25-JUL-08Europe Overall Negative Ratings Gap Widens on Deteriorating Credit Quality in Q2 The deterioration in Western European credit quality is likely to continue. The weak outlook for credit quality is not a surprise given that the euro zone economy is showing signs of strain, which will deepen in the second half of the year.
The noxious mix of an oil price shock and credit crunch now slows the world economy ... Recent news from Asia hints of an impending deceleration of US exports that all but assures a quarterly contraction of US real GDP ... Oil is one of the worst "safe havens" imaginable from the perspective of macroeconomic performance.