Key TakeawaysMorgan Stanley has revised its outlook, now no longer expecting the U.S. Federal Reserve to cut interest rates in December following recent jobs data.The average U.S. 30-year fixed-rate mortgage climbed to 6.26% for the week ending November 20, up from 6.24% the prior week, according to Freddie Mac.U.S. stock markets turned negative, with the S&P 500 (^GSPC) down 0.3%, the Nasdaq (^IXIC) down 0.5%, and the Dow (^DJI) down 0.2%.Nvidia (NVDA) shares also turned negative, experiencing a 1% decline ...

Core Viewpoint - Moody's has placed France's credit rating on watch for a potential downgrade due to political instability and economic challenges, following similar actions by other rating agencies [3][4][5]. Group 1: Credit Rating Changes - Moody's changed its outlook on French government bonds from Stable to Negative, currently rating them Aa3, equivalent to AA- [3]. - S&P downgraded French bonds to A+ from AA- on October 17, 2025, marking a significant shift in the perception of France's creditworthiness [3][4]. - Fitch Ratings had previously downgraded France to A+ from AA- in September, citing government fragmentation and political deadlock [4]. Group 2: Economic Challenges - The political instability in France is seen as a barrier to addressing key policy challenges, including a high fiscal deficit, rising debt burden, and increasing borrowing costs [5]. - France's attempts to reform its pension system and reduce its deficit below 5% of GDP have been unsuccessful, leading to a lack of agreement on the budget [6]. - The resignation of Prime Minister Sébastien Lecornu after just one month in office highlights the ongoing governance issues [6]. Group 3: Market Reactions - The yield on France's 10-year bonds has increased from 3.186% at the end of 2024 to 3.436%, surpassing yields of Greece, Italy, Portugal, and Spain [7]. - Despite the political chaos, French stocks have shown resilience, with the iShares MSCI France ETF gaining 26%, outperforming the S&P 500's 15% rise [8].

Interest Rate Impact - A quarter of a percent rate cut will lower borrowing costs, especially on variable rates like credit cards and auto loans, but will also lower saving rates [1] Budgeting and Expense Management - Individuals should create a budget to track monthly income and expenses to identify areas for potential cuts [2] - Selling unused items around the house can generate extra cash [2] - Limiting credit card use and using cash or debit cards can help reduce impulse buys [2] Credit Card Debt Reduction - Extra cash should be directed towards paying down debt [3] - Consumers should ask their credit card companies for lower rates [4] - Setting up autopayments for more than the minimum balance can gradually reduce debt [5] - Utilizing 0% interest credit cards for balance transfers can help focus on debt repayment, but a 3% to 5% fee may apply [5] - A $6,000 balance transfer with 0% interest over 15 months requires monthly payments of $400 to pay it off [7] Mortgage Management - Bi-weekly mortgage payments or rounding up payments can help reduce the principal [8] - Refinancing at a lower rate can be beneficial, but may be difficult for some [8] - Shortening the loan term can maximize the mortgage [9] - Consider potential prepayment penalties before paying off the mortgage early [9] Loan Management - If struggling with car loan payments, consider selling or trading in the car for a cheaper one [11] - In cases of financial hardship, request a loan modification from lenders [11] - For federal student loans, explore income-driven repayment plans via studentaid.gov [11][12] - Refinance private student loans, but avoid refinancing federal loans into private loans due to loss of federal protections [12]

Monetary Policy - Bank of England rate-setter Catherine Mann suggests maintaining current borrowing costs for an extended period [1] - The goal is to prevent high UK inflation from persisting [1]

Market Trends - Long-dated government bond yields in major markets, particularly the UK, have been steadily increasing in recent months [1] Potential Risks - Rising borrowing costs and their potential impact on global equity markets are a concern [1]

Inflation - Chile's annual inflation unexpectedly accelerated for the first time since March [1] Monetary Policy - The central bank signaled it will gradually lower its borrowing costs over coming quarters [1]

Federal Reserve Chair Jerome Powell said the central bank would have likely already moved to lower borrowing costs if it weren't for worries that tariffs would drive up inflation. https://t.co/OnyWmSUO7v ...