- Gaza ministry accuses Israel of storming hospital, reports two children killed
- King Charles III departs Samoa, wrapping Pacific tour
- G7 finalize $50 bn Ukraine loan backed by Russian assets profits
- Ex-Abercrombie CEO pleads not guilty to sex crimes
- Unfulfilled talent? Two-time champion Alonso clocks up 400th F1 race
- Guardiola praises 'incredible' mentality of Man City stars
- Chelsea boss Maresca wants more 'leadership' from captain James
- US issues historic apology for Native American boarding school atrocities
- Moody's cuts France outlook, opening door to credit downgrade
- Drone sparks fire on Kyiv residential building, one dead
- Gaza ministry says two children die in hospital in Israeli raid
- Wood brace fires Forest as Leicester boss Cooper loses reunion
- Dodgers draw on Bryant's 'Mamba mentality' for World Series
- 'Fascist' row overshadows glitzy night on US campaign trail
- Modern art museum breathes new life into downtown Warsaw
- Russell tops crash-hit Mexico GP practice
- Fils, Shelton set for friendly fire in Basel semi-finals
- Internet blackout hits Mozambique capital after election protests
- Yankees, Dodgers poised for World Series blockbuster
- 'Catfish' predator who drove US girl to suicide jailed for life in N.Ireland
- NASA astronaut hospitalized after return from ISS
- Biden apologizes for Native American boarding school atrocities
- Mexico rules out designating drug violence as 'terrorism'
- Emery wants no let-up from Aston Villa
- Boeing exploring sale of space business: report
- G20 affirms commitment to transition from fossil fuels
- Shami misses India's tour of Australia as Easwaran named as potential Rohit cover
- BHP, Vale agree to pay $30bn damages for Brazil dam disaster
- 75 sickened as McDonald's severe E. Coli outbreak expands
- Turkmenistan's 'Gateway to Hell' lit gas pit faces closure
- Kickboxing takes Senegal by storm despite tight funds
- Waymo ramps up robotaxi push with $5.6 bn in funding
- Elon Musk all-in for Trump as Moscow denies secret Putin talks
- Covid lessons learned? UN summit mulls plan for healthy planet, and humans
- Borthwick unveils new contracts for leading England players
- Sexual assault scandal rocks Spain's 'most feminist' govt
- France must make 'credible' progress on deficit: finance minister
- Stock markets diverge going into weekend
- BHP, Vale agree to pay $30bn compensation for Brazil dam disaster
- Verstappen says 'definitely' his intention to remain at Red Bull
- Mbappe can launch Madrid career in first Clasico
- A monumental dump and Obama the rapper: an offbeat US campaign week
- Biden to apologize for abusive Native American boarding schools
- Pressure is part of manager's life, says troubled West Ham boss Lopetegui
- Gaza ministry says Israel forces detaining hundreds at hospital
- Hirscher confirms return from retirement at World Cup opener
- IMF raises concerns about effects of Sudan conflict on neighbors
- Seoul slams Russian treaty with N. Korea, Zelensky urges 'tangible pressure'
- De Zerbi hails Greenwood as Marseille await Paris Saint-Germain
- Under-fire Ten Hag blames injuries for derailing Man Utd
Moody's cuts France outlook, opening door to credit downgrade
Ratings agency Moody's downgraded France's outlook Friday, opening the door to a potential credit rating cut as it cited concerns over the country's finances.
The shift reflects "increasing risk that France's government will be unlikely to implement measures that would prevent sustained wider-than-expected budget deficits and a deterioration in debt affordability," said Moody's.
It changed France's outlook from "stable" to "negative."
In the same statement, the agency affirmed France's credit rating at Aa2, saying this was supported by its "large, wealthy and diversified economy."
In lowering the outlook, Moody's said the fiscal deterioration it has seen is "beyond our expectations and stands in contrast with governments in similarly rated countries that are tending to consolidate their public finances."
France's new finance minister Antoine Armand noted the decision Friday but maintained that the country is able to carry out "far-reaching reforms."
He added that the country has economic strength and vowed to restore its finances.
Armand told AFP on Thursday the country must take "credible" steps to tackle its high deficit.
- Risks to profile -
For now, Moody's said risks to France's credit profile are heightened by its political and institutional environment.
It noted the situation is "not conducive to coalescing on policy measures that will deliver sustained improvements in the budget balance."
"As a result, budget management is weaker than we had previously assessed," it added.
New French Prime Minister Michel Barnier is hoping to bring public sector deficit to below five percent of gross domestic product next year, from an expected 6.1 percent in 2024.
But his deficit-slashing budget was presented to a hostile parliament.
France's annual budget debate has often triggered no-confidence motions and Barnier's plan sparked vocal opposition even before its full details were known.
France's debt is expected to rise to close to 115 percent of GDP next year, compared to an EU debt target of 60 percent.
In absolute terms, France's debt stood at over 3.2 trillion euros, having risen by about one trillion since President Emmanuel Macron took power in 2017.
Earlier this month, Fitch Ratings also affirmed France's rating at AA- but revised its outlook from "stable" to "negative," pointing to heightened fiscal policy risks.
On Thursday, Armand said "the work we'll be doing over the coming months will be to monitor and fine-tune our public spending" to make savings.
H.Seidel--BTB