Russell Indexes to Reclassify Greece as Emerging Market

By Nina Mehta - Mar 2, 2013 2:43 AM GMT+0200

Bloomberg

Russell Investments, which advises funds with $2.4 trillion in assets, will reclassify Greece from a developed to an emerging market, following a four-year recession in which the country’s economy shrank 20 percent.

Greece, which was raised to developed market status by the New York-based adviser in 2001, has failed one or both of Russell Indexes’ economic and operational risk assessments each year since 2011, according to a note on the company’s website. Relegation to emerging market status will force managers to buy and sell shares to align holdings with their funds’ criteria.

France Loses AAA Status as S&P Wields Ratings Ax

Bloomberg

… The first gauge of the report’s impact will come in two days when France sells as much as 8.7 billion euros…

… U.S. Treasuries rose, pushing yields to the lowest levels this year…

… Perhaps this will now concentrate the minds of EU policy makers making them realize that no country is immune to being pulled down by the euro crisis…

… Greece’s creditors yesterday suspended talks…

… The French and Austrian downgrades risk sapping the potency of the region’s current rescue program…