• S&P cut Italy’s rating to A from A+. Concern over slowing growth in the face of a large debt load forced the move. Moody’s is set to review Italian and Spanish credits in the coming month. From Bloomberg News.
• Fears continue to rise as Greece approaches the edge of default. The Greek government is scrambling to avoid default, as today’s second meeting with the Troika unfolds. Investors are hoping for some positive news. From the New York Times.
• President Obama continued his political offensive with yesterday’s $3.6 trillion deficit reduction plan. He tied any medicare and medicaid cuts to increased taxes on the wealthy. The ability to reach consensus around this plan is highly unlikely. From the Wall Street Journal.