The Italian Jobbie

05/10/11 -- As the risk of European contagion (a posh word for dominoes) grows, Italy have had their credit rating downgraded three notches by Moody's I see. Other EU countries are likely to see similar reductions, they warn.

The downgrade will make it even harder for Italy to borrow money than it already is, and it seems pretty clear that even the EU/ECB haven't got deep enough pockets to bail them out if they're struggling to finance relative economic minnows like Greece.

The markets seem strangely unmoved by the news with the FTSE100 rising back up above the 5,000 mark.