Contributed

British banks flee France

FEARFUL UK banks have pulled tens of billions of pounds out of the struggling French economy in the face of a looming credit rating downgrade.

France is clinging to its gilt-edged status by the slenderest of threads as financial market worries grow over the exposure of its fragile banking system to Europe's sovereign rows. Many economists predict a downgrade of its prized AAA credit rating within days.

Bank of England statistics released yesterday showed Britain's banks slashing their exposure to French public debt by $AUD29.3 billion between July and September.

The exodus from France accounted for almost half the $AUD62.4 billion British banks shaved from their financial exposure to the rest of the world in the third quarter, when Europe's sovereign debt crisis entered a dangerous new phase.

UK banks also pulled a combined $AUD20 billion out of Spain and Italy and instead sought the safety of ultra-safe German bunds, piling some $AUD40.3 billion into Germany and $AUD21.1 billion into the Netherlands.

US Treasuries were also in demand despite ratings agency Standard & Poor's stripping the US of its triple-A rating for the first time in August. 



Bruxner crash: traffic affected after cars collide

Bruxner crash: traffic affected after cars collide

Emergency services have been called to a crash on the Bruxner Hwy

Shock, sadness after passing of popular CBD manager

Shock, sadness after passing of popular CBD manager

Tributes to "amazing, passionate” community man Jason Mumford

Police not to blame for motorcyclist's 'tragic death'

premium_icon Police not to blame for motorcyclist's 'tragic death'

He died after hitting a cow during a police operation near Coraki

Local Partners