Panic in Paris:
The president of the French National Bank, Christian Noyer, demanded that the UK should be downgraded ahead of France. It's peculiar that a Banque de France executive gives advice to rating agencies.
S&P and Moody's reaffirmed today that the UK's Triple A rating is not under review; however, the eurozone members, the EMS and the EFSF are all under review with a downgrade possible as soon as January 15th.
In the meantime, the IMF has advised Eurozone leaders in a meeting behind closed doors last week to revamp the eurozone and to consider the reduction of the eurozone by 4 or 5 members.
Two weeks ago the IMF discussed a possible break-up of the eurozone with German chancellor Merkel, causing Merkel to adopt a hard line against issuing "eurobonds" - ostensibly in expectation that the eurozone cannot be rescued, and that providing German guarantees for such bonds would be too costly in the probable case of default. Merkel then contacted Sarkozy (December 3rd), causing the Frenchman to quickly abandon his previously vehemently advocating of eurobonds.
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