for France, which is Europe's second largest economy.

Today European finance ministers will sit down and try to figure out how to plug a $19 billion hole in Greece's finances, while also trying to win over the IMF. Yesterday James Mirrlees who is a Nobel economics laureate was quoted as saying, "Greece is in a mess… Fiddling around with little bits of extra bailout and allowing them to allowing them to go a bit slower won't fix the problem."

European ministers will take a look at a number of different options such as, recycling European Central Bank profits on Greek Bonds, charging Greece lower interest rates and extending repayment deadlines. Last week European governments gave Greece two more years to figure out the debt problem that has been a problem for over 3 years now. Today's meetings are scheduled to start around 5:00pm in Brussels. Remember, that we can expect no final decisions will be made today in the ongoing Greece debt problems.

In overnight trading the S&P500 was down almost .2 percent. Today, we will be waiting on a United States Commerce Department Report at 8:30am on new housing starts. We expect that this report will not be very good and that US markets with this news and the news from Europe will take a drop in early day trading.

Something else to watch out for today is that United States Fed Chairman Ben S. Bernanke will address the Economic Club of New York at 12:15 p.m. EST. It will be interesting to see what he has to say about the central bank which is scheduled to meet next on December 11th and 12th. Investor's would like to see if the Central Bank will increase bond purchases to help spur the economy along.

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