PIMCO predicts UK bonds downgrade in 2010

Not that it took a genius, but PIMCO's Scott Mather predicts United Kingdom gilts (sovereign debt) will be downgraded in 2010. This will inevitably raise the cost of borrowing 100 basis points (1%) for England, further exacerbating their huge debt problems.

http://www.zerohedge.com/article/pimco-sees-uk-rating-downgrade-probability-80-gilts-higher-100-bps

With downgrades in Iceland, Ecuador, Hungary, Dubai, Greece, Spain and Ireland, it's likely the UK will be joining that unpleasant party. In fact, many countries in Europe will share that fate, including EU member countries, putting pressure on the Euro.